Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts, 50672-50673 [2022-17662]

Download as PDF 50672 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 2022 / Notices 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–NYSENAT–2022–14. 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. 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–NYSENAT–2022–14 and should be submitted on or before September 7, 2022. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.42 J. Matthew DeLesDernier, Deputy Secretary. SECURITIES AND EXCHANGE COMMISSION contracts would not require any changes to ICC’s Risk Management Framework.7 [Release No. 34–95472; File No. SR–ICC– 2022–007] III. Discussion and Commission Findings Section 19(b)(2)(C) of the Act directs the Commission to approve a proposed rule change of a self-regulatory organization if it finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization.8 Section 17A(b)(3)(F) of the Act requires, among other things, that the rules of ICC be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions, as well as to assure the safeguarding of securities and funds which are in the custody or control of ICC or for which it is responsible.9 The Commission finds that the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act.10 The Commission has reviewed the terms and conditions of the additional EM Contracts proposed for clearing and has determined that those terms and conditions are substantially similar to the terms and conditions of the other contracts listed in Subchapter 26D of the ICC Rules, all of which ICC currently clears, with the key difference being that the underlying reference obligations will be issuances by the Arab Republic of Egypt, Kingdom of Bahrain, and Sultanate of Oman. Moreover, after reviewing the Notice and ICC’s Rules, policies and procedures, the Commission finds that ICC would clear the additional EM Contracts pursuant to its existing clearing arrangements and related financial safeguards, protections and risk management procedures. In addition, based on its own experience and expertise, including a review of data on volume, open interest, and the number of ICC Clearing Participants (‘‘CPs’’) that currently trade in the additional EM Contracts as well as certain model parameters for the additional EM Contracts, the Commission finds that ICC’s rules, policies, and procedures are reasonably designed to price and measure the potential risk presented by the additional EM Contracts, collect financial resources in proportion to such risk, and liquidate this product in the event of a CP default. This should Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts August 11, 2022. I. Introduction On June 16, 2022, ICE Clear Credit LLC (‘‘ICC’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the ‘‘Act’’),1 and Rule 19b–4 thereunder,2 a proposed rule change to revise the ICC Rulebook (the ‘‘Rules’’) 3 to provide for the clearance of additional Standard Emerging Market Sovereign 4 CDS contracts (collectively, the ‘‘EM Contracts’’). The proposed rule change was published for comment in the Federal Register on June 22, 2022.5 The Commission did not receive comments regarding the proposed rule change. For the reasons discussed below, the Commission is approving the proposed rule change. II. Description of the Proposed Rule Change The proposed rule change would amend Subchapter 26D of the Rules to provide for the clearance of the following EM Contracts: the Arab Republic of Egypt, Kingdom of Bahrain, and Sultanate of Oman.6 The proposed rule change would do so by amending the term ‘‘Eligible SES Reference Entities’’ in Rule 26D–102 (Definitions) to include the Arab Republic of Egypt, Kingdom of Bahrain, and Sultanate of Oman in the list of specific Eligible SES Reference Entities to be cleared by ICC. ICC represents that these additional EM Contracts have terms consistent with the other EM Contracts approved for clearing at ICC and governed by Subchapter 26D of the Rules, and that clearance of these additional EM [FR Doc. 2022–17666 Filed 8–16–22; 8:45 am] 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Capitalized terms used but not defined herein have the meanings specified in the Rules. 4 The term ‘‘Standard Emerging Market Sovereign’’ is abbreviated in the Rules as ‘‘SES,’’ as used below. 5 Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts; Exchange Act Release No. 95139 (June 22, 2022); 87 FR 38435 (June 28, 2022) (File No. SR–ICC–2022–007) (‘‘Notice’’). 6 The description that follows is excerpted from the Notice, 87 FR at 38435. JSPEARS on DSK121TN23PROD with NOTICES BILLING CODE 8011–01–P 42 17 2 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 PO 00000 Frm 00074 Fmt 4703 Sfmt 4703 7 See Notice, 87 FR at 38435. U.S.C. 78s(b)(2)(C). 9 15 U.S.C. 78q–1(b)(3)(F). 10 15 U.S.C. 78q–1(b)(3)(F). 