80_FR_55850 80 FR 55671 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Require an Indicator When a TRACE Report Does Not Reflect a Commission or Mark-Up/Mark-Down

80 FR 55671 - Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Require an Indicator When a TRACE Report Does Not Reflect a Commission or Mark-Up/Mark-Down

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 179 (September 16, 2015)

Page Range55671-55672
FR Document2015-23211

Federal Register, Volume 80 Issue 179 (Wednesday, September 16, 2015) 
[Federal Register Volume 80, Number 179 (Wednesday, September 16, 2015)]
[Notices]
[Pages 55671-55672]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23211]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75875; File No. SR-FINRA-2015-026]


Self-Regulatory Organizations; Financial Industry Regulatory 
Authority, Inc.; Notice of Designation of a Longer Period for 
Commission Action on a Proposed Rule Change To Require an Indicator 
When a TRACE Report Does Not Reflect a Commission or Mark-Up/Mark-Down

September 10, 2015.
    On July 20, 2015, Financial Industry Regulatory Authority, Inc. 
(``FINRA'') 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 amend FINRA Rule 6730 (Transaction Reporting) 
to require an indicator when the TRACE report does not reflect a 
commission or mark-up/mark-down. The proposed rule change was published 
for comment in the Federal Register on August 7, 2015.\3\ The 
Commission has received two comment letters regarding the proposed rule 
change.\4\
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    \1\ 15 U.S.C.78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 75588 (August 3, 
2015), 80 FR 47546.
    \4\ See letter from Sean Davy, Managing Director, Securities 
Industry and Financial Markets Association, to Elizabeth M. Murphy, 
Secretary, Commission, dated August 27, 2015 and letter from Michael 
Nicholas, Chief Executive Officer, Bond Dealers of America, to 
Secretary, Commission, dated August 28, 2015.
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    Section 19(b)(2) of the Act \5\ provides that, within 45 days of 
the publication of the 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 Commission is extending this 45-day time 
period.
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    \5\ 15 U.S.C. 78s(b)(2).
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    The Commission finds that it is appropriate to designate a longer 
period within which to take action on the proposed rule change so that 
it has sufficient time to consider the proposed rule change and issues 
raised in the comment letters. Accordingly, the Commission, pursuant to 
Section

[[Page 55672]]

