82 FR 30921 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to ICC's Cash Investment Yield Schedule
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 126 (July 3, 2017)
Federal Register Volume 82, Issue 126 (July 3, 2017)
| Page Range | 30921-30923 | |
| FR Document | 2017-13898 |
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)] [Notices] [Pages 30921-30923] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-13898] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81028; File No. SR-ICC-2017-007] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to ICC's Cash Investment Yield Schedule June 27, 2017 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 [[Page 30922]] (``Act'') \1\ and Rule 19b-4,\2\ notice is hereby given that on June 16, 2017, ICE Clear Credit LLC (``ICC'') filed with the Securities and Exchange Commission the proposed rule change, as described in Items I, II and III below, which Items have been prepared primarily by ICC. ICC filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) thereunder,\4\ so that the proposal was effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ 15 U.S.C. 78s(b)(3)(A). \4\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the proposed changes is to make changes to ICC's cash investment yield schedule. II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of these statements. A. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change ICC currently retains a portion of interest earned on cash balances, net of cash management expenses. The portion of interest retained is based on an established cash investment yield schedule, which is set forth in the ICC Collateral Management presentation available on the ICC Web site. \5\ ICC proposes changes to its cash investment yield schedule. The proposed revisions to the cash investment yield schedule are set forth in Exhibit 5 hereto, and described in detail as follows. --------------------------------------------------------------------------- \5\ https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Collateral_Management.pdf. --------------------------------------------------------------------------- Currently ICC retains a 10 bps spread for interest rate market environments of 50 bps or greater, net of expenses. As a result of increased treasury expenses due to continued business and regulatory focus on liquidity, ICC proposes an increase to the ICC portion of investment yield on cash balances for higher interest rate market environments (i.e. greater than 100 bps) to 10% of investment yield, net of expenses. ICC also proposes moving the five bps yield section to the `zero' ICC portion of investment yield on cash balances. Currently, a five bps yield results in an ICC investment yield of one bps. The investment yield schedule changes will apply to both house and client accounts, and ICC proposes to make such changes effective July 3, 2017. ICC will issue a circular notification in advance of the effective date. ICC believes that the proposed rule changes are consistent with the requirements of the Act, including Section 17A of the Act .\6\ More specifically, the proposed rule changes change a member due, fee or other charge imposed by ICC under Section 19(b)(3)(A)(ii) \7\ of the Act and Rule 19b-4(f)(2) \8\ thereunder. ICC believes the proposed rule changes are consistent with the requirements of the Act and the rules and regulations thereunder applicable to ICC, in particular, to Section 17(A)(b)(3)(D) \9\, because the proposed changes apply equally to all market participants and therefore the proposed changes provide for the equitable allocation of reasonable dues, fees and other charges among participants. As such, the proposed changes are appropriately filed pursuant to Section 19(b)(3)(A) \10\ of the Act and paragraph (f)(2) of Rule 19b-4 \11\ thereunder. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78q-1. \7\ 15 U.S.C. 78s(b)(3)(A)(ii). \8\ 17 CFR 240.19b-4(f)(2). \9\ 15 U.S.C. 78q-1(b)(3)(D). \10\ 15 U.S.C. 78s(b)(3)(A). \11\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- B. Clearing Agency's Statement on Burden on Competition ICC does not believe the proposed rule change would have any impact, or impose any burden, on competition. The changes to ICC's investment yield schedule will apply uniformly across all market participants. Therefore, ICC does not believe the proposed rule change imposes any burden on competition that is inappropriate in furtherance of the purposes of the Act. C. Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the proposed rule change have not been solicited or received. ICC will notify the Commission of any written comments received by ICC. III. Date of Effectiveness of the Proposed Rule Change The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) \12\ of the Act and Rule 19b-4(f)(2) \13\ thereunder, as the changes to ICC's investment yield schedule constitute a change to a due, fee, or other charge applicable only to a member. 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. --------------------------------------------------------------------------- \12\ 15 U.S.C. 78s(b)(3)(A). \13\ 17 CFR 240.19b-4(f)(2). --------------------------------------------------------------------------- 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-ICC-2017-007 on the subject line. Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-ICC-2017-007. 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 [[Page 30923]] business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filings will also be available for inspection and copying at the principal office of ICE Clear Credit and on ICE Clear Credit's Web site at https://www.theice.com/clear-credit/regulation. 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-ICC-2017-007 and should be submitted on or before July 24, 2017. --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\14\ Robert W. Errett, Deputy Secretary. [FR Doc. 2017-13898 Filed 6-30-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices 30921
