80_FR_20350 80 FR 20278 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change To Provide for the Clearance of Additional Western European Sovereign Single Names

80 FR 20278 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change To Provide for the Clearance of Additional Western European Sovereign Single Names

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 72 (April 15, 2015)

Page Range20278-20280
FR Document2015-08542

Federal Register, Volume 80 Issue 72 (Wednesday, April 15, 2015)
[Federal Register Volume 80, Number 72 (Wednesday, April 15, 2015)]
[Notices]
[Pages 20278-20280]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-08542]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74687; File No. SR-ICC-2015-007]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing of Proposed Rule Change To Provide for the Clearance of 
Additional Western European Sovereign Single Names

April 9, 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 7, 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 
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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of the proposed rule change is to adopt rules that will 
provide the basis for ICC to clear additional credit default swap 
contracts. Specifically, ICC is proposing to amend Subchapter 26I of 
its rules to provide for the clearance of additional Standard Western 
European Sovereign CDS contracts (collectively, ``SWES Contracts''). 
ICC currently clears six SWES Contracts: the Republic of Ireland, the 
Italian Republic, the Portuguese Republic, the Kingdom of Spain, the 
Kingdom of Belgium, and the Republic of Austria. The proposed changes 
to the ICC Rules would provide for the clearance of additional SWES 
Contracts, specifically the Kingdom of the Netherlands, the Republic of 
Finland, the Kingdom of Sweden, and the Kingdom of Denmark.

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

    The purpose of the proposed rule change is to adopt rules that will 
provide the basis for ICC to clear additional credit default swap 
contracts. ICC currently clears six SWES Contracts: the Republic of 
Ireland, the Italian Republic, the Portuguese Republic, the Kingdom of 
Spain, the Kingdom of Belgium, and the Republic of Austria. ICC 
proposes amending Subchapter 26I of its Rules to provide for the 
clearance of additional SWES Contracts, specifically the Kingdom of the 
Netherlands, the Republic of Finland, the Kingdom of Sweden, and the 
Kingdom of Denmark. ICC plans to offer these additional SWES Contracts 
on the 2003 and 2014 ISDA Credit Derivatives Definitions. The addition 
of these SWES Contracts will benefit the market for credit default 
swaps by providing market participants the benefits of clearing, 
including reduction in counterparty risk and safeguarding of margin 
assets pursuant to clearing house rules.
    These additional SWES Contracts have terms consistent with the 
other SWES Contracts approved for clearing at ICC and governed by 
Subchapter 26I of the ICC Rules, namely the Republic of

[[Page 20279]]

