80 FR 13055 - Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Revise the ICC Treasury Operations Policies and Procedures
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 48 (March 12, 2015)
Federal Register Volume 80, Issue 48 (March 12, 2015)
| Page Range | 13055-13057 | |
| FR Document | 2015-05608 |
[Federal Register Volume 80, Number 48 (Thursday, March 12, 2015)] [Notices] [Pages 13055-13057] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-05608] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 74456; File No. SR-ICC-2015-002] Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Revise the ICC Treasury Operations Policies and Procedures March 6, 2015. I. Introduction On January 6, 2015 ICE Clear Credit LLC (``ICC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change SR-ICC-2015-002 pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The proposed rule change was published for comment in the Federal Register on January 23, 2015.\3\ The Commission did not receive any comments. 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\ Securities Exchange Act Release No. 34-74084 (Jan. 16, 2015), 80 FR 3691 (January 23, 2015) (File No. SR-ICC-2015-002). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change ICC has proposed revising its Treasury Operations Policies and Procedures to provide for the use of a Federal Reserve Account, to provide for the use of a committed repurchase (``repo'') facility and to provide for USD and Euro investment guidelines for use by outside investment managers. ICC has stated that it has applied for a Federal Reserve Account to hold both USD cash and US Treasuries and that, in its application, it requested separate accounts for house origin funds and customer origin funds. ICC has represented that, if it is approved for a [[Page 13056]] single account origin, it will utilize the Federal Reserve Accounts to hold house collateral, and customer collateral will continue to be held in commercial banks. ICC has represented that, if it is approved for an additional account origin, it will utilize the second origin to hold customer collateral at the Federal Reserve. ICC proposes to use the Federal Reserve Account(s) as a depository account, in which cash will be consolidated on a daily basis and held overnight. ICC will continue using its commercial bank accounts for Clearing Participant money movements, and the net excess/deficit will be deposited to/withdrawn from the Federal Reserve cash Account as necessary. ICC proposes to use a Federal Reserve securities Account as a custody account to hold US Treasuries deposited by Clearing Participants with ICC's commercial banks. Additionally, ICC has proposed revising its Treasury Operations Policies and Procedures to provide for use of a committed repo facility. ICC represents that it has established a committed repo facility that will allow ICC to consider US Treasury securities deposited at ICC as an additional qualifying liquidity resource, and the facility can be used to convert US Treasuries into cash when the sale of pledged securities needed for liquidity cannot be settled on a timely or same-day basis. Specifically, ICC represents that the facility is to be used to generate temporary liquidity through the sale and agreement to repurchase securities pledged by ICC Clearing Participants to satisfy their Initial Margin and Guaranty Fund requirements. According to ICC, the facility will include counterparties that are banks and/or broker dealers (which may include ICC Clearing Participants and/or their affiliates) that each provide a committed repo line to ICC, and committed repo will be subject to a haircut which will be the greater of 5% or the haircut that central banks employ for repo transactions using the same or similar purchased securities. Under ICC's proposal, the committed repo facility can be used on an open or overnight basis. The open repo will be closed as soon as the ICC Treasury Department (``ICC Treasury'') can facilitate the sale and settlement of the securities involved in the repo transaction. USD repo will be settled delivery versus payment (``DVP'') on a bilateral basis. In order to initiate a committed repo transaction, ICC Treasury can send an email to the counterparty with a list of the securities that will be delivered. The counterparty will reply confirming the trade and providing the ``purchase amount'' of the repo transaction. The purchase amount will be equal to the mark-to-market (``MTM'') of the securities less the haircut. The repo details will then be sent to ICC's custodian for settlement. ICC Treasury will monitor bank activity to ensure settlement is complete. Once ICC Treasury has arranged for the ultimate sale of the securities involved in the repo transaction, it will close- out the repo transaction(s). Finally, ICC has proposed revising its Treasury Operations Policies and Procedures to provide for the engagement of outside investment managers to invest guaranty fund and margin cash pursuant to ICC's USD and Euro investment guidelines. ICC has proposed extending its current investment guidelines set forth in in the ICC Treasury Operations Policies and Procedures to apply to outside investment