Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts, 57163-57164 [2023-17977]
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Federal Register / Vol. 88, No. 161 / Tuesday, August 22, 2023 / Notices
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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NYSECHX–2023–16 and should be
submitted on or before September 12,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–17983 Filed 8–21–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98143; File No. SR–ICC–
2023–010]
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
August 16, 2023.
I. Introduction
On June 13, 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 additional credit default swap
(‘‘CDS’’) contracts. The proposed rule
change was published for comment in
the Federal Register on July 3, 2023.3
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Self-Regulatory Organizations; ICE Clear Credit
LLC; Notice of Filing of Proposed Rule Change
1 15
VerDate Sep<11>2014
16:57 Aug 21, 2023
Jkt 259001
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
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 and
Standard Western European Sovereign
Single Name (‘‘SWES’’) contracts.
The purpose of the proposed rule
change is to amend ICC’s rules to permit
ICC to clear additional SES and SWES
contracts, specifically, SES contracts on
Romania and the Socialist Republic of
Vietnam and SWES contracts on the
Kingdom of Sweden.
To carry out this change, the proposed
rule change would amend Subchapter
26D and Subchapter 26I of Chapter 26.
In Rule 26D–102 (Definitions), ‘‘Eligible
SES Reference Entities,’’ the proposed
rule change would add Romania and the
Socialist Republic of Vietnam to the list
of specific Eligible SES Reference
Entities to be cleared by ICC. Likewise,
in Rule 26I–102 (Definitions), ‘‘Eligible
SWES Reference Entities,’’ the proposed
rule change would add the Kingdom of
Sweden to the list of specific Eligible
SWES Reference Entities to be cleared
by ICC.
As discussed below, these additional
SES and SWES contracts have terms
consistent with the other SES and SWES
contracts that ICC is already clearing.
Likewise, to clear these additional
contracts, 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.4 For the reasons given
Relating to the Clearance of Additional Credit
Default Swap Contracts; Exchange Act Release No.
97808 (June 27, 2023), 88 FR 42807 (July 3, 2023)
(File No. SR–ICC–2023–010) (‘‘Notice’’).
4 15 U.S.C. 78s(b)(2)(C).
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
57163
below, the Commission finds that the
proposed rule change is consistent with
section 17A(b)(3)(F) of the Act 5 and
Rule 17Ad–22(e)(1) thereunder.6
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.7
The Commission finds that the
proposed rule change is consistent with
section 17A(b)(3)(F) of the Act.8 The
Commission has reviewed the terms and
conditions of the additional SES and
SWES 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 and
26I of the ICC Rules, all of which ICC
currently clears, with the key difference
being the underlying reference
obligations. For the additional SES
contracts, the underlying reference
obligations will be issuances by
Romania and the Socialist Republic of
Vietnam. For the additional SWES
contracts, the underlying reference
obligations will be issuances by the
Kingdom of Sweden.
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 and
SWES contracts 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 and SWES 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 and
SWES contracts, 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 resources it needs to provide
its critical services and function as a
5 15
U.S.C. 78q–1(b)(3)(F).
CFR 240Ad–22(e)(1).
7 15 U.S.C. 78q–1(b)(3)(F).
8 15 U.S.C. 78q–1(b)(3)(F).
6 17
E:\FR\FM\22AUN1.SGM
22AUN1
57164
Federal Register / Vol. 88, No. 161 / Tuesday, August 22, 2023 / Notices
central counterparty, thereby promoting
the prompt and accurate settlement of
the additional SES and SWES contracts
and other credit default swap
transactions.
Therefore, the Commission finds that
clearance of the additional SES and
SWES contracts would promote the
prompt and accurate clearance and
settlement of securities transactions,
consistent with section 17A(b)(3)(F) of
the Act.9
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.10
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
Romania and the Socialist Republic of
Vietnam as well as SWES contracts on
the Kingdom of Sweden. By amending
Rule 26D–102 to add both the Socialist
Republic of Vietnam and Romania 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 those countries pursuant to its
existing rules in Subchapter 26D.
Likewise, by amending Rule 26I–102 to
add the Kingdom of Sweden to the list
of specific Eligible SWES Reference
Entities to be cleared by ICC, the
proposed rule change would help to
ensure that ICC can clear SWES
contracts on the Kingdom of Sweden
pursuant to its rules in Subchapter 26I.
The Commission believes Subchapter
26D and Subchapter 26I each 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).11
lotter on DSK11XQN23PROD with NOTICES1
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 and
Rule 17Ad–22(e)(1) thereunder.13
[FR Doc. 2023–17977 Filed 8–21–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–107, OMB Control No.
3235–0116]
Proposed Collection; Comment
Request; Extension: Form 6–K—
Exchange Act Rules 13a–16 and 15d–
16
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval.
Form 6–K (17 CFR 249.306) is a
disclosure document under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) that must be filed by
a foreign private issuer to report
material information promptly after the
occurrence of specified or other
important corporate events that are
disclosed in the foreign private issuer’s
home country. The purpose of Form 6–
K is to ensure that U.S. investors have
access to the same information that
foreign investors do when making
investment decisions. Form 6–K takes
approximately 8.7 hours per response
and is filed by approximately 34,794
issuers annually. We estimate that 75%
of the 8.7 hours per response (6.525
hours) is prepared by the issuer for a
total annual reporting burden of 227,031
hours (6.525 hours per response ×
34,794 responses).
U.S.C. 78s(b)(2).
approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
16 17 CFR 200.30–3(a)(12).
U.S.C. 78q–1(b)(3)(F).
10 17 CFR 240Ad–22(e)(1).
