81 FR 7616 - Submission for OMB Review; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 29 (February 12, 2016)
Federal Register Volume 81, Issue 29 (February 12, 2016)
| Page Range | 7616-7618 | |
| FR Document | 2016-02832 |
[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)] [Notices] [Pages 7616-7618] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-02832] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Submission for OMB Review; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549-2736. Extension: Rules 17Ad-22--Clearing Agency Standards and Governance. SEC File No. 270-646, OMB Control No. 3235-0695. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (``Commission'') is soliciting comments on the existing collection of information provided for in Rules 17Ad-22 under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection of information to the Office of Management and Budget (``OMB'') for extension and approval. Standards for Clearing Agencies a. Measurement and Management of Credit Exposures Rule 17Ad-22(b)(1) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to measure its credit exposures to its participants at least once each day, and limit its exposures to potential losses from defaults by its participants in normal market conditions so that the operations of the clearing agency would not be disrupted and non-defaulting participants would not be exposed to losses that they cannot anticipate or control. The purpose of the collection of information is to enable the clearing agency to monitor and limit its exposures to its participants. b. Margin Requirements Rule 17Ad-22(b)(2) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to: (i) Use margin requirements to limit its credit exposures to participants in normal market conditions; (ii) use risk-based models and parameters to set margin requirements; and (iii) review the models and parameters at least monthly. The purpose of the collection of information is to enable the clearing agency to maintain sufficient collateral or margin. [[Page 7617]] c. Financial Resources Rule 17Ad-22(b)(3) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to maintain sufficient financial resources to withstand, at a minimum, a default by the participant family to which it has the largest exposure in extreme but plausible market conditions, provided that a registered clearing agency acting as a central counterparty for security-based swaps shall maintain additional financial resources sufficient to withstand, at a minimum, a default by the two participant families to which it has the largest exposures in extreme but plausible market conditions, in its capacity as a central counterparty for security-based swaps. The purpose of the collection of information is to enable the clearing agency to satisfy all of its settlement obligations in the event of a participant default. d. Model Validation Rule 17Ad-22(b)(4) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to provide for an annual model validation consisting of evaluating the performance of the clearing agency's margin models and the related parameters and assumptions associated with such models by a qualified person who is free from influence from the persons responsible for the development or operation of the models being validated. The purpose of the collection of information is to enable the clearing agency to obtain an assessment of its margin model by a qualified, independent person. e. Non-Dealer Access Rule 17Ad-22(b)(5) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to provide the opportunity for a person that does not perform any dealer or security-based swap dealer services to obtain membership at the clearing agency to clear securities for itself or on behalf of other persons. The purpose of the collection of information is to enable more market participants to obtain indirect access to clearing agencies. f. Portfolio Size and Transaction Volume Restrictions Rule 17Ad-22(b)(6) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to have membership standards that do not require that participants maintain a portfolio of any minimum size or that participants maintain a minimum transaction volume. The purpose of the collection of information is to remove unnecessary barriers to participation in clearing agencies that provide CCP services. g. Net Capital Restrictions Rule 17Ad-22(b)(7) would require a clearing agency that provides CCP services to establish, implement, maintain and enforce written policies and procedures reasonably designed to provide a person that maintains net capital equal to or greater than $50 million with the ability to obtain membership at the clearing agency, provided that such persons are able to comply with other reasonable membership standards, with any net capital requirements being scalable so that they are proportional to the risks posed by the participant's activities to the clearing agency. The rule also permits a clearing agency to provide for a higher net capital requirement (i.e., higher than $50 million) as a condition for membership at the clearing agency if the clearing agency demonstrates to the Commission that such a requirement is necessary to mitigate risks that could not otherwise be effectively managed by other measures, such as scalable limitations on the