82 FR 27091 - Self-Regulatory Organizations; The Depository Trust Company; Fixed Income Clearing Corporation; National Securities Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proposed Rule Changes To Adopt the Clearing Agency Stress Testing Framework (Market Risk)

SECURITIES AND EXCHANGE COMMISSION

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

Page Range		27091-27092
FR Document		2017-12157

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

[Federal Register Volume 82, Number 112 (Tuesday, June 13, 2017)]
[Notices]
[Pages 27091-27092]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12157]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80876; File Nos. SR-DTC-2017-005; SR-FICC-2017-009; SR-
NSCC-2017-006]


Self-Regulatory Organizations; The Depository Trust Company; 
Fixed Income Clearing Corporation; National Securities Clearing 
Corporation; Notice of Designation of Longer Period for Commission 
Action on Proposed Rule Changes To Adopt the Clearing Agency Stress 
Testing Framework (Market Risk)

June 7, 2017.
    On April 7, 2017, The Depository Trust Company (``DTC''), Fixed 
Income Clearing Corporation (``FICC''), and National Securities 
Clearing Corporation (``NSCC,'' each a ``Clearing Agency'') filed with 
the Securities and Exchange Commission (``Commission''), respectively 
proposed rule changes SR-DTC-2017-005, SR-FICC-2017-009, and SR-NSCC-
2017-006 (collectively, the ``Proposed Rule Changes''), pursuant to 
Section 19(b)(1) of the Securities

[[Page 27092]]

Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The 
Proposed Rule Changes were published for comment in the Federal 
Register on April 25, 2017.\3\ The Commission did not receive any 
comment letters on the Proposed Rule Changes.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 80485 (April 19, 
2017), 82 FR 19131 (April 25, 2017) (SR-DTC-2017-005; SR-FICC-2017-
009; SR-NSCC-2017-006).
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    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 the Proposed Rule Changes 
is June 9, 2017.
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    \4\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending the 45-day time period for Commission 
action on the Proposed Rule Changes. The Commission finds that it is 
appropriate to designate a longer period within which to take action on 
the Proposed Rule Changes so that it has sufficient time to consider 
and take action on the Proposed Rule Changes.
    Accordingly, pursuant to Section 19(b)(2) of the Act \5\ and for 
the reasons stated above, the Commission designates July 24, 2017 as 
the date by which the Commission shall either approve, disapprove, or 
institute proceedings to determine whether to disapprove proposed rule 
changes SR-DTC-2017-005, SR-FICC-2017-009, and SR-NSCC-2017-006.
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    \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\
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    \6\ 17 CFR 200.30-3(a)(31).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12157 Filed 6-12-17; 8:45 am]
BILLING CODE 8011-01-P

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.

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27092 Federal Register / Vol. 82, No. 112 / Tuesday, June 13, 2017 / Notices