managers. ICC represents that its cash investment guidelines for USD and Euro cash provide for the investment of cash in overnight reverse repo with high quality sovereign debt as collateral. Under ICC's proposal, if the investment manager cannot place 100% of the allocated cash in overnight reverse repo, the investment guidelines permit the investment manager to make backup investments in term reverse repo and direct investment in high quality sovereign debt. With respect to Euro cash, ICC proposes that investment in reverse repo transactions and non-US sovereign debt will be utilized only with respect to house origin cash, and shall not be utilized with respect to customer origin cash pursuant to Commodity Futures Trading Commission regulations. ICC's proposed USD investment guidelines provide for use by outside investment managers with respect to USD cash that is not otherwise invested pursuant to the ICC Treasury Operations Policies and Procedures. ICC represents that these revisions to the Treasury Operations Policies and Procedures do not require any operational changes. III. Discussion and Commission Findings Section 19(b)(2)(C) of the Act \4\ directs the Commission to approve a proposed rule change of a self-regulatory organization if the Commission finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such self-regulatory organization. Section 17A(b)(3)(F) of the Act \5\ requires, among other things, that the rules of a clearing agency are designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions, to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78s(b)(2)(C). \5\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- The Commission finds that ICC's proposed revisions to its Treasury Operations Policies & Procedures is consistent with the requirements of Section 17A of the Act \6\ and regulations thereunder applicable to it, including the standards under Rule 17Ad-22.\7\ The proposed rule change is designed to facilitate use of Federal Reserve accounts, authorize an additional liquidity resource and authorize use of an outside investment manager to invest guaranty fund and margin cash pursuant to ICC's investment guidelines. The Commission believes that the proposal is designed to promote the prompt and accurate clearance and settlement of securities transactions and derivative agreements, contracts and transactions cleared by ICC, assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible and, in general, to protect investors and the public interest, consistent with Section 17A(b)(3)(F) of the Act.\8\ Further, the Commission believes that the proposal is reasonably designed to enhance ICC's ability to hold assets in a manner that minimizes risk of loss or of delay in its access to them and invest assets with minimal credit, market and liquidity risks, consistent with Rule 17Ad-22(d)(3).\9\ --------------------------------------------------------------------------- \6\ 15 U.S.C. 78q-1. \7\ 17 CFR 240.17Ad-22. \8\ 15 U.S.C. 78q-1(b)(3)(F). \9\ 17 CFR 240.17Ad-22(d)(3). --------------------------------------------------------------------------- IV. Conclusion On the basis of the foregoing, the Commission finds that the proposal is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act \10\ and the rules and regulations thereunder. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78q-1. --------------------------------------------------------------------------- It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\11\ that the proposed rule change (SR-ICC-2015-002) be, and hereby is, approved.\12\ --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(2). \12\ 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). [[Page 13057]] --------------------------------------------------------------------------- For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ Jill M. Peterson, Assistant Secretary. --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2015-05608 Filed 3-11-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Notices 13055
process and potentially generate temporarily suspend such rule change if identifying information from
additional investor interest in trading it appears to the Commission that such submissions. You should submit only
securities. The extension of the pilot action is necessary or appropriate in the information that you wish to make
period will allow the Commission and public interest, for the protection of available publicly. All submissions
the Exchange to continue to monitor the investors, or otherwise in furtherance of should refer to File Number SR–NYSE–
Program for its potential effects on the purposes of the Act. If the 2015–10, and should be submitted on or
public price discovery, and on the Commission takes such action, the before April 2, 2015.
broader market structure. Commission shall institute proceedings For the Commission, by the Division of
under Section 19(b)(2)(B) 13 of the Act to Trading and Markets, pursuant to delegated
B. Self-Regulatory Organization’s determine whether the proposed rule
Statement on Burden on Competition authority.14
change should be approved or Jill M. Peterson,
The Exchange does not believe that disapproved. Assistant Secretary.