affidavit or, for lawyers, a certificate of Exchange Act of 1934 and will act as the purposes fairly intended by the policy
service. Pursuant to rule 0–5 under the principal underwriter of Shares of the and provisions of the Act. Section 17(b)
Act, hearing requests should state the Funds. Applicants request that the of the Act authorizes the Commission to
nature of the writer’s interest, any facts requested relief apply to any distributor exempt a proposed transaction from
bearing upon the desirability of a of Shares, whether affiliated or section 17(a) of the Act if evidence
hearing on the matter, the reason for the unaffiliated with the Adviser (included establishes that the terms of the
request, and the issues contested. in the term ‘‘Distributor’’). Any transaction, including the consideration
Persons who wish to be notified of a Distributor will comply with the terms to be paid or received, are reasonable
hearing may request notification by and conditions of the Order. and fair and do not involve
writing to the Commission’s Secretary. overreaching on the part of any person
Requested Exemptive Relief
ADDRESSES: The Commission: Brent J. concerned, and the proposed
Fields, Secretary, U.S. Securities and 4. Applicants seek the requested transaction is consistent with the
Exchange Commission, 100 F Street NE., Order under section 6(c) of the Act for policies of the registered investment
Washington, DC 20549–1090. an exemption from sections 2(a)(32), company and the general purposes of
Applicants: Nationwide Fund Advisors, 5(a)(1), 22(d) and 22(e) of the Act and the Act. Section 12(d)(1)(J) of the Act
10 West Nationwide Blvd., Columbus, rule 22c–1 under the Act, under provides that the Commission may
Ohio 43215; ETF Series Solutions, 615 sections 6(c) and 17(b) of the Act for an exempt any person, security, or
East Michigan Street, 4th Floor, exemption from sections 17(a)(1) and transaction, or any class or classes of
Milwaukee, Wisconsin 53202; Quasar 17(a)(2) of the Act, and under section persons, securities or transactions, from
Distributors, LLC, 777 East Wisconsin 12(d)(1)(J) of the Act for an exemption any provision of section 12(d)(1) if the
Avenue, 6th Floor, Milwaukee, from sections 12(d)(1)(A) and (B) of the exemption is consistent with the public
Wisconsin 53202. Act. The requested Order would permit interest and the protection of investors.
applicants to offer exchange-traded 7. Applicants submit that for the
FOR FURTHER INFORMATION CONTACT:
managed funds. Because the relief reasons stated in the Reference Order:
Courtney S. Thornton, Senior Counsel,
requested is the same as the relief (1) With respect to the relief requested
at (202) 551–6812, or Robert H. Shapiro,
granted by the Commission under the pursuant to section 6(c) of the Act, the
Branch Chief, at (202) 551–6821
Reference Order and because the relief is appropriate, in the public
(Division of Investment Management,
Adviser has entered into, or anticipates interest and consistent with the
Chief Counsel’s Office).
entering into, a licensing agreement protection of investors and the purposes
SUPPLEMENTARY INFORMATION: The
with Eaton Vance Management, or an fairly intended by the policy and
following is a summary of the affiliate thereof in order to offer
application. The complete application provisions of the Act; (2) with respect to
exchange-traded managed funds,2 the the relief request pursuant to section
may be obtained via the Commission’s Order would incorporate by reference
Web site by searching for the file 17(b) of the Act, the proposed
the terms and conditions of the transactions are reasonable and fair and
number, or for an applicant using the Reference Order.
Company name box, at http:// do not involve overreaching on the part
5. Applicants request that the Order of any person concerned, are consistent
www.sec.gov/search/search.htm or by apply to the Initial Fund and to any
calling (202) 551–8090. with the policies of each registered
other existing or future open-end investment company concerned and
Applicants management investment company or consistent with the general purposes of
series thereof that: (a) Is advised by the the Act; and (3) with respect to the relief
1. The Trust is registered as an open-
Adviser or any entity controlling, requested pursuant to section 12(d)(1)(J)
end management investment company
controlled by, or under common control of the Act, the relief is consistent with
under the Act and is a statutory trust
with the Adviser (any such entity the public interest and the protection of
organized under the laws of Delaware.
included in the term ‘‘Adviser’’); and (b) investors.
Applicants seek relief with respect to
operates as an exchange-traded managed
one Fund (as defined below, and that By the Division of Investment
fund as described in the Reference Management, pursuant to delegated
Fund, the ‘‘Initial Fund’’). The portfolio
Order; and (c) complies with the terms authority.
positions of each Fund will consist of
and conditions of the Order and of the Robert W. Errett,
securities and other assets selected and
Reference Order, which is incorporated
managed by its Adviser or Subadviser Deputy Secretary.
by reference herein (each such company
(as defined below) to pursue the Fund’s [FR Doc. 2017–13904 Filed 6–30–17; 8:45 am]
or series and Initial Fund, a ‘‘Fund’’).3
investment objective.