8 15 E:\FR\FM\17AUN1.SGM 17AUN1 Federal Register / Vol. 87, No. 158 / Wednesday, August 17, 2022 / Notices help ensure ICC’s ability to maintain the financial resources it needs to provide its critical services and function as a central counterparty, thereby promoting the prompt and accurate settlement of the additional EM Contracts and other credit default swap transactions. For the same reasons, the Commission believes that the proposed rule change should help assure the safeguarding of securities or funds in the custody or control of ICC. Therefore, the Commission finds that clearance of the additional EM Contracts would promote the prompt and accurate clearance and settlement of securities transactions and would help assure safeguarding of securities and funds in the custody or control of ICC, consistent with Section 17A(b)(3)(F) of the Act.11 IV. Conclusion On the basis of the foregoing, the Commission finds that the proposed rule change is consistent with the requirements of the Act, and in particular, with the requirements of Section 17A(b)(3)(F) of the Act.12 It is therefore ordered pursuant to Section 19(b)(2) of the Act 13 that the proposed rule change (SR–ICC–2022– 007), be, and hereby is, approved.14 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.15 J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–17662 Filed 8–16–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 34672; File No. 812–15349] Varagon Capital Corporation, et al. August 11, 2022. Securities and Exchange Commission (‘‘Commission’’ or ‘‘SEC’’). ACTION: Notice. AGENCY: JSPEARS on DSK121TN23PROD with NOTICES Notice of application for an order (‘‘Order’’) under sections 17(d) and 57(i) of the Investment Company Act of 1940 (the ‘‘Act’’) and rule 17d–1 under the Act to permit certain joint transactions otherwise prohibited by sections 17(d) and 57(a)(4) of the Act and rule 17d–1 under the Act. 11 15 U.S.C. 78q–1(b)(3)(F). 12 15 U.S.C. 78q–1(b)(3)(F). 13 15 U.S.C. 78s(b)(2). 14 In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 15 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 17:22 Aug 16, 2022 Jkt 256001 Applicants request an order to amend a previous order granted by the Commission that permits certain business development companies (‘‘BDCs’’) and closed-end management investment companies to co-invest in portfolio companies with each other and with certain affiliated investment entities. APPLICANTS: Varagon Capital Corporation, VCC Advisors, LLC, Varagon Capital Partners, L.P., Varagon Structured Notes Issuer, LLC, VCAP Cayman (L), L.P., VCAP Cayman (L) SPV–1, L.P., VCAP Cayman (U), L.P., VCP Holding I, L.P., VCP Holding II, L.P., VIVA Fund I, L.P., VCC Equity Holdings, LLC, and VCC Funding, LLC. FILING DATES: The application was filed on June 15, 2022, and amended on August 8, 2022. HEARING OR NOTIFICATION OF HEARING: An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing on any application by emailing the SEC’s Secretary at Secretarys-Office@sec.gov and serving the Applicants with a copy of the request by email, if an email address is listed for the relevant Applicant below, or personally or by mail, if a physical address is listed for the relevant Applicant below. Hearing requests should be received by the Commission by 5:30 p.m. on, September 6, 2022, and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by emailing the Commission’s Secretary at Secretarys-Office@sec.gov. ADDRESSES: The Commission: Secretarys-Office@sec.gov. Applicants: Afsar Farman-Farmaian, Esq., Varagon Capital Corporation, at afarmanfarmaian@varagon.com, and Steven B. Boehm, Esq., Payam Siadatpour, Esq., and Anne G. Oberndorf, Esq., Eversheds Sutherland (US) LLP, at anneoberndorf@evershedssutherland.us. SUMMARY OF APPLICATION: FOR FURTHER INFORMATION CONTACT: Kaitlin C. Bottock, Branch Chief, at (202) 551–6825 (Division of Investment Management, Chief Counsel’s Office). SUPPLEMENTARY INFORMATION: For Applicants’ representations, legal analysis, and conditions, please refer to Applicants’ first amended and restated PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 50673 application, dated August 8, 2022, which may be obtained via the Commission’s website by searching for the file number at the top of this document, or for an Applicant using the Company name search field, on the SEC’s EDGAR system. The SEC’s EDGAR system may be searched at, https://www.sec.gov/edgar/searchedgar/ legacy/companysearch.html. You may also call the SEC’s Public Reference Room at (202) 551–8090. For the Commission, by the Division of Investment Management, under delegated authority. J. Matthew DeLesDernier, Deputy Secretary. [FR Doc. 2022–17659 Filed 8–16–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–95475; File No. SR– NYSEARCA–2022–44] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Extending the Expiration Date of the Temporary Amendments to Rules 10.9261 and 10.9830 August 11, 2022. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that on July 29, 2022, NYSE Arca, Inc. (‘‘NYSE Arca’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’) the proposed rule change as described in Items I and II 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 extending the expiration date of the temporary amendments to Rules 10.9261 and 10.9830 as set forth in SR–NYSEArca– 2020–85 from July 31, 2022, to October 31, 2022, in conformity with recent changes by the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’). The proposed rule change would not make any changes to the text of NYSE Arca Rules 10.9261 and 10.9830. The proposed rule change is available on the 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 E:\FR\FM\17AUN1.SGM 17AUN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 87, Number 158 (Wednesday, August 17, 2022)]
[Notices]
[Pages 50672-50673]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17662]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95472; File No. SR-ICC-2022-007]