Ireland, the Italian Republic, the Portuguese Republic, the Kingdom of 
Spain, the Kingdom of Belgium, and the Republic of Austria. Minor 
revisions to Subchapter 26I (Standard Western European Sovereign 
(``SWES'') Single Name) are made to provide for clearing the additional 
SWES Contracts and described as follows.
    Rule 26I-102 is modified to include the Kingdom of the Netherlands, 
the Republic of Finland, the Kingdom of Sweden, and the Kingdom of 
Denmark in the list of specific Eligible SWES Reference Entities to be 
cleared by ICC.
    ICC's Risk Management Framework has also been revised to provide 
enhancements to the General Wrong Way Risk (``GWWR'') methodology 
related to the clearance of additional SWES Contracts. The proposed 
changes to the ICC Risk Management Framework extend the GWWR framework 
to the portfolio level. Currently, there exists no Clearing 
Participant-level cumulative GWWR requirement incorporated in the Jump-
to-Default calculations. The uncollateralized WWR exposure of a Risk 
Factor needs to exceed its corresponding WWR threshold in order to 
trigger WWR collateralization. The proposed enhancement is introduced 
to account for the potential accumulation of portfolio WWR through Risk 
Factor specific WWR exposures. Under the proposed approach, if the 
cumulative uncollateralized exposure exceeds a pre-determined portfolio 
GWWR threshold, the amount above the threshold is collateralized.
    Section 17A(b)(3)(F) of the Act \3\ 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. These contracts are similar to the SWES 
Contracts currently cleared by ICC, and the additional SWES Contracts 
will be cleared pursuant to ICC's existing clearing arrangements and 
related financial safeguards, protections and risk management 
procedures, except as described herein. The additional SWES Contracts 
will allow market participants an increased ability to manage risk. ICC 
believes that acceptance of the new contracts, on the terms and 
conditions set out in the ICC Rules, is consistent with the prompt and 
accurate clearance of and settlement of securities transactions and 
derivative agreements, contracts and transactions cleared by ICC, the 
safeguarding of securities and funds in the custody or control of ICC, 
and the protection of investors and the public interest, within the 
meaning of Section 17A(b)(3)(F) of the Act.\4\ ICC performed a 
comprehensive risk analysis related to the clearing of additional SWES 
Contracts and identified the potential for uncollateralized GWWR 
exposure as a new risk and accommodated for this risk in the ICC Risk 
Management Framework, as discussed herein. ICC identified no additional 
risk or systemic risk concerns introduced by clearing additional SWES 
Contracts, not accounted for by ICC's existing risk management 
procedures. As such, clearing the additional SWES Contracts is 
consistent with the requirement of promoting and protecting the public 
interest in Section 17A(b)(3)(F).\5\
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    \3\ 15 U.S.C. 78q-1(b)(3)(F).
    \4\ 15 U.S.C. 78q-1(b)(3)(F).
    \5\ Id.
---------------------------------------------------------------------------

    Clearing of the additional SWES Contracts will also satisfy the 
requirements of Rule 17Ad-22.\6\ In particular, in terms of financial 
resources, ICC will apply its existing initial margin methodology to 
the additional contracts, with enhancements to the GWWR methodology 
discussed above. ICC believes that this model will provide sufficient 
initial margin requirements to cover its credit exposure to its 
clearing members from clearing such contracts, consistent with the 
requirements of Rule 17Ad-22(b)(2).\7\ In addition, ICC believes its 
Guaranty Fund, under its existing methodology, will, together with the 
required initial margin, provide sufficient financial resources to 
support the clearing of the additional contracts consistent with the 
requirements of Rule 17Ad-22(b)(3).\8\ ICC also believes that its 
existing operational and managerial resources will be sufficient for 
clearing of the additional contracts, consistent with the requirements 
of Rule 17Ad-22(d)(4),\9\ as the new contracts are substantially the 
same from an operational perspective as existing contracts. Similarly, 
ICC will use its existing settlement procedures and account structures 
for the new contracts, consistent with the requirements of Rule 17Ad-
22(d)(5), (12) and (15) \10\ as to the finality and accuracy of its 
daily settlement process and avoidance of the risk to ICC of settlement 
failures. ICC determined to accept the additional SWES Contracts for 
clearing in accordance with its governance process, which included 
review of the contracts and related risk management considerations (and 
the enhancements to the GWWR methodology discussed herein) by the ICC 
Risk Committee and approval by its Board. These governance arrangements 
are consistent with the requirements of Rule 17Ad-22(d)(8).\11\ 
Finally, ICC will apply its existing default management policies and 
procedures for the additional SWES Contracts. ICC believes that these 
procedures allow for it to take timely action to contain losses and 
liquidity pressures and to continue meeting its obligations in the 
event of clearing member insolvencies or defaults in respect of the 
additional single names, in accordance with Rule 17Ad-22(d)(11).\12\
---------------------------------------------------------------------------

    \6\ 17 CFR 240.17Ad-22.
    \7\ 17 CFR 240.17Ad-22(b)(2).
    \8\ 17 CFR 240.17Ad-22(b)(3).
    \9\ 17 CFR 240.17Ad-22(d)(4).
    \10\ 17 CFR 240.17Ad-22(d)(5), (12) and (15).
    \11\ 17 CFR 240.17Ad-22(d)(8).
    \12\ 17 CFR 240.17Ad-22(d)(11).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The additional SWES Contracts will be available to all ICC 
Participants for clearing. The clearing of these additional SWES 
Contracts by ICC does not preclude the offering of the additional SWES 
Contracts for clearing by other market participants. Accordingly, ICC 
does not believe that clearance of the additional SWES Contracts will 
impose any burden on competition not necessary or appropriate 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 the proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

