80 FR 29357 - Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Related to Settlement Finality

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 98 (May 21, 2015)

Page Range		29357-29357
FR Document		2015-12282
Federal Register, Volume 80 Issue 98 (Thursday, May 21, 2015)
[Federal Register Volume 80, Number 98 (Thursday, May 21, 2015)]
[Notices]
[Page 29357]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12282]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74974; File No. SR-ICC-2015-008]


Self-Regulatory Organizations; ICE Clear Credit LLC; Order 
Approving Proposed Rule Change Related to Settlement Finality

May 15, 2015.

I. Introduction

    On April 1, 2015, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission (``Commission'') a proposed rule 
change pursuant to Section 19(b)(1) of the Securities Exchange Act of 
1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ to provide additional 
clarity regarding settlement finality with respect to Mark-to-Market 
Margin. The proposed rule change was published for comment in the 
Federal Register on April 14, 2015.\3\ The Commission did not receive 
comments regarding the proposed change. For the reasons discussed 
below, the Commission is granting approval of the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-74676 (Apr. 8, 2015), 
80 FR 20047 (Apr. 14, 2015) (SR-ICC-2015-008).
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II. Description of the Proposed Rule Change

    ICC proposes revising ICC Clearing Rule 401 (``Rule 401'') in order 
to provide additional clarity regarding settlement finality with 
respect to Mark-to-Market Margin (as defined in ICC Rule 401). 
Specifically, the proposed rule change would add new subsections (k) 
and (l) to Rule 401. ICC states that 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. ICC states that such 
additional language is consistent with ICC's current practices and is 
intended to provide further clarity regarding ICC's settlement cycle.
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    \4\ 17 CFR 39.14.
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III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \5\ directs the Commission to 
approve a proposed rule change of a self-regulatory organization if the 
Commission finds that such proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to such self-regulatory organization. Section 17A(b)(3)(F) 
of the Act \6\ requires, among other things, that the rules of a 
clearing agency are designed to promote the prompt and accurate 
clearance and settlement of securities transactions and, to the extent 
applicable, derivative agreements, contracts, and transactions.
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    \5\ 15 U.S.C. 78s(b)(2)(C).
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds that the proposed rule change is consistent 
with Section 17A of the Act \7\ and the rules thereunder applicable to 
ICC. The proposed rule change would provide additional clarity and 
transparency regarding ICC's settlement cycle, specifically with regard 
to the time at which Transfers of Mark-to-Market Margin are final and 
the time at which the fair value of the outstanding exposures for 
relevant Contracts in a Mark-to-Market Margin Category is reset to 
zero. The Commission therefore finds that the proposed rule change is 
designed to promote the prompt and accurate clearance and settlement of 
securities transactions and, to the extent applicable, derivative 
agreements, contracts, and transactions in accordance with Section 
17A(b)(3)(F) of the Act.\8\
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \9\ and the 
rules and regulations thereunder.
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    \9\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (File No. SR-ICC-2015-008) be, 
and hereby is, approved.\11\
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ In approving the proposed rule change, the Commission 
considered the proposal's impact on efficiency, competition and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-12282 Filed 5-20-15; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 98 / Thursday, May 21, 2015 / Notices 29357

