80 FR 20047 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Related to Settlement Finality
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 71 (April 14, 2015)
Federal Register Volume 80, Issue 71 (April 14, 2015)
| Page Range | 20047-20049 | |
| FR Document | 2015-08448 |
[Federal Register Volume 80, Number 71 (Tuesday, April 14, 2015)] [Notices] [Pages 20047-20049] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-08448] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74676; File No. SR-ICC-2015-008] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Related to Settlement Finality April 8, 2015. Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on April 1, 2015, ICE Clear Credit LLC (``ICC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared primarily by ICC. The Commission is publishing this [[Page 20048]] notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the proposed changes is to amend ICC Clearing Rule 401 (``Rule 401'') \3\ in order to provide additional clarity regarding settlement finality with respect to Mark-to-Market Margin (as defined in ICC Rule 401). --------------------------------------------------------------------------- \3\ Pursuant to a telephone call with ICC's internal counsel on April 2, 2015, staff in the Division of Trading and Markets corrected an incorrect reference to ICC Rule 401(b)(ii). ICC intended to refer to ICC Rule 401. --------------------------------------------------------------------------- II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, ICC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. ICC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of these statements. A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change ICC proposes changes to Rule 401 in order to provide additional clarity regarding settlement finality with respect to Mark-to-Market Margin. Specifically, ICC is proposing to add new subsections (k) and (l) to Rule 401. The new subsections are not intended to change any current ICC practices; rather, such changes are intended to provide additional clarity regarding settlement finality with respect to Mark- to-Market Margin. All capitalized terms not defined herein are defined in the ICC Rules. ICC proposes adding language in Rule 401(k) to clarify that each Transfer of Mark-to-Market Margin shall constitute a settlement (within the meaning of U.S. Commodity Futures Trading Commission Rule 39.14 \4\) and shall be final as of the time ICC's accounts are debited or credited with the relevant payment. Further, ICC proposes adding language in Rule 401(l) to state that once settlement of a Transfer of Mark-to-Market Margin in respect of the Margin Requirements for a Mark- to-Market Margin Category is final, the fair value of the outstanding exposures for the relevant Contracts in that Mark-to-Market Margin Category (taking into account the Margin provided in respect of such Margin Requirement) will be reset to zero. Such additional language is consistent with ICC's current practices and is intended to provide further clarity regarding ICC's settlement cycle. --------------------------------------------------------------------------- \4\ 17 CFR 39.14(a). --------------------------------------------------------------------------- Section 17A(b)(3)(F) of the Act \5\ requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions, and to the extent applicable, derivative agreements, contracts and transactions and to comply with the provisions of the Act and the rules and regulations thereunder. ICC believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to ICC, in particular, to section 17(A)(b)(3)(F),\6\ because ICC believes that the proposed rule change will assure the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions. The proposed changes to the ICC Rules provide additional clarity regarding ICC's current settlement cycle. ICC believes the proposed revisions provide further clarity and transparency in the ICC Rules. ICC believes clarity and transparency in its Rules is of value to the market in order to provide a comprehensive understanding of ICC's operations. As such, the proposed rule change is designed to promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions within the meaning of section 17A(b)(3)(F) \7\ of the Act. --------------------------------------------------------------------------- \5\ 15 U.S.C. 78q-1(b)(3)(F). \6\ Id. \7\ Id. --------------------------------------------------------------------------- B. Self-Regulatory Organization's Statement on Burden on Competition ICC does not believe the proposed rule change would have any impact, or impose any burden, on competition. The changes, which clarify aspects of ICC's settlement cycle, result in no operational changes and apply uniformly across all market participants. Therefore, ICC does not believe the proposed rule change imposes any burden on competition that is inappropriate in furtherance of the purposes of the Act. C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the proposed rule change have not been solicited or received. ICC will notify the Commission of any written comments received by ICC. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-ICC-2015-008 on the subject line. 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-ICC-2015-008. 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 Web site (http://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 [[Page 20049]] those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site 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 such filings also will be available for inspection and copying at the principal office of ICE Clear Credit and on ICE Clear Credit's Web site at https://www.theice.com/clear-credit/regulation. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ICC-2015-008 and should be submitted on or before May 5, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\8\ --------------------------------------------------------------------------- \8\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2015-08448 Filed 4-13-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20047
