80 FR 48938 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Single Name Backloading Incentive Program

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 157 (August 14, 2015)

[Federal Register Volume 80, Number 157 (Friday, August 14, 2015)]
[Notices]
[Pages 48938-48940]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20007]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75656; File No. SR-ICC-2015-014]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Implement 
Single Name Backloading Incentive Program

August 10, 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 July 30, 2015, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission (``Commission'') the

[[Page 48939]]

proposed rule change as described in Items I, II, and III below, which 
Items have been prepared primarily by ICC. ICC filed the proposal 
pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) \4\ 
thereunder, so that the proposal was effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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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 implement a single 
name backloading incentive program for client account clearing of 
single name credit default swap (``CDS'') contracts.

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 regarding 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 proposed rule change is intended to implement a single name 
backloading incentive program for client account clearing of single 
name CDS contracts. The proposed rule change is designed to incentivize 
market participants to submit additional transactions to ICC for 
clearing. Under the program, clients will receive a 50% discount on ICC 
clearing fees for backloaded single name CDS contracts. The discount 
will be paid back as a rebate directly through the client's Clearing 
Participant. ICC plans to begin processing program rebates on September 
1, 2015, and the terms of the program are set to expire on December 1, 
2015. Contracts must have an execution date prior to June 1, 2015 to be 
eligible for the rebate program.
    ICC believes the proposed rule change is consistent with the 
requirements of the Act including Section 17A of the Act.\5\ More 
specifically, the proposed rule change establishes or changes a member 
due, fee or other charge imposed by ICC under Section 19(b)(3)(A)(ii) 
\6\ of the Act and Rule 19b-4(f)(2) \7\ thereunder. ICC believes 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)(D),\8\ because the proposed fee changes apply 
equally to all market participants clearing backloaded single name CDS 
contracts in client accounts and therefore the proposed rule change 
provides for the equitable allocation of reasonable dues, fees and 
other charges among participants. As such, the proposed rule change is 
appropriately filed pursuant to Section 19(b)(3)(A) \9\ of the Act and 
paragraph (f)(2) of Rule 19b-4 thereunder.
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
    \8\ 15 U.S.C. 78q-1(b)(3)(D).
    \9\ 15 U.S.C. 78s(b)(3)(A).
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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 proposed rule change 
modifies pricing for client account clearing of single name CDS 
contracts. There is no limit to the number of client participants that 
may participate in the backloading incentive program; it will be open 
to all clients and rebates will be applied to all transaction fees for 
client accounts clearing eligible single name CDS contracts. As such, 
the proposed rule change applies consistently across all eligible 
market participants and the implementation of the proposed rule change 
does not preclude the implementation of similar incentive programs by 
other 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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(2) \11\ 
thereunder because the implementation of a single name backloading 
incentive program for client account clearing of single name CDS 
contracts results in changes which establish or change a due, fee, or 
other charge applicable to ICC's participants. At any time within 60 
days of the filing of the proposed rule change, the Commission 
summarily may temporarily suspend such rule change if it appears to the 
Commission that such action is necessary or appropriate in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Act.
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
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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-2015-014 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-2015-014. 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

[[Page 48940]]

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-2015-014 
and should be submitted on or before September 4, 2015.

    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. 2015-20007 Filed 8-13-15; 8:45 am]
 BILLING CODE 8011-01-P