80 FR 22593 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change Relating to CDS Procedures for CDX North America Index CDS Contracts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 77 (April 22, 2015)

Page Range		22593-22594
FR Document		2015-09270

Federal Register, Volume 80 Issue 77 (Wednesday, April 22, 2015)

[Federal Register Volume 80, Number 77 (Wednesday, April 22, 2015)]
[Notices]
[Pages 22593-22594]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-09270]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74741; File No. SR-ICEEU-2015-005]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Designation of Longer Period for Commission Action on Proposed Rule 
Change Relating to CDS Procedures for CDX North America Index CDS 
Contracts

April 16, 2015.
    On February 12, 2015, ICE Clear Europe Limited (``ICEEU'') filed 
with the Securities and Exchange Commission (``Commission''), pursuant 
to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to revise 
ICEEU's CDS Procedures, CDS Risk Model Description and CDS End-of-Day 
Price Discovery Policy to provide the basis for ICEEU to clear CDX 
North America Index CDS Contracts (``CDX.NA Contracts''). The proposed 
rule change

[[Page 22594]]

was published for comment in the Federal Register on March 2, 2015.\3\ 
To date, the Commission has not received comments on the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-74362 (Feb. 24, 
2015), 80 FR 11246 (Mar. 2, 2015).
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    Section 19(b)(2) of the Act \4\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day from the publication of notice of filing of this proposed rule 
change is April 16, 2015. The Commission is extending this 45-day time 
period.
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    \4\ 15 U.S.C. 78s(b)(2).
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    ICEEU's proposed rule change would revise ICEEU's CDS Procedures, 
CDS Risk Model Description and CDS End-of-Day Price Discovery Policy to 
enable ICEEU to clear CDX.NA Contracts, as well as make changes to 
ICEEU's CDS Procedures relating to iTraxx Contracts and single name CDS 
Contracts. In order to provide the Commission with sufficient time to 
consider the proposed rule change, the Commission finds it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change.
    Accordingly, the Commission, pursuant to Section 19(b)(2) of the 
Act,\5\ designates May 31, 2015, as the date by which the Commission 
should either approve or disapprove, or institute proceedings to 
determine whether to disapprove, the proposed rule change (File No. SR-
ICEEU-2015-005).
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    \5\ 15 U.S.C. 78s(b)(2).

Brent J. Fields,
Secretary.
[FR Doc. 2015-09270 Filed 4-21-15; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices 22593

