82 FR 19136 - Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Effective Date of Government Securities Division Margin Proxy Rule Changes
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 78 (April 25, 2017)
Federal Register Volume 82, Issue 78 (April 25, 2017)
| Page Range | 19136-19137 | |
| FR Document | 2017-08282 |
[Federal Register Volume 82, Number 78 (Tuesday, April 25, 2017)] [Notices] [Pages 19136-19137] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-08282] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-80484; File No. SR-FICC-2017-011] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Establish Effective Date of Government Securities Division Margin Proxy Rule Changes April 19, 2017. 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 April 13, 2017, Fixed Income Clearing Corporation (``FICC'') 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 by the clearing agency. 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. --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of amendments to the Government Securities Division (``GSD'') Rulebook (``GSD Rules'') \3\ of FICC in order to establish April 24, 2017 as the effective date of rule changes submitted pursuant to rule filing SR-FICC-2017-001 (``Rule Filing'') \4\ and advance notice SR-FICC-2017-801 (``Advance Notice'').\5\ --------------------------------------------------------------------------- \3\ Capitalized terms used herein and not otherwise defined shall have the meaning assigned to such terms in the GSD Rules, available at www.dtcc.com/~/media/Files/Downloads/legal/rules/ ficc_gov_rules.pdf. \4\ See Securities Exchange Act Release No. 79958 (February 3, 2017), 82 FR 10117 (February 9, 2017) (SR-FICC-2017-001). \5\ See Securities Exchange Act Release No. 80139 (March 2, 2017), 82 FR 13026 (March 8, 2017) (SR-FICC-2017-801). --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose On March 30, 2017, the Commission issued an order approving the Rule Filing,\6\ which was filed by FICC pursuant to Section 19(b)(2) of the Act.\7\ The Commission also issued a notice of no objection to the Advance Notice,\8\ which was filed with the Commission pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 \9\ and Rule 19b-4(n)(1)(i) of the Act.\10\ --------------------------------------------------------------------------- \6\ See Securities Exchange Act Release No. 80349 (March 30, 2017), 82 FR 16638 (April 5, 2017) (SR-FICC-2017-001). \7\ 15 U.S.C. 78s(b)(2). \8\ See Securities Exchange Act Release No. 80341 (March 30, 2017), 82 FR 16644 (April 5, 2017) (SR-FICC-2017-801). \9\ 12 U.S.C. 5465(e)(1). \10\ 17 CFR 240.19b-4(n)(1)(i). --------------------------------------------------------------------------- The purpose of the Rule Filing and the Advance Notice is to amend the GSD Rules to (i) include a minimum volatility calculation (referred to as the ``Margin Proxy'') when determining a GSD Netting Member's VaR Charge, (ii) modify the calculation of GSD's Coverage Charge in circumstances where the Margin Proxy applies and (iii) make certain technical corrections. FICC is filing this proposed rule change to establish April 24, 2017 as the effective date of rule changes submitted pursuant to the Rule Filing and the Advance Notice. Specifically, FICC would add a legend to both GSD Rule 1 and GSD Rule 4 to state that the rule changes submitted pursuant to the Rule Filing and the Advance Notice have been approved and not objected to, respectively, but are not yet effective. The legend would provide April 24, 2017 as the date on which these rule changes would become effective, and would include the file numbers of the Rule Filing and the Advance Notice. The legend would state that bold and underlined text indicates added language, and that bold and strikethrough text indicates deleted language. The legend would also state that, once effective, the legend would automatically be removed from the GSD Rules and the formatting of the rule changes would automatically be revised accordingly. 2. Statutory Basis Section 17A(b)(3)(F) of the Act requires, in part, that the GSD Rules be designed to (i) promote the prompt and accurate clearance and settlement of securities transactions and (ii) remove impediments to and perfect the mechanism of a national system for the prompt and accurate clearance and settlement of securities transactions, and, in general, to protect investors and the public interest.\11\ The proposed rule change would establish the effective date of rule changes described above and provide GSD Members with an understanding of when these rule changes will begin to affect them. Knowing when the rule changes will begin to affect GSD Members would enable them to timely fulfill their obligations to FICC, which would in turn ensure FICC's processes work as intended. Therefore, FICC believes that the proposed rule change would promote the prompt and accurate clearance and settlement of securities transactions as well as remove impediments to and perfect the mechanism of a national system for the prompt and accurate clearance and settlement of securities transactions, consistent with Section 17A(b)(3)(F) of the Act cited above. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition FICC does not believe that the proposed rule change to establish an effective date for the rule changes described above would have any impact, or impose any burden, on competition because the proposed rule change is intended to provide additional clarity in the GSD Rules with respect to when these rule changes would become effective for GSD Members. As such, the [[Page 19137]] proposed rule change would not impact a particular category of GSD Members nor would it impact particular types of businesses that GSD Members are engaged in. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others FICC has not received or solicited any written comments relating to this proposal. FICC will notify the Commission of any written comments received by FICC. III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act and paragraph (f) of Rule 19b-4 thereunder. 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. 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-FICC-2017-011 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-FICC-2017-011. 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 FICC and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). 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-FICC-2017-011 and should be submitted on or before May 16, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\12\ --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-08282 Filed 4-24-17; 8:45 am] BILLING CODE 8011-01-P
![19136 Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Notices
10:00 a.m. and 3:00 p.m. Copies of the establish April 24, 2017 as the effective 1 and GSD Rule 4 to state that the rule
filing also will be available for date of rule changes submitted pursuant changes submitted pursuant to the Rule
inspection and copying at the principal to rule filing SR–FICC–2017–001 (‘‘Rule Filing and the Advance Notice have
office of the Clearing Agencies and on Filing’’) 4 and advance notice SR–FICC– been approved and not objected to,
DTCC’s Web site (http://dtcc.com/legal/ 2017–801 (‘‘Advance Notice’’).5 respectively, but are not yet effective.
sec-rule-filings.aspx). All comments The legend would provide April 24,
II. Clearing Agency’s Statement of the
received will be posted without change; 2017 as the date on which these rule
Purpose of, and Statutory Basis for, the
the Commission does not edit personal changes would become effective, and
Proposed Rule Change
identifying information from would include the file numbers of the
submissions. You should submit only In its filing with the Commission, the Rule Filing and the Advance Notice.
information that you wish to make clearing agency included statements The legend would state that bold and
available publicly. All submissions concerning the purpose of and basis for underlined text indicates added
should refer to File Number SR–DTC– the proposed rule change and discussed language, and that bold and
2017–005, SR–FICC–2017–009, or SR– any comments it received on the strikethrough text indicates deleted
NSCC–2017–006 and should be proposed rule change. The text of these language. The legend would also state
submitted on or before May 16, 2017. statements may be examined at the that, once effective, the legend would
places specified in Item IV below. The automatically be removed from the GSD
For the Commission, by the Division of
Trading and Markets, pursuant to delegated clearing agency has prepared Rules and the formatting of the rule
authority.40 summaries, set forth in sections A, B, changes would automatically be revised
Eduardo A. Aleman, and C below, of the most significant accordingly.
Assistant Secretary.
aspects of such statements.
2. Statutory Basis
[FR Doc. 2017–08283 Filed 4–24–17; 8:45 am] (A) Clearing Agency’s Statement of the
Section 17A(b)(3)(F) of the Act
BILLING CODE 8011–01–P Purpose of, and Statutory Basis for, the
requires, in part, that the GSD Rules be
Proposed Rule Change
designed to (i) promote the prompt and
1. Purpose accurate clearance and settlement of
SECURITIES AND EXCHANGE
On March 30, 2017, the Commission securities transactions and (ii) remove
COMMISSION
issued an order approving the Rule impediments to and perfect the
[Release No. 34–80484; File No. SR–FICC– Filing,6 which was filed by FICC mechanism of a national system for the
2017–011] prompt and accurate clearance and
pursuant to Section 19(b)(2) of the Act.7
The Commission also issued a notice of settlement of securities transactions,
Self-Regulatory Organizations; Fixed and, in general, to protect investors and
Income Clearing Corporation; Notice of no objection to the Advance Notice,8
which was filed with the Commission the public interest.11 The proposed rule
Filing and Immediate Effectiveness of change would establish the effective
a Proposed Rule Change To Establish pursuant to Section 806(e)(1) of Title
VIII of the Dodd-Frank Wall Street date of rule changes described above
Effective Date of Government and provide GSD Members with an
Securities Division Margin Proxy Rule Reform and Consumer Protection Act
entitled the Payment, Clearing, and understanding of when these rule
Changes changes will begin to affect them.