[[Page 20280]]

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 Comments

     Use 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-2015-007 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-2015-007. 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 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 will also 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-2015-007 
and should be submitted on or before May 6, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Brent J. Fields,
Secretary.
[FR Doc. 2015-08542 Filed 4-14-15; 8:45 am]
 BILLING CODE 8011-01-P



                                              20278                         Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices

                                              III. Date of Effectiveness of the                       Commission and any person, other than                 Specifically, ICC is proposing to amend
                                              Proposed Rule Change and Timing for                     those that may be withheld from the                   Subchapter 26I of its rules to provide for
                                              Commission Action                                       public in accordance with the                         the clearance of additional Standard
                                                 The foregoing rule change is effective               provisions of 5 U.S.C. 552, will be                   Western European Sovereign CDS
                                              upon filing pursuant to Section                         available for Web site viewing and                    contracts (collectively, ‘‘SWES
                                              19(b)(3)(A) 7 of the Act and                            printing in the Commission’s Public                   Contracts’’). ICC currently clears six
                                              subparagraph (f)(2) of Rule 19b–4 8                     Reference Room, 100 F Street NE.,                     SWES Contracts: the Republic of
                                              thereunder, because it establishes a due,               Washington, DC 20549, on official                     Ireland, the Italian Republic, the
                                              fee, or other charge imposed by the                     business days between the hours of                    Portuguese Republic, the Kingdom of
                                              Exchange.                                               10:00 a.m. and 3:00 p.m. Copies of such               Spain, the Kingdom of Belgium, and the
                                                 At any time within 60 days of the                    filing also will be available for                     Republic of Austria. The proposed
                                              filing of such proposed rule change, the                inspection and copying at the principal               changes to the ICC Rules would provide
                                              Commission summarily may                                office of the Exchange. All comments                  for the clearance of additional SWES
                                              temporarily suspend such rule change if                 received will be posted without change;               Contracts, specifically the Kingdom of
                                              it appears to the Commission that such                  the Commission does not edit personal                 the Netherlands, the Republic of
                                              action is necessary or appropriate in the               identifying information from                          Finland, the Kingdom of Sweden, and
                                              public interest, for the protection of                  submissions. You should submit only                   the Kingdom of Denmark.
                                              investors, or otherwise in furtherance of               information that you wish to make
                                                                                                                                                            II. Self-Regulatory Organization’s
                                              the purposes of the Act. If the                         available publicly. All submissions
                                                                                                                                                            Statement of the Purpose of, and
                                              Commission takes such action, the                       should refer to File Number SR–
                                                                                                                                                            Statutory Basis for, the Proposed Rule
                                              Commission shall institute proceedings                  NYSEMKT–2015–26 and should be
                                                                                                                                                            Change
                                              under Section 19(b)(2)(B) 9 of the Act to               submitted on or before May 6, 2015.
                                              determine whether the proposed rule                                                                              In its filing with the Commission, ICC
                                                                                                        For the Commission, by the Division of
                                              change should be approved or                            Trading and Markets, pursuant to delegated            included statements concerning the
                                              disapproved.                                            authority.10                                          purpose of and basis for the proposed
                                                                                                      Brent J. Fields,                                      rule change and discussed any
                                              IV. Solicitation of Comments                                                                                  comments it received on the proposed
                                                                                                      Secretary.
                                                Interested persons are invited to                                                                           rule change. The text of these statements
                                                                                                      [FR Doc. 2015–08547 Filed 4–14–15; 8:45 am]
                                              submit written data, views and                                                                                may be examined at the places specified
                                                                                                      BILLING CODE 8011–01–P
                                              arguments concerning the foregoing,                                                                           in Item IV below. ICC has prepared
                                              including whether the proposed rule                                                                           summaries, set forth in sections A, B,
                                              change is consistent with the Act.                                                                            and C below, of the most significant