general, to protect investors and the B. Self-Regulatory Organization’s only one method. The Commission will
public interest. Specifically, the Statement on Burden on Competition post all comments on the Commission’s
Exchange believes that the proposed The Exchange does not believe that Internet Web site (http://www.sec.gov/
restructuring of Rule 13, to group the proposed rule change will impose rules/sro.shtml). Copies of the
existing order types to align by any burden on competition that is not submission, all subsequent
functionality, would remove necessary or appropriate in furtherance amendments, all written statements
impediments to and perfect the of the purposes of the Act. The with respect to the proposed rule
mechanism of a free and open market by proposed change is not designed to change that are filed with the
ensuring that members, regulators, and address any competitive issue but rather Commission, and all written
the public can more easily navigate the would re-structure Rule 13 and remove communications relating to the
Exchange’s rulebook and better rule text that relates to functionality that proposed rule change between the
understand the order types available for is no longer operative, thereby reducing Commission and any person, other than
trading on the Exchange. In addition, confusion and making the Exchange’s those that may be withheld from the
the Exchange believes that the proposed public in accordance with the
rules easier to navigate.
revisions to Rule 13 and related provisions of 5 U.S.C. 552, will be
conforming changes to Rule 501(d)(2)— C. Self-Regulatory Organization’s available for Web site viewing and
Equities promote clarity regarding Statement on Comments on the printing in the Commission’s Public
existing functionality that has been Proposed Rule Change Received From Reference Room, 100 F Street NE.,
approved in prior rule filings, but which Members, Participants, or Others Washington, DC 20549, on official
may not have been codified in rule No written comments were solicited business days between the hours of
text.23 Moreover, the Exchange believes or received with respect to the proposed 10:00 a.m. and 3:00 p.m. Copies of the
that moving rule text defining a Routing rule change. filing will also be available for
inspection and copying at the NYSE’s
Broker to Rule 17—Equities represents a III. Date of Effectiveness of the principal office and on its Internet Web
more logical location for such Proposed Rule Change and Timing for site at www.nyse.com. All comments
definition, thereby making it easier for Commission Action received will be posted without change;
market participants to navigate
Within 45 days of the date of the Commission does not edit personal
Exchange rules. Likewise, the Exchange
publication of this notice in the Federal identifying information from
believes the proposed changes to ‘‘Not submissions. You should submit only
Held Order,’’ to move it to Register or up to 90 days (i) as the
Commission may designate if it finds information that you wish to make
supplementary material .20 to Rule 13 available publicly. All submissions
and revise the rule text to conform with such longer period to be appropriate
and publishes its reasons for so finding should refer to File Number SR–
guidance from FINRA and OATS NYSEMKT–2015–22 and should be
requirements, would remove or (ii) as to which the self-regulatory
organization consents, the Commission submitted on or before May 5, 2015.
impediments to and perfect the
mechanism of a free and open market will: For the Commission, by the Division of
(A) By order approve or disapprove Trading and Markets, pursuant to delegated
and a national market system by authority.24
the proposed rule change, or
applying a uniform definition of not (B) institute proceedings to determine Brent J. Fields,
held instructions across multiple whether the proposed rule change Secretary.
markets, thereby reducing the potential should be disapproved. [FR Doc. 2015–08454 Filed 4–13–15; 8:45 am]
for confusion regarding the meaning of
not held instructions. IV. Solicitation of Comments BILLING CODE 8011–01–P
The Exchange further believes that the Interested persons are invited to
proposed amendment regarding MPL submit written data, views, and SECURITIES AND EXCHANGE
Orders to reject both MPL Orders with arguments concerning the foregoing, COMMISSION
an MTV larger than the size of the order including whether the proposed rule
change is consistent with the Act. [Release No. 34–74676; File No. SR–ICC–
and instructions to partially cancel an 2015–008]
MPL Order that would result in an MTV Comments may be submitted by any of
larger than the size of the order would the following methods: Self-Regulatory Organizations; ICE
remove impediments to and perfect the Electronic Comments Clear Credit LLC; Notice of Filing of
mechanism of a free and open market Proposed Rule Change Related to
and national market system in general • Use the Commission’s Internet
comment form (http://www.sec.gov/ Settlement Finality
because it could potentially reduce the
ability of a member organization from rules/sro.shtml); or April 8, 2015.