the proposed rule change will impose
IV. Solicitation of Comments [FR Doc. 2015–05606 Filed 3–11–15; 8:45 am]
any burden on competition that is not
necessary or appropriate in furtherance Interested persons are invited to BILLING CODE 8011–01–P
of the purposes of the Act. The submit written data, views, and
proposed rule change simply extends an arguments concerning the foregoing,
including whether the proposed rule SECURITIES AND EXCHANGE
established pilot program for an
change is consistent with the Act. COMMISSION
additional six months, thus allowing the
Retail Liquidity Program to enhance Comments may be submitted by any of [Release No. 74456; File No. SR–ICC–2015–
competition for retail order flow and the following methods: 002]
contribute to the public price discovery Electronic Comments
process. Self-Regulatory Organizations; ICE
• Use the Commission’s Internet Clear Credit LLC; Order Approving
C. Self-Regulatory Organization’s comment form (http://www.sec.gov/ Proposed Rule Change To Revise the
Statement on Comments on the rules/sro.shtml); or ICC Treasury Operations Policies and
Proposed Rule Change Received From • Send an email to rule-comments@ Procedures
Members, Participants, or Others sec.gov. Please include File Number SR–
NYSE–2015–10 on the subject line. March 6, 2015.
No written comments were solicited
or received with respect to the proposed Paper Comments I. Introduction
rule change. • Send paper comments in triplicate On January 6, 2015 ICE Clear Credit
III. Date of Effectiveness of the to Secretary, Securities and Exchange LLC (‘‘ICC’’) filed with the Securities
Proposed Rule Change and Timing for Commission, 100 F Street NE., and Exchange Commission
Commission Action Washington, DC 20549–1090. (‘‘Commission’’) the proposed rule
All submissions should refer to File change SR–ICC–2015–002 pursuant to
The Exchange has filed the proposed Section 19(b)(1) of the Securities
rule change pursuant to Section Number SR–NYSE–2015–10. This file
number should be included on the Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19(b)(3)(A)(iii) of the Act 9 and Rule 19b–4 thereunder.2 The proposed rule
19b–4(f)(6) thereunder.10 Because the subject line if email is used. To help the
Commission process and review your change was published for comment in
proposed rule change does not: (i) the Federal Register on January 23,
Significantly affect the protection of comments more efficiently, please use
only one method. The Commission will 2015.3 The Commission did not receive
investors or the public interest; (ii) any comments. For the reasons
impose any significant burden on post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ discussed below, the Commission is
competition; and (iii) become operative approving the proposed rule change.
prior to 30 days from the date on which rules/sro.shtml). Copies of the
it was filed, or such shorter time as the submission, all subsequent II. Description of the Proposed Rule
Commission may designate, if amendments, all written statements Change
consistent with the protection of with respect to the proposed rule
change that are filed with the ICC has proposed revising its
investors and the public interest, the Treasury Operations Policies and
proposed rule change has become Commission, and all written
communications relating to the Procedures to provide for the use of a
effective pursuant to Section 19(b)(3)(A) Federal Reserve Account, to provide for
of the Act and Rule 19b–4(f)(6)(iii) proposed rule change between the
Commission and any person, other than the use of a committed repurchase
thereunder. (‘‘repo’’) facility and to provide for USD
A proposed rule change filed under those that may be withheld from the
public in accordance with the and Euro investment guidelines for use
Rule 19b–4(f)(6) 11 normally does not by outside investment managers.
become operative prior to 30 days after provisions of 5 U.S.C. 552, will be
available for Web site viewing and ICC has stated that it has applied for
the date of the filing. However, pursuant a Federal Reserve Account to hold both
to Rule 19b4(f)(6)(iii),12 the Commission printing in the Commission’s Public
Reference Room, 100 F Street NE., USD cash and US Treasuries and that,
may designate a shorter time if such in its application, it requested separate
action is consistent with the protection Washington, DC 20549 on official
business days between the hours of accounts for house origin funds and
asabaliauskas on DSK5VPTVN1PROD with NOTICES
of investors and the public interest. customer origin funds. ICC has
At any time within 60 days of the 10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for represented that, if it is approved for a
filing of such proposed rule change, the
Commission summarily may inspection and copying at the principal
14 17 CFR 200.30–3(a)(12).
offices of the Exchange. All comments 1 15 U.S.C. 78s(b)(1).
