Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Establish Implementation Date of National Securities Clearing Corporation's Enhancements to the Haircut-Based Volatility Charge Applicable to Illiquid Securities and UITs and Making Certain Other Changes to Procedure XV, 80852-80853 [2020-27396]
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<![CDATA[
80852
Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices
Number SR–ISE–2020–40 and should be
submitted on or before January 4, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–27390 Filed 12–11–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90606; File No. SR–NSCC–
2020–020]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change to Establish
Implementation Date of National
Securities Clearing Corporation’s
Enhancements to the Haircut-Based
Volatility Charge Applicable to Illiquid
Securities and UITs and Making
Certain Other Changes to Procedure
XV
December 8, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
7, 2020, National Securities Clearing
Corporation (‘‘NSCC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the clearing agency. NSCC filed the
proposed rule change pursuant to
Section 19(b)(3)(A) 3 of the Act and
subparagraph (f)(4) 4 of Rule 19b–4
thereunder. 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 proposed rule change consists of
amendments to the NSCC Rules &
Procedures (the ‘‘Rules’’) 5 in order to
establish order to establish the
implementation date of rule changes
submitted pursuant to rule filing SR–
jbell on DSKJLSW7X2PROD with NOTICES
25 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
5 Capitalized terms not defined herein are defined
in the Rules, available at
https://dtcc.com/∼/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
1 15
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02:51 Dec 12, 2020
Jkt 253001
NSCC–2020–003 (‘‘Rule Filing’’) 6 and
advance notice SR–NSCC–2020–802
(‘‘Advance Notice’’).7
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency 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 these
statements may be examined at the
places specified in Item IV below. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
On November 6, 2020, the Securities
and Exchange Commission (the
‘‘Commission’’) issued a notice of no
objection to the Advance Notice,8 which
was filed with the Commission pursuant
to Section 806(e)(1) of Title VIII of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act entitled the
Payment, Clearing, and Settlement
Supervision Act of 2010 9 and Rule 19b–
4(n)(1)(i) of the Act.10 The Commission
also issued an order approving the Rule
Filing on November 24, 2020,11 which
was filed by NSCC pursuant to Section
19(b)(2) of the Act.12
The purpose of the Rule Filing and
the Advance Notice is to amend the
Rules to enhance the calculation of
certain components of the Clearing
Fund formula.
NSCC is filing this proposed rule
change to establish the rule changes
submitted pursuant to the Rule Filing
and the Advance Notice will be
implemented by February 28, 2021.
NSCC would add a legend to Rule 1
(Definitions and Descriptions) of the
Rules (‘‘Rule 1’’) 13 and Procedure XV
(Clearing Fund Formula and Other
Matters) of the Rules (‘‘Procedure
6 See Securities Exchange Act Release No. 88474
(March 25, 2020), 85 FR 17910 (March 31, 2020)
(SR–NSCC–2020–003).
7 See Securities Exchange Act Release No. 88615
(April 9, 2020), 85 FR 21037 (April 15, 2020) (SR–
NSCC–2020–802).
8 See Securities Exchange Act Release No. 90367
(November 6, 2020) 85 FR 73099 (November 16,
2020) (SR–NSCC–2020–802).
9 12 U.S.C. 5465(e)(1).
10 17 CFR 240.19b–4(n)(1)(i).
11 See Securities Exchange Act Release No. 90502
(November 24, 2020) (SR–NSCC–2020–003).
12 15 U.S.C. 78s(b)(2).
13 Rule 1, supra note 5.
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
XV’’) 14 to state that the rule changes
submitted pursuant to the Rule Filing
and the Advance Notice have been
approved and not objected to,
respectively, but are not yet
implemented. The legends would
provide that these rule changes would
be implemented by February 28, 2021
and include the file numbers of the Rule
Filing and the Advance Notice. The
legends would also state that when the
rule changes are implemented, NSCC
will announce the implementation by
important notice and the legends would
automatically be removed from Rule 1
and Procedure XV.
