82 FR 27090 - Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Designation of Longer Period for Commission Action on a Proposed Rule Change To Amend the Mortgage-Backed Securities Division Rules Concerning Use of Clearing Fund for Losses, Liabilities or Temporary Needs for Funds Incident to the Clearance and Settlement Business and Make Other Related Changes

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 112 (June 13, 2017)

Page Range		27090-27091
FR Document		2017-12156

Federal Register, Volume 82 Issue 112 (Tuesday, June 13, 2017)

[Federal Register Volume 82, Number 112 (Tuesday, June 13, 2017)]
[Notices]
[Pages 27090-27091]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12156]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80879; File No. SR-FICC-2017-010]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action on a 
Proposed Rule Change To Amend the Mortgage-Backed Securities Division 
Rules Concerning Use of Clearing Fund for Losses, Liabilities or 
Temporary Needs for Funds Incident to the Clearance and Settlement 
Business and Make Other Related Changes

June 7, 2017.
    On April 11, 2017, Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission'') 
proposed rule change SR-FICC-2017-010 pursuant to Section 19(b)(1) of 
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 
thereunder.\2\ The proposed rule change was published for comment in 
the Federal Register on April 28, 2017.\3\ The Commission did not 
receive any comments on the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 80517 (April 24, 2017), 
82 FR 19771 (April 28, 2017) (SR-FICC-2017-010).
---------------------------------------------------------------------------

    Section 19(b)(2) of the Act \4\ provides that within 45 days of the 
publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this proposed rule change 
is June 12, 2017.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    The Commission is extending the 45-day time period for Commission 
action on the proposed rule change. The Commission finds that it is 
appropriate to designate a longer period within which to take action on 
the proposed rule change so that it has sufficient time to consider and 
take action on the proposed rule change.
    Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act \5\ 
and for the reasons stated above, the Commission designates July 27, 
2017 as the date by

[[Page 27091]]

which the Commission shall either approve, disapprove, or institute 
proceedings to determine whether to disapprove proposed rule change SR-
FICC-2017-010.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(31).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12156 Filed 6-12-17; 8:45 am]
BILLING CODE 8011-01-P

