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, Number 126 (Monday, July 3, 2017)]
[Notices]
[Pages 30921-30923]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13898]


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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.
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    \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).
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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.
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    \5\ https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Collateral_Management.pdf.
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    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.
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    \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).
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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.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
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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 Comments

     Use 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.
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    \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