Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to ICC's Treasury Operations Policies and Procedures, 64379-64381 [2019-25206]
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Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
under Section 19(b)(2)(B) 10 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NYSEAMER–2019–49 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to: Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NYSEAMER–2019–49. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
10 15
U.S.C. 78s(b)(2)(B).
VerDate Sep<11>2014
16:41 Nov 20, 2019
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEAMER–2019–49 and should be
submitted on or before December 12,
2019.
and (C) below, of the most significant
aspects of these statements.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Jill M. Peterson,
Assistant Secretary.
ICC proposes to revise its Treasury
Policy. Specifically, ICC proposes
clarification updates related to its use of
a committed repurchase (‘‘repo’’)
facility, acceptable forms of United
States (‘‘US’’) Treasury collateral, and
its collateral valuation process. ICC
believes that such revisions will
facilitate the prompt and accurate
clearance and settlement of securities
transactions and derivative agreements,
contracts, and transactions for which it
is responsible. ICC proposes to make
such changes effective following
Commission approval of the proposed
rule change. The proposed revisions are
described in detail as follows.
ICC proposes amendments to the
‘Funds Management’ section with
respect to its use of a committed repo
facility. Namely, ICC proposes to clarify
that the committed repo facility can be
used to generate temporary liquidity
through the sale and agreement to
repurchase securities pledged by ICC
Clearing Participants (‘‘CPs’’) to satisfy
their Initial Margin (‘‘IM’’) and Guaranty
Fund (‘‘GF’’) requirements. ICC
proposes to include that, when
applicable, the facility can be used to
rehypothecate sovereign debt from
overnight repo investments in the event
of a counterparty default. ICC also
proposes to note that the facility can be
used to sell, with the agreement to
repurchase, sovereign debt securities
that are held by ICC pursuant to direct
investments in such securities.
ICC proposes to update the ‘Custodial
Assets’ section regarding acceptable
forms of US Treasury collateral and
ICC’s collateral valuation process.
Under the Treasury Policy, acceptable
forms of non-cash collateral for IM and
GF are limited to US Treasury
securities. ICC proposes to specify that
Floating Rate Notes and STRIPS are not
acceptable forms of US Treasury
collateral for IM and GF. ICC also
proposes to add language stating that,
with respect to its collateral valuation
process, Euros that are used to cover a
US Dollar denominated product
requirement will be subject to a haircut.
[FR Doc. 2019–25210 Filed 11–20–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87549; File No. SR–ICC–
2019–012]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change Relating to
ICC’s Treasury Operations Policies
and Procedures
November 15, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934, 15
U.S.C. 78s(b)(1) and Rule 19b–4, 17 CFR
240.19b–4, notice is hereby given that
on November 1, 2019, ICE Clear Credit
LLC (‘‘ICC’’) filed with the Securities
and Exchange Commission the proposed
rule change as described in Items I, II,
and III below, which Items have been
prepared primarily by ICC. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The principal purpose of the
proposed rule change is to revise the
ICC Treasury Operations Policies and
Procedures (‘‘Treasury Policy’’). These
revisions do not require any changes to
the ICC Clearing Rules (the ‘‘Rules’’).
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICC
included statements concerning the
purpose of and basis for the proposed
rule change, security-based swap
submission, or advance notice and
discussed any comments it received on
the proposed rule change, securitybased swap submission, or advance
notice. The text of these statements may
be examined at the places specified in
Item IV below. ICC has prepared
summaries, set forth in sections (A), (B),
11 17
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64379
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Frm 00119
Fmt 4703
Sfmt 4703
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act 1
requires, among other things, that the
rules of a clearing agency be designed to
1 15
U.S.C. 78q–1(b)(3)(F).