9 15 U.S.C. 78s(b)(3)(A)(iii). received will be posted without change; 2 17 CFR 240.19b–4.
10 17 CFR 240.19b–4(f)(6). the Commission does not edit personal 3 Securities Exchange Act Release No. 34–74084
11 17 CFR 240.19b–4(f)(6).
(Jan. 16, 2015), 80 FR 3691 (January 23, 2015) (File
12 17 CFR 240.19b–4(f)(6)(iii). 13 15 U.S.C. 78s(b)(2)(B). No. SR–ICC–2015–002).
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![Federal Register / Vol. 80, No. 48 / Thursday, March 12, 2015 / Notices 13057
For the Commission, by the Division of granting the same relief sought by Fund will consist of securities and other
Trading and Markets, pursuant to delegated applicants, as that order may be assets selected and managed by its
authority.13 amended from time to time (‘‘Reference Manager or Subadviser (as defined
Jill M. Peterson, Order’’).1 below) to pursue the Fund’s investment
Assistant Secretary. Filing Dates: The application was objective.
[FR Doc. 2015–05608 Filed 3–11–15; 8:45 am] filed on January 15, 2015, and amended 2. The Manager, a Delaware
BILLING CODE 8011–01–P on February 23, 2015. corporation, will be the investment
Hearing or Notification of Hearing: An manager to the Initial Funds. A Manager
order granting the requested relief will (as defined below) will serve as
SECURITIES AND EXCHANGE be issued unless the Commission orders investment manager to each Fund. The
COMMISSION a hearing. Interested persons may Manager is, and any other Manager will
[Investment Company Act Release No. request a hearing by writing to the be, registered as an investment adviser
31498; 812–14417] Commission’s Secretary and serving under the Investment Advisers Act of
applicants with a copy of the request, 1940 (‘‘Advisers Act’’). The Manager
American Beacon NextShares Trust, et personally or by mail. Hearing requests and the Trust may retain one or more
al.; Notice of Application should be received by the Commission subadvisers (each a ‘‘Subadviser’’) to
by 5:30 p.m. on March 31, 2015, and manage the portfolios of the Funds. Any
March 6, 2015. Subadviser will be registered, or not
should be accompanied by proof of
AGENCY: Securities and Exchange service on applicants, in the form of an subject to registration, under the
Commission (‘‘Commission’’). affidavit or, for lawyers, a certificate of Advisers Act.
ACTION: Notice of an application for an service. Pursuant to rule 0–5 under the 3. The Distributor is a Delaware
order under section 6(c) of the Act, hearing requests should state the limited liability company and a broker-
Investment Company Act of 1940 nature of the writer’s interest, any facts dealer registered under the Securities
(‘‘Act’’) for an exemption from sections bearing upon the desirability of a Exchange Act of 1934 and will act as the
2(a)(32), 5(a)(1), 22(d) and 22(e) of the hearing on the matter, the reason for the principal underwriter of Shares of the
Act and rule 22c–1 under the Act, under request, and the issues contested. Funds. Applicants request that the
sections 6(c) and 17(b) of the Act for an Persons who wish to be notified of a requested relief apply to any distributor
exemption from sections 17(a)(1) and hearing may request notification by of Shares, whether affiliated or
(a)(2) of the Act, and under section writing to the Commission’s Secretary. unaffiliated with the Manager (included
12(d)(1)(J) of the Act for an exemption in the term ‘‘Distributor’’). Any
ADDRESSES: The Commission: Brent J.
from sections 12(d)(1)(A) and (B) of the Distributor will comply with the terms
Fields, Secretary, U.S. Securities and
Act. and conditions of the Order.