provisions are no longer necessary as ‘‘Information Sharing,’’ are being Clearing Agreement, should reduce the
they limit OCC’s ability to modify its amended as follows: costs and risks associated with clearing
By-Laws, Rules and agreements which • Section (1) of Schedule A of the and settling NFX trades, which should
may be necessary for OCC to fulfill its Clearing Agreement, ‘‘Trade in turn promote the prompt and
obligations as a clearing organization. Acceptance,’’ has been updated to accurate clearance and settlement of the
OCC will, however, continue to be reflect current OCC operational NFX derivative contract transactions,
obligated to fulfill both the provisions of requirements with respect to submission better assure the safeguarding of related
the Clearing Agreement and OCC’s of confirmed trades. securities and funds in the custody and
regulatory responsibilities. Section 8 has • Section (4) of Schedule A, control of OCC, and better protect
additionally been amended to delete an ‘‘Information for Clearing Members,’’ investors and the public interest.
obligation for each party to provide the has been amended to delete specific
information sharing obligations of OCC III. Conclusion
other with proposed rule changes. The
elimination of this contractual to its Clearing Members and to state that On the basis of the foregoing, the
obligation reflects the parties’ the information provided to Clearing Commission finds that the proposal is
determination that their respective Members will be in accordance with consistent with the requirements of the
obligations to post filed regulatory OCC’s By-Laws and Rules. Act and in particular with the
submissions on their public Web sites • Section (I)(A) of Schedule B has requirements of Section 17A of the
provides sufficient notice of such been amended to delete specific Act 13 and the rules and regulations
changes. references to information that OCC will thereunder.
provide to Clearing Members on a daily IT IS THEREFORE ORDERED,
• Section 11, ‘‘Financial
basis and instead adds a provision that pursuant to Section 19(b)(2) of the
Requirements for Clearing Members,’’
OCC will provide NFX with its ‘‘Data Act,14 that the proposed rule change
has been amended to delete a provision
Distribution Service’’ information for (SR–OCC–2015–03) be, and it hereby is,
stating the specific financial
regulatory and financial purposes. approved.
responsibility standards OCC has with
• Section (I)(B) of Schedule B has For the Commission, by the Division of
respect to its Clearing Members. This
been amended to delete certain Trading and Markets, pursuant to delegated
change was made to further streamline
information sharing provisions and to authority.15
the Clearing Agreement given OCC’s
state that the information sharing Brent J. Fields,
general obligation to remain consistent
obligations OCC continues to have may Secretary.
with OCC By-Laws and Rules.
be satisfied by posting the required
• Section 14, ‘‘Programs and [FR Doc. 2015–09266 Filed 4–21–15; 8:45 am]
information on OCC’s public Web site
Projects,’’ has been amended to BILLING CODE 8011–01–P
which streamlines the information
eliminate a provision expressly
sharing process.
requiring OCC to offer futures contract
clearing terms to NFX that are no less II. Discussion and Commission SECURITIES AND EXCHANGE
favorable to the terms offered to other Findings COMMISSION
exchanges. Section 19(b)(2)(C) of the Act 11 [Release No. 34–74741; File No. SR–ICEEU–
• Sections 15 and 24 in the Previous directs the Commission to approve a 2015–005]
Agreement, ‘‘Information Sharing’’ and proposed rule change of a self-
‘‘Quality Standards’’ respectively, have Self-Regulatory Organizations; ICE
regulatory organization if it finds that
been deleted in their entirety in an Clear Europe Limited; Notice of
the proposed rule change is consistent Designation of Longer Period for
attempt to simplify the Clearing with the requirements of the Act and the
Agreement as the sections create Commission Action on Proposed Rule
rules and regulations thereunder Change Relating to CDS Procedures
unnecessary obligations on the parties applicable to such organization. The
and are duplicative of general regulatory for CDX North America Index CDS
Commission finds that the proposed Contracts
responsibilities of both parties. rule change is consistent with Section
• Section 18(b), ‘‘Other Grounds for 17A(b)(3)(F) of the Act,12 which April 16, 2015.
Termination,’’ has been amended to requires, among other things, that the On February 12, 2015, ICE Clear
include a provision that OCC may rules of a clearing agency be designed to Europe Limited (‘‘ICEEU’’) filed with
terminate the Clearing Agreement at any promote the prompt and accurate the Securities and Exchange
time so long as NFX is given 120 days clearance and settlement of securities Commission (‘‘Commission’’), pursuant
prior written notice. The addition of this transactions and, to the extent to Section 19(b)(1) of the Securities
provision better balances the rights of applicable, derivative agreements, Exchange Act of 1934 (‘‘Act’’) 1 and Rule
both parties to terminate the Clearing contracts, and transactions, to assure the 19b–4 thereunder,2 a proposed rule
Agreement at their discretion provided safeguarding of securities and funds change to revise ICEEU’s CDS
that proper notice is given as required which are in its custody or control or for Procedures, CDS Risk Model
by the Clearing Agreement. which it is responsible, and, in general, Description and CDS End-of-Day Price
• Various administrative changes to protect investors and the public Discovery Policy to provide the basis for
have been made throughout the interest. As approved, the Clearing ICEEU to clear CDX North America
document including, but not limited to, Agreement will allow derivative Index CDS Contracts (‘‘CDX.NA
an amended legal name and description Contracts’’). The proposed rule change
asabaliauskas on DSK5VPTVN1PROD with NOTICES

