83 FR 53138 - Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Clearing Agency Policy on Capital Requirements and the Clearing Agency Capital Replenishment Plan
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 203 (October 19, 2018)
Federal Register Volume 83, Issue 203 (October 19, 2018)
| Page Range | 53138-53141 | |
| FR Document | 2018-22779 |
[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)] [Notices] [Pages 53138-53141] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-22779] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-84426; File No. SR-DTC-2018-008] Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Clearing Agency Policy on Capital Requirements and the Clearing Agency Capital Replenishment Plan October 15, 2018. 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 October 4, 2018, The Depository Trust Company (``DTC'') 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 the clearing agency. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b- 4(f)(4) thereunder.\4\ 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)(4). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of amendments to (i) the Clearing Agency Policy on Capital Requirements (``Capital Policy'' or ``Policy'') of DTC and its affiliates, National Securities Clearing Corporation (``NSCC'') and Fixed Income Clearing Corporation (``FICC,'' and together with DTC and NSCC, the ``Clearing Agencies''); and (ii) the Clearing Agency Capital Replenishment Plan (``Capital Replenishment Plan'' or ``Plan'') of the [[Page 53139]] Clearing Agencies. In particular, the proposed revisions to the Capital Policy and Capital Replenishment Plan would (1) correct typographical errors and make other technical revisions to correct and simplify statements in the Policy and Plan; (2) replace references in the Policy and Plan to the ``Credit Risk Capital Requirement'' with the ``Corporate Contribution;'' and (3) update references in the Policy to the Recovery & Wind-down Plans of each of the Clearing Agencies, which were recently adopted by the Clearing Agencies, as described in greater detail below. II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the clearing agency 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. The clearing agency has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Clearing Agencies are proposing to revise the Capital Policy and Capital Replenishment Plan, which were adopted by the Clearing Agencies in July 2017 \5\ and are maintained by the Clearing Agencies in compliance with Rule 17Ad-22(e)(15) under the Act.\6\ --------------------------------------------------------------------------- \5\ See Securities Exchange Act Release No. 81105 (July 7, 2017), 82 FR 32399 (July 13, 2017) (SR-DTC-2017-003, SR-FICC-2017- 007, SR-NSCC-2017-004). \6\ 17 CFR 240.17Ad-22(e)(15). --------------------------------------------------------------------------- Overview of the Capital Policy and Capital Replenishment Plan The Capital Policy sets forth the manner in which each Clearing Agency identifies, monitors, and manages its general business risk with respect to the requirement to hold sufficient liquid net assets (``LNA'') funded by equity to cover potential general business losses so the Clearing Agency can continue operations and services as a going concern if such losses materialize.\7\ The amount of LNA funded by equity to be held by each of the Clearing Agencies for this purpose is defined in the Policy as the General Business Risk Capital Requirement. The Policy provides that the General Business Risk Requirement is calculated for each Clearing Agency as the greatest of three separate calculations--(1) an amount based on that Clearing Agency's general business risk profile (``Risk-Based Capital Requirement''), (2) an amount based on the time estimated to execute a recovery or orderly wind-down of the critical operations of that Clearing Agency (``Recovery/Wind-down Capital Requirement''), and (3) an amount based on an analysis of that Clearing Agency's estimated operating expenses for a six month period (``Operating Expense Capital Requirement''). On an annual basis, each of these three capital requirements are measured, and the General Business Risk Capital Requirement for each Clearing Agency are determined as the greatest of these calculations. --------------------------------------------------------------------------- \7\ Id. --------------------------------------------------------------------------- Currently, the Capital Policy also addresses how each Clearing Agency maintains a portion of retained earnings as LNA funded by equity as its Credit Risk Capital Requirement, as a part of its management of credit risk \8\ and pursuant to their respective rules.