transactions that the participants may clear through the clearing agency, and the Commission approves the higher net capital requirement as part of a rule filing or clearing agency registration application. The purpose of the collection of information is to remove unnecessary barriers to clearing access by market participants with a net capital level above $50 million, while at the same time facilitating sound risk management practices by clearing agencies by encouraging them to examine and articulate the benefits that higher net capital requirements would create through having clearing agencies develop scalable membership standards that links the activities any participants could potentially engage in with the potential risks posed by the participant. h. Record of Financial Resources Rule 17Ad-22(c)(1) would require that each fiscal quarter (based on calculations made as of the last business day of the clearing agency's fiscal quarter), or at any time upon Commission request, a clearing agency that performs CCP services shall calculate and maintain a record of the financial resources necessary to meet the requirement in Rule 17Ad-22(b)(3) and sufficient documentation to explain the methodology it uses to compute such financial resource requirement. The purpose of the collection of information is to enable the Commission to monitor the financial resources of clearing agencies that provide CCP services. i. Annual Audited Financial Statements Rule 17Ad-22(c)(2) would require a clearing agency to post on its Web site an annual audited financial statement that must (i) be a complete set of financial statements of the clearing agency for the most recent two fiscal years of the clearing agency and be prepared in accordance with U.S. generally accepted accounting principles (``U.S. GAAP''), except that for a clearing agency that is a corporation or other organization incorporated or organized under the laws of any foreign country, the financial statements may be prepared according to U.S. GAAP or International Financial Reporting Standards as issued by the International Accounting Standards Board (``IFRS''); (ii) be audited in accordance with standards of the Public Company Accounting Oversight Board by a registered public accounting firm that is qualified and independent in accordance with Rule 2-01 of Regulation S- X (17 CFR 210.2-01); and (iii) include a report of the registered public accounting firm that complies with paragraphs (a) through (d) of Rule 2-02 of Regulation S-X (17 CFR 210.2-02). The purpose of the collection of information is to enable the Commission to monitor the financial resources of clearing agencies that provide CCP services. j. Transparent and Enforceable Rules and Procedures Rule 17Ad-22(d)(1) would require clearing agencies to establish, implement, maintain and enforce written policies and procedures reasonably designed to provide for a well-founded, transparent, and enforceable legal framework for each aspect of their activities in all relevant jurisdictions. The purpose of the collection of information is to help ensure that clearing agencies' policies and procedures do not cause confusion or legal uncertainty among their participants because they are unclear, incomplete or conflict with other applicable laws or judicial precedent. The Commission believes that 10 registered clearing agencies will incur a total burden of approximately 8,029 hours annually. [[Page 7618]] An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number. The public may view background documentation for this information collection at the following Web site: www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503 or by sending an email to: [email protected]; and (ii) Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 F Street, NE Washington, DC 20549, or by sending an email to [email protected]. Comments must be submitted to OMB within 30 days of this notice. Dated: February 8, 2015. Robert W. Errett, Deputy Secretary. [FR Doc. 2016-02832 Filed 2-11-16; 8:45 am] BILLING CODE 8011-01-P
![7616 Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices
ICC believes will provide sufficient Electronic Comments SECURITIES AND EXCHANGE
margin and financial resources to COMMISSION
support the clearing of the new • Use the Commission’s Internet
contracts consistent with the margin comment form (http://www.sec.gov/ Submission for OMB Review;
and financial resource requirements of rules/sro.shtml); or Comment Request
Rule 17Ad-22(b)(2–3).19 • Send an email to rule-comments@
sec.gov. Please include File Number SR– Upon Written Request, Copies Available
B. Self-Regulatory Organization’s From: Securities and Exchange
Statement on Burden on Competition ICC–2016–002 on the subject line.
Commission, Office of FOIA Services,
ICC does not believe the proposed Paper Comments 100 F Street NE., Washington, DC
rule change would have any impact, or 20549–2736.
impose any burden, on competition. • Send paper comments in triplicate
to Secretary, Securities and Exchange Extension:
The iTraxx Asia/Pacific Contracts and Rules 17Ad–22—Clearing Agency
SAS Contracts will be available for Commission, 100 F Street NE., Standards and Governance. SEC File No.
clearing to all ICC Clearing Participants. Washington, DC 20549–1090. 270–646, OMB Control No. 3235–0695.