                                                                                                      SECURITIES AND EXCHANGE
                                              Comments may be submitted by any of                                                                           aspects of these statements.
                                                                                                      COMMISSION
                                              the following methods:                                                                                        A. Self-Regulatory Organization’s
                                                                                                      [Release No. 34–74687; File No. SR–ICC–
                                              Electronic Comments                                     2015–007]                                             Statement of the Purpose of, and
                                                                                                                                                            Statutory Basis for, the Proposed Rule
                                                • Use the Commission’s Internet                                                                             Change
                                                                                                      Self-Regulatory Organizations; ICE
                                              comment form (http://www.sec.gov/
                                                                                                      Clear Credit LLC; Notice of Filing of                    The purpose of the proposed rule
                                              rules/sro.shtml); or                                    Proposed Rule Change To Provide for
                                                • Send an email to rule-comments@                                                                           change is to adopt rules that will
                                                                                                      the Clearance of Additional Western                   provide the basis for ICC to clear
                                              sec.gov. Please include File Number SR–
                                                                                                      European Sovereign Single Names                       additional credit default swap contracts.
                                              NYSEMKT–2015–26 on the subject line.
                                                                                                      April 9, 2015.                                        ICC currently clears six SWES
                                              Paper Comments                                                                                                Contracts: the Republic of Ireland, the
                                                                                                         Pursuant to Section 19(b)(1) of the
                                                 • Send paper comments in triplicate                  Securities Exchange Act of 1934                       Italian Republic, the Portuguese
                                              to Brent J. Fields, Secretary, Securities               (‘‘Act’’),1 and Rule 19b–4 thereunder,2               Republic, the Kingdom of Spain, the
                                              and Exchange Commission, 100 F Street                   notice is hereby given that on April 7,               Kingdom of Belgium, and the Republic
                                              NE., Washington, DC 20549.                              2015, ICE Clear Credit LLC (‘‘ICC’’) filed            of Austria. ICC proposes amending
                                              All submissions should refer to File                    with the Securities and Exchange                      Subchapter 26I of its Rules to provide
                                              Number SR–NYSEMKT–2015–26. This                         Commission (‘‘Commission’’) the                       for the clearance of additional SWES
                                              file number should be included on the                   proposed rule change as described in                  Contracts, specifically the Kingdom of
                                              subject line if email is used. To help the              Items I, II, and III below, which Items               the Netherlands, the Republic of
                                              Commission process and review your                      have been prepared primarily by ICC.                  Finland, the Kingdom of Sweden, and
                                              comments more efficiently, please use                   The Commission is publishing this                     the Kingdom of Denmark. ICC plans to
                                              only one method. The Commission will                    notice to solicit comments on the                     offer these additional SWES Contracts
                                              post all comments on the Commission’s                   proposed rule change from interested                  on the 2003 and 2014 ISDA Credit
                                              Internet Web site (http://www.sec.gov/                  persons.                                              Derivatives Definitions. The addition of
                                              rules/sro.shtml). Copies of the                                                                               these SWES Contracts will benefit the
                                              submission, all subsequent                              I. Self-Regulatory Organization’s                     market for credit default swaps by
                                              amendments, all written statements                      Statement of the Terms of Substance of                providing market participants the
                                              with respect to the proposed rule                       the Proposed Rule Change                              benefits of clearing, including reduction
                                              change that are filed with the                             The purpose of the proposed rule                   in counterparty risk and safeguarding of
tkelley on DSK3SPTVN1PROD with NOTICES




                                              Commission, and all written                             change is to adopt rules that will                    margin assets pursuant to clearing house
                                              communications relating to the                          provide the basis for ICC to clear                    rules.
                                              proposed rule change between the                        additional credit default swap contracts.                These additional SWES Contracts
                                                                                                                                                            have terms consistent with the other
                                                7 15 U.S.C. 78s(b)(3)(A).                               10 17 CFR 200.30–3(a)(12).                          SWES Contracts approved for clearing at
                                                8 17 CFR 240.19b–4(f)(2).                               1 15 U.S.C. 78s(b)(1).                              ICC and governed by Subchapter 26I of
                                                9 15 U.S.C. 78s(b)(2)(B).                               2 17 CFR 240.19b–4.                                 the ICC Rules, namely the Republic of


