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, Issue 157 (August 14, 2015)
| Page Range | 48938-48940 | |
| FR Document | 2015-20007 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. 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\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-20007 Filed 8-13-15; 8:45 am] BILLING CODE 8011-01-P
![48938 Federal Register / Vol. 80, No. 157 / Friday, August 14, 2015 / Notices
The rule change also specifies the market participants’ choices for comments more efficiently, please use
timing of payment of such fees, with obtaining clearing services. only one method. The Commission will
annual fees initially becoming due on post all comments on the Commission’s
C. Self-Regulatory Organization’s
August 31, 2015, as set forth in further Internet Web site (http://www.sec.gov/
Statement on Comments on the
detail in a Circular to be published by rules/sro.shtml). Copies of the
Proposed Rule Change Received From
ICE Clear Europe. submission, all subsequent
Members, Participants or Others amendments, all written statements
2. Statutory Basis Written comments relating to the with respect to the proposed rule
ICE Clear Europe has determined that proposed rule change have not been change that are filed with the
the fees are reasonable and appropriate solicited or received. ICE Clear Europe Commission, and all written
to charge for establishing and will notify the Commission of any communications relating to the
maintaining EMIR Customer Accounts written comments received by ICE Clear proposed rule change between the
for Non-FCM/BD Clearing Members. In Europe. Commission and any person, other than
particular, ICE Clear Europe believes those that may be withheld from the
III. Date of Effectiveness of the
that the fees, and related volume public in accordance with the
Proposed Rule Change and Timing for
discounts from them, have been set at provisions of 5 U.S.C. 552, will be
Commission Action
an appropriate level given the costs and available for Web site viewing and
expenses to ICE Clear Europe in offering The foregoing proposed rule change printing in the Commission’s Public
and maintaining the relevant EMIR has become effective upon filing Reference Room, 100 F Street NE.,
Customer Accounts. The fees (and pursuant to Section 19(b)(3)(A) 7 of the Washington, DC 20549, on official
related discounts) apply equally to all Act and Rule 19b–4(f)(2) 8 thereunder business days between the hours of
Non-FCM/BD Clearing Members that because it establishes a fee or other 10:00 a.m. and 3:00 p.m. Copies of such
use EMIR Customer Accounts. ICE Clear charge imposed by ICE Clear Europe on filings will also be available for
Europe believes that imposing such its Clearing Members. Specifically, the inspection and copying at the principal
clearing fees is consistent with the proposed rule change will establish fees office of ICE Clear Europe and on ICE
requirements of Section 17A of the Act 5 to be paid by Non-FCM/BD Clearing Clear Europe’s Web site at https://
and the regulations thereunder Members to ICE Clear Europe in www.theice.com/clear-europe/
applicable to it, and in particular connection with EMIR Customer regulation. All comments received will
provides for the equitable allocation of Accounts. At any time within 60 days be posted without change; the
reasonable dues, fees, and other charges of the filing of the proposed rule change, Commission does not edit personal
among its Clearing Members, within the the Commission summarily may identifying information from
meaning of Section 17A(b)(3)(D) of the temporarily suspend such proposed rule submissions. You should submit only
Act.6 ICE Clear Europe thus believes change if it appears to the Commission information that you wish to make
that the proposed rule change is that such action is necessary or available publicly. All submissions
consistent with the requirements of appropriate in the public interest, for should refer to File Number SR–ICEEU–
the protection of investors, or otherwise 2015–014 and should be submitted on
Section 17A of the Act and regulations
in furtherance of the purposes of the or before September 4, 2015.
thereunder applicable to it.
Act. For the Commission, by the Division of
B. Self-Regulatory Organization’s Trading and Markets, pursuant to delegated
Statement on Burden on Competition IV. Solicitation of Comments
authority.9
Interested persons are invited to Robert W. Errett,
ICE Clear Europe does not believe the submit written data, views, and
proposed rule change would have any Deputy Secretary.
arguments concerning the foregoing, [FR Doc. 2015–20008 Filed 8–13–15; 8:45 am]
impact, or impose any burden, on including whether the proposed rule
competition not necessary or change is consistent with the Act.
