Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts, 46819-46820 [2023-15355]
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Federal Register / Vol. 88, No. 138 / Thursday, July 20, 2023 / Notices
www.prc.gov, Docket Nos. MC2023–185,
CP2023–189.
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2023–15366 Filed 7–19–23; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
Product Change—First-Class Package
Service & Parcel Select Service
Negotiated Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
II. Description of the Proposed Rule
Change
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: July 20,
2023.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on June 23, 2023,
it filed with the Postal Regulatory
Commission a USPS Request to Add
First-Class Package Service & Parcel
Select Service Contract 4 to Competitive
Product List. Documents are available at
www.prc.gov, Docket Nos. MC2023–176,
CP2022–180.
SUMMARY:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2023–15348 Filed 7–19–23; 8:45 am]
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97908; File No. SR–ICC–
2023–005]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Order Approving
Proposed Rule Change Relating to the
Clearance of Additional Credit Default
Swap Contracts
lotter on DSK11XQN23PROD with NOTICES1
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act requires
the Commission to approve a proposed
CFR 240.19b–4.
Organizations; ICE Clear Credit
LLC; Notice of Proposed Rule Change Relating to
the Clearance of Additional Credit Default Swap
Contracts; Exchange Act Release No. 97293 (Apr.
12, 2023), 88 FR 23711 (Apr. 18, 2023) (File No.
SR–ICC–2023–005) (‘‘Notice’’).
4 Self-Regulatory Organizations; ICE Clear Credit
LLC; Notice of Designation of Longer Period for
Commission Action on Proposed Rule Relating to
the Clearance of Additional Credit Default Swap
Contracts; Exchange Act Release No. 97482 (May
11, 2023), 88 FR 31554 (May 17, 2023) (File No. SR–
ICC–2023–005).
3 Self-Regulatory
I. Introduction
On March 30, 2023, ICE Clear Credit
LLC (‘‘ICC’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(2) of the Securities Exchange Act
of 1934 (the ‘‘Act’’) 1 and Rule 19b–4
U.S.C. 78s(b)(1).
VerDate Sep<11>2014
ICC is registered with the Commission
as a clearing agency for the purpose of
clearing CDS contracts. Chapter 26 of
ICC’s Rulebook covers the CDS contracts
that ICC clears, with each subchapter of
Chapter 26 defining the characteristics
and additional Rules applicable to the
various specific categories of CDS
contracts that ICC clears. Among other
CDS contracts, ICC currently clears
Standard Emerging Market Sovereign
Single Name CDS (‘‘SES’’) contracts.
The purpose of the proposed rule
change is to amend ICC’s rules to permit
ICC to clear an additional SES contract,
specifically, SES contracts on the
Dominican Republic. To carry out this
change, the proposed rule change would
amend Subchapter 26D of Chapter 26. In
Rule 26D–102 (Definitions), ‘‘Eligible
SES Reference Entities,’’ the proposed
rule change would add the Dominican
Republic to the list of specific Eligible
SES Reference Entities to be cleared by
ICC.
As discussed below, this additional
SES contract has terms consistent with
the other SES contracts that ICC is
already clearing. As such, to clear this
additional contract, ICC will be able to
rely on its existing Risk Management
Framework and other policies and
procedures without making any
changes.
2 17
July 14, 2023.
1 15
thereunder,2 a proposed rule change to
clear an additional credit default swap
(‘‘CDS’’) contract. The proposed rule
change was published for comment in
the Federal Register on April 18, 2023.3
On May 11, 2023, the Commission
designated a longer period for
Commission action on the proposed rule
change until July 17, 2023.4 The
Commission did not receive comments
regarding the proposed rule change. For
the reasons discussed below, the
Commission is approving the proposed
rule change.
17:19 Jul 19, 2023
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PO 00000
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Fmt 4703
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46819
rule change of a self-regulatory
organization if it finds that the proposed
rule change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
the organization.5 For the reasons given
below, the Commission finds that the
proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act 6 and
Rule 17Ad–22(e)(1) thereunder.7
A. Consistency With Section
17A(b)(3)(F) of the Act
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.8
The Commission finds that the
proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act.9 The
Commission has reviewed the terms and
conditions of the additional SES
contract 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 the underlying reference
obligations. For the additional SES
contract, the underlying reference
obligations will be issuances by the
Dominican Republic.
After reviewing the Notice and ICC’s
Rules, policies, and procedures, the
Commission also finds that ICC would
be able to clear the additional SES
contract pursuant to its existing clearing
arrangements and related financial
safeguards, protections, and risk
management procedures. Commission
staff also conducted a review of data on
volume, open interest, and the number
of ICC Clearing Participants (‘‘CPs’’) that
currently trade in the SES contracts, as
well as certain model parameters for the
additional contracts. Based on this
review, as well as its own experience
and expertise, the Commission finds
that ICC’s Rules, policies, and
procedures are reasonably designed to
price and measure the potential risk
presented by the additional SES
contract, collect financial resources in
proportion to such risk, and liquidate
the additional contracts in the event of
a CP default. This should help ensure
ICC’s ability to maintain the financial
5 15
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
7 17 CFR 240Ad–22(e)(1).