\9\ These resources are maintained to address losses due to a participant default, and are held in addition to the LNA funded by equity held by each of the Clearing Agencies as its General Business Risk Capital Requirement. The Capital Policy describes how each Clearing Agency's General Business Risk Capital Requirement and Credit Risk Capital Requirement fit within the Clearing Agencies' Capital Framework, where the Total Capital Requirement of each Clearing Agency is calculated as the sum of its General Business Risk Capital Requirement and Credit Risk Capital Requirement. --------------------------------------------------------------------------- \8\ LNA funded by equity held as the Clearing Agencies' Credit Risk Capital Requirement is held in addition to resources held by the Clearing Agencies for credit risk in compliance with Rule 17Ad- 22(e)(4) under the Act and in addition to resources held by the Clearing Agencies for liquidity risk in compliance with Rule 17Ad- 22(e)(7). 17 CFR 240.17Ad-22(e)(4), (7). \9\ The Rules, By-laws and Organizational Certificate of DTC (``DTC Rules''), the Rulebook of the Government Securities Division of FICC (``GSD Rules''), the Clearing Rules of the Mortgage-Backed Securities Division of FICC (``MBSD Rules''), or the Rules & Procedures of NSCC (``NSCC Rules,'' together with the DTC Rules, GSD Rules and MBSD Rules, the ``Clearing Agencies' Rules'' or ``Rules''), available at http://dtcc.com/legal/rules-and-procedures. --------------------------------------------------------------------------- The Policy also provides a plan for the replenishment of capital through the Capital Replenishment Plan. The Capital Replenishment Plan was adopted by the Clearing Agencies as a plan for the replenishment of capital by each Clearing Agency should its equity fall close to or below the amount being held as its Total Capital Requirement pursuant to the Capital Policy. The Capital Replenishment Plan identifies the circumstances that would trigger implementation of the Plan; the roles, responsibilities, and guiding principles for implementation of the Plan; and an overview and description of each of the tools that may be used to replenish capital. Proposed Revisions to the Capital Policy and Capital Replenishment Plan As described in greater detail below, the Clearing Agencies are proposing to make certain revisions to the Capital Policy and Capital Replenishment Plan. First, the proposed revisions would correct typographical errors and make other technical revisions to correct and simplify statements in the Capital Policy and Capital Replenishment Plan. Second, the proposed revisions would replace references to the ``Credit Risk Capital Requirement'' with ``Corporate Contribution.'' This proposed change would reflect the implementation of recent revisions to the Clearing Agencies' Rules regarding allocation of losses.\10\ Finally, the proposed revisions would update the description of the calculation of the Recovery/Wind-down Capital Requirement in the Capital Policy to clarify that the Recovery & Wind-down Plans of each of the Clearing Agencies have been adopted by the Clearing Agencies.\11\ --------------------------------------------------------------------------- \10\ See Securities Exchange Act Release Nos. 83969 (August 28, 2018), 83 FR 44955 (September 4, 2018) (SR-DTC-2017-022); 83950 (August 27, 2018), 83 FR 44393 (August 30, 2018) (SR-DTC-2017-804). \11\ See Securities Exchange Act Release Nos. 83972 (August 28, 2018), 83 FR 44964 (September 4, 2018) (SR-DTC-2017-021); 83953 (August 27, 2018), 83 FR 44381 (August 30, 2018) (SR-DTC-2017-803). --------------------------------------------------------------------------- These proposed revisions are designed to enhance the clarity of the Policy and Plan and help ensure that they continue to operate as intended. 1. Technical Revisions DTC is proposing technical revisions to the descriptions within the Capital Policy and Capital Replenishment Plan that would correct typographical errors, including, for example, removing a phrase that was incorrectly repeated in the same sentence. These revisions would also correct an error in Section 3 of the Policy, where the document was incorrectly referred to as the Plan. Such revisions would also update the documents. For example, the proposed changes would replace references in the Capital Policy and Capital Replenishment Plan to the Finance/Capital Committee of the Boards, which was disbanded September 2017, with [[Page 53140]] the Boards, which has taken on the responsibilities of this Committee set forth in the Policy and Plan. These revisions would also include updating the Capital Replenishment Plan to revise the name of the ``Capital Contributions to DTCC Subsidiaries and Joint Ventures Policy'' to the new name of this document, the ``Capital Contributions Policy.'' \12\ --------------------------------------------------------------------------- \12\ This document is an internal policy that governs how The Depository Trust & Clearing Corporation may invest capital in its subsidiaries, including the Clearing Agencies, as well as affiliated joint ventures and non-affiliated companies. --------------------------------------------------------------------------- Finally, the proposed revisions would also simplify the descriptions in these documents. For example, these revisions would add a defined term for the Clearing Agencies' Rules to the Policy in order to simplify references to such rules and procedures in this document. 