BILLING CODE 8011–01–P
appropriate in furtherance of the Comments may be submitted by any of
purpose of the Act. As noted above, ICE the following methods:
Clear Europe believes that the fees and SECURITIES AND EXCHANGE
related discounts have been set at an Electronic Comments COMMISSION
appropriate level given the costs and • Use the Commission’s Internet [Release No. 34–75656; File No. SR–ICC–
expenses to ICE Clear Europe in offering comment form (http://www.sec.gov/ 2015–014]
and maintaining the relevant EMIR rules/sro.shtml) or
Customer Accounts. The fees and • Send an email to rule-comments@ Self-Regulatory Organizations; ICE
related discounts apply equally to all sec.gov. Please include File Number SR– Clear Credit LLC; Notice of Filing and
Non-FCM/BD Clearing Members that ICEEU–2015–014 on the subject line. Immediate Effectiveness of Proposed
use EMIR Customer Accounts. ICE Clear Rule Change To Implement Single
Europe does not believe that the Paper Comments Name Backloading Incentive Program
amendments would adversely affect the • Send paper comments in triplicate August 10, 2015.
ability of such Clearing Members or to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
other market participants generally to Commission, 100 F Street NE., Securities Exchange Act of 1934
engage in cleared transactions or to Washington, DC 20549–1090.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
access clearing. ICE Clear Europe further All submissions should refer to File notice is hereby given that on July 30,
believes that the fees will not otherwise Number SR–ICEEU–2015–014. This file 2015, ICE Clear Credit LLC (‘‘ICC’’) filed
adversely affect competition among number should be included on the with the Securities and Exchange
Clearing Members, adversely affect the subject line if email is used. To help the Commission (‘‘Commission’’) the
market for clearing services or limit Commission process and review your
9 17 CFR 200.30–3(a)(12).
5 15 U.S.C. 78q–1. 7 15 U.S.C. 78s(b)(3)(A). 1 15 U.S.C. 78s(b)(1).
6 15 U.S.C. 78q–1(b)(3)(D). 8 17 CFR 240.19b–4(f)(2). 2 17 CFR 240.19b–4.
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![48940 Federal Register / Vol. 80, No. 157 / Friday, August 14, 2015 / Notices
10:00 a.m. and 3:00 p.m. Copies of such Twenty Third Substantive Amendment they could mistakenly think that they
filings will also be available for to the CTA Plan (‘‘Amendment’’).5 The are seeing consolidated trades and
inspection and copying at the principal Amendment proposes to establish a fee quotes because the volume is
office of ICE Clear Credit and on ICE that will be charged to a vendor or other consolidated volume.
Clear Credit’s Web site at https:// data redistributor that fails to comply To make the displays transparent and
www.theice.com/clear-credit/regulation. with the CTA Plan participants’ less likely to mislead, data redistributors
All comments received will be posted Consolidated Volume display statement, that include consolidated volume in
without change; the Commission does and related requirements. The non- displays of unconsolidated prices and
not edit personal identifying compliance charge seeks to provide quotes must incorporate into those
information from submissions. You incentives for data redistributors to displays the following statement (or a
should submit only information that comply with the participants’ close iteration of the statement that the
you wish to make available publicly. All consolidated volume requirements. The network administrator(s) have
submissions should refer to File proposed Amendment was published approved): ‘‘Realtime quote and/or trade
Number SR–ICC–2015–014 and should for comment in the Federal Register on prices are not sourced from all
be submitted on or before September 4, July 10, 2015.6 No comment letters were markets.’’
2015. received in response to the Notice. This A data redistributor must also assure
order approves the proposed that any person included in the
For the Commission, by the Division of
Trading and Markets, pursuant to delegated Amendment to the Plan. redistribution chain starting with the
authority.12 II. Description of the Proposal data redistributor places the statement
Robert W. Errett, in any such display that it provides. The
Historically, the Plan participants statement must be clearly visible to the
Deputy Secretary. have not applied device fees to devices
[FR Doc. 2015–20007 Filed 8–13–15; 8:45 am]
end users so that they understand the
that receive consolidated volume (i.e., differences in the sources of the data. In
BILLING CODE 8011–01–P aggregate volume for trades taking place addition, data redistributors need to
on all market centers under the Plan) in assure that they, and any person or
displays that do not also include CTA entity included in the redistribution
SECURITIES AND EXCHANGE Plan prices or CQ Plan quotation
COMMISSION chain starting with them, clearly
information. The participants do not incorporate the display statement into
[Release No. 34–75660; File No. SR–CTA– plan to change this policy. any advertisement, sales literature or
2015–02] However, some data redistributors
other material displaying CTA
include consolidated volume in
Consolidated Volume alongside
Consolidated Tape Association; Order displays of unconsolidated last sale
prices and/or unconsolidated bid-asked unconsolidated prices or quotes. These
Approving the Twenty Third requirements apply to both real-time
Substantive Amendment to the Second quotes, such as displays of one
exchange’s trade prices and quotes. The and delayed displays of consolidated
Restatement of the CTA Plan volume.