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                                                                                Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices                                            20279

                                              Ireland, the Italian Republic, the                        cleared by ICC, the safeguarding of                     accordance with its governance process,
                                              Portuguese Republic, the Kingdom of                       securities and funds in the custody or                  which included review of the contracts
                                              Spain, the Kingdom of Belgium, and the                    control of ICC, and the protection of                   and related risk management
                                              Republic of Austria. Minor revisions to                   investors and the public interest, within               considerations (and the enhancements
                                              Subchapter 26I (Standard Western                          the meaning of Section 17A(b)(3)(F) of                  to the GWWR methodology discussed
                                              European Sovereign (‘‘SWES’’) Single                      the Act.4 ICC performed a                               herein) by the ICC Risk Committee and
                                              Name) are made to provide for clearing                    comprehensive risk analysis related to                  approval by its Board. These governance
                                              the additional SWES Contracts and                         the clearing of additional SWES                         arrangements are consistent with the
                                              described as follows.                                     Contracts and identified the potential                  requirements of Rule 17Ad–22(d)(8).11
                                                 Rule 26I–102 is modified to include                    for uncollateralized GWWR exposure as                   Finally, ICC will apply its existing
                                              the Kingdom of the Netherlands, the                       a new risk and accommodated for this                    default management policies and
                                              Republic of Finland, the Kingdom of                       risk in the ICC Risk Management                         procedures for the additional SWES
                                              Sweden, and the Kingdom of Denmark                        Framework, as discussed herein. ICC                     Contracts. ICC believes that these
                                              in the list of specific Eligible SWES                     identified no additional risk or systemic               procedures allow for it to take timely
                                              Reference Entities to be cleared by ICC.                  risk concerns introduced by clearing                    action to contain losses and liquidity
                                                 ICC’s Risk Management Framework                        additional SWES Contracts, not                          pressures and to continue meeting its
                                              has also been revised to provide                          accounted for by ICC’s existing risk                    obligations in the event of clearing
                                              enhancements to the General Wrong                         management procedures. As such,                         member insolvencies or defaults in
                                              Way Risk (‘‘GWWR’’) methodology                           clearing the additional SWES Contracts                  respect of the additional single names,
                                              related to the clearance of additional                    is consistent with the requirement of                   in accordance with Rule 17Ad–
                                              SWES Contracts. The proposed changes                      promoting and protecting the public                     22(d)(11).12
                                              to the ICC Risk Management Framework                      interest in Section 17A(b)(3)(F).5
                                              extend the GWWR framework to the                             Clearing of the additional SWES                      B. Self-Regulatory Organization’s
                                              portfolio level. Currently, there exists no               Contracts will also satisfy the                         Statement on Burden on Competition
                                              Clearing Participant-level cumulative                     requirements of Rule 17Ad–22.6 In                         The additional SWES Contracts will
                                              GWWR requirement incorporated in the                      particular, in terms of financial                       be available to all ICC Participants for
                                              Jump-to-Default calculations. The                         resources, ICC will apply its existing                  clearing. The clearing of these
                                              uncollateralized WWR exposure of a                        initial margin methodology to the                       additional SWES Contracts by ICC does
                                              Risk Factor needs to exceed its                           additional contracts, with                              not preclude the offering of the
                                              corresponding WWR threshold in order                      enhancements to the GWWR                                additional SWES Contracts for clearing
                                              to trigger WWR collateralization. The                     methodology discussed above. ICC                        by other market participants.
                                              proposed enhancement is introduced to                     believes that this model will provide                   Accordingly, ICC does not believe that
                                              account for the potential accumulation                    sufficient initial margin requirements to               clearance of the additional SWES