Settlement Supervision Act of 2010 9
April 19, 2017. and Rule 19b–4(n)(1)(i) of the Act.10 Knowing when the rule changes will
Pursuant to Section 19(b)(1) of the The purpose of the Rule Filing and begin to affect GSD Members would
Securities Exchange Act of 1934 the Advance Notice is to amend the enable them to timely fulfill their
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 GSD Rules to (i) include a minimum obligations to FICC, which would in
notice is hereby given that on April 13, volatility calculation (referred to as the turn ensure FICC’s processes work as
2017, Fixed Income Clearing ‘‘Margin Proxy’’) when determining a intended. Therefore, FICC believes that
Corporation (‘‘FICC’’) filed with the GSD Netting Member’s VaR Charge, (ii) the proposed rule change would
Securities and Exchange Commission modify the calculation of GSD’s promote the prompt and accurate
(‘‘Commission’’) the proposed rule Coverage Charge in circumstances clearance and settlement of securities
change as described in Items I, II and III where the Margin Proxy applies and (iii) transactions as well as remove
below, which Items have been prepared make certain technical corrections. impediments to and perfect the
by the clearing agency. The Commission FICC is filing this proposed rule mechanism of a national system for the
is publishing this notice to solicit change to establish April 24, 2017 as the prompt and accurate clearance and
comments on the proposed rule change effective date of rule changes submitted settlement of securities transactions,
from interested persons. pursuant to the Rule Filing and the consistent with Section 17A(b)(3)(F) of
Advance Notice. Specifically, FICC the Act cited above.
I. Clearing Agency’s Statement of the would add a legend to both GSD Rule
Terms of Substance of the Proposed (B) Clearing Agency’s Statement on
Rule Change 4 See
Burden on Competition
Securities Exchange Act Release No. 79958
The proposed rule change consists of (February 3, 2017), 82 FR 10117 (February 9, 2017) FICC does not believe that the
(SR–FICC–2017–001). proposed rule change to establish an
amendments to the Government 5 See Securities Exchange Act Release No. 80139
Securities Division (‘‘GSD’’) Rulebook (March 2, 2017), 82 FR 13026 (March 8, 2017) (SR–
effective date for the rule changes
described above would have any
asabaliauskas on DSK3SPTVN1PROD with NOTICES
(‘‘GSD Rules’’) 3 of FICC in order to FICC–2017–801).
6 See Securities Exchange Act Release No. 80349 impact, or impose any burden, on
40 17 CFR 200.30–3(a)(12). (March 30, 2017), 82 FR 16638 (April 5, 2017) (SR– competition because the proposed rule
1 15 U.S.C. 78s(b)(1). FICC–2017–001). change is intended to provide additional
2 17 CFR 240.19b–4. 7 15 U.S.C. 78s(b)(2).
8 See Securities Exchange Act Release No. 80341
clarity in the GSD Rules with respect to
3 Capitalized terms used herein and not otherwise
(March 30, 2017), 82 FR 16644 (April 5, 2017) (SR– when these rule changes would become
defined shall have the meaning assigned to such
terms in the GSD Rules, available at www.dtcc.com/ FICC–2017–801). effective for GSD Members. As such, the
∼/media/Files/Downloads/legal/rules/ficc_gov_ 9 12 U.S.C. 5465(e)(1).
rules.pdf. 10 17 CFR 240.19b–4(n)(1)(i). 11 15 U.S.C. 78q–1(b)(3)(F).
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![Federal Register / Vol. 82, No. 78 / Tuesday, April 25, 2017 / Notices 19137
proposed rule change would not impact communications relating to the SUPPLEMENTARY INFORMATION: Notice is
a particular category of GSD Members proposed rule change between the hereby given that as a result of the
nor would it impact particular types of Commission and any person, other than Administrator’s disaster declaration,
businesses that GSD Members are those that may be withheld from the applications for disaster loans may be
engaged in. public in accordance with the filed at the address listed above or other
provisions of 5 U.S.C. 552, will be locally announced locations.
(C) Clearing Agency’s Statement on
available for Web site viewing and The following areas have been
Comments on the Proposed Rule
printing in the Commission’s Public determined to be adversely affected by
Change Received From Members,
Reference Room, 100 F Street NE., the disaster:
Participants, or Others
Washington, DC 20549 on official Primary Counties: Alameda.