Exchange Commission, 100 F Street NE.,
Applicants: American Beacon Washington, DC 20549–1090. Applicants’ Requested Exemptive Relief
NextShares Trust (the ‘‘Trust’’), Applicants: American Beacon
4. Applicants seek the requested
American Beacon Advisors, Inc. (the NextShares Trust and American Beacon
Order under section 6(c) of the Act for
‘‘Manager’’) and Foreside Fund Advisors, Inc., 220 East Las Colinas
an exemption from sections 2(a)(32),
Services, LLC (the ‘‘Distributor’’). Blvd., Suite 1200, Irving, TX 75039, and
5(a)(1), 22(d) and 22(e) of the Act and
Summary of Application: Applicants Foreside Fund Services, LLC, Three
rule 22c–1 under the Act, under
request an order (‘‘Order’’) that permits: Canal Plaza, Suite 100, Portland, ME
sections 6(c) and 17(b) of the Act for an
(a) Actively managed series of certain 04101.
exemption from sections 17(a)(1) and
open-end management investment FOR FURTHER INFORMATION CONTACT: Jean 17(a)(2) of the Act, and under section
companies to issue shares (‘‘Shares’’) E. Minarick, Senior Counsel, or Daniele 12(d)(1)(J) of the Act for an exemption
redeemable in large aggregations only Marchesani, Branch Chief, at (202) 551– from sections 12(d)(1)(A) and (B) of the
(‘‘Creation Units’’); (b) secondary market 6821 (Division of Investment Act. The requested Order would permit
transactions in Shares to occur at the Management, Chief Counsel’s Office). applicants to offer exchange-traded
next-determined net asset value plus or
SUPPLEMENTARY INFORMATION: The managed funds. Because the relief
minus a market-determined premium or
following is a summary of the requested is the same as the relief
discount that may vary during the
application. The complete application granted by the Commission under the
trading day; (c) certain series to pay
may be obtained via the Commission’s Reference Order and because the
redemption proceeds, under certain
Web site by searching for the file Manager has entered into, or anticipates
circumstances, more than seven days
number, or for an applicant using the entering into, a licensing agreement
from the tender of Shares for
Company name box, at http:// with Eaton Vance Management, or an
redemption; (d) certain affiliated
www.sec.gov/search/search.htm or by affiliate thereof in order to offer
persons of the series to deposit
calling (202) 551–8090. exchange-traded managed funds,2 the
securities into, and receive securities
Order would incorporate by reference
from, the series in connection with the Applicants the terms and conditions of the
purchase and redemption of Creation
1. The Trust will be registered as an Reference Order.
Units; (e) certain registered management 5. Applicants request that the Order
open-end management investment
investment companies and unit apply to the Initial Funds and to any
company under the Act and is a
investment trusts outside of the same
asabaliauskas on DSK5VPTVN1PROD with NOTICES
business trust organized under the laws other existing or future open-end
group of investment companies as the management investment company or
of Massachusetts. Applicants seek relief
series to acquire Shares; and (f) certain series thereof that: (a) Is advised by the
with respect to five Funds (as defined
series to create and redeem Shares in Manager or any entity controlling,
below, and those Funds, the ‘‘Initial
kind in a master-feeder structure. The controlled by, or under common control
Funds’’). The portfolio positions of each
Order would incorporate by reference
terms and conditions of a previous order 1 Eaton Vance Management, et al., Investment 2 Eaton Vance Management has obtained patents
Company Act Rel. Nos. 31333 (Nov. 6, 2014) with respect to certain aspects of the Funds’ method
13 17 CFR 200.30–3(a)(12). (notice) and 31361 (Dec. 2, 2014) (order). of operation as exchange-traded managed funds.
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Document Created: 2018-02-21 09:36:01
Document Modified: 2018-02-21 09:36:01
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 80 FR 13055 |
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