6. Section 6(c) of the Act provides that BILLING CODE P
2. The Adviser, a Delaware business
the Commission may exempt any
trust, will be the investment adviser to
person, security or transaction, or any
the Initial Fund. An Adviser (as defined SECURITIES AND EXCHANGE
class of persons, securities or
below) will serve as investment adviser COMMISSION
transactions, from any provisions of the
to each Fund. The Adviser is, and any
Act, if and to the extent that such
other Adviser will be, registered as an [Release No. 34–81028; File No. SR–ICC–
exemption is necessary or appropriate
investment adviser under the 2017–007]
in the public interest and consistent
Investment Advisers Act of 1940
with the protection of investors and the
(‘‘Advisers Act’’). The Adviser may Self-Regulatory Organizations; ICE
sradovich on DSK3GMQ082PROD with NOTICES
retain one or more subadvisers (each a 2 Eaton Vance Management has obtained patents Clear Credit LLC; Notice of Filing and
‘‘Subadviser’’) to manage the portfolios with respect to certain aspects of the Funds’ method Immediate Effectiveness of a Proposed
of the Funds. Any Subadviser will be of operation as exchange-traded managed funds. Rule Change Relating to ICC’s Cash
registered, or not subject to registration, 3 All entities that currently intend to rely on the
Investment Yield Schedule
under the Advisers Act. Order are named as applicants. Any other entity
that relies on the Order in the future will comply June 27, 2017
3. The Distributor is a Delaware with the terms and conditions of the Order and of
limited liability company and a broker- the Reference Order, which is incorporated by
Pursuant to Section 19(b)(1) of the
dealer registered under the Securities reference herein. Securities Exchange Act of 1934
VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1](https://thefederalregister.org/doc/82_FR_31047/page/1.svg)
![Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices 30923
business days between the hours of Specialized Quote Feed 3 (‘‘SQF’’) OTTO will also be available to enter
10:00 a.m. and 3:00 p.m. Copies of such protocol. orders. SQF will be available for Market
filings will also be available for The text of the proposed rule change Makers 6 to enter quotes and also
inspection and copying at the principal is available on the Exchange’s Web site Immediate-or-Cancel Orders. DTI will
office of ICE Clear Credit and on ICE at www.ise.com, at the principal office no longer be available.
Clear Credit’s Web site at https:// of the Exchange, and at the With the introduction of SQF, the
www.theice.com/clear-credit/regulation. Commission’s Public Reference Room. Exchange proposes to amend ISE Rule
All comments received will be posted II. Self-Regulatory Organization’s 715(b)(3) to state that an Immediate-or-
without change; the Commission does Statement of the Purpose of, and Cancel order entered by a Market Maker
not edit personal identifying Statutory Basis for, the Proposed Rule through SQF will not be subject to the
information from submissions. You Change (i) Limit Order Price Protection and Size
should submit only information that Limitation Protection as defined in ISE
In its filing with the Commission, the Rule 714(b)(2) and (3); or (ii) Limit
you wish to make available publicly. All Exchange included statements
submissions should refer to File Order Price Protection as defined in
concerning the purpose of and basis for Supplementary Material .07(d) to ISE
Number SR–ICC–2017–007 and should the proposed rule change and discussed
be submitted on or before July 24, 2017. Rule 722. All other Immediate-or-Cancel
any comments it received on the Orders entered through FIX, OTTO or
For the Commission, by the Division of proposed rule change. The text of these Nasdaq Precise will continue to be
Trading and Markets, pursuant to delegated statements may be examined at the subject to these protections.
authority.14 places specified in Item IV below. The ISE Rule 714, entitled ‘‘Automatic
Robert W. Errett, Exchange has prepared summaries, set Execution of Orders,’’ contains a section
Deputy Secretary. forth in sections A, B, and C below, of (b)(2) and (3) which applies to order
[FR Doc. 2017–13898 Filed 6–30–17; 8:45 am]
the most significant aspects of such protections that are automatically
statements. enforced by the System. The Limit
BILLING CODE 8011–01–P
A. Self-Regulatory Organization’s Order Price Protection sets a limit on
Statement of the Purpose of, and the the amount by which incoming limit
SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule orders to buy may be priced above the
COMMISSION Change Exchange’s best offer and by which
incoming limit orders to sell may be
1. Purpose priced below the Exchange’s best bid.
[Release No. 34–81034; File No. SR–ISE–
2017–58] The Exchange is proposing to amend Limit orders that exceed the pricing
ISE Rule 715(b)(3) to specify the manner limit are rejected.7 Immediate-or-Cancel
Self-Regulatory Organizations; Nasdaq in which an Immediate-or-Cancel Order Orders entered through SQF will not be
ISE, LLC; Notice of Filing and will interact with certain order subject to the Limit Order Price
Immediate Effectiveness of Proposed protections when entered through SQF. Protection provided in ISE Rule
Rule Change To Specify an Exception An Immediate-or-Cancel Order is 714(b)(2).