11 17 CFR 240.17Ad–22(e)(1).
12 15 U.S.C. 78q–1(b)(3)(F).
13 17 CFR 240.17Ad–22(e)(1).
16:57 Aug 21, 2023
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Sherry R. Haywood,
Assistant Secretary.
14 15
9 15
VerDate Sep<11>2014
It is therefore ordered pursuant to
section 19(b)(2) of the Act 14 that the
proposed rule change (SR–ICC–2023–
010), be, and hereby is, approved.15
15 In
Jkt 259001
PO 00000
Frm 00087
Fmt 4703
Sfmt 4703
Written comments are invited on: (a)
whether this proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden imposed by the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication by October 23, 2023.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
Please direct your written comment to
David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: August 17, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–18011 Filed 8–21–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98147; File No. SR–ICC–
2023–009]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Amendment No. 1 and Partial
Amendment No. 2 and Order Granting
Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment No. 1 and Partial
Amendment No. 2, Relating to the ICC
Default Auction Procedures—Initial
Default Auctions
August 16, 2023.
I. Introduction
On June 22, 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
amend the ICC Default Auction
Procedures—Initial Default Auctions
1 15
2 17
E:\FR\FM\22AUN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
22AUN1
]]>Agencies
[Federal Register Volume 88, Number 161 (Tuesday, August 22, 2023)]
[Notices]
[Pages 57163-57164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17977]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98143; File No. SR-ICC-2023-010]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change Relating to the Clearance of Additional
Credit Default Swap Contracts
August 16, 2023.
I. Introduction
On June 13, 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
additional credit default swap (``CDS'') contracts. The proposed rule
change was published for comment in the Federal Register on July 3,
2023.\3\ 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 Filing of Proposed Rule Change Relating to the Clearance of
Additional Credit Default Swap Contracts; Exchange Act Release No.
97808 (June 27, 2023), 88 FR 42807 (July 3, 2023) (File No. SR-ICC-
2023-010) (``Notice'').
---------------------------------------------------------------------------
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 and Standard Western
European Sovereign Single Name (``SWES'') contracts.
The purpose of the proposed rule change is to amend ICC's rules to
permit ICC to clear additional SES and SWES contracts, specifically,
SES contracts on Romania and the Socialist Republic of Vietnam and SWES
contracts on the Kingdom of Sweden.
To carry out this change, the proposed rule change would amend
Subchapter 26D and Subchapter 26I of Chapter 26. In Rule 26D-102
(Definitions), ``Eligible SES Reference Entities,'' the proposed rule
change would add Romania and the Socialist Republic of Vietnam to the
list of specific Eligible SES Reference Entities to be cleared by ICC.
Likewise, in Rule 26I-102 (Definitions), ``Eligible SWES Reference
Entities,'' the proposed rule change would add the Kingdom of Sweden to
the list of specific Eligible SWES Reference Entities to be cleared by
ICC.
As discussed below, these additional SES and SWES contracts have
terms consistent with the other SES and SWES contracts that ICC is
already clearing. Likewise, to clear these additional contracts, 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.\4\ For the reasons given below, the Commission finds that
the proposed rule change is consistent with section 17A(b)(3)(F) of the
Act \5\ and Rule 17Ad-22(e)(1) thereunder.\6\
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2)(C).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
\6\ 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.\7\
---------------------------------------------------------------------------
\7\ 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.\8\ The Commission has reviewed
the terms and conditions of the additional SES and SWES 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 and 26I of the ICC Rules, all
of which ICC currently clears, with the key difference being the
underlying reference obligations. For the additional SES contracts, the
underlying reference obligations will be issuances by Romania and the
Socialist Republic of Vietnam. For the additional SWES contracts, the
underlying reference obligations will be issuances by the Kingdom of
Sweden.
---------------------------------------------------------------------------
\8\ 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 and SWES contracts 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 and SWES 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 and SWES contracts, 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 resources it needs to provide its critical
services and function as a
[[Page 57164]]
central counterparty, thereby promoting the prompt and accurate
settlement of the additional SES and SWES contracts and other credit
default swap transactions.
Therefore, the Commission finds that clearance of the additional
SES and SWES contracts would promote the prompt and accurate clearance
and settlement of securities transactions, consistent with section
17A(b)(3)(F) of the Act.\9\
---------------------------------------------------------------------------
\9\ 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.\10\
---------------------------------------------------------------------------
\10\ 17 CFR 240Ad-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 Romania and the Socialist
Republic of Vietnam as well as SWES contracts on the Kingdom of Sweden.
By amending Rule 26D-102 to add both the Socialist Republic of Vietnam
and Romania 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 those countries pursuant to its existing
rules in Subchapter 26D. Likewise, by amending Rule 26I-102 to add the
Kingdom of Sweden to the list of specific Eligible SWES Reference
Entities to be cleared by ICC, the proposed rule change would help to
ensure that ICC can clear SWES contracts on the Kingdom of Sweden
pursuant to its rules in Subchapter 26I. The Commission believes
Subchapter 26D and Subchapter 26I each 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).\11\
---------------------------------------------------------------------------
\11\ 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 \12\ and Rule 17Ad-22(e)(1) thereunder.\13\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1(b)(3)(F).
\13\ 17 CFR 240.17Ad-22(e)(1).
---------------------------------------------------------------------------
It is therefore ordered pursuant to section 19(b)(2) of the Act
\14\ that the proposed rule change (SR-ICC-2023-010), be, and hereby
is, approved.\15\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78s(b)(2).
\15\ 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.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-17977 Filed 8-21-23; 8:45 am]
BILLING CODE 8011-01-P
