83 FR 40813 - Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to ICC's Treasury Operations Policies and Procedures
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 159 (August 16, 2018)
Federal Register Volume 83, Issue 159 (August 16, 2018)
| Page Range | 40813-40816 | |
| FR Document | 2018-17627 |
[Federal Register Volume 83, Number 159 (Thursday, August 16, 2018)] [Notices] [Pages 40813-40816] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-17627] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-83819; File No. SR-ICC-2018-009] Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to ICC's Treasury Operations Policies and Procedures August 10, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934,\1\ and Rule 19b-4,\2\ notice is hereby given that on July 31, 2018, 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 by ICC. 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. --------------------------------------------------------------------------- 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 rule change is to revise the ICC Treasury Operations Policies and Procedures (``Treasury Policy''). These revisions do not require any changes to the ICC Clearing Rules (``Rules''). 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 (a) Purpose ICC proposes revisions to its Treasury Policy. ICC believes such revisions will facilitate the prompt and accurate clearance and settlement of securities transactions and derivative agreements, contracts, and transactions for which it [[Page 40814]] is responsible. The proposed revisions are described in detail as follows. ICC proposes to update the ICC Treasury Policy in light of the exemptive order \3\ (the ``Order'') that was issued by the Commodity Futures Trading Commission (``CFTC'') permitting ICC to invest, subject to certain conditions, Euro-denominated customer funds in French and German sovereign debt. ICC was prohibited from investing customer funds in foreign sovereign debt by CFTC Regulation 1.25,\4\ which does not permit such investments. As such, ICC is proposing changes to its Treasury Policy to permit its Treasury Department to directly invest both US Dollar- (``USD'') and Euro-denominated Guaranty Fund (``GF'') and margin cash posted by Clearing Participants (``CPs'') (``house origin cash''); to invest Euro-denominated cash posted by CPs for their margin requirements related to client positions (``customer origin cash'') in French and German sovereign debt; to revise its Euro investment guidelines to limit investment to French and German sovereign debt; and to make additional clarification and clean-up changes throughout the document to enhance readability. --------------------------------------------------------------------------- \3\ 83 FR 35241 (July 25, 2018). \4\ 17 CFR 1.25. --------------------------------------------------------------------------- ICC proposes to revise the `Funds Management' section. ICC proposes clarifying changes that move reference to its default position of holding USD-denominated house origin cash in its Federal Reserve Account from the `Investment Strategy' subsection to the amended `ICC Investment of Guaranty Fund and Margin Cash' subsection, which is separated into USD and Euro. ICC proposes clarifying language within the proposed `USD' subsection to note that, if ICC is unable to deposit house origin cash in its Federal Reserve Account, ICC's Treasury Department may hold or invest such USD cash as specified within the Treasury Policy. ICC also proposes a revision to correct a typographical error by adding the verb ``has'' to the phrase ``ICE Clear Credit arrangements.'' In the proposed `Euro' subsection, ICC proposes to permit its Treasury Department to directly invest Euro-denominated house origin cash. Under the current ICC Treasury Policy, the ICC Treasury Department is only permitted to directly invest USD-denominated house origin cash. Specifically, ICC proposes to state that Euro-denominated house origin cash will be (i) held in bank deposits, (ii) allocated to outside investment managers, or (iii) directly held/invested by the ICC Treasury Department pursuant to the Euro investment guidelines in the appendix. Under the proposed changes, ICC's Treasury Department is permitted to directly execute the Euro investment guidelines. In the `Outside Investment Management of Guaranty Fund and Margin Cash' subsection, ICC proposes removing reference to a specific outside investment manager to reflect ICC's engagement of multiple outside investment managers. ICC also proposes to correct certain typographical errors in this section to improve readability, including removing the indefinite article ``an'' in the phrase ``an alternative or additional outside investment managers'', adding the definite article ``the'' to the phrase ``Investment Manager's investment'', and changing ``Directory of Treasury'' to ``Director of Treasury'' in a footnote. ICC proposes removing language from the `Treasury Management for Client Business' section that references the introduction of client trades to clarify that ICC has already commenced client clearing. ICC proposes the new `Investment of Client Margin Cash' subsection within the `Treasury Management for Client Business' section, which specifically relates to ICC's investment of customer origin cash. Currently, the ICC Treasury Policy prohibits ICC from investing customer origin cash in foreign sovereign debt due to CFTC Regulation 1.25,\5\ which does not permit such investments. In