82 FR 30918 - Self-Regulatory Organizations; ICE Clear Europe Limited; Order Approving Proposed Rule Changes Relating to the CDS End-of-Day Price Discovery Policy and Price Submission Disciplinary Framework
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 126 (July 3, 2017)
Federal Register Volume 82, Issue 126 (July 3, 2017)
| Page Range | 30918-30920 | |
| FR Document | 2017-13897 |
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)] [Notices] [Pages 30918-30920] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-13897] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81031; File No. SR-ICEEU-2017-006] Self-Regulatory Organizations; ICE Clear Europe Limited; Order Approving Proposed Rule Changes Relating to the CDS End-of-Day Price Discovery Policy and Price Submission Disciplinary Framework June 27, 2017. I. Introduction On April 26, 2017, ICE Clear Europe Limited (``ICE Clear Europe) filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change (SR- ICEEU-2017-006) to amend ICE Clear Europe's End-of-Day Price Discovery Policy (``EOD Price Discovery Policy'') (1) to change the calculation of firm trade notional limits with respect to single-name credit default swap (``CDS'') contracts; (2) to update references to ICE Clear Europe's Clearing Risk Department, head of clearing risk, and other relevant risk personnel, and to add references to ICE Clear Europe's risk appetite, related risk metrics, and model validation and review policies; and (3) to amend ICE Clear Europe's Price Submission Disciplinary Framework with respect to the imposition of fines associated with missed price submissions. The proposed rule change was published for comment in the Federal Register on May 15, 2017.\3\ The Commission received no comment letters regarding the proposed rule change. For the reasons discussed below, the Commission is approving the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ Securities Exchange Act Release No. 34-80631 (May 9, 2017), 82 FR 22357 (May 15, 2017) (SR-ICEEU-2017-006) (``Notice''). --------------------------------------------------------------------------- II. Description of Proposed Rule Change ICE Clear Europe proposed changes to its EOD Price Discovery Policy with respect to the calculation of firm trade notional limits for single-name CDS. Under its current EOD Price Discovery Policy, ICE Clear Europe requires CDS Clearing Members \4\ to submit end-of-day prices with respect to instruments relating to a Clearing Member's open interest. Based on these Clearing Member price submissions, ICE Clear Europe calculates CDS end-of-day price levels.\5\ As a mechanism for ensuring that Clearing Members provide high-quality submissions, ICE Clear Europe selects a subset of CDS instruments, on random days, to be eligible for required firm trades between Clearing Members. Where Clearing Members are identified for the purposes of a firm trade pursuant to ICE Clear Europe's ``cross and lock algorithm'' based on their price submissions, ICE Clear Europe may require such Clearing Members to enter into firm trades with each other.\6\ --------------------------------------------------------------------------- \4\ Capitalized terms used in this order, but not defined herein, have the same meaning as in the ICE Clear Europe Clearing Rules. \5\ Notice, 82 FR at 22358. \6\ Id. --------------------------------------------------------------------------- In connection with the firm trade obligation, ICE Clear Europe has established pre-defined maximum notional amounts for firm trades in single-name CDS contracts (``firm trade notional limits''), which are currently set at the Clearing Member level.\7\ ICE Clear Europe proposed to amend the manner in which it applies the firm trade notional limits so that such limits apply on a group level to affiliated Clearing Members, or ``CP affiliate group'' level, rather than at the individual Clearing Member level. A CP affiliate group consists of all CDS Clearing Members that own, are owned, or are under common ownership with other CDS Clearing Members.\8\ --------------------------------------------------------------------------- \7\ Id. \8\ Id. --------------------------------------------------------------------------- ICE Clear Europe believes that such an approach is appropriate because an affiliate group may have multiple CDS Clearing Members, which, in the absence of the proposed amendments, could result in a group-wide limit being multiples of the single entity notional limit.