82_FR_31059 82 FR 30933 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice Relating to the Clearance of Additional Credit Default Swap Contracts

82 FR 30933 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice Relating to the Clearance of Additional Credit Default Swap Contracts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 126 (July 3, 2017)

Page Range30933-30935
FR Document2017-13900

Federal Register, Volume 82 Issue 126 (Monday, July 3, 2017)
[Federal Register Volume 82, Number 126 (Monday, July 3, 2017)]
[Notices]
[Pages 30933-30935]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13900]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81030; File No. SR-ICC-2017-009]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice 
Relating to the Clearance of Additional Credit Default Swap Contracts

June 27, 2017.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 \2\ notice is hereby given that on 
June 13, 2017, ICE Clear Credit LLC (``ICC'') filed with the Securities 
and Exchange Commission the proposed rule change, security-based swap 
submission, or advance notice as described in Items I, II and III 
below, which Items have been primarily prepared by ICC. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The principal purpose of the proposed rule change is to revise the 
ICC Rulebook (the ``Rules'') to provide for the clearance of Standard 
Asia Corporate Single Name CDS contracts (collectively, ``STASC 
Contracts''), Standard Asia Financial Corporate Single Name CDS 
contracts (collectively, ``STASFC Contracts''), and Standard Emerging 
Market Corporate Single Name CDS contracts (collectively, ``STEMC 
Contracts'').

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

    The purpose of the proposed rule change is to adopt rules that will 
provide the basis for ICC to clear additional credit default swap 
contracts.

[[Page 30934]]