8 15 U.S.C. 78q–1(b)(3)(F).
9 15 U.S.C. 78q–1(b)(3)(F).
6 15
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20JYN1
46820
Federal Register / Vol. 88, No. 138 / Thursday, July 20, 2023 / Notices
resources it needs to provide its critical
services and function as a central
counterparty, thereby promoting the
prompt and accurate settlement of the
additional SES contracts and other
credit default swap transactions.
Therefore, the Commission finds that
clearance of the additional SES contract
would promote the prompt and accurate
clearance and settlement of securities
transactions, consistent with Section
17A(b)(3)(F) of the Act.10
B. Consistency With Rule 17Ad–22(e)(1)
Rule 17Ad–22(e)(1) requires ICC to
establish, implement, maintain, and
enforce written policies and procedures
reasonably designed to provide for a
well-founded, clear, transparent, and
enforceable legal basis for each aspect of
its activities in all relevant
jurisdictions.11
The Commission believes that the
proposed rule change would help
provide a well-founded, clear,
transparent, and enforceable legal basis
for ICC’s clearance of SES contracts on
the Dominican Republic. By amending
Rule 26D–102 to add the Dominican
Republic to the list of specific Eligible
SES Reference Entities to be cleared by
ICC, the proposed rule change would
help to ensure that ICC can clear SES
contracts on the Dominican Republic
pursuant to its existing rules in
Subchapter 26D. The Commission
believes Subchapter 26D would provide
a well-founded, clear, transparent, and
enforceable legal basis for ICC to clear
these contracts, consistent with the
requirements of Rule 17Ad–22(e)(1).12
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 13 and
Rule 17Ad–22(e)(1) thereunder.14
It is therefore ordered pursuant to
Section 19(b)(2) of the Act 15 that the
proposed rule change (SR–ICC–2023–
005), be, and hereby is, approved.16
10 15
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(1).
12 17 CFR 240.17Ad–22(e)(1).
13 15 U.S.C. 78q–1(b)(3)(F).
14 17 CFR 240Ad–22(e)(1).
15 15 U.S.C. 78s(b)(2).
16 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).
lotter on DSK11XQN23PROD with NOTICES1
11 17
VerDate Sep<11>2014
17:19 Jul 19, 2023
Jkt 259001
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–15355 Filed 7–19–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97909; File No. SR–NYSE–
2023–26]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Amend Its
Price List
July 14, 2023.
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 June 30,
2023, 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 selfregulatory 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 provide for an alternate
way for member organizations to qualify
for the market at-the-close (‘‘MOC’’) and
limit at-the-close (‘‘LOC’’) Tier 3. 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
PO 00000
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
Frm 00090
Fmt 4703
Sfmt 4703
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.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend it
Price List to provide for an alternate
way for member organizations to qualify
for the MOC/LOC Tier 3.
The proposed changes respond to the
current competitive environment where
order flow providers have a choice of
where to direct closing orders in NYSElisted securities by providing an
alternate way for member organizations
to send additional auction flow that will
incentivize member organizations to
send closing liquidity to achieve lower
fees and encourage greater liquidity at
the closing auction.
The Exchange proposes to implement
the fee changes effective July 3, 2023.
Competitive Environment
The Exchange operates in a highly
competitive market. 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
While Regulation NMS has enhanced
competition, it has also fostered a
‘‘fragmented’’ market structure where
trading in a single stock can occur
across multiple trading centers. When
multiple trading centers compete for
order flow in the same stock, the
Commission has recognized that ‘‘such
competition can lead to the
fragmentation of order flow in that
stock.’’ 5 Indeed, cash equity trading is
4 See Securities Exchange Act Release No. 51808
(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005)
(File No. S7–10–04) (Final Rule) (‘‘Regulation
NMS’’).
5 See Securities Exchange Act Release No. 61358,
75 FR 3594, 3597 (January 21, 2010) (File No. S7–
02–10) (Concept Release on Equity Market
Structure).
E:\FR\FM\20JYN1.SGM
20JYN1
]]>Agencies
[Federal Register Volume 88, Number 138 (Thursday, July 20, 2023)]
[Notices]
[Pages 46819-46820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15355]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97908; File No. SR-ICC-2023-005]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change Relating to the Clearance of Additional
Credit Default Swap Contracts
July 14, 2023.
I. Introduction
On March 30, 2023, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(2) of the Securities Exchange Act of 1934 (the ``Act'')
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to clear an
additional credit default swap (``CDS'') contract. The proposed rule
change was published for comment in the Federal Register on April 18,
2023.\3\ On May 11, 2023, the Commission designated a longer period for
Commission action on the proposed rule change until July 17, 2023.\4\
The Commission did not receive comments regarding the proposed rule
change. For the reasons discussed below, the Commission is approving
the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Self-Regulatory Organizations; ICE Clear Credit LLC; Notice
of Proposed Rule Change Relating to the Clearance of Additional
Credit Default Swap Contracts; Exchange Act Release No. 97293 (Apr.
12, 2023), 88 FR 23711 (Apr. 18, 2023) (File No. SR-ICC-2023-005)
(``Notice'').