\9\ --------------------------------------------------------------------------- \9\ Id. --------------------------------------------------------------------------- In addition to the changes to the firm trade notional limits, ICE Clear Europe also proposed changes to the EOD Price Discovery Policy to update references to ICE Clear Europe's Clearing Risk department and Head of Clearing Risk, as well as to certain other risk personnel.\10\ --------------------------------------------------------------------------- \10\ Id. --------------------------------------------------------------------------- Other proposed changes to the EOD Price Discovery Policy include adding background information regarding standards relating to ICE Clear Europe's risk appetite, and related metrics and limits. Additionally, ICE Clear Europe proposed to amend the EOD Price Discovery Policy to include additional procedures relating to model validation and policy review. Under these amendments, the underlying models used to support the EOD Price Discovery Policy will be subject to an annual independent validation, and, pursuant to its terms of reference, the [[Page 30919]] ICE Clear Europe CDS Risk Committee will review the EOD Price Discovery Policy at least annually before such Policy is submitted to the ICE Clear Europe Board for its approval.\11\ In addition to the annual review process, any material changes to the EOD Price Discovery Policy require ICE Clear Europe Board approval, on the advice of the CDS Risk Committee and Board Risk Committee, prior to implementation of such changes.\12\ The proposed amendments also set forth various metrics to be used by the Clearing Risk Department and Risk Oversight department, as well as escalation and Risk Committee and Board notification protocols related to those metrics.\13\ --------------------------------------------------------------------------- \11\ Id. \12\ Id. \13\ Id. --------------------------------------------------------------------------- Beyond amendments to its EOD Price Discovery Policy, ICE Clear Europe also proposed to amend its Price Submission Disciplinary Framework with respect to the provisions regarding the imposition of fines, known as fixed cash assessments, in instances where members do not submit required prices. Under the proposed amendments to the Price Submission Disciplinary Framework, at the end of each calendar month ICE Clear Europe will collect the details of alleged Clearing Member missed price submissions. Once these details are obtained, ICE Clear Europe will issue a Notice of Investigation pursuant to Rule 1002 of its CDS Clearing Rulebook to the relevant Clearing Member setting forth the details of the missed price submission. ICE Clear Europe would then perform its investigation, and within five days of sending the Notice of Investigation, provide the Clearing Member with a Letter of Mindedness, which sets forth ICE Clear Europe's preliminary factual conclusions and proposed cash assessment. Thereafter, ICE Clear Europe would provide the Clearing Member ten days from the date of the Letter of Mindedness to inform ICE Clear Europe of any factual errors or objections. After this ten-day period, ICE Clear Europe would finalize its findings and course of action.\14\ --------------------------------------------------------------------------- \14\ Id. --------------------------------------------------------------------------- Furthermore, under the proposed amendments ICE Clear Europe's Price Submission Disciplinary Framework would provide that, if a Clearing Member is able to demonstrate that (i) the alleged missed price submissions are the first instance(s) of a missed submission with respect to a specific instrument in that month; (ii) provide an adequate explanation for the missed price submissions; and (iii) offer a remedial plan to prevent future missed submissions, ICE Clear Europe may determine to take no action. However, if another missed price submission for the same type of instrument occurs within ninety days of the first missed price submission then, under the proposed amendments, the Clearing Member will be subject to a cash assessment for both the first and subsequent missed price submissions. Additionally, ICE Clear Europe's head of clearing compliance would have the ability to determine that a Clearing Member should not be subject to a cash assessment if a Clearing Member is able to demonstrate that an alleged missed submission occurred due to extraordinary circumstances outside of the Clearing Member's control.