The clearing of iTraxx Asia/Pacific All submissions should refer to File
Contracts and SAS Contracts by ICC Notice is hereby given that pursuant
Number SR–ICC–2016–002. This file to the Paperwork Reduction Act of 1995
does not preclude the offering of this number should be included on the
product for clearing by other market (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
subject line if email is used. To help the Securities and Exchange Commission
participants. Further, the changes to the Commission process and review your
ICC End-of-Day Price Discovery Policies (‘‘Commission’’) is soliciting comments
comments more efficiently, please use on the existing collection of information
and Procedures, ICC Risk Management only one method. The Commission will
Framework, and ICC Risk Management provided for in Rules 17Ad-22 under
post all comments on the Commission’s the Securities Exchange Act of 1934 (15
Model Description document apply Internet Web site (http://www.sec.gov/
uniformly across all market participants. U.S.C. 78a et seq.). The Commission
rules/sro.shtml). Copies of the plans to submit this existing collection
Therefore, ICC does not believe the submission, all subsequent
proposed rule change imposes any of information to the Office of
amendments, all written statements Management and Budget (‘‘OMB’’) for
burden on competition that is with respect to the proposed rule
inappropriate in furtherance of the extension and approval.
change that are filed with the
purposes of the Act. Commission, and all written Standards for Clearing Agencies
C. Self-Regulatory Organization’s communications relating to the a. Measurement and Management of
Statement on Comments on the proposed rule change between the Credit Exposures
Proposed Rule Change Received From Commission and any person, other than
Members, Participants or Others those that may be withheld from the Rule 17Ad–22(b)(1) would require a
public in accordance with the clearing agency that provides CCP
Written comments relating to the services to establish, implement,
proposed rule change have not been provisions of 5 U.S.C. 552, will be
available for Web site viewing and maintain and enforce written policies
solicited or received. ICC will notify the and procedures reasonably designed to
Commission of any written comments printing in the Commission’s Public
Reference Room, 100 F Street NE., measure its credit exposures to its
received by ICC. participants at least once each day, and
Washington, DC 20549, on official
III. Date of Effectiveness of the business days between the hours of limit its exposures to potential losses
Proposed Rule Change and Timing for from defaults by its participants in
10:00 a.m. and 3:00 p.m. Copies of such
Commission Action normal market conditions so that the
filings will also be available for
operations of the clearing agency would
Within 45 days of the date of inspection and copying at the principal
not be disrupted and non-defaulting
publication of this notice in the Federal office of ICE Clear Credit and on ICE
participants would not be exposed to
Register or within such longer period Clear Credit’s Web site at https://
losses that they cannot anticipate or
up to 90 days (i) as the Commission may www.theice.com/clear-credit/regulation. control. The purpose of the collection of
designate if it finds such longer period All comments received will be posted information is to enable the clearing
to be appropriate and publishes its without change; the Commission does agency to monitor and limit its
reasons for so finding or (ii) as to which not edit personal identifying exposures to its participants.
the self-regulatory organization
information from submissions. You
consents, the Commission will: b. Margin Requirements
should submit only information that
(A) By order approve or disapprove
the proposed rule change or you wish to make available publicly. All Rule 17Ad–22(b)(2) would require a
(B) institute proceedings to determine submissions should refer to File clearing agency that provides CCP
whether the proposed rule change Number SR–ICC–2016–002 and should services to establish, implement,
should be disapproved. be submitted on or before March 4, maintain and enforce written policies
2016. and procedures reasonably designed to:
IV. Solicitation of Comments (i) Use margin requirements to limit its
For the Commission, by the Division of
asabaliauskas on DSK9F6TC42PROD with NOTICES2
Interested persons are invited to Trading and Markets, pursuant to delegated credit exposures to participants in
submit written data, views, and authority.20 normal market conditions; (ii) use risk-
arguments concerning the foregoing, Robert W. Errett,
based models and parameters to set
including whether the proposed rule margin requirements; and (iii) review
Deputy Secretary. the models and parameters at least
change is consistent with the Act.