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64380
Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices
promote the prompt and accurate
clearance and settlement of securities
transactions, and to the extent
applicable, derivative agreements,
contracts and transactions; to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible; and to comply with the
provisions of the Act and the rules and
regulations thereunder. ICC believes
that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICC, in
particular, to Section 17(A)(b)(3)(F),2
because ICC believes that the proposed
rule change will promote the prompt
and accurate clearance and settlement of
securities transactions, derivatives
agreements, contracts, and transactions,
and contribute to the safeguarding of
securities and funds associated with
security-based swap transactions in
ICC’s custody or control, or for which
ICC is responsible. The proposed
changes allow ICC to provide additional
clarity regarding its use of the
committed repo facility, acceptable
forms of US Treasury collateral, and its
collateral valuation process. The
proposed updates ensure that the
documentation of ICC’s Treasury Policy
remains up-to-date, transparent, and
focused on clearly articulating the
policies and procedures used to support
ICC’s treasury functions, which
promotes the prompt and accurate
clearance and settlement of securities
transactions, derivatives agreements,
contracts, and transactions and
contributes to the safeguarding of
securities and funds which are in the
custody or control of ICC or for which
it is responsible. As such, the proposed
rule change is designed to promote the
prompt and accurate clearance and
settlement of securities transactions,
derivatives agreements, contracts, and
transactions and to contribute to the
safeguarding of securities and funds
associated with security-based swap
transactions in ICC’s custody or control,
or for which ICC is responsible within
the meaning of Section 17A(b)(3)(F) of
the Act.3
In addition, the proposed rule change
is consistent with the relevant
requirements of Rule 17Ad–22.4 Rule
17Ad–22(b)(3) 5 requires ICC to
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to maintain
sufficient financial resources to
2 Id.
withstand, at a minimum, a default by
the two CP families to which it has the
largest exposures in extreme but
plausible market conditions. ICC
believes that the proposed changes
enhance its ability to manage its
financial resources, including by more
clearly articulating details related to the
use of the committed repo facility,
acceptable forms of US Treasury
collateral, and the collateral valuation
process. Specifically, the additional
details relating to ICC’s use of a
committed repo facility clarify, among
other things, that when applicable, the
facility can be used to rehypothecate
sovereign debt from overnight repo
investments in the event of a
counterparty default. The proposed
changes also identify Floating Rate
Notes and STRIPS as unacceptable
forms of US Treasury collateral for IM
and GF and, with respect to the
collateral valuation process, specify that
Euros that are used to cover a US Dollar
denominated product requirement will
be subject to a haircut. Such proposed
changes strengthen the documentation
of ICC’s treasury operations, which
supports ICC’s ability to maintain
sufficient financial resources to
withstand, at a minimum, a default by
the two CP families to which it has the
largest exposures in extreme but
plausible market conditions, consistent
with the requirements of Rule 17Ad–
22(b)(3).6
Rule 17Ad–22(d)(3) 7 requires ICC to
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to hold assets in a
manner that minimizes risk of loss or of
delay in its access to them and to invest
assets in instruments with minimal
credit, market, and liquidity risks. The
proposed changes strengthen ICC’s
ability to safeguard assets and limit the
potential for loss or delay in access to
such assets by ensuring that ICC has
clear and comprehensive procedures for
the use of the committed repo facility,
transparent and well-documented
policies regarding acceptable types of
US Treasury collateral, and clear and
effective procedures for collateral
valuation. Moreover, ICC believes that
having policies and procedures that
clearly and accurately document ICC’s
treasury functions are an important
component to the effectiveness of ICC’s
treasury operations, which promote
ICC’s ability to hold assets in a manner
that minimizes risk of loss or of delay
in its access to them and to invest assets
in instruments with minimal credit,
market, and liquidity risks. Such
3 Id.
4 17
5 17
CFR 240.17Ad–22.
CFR 240.17Ad–22(b)(3).
VerDate Sep<11>2014
16:41 Nov 20, 2019
changes are therefore reasonably
designed to meet the requirements of
Rule 17Ad–22(d)(3).8
(B) Clearing Agency’s Statement on
Burden on Competition
ICC does not believe the proposed
rule change would have any impact, or
impose any burden, on competition.