27090 Federal Register / Vol. 82, No. 112 / Tuesday, June 13, 2017 / Notices

DATES: Comments must be received on discussion of the reasons why, in the SECURITIES AND EXCHANGE
or before July 28, 2017. sponsoring organization’s opinion, the COMMISSION
ADDRESSES: Comments may be procedures satisfy the criteria for
[Release No. 34–80879; File No. SR–FICC–
submitted by any of the following approval set forth in this section. Under
2017–010]
methods: § 4221.14(d), PBGC shall approve an
• Federal eRulemaking Portal: http:// application if it determines that the Self-Regulatory Organizations; Fixed
www.regulations.gov. Follow the Web proposed procedures will be Income Clearing Corporation; Notice of
site instructions for submitting substantially fair to all parties involved Designation of Longer Period for
comments. in the arbitration of a withdrawal Commission Action on a Proposed
• Email: reg.comments@pbgc.gov. liability dispute and that the sponsoring Rule Change To Amend the Mortgage-
• Mail or Hand Delivery: Regulatory organization is neutral and able to carry Backed Securities Division Rules
Affairs Group, Office of the General out its role under the procedures. Concerning Use of Clearing Fund for
Counsel, Pension Benefit Guaranty Losses, Liabilities or Temporary Needs
Corporation, 1200 K Street NW., On November 20, 2015, the American
Arbitration Association (AAA) for Funds Incident to the Clearance
Washington, DC 20005–4026. and Settlement Business and Make
Comments received, including personal requested approval of an Alternative
Other Related Changes
information provided, will be posted to Arbitration Procedure under section
www.pbgc.gov. Copies of comments may 4221 of the Employee Retirement June 7, 2017.
also be obtained by writing to Income Security Act of 1974 and 29 CFR On April 11, 2017, Fixed Income
Disclosure Division, Office of the 4221.14. On March 23, 2016, PBGC Clearing Corporation (‘‘FICC’’) filed
General Counsel, Pension Benefit published notice of AAA’s Request for with the Securities and Exchange
Guaranty Corporation, 1200 K Street Approval of Alternative Arbitration Commission (‘‘Commission’’) proposed
NW., Washington, DC 20005–4026 or Procedure to advise interested persons rule change SR–FICC–2017–010
calling 202–326–4040 during normal of the request and solicit their views on pursuant to Section 19(b)(1) of the
business hours. (TTY and TDD users it (81 FR 15578). The comments that Securities Exchange Act of 1934
may call the Federal relay service toll- PBGC received in response to AAA’s (‘‘Act’’) 1 and Rule 19b–4 thereunder.2
free at 1–800–877–8339 and ask to be request are available for viewing at: The proposed rule change was
connected to 202–326–4040.) http://www.pbgc.gov/prac/pg/other/ published for comment in the Federal
FOR FURTHER INFORMATION CONTACT: guidance/multiemployer-notices.html or Register on April 28, 2017.3 The
Bruce Perlin, Assistant Chief Counsel https://www.regulations.gov/ Commission did not receive any
(Perlin.Bruce@PBGC.gov), 202–326– document?D=PBGC-2016-0001-0001. comments on the proposed rule change.
4020, ext. 6818, or Jon Chatalian, Section 19(b)(2) of the Act 4 provides
Deputy Assistant Chief Counsel PBGC provided AAA with an that within 45 days of the publication of
(Chatalian.Jon@PBGC.gov), ext. 6757, opportunity to respond to the comments notice of the filing of a proposed rule
Office of the Chief Counsel, Suite 340, submitted in response to AAA’s request, change, or within such longer period up
1200 K Street NW., Washington, DC as it deemed appropriate. On March 30, to 90 days as the Commission may
20005–4026; (TTY/TDD users may call 2017, AAA responded to the comments; designate if it finds such longer period
the Federal relay service toll-free at 1– the response can be viewed at: http:// to be appropriate and publishes its
800–877–8339 and ask to be connected www.pbgc.gov/prac/pg/other/guidance/ reasons for so finding or as to which the
to 202–326–4020.) multiemployer-notices.html. self-regulatory organization consents,
SUPPLEMENTARY INFORMATION: All interested persons are invited to the Commission shall either approve the
submit written comments to AAA’s proposed rule change, disapprove the
Background proposed rule change, or institute
March 30, 2017 letter.
The Pension Benefit Guaranty proceedings to determine whether the
All comments will be made part of the proposed rule change should be
Corporation (PBGC) administers title IV
of the Employee Retirement Income administrative record. disapproved. The 45th day after
Security Act of 1974 (ERISA). Section Issued in Washington, DC. publication of the notice for this
4221(a)(1) of ERISA requires ‘‘any W. Thomas Reeder, proposed rule change is June 12, 2017.
dispute’’ between an employer and a Director, Pension Benefit Guaranty
The Commission is extending the 45-
multiemployer pension plan concerning Corporation. day time period for Commission action
a withdrawal liability determination to on the proposed rule change. The
[FR Doc. 2017–12149 Filed 6–12–17; 8:45 am]
be ‘‘resolved through arbitration.’’ Commission finds that it is appropriate
BILLING CODE 7709–02–P
In lieu of PBGC’s default arbitration to designate a longer period within
procedures, under 29 CFR 4221.14, a which to take action on the proposed
withdrawal liability arbitration may be rule change so that it has sufficient time
conducted in accordance with an to consider and take action on the
alternative arbitration procedure proposed rule change.
approved by the PBGC in accordance Accordingly, pursuant to Section
with § 4221.14(c). Under § 4221.14(c), 19(b)(2)(A)(ii)(I) of the Act 5 and for the
the sponsor of an arbitration procedure reasons stated above, the Commission
may request PBGC approval of its designates July 27, 2017 as the date by
nlaroche on DSK30NT082PROD with NOTICES

procedures by submitting an application
1 15 U.S.C. 78s(b)(1).
to the PBGC. The application must
2 17 CFR 240.19b–4.
include: (1) A copy of the procedures for 3 Securities Exchange Act Release No. 80517
which approval is sought; (2) a (April 24, 2017), 82 FR 19771 (April 28, 2017) (SR–
description of the history, structure and FICC–2017–010).
membership of the organization that 4 15 U.S.C. 78s(b)(2).

sponsors the procedures; and (3) a 5 15 U.S.C. 78s(b)(2)(A)(ii)(I).