Exchange Act of 1934 (‘‘Act’’) 1 and Rule the Securities and Exchange Securities and Exchange Commission
19b-4 thereunder.2 The Proposed Rule Commission will hold a closed meeting (‘‘Commission’’) a proposed rule change
Changes were published for comment in on Thursday, June 15, 2017 at 2 p.m. as described in Items I and II below,
the Federal Register on April 25, 2017.3 Commissioners, Counsel to the which Items have been prepared by the
The Commission did not receive any Commissioners, the Secretary to the Exchange. The Commission is
comment letters on the Proposed Rule Commission, and recording secretaries publishing this notice to solicit
Changes. will attend the closed meeting. Certain comments on the proposed rule change
Section 19(b)(2) of the Act 4 provides staff members who have an interest in from interested persons.
that within 45 days of the publication of the matters also may be present.
notice of the filing of a proposed rule The General Counsel of the I. Self-Regulatory Organization’s
change, or within such longer period up Commission, or his designee, has Statement of the Terms of Substance of
to 90 days as the Commission may certified that, in his opinion, one or the Proposed Rule Change
designate if it finds such longer period more of the exemptions set forth in 5 The Exchange is filing a proposal to
to be appropriate and publishes its U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) make a technical amendment to
reasons for so finding or as to which the and 17 CFR 200.402(a)(3), (a)(5), (a)(7), Exchange Rule 406, Long Term Option
self-regulatory organization consents, (a)(9)(ii) and (a)(10), permit Contracts.
the Commission shall either approve the consideration of the scheduled matter at The text of the proposed rule change
proposed rule change, disapprove the the closed meeting. is available on the Exchange’s Web site
proposed rule change, or institute Commissioner Piwowar, as duty at http://www.miaxoptions.com/rule-
proceedings to determine whether the officer, voted to consider the items filings, at MIAX’s principal office, and
proposed rule change should be listed for the closed meeting in closed at the Commission’s Public Reference
disapproved. The 45th day after session. Room.
publication of the notice for the The subject matter of the closed
II. Self-Regulatory Organization’s
Proposed Rule Changes is June 9, 2017. meeting will be:
The Commission is extending the 45- Statement of the Purpose of, and
Institution and settlement of Statutory Basis for, the Proposed Rule
day time period for Commission action injunctive actions;
on the Proposed Rule Changes. The Change
Institution and settlement of
Commission finds that it is appropriate administrative proceedings; and In its filing with the Commission, the
to designate a longer period within Other matters relating to enforcement Exchange included statements
which to take action on the Proposed proceedings. concerning the purpose of and basis for
Rule Changes so that it has sufficient At times, changes in Commission the proposed rule change and discussed
time to consider and take action on the priorities require alterations in the any comments it received on the
Proposed Rule Changes. scheduling of meeting items. proposed rule change. The text of these
Accordingly, pursuant to Section For further information and to statements may be examined at the
19(b)(2) of the Act 5 and for the reasons ascertain what, if any, matters have been places specified in Item IV below. The
stated above, the Commission added, deleted or postponed, please Exchange has prepared summaries, set
designates July 24, 2017 as the date by contact Brent J. Fields from the Office of forth in sections A, B, and C below, of
which the Commission shall either the Secretary at (202) 551–5400. the most significant aspects of such
approve, disapprove, or institute statements.
Dated: June 8, 2017.
proceedings to determine whether to
Brent J. Fields, A. Self-Regulatory Organization’s
disapprove proposed rule changes SR–
Secretary. Statement of the Purpose of, and the
DTC–2017–005, SR–FICC–2017–009,
[FR Doc. 2017–12273 Filed 6–9–17; 11:15 am] Statutory Basis for, the Proposed Rule
and SR–NSCC–2017–006.
BILLING CODE 8011–01–P
Change
For the Commission, by the Division of
Trading and Markets, pursuant to delegated 1. Purpose
authority.6 The Exchange is proposing to amend
Eduardo A. Aleman, SECURITIES AND EXCHANGE
COMMISSION Exchange Rule 406, Long Term Option
Assistant Secretary. Contracts, to make clarifying changes to
[FR Doc. 2017–12157 Filed 6–12–17; 8:45 am] [Release No. 34–80869; File No. SR–MIAX– the Rule, as described below.
BILLING CODE 8011–01–P
2017–27] Currently, Exchange Rule 406(a) states
that the Exchange may list long-term
Self-Regulatory Organizations; Miami
option contracts that expire from twelve
SECURITIES AND EXCHANGE International Securities Exchange LLC;
(12) to thirty-nine (39) months from the
COMMISSION Notice of Filing and Immediate
time they are listed. The Exchange
Effectiveness of a Proposed Rule
proposes to amend Rule 406(a) by
Sunshine Act Meeting Change To Amend MIAX Options Rule
defining expirations from twelve (12) to
406, Long Term Option Contracts
Notice is hereby given, pursuant to thirty-nine (39) months from the time
the provisions of the Government in the June 7, 2017. the option is listed as ‘‘long-term
Sunshine Act, Public Law 94–409, that Pursuant to the provisions of Section expiration months.’’
19(b)(1) of the Securities Exchange Act Rule 406(a) states that there may be
1 15 U.S.C. 78s(b)(1). of 1934 (‘‘Act’’) 1 and Rule 19b–4 ‘‘up to six additional expiration
nlaroche on DSK30NT082PROD with NOTICES

2 17 CFR 240.19b–4. thereunder,2 notice is hereby given that months.’’ As currently written, the Rule
3 See Securities Exchange Act Release No. 80485
on June 6, 2017, Miami International does not specify which expiration
(April 19, 2017), 82 FR 19131 (April 25, 2017) (SR– months the six months are in addition
DTC–2017–005; SR–FICC–2017–009; SR–NSCC– Securities Exchange, LLC (‘‘MIAX
2017–006). Options’’ or ‘‘Exchange’’) filed with the to, or whether that means that there may
4 15 U.S.C. 78s(b)(2). be a total of six long-term expiration
5 15 U.S.C. 78s(b)(2)(A)(ii)(I). 1 15 U.S.C. 78s(b)(1). months (six long-term expiration
6 17 CFR 200.30–3(a)(31). 2 17 CFR 240.19b–4. months in addition to existing non-long-

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Document Created: 2017-06-13 00:22:20
Document Modified: 2017-06-13 00:22:20

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 27091