                                              of portfolio WWR through Risk Factor                      cover its credit exposure to its clearing               Contracts will impose any burden on
                                              specific WWR exposures. Under the                         members from clearing such contracts,                   competition not necessary or
                                              proposed approach, if the cumulative                      consistent with the requirements of Rule                appropriate in furtherance of the
                                              uncollateralized exposure exceeds a pre-                  17Ad–22(b)(2).7 In addition, ICC                        purposes of the Act.
                                              determined portfolio GWWR threshold,                      believes its Guaranty Fund, under its
                                              the amount above the threshold is                         existing methodology, will, together                    C. Self-Regulatory Organization’s
                                              collateralized.                                           with the required initial margin, provide               Statement on Comments on the
                                                 Section 17A(b)(3)(F) of the Act 3                                                                              Proposed Rule Change Received From
                                                                                                        sufficient financial resources to support
                                              requires, among other things, that the                                                                            Members, Participants or Others
                                                                                                        the clearing of the additional contracts
                                              rules of a clearing agency be designed to
                                                                                                        consistent with the requirements of Rule                  Written comments relating to the
                                              promote the prompt and accurate
                                                                                                        17Ad–22(b)(3).8 ICC also believes that                  proposed rule change have not been
                                              clearance and settlement of securities
                                                                                                        its existing operational and managerial                 solicited or received. ICC will notify the
                                              transactions and, to the extent
                                                                                                        resources will be sufficient for clearing               Commission of any written comments
                                              applicable, derivative agreements,
                                                                                                        of the additional contracts, consistent                 received by ICC.
                                              contracts, and transactions and to
                                                                                                        with the requirements of Rule 17Ad–
                                              comply with the provisions of the Act                                                                             III. Date of Effectiveness of the
                                                                                                        22(d)(4),9 as the new contracts are
                                              and the rules and regulations                                                                                     Proposed Rule Change and Timing for
                                              thereunder. These contracts are similar                   substantially the same from an
                                                                                                        operational perspective as existing                     Commission Action
                                              to the SWES Contracts currently cleared
                                              by ICC, and the additional SWES                           contracts. Similarly, ICC will use its                    Within 45 days of the date of
                                              Contracts will be cleared pursuant to                     existing settlement procedures and                      publication of this notice in the Federal
                                              ICC’s existing clearing arrangements and                  account structures for the new contracts,               Register or within such longer period
                                              related financial safeguards, protections                 consistent with the requirements of Rule                up to 90 days (i) as the Commission may
                                              and risk management procedures,                           17Ad–22(d)(5), (12) and (15) 10 as to the               designate if it finds such longer period
                                              except as described herein. The                           finality and accuracy of its daily                      to be appropriate and publishes its
                                              additional SWES Contracts will allow                      settlement process and avoidance of the                 reasons for so finding or (ii) as to which
                                              market participants an increased ability                  risk to ICC of settlement failures. ICC                 the self-regulatory organization
                                              to manage risk. ICC believes that                         determined to accept the additional                     consents, the Commission will:
                                              acceptance of the new contracts, on the                   SWES Contracts for clearing in                            (A) by order approve or disapprove
tkelley on DSK3SPTVN1PROD with NOTICES




