82 FR 9089 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Implement Collateral Fee Changes

SECURITIES AND EXCHANGE COMMISSION

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

[Federal Register Volume 82, Number 21 (Thursday, February 2, 2017)]
[Notices]
[Pages 9089-9090]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02183]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-79889; File No. SR-ICC-2017-001]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Implement 
Collateral Fee Changes

January 27, 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 January 23, 2017, ICE Clear Credit LLC (``ICC'') 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 primarily by ICC. ICC filed the proposed rule change 
pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) \4\ 
thereunder, so that the proposal was effective upon filing with the 
Commission. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice

    The principal purpose of the proposed changes is to implement 
changes to the fee that ICC charges for U.S. Treasury securities 
collateral deposits.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change, Security-Based Swap Submission, or 
Advance Notice

    In its filing with the Commission, ICC included statements 
concerning the purpose of and basis for the proposed rule change, 
security-based swap submission, or advance notice and discussed any 
comments it received on the proposed rule change, security-based swap 
submission, or advance notice. The text of these statements may be 
examined at the places specified in Item IV below. ICC has prepared 
summaries, set forth in sections (A), (B), and (C) below, of the most 
significant aspects of these statements.

A. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change, Security-Based Swap Submission, or 
Advance Notice

    The proposed revisions are intended to implement changes to the fee 
that ICC charges for U.S. Treasury securities collateral deposits. The 
proposed changes are described in detail as follows.
    Currently, with respect to collateral deposited by Clearing 
Participants with ICC for the purpose of satisfying margin and Guaranty 
Fund requirements, ICC imposes a 5 basis point fee on U.S. Treasury 
securities collateral deposits.\5\ The fee is calculated and charged 
monthly, and applies to both house and client accounts.\6\
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    \5\ See Securities Exchange Act Release 71511 (February 7, 
2014), 79 FR 8760 (February 13, 2014) (SR-ICC-2014-01).
    \6\ See ICC Circular 2013/032, as modified by ICC Circular 2014/
004.
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    Effective February 1, 2017, ICC will be changing the fee charged 
for U.S. Treasury securities collateral deposits from 5 basis points to 
7.5 basis points. This fee will continue to be calculated and charged 
monthly, and will continue to apply to both house and client accounts. 
ICC believes this change will lead to an increase in the posting of 
cash collateral by Clearing Participants and their clients, as opposed 
to U.S. Treasury securities.
    ICC believes the proposed rule changes are consistent with the 
requirements of the Act including Section 17A of the Act.\7\ More 
specifically, the proposed rule changes establish or change a member 
due, fee or other charge imposed by ICC under Section 19(b)(3)(A)(ii) 
\8\ of the Act and Rule 19b-4(f)(2) \9\ thereunder. ICC believes the 
proposed rule changes are consistent with the requirements of the Act 
and the rules and regulations thereunder applicable to ICC, in 
particular, to Section 17(A)(b)(3)(D),\10\ because the proposed 
collateral fee change applies equally to all market participants and 
such fees are in-line with similar fees charged by market participants. 
Therefore the proposed changes provide for the equitable allocation of 
reasonable dues, fees and other charges among participants. As such, 
the proposed changes are appropriately filed pursuant to Section 
19(b)(3)(A) \11\ of the Act and paragraph (f)(2) of Rule 19b-4 
thereunder.\12\
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ 15 U.S.C. 78q-1(b)(3)(D).
    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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    Further, ICC believes such changes are consistent with Section 
17A(b)(3)(F),\13\ because ICC believes that the collateral fee change 
will promote the prompt and accurate clearance and settlement of 
securities transactions, derivatives agreements, contracts, and 
transactions. The proposed collateral fee change is intended to 
increase cash collateral held at the clearing house, which would 
minimize liquidity risk and reduce the likelihood that assets securing 
participant obligations would be unavailable when ICC needs to draw on 
them, thus safeguarding ICC's ability to meet its settlement 
obligations.
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    \13\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Clearing Agency's Statement on Burden on Competition

    ICC does not believe the proposed rule change would have any 
impact, or impose any burden, on competition. The proposed collateral 
fee change applies consistently across all market participants and 
implementation of the proposed collateral fee change does not preclude 
the implementation of similar fee changes by other market participants. 
Therefore, ICC does not believe the collateral fee change imposes any 
burden on competition that is inappropriate in furtherance of the 
purposes of the Act.

[[Page 9090]]

C. Clearing Agency's Statement on Comments on the Proposed Rule Change, 
Security-Based Swap Submission, or Advance Notice Received From 
Members, Participants or Others

    Written comments relating to the proposed rule change have not been 
solicited or received. ICC will notify the Commission of any written 
comments received by ICC.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act and paragraph (f) of Rule 19b-4 thereunder. At 
any time within 60 days of the filing of the proposed rule change, the 
Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, security-based swap submission, or advance notice is consistent 
with the Act. Comments may be submitted by any of the following 
methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-ICC-2017-001 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549.

All submissions should refer to File Number SR-ICC-2017-001. 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, security-
based swap submission, or advance notice that are filed with the 
Commission, and all written communications relating to the proposed 
rule change, security-based swap submission, or advance notice 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 the filing also will be available for inspection and copying 
at the principal office of ICE Clear Credit and on ICE Clear Credit's 
Web site at https://www.theice.com/clear-credit/regulation. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ICC-2017-001 and should be 
submitted on or before February 23, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-02183 Filed 2-1-17; 8:45 am]
 BILLING CODE 8011-01-P