83 FR 192 - Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the CDSClear Fee Grid for All Accounts Structures

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 1 (January 2, 2018)

[Federal Register Volume 83, Number 1 (Tuesday, January 2, 2018)]
[Notices]
[Pages 192-194]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28308]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82406; File No. SR-LCH SA-2017-011]


Self-Regulatory Organizations; LCH SA; Notice of Filing and 
Immediate Effectiveness of a Proposed Rule Change Relating to the 
CDSClear Fee Grid for All Accounts Structures

December 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 December 20, 2017, Banque Centrale de Compensation, which conducts 
business under the name LCH SA (``LCH SA''), filed with the Securities 
and Exchange Commission (``Commission'') the proposed rule change 
described in Items I, II, and III below, which Items have been prepared 
primarily by LCH SA. LCH SA filed the proposed rule changes pursuant to 
Section 19(b)(3)(A) \3\ of the Act 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

    LCH SA is filing a proposed fee grid for all accounts structures, 
including those introduced \5\ to reflect the indirect

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clearing requirements \6\ under EMIR \7\ and MiFIR \8\ for authorized 
CCPs. The text of the proposed rule change has been annexed as Exhibit 
5.
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    \5\ See SR-LCH SA-2017-010.
    \6\ Commission Delegated Regulation (EU) 2017/2155 of 22 
September 2017 amending Delegated Regulation (EU) No. 149/2013 
supplementing the European Market Infrastructure Regulation (MiFIR) 
with regard to regulatory technical standards (RTS) on indirect 
clearing arrangements.
    \7\ Regulation (EU) No 648/2012 of the European Parliament and 
of the Council of 4 July 2012 on OTC derivatives, central 
counterparties and trade repositories (EMIR).
    \8\ Regulation (EU) No 600/2014 of the European Parliament and 
of the Council of 15 May 2014 on markets in financial instruments 
and amending Regulation (EU) No 648/2012.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, LCH SA included statements 
concerning the purpose of and basis for the proposed rule change and 
discussed any comments it received on the proposed rule change. The 
text of these statements may be examined at the places specified in 
Item IV below. LCH SA 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

1. Purpose
    The purpose of the proposed rule change is to adopt the applicable 
CDSClear fee grid for all accounts structures, including the indirect 
client account structures proposed in accordance with the provisions of 
MiFIR Article 30.
    The proposed rule change introduces a fixed annual fee payable to 
CDSClear by its Clearing Members semi annually for the 6-month periods 
beginning January 1st and July 1st in accordance with the amount and 
currency specified in the fee grid attached in Exhibit 5.
    The Account structure fees will be calculated on the day 
immediately preceding each 6-month period, being December 31st and June 
30th of each year, based on the number of live accounts at that date. 
It will apply for existing client accounts from 1st January 2018.
    Any Clearing Member will make its own pricing arrangements with its 
clients.
    The Account structure fee does not apply to house accounts.
2. Statutory Basis
    Section 17A(b)(3)(D) of the Act requires that the rules of a 
clearing agency provide for the equitable allocation of reasonable 
dues, fees, and other charges.\9\
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    \9\ 15 U.S.C. 78q-1(b)(3)(D).
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    As noted above, the proposed fee grid will apply equally to all 
existing and new client accounts, whether Indirect or not, and LCH SA 
believes that it is reasonable and appropriate. The fee amount applied 
is constant across all account types reflecting the even workload for 
each account opened by clients.
    LCH believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act \10\ and regulations thereunder 
applicable to it, because it provides for the equitable allocation of 
reasonable fees, dues, and other charges among clearing members 
including their clients and market participants by ensuring that they 
pay reasonable fees and dues for the services that LCH SA provides.
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    \10\ 15 U.S.C. 78q-1.
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B. Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act requires that the rules of a 
clearing agency not impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act.\11\ LCH SA does 
not believe that the proposed rule change would impose any burden on 
competition that are not necessary or appropriate in furtherance of the 
purposes of the Act.
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    \11\ 15 U.S.C. 78q-1(b)(3)(I).
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    The proposed rule change will apply equally to all existing and new 
client accounts and does not adversely affect the ability of Clearing 
Members and their clients or other market participants generally to 
engage in cleared transactions or to access clearing services. 
Therefore, LCH SA does not believe that the proposed rule change would 
impose a burden on competition not necessary or appropriate in 
furtherance of the purposes of the Act.

C. Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants or Others

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

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

    Subject to any regulatory review or approval process duly 
completed, the foregoing proposed rule change has become effective upon 
filing pursuant to Section 19(b)(3)(A) \12\ of the Act and Rule 19b-
4(f)(2) \13\ thereunder because it establishes a fee or other charge 
imposed by LCH SA on its Clearing Members. At any time within 60 days 
of the filing of the proposed rule change, the Commission summarily may 
temporarily suspend such proposed 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.
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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change 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-LCH SA-2017-011 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-LCH SA-2017-011. 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 website (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 website 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

[[Page 194]]

inspection and copying at the principal office of LCH SA and on LCH 
SA's website at http://www.lch.com/asset-classes/cdsclear.
    All comments received will be posted without change. Persons 
submitting comments are cautioned that we do not redact or edit 
personal identifying information from comment submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-LCH SA-2017-011 and should 
be submitted on or before January 23, 2018.

    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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Brent J. Fields,
Secretary.
[FR Doc. 2017-28308 Filed 12-29-17; 8:45 am]
BILLING CODE 8011-01-P