Comments may be submitted by any of [FR Doc. 2016–02839 Filed 2–11–16; 8:45 am] monthly. The purpose of the collection
the following methods: BILLING CODE 8011–01–P of information is to enable the clearing
agency to maintain sufficient collateral
19 17 CFR§ 240.17Ad-22(b)(2–3). 20 17 CFR 200.30–3(a)(12). or margin.
VerDate Sep<11>2014 17:38 Feb 11, 2016 Jkt 238001 PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 E:\FR\FM\12FEN1.SGM 12FEN1](https://thefederalregister.org/doc/81_FR_7645/page/1.svg)
![7618 Federal Register / Vol. 81, No. 29 / Friday, February 12, 2016 / Notices
An agency may not conduct or collectively captioned Rules Applicable Infractions of Position/Exercise Limits
sponsor, and a person is not required to to Trading of PHLX FOREX OptionsTM. and Hedge Exemptions, removing
respond to, a collection of information The text of the proposed rule change language which is specific to PHLX
under the PRA unless it displays a is available on the Exchange’s Web site FOREX Options.
currently valid OMB control number. at http://
nasdaqomxphlx.cchwallstreet.com/, at 2. Statutory Basis
The public may view background
documentation for this information the principal office of the Exchange, and The Exchange believes that its
collection at the following Web site: at the Commission’s Public Reference proposal is consistent with Section 6(b)
www.reginfo.gov. Comments should be Room. of the Act 4 in general, and furthers the
directed to: (i) Desk Officer for the II. Self-Regulatory Organization’s objectives of Section 6(b)(5) of the Act 5
Securities and Exchange Commission, Statement of the Purpose of, and in particular, in that it is designed to
Office of Information and Regulatory Statutory Basis for, the Proposed Rule promote just and equitable principles of
Affairs, Office of Management and Change trade, to remove impediments to and
Budget, Room 10102, New Executive perfect the mechanism of a free and
Office Building, Washington, DC 20503 In its filing with the Commission, the open market and a national market
or by sending an email to: shagufta_ Exchange included statements system, and, in general to protect
ahmed@omb.eop.gov; and (ii) Pamela concerning the purpose of and basis for investors and the public interest. In
Dyson, Director/Chief Information the proposed rule change and discussed particular, this proposed change
Officer, Securities and Exchange any comments it received on the removes from the Phlx rulebook the
Commission, c/o Remi Pavlik-Simon, proposed rule change. The text of these rules applicable to PHLX FOREX
100 F Street, NE Washington, DC 20549, statements may be examined at the Options and makes conforming changes
or by sending an email to PRA_ places specified in Item IV below. The as needed to certain other rules. The
Mailbox@sec.gov. Comments must be Exchange has prepared summaries, set rule language to be deleted is not
submitted to OMB within 30 days of forth in sections A, B, and C below, of relevant or necessary because it deals
this notice. the most significant aspects of such solely with PHLX FOREX Options
statements. which were never listed or traded on the
Dated: February 8, 2015.
Robert W. Errett, A. Self-Regulatory Organization’s Exchange. Removing this rule language
Statement of the Purpose of, and from the Phlx rulebook will help
Deputy Secretary.
Statutory Basis for, the Proposed Rule eliminate potential member and
[FR Doc. 2016–02832 Filed 2–11–16; 8:45 am]
Change investor confusion about products listed
BILLING CODE 8011–01–P
and traded on Phlx.