Specifically, ICC proposes amending Chapter 26 of the ICC Rules to add 
Subchapters 26O, 26P, and 26Q to provide for the clearance of STASC, 
STASFC, and STEMC Contracts, respectively. ICC believes the addition of 
these contracts will benefit the market for credit default swaps by 
providing market participants the benefits of clearing, including 
reduction in counterparty risk and safeguarding of margin assets 
pursuant to clearing house rules. Clearing of the STASC, STASFC, and 
STEMC Contracts will not require any changes to ICC's Risk Management 
Framework or other policies and procedures constituting rules within 
the meaning of the Act.
    STASC Contracts have similar terms to the Standard European 
Corporate Single Name CDS contracts (``STEC Contracts'') and Standard 
Australian Corporate Single Name CDS contracts (``STAC Contracts'') 
currently cleared by ICC and governed by Subchapters 26G and 26M of the 
ICC Rules, respectively. Accordingly, the proposed rules found in 
Subchapter 26O largely mirror the ICC Rules for STEC Contracts in 
Subchapter 26G and STAC Contracts in Subchapter 26M, with certain 
modifications that reflect differences in terms and market conventions 
between those contracts and STASC Contracts. STASC Contracts will be 
denominated in United States Dollars.
    ICC Rule 26O-102 (Definitions) sets forth the definitions used for 
the STAC Contracts. The definitions are substantially the same as the 
definitions found in Subchapters 26G and 26M of the ICC Rules, other 
than certain conforming changes. ICC Rules 26O-203 (Restriction on 
Activity), 26O-206 (Notices Required of Participants with respect to 
STASC Contracts), 26O-303 (STASC Contract Adjustments), 26O-309 
(Acceptance of STASC Contracts by ICE Clear Credit), 26O-315 (Terms of 
the Cleared STASC Contract), 26O-316 (Relevant Physical Settlement 
Matrix Updates), 26O-502 (Specified Actions), and 26O-616 (Contract 
Modification) reflect or incorporate the basic contract specifications 
for STASC Contracts and are substantially the same as under Subchapters 
26G and 26M of the ICC Rules.
    STASFC Contracts have similar terms to the Standard European 
Financial Corporate Single Name CDS contracts (``STEFC Contracts'') and 
Standard Australian Financial Corporate Single Name CDS contracts 
(``STAFC Contracts'') currently cleared by ICC and governed by 
Subchapters 26H and 26N of the ICC Rules, respectively. Accordingly, 
the proposed rules found in Subchapter 26P largely mirror the ICC Rules 
for STEFC Contracts in Subchapter 26H and STAFC Contracts in Subchapter 
26N, with certain modifications that reflect differences in terms and 
market conventions between those contracts and STASFC Contracts. STASFC 
Contracts will be denominated in United States Dollars.
    ICC Rule 26P-102 (Definitions) sets forth the definitions used for 
the STASFC Contracts. The definitions are substantially the same as the 
definitions found in Subchapters 26H and 26N of the ICC Rules, other 
than certain conforming changes. ICC Rules 26P-203 (Restriction on 
Activity), 26P-206 (Notices Required of Participants with respect to 
STASFC Contracts), 26P-303 (STASFC Contract Adjustments), 26P-309 
(Acceptance of STASFC Contracts by ICE Clear Credit), 26P-315 (Terms of 
the Cleared STASFC Contract), 26P-316 (Relevant Physical Settlement 
Matrix Updates), 26P-502 (Specified Actions), and 26P-616 (Contract 
Modification) reflect or incorporate the basic contract specifications 
for STASFC Contracts and are substantially the same as under 
Subchapters 26H and 26N of the ICC Rules.
    STEMC Contracts also have similar terms to the STEC and STAC 
Contracts currently cleared by ICC and governed by Subchapters 26G and 
26M of the ICC Rules, respectively. Accordingly, the proposed rules 
found in Subchapter 26Q largely mirror the ICC Rules for STEC Contracts 
in Subchapter 26G and STAC Contracts in Subchapter 26M, with certain 
modifications that reflect differences in terms and market conventions 
between those contracts and STEMC Contracts. STEMC Contracts will be 
denominated in United States Dollars.
    ICC Rule 26Q-102 (Definitions) sets forth the definitions used for 
the STEMC Contracts. The definitions are substantially the same as the 
definitions found in Subchapters 26G and 26M of the ICC Rules, other 
than certain conforming changes. ICC Rules 26Q-203 (Restriction on 
Activity), 26Q-206 (Notices Required of Participants with respect to 
STEMC Contracts), 26Q-303 (STEMC Contract Adjustments), 26Q-309 
(Acceptance of STEMC Contracts by ICE Clear Credit), 26Q-315 (Terms of 
the Cleared STEMC Contract), 26Q-316 (Relevant Physical Settlement 
Matrix Updates), 26Q-502 (Specified Actions), and 26Q-616 (Contract 
Modification) reflect or incorporate the basic contract specifications 
for STEMC Contracts and are substantially the same as under Subchapters 
26G and 26M of the ICC Rules.
    Section 17A(b)(3)(F) of the Act \3\ requires, among other things, 
that the rules of a 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 and to comply with the provisions of the Act and the rules 
and regulations thereunder. As described above, the STASC, STASFC, and 
STEMC Contracts proposed for clearing are similar to contracts 
currently cleared by ICC, and will be cleared pursuant to ICC's 
existing clearing arrangements and related financial safeguards, 
protections and risk management procedures. Clearing of the STASC, 
STASFC, and STEMC Contracts will allow market participants an increased 
ability to manage risk and ensure the safeguarding of margin assets 
pursuant to clearing house rules. ICC believes that acceptance of the 
STASC, STASFC, and STEMC Contracts, on the terms and conditions set out 
in the Rules, is consistent with the prompt and accurate clearance of 
and settlement of securities transactions and derivative agreements, 
contracts and transactions cleared by ICC, the safeguarding of 
securities and funds in the custody or control of ICC, and the 
protection of investors and the public interest, within the meaning of 
Section 17A(b)(3)(F) of the Act.\4\
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1(b)(3)(F).
    \4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Clearing of the STASC, STASFC, and STEMC Contracts will also 
satisfy the requirements of Rule 17Ad-22.\5\ In particular, in terms of 
financial resources, ICC will apply its existing initial margin 
methodology to the additional contracts. ICC believes that this model 
will provide sufficient initial margin requirements to cover its credit 
exposure to its clearing members from clearing such contracts, 
consistent with the requirements of Rule 17Ad-22(b)(2).\6\ In addition, 
ICC believes its Guaranty Fund, under its existing methodology, will, 
together with the required initial margin, provide sufficient financial 
resources to support the clearing of the additional contracts 
consistent with the requirements of Rule 17Ad-22(b)(3).\7\ ICC also 
believes that its existing operational and managerial resources will be 
sufficient for clearing of the additional contracts, consistent with 
the requirements of Rule 17Ad-22(d)(4),\8\ as the new contracts are 
substantially the same from an

[[Page 30935]]

operational perspective as existing contracts. Similarly, ICC will use 
its existing settlement procedures and account structures for the new 
contracts, consistent with the requirements of Rule 17Ad-22(d)(5), (12) 
and (15) \9\ as to the finality and accuracy of its daily settlement 
process and avoidance of the risk to ICC of settlement failures. ICC 
determined to accept the STASC, STASFC, and STEMC Contracts for 
clearing in accordance with its governance process, which included 
review of the contracts and related risk management considerations by 
the ICC Risk Committee and approval by its Board. These governance 
arrangements are consistent with the requirements of Rule 17Ad-
22(d)(8).\10\ Finally, ICC will apply its existing default management 
policies and procedures for the STASC, STASFC, and STEMC Contracts. ICC 
believes that these procedures allow for it to take timely action to 
contain losses and liquidity pressures and to continue meeting its 
obligations in the event of clearing member insolvencies or defaults in 
respect of the additional single names, in accordance with Rule 17Ad-
22(d)(11).\11\
---------------------------------------------------------------------------

    \5\ 17 CFR 240.17Ad-22.
    \6\ 17 CFR 240.17Ad-22(b)(2).
    \7\ 17 CFR 240.17Ad-22(b)(3).
    \8\ 17 CFR 240.17Ad-22(d)(4).
    \9\ 17 CFR 240.17Ad-22(d)(5), (12) and (15).
    \10\ 17 CFR 240.17Ad-22(d)(8).
    \11\ 17 CFR 240.17Ad-22(d)(11).
---------------------------------------------------------------------------

B. Clearing Agency's Statement on Burden on Competition

    The STASC, STASFC, and STEMC Contracts will be available to all ICC 
participants for clearing. The clearing of these STASC, STASFC, and 
STEMC Contracts by ICC does not preclude the offering of the STASC, 
STASFC, and STEMC Contracts for clearing by other market participants. 
Accordingly, ICC does not believe that clearance of the STASC, STASFC, 
and STEMC Contracts will impose any burden on competition not necessary 
or appropriate in furtherance of the purposes of the Act.

C. Clearing Agency's Statement on Comments on the Proposed Rule 
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 and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2017-009 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-2017-009. 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 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-2017-009 
and should be submitted on or before July 24, 2017.
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-13900 Filed 6-30-17; 8:45 am]
 BILLING CODE 8011-01-P



                                                                                Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                             30933

                                                SECURITIES AND EXCHANGE                                 requirements of Rule 17Ad–3(b) each                    SECURITIES AND EXCHANGE
                                                COMMISSION                                              year. If a transfer agent fails to meet                COMMISSION
                                                                                                        those turnaround and processing
                                                [SEC File No. 270–424, OMB Control No.                                                                         [Release No. 34–81030; File No. SR–ICC–
                                                3235–0473]                                              requirements under 17Ad–3(b), it would                 2017–009]
                                                                                                        simply send a copy of the notice to its
                                                Proposed Collection; Comment                            issuer-clients that had already been                   Self-Regulatory Organizations; ICE
                                                Request                                                 produced for the Commission pursuant                   Clear Credit LLC; Notice of Proposed
                                                                                                        to Rule 17Ad–2(c) or (d). The                          Rule Change, Security-Based Swap
                                                Upon Written Request, Copies Available
                                                                                                        Commission estimates the requirement                   Submission, or Advance Notice
                                                 From: Securities and Exchange
                                                                                                        will take each respondent                              Relating to the Clearance of Additional
                                                 Commission, Office of FOIA Services,
                                                                                                        approximately four hours to complete.                  Credit Default Swap Contracts
                                                 100 F Street NE., Washington, DC
                                                 20549–2736                                             The Commission staff estimates that                    June 27, 2017.
                                                                                                        compliance staff work at registered                       Pursuant to Section 19(b)(1) of the
                                                Extension:
                                                                                                        transfer agents to comply with the third               Securities Exchange Act of 1934 (the
                                                  Rule 17Ad–3(b)
                                                                                                        party disclosure requirement will result               ‘‘Act’’) 1 and Rule 19b–4 2 notice is
                                                   Notice is hereby given that pursuant                 in an internal cost of compliance, at an               hereby given that on June 13, 2017, ICE
                                                to the Paperwork Reduction Act of 1995                  estimated hourly wage of $283, of                      Clear Credit LLC (‘‘ICC’’) filed with the
                                                (44 U.S.C. 3501 et seq.), the Securities                $1,128 per year per transfer agent (4                  Securities and Exchange Commission
                                                and Exchange Commission                                 hours × $283 per hour = $1,128 per                     the proposed rule change, security-
                                                (‘‘Commission’’) is soliciting comments                 year). Therefore, the aggregate annual                 based swap submission, or advance
                                                on the existing collection of information
                                                                                                        internal cost of compliance for the                    notice as described in Items I, II and III
                                                provided for in Rule 17Ad–3(b) (17 CFR
                                                                                                        approximately one registered transfer                  below, which Items have been primarily
                                                240.17Ad–3(b)), under the Securities
                                                                                                        agent each year to comply with Rule                    prepared by ICC. The Commission is
                                                Exchange Act of 1934 (15 U.S.C. 78a et
                                                                                                        17Ad–3(b) is also $1,128. There are no                 publishing this notice to solicit
                                                seq.). The Commission plans to submit
                                                                                                        external labor costs associated with                   comments on the proposed rule change
                                                this existing collection of information to
                                                                                                        sending the notice to issuers.                         from interested persons.
                                                the Office of Management and Budget
                                                (‘‘OMB’’) for extension and approval.                      Written comments are invited on: (a)                I. Clearing Agency’s Statement of the
                                                   Rule 17Ad–3(b) requires registered                   Whether the proposed collection of                     Terms of Substance of the Proposed
                                                transfer agents to send a copy of the                   information is necessary for the proper                Rule Change
                                                written notice required under Rule                      performance of the functions of the                       The principal purpose of the
                                                17Ad–2(c), (d), and (h) to the chief                    Commission, including whether the                      proposed rule change is to revise the
                                                executive officer of each issuer for                    information shall have practical utility;              ICC Rulebook (the ‘‘Rules’’) to provide
                                                which the transfer agent acts when it                   (b) the accuracy of the Commission’s                   for the clearance of Standard Asia
                                                has failed to turnaround at least 75% of                estimates of the burden of the proposed                Corporate Single Name CDS contracts
                                                all routine items in accordance with the                collection of information; (c) ways to                 (collectively, ‘‘STASC Contracts’’),
                                                requirements of Rule 17Ad–2(a), or to                   enhance the quality, utility, and clarity              Standard Asia Financial Corporate
                                                process at least 75% of all items in                                                                           Single Name CDS contracts
                                                                                                        of the information collected; and (d)
                                                accordance with the requirements of                                                                            (collectively, ‘‘STASFC Contracts’’), and
                                                                                                        ways to minimize the burden of the
                                                Rule 17Ad–2(b), for two consecutive                                                                            Standard Emerging Market Corporate
                                                months. The issuer may use the                          collection of information on
                                                                                                        respondents, including through the use                 Single Name CDS contracts
                                                information contained in the notices: (1)                                                                      (collectively, ‘‘STEMC Contracts’’).
                                                As an early warning of the transfer                     of automated collection techniques or
                                                agent’s non-compliance with the                         other forms of information technology.                 II. Clearing Agency’s Statement of the
                                                Commission’s minimum performance                        Consideration will be given to                         Purpose of, and Statutory Basis for, the
                                                standards regarding registered transfer                 comments and suggestions submitted in                  Proposed Rule Change
                                                agents; and (2) to become aware of                      writing within 60 days of this
                                                                                                                                                                  In its filing with the Commission, ICC
                                                certain problems and poor performances                  publication.                                           included statements concerning the
                                                with respect to the transfer agents that                   An agency may not conduct or                        purpose of and basis for the proposed
                                                are servicing the issuer’s issues. If the               sponsor, and a person is not required to               rule change and discussed any
                                                issuer does not receive notice of a                     respond to, a collection of information                comments it received on the proposed
                                                registered transfer agent’s failure to                  under the PRA unless it displays a                     rule change. The text of these statements
                                                comply with the Commission’s                            currently valid OMB control number.                    may be examined at the places specified
                                                minimum performance standards then                                                                             in Item IV below. ICC has prepared
                                                the issuer will be unable to take                          Please direct your written comments
                                                                                                        to: Pamela Dyson, Director/Chief                       summaries, set forth in sections A, B,
                                                remedial action to correct the problem                                                                         and C below, of the most significant
                                                or to find another registered transfer                  Information Officer, Securities and
                                                                                                                                                               aspects of these statements.
                                                agent. Pursuant to Rule 17Ad–3(b), a                    Exchange Commission, c/o Remi Pavlik-
                                                transfer agent that has already filed a                 Simon, 100 F Street NE., Washington,                   A. Clearing Agency’s Statement of the
                                                Notice of Non-Compliance with the                       DC 20549, or send an email to: PRA_                    Purpose of, and Statutory Basis for, the
                                                                                                        Mailbox@sec.gov.                                       Proposed Rule Change
sradovich on DSK3GMQ082PROD with NOTICES




                                                Commission pursuant to Rule 17Ad–2
                                                will only be required to send a copy of                   Dated: June 27, 2017.                                  The purpose of the proposed rule
                                                that notice to issuers for which it acts                Robert W. Errett,                                      change is to adopt rules that will
                                                when that transfer agent fails to                                                                              provide the basis for ICC to clear
                                                turnaround 75% of all routine items or                  Deputy Secretary.
                                                                                                                                                               additional credit default swap contracts.
                                                to process 75% of all items.                            [FR Doc. 2017–13894 Filed 6–30–17; 8:45 am]
                                                   The Commission estimates that only                   BILLING CODE P                                           1 15   U.S.C. 78s(b)(1).
                                                one transfer agent will meet the                                                                                 2 17   CFR 240.19b–4.



                                           VerDate Sep<11>2014   17:53 Jun 30, 2017   Jkt 241001   PO 00000   Frm 00118   Fmt 4703   Sfmt 4703   E:\FR\FM\03JYN1.SGM     03JYN1


                                                30934                           Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices

                                                Specifically, ICC proposes amending                     ICC Rules for STEFC Contracts in                          Section 17A(b)(3)(F) of the Act 3
                                                Chapter 26 of the ICC Rules to add                      Subchapter 26H and STAFC Contracts                     requires, among other things, that the
                                                Subchapters 26O, 26P, and 26Q to                        in Subchapter 26N, with certain                        rules of a clearing agency be designed to
                                                provide for the clearance of STASC,                     modifications that reflect differences in              promote the prompt and accurate
                                                STASFC, and STEMC Contracts,                            terms and market conventions between                   clearance and settlement of securities
                                                respectively. ICC believes the addition                 those contracts and STASFC Contracts.                  transactions and, to the extent
                                                of these contracts will benefit the                     STASFC Contracts will be denominated                   applicable, derivative agreements,
                                                market for credit default swaps by                      in United States Dollars.                              contracts, and transactions and to
                                                providing market participants the                         ICC Rule 26P–102 (Definitions) sets                  comply with the provisions of the Act
                                                benefits of clearing, including reduction               forth the definitions used for the                     and the rules and regulations
                                                in counterparty risk and safeguarding of                                                                       thereunder. As described above, the
                                                                                                        STASFC Contracts. The definitions are
                                                margin assets pursuant to clearing house                                                                       STASC, STASFC, and STEMC Contracts
                                                                                                        substantially the same as the definitions
                                                rules. Clearing of the STASC, STASFC,                                                                          proposed for clearing are similar to
                                                                                                        found in Subchapters 26H and 26N of
                                                and STEMC Contracts will not require                                                                           contracts currently cleared by ICC, and
                                                                                                        the ICC Rules, other than certain
                                                any changes to ICC’s Risk Management                                                                           will be cleared pursuant to ICC’s
                                                                                                        conforming changes. ICC Rules 26P–203
                                                Framework or other policies and                                                                                existing clearing arrangements and
                                                                                                        (Restriction on Activity), 26P–206
                                                procedures constituting rules within the                                                                       related financial safeguards, protections
                                                                                                        (Notices Required of Participants with
                                                meaning of the Act.                                                                                            and risk management procedures.
                                                   STASC Contracts have similar terms                   respect to STASFC Contracts), 26P–303
                                                                                                                                                               Clearing of the STASC, STASFC, and
                                                to the Standard European Corporate                      (STASFC Contract Adjustments), 26P–
                                                                                                                                                               STEMC Contracts will allow market
                                                Single Name CDS contracts (‘‘STEC                       309 (Acceptance of STASFC Contracts
                                                                                                                                                               participants an increased ability to
                                                Contracts’’) and Standard Australian                    by ICE Clear Credit), 26P–315 (Terms of
                                                                                                                                                               manage risk and ensure the safeguarding
                                                Corporate Single Name CDS contracts                     the Cleared STASFC Contract), 26P–316
                                                                                                                                                               of margin assets pursuant to clearing
                                                (‘‘STAC Contracts’’) currently cleared by               (Relevant Physical Settlement Matrix
                                                                                                                                                               house rules. ICC believes that
                                                ICC and governed by Subchapters 26G                     Updates), 26P–502 (Specified Actions),
                                                                                                                                                               acceptance of the STASC, STASFC, and
                                                and 26M of the ICC Rules, respectively.                 and 26P–616 (Contract Modification)
                                                                                                                                                               STEMC Contracts, on the terms and
                                                Accordingly, the proposed rules found                   reflect or incorporate the basic contract
                                                                                                                                                               conditions set out in the Rules, is
                                                in Subchapter 26O largely mirror the                    specifications for STASFC Contracts
                                                                                                                                                               consistent with the prompt and accurate
                                                ICC Rules for STEC Contracts in                         and are substantially the same as under
                                                                                                                                                               clearance of and settlement of securities
                                                Subchapter 26G and STAC Contracts in                    Subchapters 26H and 26N of the ICC
                                                                                                                                                               transactions and derivative agreements,
                                                Subchapter 26M, with certain                            Rules.
                                                                                                                                                               contracts and transactions cleared by
                                                modifications that reflect differences in                 STEMC Contracts also have similar                    ICC, the safeguarding of securities and
                                                terms and market conventions between                    terms to the STEC and STAC Contracts                   funds in the custody or control of ICC,
                                                those contracts and STASC Contracts.                    currently cleared by ICC and governed                  and the protection of investors and the
                                                STASC Contracts will be denominated                     by Subchapters 26G and 26M of the ICC                  public interest, within the meaning of
                                                in United States Dollars.                               Rules, respectively. Accordingly, the                  Section 17A(b)(3)(F) of the Act.4
                                                   ICC Rule 26O–102 (Definitions) sets                  proposed rules found in Subchapter                        Clearing of the STASC, STASFC, and
                                                forth the definitions used for the STAC                 26Q largely mirror the ICC Rules for                   STEMC Contracts will also satisfy the
                                                Contracts. The definitions are                          STEC Contracts in Subchapter 26G and                   requirements of Rule 17Ad–22.5 In
                                                substantially the same as the definitions               STAC Contracts in Subchapter 26M,                      particular, in terms of financial
                                                found in Subchapters 26G and 26M of                     with certain modifications that reflect                resources, ICC will apply its existing
                                                the ICC Rules, other than certain                       differences in terms and market                        initial margin methodology to the
                                                conforming changes. ICC Rules 26O–203                   conventions between those contracts                    additional contracts. ICC believes that
                                                (Restriction on Activity), 26O–206                      and STEMC Contracts. STEMC                             this model will provide sufficient initial
                                                (Notices Required of Participants with                  Contracts will be denominated in                       margin requirements to cover its credit
                                                respect to STASC Contracts), 26O–303                    United States Dollars.                                 exposure to its clearing members from
                                                (STASC Contract Adjustments), 26O–                                                                             clearing such contracts, consistent with
                                                309 (Acceptance of STASC Contracts by                     ICC Rule 26Q–102 (Definitions) sets
                                                                                                        forth the definitions used for the                     the requirements of Rule 17Ad–
                                                ICE Clear Credit), 26O–315 (Terms of                                                                           22(b)(2).6 In addition, ICC believes its
                                                the Cleared STASC Contract), 26O–316                    STEMC Contracts. The definitions are
                                                                                                        substantially the same as the definitions              Guaranty Fund, under its existing
                                                (Relevant Physical Settlement Matrix                                                                           methodology, will, together with the
                                                Updates), 26O–502 (Specified Actions),                  found in Subchapters 26G and 26M of
                                                                                                        the ICC Rules, other than certain                      required initial margin, provide
                                                and 26O–616 (Contract Modification)                                                                            sufficient financial resources to support
                                                reflect or incorporate the basic contract               conforming changes. ICC Rules 26Q–203
                                                                                                        (Restriction on Activity), 26Q–206                     the clearing of the additional contracts
                                                specifications for STASC Contracts and                                                                         consistent with the requirements of Rule
                                                are substantially the same as under                     (Notices Required of Participants with
                                                                                                        respect to STEMC Contracts), 26Q–303                   17Ad–22(b)(3).7 ICC also believes that
                                                Subchapters 26G and 26M of the ICC
                                                                                                        (STEMC Contract Adjustments), 26Q–                     its existing operational and managerial
                                                Rules.
                                                                                                        309 (Acceptance of STEMC Contracts by                  resources will be sufficient for clearing
                                                   STASFC Contracts have similar terms
                                                to the Standard European Financial                      ICE Clear Credit), 26Q–315 (Terms of                   of the additional contracts, consistent
                                                Corporate Single Name CDS contracts                     the Cleared STEMC Contract), 26Q–316                   with the requirements of Rule 17Ad–
                                                (‘‘STEFC Contracts’’) and Standard                      (Relevant Physical Settlement Matrix                   22(d)(4),8 as the new contracts are
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                                                Australian Financial Corporate Single                   Updates), 26Q–502 (Specified Actions),                 substantially the same from an
                                                Name CDS contracts (‘‘STAFC                             and 26Q–616 (Contract Modification)
                                                                                                                                                                 3 15 U.S.C. 78q–1(b)(3)(F).
                                                Contracts’’) currently cleared by ICC and               reflect or incorporate the basic contract                4 15 U.S.C. 78q–1(b)(3)(F).
                                                governed by Subchapters 26H and 26N                     specifications for STEMC Contracts and                   5 17 CFR 240.17Ad–22.
                                                of the ICC Rules, respectively.                         are substantially the same as under                      6 17 CFR 240.17Ad–22(b)(2).

                                                Accordingly, the proposed rules found                   Subchapters 26G and 26M of the ICC                       7 17 CFR 240.17Ad–22(b)(3).

                                                in Subchapter 26P largely mirror the                    Rules.                                                   8 17 CFR 240.17Ad–22(d)(4).




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                                                                                Federal Register / Vol. 82, No. 126 / Monday, July 3, 2017 / Notices                                                   30935

                                                operational perspective as existing                     to be appropriate and publishes its                    you wish to make available publicly. All
                                                contracts. Similarly, ICC will use its                  reasons for so finding or (ii) as to which             submissions should refer to File
                                                existing settlement procedures and                      the self-regulatory organization                       Number SR–ICC–2017–009 and should
                                                account structures for the new contracts,               consents, the Commission will:                         be submitted on or before July 24, 2017.
                                                consistent with the requirements of Rule                  (A) By order approve or disapprove                     For the Commission, by the Division of
                                                17Ad–22(d)(5), (12) and (15) 9 as to the                such proposed rule change, or                          Trading and Markets, pursuant to delegated
                                                finality and accuracy of its daily                        (B) institute proceedings to determine               authority.12
                                                settlement process and avoidance of the                 whether the proposed rule change                       Robert W. Errett,
                                                risk to ICC of settlement failures. ICC                 should be disapproved.
                                                                                                                                                               Deputy Secretary.
                                                determined to accept the STASC,                         IV. Solicitation of Comments                           [FR Doc. 2017–13900 Filed 6–30–17; 8:45 am]
                                                STASFC, and STEMC Contracts for
                                                clearing in accordance with its                           Interested persons are invited to                    BILLING CODE 8011–01–P

                                                governance process, which included                      submit written data, views, and
                                                review of the contracts and related risk                arguments concerning the foregoing,
                                                management considerations by the ICC                    including whether the proposed rule                    SMALL BUSINESS ADMINISTRATION
                                                Risk Committee and approval by its                      change is consistent with the Act.                     [Disaster Declaration #15189 and #15190;
                                                Board. These governance arrangements                    Comments may be submitted by any of                    NEBRASKA Disaster #NE–00068]
                                                are consistent with the requirements of                 the following methods:
                                                Rule 17Ad–22(d)(8).10 Finally, ICC will                 Electronic Comments                                    Presidential Declaration of a Major
                                                apply its existing default management                                                                          Disaster for Public Assistance Only for
                                                                                                          • Use the Commission’s Internet                      the State of Nebraska
                                                policies and procedures for the STASC,                  comment form (http://www.sec.gov/
                                                STASFC, and STEMC Contracts. ICC                        rules/sro.shtml); or                                   AGENCY: U.S. Small Business
                                                believes that these procedures allow for                  • Send an email to rule-comments@                    Administration.
                                                it to take timely action to contain losses              sec.gov. Please include File Number SR–                ACTION: Notice.
                                                and liquidity pressures and to continue                 ICC–2017–009 on the subject line.
                                                meeting its obligations in the event of                                                                        SUMMARY:   This is a Notice of the
                                                clearing member insolvencies or                         Paper Comments                                         Presidential declaration of a major
                                                defaults in respect of the additional                      Send paper comments in triplicate to                disaster for Public Assistance Only for
                                                single names, in accordance with Rule                   Secretary, Securities and Exchange                     the State of Nebraska (FEMA–4321–DR),
                                                17Ad–22(d)(11).11                                       Commission, 100 F Street NE.,                          dated 06/26/2017.
                                                B. Clearing Agency’s Statement on                       Washington, DC 20549–1090.                                Incident: Severe Winter Storm and
                                                Burden on Competition                                   All submissions should refer to File                   Straight-line Winds.
                                                                                                        Number SR–ICC–2017–009. This file                         Incident Period: 04/29/2017 through
                                                  The STASC, STASFC, and STEMC                                                                                 05/03/2017.
                                                                                                        number should be included on the
                                                Contracts will be available to all ICC
                                                                                                        subject line if email is used. To help the             DATES: Effective 06/26/2017.
                                                participants for clearing. The clearing of
                                                                                                        Commission process and review your                        Physical Loan Application Deadline
                                                these STASC, STASFC, and STEMC
                                                                                                        comments more efficiently, please use                  Date: 08/25/2017.
                                                Contracts by ICC does not preclude the
                                                                                                        only one method. The Commission will                      Economic Injury (Eidl) Loan
                                                offering of the STASC, STASFC, and
                                                                                                        post all comments on the Commission’s                  Application Deadline Date: 03/26/2018.
                                                STEMC Contracts for clearing by other
                                                                                                        Internet Web site (http://www.sec.gov/                 ADDRESSES: Submit completed loan
                                                market participants. Accordingly, ICC
                                                                                                        rules/sro.shtml). Copies of the                        applications to: U.S. Small Business
                                                does not believe that clearance of the
                                                                                                        submission, all subsequent                             Administration, Processing and
                                                STASC, STASFC, and STEMC Contracts
                                                                                                        amendments, all written statements                     Disbursement Center, 14925 Kingsport
                                                will impose any burden on competition
                                                                                                        with respect to the proposed rule                      Road, Fort Worth, TX 76155.
                                                not necessary or appropriate in
                                                                                                        change that are filed with the
                                                furtherance of the purposes of the Act.                                                                        FOR FURTHER INFORMATION CONTACT: A.
                                                                                                        Commission, and all written
                                                                                                        communications relating to the                         Escobar, Office of Disaster Assistance,
                                                C. Clearing Agency’s Statement on
                                                                                                        proposed rule change between the                       U.S. Small Business Administration,
                                                Comments on the Proposed Rule
                                                                                                        Commission and any person, other than                  409 3rd Street SW., Suite 6050,
                                                Received From Members, Participants or
                                                                                                        those that may be withheld from the                    Washington, DC 20416, (202) 205–6734.
                                                Others
                                                                                                        public in accordance with the                          SUPPLEMENTARY INFORMATION: Notice is
                                                  Written comments relating to the                                                                             hereby given that as a result of the
                                                proposed rule change have not been                      provisions of 5 U.S.C. 552, will be
                                                                                                        available for Web site viewing and                     President’s major disaster declaration on
                                                solicited or received. ICC will notify the                                                                     06/26/2017, Private Non-Profit
                                                Commission of any written comments                      printing in the Commission’s Public
                                                                                                        Reference Room, 100 F Street NE.,                      organizations that provide essential
                                                received by ICC.                                                                                               services of governmental nature may file
                                                                                                        Washington, DC 20549, on official
                                                III. Date of Effectiveness of the                       business days between the hours of                     disaster loan applications at the address
                                                Proposed Rule Change and Timing for                     10:00 a.m. and 3:00 p.m. Copies of such                listed above or other locally announced
                                                Commission Action                                       filings will also be available for                     locations.
                                                   Within 45 days of the date of                        inspection and copying at the principal                   The following areas have been
                                                                                                                                                               determined to be adversely affected by
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                                                publication of this notice in the Federal               office of ICE Clear Credit and on ICE
                                                Register or within such longer period                   Clear Credit’s Web site at https://                    the disaster:
                                                up to 90 days (i) as the Commission may                 www.theice.com/clear-credit/regulation.                Primary Counties: Blaine, Custer,
                                                designate if it finds such longer period                   All comments received will be posted                   Furnas, Garfield, Gosper, Holt, Loup,
                                                                                                        without change; the Commission does                       Red Willow, Rock, Valley
                                                  9 17 CFR 240.17Ad–22(d)(5), (12) and (15).            not edit personal identifying                             The Interest Rates are:
                                                  10 17 CFR 240.17Ad–22(d)(8).                          information from submissions. You
                                                  11 17 CFR 240.17Ad–22(d)(11).                         should submit only information that                      12 17   CFR 200.30–3(a)(12).



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Document Created: 2018-11-14 10:19:31
Document Modified: 2018-11-14 10:19:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 30933 

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