19(b)(2) of the Act,\6\ designates November 5, 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 Number FINRA-2015-026).
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    \6\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(31).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-23211 Filed 9-15-15; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices 55671 investors and the public interest, the and Exchange Commission, 100 F Street SECURITIES AND EXCHANGE proposed rule change has become NE., Washington, DC 20549–1090. COMMISSION effective pursuant to Section 19(b)(3)(A) of the Act 18 and Rule 19b–4(f)(6) All submissions should refer to File [Release No. 34–75875; File No. SR–FINRA– thereunder.19 Number SR–ISE–2015–25. This file 2015–026] The Exchange has asked the number should be included on the subject line if email is used. To help the Self-Regulatory Organizations; Commission to waive the 30-day Financial Industry Regulatory operative delay so that the proposal may Commission process and review your comments more efficiently, please use Authority, Inc.; Notice of Designation become operative immediately upon of a Longer Period for Commission filing. The Exchange stated that waiver only one method. The Commission will post all comments on the Commission’s Action on a Proposed Rule Change To of the operative delay will permit the Require an Indicator When a TRACE Exchange to continue to provide access Internet Web site (http://www.sec.gov/ Report Does Not Reflect a Commission to subscribers interested in the Managed rules/sro.shtml). Copies of the or Mark-Up/Mark-Down Data Access Service program. The submission, all subsequent Commission believes that waiving the amendments, all written statements September 10, 2015. 30-day operative delay is consistent with respect to the proposed rule On July 20, 2015, Financial Industry with the protection of investors and the change that are filed with the Regulatory Authority, Inc. (‘‘FINRA’’) public interest. Therefore, the Commission, and all written filed with the Securities and Exchange Commission hereby waives the communications relating to the Commission (‘‘Commission’’), pursuant operative delay and designates the proposed rule change between the to Section 19(b)(1) of the Securities proposed rule change operative upon Commission and any person, other than Exchange Act of 1934 (‘‘Act’’) 1 and Rule filing.20 those that may be withheld from the 19b–4 thereunder,2 a proposed rule At any time within 60 days of the public in accordance with the change to amend FINRA Rule 6730 filing of the proposed rule change, the provisions of 5 U.S.C. 552, will be (Transaction Reporting) to require an Commission summarily may available for Web site viewing and indicator when the TRACE report does temporarily suspend such rule change if printing in the Commission’s Public not reflect a commission or mark-up/ it appears to the Commission that such mark-down. The proposed rule change Reference Room, 100 F Street NE., action is necessary or appropriate in the was published for comment in the Washington, DC 20549 on official public interest, for the protection of Federal Register on August 7, 2015.3 investors, or otherwise in furtherance of business days between the hours of The Commission has received two the purposes of the Act. If the 10:00 a.m. and 3:00 p.m. Copies of such comment letters regarding the proposed Commission takes such action, the filing also will be available for rule change.4 Commission shall institute proceedings inspection and copying at the principal Section 19(b)(2) of the Act 5 provides to determine whether the proposed rule office of the Exchange. All comments that, within 45 days of the publication should be approved or disapproved. received will be posted without change; of the notice of the filing of a proposed the Commission does not edit personal rule change, or within such longer IV. Solicitation of Comments identifying information from period up to 90 days as the Commission Interested persons are invited to submissions. You should submit only may designate if it finds such longer submit written data, views, and information that you wish to make period to be appropriate and publishes arguments concerning the foregoing, available publicly. All submissions its reasons for so finding, or as to which including whether the proposed rule should refer to File Number SR–ISE– the self-regulatory organization change is consistent with the Act. 2015–25, and should be submitted on or consents, the Commission shall either Comments may be submitted by any of before October 7, 2015. approve the proposed rule change, the following methods: disapprove the proposed rule change, or For the Commission, by the Division of Electronic Comments Trading and Markets, pursuant to delegated institute proceedings to determine authority.21 whether the proposed rule change • Use the Commission’s Internet should be disapproved. The comment form (http://www.sec.gov/ Commission is extending this 45-day rules/sro.shtml); or Robert W. Errett, time period. • Send an email to rule-comments@ Deputy Secretary. The Commission finds that it is sec.gov. Please include File Number SR– [FR Doc. 2015–23210 Filed 9–15–15; 8:45 am] appropriate to designate a longer period ISE–2015–25 on the subject line. BILLING CODE 8011–01–P within which to take action on the Paper Comments proposed rule change so that it has sufficient time to consider the proposed • Send paper comments in triplicate rule change and issues raised in the to Brent J. Fields, Secretary, Securities comment letters. Accordingly, the 18 15 Commission, pursuant to Section U.S.C. 78s(b)(3)(A). 19 17 CFR 240.19b–4(f)(6). As required under Rule 1 15 U.S.C.78s(b)(1). 19b–4(f)(6)(iii), the Exchange provided the 2 17 CFR 240.19b–4. Commission with written notice of its intent to file asabaliauskas on DSK7TPTVN1PROD with NOTICES 3 See Securities Exchange Act Release No. 75588 the proposed rule change, along with a brief description and the text of the proposed rule (August 3, 2015), 80 FR 47546. change, at least five business days prior to the date 4 See letter from Sean Davy, Managing Director, of filing of the proposed rule change, or such Securities Industry and Financial Markets shorter time as designated by the Commission. Association, to Elizabeth M. Murphy, Secretary, 20 For purposes only of waiving the 30-day Commission, dated August 27, 2015 and letter from operative delay, the Commission has also Michael Nicholas, Chief Executive Officer, Bond considered the proposed rule’s impact on Dealers of America, to Secretary, Commission, efficiency, competition, and capital formation. See dated August 28, 2015. 15 U.S.C. 78c(f). 21 17 CFR 200.30–3(a)(12). 5 15 U.S.C. 78s(b)(2). 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55672 Federal Register / Vol. 80, No. 179 / Wednesday, September 16, 2015 / Notices 19(b)(2) of the Act,6 designates Initial Rule Filing. The Commission is Additionally, in Amendment No. 1, November 5, 2015 as the date by which publishing this notice to solicit ICC added clarifying language regarding the Commission should either approve comments on Amendments No. 1 and 2 how the Risk Factor specific WWR loss or disapprove or institute proceedings to from interested persons and is thresholds are determined. The determine whether to disapprove the approving the proposed rule change, as proposed revisions clarify that the risk proposed rule change (File Number modified by Amendments No. 1 and 2, enhancements described in the Initial FINRA–2015–026). on an accelerated basis. Rule Filing will apply to all products For the Commission, by the Division of cleared by ICC within the Sovereign and II. Description of the Proposed Rule Banking 5 sectors. ICC represented that, Trading and Markets, pursuant to delegated Change authority.7 should it decide to expand its product Robert W. Errett, A. Description of the Initial Rule Filing offering to include credit default swap Deputy Secretary. contracts on its Clearing Participant In the Initial Rule Filing, ICC names, it will specifically file a separate [FR Doc. 2015–23211 Filed 9–15–15; 8:45 am] proposed changes to the ICC Risk proposed rule change with the BILLING CODE 8011–01–P Management Framework to incorporate Commission regarding the applicability risk model enhancements related to the of the GWWR framework to such General Wrong Way Risk (‘‘GWWR’’) SECURITIES AND EXCHANGE contracts. ICC has also updated its stress methodology. More specifically, ICC COMMISSION testing methodology to include proposed changing the ICC Risk additional analysis related to Clearing [Release No. 34–75887; File No. SR–ICC– Management Framework to extend the Participant WWR exposures. 2015–009] GWWR framework to the portfolio level. Currently, there exists no Clearing C. Description of Amendment No. 2 Self-Regulatory Organizations; ICE Participant-level cumulative GWWR On September 8, 2015, ICC filed Clear Credit LLC; Notice of Filing of requirement incorporated in the Jump- Amendment No. 2 to the proposed rule Amendments No. 1 and 2 and Order to-Default calculations. The change. ICC stated that the purpose of Granting Accelerated Approval of uncollateralized WWR exposure of a the amendment was to provide further Proposed Rule Change, as Modified by Risk Factor needs to exceed its clarity regarding the risk enhancements Amendments No. 1 and 2, To Revise corresponding WWR threshold in order described in the Initial Rule Filing. In the ICC Risk Management Framework to trigger WWR collateralization. Amendment No. 2, ICC revised its Risk According to ICC, the proposed Management Framework to include September 10, 2015. enhancement is introduced to account specific language regarding the jump-to- I. Introduction for the potential accumulation of default requirement related to the On May 28, 2015, ICE Clear Credit portfolio WWR through Risk Factor exposure to single name (‘‘SN’’) risk LLC (‘‘ICC’’) filed with the Securities specific WWR exposures. ICC asserts factors (‘‘RFs’’), which reflect outright and Exchange Commission that under the proposed approach, if the and index-derived single name (‘‘Commission’’), pursuant to Section cumulative uncollateralized exposure positions. Additionally, ICC added 19(b)(1) of the Securities Exchange Act exceeds a pre-determined portfolio language clarifying that the GWWR of 1934 (‘‘Act’’) 1 and Rule 19b–4 GWWR threshold, the amount above the analysis is applied to all cleared SN RFs thereunder,2 a proposed rule change to threshold is collateralized. within the Sovereign and Banking make revisions to the ICC Risk B. Description of Amendment No. 1 sectors, is applicable to post index- Management Framework (SR–ICC– decomposition positions and reflects the On September 1, 2015, ICC filed 2015–009). The proposed rule change combined exposure resulting from Amendment No. 1 to the proposed rule was published for comment in the outright and index-derived SN change. ICC stated that the purpose of Federal Register on June 12, 2015.3 The positions. ICC also added language the amendment was to provide further Commission did not receive comments regarding the determination of clarity regarding the risk enhancements on the proposed rule change. On July correlation parameters needed for described in the Initial Rule Filing. ICC 27, 2015, the Commission extended the GWWR computations, specifically the proposed to revise its Risk Management time period in which to either approve, quantification of loss-given-default Framework to include specific language disapprove, or institute proceedings to resulting from correlated defaults. regarding the pre-determined portfolio determine whether to disapprove the Finally, ICC updated its Stress Testing GWWR threshold. Specifically, ICC proposed rule change to September 10, Framework to include additional added clarifying language setting the 2015.4 On September 1, 2015, ICC filed analysis related to GWWR exposures for minimum and maximum value of the Amendment No. 1 to the proposed rule Clearing Participants’ portfolios. As parameter. According to ICC, the value change. On September 8, 2015, ICC filed further described in the Stress Testing of the parameter must be greater than, Amendment No. 2 to the proposed rule Framework, a portfolio of highly or equal to, the value of the greatest Risk change. As discussed below, correlated RFs is created and is further Factor specific WWR threshold level. Amendments No. 1 and 2 are intended subjected to additional stress testing ICC stated that the parameter is further to provide further clarification to the analyses to uncover pockets of increased constrained not to exceed the sum of the risk due to adverse market realizations minimum value and the value of the 6 Id. for the highly correlated factors. ICC has average of all Risk Factor-specific WWR asabaliauskas on DSK7TPTVN1PROD with NOTICES 7 17 CFR 200.30–3(a)(31). also represented that it intends to 1 15 U.S.C. 78s(b)(1). thresholds (excluding the greatest Risk submit a separate filing regarding its 2 17 CFR 240.19b–4. Factor specific WWR threshold). ICC Stress Testing Framework, which 3 Securities Exchange Act Release No. 34–75119 proposes to set the initial GWWR global contains the aforementioned enhanced (Jun. 8, 2015), 80 FR 33573 (Jun. 12, 2015) (SR–ICC– parameter equal to the minimum value, 2015–009) (hereinafter referred to as the ‘‘Initial stress testing analyses. the greatest Risk Factor specific WWR Rule Filing’’). 4 Securities Exchange Act Release No. 34–75529 threshold, and will not increase the 5 ICC stated that the Banking sector attribution (Jul. 27, 2015), 80 FR 45688 (Jul. 31, 2015) (SR–ICC– parameter value prior to March 31, follows the Bloomberg Industry Classification 2015–009). 2016. system (BICS). VerDate Sep<11>2014 18:18 Sep 15, 2015 Jkt 235001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\16SEN1.SGM 16SEN1


Document Created: 2018-02-26 10:16:42
Document Modified: 2018-02-26 10:16:42
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 55671 
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