light of the CFTC's Order,\6\ ICC proposes to state that it will invest customer origin cash in compliance with CFTC Regulation 1.25,\7\ including any applicable exemptive orders and including, without limitation, the conditions in CFTC Regulation 1.25 \8\ related to the investment of customer origin cash in non-U.S. sovereign debt. --------------------------------------------------------------------------- \5\ Id. \6\ 83 FR 35241 (July 25, 2018). \7\ 17 CFR 1.25. \8\ Id. --------------------------------------------------------------------------- ICC proposes revisions to the Euro investment guidelines appendix. ICC proposes to include a footnote, for clarity, stating that its Treasury Department can directly execute the Euro investment guidelines. ICC also proposes to extend the Euro investment guidelines to ICC's segregated CFTC Cleared Swaps Customer initial margin portfolio. ICC's Euro investment guidelines provide for the investment of Euro cash in overnight reverse repurchase (``repo'') transactions with high quality sovereign debt as collateral. If 100% of the allocated cash cannot be placed in overnight reverse repo, backup investments will be in term reverse repo and then direct investment in high quality sovereign debt. Under the current Euro investment guidelines, investment in reverse repo and foreign sovereign debt is utilized only with respect to house origin cash and not customer origin cash pursuant to CFTC regulation. Given the CFTC's Order \9\ that allows ICC to invest Euro-denominated customer funds in French and German sovereign debt, ICC proposes to make its investment policies for Euro-denominated cash applicable to both customer origin and house origin cash. ICC further proposes to make the Euro investment guidelines uniform for both customer origin and house origin cash. Specifically, ICC proposes to revise the Euro investment guidelines to limit permissible investment, both directly and through reverse repo, to French and German sovereign debt given the comparability of French and German sovereign debt to U.S. government securities in terms of creditworthiness, liquidity, and volatility.\10\ With respect to customer origin cash, the proposed changes require that investments comply with any applicable conditions or restrictions set forth in CFTC Regulation 1.25 \11\ including any applicable exemptive orders and allow the use of term reverse repo subject to a certain restriction. Additionally, should conditions change so that the French or German sovereign debt no longer meets the conditions or restrictions of CFTC Regulation 1.25,\12\ the outside investment manager shall discontinue making any additional investments in such sovereign debt issuers. --------------------------------------------------------------------------- \9\ 83 FR 35241 (July 25, 2018). \10\ See ICE Clearing House Application for Exemptive Order (June 22, 2017) for a discussion of the suitability of French and German sovereign debt, available at https://www.cftc.gov/sites/default/files/idc/groups/public/@requestsandactions/documents/ifdocs/icedcos4cappl6-22-17.pdf. \11\ 17 CFR 1.25. \12\ Id. --------------------------------------------------------------------------- (b) Statutory Basis Section 17A(b)(3)(F) of the Act \13\ requires, 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 to comply with the [[Page 40815]] provisions of the Act and the rules and regulations thereunder. ICC believes that 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)(F),\14\ because ICC believes that the proposed rule changes will promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions, and contribute to the safeguarding of securities and funds associated with security-based swap transactions in ICC's custody or control, or for which ICC is responsible. The proposed changes permitting ICC to invest Euro-denominated customer funds in French and German sovereign debt are designed to further ensure the reliable investment of assets in ICC's control with minimal risk. Euro-denominated customer fund balances must be held in unsecured bank demand deposits accounts, exposing ICC and its CPs and their customers to the credit risk of such banks. ICC believes that the proposed changes, given the CFTC's Order,\15\ to invest Euro-denominated customer funds in French and German sovereign debt would provide for an important alternative for the protection of customer funds. Moreover, allowing the Treasury Department to directly invest both USD and Euro-denominated house origin cash will continue to ensure the reliable investment of assets in ICC's control with minimal risk by allowing the Treasury Department to directly execute the Euro investment guidelines, thereby facilitating ICC's ability to promptly and accurately clear and settle its cleared CDS contracts and enhancing ICC's ability to assure the safeguarding of securities and funds which are in the custody or control of ICC or for which it is responsible. The clarification and clean-up changes that enhance readability will further ensure that the documentation of ICC's Treasury Policy remains up-to-date, clear, and transparent. As such, the proposed rule changes are designed to promote the prompt and accurate clearance and settlement of securities transactions, derivatives agreements, contracts, and transactions and to contribute to the safeguarding of securities and funds associated with security-based swap transactions in ICC's custody or control, or for which ICC is responsible within the meaning of Section 17A(b)(3)(F) of the Act.\16\ --------------------------------------------------------------------------- \13\ 15 U.S.C. 78q-1(b)(3)(F). \14\ Id. \15\ 83 FR 35241 (July 25, 2018). \16\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- In addition, the proposed revisions to the ICC Treasury Policy are consistent with the relevant requirements of Rule 17Ad-22.\17\ Rule 17Ad-22(b)(3) \18\ requires ICC to establish, implement, maintain and enforce written policies and procedures reasonably designed to maintain sufficient financial resources to withstand, at a minimum, a default by the two CP families to which it has the largest exposures in extreme but plausible market conditions. The proposed changes to the Euro investment guidelines that limit investment to French and German sovereign debt and apply to both house origin and customer origin cash serve to preserve principle and maintain liquidity of funds as such debt has credit, liquidity, and volatility characteristics that are comparable to U.S. government securities, thereby ensuring that ICC continues to maintain sufficient financial resources to withstand, at a minimum, a default by the two CP families to which it has the largest exposures in extreme but plausible market conditions, consistent with the requirements of Rule 17Ad-22(b)(3).\19\ --------------------------------------------------------------------------- \17\ 17 CFR 240.17Ad-22. \18\ 17 CFR 240.17Ad-22(b)(3). \19\ Id. --------------------------------------------------------------------------- Rule 17Ad-22(d)(3) \20\ requires ICC to establish, implement, maintain and enforce written policies and procedures reasonably designed to hold assets in a manner that minimizes risk of loss or of delay in its access to them and to invest assets in instruments with minimal credit, market, and liquidity risks. ICC believes that the proposed changes allowing ICC to invest Euro-denominated customer funds in French and German sovereign debt and allowing the Treasury Department to directly invest both USD and Euro-denominated house origin cash and directly execute the Euro investment guidelines will enhance ICC's ability to hold assets in a manner that minimizes risk of loss or of delay in its access to them by serving as an important alternative for the protection of funds. Additionally, the proposed revisions to the Euro investment guidelines that limit investment to French and German sovereign debt for house origin cash allow ICC to continue to ensure to hold assets in a manner that minimizes risk of loss or of delay in its access to them and to invest assets in instruments with minimal credit, market, and liquidity risks given the comparability of French and German sovereign debt to U.S. government securities in terms of creditworthiness, liquidity, and volatility. Such changes are therefore reasonably designed to meet the requirements of Rule 17Ad-22(d)(3).\21\ --------------------------------------------------------------------------- \20\ 17 CFR 240.17Ad-22(d)(3). \21\ Id. --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition ICC does not believe the proposed rule changes would have any impact, or impose any burden, on competition. The proposed changes to ICC's Treasury Policy will apply uniformly across all market participants. Therefore, ICC does not believe the proposed rule changes impose any burden on competition that is inappropriate in furtherance of the purposes of the Act. (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, Security-Based Swap Submission, or Advance Notice and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove such proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. 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 [email protected]. Please include File Number SR-ICC-2018-0 on the subject line. [[Page 40816]] 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-2018-009. 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, 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 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 inspection and copying at the principal office of ICE Clear Credit and on ICE Clear Credit's website at https://www.theice.com/clear-credit/regulation. 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-ICC-2018-009 and should be submitted on or before September 6, 2018. --------------------------------------------------------------------------- \22\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\22\ Brent J. Fields, Secretary. [FR Doc. 2018-17627 Filed 8-15-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices 40813
from engaging in quoting activity that Electronic Comments SECURITIES AND EXCHANGE
does not reach across the market, but COMMISSION
that could result in a transaction that is • Use the Commission’s internet
comment form (http://www.sec.gov/ [Release No. 34–83819; File No. SR–ICC–
a new high or low on the Exchange, but 2018–009]
is not a new consolidated high or low rules/sro.shtml); or
price. The Exchange believes that the • Send an email to rule-comments@ Self-Regulatory Organizations; ICE
proposal is pro-competitive because sec.gov. Please include File Number SR– Clear Credit LLC; Notice of Filing of
revising which transactions would be NYSE–2018–34 on the subject line. Proposed Rule Change Relating to
prohibited would promote DMM ICC’s Treasury Operations Policies
quoting more aggressively in their Paper Comments and Procedures
assigned securities, thereby enhancing
• Send paper comments in triplicate August 10, 2018.
the ability of DMMs to meet their
to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
affirmative obligation under Rule 104.
Similarly, shortening the time period Commission, 100 F Street NE, Securities Exchange Act of 1934,1 and
restricting DMM trading, in addition to Washington, DC 20549–1090. Rule 19b–4,2 notice is hereby given that
being more appropriate for the current All submissions should refer to File on July 31, 2018, ICE Clear Credit LLC
high-speed trading environment, would (‘‘ICC’’) filed with the Securities and
Number SR–NYSE–2018–34. This file
provide DMMs with more time to Exchange Commission (‘‘Commission’’)
number should be included on the
engage in liquidating transactions before the proposed rule change as described
subject line if email is used. To help the in Items I, II and III below, which Items
the prohibition begins, thereby Commission process and review your
enhancing DMM market making in the have been prepared by ICC. The
comments more efficiently, please use Commission is publishing this notice to
final minutes of trading. The Exchange only one method. The Commission will
further believes that its proposed rules solicit comments on the proposed rule
post all comments on the Commission’s change from interested persons.
governing DMMs would not impose any
internet website (http://www.sec.gov/
burden on competition that is not I. Clearing Agency’s Statement of the
rules/sro.shtml). Copies of the
necessary or appropriate because the Terms of Substance of the Proposed
submission, all subsequent
proposed rules are designed to foster a Rule Change, Security-Based Swap
fair and orderly marketplace without amendments, all written statements
Submission, or Advance Notice
diminishing the balance of benefits and with respect to the proposed rule
change that are filed with the The principal purpose of the
obligations under Rule 104 or altering or proposed rule change is to revise the
diminishing the numerous obligations Commission, and all written
communications relating to the ICC Treasury Operations Policies and
currently imposed by Rule 104 on Procedures (‘‘Treasury Policy’’). These
DMMs. proposed rule change between the
revisions do not require any changes to
Commission and any person, other than
C. Self-Regulatory Organization’s the ICC Clearing Rules (‘‘Rules’’).
those that may be withheld from the
Statement on Comments on the public in accordance with the II. Clearing Agency’s Statement of the
Proposed Rule Change Received From provisions of 5 U.S.C. 552, will be Purpose of, and Statutory Basis for, the
Members, Participants, or Others Proposed Rule Change, Security-Based
available for website viewing and
No written comments were solicited printing in the Commission’s Public Swap Submission, or Advance Notice
or received with respect to the proposed Reference Room, 100 F Street NE, In its filing with the Commission, ICC
rule change. Washington, DC 20549 on official included statements concerning the
III. Date of Effectiveness of the business days between the hours of purpose of and basis for the proposed
Proposed Rule Change and Timing for 10:00 a.m. and 3:00 p.m. Copies of the rule change, security-based swap
Commission Action filing also will be available for submission, or advance notice and
inspection and copying at the principal discussed any comments it received on
Within 45 days of the date of office of the Exchange. All comments the proposed rule change, security-
publication of this notice in the Federal received will be posted without change. based swap submission, or advance
Register or up to 90 days (i) as the Persons submitting comments are notice. The text of these statements may
Commission may designate if it finds cautioned that we do not redact or edit be examined at the places specified in
such longer period to be appropriate Item IV below. ICC has prepared
personal identifying information from
and publishes its reasons for so finding summaries, set forth in sections (A), (B),
comment submissions. You should
or (ii) as to which the self-regulatory and (C) below, of the most significant
organization consents, the Commission submit only information that you wish
aspects of these statements.
will: to make available publicly. All
submissions should refer to File (A) Clearing Agency’s Statement of the
(A) By order approve or disapprove
Number SR–NYSE–2018–34 and should Purpose of, and Statutory Basis for, the
the proposed rule change, or
be submitted on or before September 6, Proposed Rule Change, Security-Based
(B) institute proceedings to determine Swap Submission, or Advance Notice
whether the proposed rule change 2018.
should be disapproved. For the Commission, by the Division of (a) Purpose
Trading and Markets, pursuant to delegated ICC proposes revisions to its Treasury
IV. Solicitation of Comments authority.24
sradovich on DSK3GMQ082PROD with NOTICES
Policy. ICC believes such revisions will
Interested persons are invited to Brent J. Fields, facilitate the prompt and accurate
submit written data, views, and Secretary. clearance and settlement of securities
arguments concerning the foregoing, [FR Doc. 2018–17630 Filed 8–15–18; 8:45 am] transactions and derivative agreements,
including whether the proposed rule contracts, and transactions for which it
BILLING CODE 8011–01–P
change is consistent with the Act.
Comments may be submitted by any of 1 15 U.S.C. 78s(b)(1).
the following methods: 24 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4.
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![40816 Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices
Paper Comments SECURITIES AND EXCHANGE A. Self-Regulatory Organization’s
COMMISSION Statement of the Purpose of, and the
• Send paper comments in triplicate Statutory Basis for, the Proposed Rule
to Secretary, Securities and Exchange Change
[Release No. 34–83828; File No. SR–
Commission, 100 F Street NE,
NYSEARCA–2018–58] 1. Purpose
Washington, DC 20549.
The Exchange proposes to amend the
All submissions should refer to File Self-Regulatory Organizations; NYSE
Fee Schedule, as described below, to
Number SR–ICC–2018–009. This file Arca, Inc.; Notice of Filing and
introduce a new pricing tier, Retail
number should be included on the Immediate Effectiveness of Proposed Order Step-Up Tier 2, for securities with
subject line if email is used. To help the Rule Change To Amend the NYSE Arca a per share price of $1.00 or above.
Commission process and review your Equities Fees and Charges To The Exchange currently has a Retail
comments more efficiently, please use Introduce a New Pricing Tier Order Step-Up Tier pursuant to which
only one method. The Commission will ETP Holders, including Market Makers,
August 10, 2018.
post all comments on the Commission’s that execute an ADV of Retail Orders 4
internet website (http://www.sec.gov/ Pursuant to Section 19(b)(1) 1 of the with a time-in-force designation of Day
rules/sro.shtml). Copies of the Securities Exchange Act of 1934 (the that add or remove liquidity during the
submission, all subsequent ‘‘Act’’) 2 and Rule 19b–4 thereunder,3 month that is an increase of 0.12% or
amendments, all written statements notice is hereby given that, on August more of the U.S. CADV above their
with respect to the proposed rule 1, 2018, NYSE Arca, Inc. (the April 2018 ADV taken as a percentage
change, security-based swap ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with of U.S. CADV receive a credit of $0.0033
submission, or advance notice that are the Securities and Exchange per share when such orders provide
filed with the Commission, and all Commission (the ‘‘Commission’’) the liquidity to the book during the month
proposed rule change as described in in Tape A, Tape B and Tape C
written communications relating to the
Items I, II, and III below, which Items Securities. Retail Orders with a time-in-
proposed rule change, security-based
have been prepared by the self- force designation of Day that remove
swap submission, or advance notice liquidity from the Book are not charged
between the Commission and any regulatory organization. The
a fee.5
person, other than those that may be Commission is publishing this notice to To encourage even greater
withheld from the public in accordance solicit comments on the proposed rule participation from ETP Holders and
with the provisions of 5 U.S.C. 552, will change from interested persons. promote additional liquidity in Retail
be available for website viewing and I. Self-Regulatory Organization’s Orders, the Exchange proposes a new
printing in the Commission’s Public Statement of the Terms of Substance of pricing tier—Retail Order Step-Up Tier
Reference Room, 100 F Street NE, the Proposed Rule Change 2.6
Washington, DC 20549, on official As proposed, a new Retail Order Step-
business days between the hours of The Exchange proposes to amend the Up Tier 2 credit of $0.0035 per share for
10:00 a.m. and 3:00 p.m. Copies of the NYSE Arca Equities Fees and Charges Retail Orders that provide displayed
filing also will be available for (‘‘Fee Schedule’’) to introduce a new liquidity during the month in Tape A,
inspection and copying at the principal pricing tier, Retail Order Step-Up Tier 2. Tape B and Tape C Securities would
office of ICE Clear Credit and on ICE The Exchange proposes to implement apply to ETP Holders, including Market
Clear Credit’s website at https:// Makers, that provide liquidity an
the fee change effective August 1, 2018.
average daily share volume per month
www.theice.com/clear-credit/regulation. The proposed rule change is available
of 1.10% or more of the U.S. CADV, and
All comments received will be posted on the Exchange’s website at execute an ADV of Retail Orders with a
without change. Persons submitting www.nyse.com, at the principal office of time-in-force designation of Day that
comments are cautioned that we do not the Exchange, and at the Commission’s add or remove liquidity during the
redact or edit personal identifying Public Reference Room. month that is an increase of 0.35% or
information from comment submissions. II. Self-Regulatory Organization’s more of the U.S. CADV above their
You should submit only information Statement of the Purpose of, and April 2018 ADV taken as a percentage
that you wish to make available Statutory Basis for, the Proposed Rule of U.S. CADV. Retail Orders with a
publicly. All submissions should refer time-in-force designation of Day that
Change
to File Number SR–ICC–2018–009 and remove liquidity from the Book will not
should be submitted on or before In its filing with the Commission, the be charged a fee.
September 6, 2018. self-regulatory organization included Additionally, if an ETP Holder
statements concerning the purpose of, qualifies for the new Retail Order Step-
For the Commission, by the Division of
Trading and Markets, pursuant to delegated and basis for, the proposed rule change 4 A Retail Order is an agency order that originates
authority.22 and discussed any comments it received from a natural person and is submitted to the
Brent J. Fields,
on the proposed rule change. The text Exchange by an ETP Holder, provided that no
of those statements may be examined at change is made to the terms of the order to price
Secretary. or side of market and the order does not originate
the places specified in Item IV below. from a trading algorithm or any other computerized
[FR Doc. 2018–17627 Filed 8–15–18; 8:45 am]
The Exchange has prepared summaries, methodology. See Securities Exchange Act Release
sradovich on DSK3GMQ082PROD with NOTICES
BILLING CODE 8011–01–P set forth in sections A, B, and C below, No. 67540 (July 30, 2012), 77 FR 46539 (August 3,
of the most significant parts of such 2012) (SR–NYSEArca–2012–77).
5 See Securities Exchange Act Release No. 83268
statements. (May 17, 2018), 83 FR 23983 (May 23, 2017) (SR–
NYSEArca–2018–34).
6 The Exchange proposes a non-substantive
1 15 U.S.C. 78s(b)(1).
amendment to the Fee Schedule to rename the
2 15 U.S.C. 78a. current Retail Order Step-Up Tier as ‘‘Retail Order
22 17 CFR 200.30–3(a)(12). 3 17 CFR 240.19b–4. Step-Up Tier 1.’’
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Document Created: 2018-08-16 01:03:22
Document Modified: 2018-08-16 01:03:22
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