\15\ ICE Clear Europe did not propose to amend the established levels for cash assessments. --------------------------------------------------------------------------- \15\ Notice, 82 FR at 22358-59. --------------------------------------------------------------------------- III. Discussion and Commission Findings Section 19(b)(2)(C) of the Act \16\ directs the Commission to approve a proposed rule change of a self-regulatory organization if it finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization. Section 17A(b)(3)(F) \17\ of the Act requires, among other things, that the rules of a registered clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions, to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible and, in general, to protect investors and the public interest. Section 17A(b)(3)(D) \18\ of the Act requires that the rules of a clearing agency provide for the equitable allocation of reasonable fees, dues, and other charges among its participants. Section 17A(b)(3)(G) of the Act \19\ requires that the rules of a clearing agency provide that its participants shall be appropriately disciplined for violation of any provision of the rules of the clearing agency by expulsion, suspension, limitation of activities, functions, and operations, fines, censure, or any other fitting sanction. Section 17A(b)(5)(A) of the Act \20\ requires, in relevant part, that in any proceeding by a registered clearing agency to determine whether a participant should be disciplined, the clearing agency shall bring specific charges, notify such participant thereof, and give him an opportunity to defend against such charges, and keep a record. Section 17A(b)(5)(A) further requires that a determination by the clearing agency to impose a disciplinary sanction shall be supported by a statement setting forth (i) any act or practice in which such participant has been found to have engaged or to have omitted; (ii) the specific provisions of the rules of the clearing agency which any such practice or omission to act is deemed to violate; and (iii) the sanction imposed and the reasons therefore. Rule 17Ad- 22(e)(3)(i) \21\ requires covered clearing agencies to establish, implement, maintain and enforce written policies and procedures reasonably designed to include risk management policies, procedures, and systems designed to identify, measure, monitor, and manage the range of risks that arise in or are borne by the covered clearing agency, that are subject to review on a specified periodic basis and approved by the board of directors annually. Rule 17Ad-22(e)(6)(vii) \22\ requires a covered clearing agency to establish, implement, maintain and enforce written policies and procedures reasonably designed to require a model validation for the covered clearing agency's margin system and related models to be performed not less than annually, or more frequently as may be contemplated by the covered clearing agency's risk management framework. --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2)(C). \17\ 15 U.S.C. 78q-1(b)(3)(F). \18\ 15 U.S.C. 78q-1(b)(3)(D). \19\ 15 U.S.C. 78q-1(b)(3)(G). \20\ 15 U.S.C. 78q-1(b)(5)(A). \21\ 17 CFR 240.17Ad-22(e)(3)(i). \22\ 17 CFR 240.17Ad-22(e)(6)(vii). --------------------------------------------------------------------------- The Commission finds that the proposed rule change, which amends ICE Clear Europe's EOD Price Discovery Policy and Price Submission Disciplinary Framework, is consistent with relevant provisions of Section 17A of the Act and the applicable provisions of Rule 17Ad-22 thereunder. With respect to the changes to ICE Clear Europe's EOD Price Discovery Policy that amend the application of the firm trade notional limit to be imposed at the CP affiliate group level rather than at the individual Clearing Member level, the changes are intended to manage what, in ICE Clear Europe's view, is an inappropriate level of risk to its Clearing Members, while also ensuring the integrity of the end-of- day price submission process. ICE Clear Europe asserts that the proposed change is intended to apply to Clearing Members fairly, and ICE Clear Europe has represented that the proposed rule [[Page 30920]] change recognizes common price submission practices whereby end-of-day submissions from multiple affiliated entities often reflect the institution's overall view on the value of the relevant instrument.\23\ Accordingly, the Commission finds that the proposed amendment regarding firm trade notional limits is designed to promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions consistent with the requirements of Section 17A(b)(3)(F), and also finds that the proposed rule change provides for the equitable allocation of reasonable fees, dues and other charges among its participants, consistent with Section 17A(b)(3)(D) of the Act. --------------------------------------------------------------------------- \23\ Notice, 82 FR at 22359. --------------------------------------------------------------------------- Regarding the changes to the EOD Price Discovery Policy that provide for validation of models supporting the end-of-day price discovery process and for review of the EOD Price Discovery Policy by the Board, the Commission believes that the proposed changes are consistent with Section 17A(b)(3)(F) of the Act, Rule 17Ad-22(e)(3)(i), and Rule 17Ad-22(e)(6)(vii). By requiring an independent validation of models used to support the EOD Price Discovery Policy, ICE Clear Europe will be better able to ensure that the end-of-day pricing models are appropriately designed and provide reliable results in the end-of-day pricing process. Additionally, with the requirement that the EOD Price Discovery Policy be reviewed at least annually by the CDS Risk Committee, and ICE Clear Europe Board and separately requiring that material changes be approved by ICE Clear Europe's Board, with the advice of both the CDS and Board Risk Committees, the proposed rule changes will provide for more substantial involvement in the ongoing management of, and review of changes to, the end-of-day pricing processes by those responsible for ICE Clear Europe's risk governance. Thus, the Commission believes that the proposed rule change will result in more consistent oversight and improvement of the EOD Price Discovery Policy and the underlying models and processes related thereto. The Commission therefore finds that the proposed rule change is designed to promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions, consistent with the requirements of Section 17A(b)(3)(F), and also is consistent with the requirements of Rule 17Ad-22(e)(3)(i) regarding periodic review and annual approval by the Board, and the requirements of Rule 17Ad-22(e)(6)(vii) regarding model validation of models related to the covered clearing agency's margin system. The Commission also finds that the proposed changes to ICE Clear Europe's Price Submission Disciplinary Framework are consistent with the requirements of the Act. Specifically, the proposed changes would amend and formalize the process in which Clearing Members are sanctioned for failure to comply with the price submission process. Specifically, the proposed rule change will set forth the process under which ICE Clear Europe will provide notice to Clearing Members of its allegation(s) of their failures to meet the price submission requirements, methods in which the Clearing Members can respond or object, and the sanctions that will be imposed for failures to meet the price submission requirements. The Commission finds that the formalization of this process in ICE Clear Europe's Price Submission Disciplinary Framework is consistent with the requirement of Section 17A(b)(3)(G) of the Act that the rules of a clearing agency provide that its participants shall be appropriately disciplined for violations of any provision of the clearing agency's rules by sanction; and that Clearing Members will be duly informed regarding such discipline, consistent with Section 17A(b)(5)(A) of the Act. IV. Conclusion It is therefore ordered pursuant to Section 19(b)(2) of the Act that he proposed rule change (SR-ICEEU-2017-006) be, and hereby is, approved.\24\ --------------------------------------------------------------------------- \24\ In approving the proposed rule change, the Commission considered the proposal's impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). For the Commission by the Division of Trading and Markets, pursuant to delegated authority.\25\ --------------------------------------------------------------------------- \25\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-13897 Filed 6-30-17; 8:45 am] BILLING CODE 8011-01-P
![30918 Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices
Electronic Comments SECURITIES AND EXCHANGE levels.5 As a mechanism for ensuring
COMMISSION that Clearing Members provide high-
• Use the Commission’s Internet quality submissions, ICE Clear Europe
comment form (http://www.sec.gov/ [Release No. 34–81031; File No. SR–ICEEU–
2017–006]
selects a subset of CDS instruments, on
rules/sro.shtml); or random days, to be eligible for required
• Send an email to rule-comments@ Self-Regulatory Organizations; ICE firm trades between Clearing Members.