\4\ Self-Regulatory Organizations; ICE Clear Credit LLC; Notice
of Designation of Longer Period for Commission Action on Proposed
Rule Relating to the Clearance of Additional Credit Default Swap
Contracts; Exchange Act Release No. 97482 (May 11, 2023), 88 FR
31554 (May 17, 2023) (File No. SR-ICC-2023-005).
---------------------------------------------------------------------------
II. Description of the Proposed Rule Change
ICC is registered with the Commission as a clearing agency for the
purpose of clearing CDS contracts. Chapter 26 of ICC's Rulebook covers
the CDS contracts that ICC clears, with each subchapter of Chapter 26
defining the characteristics and additional Rules applicable to the
various specific categories of CDS contracts that ICC clears. Among
other CDS contracts, ICC currently clears Standard Emerging Market
Sovereign Single Name CDS (``SES'') contracts.
The purpose of the proposed rule change is to amend ICC's rules to
permit ICC to clear an additional SES contract, specifically, SES
contracts on the Dominican Republic. To carry out this change, the
proposed rule change would amend Subchapter 26D of Chapter 26. In Rule
26D-102 (Definitions), ``Eligible SES Reference Entities,'' the
proposed rule change would add the Dominican Republic to the list of
specific Eligible SES Reference Entities to be cleared by ICC.
As discussed below, this additional SES contract has terms
consistent with the other SES contracts that ICC is already clearing.
As such, to clear this additional contract, ICC will be able to rely on
its existing Risk Management Framework and other policies and
procedures without making any changes.
III. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act requires the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
the proposed rule change is consistent with the requirements of the Act
and the rules and regulations thereunder applicable to the
organization.\5\ For the reasons given below, the Commission finds that
the proposed rule change is consistent with Section 17A(b)(3)(F) of the
Act \6\ and Rule 17Ad-22(e)(1) thereunder.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2)(C).
\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 17 CFR 240Ad-22(e)(1).
---------------------------------------------------------------------------
A. Consistency With Section 17A(b)(3)(F) of the Act
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.\8\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with Section 17A(b)(3)(F) of the Act.\9\ The Commission has reviewed
the terms and conditions of the additional SES contract 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 the underlying
reference obligations. For the additional SES contract, the underlying
reference obligations will be issuances by the Dominican Republic.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
After reviewing the Notice and ICC's Rules, policies, and
procedures, the Commission also finds that ICC would be able to clear
the additional SES contract pursuant to its existing clearing
arrangements and related financial safeguards, protections, and risk
management procedures. Commission staff also conducted a review of data
on volume, open interest, and the number of ICC Clearing Participants
(``CPs'') that currently trade in the SES contracts, as well as certain
model parameters for the additional contracts. Based on this review, as
well as its own experience and expertise, the Commission finds that
ICC's Rules, policies, and procedures are reasonably designed to price
and measure the potential risk presented by the additional SES
contract, collect financial resources in proportion to such risk, and
liquidate the additional contracts in the event of a CP default. This
should help ensure ICC's ability to maintain the financial
[[Page 46820]]
resources it needs to provide its critical services and function as a
central counterparty, thereby promoting the prompt and accurate
settlement of the additional SES contracts and other credit default
swap transactions.
Therefore, the Commission finds that clearance of the additional
SES contract would promote the prompt and accurate clearance and
settlement of securities transactions, consistent with Section
17A(b)(3)(F) of the Act.\10\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
B. Consistency With Rule 17Ad-22(e)(1)
Rule 17Ad-22(e)(1) requires ICC to establish, implement, maintain,
and enforce written policies and procedures reasonably designed to
provide for a well-founded, clear, transparent, and enforceable legal
basis for each aspect of its activities in all relevant
jurisdictions.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 240.17Ad-22(e)(1).
---------------------------------------------------------------------------
The Commission believes that the proposed rule change would help
provide a well-founded, clear, transparent, and enforceable legal basis
for ICC's clearance of SES contracts on the Dominican Republic. By
amending Rule 26D-102 to add the Dominican Republic to the list of
specific Eligible SES Reference Entities to be cleared by ICC, the
proposed rule change would help to ensure that ICC can clear SES
contracts on the Dominican Republic pursuant to its existing rules in
Subchapter 26D. The Commission believes Subchapter 26D would provide a
well-founded, clear, transparent, and enforceable legal basis for ICC
to clear these contracts, consistent with the requirements of Rule
17Ad-22(e)(1).\12\
---------------------------------------------------------------------------
\12\ 17 CFR 240.17Ad-22(e)(1).
---------------------------------------------------------------------------
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 \13\ and Rule 17Ad-22(e)(1) thereunder.\14\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1(b)(3)(F).
\14\ 17 CFR 240Ad-22(e)(1).
---------------------------------------------------------------------------
It is therefore ordered pursuant to Section 19(b)(2) of the Act
\15\ that the proposed rule change (SR-ICC-2023-005), be, and hereby
is, approved.\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78s(b)(2).
\16\ 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.\17\
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-15355 Filed 7-19-23; 8:45 am]
BILLING CODE 8011-01-P