• Send an email to rule-comments@ Pursuant to section 19(b)(1) of the
using MPL Orders to bypass contra-side
sec.gov. Please include File Number SR– Securities Exchange Act of 1934
interest that may be larger than the size
NYSEMKT–2015–22 on the subject line. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
of the MPL Order.
Paper Comments notice is hereby given that on April 1,
Finally, the Exchange believes that 2015, ICE Clear Credit LLC (‘‘ICC’’) filed
the proposed changes to Rule 70.25(c)— • Send paper comments in triplicate with the Securities and Exchange
Equities would remove impediments to to Brent J. Fields, Secretary, Securities
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Commission (‘‘Commission’’) the
and perfect the mechanism of a free and and Exchange Commission, 100 F Street proposed rule change as described in
open market and national market system NE., Washington, DC 20549–1090. Items I, II, and III below, which Items
in general because it assures that the All submissions should refer to File have been prepared primarily by ICC.
Exchange’s rules align with the existing Number SR–NYSEMKT–2015–22. This The Commission is publishing this
functionality available at the Exchange file number should be included on the
for d-Quotes. subject line if email is used. To help the 24 17 CFR 200.30–3(a)(12).
Commission process and review your 1 15 U.S.C. 78s(b)(1).
23 See supra nn. 13–18. comments more efficiently, please use 2 17 CFR 240.19b–4.
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![Federal Register / Vol. 80, No. 71 / Tuesday, April 14, 2015 / Notices 20049
those that may be withheld from the Other matters relating to enforcement II. Self-Regulatory Organization’s
public in accordance with the proceedings. Statement of the Purpose of, and
provisions of 5 U.S.C. 552, will be At times, changes in Commission Statutory Basis for, the Proposed Rule
available for Web site viewing and priorities require alterations in the Change
printing in the Commission’s Public scheduling of meeting items. In its filing with the Commission, the
Reference Room, 100 F Street NE., self-regulatory organization included
Washington, DC 20549, on official For further information and to
ascertain what, if any, matters have been statements concerning the purpose of,
business days between the hours of and basis for, the proposed rule change
10:00 a.m. and 3:00 p.m. Copies of such added, deleted or postponed, please
contact the Office of the Secretary at and discussed any comments it received
filings also will be available for on the proposed rule change. The text
inspection and copying at the principal (202) 551–5400.
of those statements may be examined at
office of ICE Clear Credit and on ICE Dated: April 9, 2015. the places specified in Item IV below.
Clear Credit’s Web site at https:// Brent J. Fields, The Exchange has prepared summaries,
www.theice.com/clear-credit/regulation. Secretary. set forth in sections A, B, and C below,
All comments received will be posted [FR Doc. 2015–08630 Filed 4–10–15; 4:15 pm] of the most significant parts of such
without change; the Commission does BILLING CODE 8011–01–P statements.
