81 FR 69122 - Order Extending a Temporary Exemption From Compliance With Rules 13n-1 to 13n-12 Under the Securities Exchange Act of 1934

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 193 (October 5, 2016)

Page Range		69122-69122
FR Document		2016-23998
Federal Register, Volume 81 Issue 193 (Wednesday, October 5, 2016)
[Federal Register Volume 81, Number 193 (Wednesday, October 5, 2016)]
[Notices]
[Page 69122]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-23998]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78975]


Order Extending a Temporary Exemption From Compliance With Rules 
13n-1 to 13n-12 Under the Securities Exchange Act of 1934

September 29, 2016.

I. Introduction

    The Securities and Exchange Commission (``Commission'') is 
extending certain exemptions previously granted in connection with 
requirements applicable to security-based swap data repositories.
    On March 18, 2016, pursuant to its authority in Section 36 of the 
Securities Exchange Act of 1934 (``Exchange Act''), the Commission 
granted a temporary exemption from compliance with Exchange Act Rules 
13n-1 to 13n-12 until June 30, 2016, and at the same time extended 
exemptions from Exchange Act Sections 13(n)(5)(D)(i), 13(n)(5)(F), 
13(n)(5)(G), 13(n)(5)(H), 13(n)(7)(A), 13(n)(7)(B), 13(n)(7)(C) and 
29(b) that had been provided in the DFA Effective Date Order \1\ (``SDR 
Relief''). The Commission's March 18, 2016 order provides that the SDR 
Relief will expire on the earlier of (1) the date the Commission grants 
registration to an SDR or (2) June 30, 2016.\2\ The Commission granted 
those exemptions to help facilitate the potential submission of SDR 
applications.
---------------------------------------------------------------------------

    \1\ See Temporary Exemptions and Other Temporary Relief, 
Together with Information on Compliance Dates for New Provisions of 
the Exchange Act Applicable to Security-Based Swaps, Exchange Act 
Release No. 64678 (June 15, 2011), 76 FR 36287 (June 22, 2011) (the 
``DFA Effective Date Order'').
    \2\ See Exchange Act Release No. 77400 (Mar. 18, 2016), 81 FR 
15599 (Mar. 23, 2016) (``March 2016 SDR Section 36 Order'').
---------------------------------------------------------------------------

    On June 30, 2016, the Commission extended the SDR Relief until 
October 5, 2016 to allow it additional time to review and consider 
issues related to the applications to register with the Commission as 
SDRs submitted by DTCC Data Repository (U.S.) LLC (``DDR'') and ICE 
Trade Vault, LLC (``ICE Trade Vault'').\3\
---------------------------------------------------------------------------

    \3\ See Exchange Act Release No. 77699 (Apr. 22, 2016), 81 FR 
25475 (Apr. 28, 2016) (``ICE Trade Vault Notice'') and Exchange Act 
Release No. 34-78216 (June 30, 2016), 81 FR 44379 (July 7, 2016) 
(``DDR Notice'').
---------------------------------------------------------------------------

    To allow the Commission additional time to review these 
applications prior to the compliance date for Rules 13n-1 to 13n-12, as 
currently amended, (``SDR Rules'') and the expiration of the SDR 
Relief, the Commission is extending the exemptions granted in the June 
2016 order.\4\
---------------------------------------------------------------------------

    \4\ This relief applies to Rules 13n-1 to 13n-12 as amended, 
including amendments to Rule 13n-4 adopted by the Commission on 
August 29, 2016. See Exchange Act Release No. 78716 (Aug. 29, 2016), 
81 FR 60585 (Sept. 2, 2016).
---------------------------------------------------------------------------

II. Discussion

    The SDR Rules Release \5\ states that SDRs were required to be in 
compliance with the SDR Rules by March 18, 2016. The SDR Rules Release 
also notes that, absent an exemption, any SDR must be registered with 
the Commission and in compliance with the federal securities laws and 
the rules and regulations thereunder (including the applicable Dodd-
Frank Act provisions and all of the SDR Rules).\6\ Rule 13n-1(c) 
provides that, within 90 days of the date of the publication of notice 
of the filing of an application for registration (or within such longer 
period as to which the applicant consents), the Commission will either 
grant the registration by order or institute proceedings to determine 
whether registration should be granted or denied.
---------------------------------------------------------------------------

    \5\ See Exchange Act Release No. 74246 (Feb. 11, 2015), 80 FR 
14438 (Mar. 19, 2015) (``SDR Rules Release'').
    \6\ See id., 80 FR at 14456.
---------------------------------------------------------------------------

