81 FR 18662 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Single Name Backloading Incentive Program
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 62 (March 31, 2016)
Federal Register Volume 81, Issue 62 (March 31, 2016)
| Page Range | 18662-18664 | |
| FR Document | 2016-07195 |
[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)] [Notices] [Pages 18662-18664] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-07195] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77446; File No. SR-ICC-2016-004] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Single Name Backloading Incentive Program March 25, 2016. 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 March 21, 2016, ICE Clear Credit LLC (``ICC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared primarily by ICC. ICC filed the proposed rule change 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 extend ICC's 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 on the proposed [[Page 18663]] 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 changes are intended to extend a single name backloading incentive program for client account clearing of single name CDS contracts.\5\ The changes are designed to incentivize market participants to submit additional transactions to ICC for clearing. Under the program, clients receive a 50% discount on ICC clearing fees for backloaded single name CDS contracts. The discount is paid back as a rebate directly to the client or through the client's Clearing Participant. ICC plans to extend the existing backloading program, set to expire March 18, 2016, until September 30, 2016. As a result of the extended program, contracts must have an execution date prior to September 1, 2016 to be eligible for the rebate program. This date was chosen to incentivize clients to backload positions which were established after the original program start date. ICC is extending the program to allow market participants the opportunity to backload new single name CDS contracts that ICC has launched since the last program extension date. Additionally, the program extension allows market participants time to prepare and adapt to industry changes regarding the reduction of frequency for which single name CDS contracts roll to the new on-the-run contract. --------------------------------------------------------------------------- \5\ On July 30, 2015, ICE Clear Credit initially filed the proposed rule changes to implement a single name backloading incentive program for client account clearing of single name CDS contracts. See Securities Exchange Act Release No. 34-75656 (August 10, 2015), 80 FR 48938 (August 14, 2015) (SR-ICC-2015-014). ICE Clear Credit filed to extend this program on December 14, 2015. See Securities Exchange Act Release No. 34-76786 (December 29, 2015), 81 FR 286 (January 5, 2016) (SR-ICC-2015-019). --------------------------------------------------------------------------- ICC believes the proposed rule changes are consistent with the requirements of the Act including Section 17A of the Act.\6\ More specifically, the proposed rule changes establish or change a member due, fee or other charge imposed by ICC under Section 19(b)(3)(A)(ii) \7\ of the Act and Rule 19b-4(f)(2) \8\ thereunder. ICC believes the proposed rule changes are consistent with the requirements of the Act and the rules and regulations thereunder applicable to ICC, in particular, to Section 17A(b)(3)(D),\9\ because the proposed fee changes apply equally to all market participants clearing backloaded single name CDS contracts in client accounts and therefore the proposed changes provide for the equitable allocation of reasonable dues, fees and other charges among its participants. As such, the proposed changes are appropriately filed pursuant to Section 19(b)(3)(A) \10\ of the Act and paragraph (f)(2) of Rule 19b-4 thereunder. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78q-1. \7\ 15 U.S.C. 78s(b)(3)(A)(ii). \8\ 17 CFR 240.19b-4(f)(2). \9\ 15 U.S.C. 78q-1(b)(3)(D). \10\ 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 changes modify 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 changes apply consistently across all eligible market participants and the implementation of such changes does not preclude the implementation of similar incentive programs by other market participants. Therefore, ICC does not believe the changes impose 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) \11\ of the Act and Rule 19b-4(f)(2) \12\ thereunder because the extension of the 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 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. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(3)(A). \12\ 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 [email protected]. Please include File Number SR-ICC-2016-004 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549. All submissions should refer to File Number SR-ICC-2016-004. 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 10:00 a.m. and 3:00 p.m. Copies of the filing also will 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 [[Page 18664]] should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ICC-2016-004 and should be submitted on or before April 21, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Brent J. Fields, Secretary. [FR Doc. 2016-07195 Filed 3-30-16; 8:45 am] BILLING CODE 8011-01-P
![18662 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Notices
ICE Clear Europe’s view, the proposed rule change, the Commission you wish to make available publicly. All
amendments will promote the prompt summarily may temporarily suspend submissions should refer to File
and accurate clearance and settlement of such rule change if it appears to the Number SR–ICEEU–2016–005 and
equity futures and option transactions, Commission that such action is should be submitted on or before April
and are thus consistent with the necessary or appropriate in the public 21, 2016.
requirements of Section 17A of the Act interest, for the protection of investors, For the Commission, by the Division of
and the regulations thereunder. or otherwise in furtherance of the Trading and Markets, pursuant to delegated
purposes of the Act. authority.10
B. Self-Regulatory Organization’s
Statement on Burden on Competition IV. Solicitation of Comments Brent J. Fields,
Secretary.
ICE Clear Europe does not believe the Interested persons are invited to
[FR Doc. 2016–07194 Filed 3–30–16; 8:45 am]
proposed changes to the rules would submit written data, views, and
arguments concerning the foregoing, BILLING CODE 8011–01–P
have any impact, or impose any burden,
on competition not necessary or including whether the proposed rule
appropriate in furtherance of the change is consistent with the Act.
Comments may be submitted by any of SECURITIES AND EXCHANGE
purpose of the Act. ICE Clear Europe is
the following methods: COMMISSION
adopting the amendments to [sic] the
Delivery Procedures and Clearing Electronic Comments [Release No. 34–77446; File No. SR–ICC–
Procedures in order to clarify certain 2016–004]
aspects of the exercise and settlement of • Use the Commission’s Internet
equity futures and options currently comment form (http://www.sec.gov/ Self-Regulatory Organizations; ICE
cleared by ICE Clear Europe. ICE Clear rules/sro.shtml) or Clear Credit LLC; Notice of Filing and
Europe does not believe the adoption of • Send an email to rule-comments@ Immediate Effectiveness of Proposed
related Delivery Procedures and sec.gov. Please include File Number SR– Rule Change To Extend Single Name
Clearing Procedures amendments would ICEEU–2016–005 on the subject line. Backloading Incentive Program
materially affect the cost of clearing Paper Comments March 25, 2016.
these products, adversely affect access • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
to clearing in these products for to Secretary, Securities and Exchange Securities Exchange Act of 1934
Clearing Members or their customers, or Commission, 100 F Street NE., (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
otherwise adversely affect competition Washington, DC 20549–1090. notice is hereby given that on March 21,
in clearing services. 2016, ICE Clear Credit LLC (‘‘ICC’’) filed
All submissions should refer to File
C. Self-Regulatory Organization’s Number SR–ICEEU–2016–005. This file with the Securities and Exchange
Statement on Comments on the number should be included on the Commission (‘‘Commission’’) the
Proposed Rule Change Received From subject line if email is used. To help the proposed rule change as described in
Members, Participants or Others Commission process and review your Items I, II, and III below, which Items
comments more efficiently, please use have been prepared primarily by ICC.
Written comments relating to the
only one method. The Commission will ICC filed the proposed rule change
proposed changes to the rules have not
post all comments on the Commission’s pursuant to Section 19(b)(3)(A) of the
been solicited or received. ICE Clear
Internet Web site (http://www.sec.gov/ Act,3 and Rule 19b–4(f)(2) 4 thereunder,
Europe will notify the Commission of
rules/sro.shtml). Copies of the so that the proposal was effective upon
any written comments received by ICE
submission, all subsequent filing with the Commission. The
Clear Europe.
amendments, all written statements Commission is publishing this notice to
III. Date of Effectiveness of the with respect to the proposed rule solicit comments on the proposed rule
Proposed Rule Change and Timing for change that are filed with the change from interested persons.
Commission Action Commission, and all written I. Self-Regulatory Organization’s
The foregoing rule change has become communications relating to the Statement of the Terms of Substance of
effective upon filing pursuant to Section proposed rule change between the the Proposed Rule Change
19(b)(3)(A) 8 of the Act and Rule 19b– Commission and any person, other than
those that may be withheld from the The purpose of the proposed rule
4(f)(4)(ii) 9 thereunder because it effects
public in accordance with the change is to extend ICC’s single name
a change in an existing service of a
provisions of 5 U.S.C. 552, will be backloading incentive program for client
registered clearing agency that primarily
available for Web site viewing and account clearing of single name credit
affects the clearing operations of the
printing in the Commission’s Public default swap (‘‘CDS’’) contracts.
clearing agency with respect to products
that are not securities, including futures Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
that are not security futures, swaps that Washington, DC 20549, on official Statement of the Purpose of, and
are not security-based swaps or mixed business days between the hours of Statutory Basis for, the Proposed Rule
swaps, and forwards that are not 10:00 a.m. and 3:00 p.m. Copies of such Change
security forwards, and does not filings will also be available for In its filing with the Commission, ICC
significantly affect any securities inspection and copying at the principal included statements concerning the
clearing operations of the clearing office of ICE Clear Europe and on ICE purpose of and basis for the proposed
mstockstill on DSK4VPTVN1PROD with NOTICES
agency or any rights or obligations of the Clear Europe’s Web site at https:// rule change and discussed any
clearing agency with respect to www.theice.com/clear-europe/ comments it received on the proposed
securities clearing or persons using such regulation#rule-filings.
securities-clearing service. At any time All comments received will be posted 10 17 CFR 200.30–3(a)(12).
within 60 days of the filing of the without change; the Commission does 1 15 U.S.C. 78s(b)(1).
not edit personal identifying 2 17 CFR 240.19b–4.
8 15 U.S.C. 78s(b)(3)(A). information from submissions. You 3 15 U.S.C. 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(4)(ii). should submit only information that 4 17 CFR 240.19b–4(f)(2).
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![18664 Federal Register / Vol. 81, No. 62 / Thursday, March 31, 2016 / Notices
should submit only information that statements may be examined at the transactions in securities, to remove
you wish to make available publicly. All places specified in Item IV below. The impediments to and perfect the
submissions should refer to File Exchange has prepared summaries, set mechanism of a free and open market
Number SR–ICC–2016–004 and should forth in sections A, B, and C below, of and a national market system and, in
be submitted on or before April 21, the most significant aspects of such general, to protect investors and the
2016. statements. public interest.
For the Commission, by the Division of
The Exchange believes the proposed
A. Self-Regulatory Organization’s changes are consistent with just and
Trading and Markets, pursuant to delegated Statement of the Purpose of, and
authority.13 equitable principles of trade because
Statutory Basis for, the Proposed Rule they delete outdated and potentially
Brent J. Fields, Change
Secretary. confusing rules. The rule that the
1. Purpose Exchange proposes to delete is
[FR Doc. 2016–07195 Filed 3–30–16; 8:45 am]
The purpose of this proposed rule anachronistic and does not have
BILLING CODE 8011–01–P
change is to delete Rule 756, which application to the Exchange’s current
deals with accounts of general partners. function. Thus, removing it from the
SECURITIES AND EXCHANGE As discussed below, the Exchange has rules promotes clarity and eliminates
COMMISSION determined that these rules are potential confusion caused by allowing
anachronistic and no longer serve a it to remain.
[Release No. 34–77443; File No. SR–Phlx–
2016–37] purpose. Consequently, the Exchange is B. Self-Regulatory Organization’s
proposing to eliminate the rules from Statement on Burden on Competition
Self-Regulatory Organizations; the rulebook to avoid any confusion that The proposed rule change does not
NASDAQ PHLX LLC; Notice of Filing may be caused by retaining them. impose any burden on competition that
and Immediate Effectiveness of Rule 756 is not necessary or appropriate in
Proposed Rule Change To Delete Rule furtherance of the purposes of the Act.
756 Rule 756 concerns the accounts of
general partners. The rule requires that Rather it is designed to promote
March 25, 2016. no member organization that is a competition among exchanges by
Pursuant to Section 19(b)(1) of the partnership shall carry an account for a removing archaic rules in comparison to
Securities Exchange Act of 1934 general partner of another member the rules of other exchanges. Last, the
(‘‘Act’’), 1 and Rule 19b–4 thereunder,2 organization that is a partnership proposed changes promote clarity in the
without the prior written consent of application of the Exchange’s rules by
notice is hereby given that on March 18,
another general partner of such other eliminating unneeded rules.
2016, NASDAQ PHLX LLC (‘‘Phlx’’ or
‘‘Exchange’’) filed with the Securities organization. It also requires that C. Self-Regulatory Organization’s
and Exchange Commission duplicate reports and monthly Statement on Comments on the
(‘‘Commission’’) the proposed rule statements shall be sent to a general Proposed Rule Change Received From
change as described in Items I and II, partner of the organization (other than Members, Participants, or Others
below, which Items have been prepared the partner for whom the account is No written comments were either
by the Exchange. The Commission is carried) designated in such consent.
solicited or received.
publishing this notice to solicit Further, the rule requires that all
comments on the proposed rule change clearance transactions for a general III. Date of Effectiveness of the
from interested persons. partner of another member organization Proposed Rule Change and Timing for
that is a partnership shall be reported by Commission Action
I. Self-Regulatory Organization’s the clearing firm to a general partner of
Statement of the Terms of Substance of Because the foregoing proposed rule
such other organization who has no change does not: (i) Significantly affect
the Proposed Rule Change interest in such transactions. the protection of investors or the public
The Exchange proposes to delete Rule The Exchange believes that the rule is
interest; (ii) impose any significant
756 from the Phlx rules. no longer relevant. The rule was
burden on competition; and (iii) become
The text of the proposed rule change adopted at a time when the Exchange
operative for 30 days from the date on
is available on the Exchange’s Web site had a general partner membership
which it was filed, or such shorter time
at http:// classification. That classification is no
as the Commission may designate, it has
nasdaqomxphlx.cchwallstreet.com/, at longer in existence. Accordingly, the
become effective pursuant to Section
the principal office of the Exchange, and Exchange does not believe the rule
19(b)(3)(A) of the Act 5 and Rule 19b–
at the Commission’s Public Reference serves a regulatory purpose and it is
4(f)(6) thereunder.6
Room. accordingly proposing to delete the rule. A proposed rule change filed
II. Self-Regulatory Organization’s 2. Statutory Basis pursuant to Rule 19b–4(f)(6) normally
Statement of the Purpose of, and The Exchange believes that its does not become operative for 30 days
Statutory Basis for, the Proposed Rule proposal is consistent with Section 6(b) after the date of its filing. However,
Change of the Act,3 in general, and furthers the pursuant to Rule 19b–4(f)(6)(iii), the
objectives of Section 6(b)(5) of the Act,4 Commission may designate a shorter
In its filing with the Commission, the
Exchange included statements in particular, in that it is designed to 5 15 U.S.C. 78s(b)(3)(A).
mstockstill on DSK4VPTVN1PROD with NOTICES
concerning the purpose of and basis for prevent fraudulent and manipulative 6 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
the proposed rule change and discussed acts and practices, to promote just and 4(f)(6)(iii) requires the Exchange to give the
any comments it received on the equitable principles of trade, to foster Commission written notice of the Exchange’s intent
proposed rule change. The text of these cooperation and coordination with to file the proposed rule change, along with a brief
description and text of the proposed rule change,
persons engaged in facilitating at least five business days prior to the date of filing
13 17 CFR 200.30–3(a)(12). of the proposed rule change, or such shorter time
1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78f(b). as designated by the Commission. In the instant
2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5). filing, the Commission waives this requirement.
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Document Created: 2016-03-31 00:55:08
Document Modified: 2016-03-31 00:55:08
| 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 | 81 FR 18662 |
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