with respect to the proposed rule the Federal Register on April 14, 2015.3 agency are designed to promote the
change that are filed with the The Commission did not receive prompt and accurate clearance and
Commission, and all written comments regarding the proposed settlement of securities transactions
communications relating to the change. For the reasons discussed and, to the extent applicable, derivative
proposed rule change between the below, the Commission is granting agreements, contracts, and transactions.
Commission and any person, other than approval of the proposed rule change.
The Commission finds that the
those that may be withheld from the II. Description of the Proposed Rule proposed rule change is consistent with
public in accordance with the Change
provisions of 5 U.S.C. 552, will be Section 17A of the Act 7 and the rules
available for Web site viewing and ICC proposes revising ICC Clearing thereunder applicable to ICC. The
printing in the Commission’s Public Rule 401 (‘‘Rule 401’’) in order to proposed rule change would provide
Reference Room, 100 F Street NE., provide additional clarity regarding additional clarity and transparency
Washington, DC 20549, on official settlement finality with respect to Mark- regarding ICC’s settlement cycle,
business days between the hours of to-Market Margin (as defined in ICC specifically with regard to the time at
10:00 a.m. and 3:00 p.m. Copies of such Rule 401). Specifically, the proposed which Transfers of Mark-to-Market
filings also will be available for rule change would add new subsections Margin are final and the time at which
inspection and copying at the principal (k) and (l) to Rule 401. ICC states that the fair value of the outstanding
office of FICC and on FICC’s Web site the new subsections are not intended to exposures for relevant Contracts in a
at http://www.dtcc.com/legal/sec-rule- change any current ICC practices; rather, Mark-to-Market Margin Category is reset
filings.aspx. such changes are intended to provide to zero. The Commission therefore finds
additional clarity regarding settlement that the proposed rule change is
All comments received will be posted finality with respect to Mark-to-Market
without change; the Commission does designed to promote the prompt and
Margin. All capitalized terms not
not edit personal identifying accurate clearance and settlement of
defined herein are defined in the ICC
information from submissions. You Rules. securities transactions and, to the extent
should submit only information that ICC proposes adding language in Rule applicable, derivative agreements,
you wish to make available publicly. All 401(k) to clarify that each Transfer of contracts, and transactions in
submissions should refer to File Mark-to-Market Margin shall constitute accordance with Section 17A(b)(3)(F) of
Number SR–FICC–2015–002 and should a settlement (within the meaning of U.S. the Act.8
be submitted on or before June 11, 2015. Commodity Futures Trading IV. Conclusion
For the Commission, by the Division of Commission Rule 39.14 4) and shall be
Trading and Markets, pursuant to delegated final as of the time ICC’s accounts are On the basis of the foregoing, the
authority.29 debited or credited with the relevant Commission finds that the proposal is
Robert W. Errett,
payment. Further, ICC proposes adding consistent with the requirements of the
language in Rule 401(l) to state that once Act and in particular with the
Deputy Secretary. settlement of a Transfer of Mark-to-
[FR Doc. 2015–12281 Filed 5–20–15; 8:45 am] requirements of Section 17A of the Act 9
Market Margin in respect of the Margin and the rules and regulations
BILLING CODE 8011–01–P Requirements for a Mark-to-Market
thereunder.
Margin Category is final, the fair value
of the outstanding exposures for the It is therefore ordered, pursuant to
SECURITIES AND EXCHANGE relevant Contracts in that Mark-to- Section 19(b)(2) of the Act,10 that the
COMMISSION Market Margin Category (taking into proposed rule change (File No. SR–ICC–
account the Margin provided in respect 2015–008) be, and hereby is,
[Release No. 34–74974; File No. SR–ICC– of such Margin Requirement) will be approved.11
2015–008] reset to zero. ICC states that such For the Commission, by the Division of
additional language is consistent with Trading and Markets, pursuant to delegated
Self-Regulatory Organizations; ICE ICC’s current practices and is intended authority.12
Clear Credit LLC; Order Approving to provide further clarity regarding ICC’s
Robert W. Errett,
Proposed Rule Change Related to settlement cycle.
Settlement Finality Deputy Secretary.
III. Discussion and Commission [FR Doc. 2015–12282 Filed 5–20–15; 8:45 am]
May 15, 2015. Findings
BILLING CODE 8011–01–P
Section 19(b)(2)(C) of the Act 5 directs
I. Introduction
the Commission to approve a proposed
On April 1, 2015, ICE Clear Credit rule change of a self-regulatory
LLC (‘‘ICC’’) filed with the Securities organization if the Commission finds
and Exchange Commission that such proposed rule change is
(‘‘Commission’’) a proposed rule change consistent with the requirements of the
pursuant to Section 19(b)(1) of the Act and the rules and regulations
Securities Exchange Act of 1934 thereunder applicable to such self-
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 regulatory organization. Section
7 15 U.S.C. 78q–1.
to provide additional clarity regarding 17A(b)(3)(F) of the Act 6 requires, among
8 15 U.S.C. 78q–1(b)(3)(F).
other things, that the rules of a clearing
tkelley on DSK3SPTVN1PROD with NOTICES

settlement finality with respect to Mark- 9 15 U.S.C. 78q–1.
to-Market Margin. The proposed rule 3 Securities Exchange Act Release No. 34–74676
10 15 U.S.C. 78s(b)(2).
change was published for comment in (Apr. 8, 2015), 80 FR 20047 (Apr. 14, 2015) (SR– 11 In approving the proposed rule change, the

ICC–2015–008). Commission considered the proposal’s impact on
29 17 CFR 200.30–3(a)(12). 4 17 CFR 39.14. efficiency, competition and capital formation. 15
1 15 U.S.C. 78s(b)(1). 5 15 U.S.C. 78s(b)(2)(C). U.S.C. 78c(f).
2 17 CFR 240.19b–4. 6 15 U.S.C. 78q–1(b)(3)(F). 12 17 CFR 200.30–3(a)(12).

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Document Created: 2018-10-24 10:25:45
Document Modified: 2018-10-24 10:25:45
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 29357