sec.gov. Please include File Number SR– Clear Europe Limited; Order Approving Where Clearing Members are identified
BatsBZX–2017–43 on the subject line. Proposed Rule Changes Relating to for the purposes of a firm trade pursuant
the CDS End-of-Day Price Discovery to ICE Clear Europe’s ‘‘cross and lock
Paper Comments Policy and Price Submission algorithm’’ based on their price
Disciplinary Framework submissions, ICE Clear Europe may
• Send paper comments in triplicate
require such Clearing Members to enter
to Secretary, Securities and Exchange June 27, 2017. into firm trades with each other.6
Commission, 100 F Street NE., In connection with the firm trade
Washington, DC 20549–1090. I. Introduction
obligation, ICE Clear Europe has
On April 26, 2017, ICE Clear Europe established pre-defined maximum
All submissions should refer to File Limited (‘‘ICE Clear Europe) filed with
Number SR–BatsBZX–2017–43. This file notional amounts for firm trades in
the Securities and Exchange single-name CDS contracts (‘‘firm trade
number should be included on the Commission (‘‘Commission’’), pursuant
subject line if email is used. To help the notional limits’’), which are currently
to Section 19(b)(1) of the Securities set at the Clearing Member level.7 ICE
Commission process and review your Exchange Act of 1934 (‘‘Act’’),1 and
comments more efficiently, please use Clear Europe proposed to amend the
Rule 19b–4 thereunder,2 a proposed rule manner in which it applies the firm
only one method. The Commission will change (SR–ICEEU–2017–006) to amend trade notional limits so that such limits
post all comments on the Commission’s ICE Clear Europe’s End-of-Day Price apply on a group level to affiliated
Internet Web site (http://www.sec.gov/ Discovery Policy (‘‘EOD Price Discovery Clearing Members, or ‘‘CP affiliate
rules/sro.shtml). Copies of the Policy’’) (1) to change the calculation of group’’ level, rather than at the
submission, all subsequent firm trade notional limits with respect individual Clearing Member level. A CP
amendments, all written statements to single-name credit default swap affiliate group consists of all CDS
with respect to the proposed rule (‘‘CDS’’) contracts; (2) to update Clearing Members that own, are owned,
change that are filed with the references to ICE Clear Europe’s or are under common ownership with
Commission, and all written Clearing Risk Department, head of other CDS Clearing Members.8
communications relating to the clearing risk, and other relevant risk ICE Clear Europe believes that such
proposed rule change between the personnel, and to add references to ICE an approach is appropriate because an
Commission and any person, other than Clear Europe’s risk appetite, related risk affiliate group may have multiple CDS
those that may be withheld from the metrics, and model validation and Clearing Members, which, in the
public in accordance with the review policies; and (3) to amend ICE absence of the proposed amendments,
provisions of 5 U.S.C. 552, will be Clear Europe’s Price Submission could result in a group-wide limit being
available for Web site viewing and Disciplinary Framework with respect to multiples of the single entity notional
the imposition of fines associated with limit.9
printing in the Commission’s Public
missed price submissions. The proposed In addition to the changes to the firm
Reference Room, 100 F Street NE.,
rule change was published for comment trade notional limits, ICE Clear Europe
Washington, DC 20549, on official in the Federal Register on May 15,
business days between the hours of also proposed changes to the EOD Price
2017.3 The Commission received no Discovery Policy to update references to
10:00 a.m. and 3:00 p.m. Copies of such comment letters regarding the proposed
filing will also be available for ICE Clear Europe’s Clearing Risk
rule change. For the reasons discussed department and Head of Clearing Risk,
inspection and copying at the principal below, the Commission is approving the as well as to certain other risk
office of the Exchange. All comments proposed rule change. personnel.10
received will be posted without change; Other proposed changes to the EOD
the Commission does not edit personal II. Description of Proposed Rule Change
Price Discovery Policy include adding
identifying information from ICE Clear Europe proposed changes to background information regarding
submissions. You should submit only its EOD Price Discovery Policy with standards relating to ICE Clear Europe’s
information that you wish to make respect to the calculation of firm trade risk appetite, and related metrics and
available publicly. All submissions notional limits for single-name CDS. limits. Additionally, ICE Clear Europe
should refer to File Number SR– Under its current EOD Price Discovery proposed to amend the EOD Price
BatsBZX–201–43 and should be Policy, ICE Clear Europe requires CDS Discovery Policy to include additional
submitted on or before July 24, 2017. Clearing Members 4 to submit end-of- procedures relating to model validation
day prices with respect to instruments and policy review. Under these
For the Commission, by the Division of relating to a Clearing Member’s open
Trading and Markets, pursuant to delegated amendments, the underlying models
interest. Based on these Clearing used to support the EOD Price
authority.14 Member price submissions, ICE Clear
Robert W. Errett,
Discovery Policy will be subject to an
Europe calculates CDS end-of-day price annual independent validation, and,
sradovich on DSK3GMQ082PROD with NOTICES
Deputy Secretary. pursuant to its terms of reference, the
1 15 U.S.C. 78s(b)(1).