The proposed changes to ICC’s Treasury
Policy will apply uniformly across all
market participants. Therefore, ICC does
not believe the proposed rule change
imposes any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2019–012 on the subject line.
Paper Comments
Send paper comments in triplicate to
Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
6 Id.
7 17
Jkt 250001
PO 00000
CFR 240.17Ad–22(d)(3).
Frm 00120
Fmt 4703
Sfmt 4703
8 Id.
E:\FR\FM\21NON1.SGM
21NON1
Federal Register / Vol. 84, No. 225 / Thursday, November 21, 2019 / Notices
All submissions should refer to File
Number SR–ICC–2019–012. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/regulation.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICC–2019–012 and
should be submitted on or before
December 12, 2019.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019–25206 Filed 11–20–19; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87552; File No. SR–NYSE–
2019–59]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List To Revise the Step Up Tier
2 Adding Credit in Tape A Securities
November 15, 2019.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 1, 2019, New York Stock
Exchange LLC (‘‘NYSE’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission (the
‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
Price List to revise the Step Up Tier 2
Adding Credit in Tape A securities. The
Exchange proposes to implement the fee
changes effective November 1, 2019.
The proposed rule change is available
on the Exchange’s website at
www.nyse.com, at the principal office of
the Exchange, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
9 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:41 Nov 20, 2019
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PO 00000
Frm 00121
Fmt 4703
Sfmt 4703
64381
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
Price List to revise the Step Up Tier 2
Adding Credit in Tape A securities.
The proposed changes respond to the
current competitive environment where
order flow providers have a choice of
where to direct liquidity-providing
orders by offering further incentives for
member organizations to send
additional displayed liquidity to the
Exchange.
The Exchange proposes to implement
the fee changes effective November 1,
2019.
Competitive Environment
The Commission has repeatedly
expressed its preference for competition
over regulatory intervention in
determining prices, products, and
services in the securities markets. In
Regulation NMS, the Commission
highlighted the importance of market
forces in determining prices and SRO
revenues and, also, recognized that
current regulation of the market system
‘‘has been remarkably successful in
promoting market competition in its
broader forms that are most important to
investors and listed companies.’’ 4
As the Commission itself recognized,
the market for trading services in NMS
stocks has become ‘‘more fragmented
and competitive.’’ 5 Indeed, equity
trading is currently dispersed across 13
exchanges,6 31 alternative trading
systems,7 and numerous broker-dealer
internalizers and wholesalers, all
competing for order flow. Based on
publicly-available information, no
single exchange has more than 19%
market share (whether including or
excluding auction volume).8 Therefore,
no exchange possesses significant
pricing power in the execution of equity
4 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37495, 37499 (June 29, 2005)
(S7–10–04) (Final Rule) (‘‘Regulation NMS’’).
5 See Securities Exchange Act Release No. 51808,
84 FR 5202, 5253 (February 20, 2019) (File No. S7–
05–18) (Transaction Fee Pilot for NMS Stocks Final
Rule) (‘‘Transaction Fee Pilot’’).
6 See Cboe Global Markets, U.S. Equities Market
Volume Summary, available at https://
markets.cboe.com/us/equities/market_share/. See
generally https://www.sec.gov/fast-answers/
divisionsmarketregmrexchangesshtml.html.
7 See FINRA ATS Transparency Data, available at
https://otctransparency.finra.org/otctransparency/
AtsIssueData. A list of alternative trading systems
registered with the Commission is available at
https://www.sec.gov/foia/docs/atslist.htm.
8 See Cboe Global Markets U.S. Equities Market
Volume Summary, available at https://
markets.cboe.com/us/equities/market_share/.
