82 FR 40176 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend and Clarify a Margin Charge Relating to CNS Fails Position
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 163 (August 24, 2017)
Federal Register Volume 82, Issue 163 (August 24, 2017)
| Page Range | 40176-40178 | |
| FR Document | 2017-17911 |
[Federal Register Volume 82, Number 163 (Thursday, August 24, 2017)] [Notices] [Pages 40176-40178] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-17911] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81439; File No. SR-NSCC-2017-015] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Amend and Clarify a Margin Charge Relating to CNS Fails Position August 18, 2017 Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on August 11, 2017, National Securities Clearing Corporation (``NSCC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the clearing agency. 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 proposed rule change would amend provisions in NSCC's Rules and Procedures (``Rules'') \3\ regarding an existing margin charge that is applied when a Member fails to settle a Short Position or a Long Position by the applicable settlement date (``CNS Fails Charge'') and would clarify NSCC's current practices with respect to the assessment and collection of the CNS Fails Charge. --------------------------------------------------------------------------- \3\ Capitalized terms not defined herein are defined in the Rules, available at http://www.dtcc.com/~/media/Files/Downloads/ legal/rules/nscc_rules.pdf. --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The proposed rule change would (1) amend provisions in the Rules regarding the CNS Fails Charge, which NSCC currently imposes on each NSCC member (``Member''),\4\ as part of each Member's Required Deposit to the NSCC Clearing Fund, which is due at the start of each business day, when all conditions to the application of the charge, as described below, are met, and (2) clarify NSCC's current practices with respect to the assessment and collection of the CNS Fails Charge. --------------------------------------------------------------------------- \4\ The CNS Fails Charge is currently imposed by NSCC pursuant to Procedure XV, Section I.(A)(1)(f). Id. --------------------------------------------------------------------------- (i) The Required Deposit and the CNS Fails Charge NSCC uses a risk-based margin methodology to assess Required Deposits from all Members. The Required Deposit is comprised of a number of risk-based component charges, including the CNS Fails Charge, which are calculated and assessed daily. The objective of the Required Deposit is to mitigate potential losses to NSCC associated with the liquidation of the Member's portfolio if NSCC ceases to act for a Member.\5\ --------------------------------------------------------------------------- \5\ When NSCC restricts a Member's access to services generally, NSCC is said to have ``ceased to act'' for the Member. Rule 46 (Restrictions on Access to Services) sets out the circumstances under which NSCC may cease to act for a Member and the types of actions it may take. Supra note 3. --------------------------------------------------------------------------- When a Member does not satisfy its obligation to either pay the net settlement proceeds or deliver the securities due by the applicable Settlement Date, NSCC, as a central counterparty, is exposed to credit and market risks. Such exposures generally increase when the Member's risk of default increases, as reflected by the Member's credit rating derived from the Credit Risk Rating Matrix.\6\ Therefore, in order to reduce the risk exposures to NSCC and to incentivize Members to satisfy their obligations relating to their outstanding trades on Settlement Date, NSCC currently calculates and collects the CNS Fails Charge from Members with Short Positions and/or Long Positions that did not settle on the Settlement Date (``CNS Fails Positions''). The amount of the CNS Fails Charge imposed on a Member varies based on the Member's credit rating derived from the Credit Risk Rating Matrix to reflect the potential increase in credit risk from Members with higher risk of default. --------------------------------------------------------------------------- \6\ See Exchange Act Release Nos. 80734 (May 19, 2017), 82 FR 24177 (May 25, 2017) (SR-NSCC-2017-002) and 80731 (May 19, 2017), 82 FR 24174 (May 25, 2017) (SR-NSCC-2017-801). --------------------------------------------------------------------------- This proposed rule change would amend the Rules regarding the CNS Fails Charge. Specifically, where certain percentages are used to calculate the CNS Fails Charge for a Member, the proposed rule change would amend the Rules to include such specific percentages. In doing so, the proposed rule change would add transparency as well as clarify NSCC's current practices with respect to the assessment and collection of this existing margin charge. (ii) Calculation of the CNS Fails Charge For a Member with CNS Fails Positions, the CNS Fails Charge is calculated by multiplying the Current Market Value for such Member's aggregate CNS Fails Positions by a percentage. For a Member that is rated 1 through 4 on the Credit Risk Rating Matrix, the CNS Fails Charge is 5 percent of the Member's aggregate CNS Fails Positions. For a Member that is rated 5 or 6 on the Credit Risk Rating Matrix, the CNS Fails Charge is 10 percent of the Member's aggregate CNS Fails Positions. For a Member that is rated 7 on the Credit Risk Rating Matrix, NSCC is currently charging such Member 20 percent of the Member's [[Page 40177]] aggregate CNS Fails Positions--10 percent of the charge is imposed pursuant to Procedure XV, Section I.(A)(1)(f) and the remaining 10 percent of the charge is imposed pursuant to Procedure XV, Section I.(B)(1). To improve the transparency of the CNS Fails Charge in the Rules and to clarify NSCC's current practices with respect to the assessment and collection of the CNS Fails Charge, NSCC is proposing to amend the Rules to provide that, for any Member that is rated 7 on the Credit Risk Rating Matrix, the CNS Fails Charge would be 20 percent of the Member's aggregate CNS Fails Positions. Members that are not rated by the Credit Risk Rating Matrix are not subject to the CNS Fails Charge; however, they can be placed on the Watch List as deemed necessary by NSCC to protect itself and its Members.\7\ Members that are placed on the Watch List are required to make additional Clearing Fund deposits when deemed necessary by NSCC from time to time.\8\ --------------------------------------------------------------------------- \7\ Section 4(c) of Rule 2B (Ongoing Membership Requirements and Monitoring), supra note 3. \8\ Section I.(B)(1) of Procedure XV (Clearing Fund Formula and Other Matters), supra note 3. --------------------------------------------------------------------------- (iii) Detailed Description of the Proposed Rule Changes NSCC is proposing to amend Rule 1 to add a definition for CNS Fails Position. The proposed definition would provide that the term ``CNS Fails Position'' means either a Long Position or a Short Position that did not settle on the Settlement Date. NSCC is also proposing to amend Procedure XV, Section I.(A)(1)(f) to provide that a Member's contribution to the Clearing Fund shall include an amount that is calculated by multiplying the Current Market Value for such Member's aggregate CNS Fails Positions by (i) 5 percent for Members rated 1 through 4 on the Credit Risk Rating Matrix, (ii) 10 percent for Members rated 5 or 6 on the Credit Risk Rating Matrix, or (iii) 20 percent for Members rated 7 on the Credit Risk Rating Matrix. 2. Statutory Basis NSCC believes that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a registered clearing agency. Specifically, NSCC believes that the proposed rule change is consistent with Section 17A(b)(3)(F) of the Act \9\ and Rules 17Ad-22(e)(4), (e)(6)(i), and (e)(23)(i),\10\ each as promulgated under the Act, for the reasons described below. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78q-1(b)(3)(F). \10\ 17 CFR 240.17Ad-22(e)(4), (e)(6)(i), and (e)(23)(i). --------------------------------------------------------------------------- Section 17A(b)(3)(F) of the Act requires that the Rules be designed to promote the prompt and accurate clearance and settlement of securities transactions and to assure the safeguarding of securities and funds which are in the custody or control of NSCC or for which it is responsible.\11\ The proposed rule changes to clarify NSCC's current practices regarding the assessment and collection of the CNS Fails Charge would provide transparency in the Rules with respect to the charge. By doing so, these proposed rule changes would ensure that the Rules remain transparent, accurate and clear, which would enable all stakeholders to readily understand their respective rights and obligations regarding NSCC's clearance and settlement of securities transactions. Therefore, NSCC believes that these proposed rule changes would promote the prompt and accurate clearance and settlement of securities transactions, consistent with Section 17A(b)(3)(F) of the Act. In addition, the proposed rule changes to amend provisions in the Rules regarding the CNS Fails Charge would protect NSCC from potential losses in the event that a Member defaults. Specifically, the CNS Fails Charge is calculated and collected by NSCC from Members with CNS Fails Positions in order to mitigate the credit exposures to NSCC resulting from those positions. Mitigating NSCC's risk exposures from CNS Fails Positions would promote the safeguarding of securities and funds that are within NSCC's custody or control, consistent with the requirements of Section 17A(b)(3)(F) of the Act. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- Rule 17Ad-22(e)(4) under the Act requires NSCC to establish, implement, maintain and enforce written policies and procedures reasonably designed to effectively identify, measure, monitor and manage its credit exposures to participants and those exposures arising from its payment, clearing and settlement processes.\12\ The CNS Fails Charge is being imposed on Members with CNS Fails Positions in order to reduce credit exposures to NSCC resulting from those positions. As proposed, it is designed to obtain from such Member financial resources commensurate with the credit exposures posed to NSCC by such Member's CNS Fails Positions. Therefore, NSCC believes that management of its credit exposures to its Members through the CNS Fails Charge is consistent with Rule 17Ad-22(e)(4) under the Act. --------------------------------------------------------------------------- \12\ 17 CFR 240.17Ad-22(e)(4). --------------------------------------------------------------------------- Rule 17Ad-22(e)(6)(i) under the Act requires NSCC to establish, implement, maintain and enforce written policies and procedures reasonably designed to cover its credit exposures to its Members by establishing a risk-based margin system that, at a minimum, considers, and produces margin levels commensurate with, the risks and particular attributes of each relevant product, portfolio and market.\13\ When applicable, the CNS Fails Charge is a component of a Member's Required Deposit and is designed to cover NSCC's credit exposures to Members with CNS Fails Positions. As described above, the CNS Fails Charge is determined based on the amount of CNS Fails Positions in a Member's portfolio and is commensurate with the Member's default risk. Therefore, NSCC believes the coverage of its credit exposures to its Members through the CNS Fails Charge is consistent with Rule 17Ad- 22(e)(6)(i) under the Act. --------------------------------------------------------------------------- \13\ 17 CFR 240.17Ad-22(e)(6)(i). --------------------------------------------------------------------------- Rule 17Ad-22(e)(23)(i) under the Act requires NSCC to establish, implement, maintain and enforce written policies and procedures reasonably designed to publicly disclose all relevant rules and material procedures.\14\ The proposed rule change to clarify NSCC's current practices with respect to the assessment and collection of the CNS Fails Charge would also improve the transparency of the Rules regarding the CNS Fails Charge. As such, NSCC believes that the proposed rule change would promote disclosure of relevant rules and material procedures relating to the CNS Fails Charge and therefore is consistent with Rule 17Ad-22(e)(23)(i) under the Act. --------------------------------------------------------------------------- \14\ 17 CFR 240.17Ad-22(e)(23)(i). --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition NSCC does not believe that the proposed rule change to amend the provisions in the Rules relating to the CNS Fails Charge would impose any burden on competition that is not necessary or appropriate in furtherance of the Act.\15\ NSCC believes that the CNS Fails Charge is necessary for NSCC to limit its exposures to potential losses from defaults by Members with CNS Fails Positions. Additionally, NSCC believes that the CNS Fails Charge is appropriate because it is imposed on Members on an individualized basis and is reasonably calculated based on the Members' default risks as well as the risks posed to NSCC by the Members' [[Page 40178]] CNS Fails Positions. Therefore, NSCC believes any burden on competition imposed by the CNS Fails Charge would be necessary and appropriate in furtherance of the Act in order to limit NSCC's exposures to the risks being mitigated by such charge. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78q-1(b)(3)(I). --------------------------------------------------------------------------- NSCC does not believe that the proposed rule change to clarify NSCC's current practices with respect to the assessment and collection of the CNS Fails Charge would impact competition.\16\ The proposed rule change would increase the transparency of the Rules regarding this existing charge and codify NSCC's current practices with respect to the assessment and imposition of the charge. As such, NSCC believes that this proposed rule change would not impact Members or have any impact on competition. --------------------------------------------------------------------------- \16\ Id. --------------------------------------------------------------------------- (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others Written comments relating to this proposed rule change have not been solicited or received. NSCC will notify the Commission of any written comments received by NSCC. 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 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-NSCC-2017-015 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-NSCC-2017-015. 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 20549-1090 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of NSCC and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2017-015 and should be submitted on or before September 14, 2017. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2017-17911 Filed 8-23-17; 8:45 am] BILLING CODE 8011-01-P
![40176 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices
POSTAL SERVICE solicit comments on the proposed rule losses to NSCC associated with the
change from interested persons. liquidation of the Member’s portfolio if
Product Change—Priority Mail NSCC ceases to act for a Member.5
Express, Priority Mail, and First-Class I. Clearing Agency’s Statement of the When a Member does not satisfy its
Package Service Negotiated Service Terms of Substance of the Proposed obligation to either pay the net
Rule Change settlement proceeds or deliver the
Agreement
The proposed rule change would securities due by the applicable
AGENCY: Postal ServiceTM. amend provisions in NSCC’s Rules and Settlement Date, NSCC, as a central
ACTION: Notice. Procedures (‘‘Rules’’) 3 regarding an counterparty, is exposed to credit and
existing margin charge that is applied market risks. Such exposures generally
SUMMARY: The Postal Service gives when a Member fails to settle a Short increase when the Member’s risk of
notice of filing a request with the Postal Position or a Long Position by the default increases, as reflected by the
Regulatory Commission to add a applicable settlement date (‘‘CNS Fails Member’s credit rating derived from the
domestic shipping services contract to Charge’’) and would clarify NSCC’s Credit Risk Rating Matrix.6 Therefore, in
the list of Negotiated Service current practices with respect to the order to reduce the risk exposures to
Agreements in the Mail Classification assessment and collection of the CNS NSCC and to incentivize Members to
Schedule’s Competitive Products List. Fails Charge. satisfy their obligations relating to their
DATES: Date of notice required under 39 outstanding trades on Settlement Date,
II. Clearing Agency’s Statement of the
U.S.C. 3642(d)(1): August 24, 2017. NSCC currently calculates and collects
Purpose of, and Statutory Basis for, the
FOR FURTHER INFORMATION CONTACT: Proposed Rule Change the CNS Fails Charge from Members
Elizabeth A. Reed, 202–268–3179. with Short Positions and/or Long
In its filing with the Commission, the Positions that did not settle on the
SUPPLEMENTARY INFORMATION: The
clearing agency included statements Settlement Date (‘‘CNS Fails Positions’’).
United States Postal Service® hereby concerning the purpose of and basis for
gives notice that, pursuant to 39 U.S.C. The amount of the CNS Fails Charge
the proposed rule change and discussed imposed on a Member varies based on
3642 and 3632(b)(3), on August 18, any comments it received on the
2017, it filed with the Postal Regulatory the Member’s credit rating derived from
proposed rule change. The text of these the Credit Risk Rating Matrix to reflect
Commission a Request of the United statements may be examined at the
States Postal Service to Add Priority the potential increase in credit risk from
places specified in Item IV below. The Members with higher risk of default.
Mail Express, Priority Mail, & First-Class clearing agency has prepared This proposed rule change would
Package Service Contract 22 to summaries, set forth in sections A, B, amend the Rules regarding the CNS
Competitive Product List. Documents and C below, of the most significant Fails Charge. Specifically, where certain
are available at www.prc.gov, Docket aspects of such statements. percentages are used to calculate the
Nos. MC2017–177, CP2017–278.
(A) Clearing Agency’s Statement of the CNS Fails Charge for a Member, the
Stanley F. Mires, Purpose of, and Statutory Basis for, the proposed rule change would amend the
Attorney, Federal Compliance. Proposed Rule Change Rules to include such specific
[FR Doc. 2017–17888 Filed 8–23–17; 8:45 am] percentages. In doing so, the proposed
1. Purpose rule change would add transparency as
BILLING CODE 7710–12–P
The proposed rule change would (1) well as clarify NSCC’s current practices
amend provisions in the Rules regarding with respect to the assessment and
the CNS Fails Charge, which NSCC collection of this existing margin charge.
SECURITIES AND EXCHANGE currently imposes on each NSCC
COMMISSION (ii) Calculation of the CNS Fails Charge
member (‘‘Member’’),4 as part of each
Member’s Required Deposit to the NSCC For a Member with CNS Fails
[Release No. 34–81439; File No. SR–NSCC–
Clearing Fund, which is due at the start Positions, the CNS Fails Charge is
2017–015]
of each business day, when all calculated by multiplying the Current
Self-Regulatory Organizations; conditions to the application of the Market Value for such Member’s
National Securities Clearing charge, as described below, are met, and aggregate CNS Fails Positions by a
Corporation; Notice of Filing of (2) clarify NSCC’s current practices with percentage. For a Member that is rated
Proposed Rule Change To Amend and respect to the assessment and collection 1 through 4 on the Credit Risk Rating
Clarify a Margin Charge Relating to of the CNS Fails Charge. Matrix, the CNS Fails Charge is 5
CNS Fails Position percent of the Member’s aggregate CNS
(i) The Required Deposit and the CNS Fails Positions. For a Member that is
August 18, 2017 Fails Charge rated 5 or 6 on the Credit Risk Rating
Pursuant to Section 19(b)(1) of the NSCC uses a risk-based margin Matrix, the CNS Fails Charge is 10
Securities Exchange Act of 1934 methodology to assess Required percent of the Member’s aggregate CNS
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Deposits from all Members. The Fails Positions. For a Member that is
notice is hereby given that on August Required Deposit is comprised of a rated 7 on the Credit Risk Rating Matrix,
11, 2017, National Securities Clearing number of risk-based component NSCC is currently charging such
Corporation (‘‘NSCC’’) filed with the charges, including the CNS Fails Member 20 percent of the Member’s
Securities and Exchange Commission Charge, which are calculated and
5 When NSCC restricts a Member’s access to
(‘‘Commission’’) the proposed rule assessed daily. The objective of the
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services generally, NSCC is said to have ‘‘ceased to
change as described in Items I, II, and Required Deposit is to mitigate potential act’’ for the Member. Rule 46 (Restrictions on
III below, which Items have been Access to Services) sets out the circumstances
prepared by the clearing agency. The 3 Capitalized terms not defined herein are defined under which NSCC may cease to act for a Member
Commission is publishing this notice to in the Rules, available at http://www.dtcc.com/∼/ and the types of actions it may take. Supra note 3.
media/Files/Downloads/legal/rules/nscc_rules.pdf. 6 See Exchange Act Release Nos. 80734 (May 19,
4 The CNS Fails Charge is currently imposed by 2017), 82 FR 24177 (May 25, 2017) (SR–NSCC–
1 15 U.S.C. 78s(b)(1). NSCC pursuant to Procedure XV, Section I.(A)(1)(f). 2017–002) and 80731 (May 19, 2017), 82 FR 24174
2 17 CFR 240.19b–4. Id. (May 25, 2017) (SR–NSCC–2017–801).
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![40178 Federal Register / Vol. 82, No. 163 / Thursday, August 24, 2017 / Notices
CNS Fails Positions. Therefore, NSCC Paper Comments SECURITIES AND EXCHANGE
believes any burden on competition COMMISSION
imposed by the CNS Fails Charge would • Send paper comments in triplicate
to Secretary, Securities and Exchange [Release No 34–81442; File No. SR–
be necessary and appropriate in NYSEArca–2017–54]
furtherance of the Act in order to limit Commission, 100 F Street NE.,
NSCC’s exposures to the risks being Washington, DC 20549–1090. Self-Regulatory Organizations; NYSE
mitigated by such charge. All submissions should refer to File Arca, Inc.; Notice of Filing of
NSCC does not believe that the Number SR–NSCC–2017–015. This file Amendment No. 1 and Order Granting
proposed rule change to clarify NSCC’s number should be included on the Accelerated Approval of a Proposed
current practices with respect to the subject line if email is used. To help the Rule Change, as Modified by
assessment and collection of the CNS Amendment No. 1, To Amend the
Commission process and review your
Fails Charge would impact Generic Listing Criteria Applicable to
comments more efficiently, please use
competition.16 The proposed rule Equity Index-Linked Securities
only one method. The Commission will
change would increase the transparency
of the Rules regarding this existing post all comments on the Commission’s August 18, 2017.
charge and codify NSCC’s current Internet Web site (http://www.sec.gov/
rules/sro.shtml). Copies of the I. Introduction
practices with respect to the assessment
and imposition of the charge. As such, submission, all subsequent On May 4, 2017, NYSE Arca, Inc.
NSCC believes that this proposed rule amendments, all written statements (‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
change would not impact Members or with respect to the proposed rule with the Securities and Exchange
have any impact on competition. change that are filed with the Commission (‘‘Commission’’), pursuant
Commission, and all written to Section 19(b)(1) of the Securities
(C) Clearing Agency’s Statement on communications relating to the Exchange Act of 1934 (‘‘Act’’ or
Comments on the Proposed Rule proposed rule change between the ‘‘Exchange Act’’) 1 and Rule 19b–4
Change Received From Members, thereunder,2 a proposed rule change to
Commission and any person, other than
Participants, or Others amend the generic listing criteria
those that may be withheld from the
Written comments relating to this public in accordance with the applicable to Equity Index-Linked
proposed rule change have not been Securities.3 The proposed rule change
provisions of 5 U.S.C. 552, will be
solicited or received. NSCC will notify was published for comment in the
available for Web site viewing and
the Commission of any written Federal Register on May 23, 2017.4 On
printing in the Commission’s Public
comments received by NSCC. July 6, 2017, pursuant to Section
Reference Room, 100 F Street NE., 19(b)(2) of the Act,5 the Commission
III. Date of Effectiveness of the Washington, DC 20549–1090 on official designated a longer period within which
Proposed Rule Change, and Timing for business days between the hours of to approve the proposed rule change,
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the disapprove the proposed rule change, or
filing also will be available for institute proceedings to determine
Within 45 days of the date of
inspection and copying at the principal whether to disapprove the proposed
publication of this notice in the Federal
office of NSCC and on DTCC’s Web site rule change.6 On August 17, 2017, the
Register or within such longer period
up to 90 days (i) as the Commission may (http://dtcc.com/legal/sec-rule- Exchange filed Amendment No. 1 to the
designate if it finds such longer period filings.aspx). All comments received proposed rule change, which replaced
to be appropriate and publishes its will be posted without change; the and superseded the original proposal in
reasons for so finding or (ii) as to which Commission does not edit personal its entirety.7 The Commission received
the self-regulatory organization identifying information from
1 15 U.S.C. 78s(b)(1).
consents, the Commission will: submissions. You should submit only
2 17 CFR 240.19b–4.
(A) By order approve or disapprove information that you wish to make 3 Equity Index-Linked Securities are securities
such proposed rule change, or available publicly. All submissions that provide for the payment at maturity (or earlier
(B) institute proceedings to determine should refer to File Number SR–NSCC– redemption) based on the performance of an
whether the proposed rule change 2017–015 and should be submitted on underlying index or indexes of equity securities,
securities of closed-end management investment
should be disapproved. or before September 14, 2017. companies registered under the Investment
For the Commission, by the Division of Company Act of 1940 and/or Investment Company
IV. Solicitation of Comments Units (‘‘Units’’). See NYSE Arca Rule 5.2–
Trading and Markets, pursuant to delegated
Interested persons are invited to E(j)(6)(B)(I)(1).
authority.17 4 See Securities Exchange Act Release No. 80707
submit written data, views and Robert W. Errett, (May 17, 2017), 82 FR 23636.
arguments concerning the foregoing, 5 15 U.S.C. 78s(b)(2).
Deputy Secretary.
including whether the proposed rule 6 See Securities Exchange Act Release No. 81081,
change is consistent with the Act. [FR Doc. 2017–17911 Filed 8–23–17; 8:45 am] 82 FR 32218 (July 12, 2017).
Comments may be submitted by any of BILLING CODE 8011–01–P 7 In Amendment No. 1 the Exchange: (1) Revised
the following methods: proposed NYSE Arca Rules-5.2–
E(j)(6)(B)(I)(1)(b)(iii) and 5.2–E(j)(6)(B)(I)(2)(a)(i) to
Electronic Comments provide that the index concentration limit
applicable to the five highest dollar-weighted
• Use the Commission’s Internet components would apply only to an index with five
rmajette on DSKBCKNHB2PROD with NOTICES
comment form (http://www.sec.gov/ or more components that are not Derivative
Securities Products or Index-Linked Securities (as
rules/sro.shtml); or those terms are defined below) and to provide that
• Send an email to rule-comments@ these securities would only be excluded from the
sec.gov. Please include File Number SR– numerator of the index concentration limit
NSCC–2017–015 on the subject line. calculation; (2) modified proposed NYSE Arca Rule
5.2–E(j)(6)(B)(I)(1)(a) to specify that Derivative
Securities Products and Index-Linked Securities (as
16 Id. 17 17 CFR 200.30–3(a)(12). those terms are defined below) also include
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Document Created: 2018-10-24 12:35:25
Document Modified: 2018-10-24 12:35:25
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| FR Citation | 82 FR 40176 |
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