contract trades executed on NFX to be
of NFX, updated references to sections cleared and settled at OCC, thereby
within the document, and clean-up ensuring that these trades will be 13 In approving this proposed rule change, the

changes of duplicative terms. Commission has considered the proposed rule’s
subject to the comprehensive impact on efficiency, competition, and capital
Finally, pursuant to the rule change, operational and risk management formation. See 15 U.S.C. 78c(f).
as approved, Schedule A of the Clearing framework at OCC. In so doing, the 14 15 U.S.C. 78s(b)(2).
Agreement, ‘‘Description of Clearing 15 17 CFR 200.30–3(a)(12).

and Settlement Services’’ and Schedule 11 15 U.S.C. 78s(b)(2)(C). 1 15 U.S.C. 78s(b)(1).

B of the Clearing Agreement, 12 15 U.S.C. 78q–1(b)(3)(F). 2 17 CFR 240.19b–4.

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22594 Federal Register / Vol. 80, No. 77 / Wednesday, April 22, 2015 / Notices

was published for comment in the SECURITIES AND EXCHANGE The text of the proposed rule change
Federal Register on March 2, 2015.3 To COMMISSION is available at the Exchange’s Web site
date, the Commission has not received at www.batstrading.com, at the
[Release No. 34–74740; File No. SR–BYX– principal office of the Exchange, and at
comments on the proposal.
2015–23] the Commission’s Public Reference
Section 19(b)(2) of the Act 4 provides
Self-Regulatory Organizations; BATS Room.
that within 45 days of the publication of
notice of the filing of a proposed rule Y-Exchange, Inc.; Notice of Filing and II. Self-Regulatory Organization’s
change, or within such longer period up Immediate Effectiveness of a Proposed Statement of the Purpose of, and
to 90 days as the Commission may Rule Change To Amend Exchange Statutory Basis for, the Proposed Rule
designate if it finds such longer period Rule 3.5 (Advertising Practices) and Change
to be appropriate and publishes its Repeal Exchange Rule 3.20 (Initial or
In its filing with the Commission, the
reasons for so finding or as to which the Partial Payments)
Exchange included statements
self-regulatory organization consents, April 16, 2015. concerning the purpose of, and basis for,
the Commission shall either approve the Pursuant to Section 19(b)(1) of the the proposed rule change and discussed
proposed rule change, disapprove the Securities Exchange Act of 1934 any comments it received on the
proposed rule change, or institute (‘‘Act’’),1 and Rule 19b–4 thereunder,2 proposed rule change. The text of these
proceedings to determine whether the notice is hereby given that on April 1, statements may be examined at the
proposed rule change should be 2015, BATS Y-Exchange, Inc. places specified in Item IV below. The
disapproved. The 45th day from the (‘‘Exchange’’ or ‘‘BYX’’) filed with the Exchange has prepared summaries, set
publication of notice of filing of this Securities and Exchange Commission forth in Sections A, B, and C below, of
proposed rule change is April 16, 2015. (‘‘Commission’’) the proposed rule the most significant parts of such
The Commission is extending this 45- change as described in Items I and II statements.
day time period. below, which Items have been A. Self-Regulatory Organization’s
ICEEU’s proposed rule change would substantially prepared by the Exchange. Statement of the Purpose of, and
revise ICEEU’s CDS Procedures, CDS The Exchange has designated this Statutory Basis for, the Proposed Rule
proposal as a ‘‘non-controversial’’ Change
Risk Model Description and CDS End-
proposed rule change pursuant to
of-Day Price Discovery Policy to enable 1. Purpose
Section 19(b)(3)(A) of the Act 3 and Rule
ICEEU to clear CDX.NA Contracts, as
19b–4(f)(6) thereunder,4 which renders Pursuant to Rule 17d–2 under the
well as make changes to ICEEU’s CDS it effective upon filing with the
Procedures relating to iTraxx Contracts Act,7 the Exchange and FINRA entered
Commission. The Commission is into an agreement to allocate regulatory
and single name CDS Contracts. In order publishing this notice to solicit responsibility for common rules (‘‘17d–
to provide the Commission with comments on the proposed rule change 2 Agreement’’). The 17d–2 Agreement
sufficient time to consider the proposed from interested persons. covers common members of the
rule change, the Commission finds it is Exchange and FINRA (‘‘Common
appropriate to designate a longer period I. Self-Regulatory Organization’s
Statement of the Terms of Substance of Members’’) and allocates to FINRA
within which to take action on the regulatory responsibility, with respect to
proposed rule change. the Proposed Rule Change
Common Members, for the following: (i)
Accordingly, the Commission, The Exchange filed a proposal to: (i) Examination of Common Members for
pursuant to Section 19(b)(2) of the Act,5 Amend Exchange Rule 3.5 (Advertising compliance with federal securities laws,
designates May 31, 2015, as the date by Practices); and (ii) repeal Exchange Rule rules, and regulations, and rules of the
which the Commission should either 3.20 (Initial or Partial Payments) to Exchange that the Exchange has
conform with the rules of the Financial certified as identical or substantially
approve or disapprove, or institute
Industry Regulatory Authority, Inc. similar to FINRA rules; (ii) investigation
proceedings to determine whether to
(‘‘FINRA’’) for purposes of an agreement of Common Members for violations of
disapprove, the proposed rule change between the Exchange and FINRA
(File No. SR–ICEEU–2015–005). federal securities laws, rules, and
pursuant to Rule 17d–2 under the Act.5 regulations, and Exchange rules that the
Brent J. Fields, The proposed rule change is identical to Exchange has certified as identical or
Secretary. proposed rule changes submitted by the substantially identical to FINRA rules;
EDGX Exchange, Inc. (‘‘EDGX’’) and the and (iii) enforcement of compliance by
[FR Doc. 2015–09270 Filed 4–21–15; 8:45 am]
EDGA Exchange, Inc. (‘‘EDGA’’) that Common Members with the federal
BILLING CODE 8011–01–P
were published by the Commission.6 securities laws, rules, and regulations,
1 15
and the rules of the Exchange that the
U.S.C. 78s(b)(1).
2 17
Exchange has certified as identical or
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). substantially similar to FINRA rules.8
4 17 CFR 240.19b–4(f)(6). The 17d–2 Agreement included a
5 17 CFR 240.17d–2. certification by the Exchange that states
6 See Securities Exchange Act Release Nos. 70837 that the requirements contained in
asabaliauskas on DSK5VPTVN1PROD with NOTICES