E:\FR\FM\21NON1.SGM
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]]>Agencies
[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Notices]
[Pages 64379-64381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25206]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87549; File No. SR-ICC-2019-012]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change Relating to ICC's Treasury Operations
Policies and Procedures
November 15, 2019.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, 15 U.S.C. 78s(b)(1) and Rule 19b-4, 17 CFR 240.19b-4, notice is
hereby given that on November 1, 2019, ICE Clear Credit LLC (``ICC'')
filed with the Securities and Exchange Commission the proposed rule
change as described in Items I, II, and III below, which Items have
been prepared primarily by ICC. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed rule change is to revise the
ICC Treasury Operations Policies and Procedures (``Treasury Policy'').
These revisions do not require any changes to the ICC Clearing Rules
(the ``Rules'').
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change,
security-based swap submission, or advance notice and discussed any
comments it received on the proposed rule change, security-based swap
submission, or advance notice. The text of these statements may be
examined at the places specified in Item IV below. ICC has prepared
summaries, set forth in sections (A), (B), and (C) below, of the most
significant aspects of these statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
ICC proposes to revise its Treasury Policy. Specifically, ICC
proposes clarification updates related to its use of a committed
repurchase (``repo'') facility, acceptable forms of United States
(``US'') Treasury collateral, and its collateral valuation process. ICC
believes that such revisions will facilitate the prompt and accurate
clearance and settlement of securities transactions and derivative
agreements, contracts, and transactions for which it is responsible.
ICC proposes to make such changes effective following Commission
approval of the proposed rule change. The proposed revisions are
described in detail as follows.
ICC proposes amendments to the `Funds Management' section with
respect to its use of a committed repo facility. Namely, ICC proposes
to clarify that the committed repo facility can be used to generate
temporary liquidity through the sale and agreement to repurchase
securities pledged by ICC Clearing Participants (``CPs'') to satisfy
their Initial Margin (``IM'') and Guaranty Fund (``GF'') requirements.
ICC proposes to include that, when applicable, the facility can be used
to rehypothecate sovereign debt from overnight repo investments in the
event of a counterparty default. ICC also proposes to note that the
facility can be used to sell, with the agreement to repurchase,
sovereign debt securities that are held by ICC pursuant to direct
investments in such securities.
ICC proposes to update the `Custodial Assets' section regarding
acceptable forms of US Treasury collateral and ICC's collateral
valuation process. Under the Treasury Policy, acceptable forms of non-
cash collateral for IM and GF are limited to US Treasury securities.
ICC proposes to specify that Floating Rate Notes and STRIPS are not
acceptable forms of US Treasury collateral for IM and GF. ICC also
proposes to add language stating that, with respect to its collateral
valuation process, Euros that are used to cover a US Dollar denominated
product requirement will be subject to a haircut.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act \1\ requires, among other things,
that the rules of a clearing agency be designed to
[[Page 64380]]
promote the prompt and accurate clearance and settlement of securities
transactions, and to the extent applicable, derivative agreements,
contracts and transactions; to assure the safeguarding of securities
and funds which are in the custody or control of the clearing agency or
for which it is responsible; and to comply with the provisions of the
Act and the rules and regulations thereunder. ICC believes that the
proposed rule change is consistent with the requirements of the Act and
the rules and regulations thereunder applicable to ICC, in particular,
to Section 17(A)(b)(3)(F),\2\ because ICC believes that the proposed
rule change will promote the prompt and accurate clearance and
settlement of securities transactions, derivatives agreements,
contracts, and transactions, and contribute to the safeguarding of
securities and funds associated with security-based swap transactions
in ICC's custody or control, or for which ICC is responsible. The
proposed changes allow ICC to provide additional clarity regarding its
use of the committed repo facility, acceptable forms of US Treasury
collateral, and its collateral valuation process. The proposed updates
ensure that the documentation of ICC's Treasury Policy remains up-to-
date, transparent, and focused on clearly articulating the policies and
procedures used to support ICC's treasury functions, which promotes the
prompt and accurate clearance and settlement of securities
transactions, derivatives agreements, contracts, and transactions and
contributes to the safeguarding of securities and funds which are in
the custody or control of ICC or for which it is responsible. As such,
the proposed rule change is designed to promote the prompt and accurate
clearance and settlement of securities transactions, derivatives
agreements, contracts, and transactions and to contribute to the
safeguarding of securities and funds associated with security-based
swap transactions in ICC's custody or control, or for which ICC is
responsible within the meaning of Section 17A(b)(3)(F) of the Act.\3\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78q-1(b)(3)(F).