[FR Doc. 2017–13901 Filed 6–30–17; 8:45 am]
2 17 CFR 240.19b–4.
BILLING CODE 8011–01–P 5 Notice, 82 FR at 22358.
3 Securities Exchange Act Release No. 34–80631
6 Id.
(May 9, 2017), 82 FR 22357 (May 15, 2017) (SR–
7 Id.
ICEEU–2017–006) (‘‘Notice’’).
4 Capitalized terms used in this order, but not 8 Id.
9 Id.
defined herein, have the same meaning as in the
14 17 CFR 200.30–3(a)(12). ICE Clear Europe Clearing Rules. 10 Id.
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![30920 Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices
change recognizes common price annual approval by the Board, and the ACTION: Notice.
submission practices whereby end-of- requirements of Rule 17Ad–22(e)(6)(vii)
day submissions from multiple affiliated regarding model validation of models Notice of an application for an order
entities often reflect the institution’s related to the covered clearing agency’s under section 6(c) of the Investment
overall view on the value of the relevant margin system. Company Act of 1940 (‘‘Act’’) for an
instrument.23 Accordingly, the The Commission also finds that the exemption from sections 2(a)(32),
Commission finds that the proposed proposed changes to ICE Clear Europe’s 5(a)(1), 22(d) and 22(e) of the Act and
amendment regarding firm trade Price Submission Disciplinary rule 22c–1 under the Act, under
notional limits is designed to promote Framework are consistent with the sections 6(c) and 17(b) of the Act for an
the prompt and accurate clearance and requirements of the Act. Specifically, exemption from sections 17(a)(1) and
settlement of securities transactions, the proposed changes would amend and (a)(2) of the Act, and under section
derivatives agreements, contracts, and formalize the process in which Clearing 12(d)(1)(J) of the Act for an exemption
transactions consistent with the Members are sanctioned for failure to from sections 12(d)(1)(A) and (B) of the
requirements of Section 17A(b)(3)(F), comply with the price submission Act.
and also finds that the proposed rule process. Specifically, the proposed rule APPLICANTS: Nationwide Fund Advisors
change provides for the equitable change will set forth the process under (the ‘‘Adviser’’), ETF Series Solutions
allocation of reasonable fees, dues and which ICE Clear Europe will provide (the ‘‘Trust’’), and Quasar Distributors,
other charges among its participants, notice to Clearing Members of its LLC (the ‘‘Distributor’’).
consistent with Section 17A(b)(3)(D) of allegation(s) of their failures to meet the SUMMARY OF APPLICATION: Applicants
the Act. price submission requirements, methods request an order (‘‘Order’’) that permits:
Regarding the changes to the EOD in which the Clearing Members can (a) Actively managed series of certain
Price Discovery Policy that provide for respond or object, and the sanctions that open-end management investment
validation of models supporting the will be imposed for failures to meet the companies to issue shares (‘‘Shares’’)
end-of-day price discovery process and price submission requirements. The redeemable in large aggregations only
for review of the EOD Price Discovery Commission finds that the formalization (‘‘Creation Units’’); (b) secondary market
Policy by the Board, the Commission of this process in ICE Clear Europe’s transactions in Shares to occur at the
believes that the proposed changes are Price Submission Disciplinary next-determined net asset value plus or
consistent with Section 17A(b)(3)(F) of Framework is consistent with the minus a market-determined premium or
the Act, Rule 17Ad–22(e)(3)(i), and Rule requirement of Section 17A(b)(3)(G) of discount that may vary during the
17Ad–22(e)(6)(vii). By requiring an the Act that the rules of a clearing trading day; (c) certain series to pay
independent validation of models used agency provide that its participants redemption proceeds, under certain
to support the EOD Price Discovery shall be appropriately disciplined for circumstances, more than seven days
Policy, ICE Clear Europe will be better violations of any provision of the from the tender of Shares for
able to ensure that the end-of-day clearing agency’s rules by sanction; and redemption; (d) certain affiliated
pricing models are appropriately that Clearing Members will be duly persons of the series to deposit
designed and provide reliable results in informed regarding such discipline, securities into, and receive securities
the end-of-day pricing process. consistent with Section 17A(b)(5)(A) of from, the series in connection with the
Additionally, with the requirement that the Act. purchase and redemption of Creation
the EOD Price Discovery Policy be Units; (e) certain registered management
reviewed at least annually by the CDS IV. Conclusion investment companies and unit
Risk Committee, and ICE Clear Europe It is therefore ordered pursuant to investment trusts outside of the same
Board and separately requiring that Section 19(b)(2) of the Act that he group of investment companies as the
material changes be approved by ICE proposed rule change (SR–ICEEU–2017– series to acquire Shares; and (f) certain
Clear Europe’s Board, with the advice of 006) be, and hereby is, approved.24 series to create and redeem Shares in
both the CDS and Board Risk kind in a master-feeder structure. The
Committees, the proposed rule changes For the Commission by the Division of Order would incorporate by reference
Trading and Markets, pursuant to delegated
will provide for more substantial terms and conditions of a previous order
authority.25
involvement in the ongoing granting the same relief sought by
Robert W. Errett,
management of, and review of changes applicants, as that order may be
to, the end-of-day pricing processes by Deputy Secretary. amended from time to time (‘‘Reference
those responsible for ICE Clear Europe’s [FR Doc. 2017–13897 Filed 6–30–17; 8:45 am] Order’’).1
risk governance. Thus, the Commission BILLING CODE 8011–01–P FILING DATE: The application was filed
believes that the proposed rule change on June 7, 2017.
will result in more consistent oversight HEARING OR NOTIFICATION OF HEARING: An
and improvement of the EOD Price SECURITIES AND EXCHANGE
order granting the requested relief will
Discovery Policy and the underlying COMMISSION
be issued unless the Commission orders
models and processes related thereto. [Investment Company Act Release No. a hearing. Interested persons may
The Commission therefore finds that the 32712; 812–14783] request a hearing by writing to the
proposed rule change is designed to Commission’s Secretary and serving
promote the prompt and accurate Nationwide Fund Advisors, et al. applicants with a copy of the request,
clearance and settlement of securities personally or by mail. Hearing requests
June 27, 2017.
sradovich on DSK3GMQ082PROD with NOTICES
transactions, derivatives agreements, should be received by the Commission
contracts, and transactions, consistent AGENCY:Securities and Exchange
Commission (‘‘Commission’’). by 5:30 p.m. on July 24, 2017, and
with the requirements of Section should be accompanied by proof of
17A(b)(3)(F), and also is consistent with 24 In approving the proposed rule change, the service on applicants, in the form of an
the requirements of Rule 17Ad– Commission considered the proposal’s impact on
22(e)(3)(i) regarding periodic review and efficiency, competition, and capital formation. 15 1 Eaton Vance Management, et al., Investment
U.S.C. 78c(f). Company Act Rel. Nos. 31333 (Nov. 6, 2014)
23 Notice, 82 FR at 22359. 25 17 CFR 200.30–3(a)(12). (notice) and 31361 (Dec. 2, 2014) (order).
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Document Created: 2018-11-14 10:19:59
Document Modified: 2018-11-14 10:19:59
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 82 FR 30918 |
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