VerDate Sep<11>2014 14:58 Jun 12, 2017 Jkt 241001 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 E:\FR\FM\13JNN1.SGM 13JNN1

Federal Register / Vol. 82, No. 112 / Tuesday, June 13, 2017 / Notices 27091

which the Commission shall either Agreement (‘‘RPA’’), which it has Breakaway to obtain the views of the
approve, disapprove, or institute previously executed with Applied Commission in connection with issues
proceedings to determine whether to Underwriters Captive Risk Assurance in ongoing litigation, and we therefore
disapprove proposed rule change SR– Company, Inc. (‘‘AUCRA’’).2 According decline Breakaway’s request that we
FICC–2017–010. to Breakaway’s submission, it entered state an interpretive position as to the
For the Commission, by the Division of into two RPAs with AUCRA, one of proper characterization of the RPAs.7
Trading and Markets, pursuant to delegated which has a stated effective date of July Finally, to help ensure that requests
authority.6 1, 2009, and the other of July 1, 2012. under Rule 3a68–2 are expeditiously
Eduardo A. Aleman, The Commission and the CFTC jointly routed to appropriate staff, the
Assistant Secretary.
adopted Exchange Act Rule 3a68–2 and Commission encourages market
CEA Rule 1.8 in 2012 3 pursuant to participants to provide the requests to
[FR Doc. 2017–12156 Filed 6–12–17; 8:45 am]
Section 712(d)(4) of the Dodd-Frank the Office of the Secretary, with copies
BILLING CODE 8011–01–P
Wall Street Reform and Consumer to the Division of Trading and Markets
Protection Act (‘‘Dodd-Frank Act’’).4 and the Division of Corporation
The rules established a process for Finance.
SECURITIES AND EXCHANGE
parties to request a joint interpretation
COMMISSION By the Commission.
as to whether a particular agreement,
[Release No. 34–80870] contract, or transaction (or class thereof) Dated: June 7, 2017.
is a swap, security-based swap, or a Brent J. Fields,
Commission Statement Concerning a mixed swap. Among other things, the Secretary.
Request for an Interpretation as to rules set forth the information required [FR Doc. 2017–12140 Filed 6–12–17; 8:45 am]
Whether a Particular Agreement Is a to be included in a request and a BILLING CODE 8011–01–P
Swap, Security-Based Swap, or Mixed process for withdrawing a request. Rule
Swap 3a68–2 also includes requirements
AGENCY: Securities and Exchange governing the manner and timing by SECURITIES AND EXCHANGE
Commission. which the two agencies must act after COMMISSION
the receipt of a complete submission
ACTION: Commission statement. [Release No. 34–80876; File Nos. SR–DTC–
under the rule, if they determine to
2017–005; SR–FICC–2017–009; SR–NSCC–
SUMMARY: The Securities and Exchange issue such joint interpretation. In 2017–006]
Commission (the ‘‘Commission’’) is addition, paragraph (e)(5) of Rule 3a68–
publishing this statement concerning a 2 provides that ‘‘[i]f the Commission Self-Regulatory Organizations; The
request for an interpretation as to and the [CFTC] do not issue a joint Depository Trust Company; Fixed
whether a particular agreement is a interpretation within the time period Income Clearing Corporation; National
swap, security-based swap, or mixed described in paragraph (e)(1) or (e)(3) [of Securities Clearing Corporation;
swap. the rule], each of the Commission and Notice of Designation of Longer Period
the [CFTC] shall publicly provide the for Commission Action on Proposed
FOR FURTHER INFORMATION CONTACT:
reasons for not issuing such a joint Rule Changes To Adopt the Clearing
Andrew Bernstein, Senior Special interpretation within the applicable
Counsel, Office of Derivatives Policy, Agency Stress Testing Framework
timeframes.’’ 5 (Market Risk)
Division of Trading and Markets, at Pursuant to paragraph (e)(5) of Rule
(202) 551–5870, or Andrew Schoeffler, 3a68–2, the Commission is declining to June 7, 2017.
Special Counsel, Office of Capital issue a joint interpretation with the On April 7, 2017, The Depository
Markets Trends, Division of Corporation CFTC in connection with Breakaway’s Trust Company (‘‘DTC’’), Fixed Income
Finance, at (202) 551–3860; U.S. request.6 The Commission understands Clearing Corporation (‘‘FICC’’), and
Securities and Exchange Commission, that the status of the RPAs is already National Securities Clearing Corporation
100 F Street NE., Washington, DC subject to ongoing private litigation and (‘‘NSCC,’’ each a ‘‘Clearing Agency’’)
20549. that the petitioners’ request may bear filed with the Securities and Exchange
Statement directly on that litigation. We believe Commission (‘‘Commission’’),
that the Rule 3a68–2 process is not an respectively proposed rule changes SR–
This statement pertains to a letter that appropriate vehicle for litigants such as
Commission staff received from DTC–2017–005, SR–FICC–2017–009,
Breakaway Courier Corporation and SR–NSCC–2017–006 (collectively,
2 A copy of Breakaway’s submission may be
(‘‘Breakaway’’), through its counsel, the ‘‘Proposed Rule Changes’’), pursuant
found at: https://www.sec.gov/rules/other/2017/
requesting a joint interpretation from 2017-331-tm-exhibit.pdf. to Section 19(b)(1) of the Securities
3 See Further Definition of ‘‘Swap,’’ ‘‘Security-
the Commission and the Commodity
Based Swap,’’ and ‘‘Security-Based Swap 7 As we and the CFTC explained when we jointly
Futures Trading Commission (‘‘CFTC’’) Agreement’’; Mixed Swaps; Security-Based Swap adopted Rule 3a68–2 in 2012 (as well as the
pursuant to Rule 3a68–2 under the Agreement Recordkeeping, Exchange Act Release corresponding rule under the CEA), the purpose of
Securities Exchange Act of 1934 No. 67453 (Jul. 18, 2012), 77 FR 48207 (Aug. 13, the rule is to ‘‘afford market participants with the
(‘‘Exchange Act’’) as to whether a 2012) (‘‘Product Definitions Adopting Release’’). opportunity to obtain greater certainty from the
4 See Dodd-Frank Wall Street Reform and
Commissions regarding the regulatory status of
particular agreement, contract, or Consumer Protection Act, Public Law 111–203, 124 particular Title VII instruments under the Dodd-
transaction (or class thereof) is a swap, Stat. 1376 (2010). All references to ‘‘Title VII’’ in Frank Act. This provision should decrease the
security-based swap, or mixed swap.1 this statement shall refer to Title VII of the Dodd- possibility that market participants inadvertently
nlaroche on DSK30NT082PROD with NOTICES

