82 FR 44234 - Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Implement the Capped Contingency Liquidity Facility in the Government Securities Division Rulebook
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 182 (September 21, 2017)
Federal Register Volume 82, Issue 182 (September 21, 2017)
| Page Range | 44234-44235 | |
| FR Document | 2017-20090 |
[Federal Register Volume 82, Number 182 (Thursday, September 21, 2017)] [Notices] [Pages 44234-44235] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-20090] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81638; File No. SR-FICC-2017-002] Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Implement the Capped Contingency Liquidity Facility in the Government Securities Division Rulebook September 15, 2017. On March 1, 2017, Fixed Income Clearing Corporation (``FICC'') filed with the Securities and Exchange Commission (``Commission'') proposed rule change SR-FICC-2017-002 (``Proposed Rule Change'') pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act''),\1\ and Rule 19b-4 thereunder,\2\ to implement a Capped Contingency Liquidity Facility in FICC's Government Securities Division Rulebook.\3\ The Proposed Rule Change was published for comment in the Federal Register on March 20, 2017.\4\ The Commission received five comment letters \5\ to the Proposed Rule Change, including a response letter from FICC. On May 30, 2017, the Commission instituted proceedings under Section 19(b)(2)(B)(i) of the Act \6\ to determine whether to approve or disapprove the Proposed Rule Change.\7\ --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ FICC also filed the Proposed Rule Change as advance notice SR-FICC-2017-802 (``Advance Notice'') pursuant to Section 806(e)(1) of the Payment, Clearing, and Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1), and Rule 19b-4(n)(1)(i) under the Act, 17 CFR 240.19b-4(n)(1)(i). Notice of filing of the Advance Notice was published for comment in the Federal Register on March 15, 2017. Securities Exchange Act Release No. 80191 (March 9, 2017), 82 FR 13876 (March 15, 2017) (SR-FICC-2017-802). The Commission extended the deadline for its review period of the Advance Notice from April 30, 2017 to June 29, 2017. Securities Exchange Act Release No. 80520 (April 25, 2017), 82 FR 20404 (May 1, 2017) (SR-FICC-2017-802). The Commission issued a notice of no objection to the Advance Notice on June 29, 2017. Securities Exchange Act Release No. 81054 (June 29, 2017), 82 FR 31356 (July 6, 2017). The proposal in the Proposed Rule Change and the Advance Notice shall not take effect until all regulatory actions required with respect to the proposal are completed. \4\ Securities Exchange Act Release No. 80234 (March 14, 2017), 82 FR 14401 (March 20, 2017) (SR-FICC-2017-002). \5\ See letter from Robert E. Pooler Jr., Chief Financial Officer, Ronin Capital LLC (``Ronin''), dated April 10, 2017, to Robert W. Errett, Deputy Secretary, Commission; letter from Alan B. Levy, Managing Director, Industrial and Commercial Bank of China Financial Services LLC (``ICBC''), Philip Vandermause, Director, Aardvark Securities LLC (``Aardvark''), David Rutter, Chief Executive Officer, LiquidityEdge LLC, Robert Pooler, Chief Financial Officer, Ronin, Jason Manumaleuna, Chief Financial Officer and EVP, Rosenthal Collins Group LLC, and Scott Skyrm, Managing Director, Wedbush Securities Inc. (``Wedbush''); letter from Timothy J. Cuddihy, Managing Director, FICC, dated April 25, 2017, to Robert W. Errett, Deputy Secretary, Commission; letter from Robert E. Pooler Jr., Chief Financial Officer, Ronin, dated June 19, 2017, to Robert W. Errett, Deputy Secretary, Commission; and letter from Alan B. Levy, Managing Director, ICBC, Philip Vandermause, Director, Aardvark, Robert Pooler, Chief Financial Officer, Ronin, and Scott Skyrm, Managing Director, Wedbush, dated June 27, 2017, to Robert W. Errett, Deputy Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2017-002/ficc2017002.htm. \6\ 15 U.S.C. 78s(b)(2)(B)(i). \7\ See Securities Exchange Act Release No. 80812 (May 30, 2017), 82 FR 25642 (June 2, 2017) (SR-FICC-2017-002). --------------------------------------------------------------------------- Section 19(b)(2)(B)(ii) of the Act provides that, after initiating proceedings, the Commission shall issue an order approving or disapproving the proposed rule change not later than 180 days after the date of publication of notice of filing of the proposed rule change.\8\ The Commission may, however, extend the period for issuing an order approving or disapproving the proposed rule change by not more than 60 days if the Commission determines that a longer period is appropriate and publishes the reasons for such determination.\9\ --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(2)(B)(ii). \9\ Id. --------------------------------------------------------------------------- The 180th day after publication of the notice for the Proposed Rule Change in the Federal Register is September 16, 2017. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the Proposed Rule Change so that it has sufficient time to consider the Proposed Rule Change and the comments received. Accordingly, the Commission, pursuant to Section 19(b)(2)(B)(ii) of the Act,\10\ designates November 15, 2017 as the date by which the Commission shall either approve or disapprove the Proposed Rule Change. --------------------------------------------------------------------------- \10\ Id. --------------------------------------------------------------------------- The Commission also seeks additional comment to help further inform its analysis of the Proposed Rule Change. Specifically, the Commission invites interested persons to provide views, data, and arguments concerning the Proposed Rule Change, including whether the Proposed Rule Change is consistent with the Act and the applicable rules or regulations thereunder. Please note that comments previously received on the substance of the Proposed Rule Change will be considered together with comments submitted in response to this notice. Therefore, while commenters are free to [[Page 44235]] submit additional comments at this time, they need not re-submit earlier comments. In addition, the Commission seeks comment on the following: 1. The Proposed Rule Change would require each Netting Member to attest that its Individual Total Amount has been incorporated into its liquidity plans (``Attestation Requirement'').\11\ The Commission requests comment on the means by which the various types of Netting Members anticipate complying with the Proposed Rule Change, including the Attestation Requirement, and the expected cost (monetary or otherwise) of such compliance. To the extent possible, please provide specific data, analyses, or studies for support. --------------------------------------------------------------------------- \11\ See Securities Exchange Act Release No. 80234 (March 14, 2017), 82 FR 14401 (March 20, 2017) (SR-FICC-2017-002). --------------------------------------------------------------------------- 2. The Proposed Rule Change would require FICC to provide each Netting Member with a daily ``liquidity funding report'' to help the Netting Member monitor and manage the liquidity risk it presents to FICC. The Commission requests comment on the value of such daily reporting to Netting Members and the extent to which and, if so, how Netting Members anticipate adjusting their trading behavior or otherwise managing the liquidity risk they present to FICC, whether in reliance on the daily liquidity funding report or otherwise. Please explain and, to the extent possible, provide specific data, analyses, or studies on potential changes to trading behavior or other adjustments to manage liquidity obligations to FICC for support. a. If such adjustments would include changes in market participation, participation in certain market segments, or the quantity or price of services offered to clients, please provide information of such changes, in addition to any supporting data, analyses, or studies. b. If such adjustments would include deciding to clear repo transactions bilaterally, instead of centrally through FICC, please provide the rationale and factors considered in making that decision, in addition to any supporting data, analyses, or studies. 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-FICC-2017-002 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-FICC-2017-002. 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 also will be available for inspection and copying at the principal office of FICC 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-FICC-2017-002 and should be submitted on or before October 6, 2017. Any person who wishes to file a rebuttal to any other person's submission must file that rebuttal on or before October 12, 2017. --------------------------------------------------------------------------- \12\ 17 CFR 200.30-3(a)(57). For the Commission, by the Division of Trading and Markets, --------------------------------------------------------------------------- pursuant to delegated authority.\12\ Eduardo Aleman, Assistant Secretary. [FR Doc. 2017-20090 Filed 9-20-17; 8:45 am] BILLING CODE 8011-01-P
![44234 Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Notices
Portfolio Positions currently held by the SECURITIES AND EXCHANGE Change, including a response letter from
Funds. Applicants also seek relief from COMMISSION FICC. On May 30, 2017, the Commission
the prohibitions on affiliated instituted proceedings under Section
[Release No. 34–81638; File No. SR–FICC–
transactions in section 17(a) to permit a 2017–002]
19(b)(2)(B)(i) of the Act 6 to determine
Fund to sell its shares to and redeem its whether to approve or disapprove the
shares from an Acquiring Fund, and to Self-Regulatory Organizations; Fixed Proposed Rule Change.7
engage in the accompanying in-kind Income Clearing Corporation; Notice of Section 19(b)(2)(B)(ii) of the Act
transactions with the Acquiring Fund.2 Designation of Longer Period for provides that, after initiating
The purchase of Creation Units by an Commission Action on Proceedings To proceedings, the Commission shall issue
Acquiring Fund directly from a Fund Determine Whether To Approve or an order approving or disapproving the
will be accomplished in accordance Disapprove a Proposed Rule Change proposed rule change not later than 180
with the policies of the Acquiring Fund To Implement the Capped Contingency days after the date of publication of
Liquidity Facility in the Government notice of filing of the proposed rule
and will be based on the NAVs of the
Securities Division Rulebook change.8 The Commission may,
Funds.
however, extend the period for issuing
9. Section 6(c) of the Act permits the September 15, 2017. an order approving or disapproving the
Commission to exempt any persons or On March 1, 2017, Fixed Income proposed rule change by not more than
transactions from any provision of the Clearing Corporation (‘‘FICC’’) filed 60 days if the Commission determines
Act if such exemption is necessary or with the Securities and Exchange that a longer period is appropriate and
appropriate in the public interest and Commission (‘‘Commission’’) proposed publishes the reasons for such
consistent with the protection of rule change SR–FICC–2017–002 determination.9
investors and the purposes fairly (‘‘Proposed Rule Change’’) pursuant to The 180th day after publication of the
Section 19(b)(1) of the Securities notice for the Proposed Rule Change in
intended by the policy and provisions of
Exchange Act of 1934 (‘‘Act’’),1 and the Federal Register is September 16,
the Act. Section 12(d)(1)(J) of the Act
Rule 19b–4 thereunder,2 to implement a 2017. The Commission finds it
provides that the Commission may Capped Contingency Liquidity Facility
exempt any person, security, or appropriate to designate a longer period
in FICC’s Government Securities within which to issue an order
transaction, or any class or classes of Division Rulebook.3 The Proposed Rule
persons, securities, or transactions, from approving or disapproving the Proposed
Change was published for comment in Rule Change so that it has sufficient
any provision of section 12(d)(1) if the the Federal Register on March 20,
exemption is consistent with the public time to consider the Proposed Rule
2017.4 The Commission received five Change and the comments received.
interest and the protection of investors. comment letters 5 to the Proposed Rule Accordingly, the Commission, pursuant
Section 17(b) of the Act authorizes the
to Section 19(b)(2)(B)(ii) of the Act,10
Commission to grant an order 1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
designates November 15, 2017 as the
permitting a transaction otherwise date by which the Commission shall
3 FICC also filed the Proposed Rule Change as
prohibited by section 17(a) if it finds either approve or disapprove the
advance notice SR–FICC–2017–802 (‘‘Advance
that (a) the terms of the proposed Notice’’) pursuant to Section 806(e)(1) of the Proposed Rule Change.
transaction are fair and reasonable and Payment, Clearing, and Settlement Supervision Act The Commission also seeks additional
do not involve overreaching on the part of 2010, 12 U.S.C. 5465(e)(1), and Rule 19b–
4(n)(1)(i) under the Act, 17 CFR 240.19b–4(n)(1)(i). comment to help further inform its
of any person concerned; (b) the Notice of filing of the Advance Notice was analysis of the Proposed Rule Change.
proposed transaction is consistent with published for comment in the Federal Register on Specifically, the Commission invites
the policies of each registered March 15, 2017. Securities Exchange Act Release
No. 80191 (March 9, 2017), 82 FR 13876 (March 15,
interested persons to provide views,
investment company involved; and (c) 2017) (SR–FICC–2017–802). The Commission data, and arguments concerning the
the proposed transaction is consistent extended the deadline for its review period of the Proposed Rule Change, including
with the general purposes of the Act. Advance Notice from April 30, 2017 to June 29, whether the Proposed Rule Change is
2017. Securities Exchange Act Release No. 80520
For the Commission, by the Division of (April 25, 2017), 82 FR 20404 (May 1, 2017) (SR–
consistent with the Act and the
Investment Management, under delegated FICC–2017–802). The Commission issued a notice applicable rules or regulations
authority. of no objection to the Advance Notice on June 29, thereunder. Please note that comments
2017. Securities Exchange Act Release No. 81054 previously received on the substance of
Eduardo A. Aleman, (June 29, 2017), 82 FR 31356 (July 6, 2017). The
proposal in the Proposed Rule Change and the
the Proposed Rule Change will be
Assistant Secretary. considered together with comments
Advance Notice shall not take effect until all
[FR Doc. 2017–20143 Filed 9–20–17; 8:45 am] regulatory actions required with respect to the submitted in response to this notice.
BILLING CODE 8011–01–P proposal are completed. Therefore, while commenters are free to
4 Securities Exchange Act Release No. 80234
(March 14, 2017), 82 FR 14401 (March 20, 2017)
Financial Officer, Ronin, dated June 19, 2017, to
(SR–FICC–2017–002).
5 See letter from Robert E. Pooler Jr., Chief
Robert W. Errett, Deputy Secretary, Commission;
and letter from Alan B. Levy, Managing Director,
Financial Officer, Ronin Capital LLC (‘‘Ronin’’), ICBC, Philip Vandermause, Director, Aardvark,
dated April 10, 2017, to Robert W. Errett, Deputy Robert Pooler, Chief Financial Officer, Ronin, and
2 The requested relief would apply to direct sales
Secretary, Commission; letter from Alan B. Levy, Scott Skyrm, Managing Director, Wedbush, dated
of shares in Creation Units by a Fund to an Managing Director, Industrial and Commercial Bank June 27, 2017, to Robert W. Errett, Deputy
asabaliauskas on DSKBBXCHB2PROD with NOTICES
Acquiring Fund and redemptions of those shares. of China Financial Services LLC (‘‘ICBC’’), Philip Secretary, Commission, available at https://
Applicants, moreover, are not seeking relief from Vandermause, Director, Aardvark Securities LLC www.sec.gov/comments/sr-ficc-2017-002/
section 17(a) for, and the requested relief will not (‘‘Aardvark’’), David Rutter, Chief Executive Officer, ficc2017002.htm.
apply to, transactions where a Fund could be LiquidityEdge LLC, Robert Pooler, Chief Financial 6 15 U.S.C. 78s(b)(2)(B)(i).
Officer, Ronin, Jason Manumaleuna, Chief Financial
deemed an affiliated person, or a second-tier 7 See Securities Exchange Act Release No. 80812
Officer and EVP, Rosenthal Collins Group LLC, and
affiliate, of an Acquiring Fund because an Adviser Scott Skyrm, Managing Director, Wedbush (May 30, 2017), 82 FR 25642 (June 2, 2017) (SR–
or an entity controlling, controlled by or under Securities Inc. (‘‘Wedbush’’); letter from Timothy J. FICC–2017–002).
common control with an Adviser provides 8 15 U.S.C. 78s(b)(2)(B)(ii).
Cuddihy, Managing Director, FICC, dated April 25,
investment advisory services to that Acquiring 9 Id.
2017, to Robert W. Errett, Deputy Secretary,
Fund. Commission; letter from Robert E. Pooler Jr., Chief 10 Id.
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![Federal Register / Vol. 82, No. 182 / Thursday, September 21, 2017 / Notices 44235
submit additional comments at this Paper Comments SECURITIES AND EXCHANGE
time, they need not re-submit earlier COMMISSION
comments. In addition, the Commission • Send paper comments in triplicate
to Secretary, Securities and Exchange [Release No. 34–81632; File No. SR–GEMX–
seeks comment on the following: 2017–42]
1. The Proposed Rule Change would Commission, 100 F Street NE.,
require each Netting Member to attest Washington, DC 20549–1090. Self-Regulatory Organizations; Nasdaq
that its Individual Total Amount has All submissions should refer to File GEMX, LLC; Notice of Filing and
been incorporated into its liquidity Number SR–FICC–2017–002. This file Immediate Effectiveness of Proposed
plans (‘‘Attestation Requirement’’).11 number should be included on the Rule Change To Amend Its Schedule of
The Commission requests comment on subject line if email is used. To help the Fees To Offer Monthly Subscriptions
the means by which the various types of Commission process and review your for Open and Close Trade Profile
Netting Members anticipate complying comments more efficiently, please use Information
with the Proposed Rule Change, only one method. The Commission will September 15, 2017.
including the Attestation Requirement, post all comments on the Commission’s Pursuant to Section 19(b)(1) of the
and the expected cost (monetary or
Internet Web site (http://www.sec.gov/ Securities Exchange Act of 1934
otherwise) of such compliance. To the
rules/sro.shtml). Copies of the (‘‘Act’’),1 and Rule 19b–4 thereunder,2
extent possible, please provide specific
submission, all subsequent notice is hereby given that on
data, analyses, or studies for support.
amendments, all written statements September 1, 2017, Nasdaq GEMX, LLC
2. The Proposed Rule Change would with respect to the Proposed Rule (‘‘GEMX’’ or ‘‘Exchange’’) filed with the
require FICC to provide each Netting Change that are filed with the Securities and Exchange Commission
Member with a daily ‘‘liquidity funding (‘‘SEC’’ or ‘‘Commission’’) the proposed
Commission, and all written
report’’ to help the Netting Member rule change as described in Items I and
communications relating to the
monitor and manage the liquidity risk it II, below, which Items have been
Proposed Rule Change between the
presents to FICC. The Commission prepared by the Exchange. The
requests comment on the value of such Commission and any person, other than
Commission is publishing this notice to
daily reporting to Netting Members and those that may be withheld from the
solicit comments on the proposed rule
the extent to which and, if so, how public in accordance with the
change from interested persons.
Netting Members anticipate adjusting provisions of 5 U.S.C. 552, will be
their trading behavior or otherwise available for Web site viewing and I. Self-Regulatory Organization’s
managing the liquidity risk they present printing in the Commission’s Public Statement of the Terms of Substance of
to FICC, whether in reliance on the Reference Room, 100 F Street NE., the Proposed Rule Change
daily liquidity funding report or Washington, DC 20549, on official The Exchange proposes to amend its
otherwise. Please explain and, to the business days between the hours of Schedule of Fees to offer monthly
extent possible, provide specific data, 10:00 a.m. and 3:00 p.m. Copies of such subscriptions for Open and Close Trade
analyses, or studies on potential filings also will be available for Profile Information.
changes to trading behavior or other inspection and copying at the principal The text of the proposed rule change
adjustments to manage liquidity office of FICC and on DTCC’s Web site is available on the Exchange’s Web site
obligations to FICC for support. (http://dtcc.com/legal/sec-rule- at www.ise.com, at the principal office
a. If such adjustments would include filings.aspx). All comments received of the Exchange, and at the
changes in market participation, will be posted without change; the Commission’s Public Reference Room.
participation in certain market Commission does not edit personal II. Self-Regulatory Organization’s
segments, or the quantity or price of identifying information from Statement of the Purpose of, and
services offered to clients, please submissions. You should submit only Statutory Basis for, the Proposed Rule
provide information of such changes, in information that you wish to make Change
addition to any supporting data, available publicly. All submissions In its filing with the Commission, the
analyses, or studies. should refer to File Number SR–FICC– Exchange included statements
b. If such adjustments would include 2017–002 and should be submitted on concerning the purpose of and basis for
deciding to clear repo transactions or before October 6, 2017. Any person the proposed rule change and discussed
bilaterally, instead of centrally through who wishes to file a rebuttal to any any comments it received on the
FICC, please provide the rationale and other person’s submission must file that proposed rule change. The text of these
factors considered in making that rebuttal on or before October 12, 2017. statements may be examined at the
decision, in addition to any supporting places specified in Item IV below. The
For the Commission, by the Division of
data, analyses, or studies. Exchange has prepared summaries, set
Trading and Markets, pursuant to delegated
Comments may be submitted by any authority.12 forth in sections A, B, and C below, of
of the following methods: the most significant aspects of such
Eduardo Aleman, statements.
Electronic Comments Assistant Secretary.
A. Self-Regulatory Organization’s
• Use the Commission’s Internet [FR Doc. 2017–20090 Filed 9–20–17; 8:45 am]
Statement of the Purpose of, and
asabaliauskas on DSKBBXCHB2PROD with NOTICES
comment form (http://www.sec.gov/ BILLING CODE 8011–01–P Statutory Basis for, the Proposed Rule
rules/sro.shtml); or Change
• Send an email to rule-comments@
1. Purpose
sec.gov. Please include File Number SR–
FICC–2017–002 on the subject line. The Exchange proposes to amend its
Schedule of Fees to offer monthly
11 See Securities Exchange Act Release No. 80234
1 15 U.S.C. 78s(b)(1).
(March 14, 2017), 82 FR 14401 (March 20, 2017)
(SR–FICC–2017–002). 12 17 CFR 200.30–3(a)(57). 2 17 CFR 240.19b–4.
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Document Created: 2018-10-24 14:35:38
Document Modified: 2018-10-24 14:35:38
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| FR Citation | 82 FR 44234 |
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