\2\ Id.
\3\ Id.
---------------------------------------------------------------------------
In addition, the proposed rule change is consistent with the
relevant requirements of Rule 17Ad-22.\4\ Rule 17Ad-22(b)(3) \5\
requires ICC to establish, implement, maintain and enforce written
policies and procedures reasonably designed to maintain sufficient
financial resources to withstand, at a minimum, a default by the two CP
families to which it has the largest exposures in extreme but plausible
market conditions. ICC believes that the proposed changes enhance its
ability to manage its financial resources, including by more clearly
articulating details related to the use of the committed repo facility,
acceptable forms of US Treasury collateral, and the collateral
valuation process. Specifically, the additional details relating to
ICC's use of a committed repo facility clarify, among other things,
that when applicable, the facility can be used to rehypothecate
sovereign debt from overnight repo investments in the event of a
counterparty default. The proposed changes also identify Floating Rate
Notes and STRIPS as unacceptable forms of US Treasury collateral for IM
and GF and, with respect to the collateral valuation process, specify
that Euros that are used to cover a US Dollar denominated product
requirement will be subject to a haircut. Such proposed changes
strengthen the documentation of ICC's treasury operations, which
supports ICC's ability to maintain sufficient financial resources to
withstand, at a minimum, a default by the two CP families to which it
has the largest exposures in extreme but plausible market conditions,
consistent with the requirements of Rule 17Ad-22(b)(3).\6\
---------------------------------------------------------------------------
\4\ 17 CFR 240.17Ad-22.
\5\ 17 CFR 240.17Ad-22(b)(3).
\6\ Id.
---------------------------------------------------------------------------
Rule 17Ad-22(d)(3) \7\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to hold assets in a manner that minimizes risk of loss or of
delay in its access to them and to invest assets in instruments with
minimal credit, market, and liquidity risks. The proposed changes
strengthen ICC's ability to safeguard assets and limit the potential
for loss or delay in access to such assets by ensuring that ICC has
clear and comprehensive procedures for the use of the committed repo
facility, transparent and well-documented policies regarding acceptable
types of US Treasury collateral, and clear and effective procedures for
collateral valuation. Moreover, ICC believes that having policies and
procedures that clearly and accurately document ICC's treasury
functions are an important component to the effectiveness of ICC's
treasury operations, which promote ICC's ability to hold assets in a
manner that minimizes risk of loss or of delay in its access to them
and to invest assets in instruments with minimal credit, market, and
liquidity risks. Such changes are therefore reasonably designed to meet
the requirements of Rule 17Ad-22(d)(3).\8\
---------------------------------------------------------------------------
\7\ 17 CFR 240.17Ad-22(d)(3).
\8\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition. The proposed changes to
ICC's Treasury Policy will apply uniformly across all market
participants. Therefore, ICC does not believe the proposed rule change
imposes any burden on competition that is inappropriate in furtherance
of the purposes of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-ICC-2019-012 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549.
[[Page 64381]]
All submissions should refer to File Number SR-ICC-2019-012. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Credit and on ICE
Clear Credit's website at https://www.theice.com/clear-credit/regulation.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICC-2019-012 and should be
submitted on or before December 12, 2019.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-25206 Filed 11-20-19; 8:45 am]
BILLING CODE 8011-01-P