Breakaway’s request relates to a contract Frank Act, which established a comprehensive new might fail to meet the regulatory requirements
regulatory framework for swaps and security-based applicable to a particular Title VII instrument.’’ See
labeled as a Reinsurance Participation swaps. Product Definitions Adopting Release, 77 FR at
5 Paragraph (e)(5) of CFTC Rule 1.8 contains
48295. We and the CFTC also noted our belief that
6 17 CFR 200.30–3(a)(31). identical language (other than reversing the ‘‘it is essential that the characterization of an
1 See 17 CFR 240.3a68–2. The letter specifically references to the two commissions). instrument be established prior to any party
refers to the corresponding rule for the CFTC’s 6 Commission staff has consulted and coordinated engaging in the transactions so that the appropriate
process, Rule 1.8 under the Commodity Exchange with CFTC staff and understands that the CFTC will regulatory schemes apply.’’ See Product Definitions
Act (‘‘CEA’’). 17 CFR 1.8. be issuing a separate statement on this matter. Adopting Release, 77 FR at 48297.

VerDate Sep<11>2014 14:58 Jun 12, 2017 Jkt 241001 PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 E:\FR\FM\13JNN1.SGM 13JNN1

Document Created: 2017-06-13 00:22:17
Document Modified: 2017-06-13 00:22:17

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 27090