(Nov. 8, 2013), 78 FR 68889 (Nov. 15, 2013) (SR– certain Exchange rules are identical to,
EDGA–2013–32) (Notice of Filing and Immediate or substantially similar to, certain
Effectiveness of Proposed Rule Change to Amend
EDGA Rule 3.5 (Advertising Practices) and to
Repeal Rule 3.20 (Initial or Partial Payments) to (Initial or Partial Payments) to Conform with the
Conform with the Rules of the Financial Industry Rules of the Financial Industry Regulatory
Regulatory Authority); and 70836 (Nov. 8, 2013), 78 Authority).
3 Securities Exchange Act Release No. 34–74362
7 17 CFR 240.17d–2.
FR 68897 (Nov. 15, 2013) (SR–EDGX–2013–40)
(Feb. 24, 2015), 80 FR 11246 (Mar. 2, 2015).
(Notice of Filing and Immediate Effectiveness of 8 See Securities and Exchange Release No. 61698
4 15 U.S.C. 78s(b)(2).
Proposed Rule Change to Amend EDGX Rule 3.5 (March 12, 2010), 75 FR 13151 (March 18, 2010)
5 15 U.S.C. 78s(b)(2). (Advertising Practices) and to Repeal Rule 3.20 (approving File No. 10–196).

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Document Created: 2015-12-16 08:28:14
Document Modified: 2015-12-16 08:28:14

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 22593