    Two entities have filed applications to register with the 
Commission as SDRs. ICE Trade Vault filed with the Commission a Form 
SDR seeking registration as an SDR on March 29, 2016 and amended that 
form on April 18, 2016. The Commission's notice of ICE Trade Vault's 
application for registration as an SDR was published in the Federal 
Register on April 28, 2016.\7\ The comment period closed on May 31, 
2016. To date, the Commission has received six comment letters on the 
ICE Trade Vault application.
---------------------------------------------------------------------------

    \7\ See ICE Trade Vault Notice.
---------------------------------------------------------------------------

    DDR filed with the Commission a Form SDR seeking registration as an 
SDR on April 6, 2016 and amended that form on April 25, 2016. The 
Commission's notice of DDR's application for registration as an SDR was 
published in the Federal Register on July 7, 2016.\8\ The comment 
period closed on August 8, 2016. To date, the Commission has received 
four comment letters on the DDR application.
---------------------------------------------------------------------------

    \8\ See DDR Notice.
---------------------------------------------------------------------------

    Subject to certain exceptions, Section 36 of the Exchange Act \9\ 
authorizes the Commission, by rule, regulation, or order, to exempt, 
either conditionally or unconditionally, any person, security, or 
transaction, or any class or classes of persons, securities, or 
transactions, from any provision or provisions of the Exchange Act or 
any rule or regulation thereunder, to the extent that such exemption is 
necessary or appropriate in the public interest, and is consistent with 
the protection of investors. The Commission finds that it is necessary 
and appropriate in the public interest, and consistent with the 
protection of investors, to grant a temporary exemption from compliance 
with the SDR Rules and extend the SDR Relief. The commenters on the DDR 
and ICE Trade Vault SDR applications have raised issues that require 
further review and consideration. The Commission does not believe that 
the October 5, 2016, compliance date provides sufficient time for 
adequate consideration of the comments and any possible amendments to 
the respective applications.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78mm.
---------------------------------------------------------------------------

    Therefore, to allow the Commission additional time prior to the 
compliance date for the SDR Rules and the expiration of the SDR Relief 
to review the first applications for registration of SDRs and consider 
issues related to those applications, the Commission hereby grants, 
pursuant to Section 36 of the Exchange Act, a temporary exemption from 
compliance with the SDR Rules and an extension of the SDR Relief until 
April 1, 2017.

    By the Commission.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-23998 Filed 10-4-16; 8:45 am]
 BILLING CODE 8011-01-P
69122 Federal Register / Vol. 81, No. 193 / Wednesday, October 5, 2016 / Notices