2. Addition of Corporate Contribution The proposed revisions would also replace references in the Capital Policy and Capital Replenishment Plan to the ``Credit Risk Capital Requirement'' with the ``Corporate Contribution.'' Currently, the Capital Policy describes how each Clearing Agency maintains a portion of retained earnings as LNA funded by equity as its Credit Risk Capital Requirement, in accordance with their respective Rules. Recently, the Clearing Agencies implemented revisions to their respective Rules to enhance the process by which they may allocate losses to their participants if the size of the losses exceed their prefunded resources.\13\ Such revisions included an amendment to the calculation and application of the amount of LNA funded by equity that are currently referred to in the Capital Policy and Capital Replenishment Plan as the Credit Risk Capital Requirement. --------------------------------------------------------------------------- \13\ Supra note 10. --------------------------------------------------------------------------- Specifically, the DTC Rules previously provided that DTC could, in its discretion and in such amounts as it would determine, charge its existing retained earnings and undivided profits to a loss or liability, to the extent that it is not satisfied by the Actual Participants Fund Deposit and Preferred Stock of the defaulting Participant. Pursuant to these recent changes, the DTC Rules require that DTC contribute an amount equal to 50 percent of DTC's General Business Risk Capital Requirement (as such amount is defined in the Capital Policy) (``Corporate Contribution'') towards losses or liabilities arising from a Participant default or non-default event. DTC may also voluntarily apply amounts greater than the Corporate Contribution, as the DTC Board of Directors may determine. The Corporate Contribution applied to any losses arising from events that may occur during the next 250 business days would be reduced to the remaining unused portion of Corporate Contribution, if any.\14\ --------------------------------------------------------------------------- \14\ See supra notes 9 and 10. --------------------------------------------------------------------------- The amendments to the calculation and application of the resources that are now referred to as the Corporate Contribution did not change how these resources are described within the Policy or the Plan. The Corporate Contribution continues to represent resources maintained by the Clearing Agencies to address losses due to a participant default, as a part of their management of credit risk.\15\ These resources also are still held in addition to the LNA funded by equity held by each of the Clearing Agencies as its General Business Risk Capital Requirement. --------------------------------------------------------------------------- \15\ As noted above, unlike the resources referred to in the Policy and Plan as the Credit Risk Capital Requirement, the Corporate Contribution would also be available to the Clearing Agencies to address losses due to events other than a participant default. --------------------------------------------------------------------------- Therefore, the Capital Policy and Capital Replenishment Plan would be revised to replace references to the Credit Risk Capital Requirement with references to the Corporate Contribution, and no other changes are needed to the description of this amount. 3. Update References to the Recovery & Wind-Down Plans of the Clearing Agencies The proposed revisions would also update the Capital Policy to make clear that the Recovery & Wind-down Plans of the Clearing Agencies have been adopted by the Clearing Agencies.\16\ Such references are currently made in connection with the description of the calculation of the Recovery/Wind-down Capital Requirement. --------------------------------------------------------------------------- \16\ Supra note 11. --------------------------------------------------------------------------- The Recovery/Wind-down Capital Requirement is an amount based on the time estimated to execute a recovery or orderly wind-down of the critical operations of that Clearing Agency and is used by the Clearing Agencies to determine their General Business Risk Capital Requirement. Each of the Clearing Agencies recently adopted a Recovery & Wind-down Plan, which provide plans for the recovery and orderly wind-down of each of the Clearing Agencies necessitated by credit losses, liquidity shortfalls, losses from general business risk, or any other losses.