Participants believe that such displays,
August 11, 2015. whether displayed internally or In order to ensure compliance with
externally, could mislead investors these requirements, all recipients of the
I. Introduction CTA last sale price datafeed (whether
regarding the nature of the information
On June 19, 2015, certain participants they are viewing. A significant number directly or indirectly) must submit a
(‘‘Approving Participants’’) 1 of the of data users receive proprietary trade declaration. The Amendment will
Consolidated Tape Association (‘‘CTA’’) prices and quotes. Unless the data users require firms that include consolidated
Plan filed with the Securities and understand the content being displayed, volume in displays of unconsolidated
Exchange Commission (‘‘SEC’’ or prices and quotes to submit to NYSE a
‘‘Commission’’) pursuant to Section 11A the Act, 17 CFR 242.601, and a ‘‘national market screen print of the displays, which
of the Securities Exchange Act of 1934 system plan’’ under Rule 608 under the Act, 17 CFR include the display statement. The CTA
(‘‘Act’’),2 and Rule 608 thereunder,3 a 242.608. Administrator will work with firms to
5 The Amendment was originally submitted on an
proposal to amend the Second facilitate their compliance.7
immediately effective basis pursuant to Rule
Restatement of the CTA Plan (‘‘CTA 608(b)(3)(i) under Regulation NMS. See Letter from The Approving Participants’
Plan’’).4 The proposal represents the Emily Kasparov, Chairman, CTA Plan Operating representatives met with SIFMA and the
Committee to Brent J. Fields, Secretary, CTA Plan’s Advisory Committee to
12 17 CFR 200.30–3(a)(12). Commission, dated May 18, 2015. On June 19, 2015, discuss the consolidated volume
the Approving Participants filed a letter to indicate
1 More than two-thirds of the CTA Plan
the proposal should be considered under Rule requirements and responded to their
participants approved the amendment. The questions. They shortened the display
608(b)(1) and Rule 608(b)(2) of Regulation NMS. As
Approving Participants are: BATS Exchange, Inc.,
BATS–Y Exchange, Inc., Chicago Board Options
a result, the Amendment must be approved by the statement in response to comments and
Commission. See Letter from Emily Kasparov, made clear that a datafeed recipient that
Exchange, Incorporated, Chicago Stock Exchange,
Chairman, CTA Plan Operating Committee to Brent
Inc., EDGA Exchange, Inc., EDGX Exchange, Inc., J. Fields, Secretary, Commission, dated June 17, provides an exchange’s trading volume
Financial Industry Regulatory Authority, Inc., 2015. The Amendment was originally designated as with displays of the exchange’s trade
International Securities Exchange, LLC, National the Twenty Second Charges Amendment to the
Stock Exchange, New York Stock Exchange LLC, prices and quotes is not subject to the
Plan. The Commission noted that the proposal is
NYSE MKT LLC, and NYSE Arca, Inc. NASDAQ the Twenty Third Substantive Amendment to the
display requirement.
OMX BX, Inc., NASDAQ OMX PHLX, Inc., and the
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Plan. See Notice, infra note 6, 80 FR at 39822 at
Nasdaq Stock Market LLC are also CTA Plan note 5. On August 7, 2015, the Approving 7 A firm with access to CTA consolidated volume
participants (‘‘participants’’). Participants filed a letter to indicate the proposal data must submit the declaration and, if applicable,
2 15 U.S.C. 78k–1.
should be designated as the Twenty Third the screen print within 120 days from the effective
3 17 CFR 242.608.
Substantive Amendment of the Plan. See Letter date of the amendment or within 30 days of the
4 See Securities Exchange Act Release No. 10787 from Emily Kasparov, Chairman, CTA Plan effective date of the firm’s market data agreement
(May 10, 1974), 39 FR 17799 (declaring the CTA Operating Committee to Brent J. Fields, Secretary, with the participants that governs its receipt of the
Plan effective). The CTA Plan, pursuant to which Commission, dated August 6, 2015 (‘‘August 6 CTA datafeed (its ‘‘Vendor Agreement’’). Thereafter,
markets collect and disseminate last sale price Letter’’). each firm must submit its declaration and, if
information for non-NASDAQ listed securities, is a 6 See Securities Exchange Act Release No. 75363 applicable, its screen print annually by the 31st day
‘‘transaction reporting plan’’ under Rule 601 under (July 6, 2015), 80 FR 39821 (‘‘Notice’’). of January.
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Document Created: 2018-02-23 10:58:57
Document Modified: 2018-02-23 10:58:57
| 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 48938 |
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