                                              terms and conditions set out in the ICC                                                                           the proposed rule change or
                                                                                                          4 15    U.S.C. 78q–1(b)(3)(F).
                                              Rules, is consistent with the prompt and                    5 Id.
                                                                                                                                                                  (B) institute proceedings to determine
                                              accurate clearance of and settlement of                     6 17 CFR 240.17Ad–22.
                                                                                                                                                                whether the proposed rule change
                                              securities transactions and derivative                      7 17 CFR 240.17Ad–22(b)(2).                           should be disapproved.
                                              agreements, contracts and transactions                      8 17 CFR 240.17Ad–22(b)(3).
                                                                                                          9 17 CFR 240.17Ad–22(d)(4).                             11 17   CFR 240.17Ad–22(d)(8).
                                                3 15   U.S.C. 78q–1(b)(3)(F).                             10 17 CFR 240.17Ad–22(d)(5), (12) and (15).             12 17   CFR 240.17Ad–22(d)(11).



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                                              20280                            Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices

                                              IV. Solicitation of Comments                                For the Commission, by the Division of              SECURITIES AND EXCHANGE
                                                                                                        Trading and Markets, pursuant to delegated            COMMISSION
                                                Interested persons are invited to                       authority.13
                                              submit written data, views, and                                                                                 [Release No. 34–74688; File No. SR–ICC–
                                                                                                        Brent J. Fields,
                                              arguments concerning the foregoing,                                                                             2015–006]
                                                                                                        Secretary.
                                              including whether the proposed rule
                                                                                                        [FR Doc. 2015–08542 Filed 4–14–15; 8:45 am]           Self-Regulatory Organizations; ICE
                                              change is consistent with the Act.
                                                                                                        BILLING CODE 8011–01–P                                Clear Credit LLC; Notice of Filing of
                                              Comments may be submitted by any of
                                                                                                                                                              Proposed Rule Change To Provide for
                                              the following methods:
                                                                                                                                                              the Clearance of an Additional
                                              Electronic Comments                                       SECURITIES AND EXCHANGE                               Standard Emerging Market Sovereign
                                                                                                        COMMISSION                                            Single Name
                                                • Use the Commission’s Internet
                                              comment form (http://www.sec.gov/                                                                               April 9, 2015.
                                                                                                        [Release No. 34–74642A; File No. SR–                     Pursuant to Section 19(b)(1) of the
                                              rules/sro.shtml); or
                                                                                                        NYSE–2014–59]                                         Securities Exchange Act of 1934
                                                • Send an email to rule-comments@
                                                                                                                                                              (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
                                              sec.gov. Please include File Number SR–                   Self-Regulatory Organizations; New                    notice is hereby given that on March 27,
                                              ICC–2015–007 on the subject line.                         York Stock Exchange LLC; Notice of                    2015, ICE Clear Credit LLC (‘‘ICC’’) filed
                                                                                                        Withdrawal of a Proposed Rule                         with the Securities and Exchange
                                              Paper Comments
                                                                                                        Change, as Modified by Partial                        Commission (‘‘Commission’’) the
                                                • Send paper comments in triplicate                     Amendment No. 1, Amending Rule 13                     proposed rule change as described in
                                              to Secretary, Securities and Exchange                     and Related Rules Governing Order                     Items I, II, and III below, which Items
                                              Commission, 100 F Street NE.,                             Types and Modifiers; Correction                       have been prepared primarily by ICC.
                                              Washington, DC 20549–1090.                                                                                      The Commission is publishing this
                                                                                                        April 9, 2015.
                                              All submissions should refer to File                                                                            notice to solicit comments on the
                                                                                                        AGENCY:Securities and Exchange                        proposed rule change from interested
                                              Number SR–ICC–2015–007. This file
                                                                                                        Commission.                                           persons.
                                              number should be included on the
                                              subject line if email is used. To help the                ACTION:   Notice; correction.                         I. Self-Regulatory Organization’s
                                              Commission process and review your                                                                              Statement of the Terms of Substance of
                                              comments more efficiently, please use                     SUMMARY:  The Securities and Exchange                 the Proposed Rule Change
                                              only one method. The Commission will                      Commission published a document in                      The purpose of the proposed rule
                                              post all comments on the Commission’s                     the Federal Register on April 9, 2015,                change is to adopt rules that will
                                              Internet Web site (http://www.sec.gov/                    concerning a Notice of Withdrawal of a                provide the basis for ICC to clear an
                                              rules/sro.shtml). Copies of the                           Proposed Rule Change, as Modified by                  additional credit default swap contract.
                                              submission, all subsequent                                Partial Amendment No. 1, Amending                     Specifically, ICC is proposing to amend
                                              amendments, all written statements                        Rule 13 and Related Rules Governing                   Subchapter 26D of its rules to provide
                                              with respect to the proposed rule                         Order Types and Modifiers. The                        for the clearance of an additional
                                              change that are filed with the                            document contained a typographical                    Standard Emerging Market Sovereign
                                              Commission, and all written                               error.                                                CDS contract (‘‘SES Contract’’), namely
                                              communications relating to the                                                                                  Ukraine.
                                              proposed rule change between the                          FOR FURTHER INFORMATION CONTACT:                        ICC has been approved to clear twelve
                                              Commission and any person, other than                     Steve Kuan, Division of Trading and                   SES Contracts: The Federative Republic
                                              those that may be withheld from the                       Markets, Securities and Exchange                      of Brazil, the United Mexican States, the
                                              public in accordance with the                             Commission, 100 F Street NE.,                         Bolivarian Republic of Venezuela, the
                                              provisions of 5 U.S.C. 552, will be                       Washington, DC 20549, (202) 551–5624.                 Argentine Republic, the Republic of
                                              available for Web site viewing and                                                                              Turkey, the Russian Federation, the
                                              printing in the Commission’s Public                       Correction
                                                                                                                                                              Republic of Hungary, the Republic of
                                              Reference Room, 100 F Street NE.,                                                                               South Africa, the Republic of Chile, the
                                                                                                          In the Federal Register of April 9,
                                              Washington, DC 20549, on official                                                                               Republic of Peru, the Republic of
                                                                                                        2015 in FR Doc. 2015–8107, on page
                                              business days between the hours of                                                                              Colombia, and the Republic of Poland.3
                                              10:00 a.m. and 3:00 p.m. Copies of such                   19097, in the fourth line in the first
                                              filings will also be available for                        column, correct the date ‘‘February 26,                 1 15 U.S.C. 78s(b)(1).
                                              inspection and copying at the principal                   2014’’ to ‘‘February 26, 2015.’’                        2 17 CFR 240.19b–4.
                                              office of ICE Clear Credit and on ICE                       Dated: April 9, 2015.                                 3 See Securities Exchange Act Release No. 34–