FICC has not received or solicited any business days between the hours of Contiguous Counties:
written comments relating to this 10:00 a.m. and 3:00 p.m. Copies of the California: Contra Costa, San
proposal. FICC will notify the filing also will be available for Francisco, San Joaquin, San Mateo,
Commission of any written comments inspection and copying at the principal Santa Clara, Stanislaus
received by FICC. office of FICC and on DTCC’s Web site The Interest Rates are:
III. Date of Effectiveness of the (http://dtcc.com/legal/sec-rule-
Proposed Rule Change, and Timing for filings.aspx). All comments received Percent
Commission Action will be posted without change; the
Commission does not edit personal For Physical Damage:
The foregoing rule change has become identifying information from Homeowners With Credit Avail-
effective pursuant to Section 19(b)(3)(A) submissions. You should submit only able Elsewhere ...................... 3.750
of the Act and paragraph (f) of Rule information that you wish to make Homeowners Without Credit
19b–4 thereunder. At any time within available publicly. All submissions Available Elsewhere .............. 1.875
60 days of the filing of the proposed rule Businesses With Credit Avail-
should refer to File Number SR–FICC– able Elsewhere ...................... 6.300
change, the Commission summarily may 2017–011 and should be submitted on
temporarily suspend such rule change if Businesses Without Credit
or before May 16, 2017. Available Elsewhere .............. 3.150
it appears to the Commission that such
For the Commission, by the Division of Non-Profit Organizations With
action is necessary or appropriate in the Credit Available Elsewhere ... 2.500
Trading and Markets, pursuant to delegated
public interest, for the protection of Non-Profit Organizations With-
authority.12
investors, or otherwise in furtherance of out Credit Available Else-
Eduardo A. Aleman,
the purposes of the Act. where ..................................... 2.500
Assistant Secretary. For Economic Injury:
IV. Solicitation of Comments [FR Doc. 2017–08282 Filed 4–24–17; 8:45 am] Businesses & Small Agricultural
Interested persons are invited to BILLING CODE 8011–01–P Cooperatives Without Credit
submit written data, views and Available Elsewhere .............. 3.150
arguments concerning the foregoing, Non-Profit Organizations With-
including whether the proposed rule out Credit Available Else-
SMALL BUSINESS ADMINISTRATION where ..................................... 2.500
change is consistent with the Act.
Comments may be submitted by any of [Disaster Declaration #15107 and #15108]
The number assigned to this disaster
the following methods:
California Disaster #CA–00268 for physical damage is 15107 5 and for
Electronic Comments economic injury is 15108 0.
AGENCY: U.S. Small Business The States which received an EIDL
• Use the Commission’s Internet
Administration. Declaration # are CALIFORNIA.
comment form (http://www.sec.gov/
rules/sro.shtml); or ACTION: Notice. (Catalog of Federal Domestic Assistance
• Send an email to rule-comments@ Numbers 59002 and 59008)
SUMMARY: This is a notice of an
sec.gov. Please include File Number SR–
Administrative declaration of a disaster Linda E. McMahon,
FICC–2017–011 on the subject line.
for the State of CALIFORNIA dated Administrator.
Paper Comments 04/13/2017. [FR Doc. 2017–08272 Filed 4–24–17; 8:45 am]
• Send paper comments in triplicate Incident: San Pablo Avenue Fire. BILLING CODE 8025–01–P
to Secretary, Securities and Exchange Incident Period: 03/27/2017.
Commission, 100 F Street NE., Effective Date: 04/13/2017.
Washington, DC 20549. Physical Loan Application Deadline
DEPARTMENT OF STATE
Date: 06/12/2017.
All submissions should refer to File
Economic Injury (EIDL) Loan [Public Notice: 9970]
Number SR–FICC–2017–011. This file
Application Deadline Date: 01/16/2018.
number should be included on the Notice of Charter Renewal for the
subject line if email is used. To help the ADDRESSES: Submit completed loan
applications to: U.S. Small Business President’s Emergency Plan for AIDS
Commission process and review your Relief (PEPFAR) Scientific Advisory
comments more efficiently, please use Administration, Processing and
Disbursement Center, 14925 Kingsport Board
only one method. The Commission will
asabaliauskas on DSK3SPTVN1PROD with NOTICES
post all comments on the Commission’s Road, Fort Worth, TX 76155. The official designation of this
Internet Web site (http://www.sec.gov/ FOR FURTHER INFORMATION CONTACT: A. advisory committee is The President’s
rules/sro.shtml). Copies of the Escobar, Office of Disaster Assistance, Emergency Plan for AIDS Relief
submission, all subsequent U.S. Small Business Administration, (PEPFAR) Scientific Advisory Board,
amendments, all written statements 409 3rd Street SW., Suite 6050, hereinafter referred to as ‘‘the Board.’’
with respect to the proposed rule Washington, DC 20416. The Committee is established under
change that are filed with the the general authority of the Secretary of
Commission, and all written 12 17 CFR 200.30–3(a)(12). State and the Department of State (‘‘the
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Document Created: 2017-04-25 02:18:17
Document Modified: 2017-04-25 02:18:17
| 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 | 82 FR 19136 |
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