Accordingly, the Commission finds SDR or (2) June 30, 2016.2 The The comment period closed on May 31,
good cause, pursuant to Section 19(b)(2) Commission granted those exemptions 2016. To date, the Commission has
of the Exchange Act,90 to approve the to help facilitate the potential received six comment letters on the ICE
proposed rule change, as modified by submission of SDR applications. Trade Vault application.
Amendment No. 3, on an accelerated On June 30, 2016, the Commission
extended the SDR Relief until October 5, DDR filed with the Commission a
basis.
2016 to allow it additional time to Form SDR seeking registration as an
VI. Conclusion review and consider issues related to SDR on April 6, 2016 and amended that
It is therefore ordered, pursuant to the applications to register with the form on April 25, 2016. The
Section 19(b)(2) of the Exchange Act,91 Commission as SDRs submitted by Commission’s notice of DDR’s
that the proposed rule change (SR– DTCC Data Repository (U.S.) LLC application for registration as an SDR
Nasdaq–2016–002), as modified by (‘‘DDR’’) and ICE Trade Vault, LLC was published in the Federal Register
Amendment No. 3 be, and it hereby is, (‘‘ICE Trade Vault’’).3 on July 7, 2016.8 The comment period
approved on an accelerated basis. To allow the Commission additional closed on August 8, 2016. To date, the
time to review these applications prior Commission has received four comment
For the Commission, by the Division of
Trading and Markets, pursuant to delegated to the compliance date for Rules 13n– letters on the DDR application.
authority.92 1 to 13n–12, as currently amended,
Subject to certain exceptions, Section
Brent J. Fields,
(‘‘SDR Rules’’) and the expiration of the
36 of the Exchange Act 9 authorizes the
SDR Relief, the Commission is
Secretary.
extending the exemptions granted in the Commission, by rule, regulation, or
[FR Doc. 2016–24086 Filed 10–4–16; 8:45 am]
June 2016 order.4 order, to exempt, either conditionally or
BILLING CODE 8011–01–P unconditionally, any person, security,
II. Discussion or transaction, or any class or classes of
The SDR Rules Release 5 states that persons, securities, or transactions, from
SECURITIES AND EXCHANGE SDRs were required to be in compliance any provision or provisions of the
COMMISSION with the SDR Rules by March 18, 2016. Exchange Act or any rule or regulation
The SDR Rules Release also notes that, thereunder, to the extent that such
[Release No. 34–78975] absent an exemption, any SDR must be exemption is necessary or appropriate
registered with the Commission and in in the public interest, and is consistent
Order Extending a Temporary compliance with the federal securities with the protection of investors. The
Exemption From Compliance With laws and the rules and regulations
Rules 13n–1 to 13n–12 Under the Commission finds that it is necessary
thereunder (including the applicable and appropriate in the public interest,
Securities Exchange Act of 1934 Dodd-Frank Act provisions and all of and consistent with the protection of
September 29, 2016. the SDR Rules).6 Rule 13n–1(c) provides investors, to grant a temporary
that, within 90 days of the date of the
I. Introduction exemption from compliance with the
publication of notice of the filing of an
application for registration (or within SDR Rules and extend the SDR Relief.
The Securities and Exchange The commenters on the DDR and ICE
Commission (‘‘Commission’’) is such longer period as to which the
applicant consents), the Commission Trade Vault SDR applications have
extending certain exemptions raised issues that require further review
previously granted in connection with will either grant the registration by
order or institute proceedings to and consideration. The Commission
requirements applicable to security-
determine whether registration should does not believe that the October 5,
based swap data repositories.
be granted or denied. 2016, compliance date provides
On March 18, 2016, pursuant to its
authority in Section 36 of the Securities Two entities have filed applications to sufficient time for adequate
Exchange Act of 1934 (‘‘Exchange Act’’), register with the Commission as SDRs. consideration of the comments and any
the Commission granted a temporary ICE Trade Vault filed with the possible amendments to the respective
exemption from compliance with Commission a Form SDR seeking applications.
Exchange Act Rules 13n–1 to 13n–12 registration as an SDR on March 29,
Therefore, to allow the Commission
until June 30, 2016, and at the same 2016 and amended that form on April
additional time prior to the compliance
time extended exemptions from 18, 2016. The Commission’s notice of
date for the SDR Rules and the
Exchange Act Sections 13(n)(5)(D)(i), ICE Trade Vault’s application for
registration as an SDR was published in expiration of the SDR Relief to review
13(n)(5)(F), 13(n)(5)(G), 13(n)(5)(H), the first applications for registration of
13(n)(7)(A), 13(n)(7)(B), 13(n)(7)(C) and the Federal Register on April 28, 2016.7
SDRs and consider issues related to
29(b) that had been provided in the DFA 2 See Exchange Act Release No. 77400 (Mar. 18, those applications, the Commission
Effective Date Order 1 (‘‘SDR Relief’’). 2016), 81 FR 15599 (Mar. 23, 2016) (‘‘March 2016 hereby grants, pursuant to Section 36 of
The Commission’s March 18, 2016 order SDR Section 36 Order’’). the Exchange Act, a temporary
provides that the SDR Relief will expire 3 See Exchange Act Release No. 77699 (Apr. 22,
exemption from compliance with the
on the earlier of (1) the date the 2016), 81 FR 25475 (Apr. 28, 2016) (‘‘ICE Trade
Vault Notice’’) and Exchange Act Release No. 34– SDR Rules and an extension of the SDR
Commission grants registration to an 78216 (June 30, 2016), 81 FR 44379 (July 7, 2016) Relief until April 1, 2017.
(‘‘DDR Notice’’).
asabaliauskas on DSK3SPTVN1PROD with NOTICES

90 15 U.S.C. 78s(b)(2). 4 This relief applies to Rules 13n–1 to 13n–12 as By the Commission.
91 Id. amended, including amendments to Rule 13n-4 Robert W. Errett,
92 17 CFR 200.30–3(a)(12). adopted by the Commission on August 29, 2016.
See Exchange Act Release No. 78716 (Aug. 29, Deputy Secretary.
1 See Temporary Exemptions and Other
Temporary Relief, Together with Information on 2016), 81 FR 60585 (Sept. 2, 2016). [FR Doc. 2016–23998 Filed 10–4–16; 8:45 am]
5 See Exchange Act Release No. 74246 (Feb. 11,
Compliance Dates for New Provisions of the BILLING CODE 8011–01–P
Exchange Act Applicable to Security-Based Swaps, 2015), 80 FR 14438 (Mar. 19, 2015) (‘‘SDR Rules
Exchange Act Release No. 64678 (June 15, 2011), 76 Release’’).
8 See DDR Notice.
6 See id., 80 FR at 14456.
FR 36287 (June 22, 2011) (the ‘‘DFA Effective Date
9 15 U.S.C. 78mm.
Order’’). 7 See ICE Trade Vault Notice.

VerDate Sep<11>2014 18:15 Oct 04, 2016 Jkt 241001 PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 E:\FR\FM\05OCN1.SGM 05OCN1
Document Created: 2016-10-05 03:29:30
Document Modified: 2016-10-05 03:29:30
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 69122