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, Issue 21 (February 2, 2017)
| Page Range | 9089-9090 | |
| FR Document | 2017-02183 |
[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] ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \13\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- 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 CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to rule-comments@sec.gov. 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\ --------------------------------------------------------------------------- \14\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-02183 Filed 2-1-17; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices 9089
never made a public offering of its Commission is publishing this notice to ICC believes the proposed rule
securities and does not propose to make solicit comments on the proposed rule changes are consistent with the
a public offering or engage in business change from interested persons. requirements of the Act including
of any kind. Section 17A of the Act.7 More
I. Clearing Agency’s Statement of the
Filing Date: The application was filed Terms of Substance of the Proposed specifically, the proposed rule changes
on January 13, 2017. Rule Change, Security-Based Swap establish or change a member due, fee
Applicant’s Address: 6455 Irvine Submission, or Advance Notice or other charge imposed by ICC under
Center Drive, Irvine, California 92618. Section 19(b)(3)(A)(ii) 8 of the Act and
The principal purpose of the Rule 19b–4(f)(2) 9 thereunder. ICC
GAI Aurora Opportunities Fund, LLC proposed changes is to implement believes the proposed rule changes are
[File No. 811–22516] changes to the fee that ICC charges for
consistent with the requirements of the
Summary: Applicant, a closed-end U.S. Treasury securities collateral
Act and the rules and regulations
investment company, seeks an order deposits.
thereunder applicable to ICC, in
declaring that it has ceased to be an II. Clearing Agency’s Statement of the particular, to Section 17(A)(b)(3)(D),10
investment company. The applicant has Purpose of, and Statutory Basis for, the because the proposed collateral fee
transferred its assets to GAI Corbin Proposed Rule Change, Security-Based change applies equally to all market
Multi-Strategy Fund, LLC and, on Swap Submission, or Advance Notice participants and such fees are in-line
September 30, 2016, made a final In its filing with the Commission, ICC with similar fees charged by market
distribution to its shareholders based on included statements concerning the participants. Therefore the proposed
net asset value. Expenses of $188,478 purpose of and basis for the proposed changes provide for the equitable
incurred in connection with the rule change, security-based swap allocation of reasonable dues, fees and
reorganization were paid by applicant submission, or advance notice and other charges among participants. As
and the acquiring fund. discussed any comments it received on such, the proposed changes are
Filing Date: The application was filed the proposed rule change, security- appropriately filed pursuant to Section
on January 23, 2017. based swap submission, or advance 19(b)(3)(A) 11 of the Act and paragraph
Applicant’s Address: 401 South Tryon notice. The text of these statements may (f)(2) of Rule 19b–4 thereunder.12
Street, Charlotte, North Carolina 28202. be examined at the places specified in Further, ICC believes such changes
For the Commission, by the Division of Item IV below. ICC has prepared
are consistent with Section
Investment Management, pursuant to summaries, set forth in sections (A), (B),
delegated authority. 17A(b)(3)(F),13 because ICC believes that
and (C) below, of the most significant
the collateral fee change will promote
Eduardo A. Aleman, aspects of these statements.
the prompt and accurate clearance and
Assistant Secretary.
A. Clearing Agency’s Statement of the settlement of securities transactions,
[FR Doc. 2017–02180 Filed 2–1–17; 8:45 am] Purpose of, and Statutory Basis for, the derivatives agreements, contracts, and
BILLING CODE 8011–01–P Proposed Rule Change, Security-Based transactions. The proposed collateral fee
Swap Submission, or Advance Notice change is intended to increase cash
SECURITIES AND EXCHANGE The proposed revisions are intended collateral held at the clearing house,
COMMISSION to implement changes to the fee that ICC which would minimize liquidity risk
charges for U.S. Treasury securities and reduce the likelihood that assets
[Release No. 34–79889; File No. SR–ICC– collateral deposits. The proposed securing participant obligations would
2017–001] changes are described in detail as be unavailable when ICC needs to draw
follows. on them, thus safeguarding ICC’s ability
Self-Regulatory Organizations; ICE Currently, with respect to collateral to meet its settlement obligations.
Clear Credit LLC; Notice of Filing and deposited by Clearing Participants with
Immediate Effectiveness of Proposed ICC for the purpose of satisfying margin B. Clearing Agency’s Statement on
Rule Change To Implement Collateral and Guaranty Fund requirements, ICC Burden on Competition
Fee Changes imposes a 5 basis point fee on U.S. ICC does not believe the proposed
January 27, 2017. Treasury securities collateral deposits.5 rule change would have any impact, or
The fee is calculated and charged impose any burden, on competition.
Pursuant to Section 19(b)(1) of the
monthly, and applies to both house and
Securities Exchange Act of 1934 The proposed collateral fee change
client accounts.6
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2 Effective February 1, 2017, ICC will be applies consistently across all market
notice is hereby given that on January changing the fee charged for U.S. participants and implementation of the
23, 2017, ICE Clear Credit LLC (‘‘ICC’’) Treasury securities collateral deposits proposed collateral fee change does not
filed with the Securities and Exchange from 5 basis points to 7.5 basis points. preclude the implementation of similar
Commission (‘‘Commission’’) the This fee will continue to be calculated fee changes by other market
proposed rule change as described in and charged monthly, and will continue participants. Therefore, ICC does not
Items I, II, and III below, which Items to apply to both house and client believe the collateral fee change
have been prepared primarily by ICC. accounts. ICC believes this change will imposes any burden on competition that
ICC filed the proposed rule change lead to an increase in the posting of cash is inappropriate in furtherance of the
pursuant to Section 19(b)(3)(A) of the collateral by Clearing Participants and purposes of the Act.
mstockstill on DSK3G9T082PROD with NOTICES
Act,3 and Rule 19b–4(f)(2) 4 thereunder, their clients, as opposed to U.S.
so that the proposal was effective upon Treasury securities. 7 15 U.S.C. 78q–1.
filing with the Commission. The 8 15 U.S.C. 78s(b)(3)(A)(ii).
9 17 CFR 240.19b–4(f)(2).
5 See Securities Exchange Act Release 71511
1 15 U.S.C. 78s(b)(1). 10 15 U.S.C. 78q–1(b)(3)(D).
(February 7, 2014), 79 FR 8760 (February 13, 2014)
2 17 CFR 240.19b–4. 11 15 U.S.C. 78s(b)(3)(A).
(SR–ICC–2014–01).
3 15 U.S.C. 78s(b)(3)(A). 6 See ICC Circular 2013/032, as modified by ICC 12 17 CFR 240.19b–4(f)(2).
4 17 CFR 240.19b–4(f)(2). Circular 2014/004. 13 15 U.S.C. 78q–1(b)(3)(F).
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![9090 Federal Register / Vol. 82, No. 21 / Thursday, February 2, 2017 / Notices
C. Clearing Agency’s Statement on written communications relating to the I. Self-Regulatory Organization’s
Comments on the Proposed Rule proposed rule change, security-based Statement of the Terms of Substance of
Change, Security-Based Swap swap submission, or advance notice the Proposed Rule Change
Submission, or Advance Notice between the Commission and any The Exchange proposes to amend the
Received From Members, Participants or person, other than those that may be opening process.
Others withheld from the public in accordance The text of the proposed rule change
Written comments relating to the with the provisions of 5 U.S.C. 552, will is available on the Exchange’s Web site
proposed rule change have not been be available for Web site viewing and at www.ise.com, at the principal office
solicited or received. ICC will notify the printing in the Commission’s Public of the Exchange, and at the
Commission of any written comments Reference Room, 100 F Street NE., Commission’s Public Reference Room.
received by ICC. Washington, DC 20549, on official
business days between the hours of II. Self-Regulatory Organization’s
III. Date of Effectiveness of the 10:00 a.m. and 3:00 p.m. Copies of the Statement of the Purpose of, and
Proposed Rule Change and Timing for filing also will be available for Statutory Basis for, the Proposed Rule
Commission Action inspection and copying at the principal Change
The foregoing rule change has become office of ICE Clear Credit and on ICE In its filing with the Commission, the
effective pursuant to Section 19(b)(3)(A) Clear Credit’s Web site at https:// Exchange included statements
of the Act and paragraph (f) of Rule www.theice.com/clear-credit/regulation. concerning the purpose of and basis for
19b–4 thereunder. At any time within All comments received will be posted the proposed rule change and discussed
60 days of the filing of the proposed rule without change; the Commission does any comments it received on the
change, the Commission summarily may not edit personal identifying proposed rule change. The text of these
temporarily suspend such rule change if information from submissions. You statements may be examined at the
it appears to the Commission that such should submit only information that places specified in Item IV below. The
action is necessary or appropriate in the you wish to make available publicly. All Exchange has prepared summaries, set
public interest, for the protection of submissions should refer to File forth in sections A, B, and C below, of
investors, or otherwise in furtherance of Number SR–ICC–2017–001 and should the most significant aspects of such
the purposes of the Act. be submitted on or before February 23, statements.
2017.
IV. Solicitation of Comments A. Self-Regulatory Organization’s
For the Commission, by the Division of Statement of the Purpose of, and
Interested persons are invited to Trading and Markets, pursuant to delegated Statutory Basis for, the Proposed Rule
submit written data, views, and authority.14
Change
arguments concerning the foregoing, Eduardo A. Aleman,
including whether the proposed rule Assistant Secretary. 1. Purpose
change, security-based swap [FR Doc. 2017–02183 Filed 2–1–17; 8:45 am] The purpose of this rule change is to
submission, or advance notice is BILLING CODE 8011–01–P amend the ISE opening process in
consistent with the Act. Comments may connection with a technology migration
be submitted by any of the following to a Nasdaq, Inc. (‘‘Nasdaq’’) supported
methods: SECURITIES AND EXCHANGE architecture. INET is the proprietary
Electronic Comments COMMISSION core technology utilized across Nasdaq’s
global markets and utilized on The
• Use the Commission’s Internet NASDAQ Options Market LLC
[Release No. 34–79887; File No. SR–ISE–
comment form (http://www.sec.gov/ 2017–02] (‘‘NOM’’), NASDAQ PHLX LLC (‘‘Phlx’’)
rules/sro.shtml); or and NASDAQ BX, Inc. (‘‘BX’’)
• Send an email to rule-comments@ Self-Regulatory Organizations; (collectively ‘‘Nasdaq Exchanges’’). The
sec.gov. Please include File Number SR– International Securities Exchange, migration of ISE to the Nasdaq INET
ICC–2017–001 on the subject line. LLC; Notice of Filing of Proposed Rule architecture would result in higher
Paper Comments Change To Amend the Opening performance, scalability, and more
Process robust architecture. With this system
• Send paper comments in triplicate migration, the Exchange intends to
to Secretary, Securities and Exchange January 27, 2017.
adopt the Phlx opening process.
Commission, 100 F Street NE., Pursuant to Section 19(b)(1) of the The Exchange intends to begin
Washington, DC 20549. Securities Exchange Act of 1934 implementation of the proposed rule
All submissions should refer to File (‘‘Act’’),1 and Rule 19b–4 thereunder,2 change in Q2 2017. The migration will
Number SR–ICC–2017–001. This file notice is hereby given that on January be on a symbol by symbol basis, and the
number should be included on the 13, 2017, the International Securities Exchange will issue an alert to Members
subject line if email is used. To help the Exchange, LLC (‘‘ISE’’ or ‘‘Exchange’’) to provide notification of the symbols
Commission process and review your filed with the Securities and Exchange that will migrate and the relevant dates.
comments more efficiently, please use Commission (‘‘Commission’’) the
only one method. The Commission will proposed rule change as described in Generally
post all comments on the Commission’s Items I and II below, which Items have With the re-platform, the Exchange
Internet Web site (http://www.sec.gov/ will now be built on the Nasdaq INET
mstockstill on DSK3G9T082PROD with NOTICES
been prepared by the Exchange. The
rules/sro.shtml). Copies of the Commission is publishing this notice to architecture, which allows certain
submission, all subsequent solicit comments on the proposed rule trading system functionality to be
amendments, all written statements change from interested persons. performed in parallel. The Exchange
with respect to the proposed rule believes that this architecture change
change, security-based swap 14 17 CFR 200.30–3(a)(12). will improve the Member experience by
submission, or advance notice that are 1 15 U.S.C. 78s(b)(1). reducing overall latency compared to
filed with the Commission, and all 2 17 CFR 240.19b–4. the current ISE system because of the
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Document Created: 2017-02-02 00:55:13
Document Modified: 2017-02-02 00:55:13
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 82 FR 9089 |
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