not edit personal identifying
information from submissions. You A. Self-Regulatory Organization’s
should submit only information that Statement of the Purpose of, and the
SECURITIES AND EXCHANGE
you wish to make available publicly. All Statutory Basis for, the Proposed Rule
COMMISSION
submissions should refer to File Change
Number SR–ICC–2015–008 and should 1. Purpose
[Release No. 34–74677; File No. SR–
be submitted on or before May 5, 2015. NYSEMKT–2015–23] The Exchange proposes to adopt a
For the Commission, by the Division of principles-based approach to prohibit
Trading and Markets, pursuant to delegated Self-Regulatory Organizations; NYSE the misuse of material nonpublic
authority.8 MKT, LLC; Notice of Filing of Proposed information by Specialists and e-
Brent J. Fields, Rule Change Adopting a Principles- Specialists by deleting Rule 927.3NY
Secretary. Based Approach To Prohibit the and section (f) of Rule 927.5NY. In so
[FR Doc. 2015–08448 Filed 4–13–15; 8:45 am] Misuse of Material Nonpublic doing, the Exchange would harmonize
BILLING CODE 8011–01–P
Information by Specialists and e- its rules governing Specialists, e-
Specialists by Deleting Rule 927.3NY Specialists and Market Makers relating
and Section (f) of Rule 927.5NY to protecting against the misuse of
SECURITIES AND EXCHANGE April 8, 2015. material, non-public information. The
COMMISSION Exchange believes that Rules 927.3NY
Pursuant to Section 19(b)(1) 1 of the and 927.5NY(f) are no longer necessary
Sunshine Act Meeting Securities Exchange Act of 1934 (the because all ATP Holders, including
‘‘Act’’) 2 and Rule 19b–4 thereunder,3 Specialists and e-Specialists, are subject
Notice is hereby given, pursuant to
notice is hereby given that, on March to the Exchange’s general principles-
the provisions of the Government in the
26, 2015, NYSE MKT LLC (the based requirements governing the
Sunshine Act, Public Law 94–409, that
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with protection against the misuse of
the Securities and Exchange
the Securities and Exchange material, non-public information,
Commission will hold a Closed Meeting
Commission (the ‘‘Commission’’) the pursuant to Exchange Rules, Part 1—
on Thursday, April 16, 2015 at 2:00 p.m.
Commissioners, Counsel to the proposed rule change as described in General Rules, Rule 3 (General
Commissioners, the Secretary to the Items I, II, and III below, which Items Prohibitions and Duty to Report),
Commission, and recording secretaries have been prepared by the self- section (j) (‘‘Rule 3(j)’’), which obviates
will attend the Closed Meeting. Certain regulatory organization. The the need for separately-prescribed
staff members who have an interest in Commission is publishing this notice to requirements for a subset of market
the matters also may be present. solicit comments on the proposed rule participants on the Exchange.
The General Counsel of the change from interested persons.
Background
Commission, or her designee, has I. Self-Regulatory Organization’s
certified that, in her opinion, one or Statement of the Terms of Substance of The Exchange has three classes of
more of the exemptions set forth in 5 the Proposed Rule Change registered market makers. Pursuant to
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) Rule 920NY(a), a Market Maker is an
and 17 CFR 200.402(a)(3), (5), (7), 9(ii) The Exchange proposes to adopt a ATP holder that is registered with the
and (10), permit consideration of the principles-based approach to prohibit Exchange for the purpose of submitting
scheduled matter at the Closed Meeting. the misuse of material nonpublic quotes electronically and making
Commissioner Stein, as duty officer, information by Specialists and e- transactions as a dealer-specialist
voted to consider the items listed for the Specialists by deleting Rule 927.3NY verbally on the Trading Floor, through
Closed Meeting in closed session, and and section (f) of Rule 927.5NY. The the System from the Trading Floor, or
remotely from off the Trading Floor. As
asabaliauskas on DSK5VPTVN1PROD with NOTICES
determined that no earlier notice thereof text of the proposed rule change is
was possible. available on the Exchange’s Web site at the rule further provides, a Market
The subject matter of the Closed www.nyse.com, at the principal office of Maker can be either a Remote Market
Meeting will be: the Exchange, and at the Commission’s Maker, a Floor Market Maker, a
Institution of injunctive actions; Public Reference Room. Specialist, or an e-Specialist. All Market
Institution and settlement of Makers are subject to the requirements
administrative proceedings; and 1 15 U.S.C.78s(b)(1). of Rule 925NY and 925.1NY, which set
2 15 U.S.C. 78a. forth the obligations of Market Makers,
8 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. particularly relating to quoting.
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Document Created: 2015-12-18 11:09:42
Document Modified: 2015-12-18 11:09:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 20047 |
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