82_FR_9107 82 FR 9086 - Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Provide for the Clearance of Additional Credit Default Swap Contracts

82 FR 9086 - Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change To Provide for the Clearance of Additional Credit Default Swap Contracts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 21 (February 2, 2017)

Page Range9086-9087
FR Document2017-02185

Federal Register, Volume 82 Issue 21 (Thursday, February 2, 2017) 
[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Notices]
[Pages 9086-9087]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02185]



[[Page 9086]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79892; File No. SR-ICC-2016-014]


Self-Regulatory Organizations; ICE Clear Credit LLC; Order 
Approving Proposed Rule Change To Provide for the Clearance of 
Additional Credit Default Swap Contracts

January 27, 2017.

I. Introduction

    On November 18, 2016, 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 Australian Corporate Single Name CDS contracts (collectively, 
``STAC Contracts'') and Standard Australian Financial Corporate Single 
Name CDS contracts (collectively, ``STAFC Contracts''). The proposed 
rule change was published for comment in the Federal Register on 
December 7, 2016.\3\ The Commission did not receive comments on the 
proposed rule change. On January 18, 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.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 79439 (December 1, 
2016), 81 FR 88291 (December 7, 2016) (SR-ICC-2016-014).
    \4\ Securities Exchange Act Release No. 79821 (January 18, 
2017), 82 FR 8450 (January 25, 2017) (SR-ICC-2016-014).
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II. Description of the Proposed Rule Change

    The rule change adopts rules that provide the basis for ICC to 
clear additional credit default swap contracts. Specifically, ICC is 
amending Chapter 26 of the ICC Rules to add Subchapters 26M and 26N to 
provide for the clearance of STAC and STAFC Contracts, respectively. 
ICC represents clearing of the additional STAC and STAFC 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.
    ICC represents that STAC Contracts have similar terms to the 
Standard European Corporate Single Name CDS contracts (``STEC 
Contracts'') currently cleared by ICC and governed by Subchapter 26G of 
the ICC Rules. Therefore, ICC states that the rules found in Subchapter 
26M largely mirror the ICC Rules for STEC Contracts in Subchapter 26G, 
with certain modifications that reflect differences in terms and market 
conventions between those contracts and STAC Contracts. STAC Contracts 
will be denominated in United States Dollars.
    ICC Rule 26M-102 (Definitions) sets forth the definitions used for 
the STAC Contracts. ICC represents that the definitions are 
substantially the same as the definitions found in Subchapter 26G of 
the ICC Rules, other than certain conforming changes. Similarly, ICC 
states that its Rules 26M-203 (Restriction on Activity), 26M-206 
(Notices Required of Participants with respect to STAC Contracts), 26M-
303 (STAC Contract Adjustments), 26M-309 (Acceptance of STAC Contracts 
by ICE Clear Credit), 26M-315 (Terms of the Cleared STAC Contract), 
26M-316 (Relevant Physical Settlement Matrix Updates), 26M-502 
(Specified Actions), and 26M-616 (Contract Modification) reflect or 
incorporate the basic contract specifications for STAC Contracts and 
are substantially the same as under Subchapter 26G of the ICC Rules.
    ICC states that STAFC Contracts have similar terms to the Standard 
European Financial Corporate Single Name CDS contracts (``STEFC 
Contracts'') currently cleared by ICC and governed by Subchapter 26H of 
the ICC Rules. Thus, ICC represents that the rules found in Subchapter 
26N largely mirror the ICC Rules for STEFC Contracts in Subchapter 26H, 
with certain modifications that reflect differences in terms and market 
conventions between those contracts and STAFC Contracts. STAFC 
Contracts will be denominated in United States Dollars.
    ICC Rule 26N-102 (Definitions) sets forth the definitions used for 
the STAFC Contracts. ICC states that the definitions are substantially 
the same as the definitions found in Subchapter 26H of the ICC Rules, 
other than certain conforming changes. ICC represents that its Rules 
26N-203 (Restriction on Activity), 26N-206 (Notices Required of 
Participants with respect to STAFC Contracts), 26N-303 (STAFC Contract 
Adjustments), 26N-309 (Acceptance of STAFC Contracts by ICE Clear 
Credit), 26N-315 (Terms of the Cleared STAFC Contract), 26N-316 
(Relevant Physical Settlement Matrix Updates), 26N-502 (Specified 
Actions), and 26N-616 (Contract Modification) reflect or incorporate 
the basic contract specifications for STAFC Contracts and are 
substantially the same as under Subchapter 26H of the ICC Rules.

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \5\ 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. Section 17A(b)(3)(F) 
of the Act \6\ 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.
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    \5\ 15 U.S.C. 78s(b)(2)(C).
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds that the rule change is consistent with the 
requirements of Section 17A of the Act \7\ and the rules and 
regulations thereunder applicable to ICC. The rule changes expands 
clearing to additional products, the STAC and STAFC credit default swap 
contracts, thus promoting the prompt and accurate clearance and 
settlement of securities transactions and, to the extent applicable, 
derivative agreements, contracts, and transactions. ICC represents that 
the STAC and STAFC contracts are similar to the STEC and STEFC 
Contracts that ICC currently clears, and that the STAC and STAFC 
Contracts will be cleared pursuant to ICC's existing clearing 
arrangements and related financial safeguards, protections and risk 
management procedures. Clearing of the STAC and STAFC Contracts will 
thus allow market participants an increased ability to manage risk, 
while ensuring the safeguarding of margin assets pursuant to clearing 
house rules. Therefore, the Commission believes that acceptance of the 
STAC and STAFC 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.\8\
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).

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[[Page 9087]]

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 \9\ and the 
rules and regulations thereunder.
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    \9\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\10\ that the proposed rule change (File No. SR-ICC-2016-014) be, 
and hereby is, approved.\11\
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 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.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2017-02185 Filed 2-1-17; 8:45 am]
BILLING CODE 8011-01-P

9086 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices SECURITIES AND EXCHANGE Subchapter 26G of the ICC Rules. III. Discussion and Commission COMMISSION Therefore, ICC states that the rules Findings found in Subchapter 26M largely mirror Section 19(b)(2)(C) of the Act 5 directs [Release No. 34–79892; File No. SR–ICC– the ICC Rules for STEC Contracts in the Commission to approve a proposed 2016–014] Subchapter 26G, with certain rule change of a self-regulatory Self-Regulatory Organizations; ICE modifications that reflect differences in organization if the Commission finds Clear Credit LLC; Order Approving terms and market conventions between that the proposed rule change is Proposed Rule Change To Provide for those contracts and STAC Contracts. consistent with the requirements of the the Clearance of Additional Credit STAC Contracts will be denominated in Act and the rules and regulations Default Swap Contracts United States Dollars. ICC Rule 26M–102 (Definitions) sets thereunder applicable to such self- January 27, 2017. forth the definitions used for the STAC regulatory organization. Section Contracts. ICC represents that the 17A(b)(3)(F) of the Act 6 requires that, I. Introduction among other things, that the rules of a definitions are substantially the same as On November 18, 2016, ICE Clear the definitions found in Subchapter 26G clearing agency be designed to promote Credit LLC (‘‘ICC’’) filed with the of the ICC Rules, other than certain the prompt and accurate clearance and Securities and Exchange Commission conforming changes. Similarly, ICC settlement of securities transactions (‘‘Commission’’), pursuant to Section states that its Rules 26M–203 and, to the extent applicable, derivative 19(b)(1) of the Securities Exchange Act (Restriction on Activity), 26M–206 agreements, contracts, and transactions, of 1934 (‘‘Act’’) 1 and Rule 19b–4 (Notices Required of Participants with to assure the safeguarding of securities thereunder,2 a proposed rule change to respect to STAC Contracts), 26M–303 and funds which are in the custody or revise the ICC Rulebook (the ‘‘Rules’’) in (STAC Contract Adjustments), 26M–309 control of the clearing agency or for order to provide for the clearance of (Acceptance of STAC Contracts by ICE which it is responsible and, in general, Standard Australian Corporate Single Clear Credit), 26M–315 (Terms of the to protect investors and the public Name CDS contracts (collectively, Cleared STAC Contract), 26M–316 interest. ‘‘STAC Contracts’’) and Standard (Relevant Physical Settlement Matrix The Commission finds that the rule Australian Financial Corporate Single Updates), 26M–502 (Specified Actions), change is consistent with the Name CDS contracts (collectively, and 26M–616 (Contract Modification) requirements of Section 17A of the Act 7 ‘‘STAFC Contracts’’). The proposed rule reflect or incorporate the basic contract and the rules and regulations change was published for comment in specifications for STAC Contracts and thereunder applicable to ICC. The rule the Federal Register on December 7, are substantially the same as under changes expands clearing to additional 2016.3 The Commission did not receive Subchapter 26G of the ICC Rules. products, the STAC and STAFC credit comments on the proposed rule change. ICC states that STAFC Contracts have default swap contracts, thus promoting On January 18, 2017, the Commission similar terms to the Standard European the prompt and accurate clearance and designated a longer period for Financial Corporate Single Name CDS settlement of securities transactions Commission action on the proposed rule contracts (‘‘STEFC Contracts’’) currently and, to the extent applicable, derivative change.4 For the reasons discussed cleared by ICC and governed by agreements, contracts, and transactions. below, the Commission is approving the Subchapter 26H of the ICC Rules. Thus, ICC represents that the STAC and proposed rule change. ICC represents that the rules found in STAFC contracts are similar to the STEC Subchapter 26N largely mirror the ICC and STEFC Contracts that ICC currently II. Description of the Proposed Rule Rules for STEFC Contracts in clears, and that the STAC and STAFC Change Subchapter 26H, with certain Contracts will be cleared pursuant to The rule change adopts rules that modifications that reflect differences in ICC’s existing clearing arrangements and provide the basis for ICC to clear terms and market conventions between related financial safeguards, protections additional credit default swap contracts. those contracts and STAFC Contracts. and risk management procedures. Specifically, ICC is amending Chapter STAFC Contracts will be denominated Clearing of the STAC and STAFC 26 of the ICC Rules to add Subchapters in United States Dollars. Contracts will thus allow market 26M and 26N to provide for the ICC Rule 26N–102 (Definitions) sets participants an increased ability to clearance of STAC and STAFC forth the definitions used for the STAFC manage risk, while ensuring the Contracts, respectively. ICC represents Contracts. ICC states that the definitions safeguarding of margin assets pursuant clearing of the additional STAC and are substantially the same as the to clearing house rules. Therefore, the STAFC Contracts will not require any definitions found in Subchapter 26H of Commission believes that acceptance of changes to ICC’s Risk Management the ICC Rules, other than certain the STAC and STAFC Contracts, on the Framework or other policies and conforming changes. ICC represents that terms and conditions set out in the procedures constituting rules within the its Rules 26N–203 (Restriction on Rules, is consistent with the prompt and meaning of the Act. Activity), 26N–206 (Notices Required of accurate clearance of and settlement of ICC represents that STAC Contracts Participants with respect to STAFC securities transactions and derivative have similar terms to the Standard Contracts), 26N–303 (STAFC Contract agreements, contracts and transactions European Corporate Single Name CDS Adjustments), 26N–309 (Acceptance of cleared by ICC, the safeguarding of contracts (‘‘STEC Contracts’’) currently STAFC Contracts by ICE Clear Credit), securities and funds in the custody or cleared by ICC and governed by 26N–315 (Terms of the Cleared STAFC control of ICC, and the protection of Contract), 26N–316 (Relevant Physical mstockstill on DSK3G9T082PROD with NOTICES investors and the public interest, within 1 15 U.S.C. 78s(b)(1). Settlement Matrix Updates), 26N–502 the meaning of Section 17A(b)(3)(F) of 2 17 CFR 240.19b–4. (Specified Actions), and 26N–616 the Act.8 3 Securities Exchange Act Release No. 79439 (Contract Modification) reflect or (December 1, 2016), 81 FR 88291 (December 7, incorporate the basic contract 5 15 U.S.C. 78s(b)(2)(C). 2016) (SR–ICC–2016–014). 4 Securities Exchange Act Release No. 79821 specifications for STAFC Contracts and 6 15 U.S.C. 78q–1(b)(3)(F). (January 18, 2017), 82 FR 8450 (January 25, 2017) are substantially the same as under 7 15 U.S.C. 78q–1. (SR–ICC–2016–014). Subchapter 26H of the ICC Rules. 8 15 U.S.C. 78q–1(b)(3)(F). VerDate Sep<11>2014 16:31 Feb 01, 2017 Jkt 241001 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 E:\FR\FM\02FEN1.SGM 02FEN1

Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices 9087 IV. Conclusion to be notified of a hearing may request Filing Dates: The application was On the basis of the foregoing, the notification by writing to the filed on December 9, 2016, and Commission finds that the proposal is Commission’s Secretary. amended on January 5, 2017. consistent with the requirements of the ADDRESSES: The Commission: Secretary, Applicant’s Address: c/o Guinness Act and in particular with the U.S. Securities and Exchange Atkinson Asset Management Inc., 21550 requirements of Section 17A of the Act 9 Commission, 100 F Street NE., Oxnard Street, Suite 850, Woodland and the rules and regulations Washington, DC 20549–1090. Hills, California 91367. thereunder. FOR FURTHER INFORMATION CONTACT: Vantagepoint Funds It is therefore ordered, pursuant to Section 19(b)(2) of the Act,10 that the Jessica Shin, Attorney-Adviser, at (202) [File No. 811–08941] proposed rule change (File No. SR–ICC– 551–5921 or Chief Counsel’s Office at (202) 551–6821; SEC, Division of Summary: Applicant seeks an order 2016–014) be, and hereby is, Investment Management, Chief declaring that it has ceased to be an approved.11 Counsel’s Office, 100 F Street NE., investment company. On October 14, For the Commission, by the Division of Washington, DC 20549–8010. 2016, applicant made a final liquidating Trading and Markets, pursuant to delegated distribution to its shareholders, based authority.12 Nuveen New York Performance Plus on net asset value. Applicant has Eduardo A. Aleman, Municipal Fund Inc. established a liquidating trust to provide Deputy Secretary. [File No. 811–05931] for the payment of certain identified [FR Doc. 2017–02185 Filed 2–1–17; 8:45 am] contingent claims with respect to Summary: Applicant, a closed-end BILLING CODE 8011–01–P investment company, seeks an order certain series of applicant. The parent declaring that it has ceased to be an company of applicant’s investment investment company. The applicant has adviser serves as administrator of the SECURITIES AND EXCHANGE liquidating trust. Assets remaining in COMMISSION transferred its assets to Nuveen New York Dividend Advantage Municipal the liquidating trust will be distributed [Release No. IC–32456] Fund and, on May 26, 2015, made a to its beneficiaries after the satisfaction final distribution to its shareholders of all claims. Expenses of $1,693,244 Notice of Applications for incurred in connection with the based on net asset value. Expenses of Deregistration Under Section 8(f) of the liquidation were paid by applicant and approximately $38,358 incurred in Investment Company Act of 1940 applicant’s investment adviser. connection with the reorganization were paid by applicant and approximately Applicant has retained $4,232,893 in January 27, 2017. $283,472 were paid by the acquiring cash and cash equivalents at its The following is a notice of fund. custodian bank to pay for certain applications for deregistration under accrued liabilities. section 8(f) of the Investment Company Filing Dates: The application was Act of 1940 for the month of January filed on January 22, 2016, and amended Filing Dates: The application was 2017. A copy of each application may be on November 14, 2016, and December filed on November 14, 2016 and obtained via the Commission’s Web site 14, 2016. amended on January 5, 2017. by searching for the file number, or for Applicant’s Address: 333 West Applicant’s Address: 777 North an applicant using the Company name Wacker Drive, Chicago, Illinois 60606. Capitol Street NE., Suite 600, box, at http://www.sec.gov/search/ Washington, District of Columbia 20002. search.htm or by calling (202) 551– Corsair Opportunity Fund 8090. An order granting each Matthews A Share Selections Fund, [File No. 811–22978] application will be issued unless the LLC Summary: Applicant, a closed-end SEC orders a hearing. Interested persons [File No. 811–22809] investment company, seeks an order may request a hearing on any declaring that it has ceased to be an Summary: Applicant seeks an order application by writing to the SEC’s investment company. On December 15, declaring that it has ceased to be an Secretary at the address below and 2016, applicant made a liquidating investment company. On September 30, serving the relevant applicant with a distribution to its shareholders, based 2016, applicant made a liquidating copy of the request, personally or by on net asset value. Expenses of $5,009 distribution to its shareholders, based mail. Hearing requests should be incurred in connection with the on net asset value. Expenses of received by the SEC by 5:30 p.m. on liquidation were paid by applicant’s approximately $40,000 incurred in February 21, 2017, and should be investment adviser. connection with the liquidation were accompanied by proof of service on Filing Date: The application was filed paid by the former sole shareholder of applicants, in the form of an affidavit or, on December 16, 2016. each series of applicant. Applicant has for lawyers, a certificate of service. Applicant’s Address: 366 Madison retained a de minimis amount for the Pursuant to Rule 0–5 under the Act, Avenue, 12th Floor, New York, New purpose of completing certain hearing requests should state the nature York 10017. regulatory and liquidation activities in of the writer’s interest, any facts bearing China. These de minimis amounts will upon the desirability of a hearing on the SmartX ETF Trust be paid to the former sole shareholder matter, the reason for the request, and [File No. 811–22825] of each series of applicant. the issues contested. Persons who wish mstockstill on DSK3G9T082PROD with NOTICES Summary: Applicant seeks an order Filing Dates: The application was 9 15 U.S.C. 78q–1. declaring that it has ceased to be an filed on October 20, 2016, and amended 10 15 U.S.C. 78s(b)(2). investment company. Applicant has on December 19, 2016 and January 5, 11 In approving the proposed rule change, the never made a public offering of its 2017. Commission considered the proposal’s impact on efficiency, competition and capital formation. 15 securities and does not propose to make Applicant’s Address: Four U.S.C. 78c(f). a public offering or engage in business Embarcadero Center, Suite 550, San 12 17 CFR 200.30–3(a)(12). of any kind. Francisco, California 94111. VerDate Sep<11>2014 16:31 Feb 01, 2017 Jkt 241001 PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 E:\FR\FM\02FEN1.SGM 02FEN1


Document Created: 2017-02-02 00:55:30
Document Modified: 2017-02-02 00:55:30
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 9086 
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