                                              Clear Credit’s Web site at https://                                                                             65588 (Oct. 18, 2011), 76 FR 65763 (Oct. 24, 2011)
                                                                                                        Brent J. Fields,                                      (File No. SR–ICC–2011–01) (order approving rule
                                              www.theice.com/clear-credit/regulation.                   Secretary.                                            change to clear SES Contracts referencing the
                                                 All comments received will be posted                   [FR Doc. 2015–08628 Filed 4–14–15; 8:45 am]           Federative Republic of Brazil, the United Mexican
                                                                                                                                                              States, the Bolivian Republic of Venezuela, and the
                                              without change; the Commission does                       BILLING CODE 8011–01–P                                Argentine Republic); Securities Exchange Act
                                              not edit personal identifying                                                                                   Release No. 34–70849 (Nov. 12, 2013), 78 FR 69167
                                              information from submissions. You                                                                               (Nov. 18, 2013) (File No. SR–ICC–2013–07) (order
                                                                                                                                                              approving rule change to clear SES Contracts
tkelley on DSK3SPTVN1PROD with NOTICES




                                              should submit only information that
                                                                                                                                                              referencing the Republic of Turkey and the Russian
                                              you wish to make available publicly. All                                                                        Federation); Securities Exchange Act Release No.
                                              submissions should refer to File                                                                                34–73220 (Sep. 25, 2014), 79 FR 59340 (Oct. 1,
                                              Number SR–ICC–2015–007 and should                                                                               2014) (File No. SR–ICC–2014–13) (order approving
                                              be submitted on or before May 6, 2015.                                                                          rule change to clear SES Contracts referencing the
                                                                                                                                                              Republic of Hungary and the Republic of South
                                                                                                                                                              Africa); and Securities Exchange Act Release No.
                                                13 17   CFR 200.30–3(a)(12).                                                                                  34–74593 (Mar. 26, 2015), 80 FR 17538 (Apr. 1,



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Document Created: 2015-12-18 11:12:56
Document Modified: 2015-12-18 11:12:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 20278 

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