2. Statutory Basis
Section 17A(b)(3)(F) of the Act
requires, in part, that the Rules be
designed to (i) promote the prompt and
accurate clearance and settlement of
securities transactions and (ii) remove
impediments to and perfect the
mechanism of a national system for the
prompt and accurate clearance and
settlement of securities transactions,
and, in general, to protect investors and
the public interest.15 The proposed rule
change would establish the
implementation date of rule changes
described above and provide Members
with an understanding of when these
rule changes will begin to affect them.
Knowing when the rule changes will
begin to affect Members would enable
them to timely fulfill their obligations to
NSCC, which would in turn ensure
NSCC’s processes work as intended.
Therefore, NSCC believes that the
proposed rule change would promote
the prompt and accurate clearance and
settlement of securities transactions as
well as remove impediments to and
perfect the mechanism of a national
system for the prompt and accurate
clearance and settlement of securities
transactions, consistent with Section
17A(b)(3)(F) of the Act cited above.
(B) Clearing Agency’s Statement on
Burden on Competition
NSCC does not believe that the
proposed rule change to establish an
implementation date for the rule
changes described above would have
any impact, or impose any burden, on
competition because the proposed rule
change is intended to provide additional
clarity in the Rules with respect to when
these rule changes would be
implemented. As such, the proposed
rule change would not affect the rights
or obligations of the Members or NSCC
other than establishing when the rule
14 Procedure
15 15
E:\FR\FM\14DEN1.SGM
XV, supra note 5.
U.S.C. 78q–1(b)(3)(F).
14DEN1
Federal Register / Vol. 85, No. 240 / Monday, December 14, 2020 / Notices
changes described above would begin to
impact the Members.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received from Members,
Participants, or Others
NSCC has not received or solicited
any written comments relating to this
proposal. NSCC will notify the
Commission of any written comments
received by NSCC.
III. Date of Effectiveness of the
Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 16 of the Act and paragraph
(f) 17 of Rule 19b–4 thereunder. At any
time within 60 days of the filing of the
proposed rule change, the Commission
summarily may temporarily suspend
such rule change if it appears to the
Commission that such action is
necessary or appropriate in the public
interest, for the protection of investors,
or otherwise in furtherance of the
purposes of the Act.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
Electronic Comments
SECURITIES AND EXCHANGE
COMMISSION
• 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–
NSCC–2020–020 on the subject line.
Paper Comments
jbell on DSKJLSW7X2PROD with NOTICES
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 NSCC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). 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–NSCC–
2020–020 and should be submitted on
or before January 4, 2021.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street, NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–NSCC–2020–020. 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
[FR Doc. 2020–27396 Filed 12–11–20; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–90594; File No. SR–CBOE–
2020–051]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Designation
of a Longer Period for Commission
Action on Proceedings To Determine
Whether To Approve or Disapprove a
Proposed Rule Change, as Modified by
Amendment No. 1, To Amend the
Automated Price Improvement Auction
Rules in Connection With Agency
Order Size Requirements
December 8, 2020.
On June 11, 2020, Cboe Exchange, Inc.
(‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change
permitting the Exchange to impose a
maximum size requirement for an
agency order submitted into the
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
16 15
U.S.C 78s(b)(3)(A).
17 17 CFR 240.19b–4(f).