1. Purpose
B. Self-Regulatory Organization’s
PHLX FOREX Options TM
SECURITIES AND EXCHANGE Statement on Burden on Competition
COMMISSION The Exchange’s rules for listing and
trading PHLX FOREX Options were The Exchange does not believe that
[Release No. 34–77076; File No. SR–Phlx– approved by the Commission in 2012 3 the proposed rule change will impose
2016–16] but were never in fact listed or traded any burden on competition not
on Phlx. The Exchange has no current necessary or appropriate in furtherance
Self-Regulatory Organizations; of the purposes of the Act. The
NASDAQ PHLX LLC; Notice of Filing intention to list or trade PHLX FOREX
Options in the foreseeable future. proposed change is not designed to
and Immediate Effectiveness of address any competitive issue but
Proposed Rule Change To Delete Accordingly, the Exchange proposes to
delete the caption ‘‘Rules Applicable to would merely remove rule language
Obsolete Rules 1000C–1009C relating to PHLX FOREX Options that is
Trading of PHLX FOREX Options TM
February 8, 2016. (Rules 1000C–1009C)’’ as well as Rules not relevant to the Exchange’s business
Pursuant to Section 19(b)(1) of the 1000C through 1009C dealing solely in any respect.
Securities Exchange Act of 1934 (the with PHLX FOREX Options. C. Self-Regulatory Organization’s
‘‘Act’’),1 and Rule 19b–4 thereunder,2 The Exchange also proposes to make Statement on Comments on the
notice is hereby given that on February conforming changes to Phlx Option Proposed Rule Change Received From
1, 2016, NASDAQ PHLX LLC (‘‘Phlx’’ or Floor Procedure Advices F–6, Option Members, Participants, or Others
the ‘‘Exchange’’) filed with the Quote Parameters, and F–15, Minor
Securities and Exchange Commission No written comments were either
(‘‘SEC’’ or the ‘‘Commission’’) the 3 See Securities Exchange Act Release No. 66616 solicited or received.
(March 16, 2012) 77 FR 16879 (March 22, 2012)
proposed rule change as described in (SR–Phlx–2012–11) (Order Granting Approval of III. Date of Effectiveness of the
Items I, II, and III, below, which Items Proposed Rule Change Regarding the Listing and Proposed Rule Change and Timing for
have been prepared by the Exchange. Trading of PHLX FOREX OptionsTM). In the Commission Action
The Commission is publishing this approval order the Commission approved listing
and trading of PHLX FOREX Options the British Because the foregoing proposed rule
notice to solicit comments on the pound, the Swiss franc, the Canadian dollar, the
proposed rule change from interested Australian dollar, the New Zealand dollar, and the
change does not: (i) Significantly affect
persons. Euro. These six foreign currencies also underlie the protection of investors or the public
asabaliauskas on DSK9F6TC42PROD with NOTICES2
another type of foreign currency option that is interest; (ii) impose any significant
I.Self-Regulatory Organization’s currently listed and traded on the Exchange burden on competition; and (iii) become
Statement of the Terms of Substance of (referred to as either ‘‘FCOs’’ or World Currency
Options, ‘‘WCOs’’). The primary difference between
operative for 30 days from the date on
the Proposed Rule Change FCOs and the PHLX FOREX Options is the pricing which it was filed, or such shorter time
The Exchange proposes to delete convention of PHLX FOREX Options, which as the Commission may designate, it has
resembles the ‘‘spot market pricing’’ on the become effective pursuant to Section
obsolete Rules 1000C–1009C, underlying currencies. The proposal to delist the
PHLX FOREX OptionsTM does not affect the
1 15 U.S.C. 78s(b)(1). 4 15 U.S.C. 78f(b).
continued listing and trading of FCOs on the
2 17 CFR 240.19b–4. Exchange. 5 15 U.S.C. 78f(b)(5).
VerDate Sep<11>2014 17:38 Feb 11, 2016 Jkt 238001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4703 E:\FR\FM\12FEN1.SGM 12FEN1](https://thefederalregister.org/doc/81_FR_7645/page/3.svg)
Document Created: 2016-02-12 01:24:37
Document Modified: 2016-02-12 01:24:37
| 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 7616 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR