82 FR 44477 - Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 183 (September 22, 2017)
Federal Register Volume 82, Issue 183 (September 22, 2017)
| Page Range | 44477-44478 | |
| FR Document | 2017-20204 |
[Federal Register Volume 82, Number 183 (Friday, September 22, 2017)] [Notices] [Pages 44477-44478] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-20204] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-81646; File No. SR-ICC-2017-009] Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the Clearance of Additional Credit Default Swap Contracts September 18, 2017. I. Introduction On June 13, 2017, ICE Clear Credit LLC (``ICC'') filed with the Securities and Exchange Commission (``Commission''), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to revise the ICC Rulebook (the ``Rules'') in order 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''). The proposed rule change was published for comment in the Federal Register on July 3, 2017.\3\ The Commission did not receive comments on the proposed rule change. On August 17, 2017, the Commission designated a longer period for Commission action on the proposed rule change.\4\ For the reasons discussed below, the Commission is approving the proposed rule change. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ Securities Exchange Act Release No. 34-81030 (June 27, 2017), 82 FR 30933 (July 3, 2017) (SR-ICC-2017-009) (``Notice''). \4\ Securities Exchange Act Release No. 34-81414 (August 17, 2017), 82 FR 40050 (August 23, 2017) (SR-ICC-2017-009). --------------------------------------------------------------------------- II. Description of the Proposed Rule Change The purpose of this proposed rule change is to provide the basis for ICC to clear additional credit default swap contracts. Specifically, ICC has proposed amending Chapter 26 of the ICC Rules to add Subchapters 26O (providing for the clearance of STASC Contracts), 26P (providing for the clearance of STASFC Contracts), and 26Q (providing for the clearance of STEMC Contracts). ICC has represented that proposed Subchapters 26O and 26Q have terms similar to those Subchapters governing clearance of other corporate single name CDS contracts,\5\ and that proposed Subchapter 26P has terms similar to those Subchapters governing clearance of other financial corporate single name CDS contracts.\6\ Therefore, ICC states that the rules found in the new Subchapters 26O, 26P, and 26Q ``largely mirror'' the ICC Rules for currently cleared contracts, ``with certain modifications that reflect differences in terms and market conventions.'' \7\ Each contract will be denominated in United States Dollars.\8\ ICC has also represented that clearing of the additional 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.\9\ --------------------------------------------------------------------------- \5\ Notice, 82 FR at 30934. \6\ Id. \7\ Id. \8\ Id. \9\ Id. --------------------------------------------------------------------------- III. Discussion and Commission Findings Section 19(b)(2)(C) of the Act directs the Commission to approve a proposed rule change of a self-regulatory organization if the Commission finds that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such self-regulatory organization.\10\ Section 17A(b)(3)(F) of the Act \11\ requires that, 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, to assure the safeguarding of securities and funds which are in the custody or control of the clearing agency or for which it is responsible and, in general, to protect investors and the public interest. --------------------------------------------------------------------------- \10\ 15 U.S.C. 78s(b)(2)(C). \11\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- The Commission finds that the rule change is consistent with the requirements of Section 17A of the Act \12\ and the rules and regulations thereunder applicable to ICC. The Commission has reviewed the terms and conditions of these contracts and has determined that they are substantially similar to those that ICC currently clears, the key difference being the underlying reference obligations. Moreover, the Commission has reviewed the Notice and ICC's Rules, policies and procedures, which provide that the STASC, STASFC and STEMC Contracts will be cleared pursuant to ICC's existing clearing arrangements and related financial safeguards, protections and risk management procedures.\13\ In addition, the Commission has evaluated information submitted by ICC, including data on volume, open interest, and the number of ICC clearing participants (``CPs'') that currently trade in the STASC, STASFC and STEMC Contracts as well as certain model parameters for the additional STASC, STASFC and STEMC Contracts. Based on this review, the Commission finds that ICC's rules, policies, and procedures are reasonably designed to price and measure the potential risk presented by these products; collect financial resources in proportion to such risk; and liquidate these products in the event of a CP default. Thus, the Commission finds that acceptance of the additional STASC, STASFC and STEMC Contracts, on the terms and conditions set out in ICC's Rules, is consistent with the [[Page 44478]] 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.\14\ --------------------------------------------------------------------------- \12\ 15 U.S.C. 78q-1. \13\ Notice, 82 FR at 30934. \14\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- IV. Conclusion On the basis of the foregoing, the Commission finds that the proposal is consistent with the requirements of the Act and in particular with the requirements of Section 17A of the Act \15\ and the rules and regulations thereunder. --------------------------------------------------------------------------- \15\ 15 U.S.C. 78q-1. --------------------------------------------------------------------------- It is therefore ordered, pursuant to Section 19(b)(2) of the Act,\16\ that the proposed rule change (File No. SR-ICC-2017-009) be, and hereby is, approved.\17\ --------------------------------------------------------------------------- \16\ 15 U.S.C. 78s(b)(2). \17\ In approving the proposed rule change, the Commission considered the proposal's impact on efficiency, competition and capital formation. 15 U.S.C. 78c(f). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\18\ --------------------------------------------------------------------------- \18\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-20204 Filed 9-21-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices 44477
2(d)). This information is made Standard Asia Corporate Single Name III. Discussion and Commission
available to the public. Information CDS contracts (collectively, ‘‘STASC Findings
provided on Form CB is mandatory. Contracts’’), Standard Asia Financial Section 19(b)(2)(C) of the Act directs
Form CB takes approximately 0.5 hours Corporate Single Name CDS contracts the Commission to approve a proposed
per response to prepare and is filed by (collectively, ‘‘STASFC Contracts’’), and rule change of a self-regulatory
approximately 111 respondents Standard Emerging Market Corporate organization if the Commission finds
annually. We estimate that 25% of the Single Name CDS contracts that the proposed rule change is
0.5 hours per response (0.125 hours) is (collectively, ‘‘STEMC Contracts’’). The consistent with the requirements of the
prepared by the respondent for an proposed rule change was published for Act and the rules and regulations
annual reporting burden of 14 hours thereunder applicable to such self-
comment in the Federal Register on July
(0.125 hours per response × 111 regulatory organization.10 Section
3, 2017.3 The Commission did not
responses). 17A(b)(3)(F) of the Act 11 requires that,
An agency may not conduct or receive comments on the proposed rule
change. On August 17, 2017, the among other things, that the rules of a
sponsor, and a person is not required to clearing agency be designed to promote
respond to, a collection of information Commission designated a longer period
for Commission action on the proposed the prompt and accurate clearance and
unless it displays a currently valid settlement of securities transactions
control number. rule change.4 For the reasons discussed
and, to the extent applicable, derivative
The public may view the background below, the Commission is approving the
agreements, contracts, and transactions,
documentation for this information proposed rule change.
to assure the safeguarding of securities
collection at the following Web site,
II. Description of the Proposed Rule and funds which are in the custody or
www.reginfo.gov . Comments should be
Change control of the clearing agency or for
directed to: (i) Desk Officer for the
which it is responsible and, in general,
Securities and Exchange Commission, The purpose of this proposed rule to protect investors and the public
Office of Information and Regulatory change is to provide the basis for ICC to interest.
Affairs, Office of Management and The Commission finds that the rule
clear additional credit default swap
Budget, Room 10102, New Executive change is consistent with the
contracts. Specifically, ICC has
Office Building, Washington, DC 20503, requirements of Section 17A of the
or by sending an email to: Shagufta_ proposed amending Chapter 26 of the
ICC Rules to add Subchapters 26O Act 12 and the rules and regulations
Ahmed@omb.eop.gov; and (ii) Pamela thereunder applicable to ICC. The
Dyson, Director/Chief Information (providing for the clearance of STASC
Contracts), 26P (providing for the Commission has reviewed the terms and
Officer, Securities and Exchange conditions of these contracts and has
Commission, c/o Remi Pavlik-Simon, clearance of STASFC Contracts), and
26Q (providing for the clearance of determined that they are substantially
100 F Street NE., Washington, DC 20549 similar to those that ICC currently
or send an email to: PRA_Mailbox@ STEMC Contracts). ICC has represented
clears, the key difference being the
sec.gov. Comments must be submitted to that proposed Subchapters 26O and 26Q
underlying reference obligations.
OMB within 30 days of this notice. have terms similar to those Subchapters Moreover, the Commission has
Dated: September 15, 2017. governing clearance of other corporate reviewed the Notice and ICC’s Rules,
Eduardo A. Aleman, single name CDS contracts,5 and that policies and procedures, which provide
Assistant Secretary. proposed Subchapter 26P has terms that the STASC, STASFC and STEMC
[FR Doc. 2017–20219 Filed 9–21–17; 8:45 am]
similar to those Subchapters governing Contracts will be cleared pursuant to
BILLING CODE 8011–01–P
clearance of other financial corporate ICC’s existing clearing arrangements and
single name CDS contracts.6 Therefore, related financial safeguards, protections
ICC states that the rules found in the and risk management procedures.13 In
SECURITIES AND EXCHANGE new Subchapters 26O, 26P, and 26Q addition, the Commission has evaluated
COMMISSION ‘‘largely mirror’’ the ICC Rules for information submitted by ICC, including
currently cleared contracts, ‘‘with data on volume, open interest, and the
[Release No. 34–81646; File No. SR–ICC–
2017–009] certain modifications that reflect number of ICC clearing participants
differences in terms and market (‘‘CPs’’) that currently trade in the
Self-Regulatory Organizations; ICE conventions.’’ 7 Each contract will be STASC, STASFC and STEMC Contracts
Clear Credit LLC; Order Approving denominated in United States Dollars.8 as well as certain model parameters for
Proposed Rule Change Relating to the ICC has also represented that clearing of the additional STASC, STASFC and
Clearance of Additional Credit Default the additional STASC, STASFC, and STEMC Contracts. Based on this review,
Swap Contracts STEMC Contracts will not require any the Commission finds that ICC’s rules,
policies, and procedures are reasonably
September 18, 2017. changes to ICC’s Risk Management
designed to price and measure the
Framework or other policies and potential risk presented by these
I. Introduction procedures constituting rules within the products; collect financial resources in
On June 13, 2017, ICE Clear Credit meaning of the Act.9 proportion to such risk; and liquidate
LLC (‘‘ICC’’) filed with the Securities these products in the event of a CP
and Exchange Commission 3 Securities Exchange Act Release No. 34–81030
default. Thus, the Commission finds
(‘‘Commission’’), pursuant to Section (June 27, 2017), 82 FR 30933 (July 3, 2017) (SR–
that acceptance of the additional
19(b)(1) of the Securities Exchange Act ICC–2017–009) (‘‘Notice’’).
4 Securities Exchange Act Release No. 34–81414 STASC, STASFC and STEMC Contracts,
of 1934 (‘‘Act’’) 1 and Rule 19b–4 on the terms and conditions set out in
(August 17, 2017), 82 FR 40050 (August 23, 2017)
thereunder,2 a proposed rule change to (SR–ICC–2017–009). ICC’s Rules, is consistent with the
revise the ICC Rulebook (the ‘‘Rules’’) in 5 Notice, 82 FR at 30934.
order to provide for the clearance of 6 Id. 10 15 U.S.C. 78s(b)(2)(C).
7 Id. 11 15 U.S.C. 78q–1(b)(3)(F).
1 15 U.S.C. 78s(b)(1). 8 Id. 12 15 U.S.C. 78q–1.
2 17 CFR 240.19b–4. 9 Id. 13 Notice, 82 FR at 30934.
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![44478 Federal Register / Vol. 82, No. 183 / Friday, September 22, 2017 / Notices
prompt and accurate clearance of and subadvisers without shareholder may be obtained via the Commission’s
settlement of securities transactions and approval and grant relief from the Web site by searching for the file
derivative agreements, contracts and Disclosure Requirements as they relate number, or an Applicant using the
transactions cleared by ICC, the to fees paid to the subadvisers. The Company name box, at http://
safeguarding of securities and funds in requested order would supersede a prior www.sec.gov/search/search.htm or by
the custody or control of ICC, and the order.1 calling (202) 551–8090.
protection of investors and the public Applicants: Summary of the Application
interest, within the meaning of Section Eagle Capital Appreciation Fund,
17A(b)(3)(F) of the Act.14 Eagle Growth & Income Fund and Eagle 1. The Adviser serves as the
Series Trust (each, a ‘‘Trust’’ and investment adviser to each Fund
IV. Conclusion pursuant to an investment advisory
collectively, the ‘‘Trusts’’), each a
On the basis of the foregoing, the Massachusetts business trust registered agreement with the Fund (the
Commission finds that the proposal is under the Act as an open-end ‘‘Investment Advisory Agreement’’).2
consistent with the requirements of the management investment company with The Adviser provides the Funds with
Act and in particular with the multiple series (each a ‘‘Fund’’), and continuous and comprehensive
requirements of Section 17A of the Carillon Tower Advisers, Inc. (the investment management services subject
Act 15 and the rules and regulations ‘‘Initial Adviser’’), a Florida corporation to the supervision of, and policies
thereunder. registered as an investment adviser established by, each Trust’s board of
It is therefore ordered, pursuant to Trustees (‘‘Board’’). The Investment
under the Investment Advisers Act of
Section 19(b)(2) of the Act,16 that the Advisory Agreement permits the
1940 (collectively with the Trusts, the
proposed rule change (File No. SR–ICC– Adviser, subject to the approval of the
‘‘Applicants’’).
2017–009) be, and hereby is, Board, to delegate to one or more
approved.17 Filing Dates: subadvisers (each, a ‘‘Subadviser’’ and
The application was filed May 17,
For the Commission, by the Division of collectively, the ‘‘Subadvisers’’) the
2017, and amended on August 22, 2017. responsibility to provide the day-to-day
Trading and Markets, pursuant to delegated
authority.18 Hearing or Notification of Hearing: portfolio investment management of
An order granting the application will each Fund, subject to the supervision
Eduardo A. Aleman,
be issued unless the Commission orders and direction of the Adviser.3 The
Assistant Secretary.
a hearing. Interested persons may primary responsibility for managing the
[FR Doc. 2017–20204 Filed 9–21–17; 8:45 am] request a hearing by writing to the Subadvised Funds will remain vested in
BILLING CODE 8011–01–P Commission’s Secretary and serving the Adviser. The Adviser will hire,
Applicants with a copy of the request, evaluate, allocate assets to and oversee
personally or by mail. Hearing requests the Subadvisers, including determining
SECURITIES AND EXCHANGE should be received by the Commission
COMMISSION whether a Subadviser should be
by 5:30 p.m. on October 13, 2017, and terminated, at all times subject to the
[Investment Company Act Release No. should be accompanied by proof of authority of the Board.
32802A; 812–14777–01] service on the Applicants, in the form 2. Applicants request an exemption to
of an affidavit or, for lawyers, a permit the Adviser, subject to Board
Eagle Series Trust, et al. certificate of service. Pursuant to rule 0– approval, to hire certain Subadvisers
September 18, 2017. 5 under the Act, hearing requests should pursuant to subadvisory agreements
AGENCY: Securities and Exchange state the nature of the writer’s interest,
Commission (‘‘Commission’’). any facts bearing upon the desirability 2 Applicants request relief with respect to the
ACTION: Corrected notice to amend file
of a hearing on the matter, the reason for named Applicants, as well as to any future Fund
and any other existing or future registered open-end
number (see Eagle Series Trust, et al. the request, and the issues contested. management investment company or series thereof
IC–32802) (Aug. 31, 2017). Persons who wish to be notified of a that intends to rely on the requested order in the
hearing may request notification by future and that: (i) Is advised by the Adviser; (ii)
Notice of an application under section writing to the Commission’s Secretary. uses the multi- manager structure described in the
application; and (iii) complies with the terms and
6(c) of the Investment Company Act of ADDRESSES: Secretary, U.S. Securities conditions of the application (each, together with
1940 (‘‘Act’’) for an exemption from and Exchange Commission, 100 F Street any Fund that currently uses the multi-manager
section 15(a) of the Act and rule 18f–2 NE., Washington, DC 20549–1090. structure described in the application, a
under the Act, as well as from certain ‘‘Subadvised Fund’’). The term ‘‘Adviser’’ means (i)
Applicants: Susan L. Walzer, Carillon the Initial Adviser, (ii) its successors, and (iii) any
disclosure requirements in rule 20a–1 Tower Advisers, Inc., 880 Carillon entity controlling, controlled by, or under common
under the Act, Item 19(a)(3) of Form N– Parkway, St. Petersburg, FL 33716 and control with, the Initial Adviser or its successors.
1A, Items 22(c)(1)(ii), 22(c)(1)(iii), Kathy Kresch Ingber, K&L Gates LLP, For purposes of the requested order, ‘‘successor’’ is
limited to an entity resulting from a reorganization
22(c)(8) and 22(c)(9) of Schedule 14A 1601 K Street NW., Washington, DC into another jurisdiction or a change in the type of
under the Securities Exchange Act of 20006–1600. business organization.
1934, and Sections 6–07(2)(a), (b), and FOR FURTHER INFORMATION CONTACT: 3 A ‘‘Subadviser’’ for a Fund is (1) an indirect or
(c) of Regulation S–X (‘‘Disclosure Laura L. Solomon, Senior Counsel, at direct ‘‘wholly owned subsidiary’’ (as such term is
Requirements’’). The requested defined in the Act) of the Adviser, or (2) a sister
(202) 551–6915, or David Marcinkus, company of the Adviser that is an indirect or direct
exemption would permit an investment Branch Chief, at (202) 551–6821 ‘‘wholly-owned subsidiary’’ (as such term is
adviser to hire and replace certain (Division of Investment Management, defined in the Act) of the same company that,
indirectly or directly, wholly owns the Adviser
Chief Counsel’s Office). (each of (1) and (2) a ‘‘Wholly-Owned Subadviser’’
14 15 U.S.C. 78q-1(b)(3)(F).
15 15
SUPPLEMENTARY INFORMATION: The and collectively, the ‘‘Wholly-Owned
U.S.C. 78q-1.
following is a summary of the Subadvisers’’), or (3) not an ‘‘affiliated person’’ (as
16 15 U.S.C. 78s(b)(2).
such term is defined in Section 2(a)(3) of the Act)
17 In approving the proposed rule change, the application. The complete application of a Fund or the Adviser, except to the extent that
Commission considered the proposal’s impact on an affiliation arises solely because the Subadviser
efficiency, competition and capital formation. 15 1 Eagle Capital Appreciation Fund, et al., serves as a subadviser to one or more Funds (each
U.S.C. 78c(f). Investment Company Act Rel. Nos. 31239 (Sep. 3, a ‘‘Non-Affiliated Subadviser’’ and collectively, the
18 17 CFR 200.30–3(a)(12). 2014) (notice) and 31269 (Sep. 29, 2014) (order). ‘‘Non-Affiliated Subadvisers’’).
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Document Created: 2017-09-22 01:52:23
Document Modified: 2017-09-22 01:52:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 82 FR 44477 |
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