to the Manner in Which Market Maker defined as a limit order that is to be ISE Rule 714(b)(3) provides a
Immediate-or-Cancel Orders Will Be executed in whole or in part upon protection for size limitation. The
Handled receipt. Any portion not so executed is System limits the number of contracts
to be treated as cancelled.4 SQF is an an incoming order may specify. Orders
June 27, 2017. interface that is being introduced with that exceed the maximum number of
Pursuant to Section 19(b)(1) of the the technology migration to a Nasdaq, contracts are rejected.8 Immediate-or-
Securities Exchange Act of 1934 Inc. (‘‘Nasdaq’’) supported architecture.5 Cancel Orders entered through SQF will
(‘‘Act’’)1 and Rule 19b–4 thereunder,2 Today, Members may enter orders not be subject to this size limitation
notice is hereby given that on June 19, through FIX, DTI or Nasdaq Precise on protection provided in ISE Rule
2017, Nasdaq, ISE LLC (‘‘ISE’’ or the ISE. After the migration to the INET 714(b)(3).9
‘‘Exchange’’) filed with the Securities architecture, Members will continue to Supplementary Material .07(d) to ISE
and Exchange Commission (‘‘SEC’’ or be able to submit orders through FIX or Rule 722 provides for a Limit Order
‘‘Commission’’) the proposed rule Nasdaq Precise, as is the case today, and Price Protection for Complex Orders.
change as described in Items I and II This protection limits the amount by
3 SQF is an interface that allows Market Makers
below, which Items have been prepared which the net price of an incoming
to connect and send quotes, Immediate-or-Cancel
by the Exchange. The Commission is Orders and auction responses into ISE.
complex limit order to buy may exceed
publishing this notice to solicit 4 See ISE Rule 715(b)(3). Immediate-or-Cancel the net price available from the
comments on the proposed rule change Orders do not route. individual options series on the
from interested persons.
5 See Securities Exchange Act Release No. 80432
Exchange and by which the net price of
(April 11, 2017 (SR–ISE–2017–03) (Order
I. Self-Regulatory Organization’s Approving Proposed Rule Change, as Modified by 6 The term ‘‘market makers’’ refers to
Amendment No. 1, to Amend Various Rules in
Statement of the Terms of Substance of Connection with a System Migration to Nasdaq
‘‘Competitive Market Makers’’ and ‘‘Primary Market
the Proposed Rule Change Makers’’ collectively. See ISE Rule 100(a)(25).
INET Technology). INET is the proprietary core
7 The limit is established by the Exchange from
technology utilized across Nasdaq’s global markets
The Exchange proposes to amend ISE and utilized on The NASDAQ Options Market LLC time-to-time for orders to buy (sell) as the greater
(‘‘NOM’’), NASDAQ PHLX LLC (‘‘Phlx’’) and of the Exchange’s best offer (bid) plus (minus): (i)
sradovich on DSK3GMQ082PROD with NOTICES
Rule 715(b)(3) to specify an exception to An absolute amount not to exceed $2.00, or (ii) a
NASDAQ BX, Inc. (‘‘BX’’) (collectively, ‘‘Nasdaq
the manner in which Immediate-or- Exchanges’’). The migration of ISE to the Nasdaq percentage of the Exchange’s best bid/offer not to
Cancel Orders will be handled by the INET architecture would result in higher exceed 10%. See ISE Rule 714(b)(2).
8 The maximum number of contracts, which shall
System when entered through the performance, scalability, and more robust
architecture. With this system migration, the not be less than 10,000, is established by the
Exchange intends to adopt certain trading Exchange from time-to-time. See ISE Rule 714(b)(3).
14 17 CFR 200.30–3(a)(12). 9 The Exchange notes that the protection for size
functionality currently utilized at Nasdaq
1 15 U.S.C. 78s(b)(1). Exchanges. The functionality being adopted is limitation will be applied to Complex Immediate-
2 17 CFR 240.19b–4. described in this filing. or-Cancel Orders that are entered through SQF.
VerDate Sep<11>2014 17:53 Jun 30, 2017 Jkt 241001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4703 E:\FR\FM\03JYN1.SGM 03JYN1](https://thefederalregister.org/doc/82_FR_31047/page/3.svg)
Document Created: 2018-11-14 10:19:08
Document Modified: 2018-11-14 10:19:08
| 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 30921 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR