81 FR 286 - 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 2 (January 5, 2016)
Federal Register Volume 81, Issue 2 (January 5, 2016)
| Page Range | 286-287 | |
| FR Document | 2015-33113 |
[Federal Register Volume 81, Number 2 (Tuesday, January 5, 2016)] [Notices] [Pages 286-287] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-33113] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-76786; File No. SR-ICC-2015-019] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Extend Single Name Backloading Incentive Program December 29, 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 December 14, 2015, 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 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 [[Page 287]] 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 December 1, 2015, until March 18, 2016. As a result of the extended program, contracts must have an execution date prior to February 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. --------------------------------------------------------------------------- \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). The text of the proposed rule change for rule filing SR-ICC-2015-014 can also be found on ICC's Web site at https://www.theice.com/clear-credit/regulation. --------------------------------------------------------------------------- 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-2015-019 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-2015-019. 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 should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ICC-2015-019 and should be submitted on or before January 26, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\13\ --------------------------------------------------------------------------- \13\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Jill M. Peterson, Assistant Secretary. [FR Doc. 2015-33113 Filed 1-4-16; 8:45 am] BILLING CODE 8011-01-P
![286 Federal Register / Vol. 81, No. 2 / Tuesday, January 5, 2016 / Notices
dues, fees, and other charges among its Comments may be submitted by any of SECURITIES AND EXCHANGE
participants. The proposed rule changes the following methods: COMMISSION
would align NSCC’s fees with the costs
Electronic Comments
of delivering services to NSCC members, [Release No. 34–76786; File No. SR–ICC–
and would allocate those fees equitably • Use the Commission’s Internet 2015–019]
among the NSCC members that use comment form (http://www.sec.gov/
those services. Further, the proposed rules/sro.shtml); or Self-Regulatory Organizations; ICE
increase to fees for Aged Delivery Clear Credit LLC; Notice of Filing and
Advisories, Aged Cancel Advisories, • Send an email to rule-comments@ Immediate Effectiveness of Proposed
and Aged Comparison Advisories would sec.gov. Please include File Number SR– Rule Change To Extend Single Name
encourage more timely action by the NSCC–2015–009 on the subject line. Backloading Incentive Program
recipients of these advisories, which, in Paper Comments
turn, would reduce the frequency of December 29, 2015.
these fees and align the fees associated • Send paper comments in triplicate Pursuant to Section 19(b)(1) of the
with the OW service with the costs of to Secretary, Securities and Exchange Securities Exchange Act of 1934
delivering that service to NSCC’s Commission, 100 F Street NE., (‘‘Act’’) 1 and Rule 19b–4 thereunder 2
Members. Therefore, the proposed rule Washington, DC 20549–1090. notice is hereby given that on December
changes would comply with section 14, 2015, ICE Clear Credit LLC (‘‘ICC’’)
All submissions should refer to File filed with the Securities and Exchange
17A(b)(3)(D).15 Number SR–NSCC–2015–009. This file Commission (‘‘Commission’’) the
(B) Clearing Agency’s Statement on number should be included on the proposed rule change as described in
Burden on Competition subject line if email is used. To help the Items I, II, and III below, which Items
Commission process and review your have been prepared primarily by ICC.
The proposed rule changes would not comments more efficiently, please use
have any impact, or impose any burden, ICC filed the proposed rule change
only one method. The Commission will pursuant to Section 19(b)(3)(A) of the
on competition. As stated above, the post all comments on the Commission’s
proposed changes would align NSCC’s Act,3 and Rule 19b–4(f)(2) 4 thereunder,
Internet Web site (http://www.sec.gov/ so that the proposal was effective upon
fees with the costs of delivering rules/sro.shtml). Copies of the
associated services to its members, and filing with the Commission. The
submission, all subsequent Commission is publishing this notice to
would not disproportionally impact any amendments, all written statements
NSCC members. solicit comments on the proposed rule
with respect to the proposed rule change from interested persons.
(C) Clearing Agency’s Statement on change that are filed with the
Comments on the Proposed Rule Commission, and all written I. Self-Regulatory Organization’s
Change Received From Members, communications relating to the Statement of the Terms of Substance of
Participants, or Others proposed rule change between the the Proposed Rule Change
Commission and any person, other than The purpose of the proposed rule
Written comments relating to the those that may be withheld from the change is to extend ICC’s single name
proposed rule change have not yet been public in accordance with the backloading incentive program for client
solicited or received. NSCC will notify provisions of 5 U.S.C. 552, will be account clearing of single name credit
the Commission of any written available for Web site viewing and default swap (‘‘CDS’’) contracts.
comments received by NSCC. printing in the Commission’s Public
Reference Room, 100 F Street NE., II. Self-Regulatory Organization’s
III. Date of Effectiveness of the Statement of the Purpose of, and
Proposed Rule Change, and Timing for Washington, DC 20549 on official
business days between the hours of Statutory Basis for, the Proposed Rule
Commission Action Change
10:00 a.m. and 3:00 p.m. Copies of the
The foregoing rule change has become filing also will be available for In its filing with the Commission, ICC
effective pursuant to section inspection and copying at the principal included statements concerning the
19(b)(3)(A) 16 of the Act and paragraph office of NSCC and on DTCC’s Web site purpose of and basis for the proposed
(f) of Rule 19b–4 17 thereunder. At any (http://dtcc.com/legal/sec-rule- rule change and discussed any
time within 60 days of the filing of the filings.aspx). All comments received comments it received on the proposed
proposed rule change, the Commission will be posted without change; the rule change. The text of these statements
summarily may temporarily suspend Commission does not edit personal may be examined at the places specified
such rule change if it appears to the identifying information from in Item IV below. ICC has prepared
Commission that such action is submissions. You should submit only summaries, set forth in sections A, B,
necessary or appropriate in the public information that you wish to make and C below, of the most significant
interest, for the protection of investors, available publicly. All submissions aspects of these statements.
or otherwise in furtherance of the should refer to File Number SR–NSCC–
purposes of the Act. 2015–009 and should be submitted on A. Self-Regulatory Organization’s
or before January 26, 2016. Statement of the Purpose of, and
IV. Solicitation of Comments Statutory Basis for, the Proposed Rule
For the Commission, by the Division of Change
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Interested persons are invited to Trading and Markets, pursuant to delegated
submit written data, views and authority.18 The proposed changes are intended to
arguments concerning the foregoing, Jill M. Peterson, extend a single name backloading
including whether the proposed rule incentive program for client account
Assistant Secretary.
change is consistent with the Act.
[FR Doc. 2015–33114 Filed 1–4–16; 8:45 am] 1 15 U.S.C. 78s(b)(1).
15 15 U.S.C. 78q–1(b)(3)(D). BILLING CODE 8011–01–P 2 17 CFR 240.19b–4.
16 15 U.S.C. 78s(b)(3)(A). 3 15 U.S.C. 78s(b)(3)(A).
17 17 CFR 240.19b–4(f). 18 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(2).
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![Federal Register / Vol. 81, No. 2 / Tuesday, January 5, 2016 / Notices 287
clearing of single name CDS contracts.5 to the number of client participants that • Send an email to rule-comments@
The changes are designed to incentivize may participate in the backloading sec.gov. Please include File Number SR–
market participants to submit additional incentive program; it will be open to all ICC–2015–019 on the subject line.
transactions to ICC for clearing. Under clients and rebates will be applied to all
the program, clients receive a 50% transaction fees for client accounts Paper Comments
discount on ICC clearing fees for clearing eligible single name CDS • Send paper comments in triplicate
backloaded single name CDS contracts. contracts. As such, the proposed to Secretary, Securities and Exchange
The discount is paid back as a rebate changes apply consistently across all
Commission, 100 F Street NE.,
directly to the client or through the eligible market participants and the
client’s Clearing Participant. ICC plans Washington, DC 20549.
implementation of such changes does
to extend the existing backloading not preclude the implementation of All submissions should refer to File
program, set to expire December 1, similar incentive programs by other Number SR–ICC–2015–019. This file
2015, until March 18, 2016. As a result market participants. Therefore, ICC does number should be included on the
of the extended program, contracts must not believe the changes impose any subject line if email is used. To help the
have an execution date prior to February burden on competition that is Commission process and review your
1, 2016 to be eligible for the rebate inappropriate in furtherance of the comments more efficiently, please use
program. This date was chosen to purposes of the Act. only one method. The Commission will
incentivize clients to backload positions
C. Self-Regulatory Organization’s post all comments on the Commission’s
which were established after the
Statement on Comments on the Internet Web site (http://www.sec.gov/
original program start date.
ICC believes the proposed rule Proposed Rule Change Received From rules/sro.shtml). Copies of the
changes are consistent with the Members, Participants or Others submission, all subsequent
requirements of the Act including amendments, all written statements
Written comments relating to the with respect to the proposed rule
Section 17A of the Act.6 More
proposed rule change have not been change that are filed with the
specifically, the proposed rule changes
solicited or received. ICC will notify the Commission, and all written
establish or change a member due, fee
Commission of any written comments communications relating to the
or other charge imposed by ICC under
received by ICC. proposed rule change between the
Section 19(b)(3)(A)(ii) 7 of the Act and
Rule 19b–4(f)(2) 8 thereunder. ICC III. Date of Effectiveness of the Commission and any person, other than
believes the proposed rule changes are Proposed Rule Change and Timing for those that may be withheld from the
consistent with the requirements of the Commission Action public in accordance with the
Act and the rules and regulations provisions of 5 U.S.C. 552, will be
thereunder applicable to ICC, in The foregoing rule change has become available for Web site viewing and
particular, to Section 17A(b)(3)(D),9 effective upon filing pursuant to Section printing in the Commission’s Public
because the proposed fee changes apply 19(b)(3)(A) 11 of the Act and Rule 19b– Reference Room, 100 F Street NE.,
equally to all market participants 4(f)(2) 12 thereunder because the Washington, DC 20549, on official
clearing backloaded single name CDS extension of the single name business days between the hours of
contracts in client accounts and backloading incentive program for client
10:00 a.m. and 3:00 p.m. Copies of the
therefore the proposed changes provide account clearing of single name CDS
filing also will be available for
for the equitable allocation of reasonable contracts results in changes which
establish or change a due, fee, or other inspection and copying at the principal
dues, fees and other charges among its office of ICE Clear Credit and on ICE
participants. As such, the proposed charge applicable ICC’s participants. At
any time within 60 days of the filing of Clear Credit’s Web site at https://
changes are appropriately filed pursuant
the proposed rule change, the www.theice.com/clear-credit/regulation.
to Section 19(b)(3)(A) 10 of the Act and
paragraph (f)(2) of Rule 19b–4 Commission summarily may All comments received will be posted
thereunder. temporarily suspend such rule change if without change; the Commission does
it appears to the Commission that such not edit personal identifying
B. Self-Regulatory Organization’s action is necessary or appropriate in the information from submissions. You
Statement on Burden on Competition public interest, for the protection of should submit only information that
ICC does not believe the proposed investors, or otherwise in furtherance of you wish to make available publicly. All
rule change would have any impact, or the purposes of the Act. submissions should refer to File
impose any burden, on competition. Number SR–ICC–2015–019 and should
The proposed changes modify pricing IV. Solicitation of Comments
be submitted on or before January 26,
for client account clearing of single Interested persons are invited to 2016.
name CDS contracts. There is no limit submit written data, views, and For the Commission, by the Division of
5 On
arguments concerning the foregoing, Trading and Markets, pursuant to delegated
July 30, 2015, ICE Clear Credit initially filed
the proposed rule changes to implement a single
including whether the proposed rule authority.13
name backloading incentive program for client change is consistent with the Act.
Jill M. Peterson,
account clearing of single name CDS contracts. See Comments may be submitted by any of
Securities Exchange Act Release No. 34–75656 the following methods: Assistant Secretary.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
(August 10, 2015), 80 FR 48938 (August 14, 2015) [FR Doc. 2015–33113 Filed 1–4–16; 8:45 am]
(SR–ICC–2015–014). The text of the proposed rule Electronic Comments
change for rule filing SR–ICC–2015–014 can also be BILLING CODE 8011–01–P
found on ICC’s Web site at https://www.theice.com/ • Use the Commission’s Internet
clear-credit/regulation.
6 15 U.S.C. 78q–1. comment form (http://www.sec.gov/
7 15 U.S.C. 78s(b)(3)(A)(ii). rules/sro.shtml); or
8 17 CFR 240.19b–4(f)(2).
9 15 U.S.C. 78q–1(b)(3)(D). 11 15 U.S.C. 78s(b)(3)(A).
10 15 U.S.C. 78s(b)(3)(A). 12 17 CFR 240.19b–4(f)(2). 13 17 CFR 200.30–3(a)(12).
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Document Created: 2016-01-05 01:46:27
Document Modified: 2016-01-05 01:46:27
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 81 FR 286 |
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