VerDate Sep<11>2014
02:51 Dec 12, 2020
1 15
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Sfmt 4703
80853
Automated Price Improvement
Mechanism (‘‘AIM’’) and the Complex
Automated Price Improvement
Mechanism (‘‘C–AIM’’) in S&P 500®
Index Options (‘‘SPX’’). The proposed
rule change was published for comment
in the Federal Register on June 18,
2020.3 On July 23, 2020, the Exchange
submitted Amendment No. 1 to the
proposed rule change, which replaced
and superseded the proposed rule
change in its entirety.4 On July 27, 2020,
pursuant to Section 19(b)(2) of the Act,5
the Commission designated a longer
period within which to approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.6
On August 21, 2020, the Commission
published notice of Amendment No. 1
and instituted proceedings under
Section 19(b)(2)(B) of the Act 7 to
determine whether to approve or
disapprove the proposed rule change, as
modified by Amendment No. 1.8
Section 19(b)(2) of the Act 9 provides
that, after initiating disapproval
proceedings, the Commission shall issue
an order approving or disapproving the
proposed rule change not later than 180
days after the date of publication of
notice of filing of the proposed rule
change. The Commission may extend
the period for issuing an order
approving or disapproving the proposed
rule change, however, by not more than
60 days if the Commission determines
that a longer period is appropriate and
publishes the reasons for such
determination. The date of publication
of notice of filing of the proposed rule
change was June 18, 2020. December 15,
2020, is 180 days from that date, and
3 See Securities Exchange Act Release No. 89058
(June 12, 2020), 85 FR 36918. Comments received
on the proposed rule change are available on the
Commission’s website at: https://www.sec.gov/
comments/sr-cboe-2020-051/srcboe2020051.htm.
4 In Amendment No. 1, the Exchange: (1)
Amended its proposal to modify the proposed
maximum size requirement for AIM and C–AIM
agency orders in SPX to ten contracts rather than
a size determined by the Exchange of up to 100
contracts, specify that this size requirement would
apply to all agency orders in SPX, and make related
conforming changes to its proposed rule text; and
(2) provided additional data, justification, and
support for its modified proposal. The full text of
Amendment No. 1 is available on the Commission’s
website at: https://www.sec.gov/comments/sr-cboe2020-051/srcboe2020051-7470738-221292.pdf.
5 15 U.S.C. 78s(b)(2).
6 See Securities Exchange Act Release No. 89399,
85 FR 46202 (July 31, 2020). The Commission
designated September 16, 2020 as the date by which
the Commission shall approve or disapprove, or
institute proceedings to determine whether to
disapprove, the proposed rule change.
7 15 U.S.C. 78s(b)(2)(B).
8 See Securities Exchange Act Release No. 89636,
85 FR 53029 (August 27, 2020).
9 15 U.S.C. 78s(b)(2).
E:\FR\FM\14DEN1.SGM
14DEN1
]]>Agencies
[Federal Register Volume 85, Number 240 (Monday, December 14, 2020)]
[Notices]
[Pages 80852-80853]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27396]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90606; File No. SR-NSCC-2020-020]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
to Establish Implementation Date of National Securities Clearing
Corporation's Enhancements to the Haircut-Based Volatility Charge
Applicable to Illiquid Securities and UITs and Making Certain Other
Changes to Procedure XV
December 8, 2020.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 7, 2020, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the clearing agency.
NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) \3\
of the Act and subparagraph (f)(4) \4\ of Rule 19b-4 thereunder. The
Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change consists of amendments to the NSCC Rules &
Procedures (the ``Rules'') \5\ in order to establish order to establish
the implementation date of rule changes submitted pursuant to rule
filing SR-NSCC-2020-003 (``Rule Filing'') \6\ and advance notice SR-
NSCC-2020-802 (``Advance Notice'').\7\
---------------------------------------------------------------------------
\5\ Capitalized terms not defined herein are defined in the
Rules, available at
https://dtcc.com/~/media/Files/Downloads/legal/rules/
nscc_rules.pdf.
\6\ See Securities Exchange Act Release No. 88474 (March 25,
2020), 85 FR 17910 (March 31, 2020) (SR-NSCC-2020-003).
\7\ See Securities Exchange Act Release No. 88615 (April 9,
2020), 85 FR 21037 (April 15, 2020) (SR-NSCC-2020-802).