Self-Regulatory Organizations; ICE Clear Credit LLC; Order 
Approving Proposed Rule Change Relating to the Clearance of Additional 
Credit Default Swap Contracts

August 11, 2022.

I. Introduction

    On June 16, 2022, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant to 
Section 19(b)(1) of the Securities Exchange Act of 1934 (the 
``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to 
revise the ICC Rulebook (the ``Rules'') \3\ to provide for the 
clearance of additional Standard Emerging Market Sovereign \4\ CDS 
contracts (collectively, the ``EM Contracts''). The proposed rule 
change was published for comment in the Federal Register on June 22, 
2022.\5\ The Commission did not receive comments regarding the proposed 
rule change. For the reasons discussed below, the Commission is 
approving the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Capitalized terms used but not defined herein have the 
meanings specified in the Rules.
    \4\ The term ``Standard Emerging Market Sovereign'' is 
abbreviated in the Rules as ``SES,'' as used below.
    \5\ Self-Regulatory Organizations; ICE Clear Credit LLC; Notice 
of Filing of Proposed Rule Change Relating to the Clearance of 
Additional Credit Default Swap Contracts; Exchange Act Release No. 
95139 (June 22, 2022); 87 FR 38435 (June 28, 2022) (File No. SR-ICC-
2022-007) (``Notice'').
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II. Description of the Proposed Rule Change

    The proposed rule change would amend Subchapter 26D of the Rules to 
provide for the clearance of the following EM Contracts: the Arab 
Republic of Egypt, Kingdom of Bahrain, and Sultanate of Oman.\6\ The 
proposed rule change would do so by amending the term ``Eligible SES 
Reference Entities'' in Rule 26D-102 (Definitions) to include the Arab 
Republic of Egypt, Kingdom of Bahrain, and Sultanate of Oman in the 
list of specific Eligible SES Reference Entities to be cleared by ICC. 
ICC represents that these additional EM Contracts have terms consistent 
with the other EM Contracts approved for clearing at ICC and governed 
by Subchapter 26D of the Rules, and that clearance of these additional 
EM contracts would not require any changes to ICC's Risk Management 
Framework.\7\
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    \6\ The description that follows is excerpted from the Notice, 
87 FR at 38435.
    \7\ See Notice, 87 FR at 38435.
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III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act directs the Commission to approve a 
proposed rule change of a self-regulatory organization if it finds that 
such proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to such 
organization.\8\ Section 17A(b)(3)(F) of the Act requires, among other 
things, that the rules of ICC be designed to promote the prompt and 
accurate clearance and settlement of securities transactions and, to 
the extent applicable, derivative agreements, contracts, and 
transactions, as well as to assure the safeguarding of securities and 
funds which are in the custody or control of ICC or for which it is 
responsible.\9\
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78s(b)(2)(C).
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds that the proposed rule change is consistent 
with Section 17A(b)(3)(F) of the Act.\10\ The Commission has reviewed 
the terms and conditions of the additional EM Contracts proposed for 
clearing and has determined that those terms and conditions are 
substantially similar to the terms and conditions of the other 
contracts listed in Subchapter 26D of the ICC Rules, all of which ICC 
currently clears, with the key difference being that the underlying 
reference obligations will be issuances by the Arab Republic of Egypt, 
Kingdom of Bahrain, and Sultanate of Oman. Moreover, after reviewing 
the Notice and ICC's Rules, policies and procedures, the Commission 
finds that ICC would clear the additional EM Contracts pursuant to its 
existing clearing arrangements and related financial safeguards, 
protections and risk management procedures.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    In addition, based on its own experience and expertise, including a 
review of data on volume, open interest, and the number of ICC Clearing 
Participants (``CPs'') that currently trade in the additional EM 
Contracts as well as certain model parameters for the additional EM 
Contracts, the Commission finds that ICC's rules, policies, and 
procedures are reasonably designed to price and measure the potential 
risk presented by the additional EM Contracts, collect financial 
resources in proportion to such risk, and liquidate this product in the 
event of a CP default. This should

[[Page 50673]]

help ensure ICC's ability to maintain the financial resources it needs 
to provide its critical services and function as a central 
counterparty, thereby promoting the prompt and accurate settlement of 
the additional EM Contracts and other credit default swap transactions. 
For the same reasons, the Commission believes that the proposed rule 
change should help assure the safeguarding of securities or funds in 
the custody or control of ICC.
    Therefore, the Commission finds that clearance of the additional EM 
Contracts would promote the prompt and accurate clearance and 
settlement of securities transactions and would help assure 
safeguarding of securities and funds in the custody or control of ICC, 
consistent with Section 17A(b)(3)(F) of the Act.\11\
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    \11\ 15 U.S.C. 78q-1(b)(3)(F).
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposed rule change is consistent with the requirements of the Act, 
and in particular, with the requirements of Section 17A(b)(3)(F) of the 
Act.\12\
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    \12\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    It is therefore ordered pursuant to Section 19(b)(2) of the Act 
\13\ that the proposed rule change (SR-ICC-2022-007), be, and hereby 
is, approved.\14\
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    \13\ 15 U.S.C. 78s(b)(2).
    \14\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-17662 Filed 8-16-22; 8:45 am]
BILLING CODE 8011-01-P

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