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, the clearing agency 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 these statements may be examined at the places
specified in Item IV below. The clearing agency has prepared summaries,
set forth in sections A, B, and C below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
1. Purpose
On November 6, 2020, the Securities and Exchange Commission (the
``Commission'') issued a notice of no objection to the Advance
Notice,\8\ which was filed with the Commission pursuant to Section
806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act entitled the Payment, Clearing, and Settlement
Supervision Act of 2010 \9\ and Rule 19b-4(n)(1)(i) of the Act.\10\ The
Commission also issued an order approving the Rule Filing on November
24, 2020,\11\ which was filed by NSCC pursuant to Section 19(b)(2) of
the Act.\12\
---------------------------------------------------------------------------
\8\ See Securities Exchange Act Release No. 90367 (November 6,
2020) 85 FR 73099 (November 16, 2020) (SR-NSCC-2020-802).
\9\ 12 U.S.C. 5465(e)(1).
\10\ 17 CFR 240.19b-4(n)(1)(i).
\11\ See Securities Exchange Act Release No. 90502 (November 24,
2020) (SR-NSCC-2020-003).
\12\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------
The purpose of the Rule Filing and the Advance Notice is to amend
the Rules to enhance the calculation of certain components of the
Clearing Fund formula.
NSCC is filing this proposed rule change to establish the rule
changes submitted pursuant to the Rule Filing and the Advance Notice
will be implemented by February 28, 2021. NSCC would add a legend to
Rule 1 (Definitions and Descriptions) of the Rules (``Rule 1'') \13\
and Procedure XV (Clearing Fund Formula and Other Matters) of the Rules
(``Procedure XV'') \14\ to state that the rule changes submitted
pursuant to the Rule Filing and the Advance Notice have been approved
and not objected to, respectively, but are not yet implemented. The
legends would provide that these rule changes would be implemented by
February 28, 2021 and include the file numbers of the Rule Filing and
the Advance Notice. The legends would also state that when the rule
changes are implemented, NSCC will announce the implementation by
important notice and the legends would automatically be removed from
Rule 1 and Procedure XV.
---------------------------------------------------------------------------
\13\ Rule 1, supra note 5.
\14\ Procedure XV, supra note 5.
---------------------------------------------------------------------------
2. Statutory Basis
Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to (i) promote the prompt and accurate clearance and
settlement of securities transactions and (ii) remove impediments to
and perfect the mechanism of a national system for the prompt and
accurate clearance and settlement of securities transactions, and, in
general, to protect investors and the public interest.\15\ The proposed
rule change would establish the implementation date of rule changes
described above and provide Members with an understanding of when these
rule changes will begin to affect them. Knowing when the rule changes
will begin to affect Members would enable them to timely fulfill their
obligations to NSCC, which would in turn ensure NSCC's processes work
as intended. Therefore, NSCC believes that the proposed rule change
would promote the prompt and accurate clearance and settlement of
securities transactions as well as remove impediments to and perfect
the mechanism of a national system for the prompt and accurate
clearance and settlement of securities transactions, consistent with
Section 17A(b)(3)(F) of the Act cited above.
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
NSCC does not believe that the proposed rule change to establish an
implementation date for the rule changes described above would have any
impact, or impose any burden, on competition because the proposed rule
change is intended to provide additional clarity in the Rules with
respect to when these rule changes would be implemented. As such, the
proposed rule change would not affect the rights or obligations of the
Members or NSCC other than establishing when the rule
[[Page 80853]]
changes described above would begin to impact the Members.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received from Members, Participants, or Others
NSCC has not received or solicited any written comments relating to
this proposal. NSCC will notify the Commission of any written comments
received by NSCC.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \16\ of the Act and paragraph (f) \17\ of Rule 19b-4
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------
\16\ 15 U.S.C 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-NSCC-2020-020 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street, NE, Washington, DC 20549.
All submissions should refer to File Number SR-NSCC-2020-020. 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 NSCC and on DTCC's website
(https://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2020-020 and should be submitted on
or before January 4, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------
\18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-27396 Filed 12-11-20; 8:45 am]
BILLING CODE 8011-01-P