\17\ The Recovery & Wind-down Plans each include an analysis of the calculation of the Recovery/Wind-down Capital Requirement, based on the formula that is set forth in the Capital Policy. --------------------------------------------------------------------------- \17\ Id. --------------------------------------------------------------------------- The Clearing Agencies are proposing to revise the Capital Policy to make clear that the Recovery & Wind-down Plans have now been adopted by the Clearing Agencies. 2. Statutory Basis The Clearing Agencies believe that the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a registered clearing agency. In particular, the Clearing Agencies believe that the Capital Policy and the Capital Replenishment Plan are both consistent with Section 17A(b)(3)(F) of the Act \18\ and Rule 17Ad-22(e)(15) under the Act,\19\ for the reasons described below. --------------------------------------------------------------------------- \18\ 15 U.S.C. 78q-1(b)(3)(F). \19\ 17 CFR 240.17Ad-22(e)(15). --------------------------------------------------------------------------- Section 17A(b)(3)(F) of the Act requires, in part, that the rules of the Clearing Agencies be designed to promote the prompt and accurate clearance and settlement of securities transactions, and 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.\20\ Together, the Capital Policy and the Capital Replenishment Plan are designed to ensure that each of the Clearing Agencies hold sufficient LNA funded by equity to cover potential general business losses so that it can continue the prompt and accurate clearance and settlement of securities transactions and can continue to assure the safeguarding of securities and funds which are in its custody or control or for which it is responsible if those losses materialize. By correcting errors and updating the Capital Policy and Capital Replenishment Plan to be consistent with recent changes implemented by the Clearing Agencies, the proposed revisions would allow the Clearing Agencies to maintain these documents to operate in the way they were intended. Therefore, such proposed revisions would be consistent with the requirements of Section 17A(b)(3)(F) of the Act.\21\ --------------------------------------------------------------------------- \20\ 15 U.S.C. 78q-1(b)(3)(F). \21\ Id. --------------------------------------------------------------------------- Rule 17Ad-22(e)(15) requires the Clearing Agencies to establish, implement, maintain and enforce written policies and procedures reasonably designed to identify, monitor, and manage their respective general business risk and hold sufficient [[Page 53141]] liquid net assets funded by equity to cover potential general business losses so that the Clearing Agencies can continue operations and services as a going concern if those losses materialize.\22\ As originally implemented, the Capital Policy and the Capital Replenishment Plan were designed to meet the requirements of Rule 17Ad- 22(e)(15) under the Act.\23\ As stated above, the proposed revisions would update the Capital Policy and Capital Replenishment Plan to be consistent with recent changes implemented by the Clearing Agencies. In this way, the proposed changes would allow the Clearing Agencies to maintain these documents in a way that to meet these requirements. Therefore, such proposed revisions would be consistent with the requirements of Rule 17Ad-22(e)(15) under the Act.\24\ --------------------------------------------------------------------------- \22\ 17 CFR 240.17Ad-22(e)(15). \23\ See supra note 5. \24\ 17 CFR 240.17Ad-22(e)(15). --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition Each of the Clearing Agencies believes that none of the proposed revisions to the Capital Policy and the Capital Replenishment Plan would have any impact, or impose any burden, on competition. The Policy and the Plan are maintained by the Clearing Agencies in order to satisfy their regulatory requirements and generally reflect internal tools and procedures. Tools and procedures that have a direct impact on the rights, responsibilities or obligations of members or participants of the Clearing Agencies are reflected in the Clearing Agencies' Rules. Accordingly, the Capital Policy and Capital Replenishment Plan themselves are documents that enhance the Clearing Agencies' regulatory compliance and internal management and do not have any impact, or impose any burden, on competition. The proposed revisions to correct and update the Capital Policy and Capital Replenishment Plan would not affect any changes on the fundamental purpose or operation of these documents and, as such, would also not have any impact, or impose any burden, on competition. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others The Clearing Agencies have not solicited or received any written comments relating to this proposal. The Clearing Agencies will notify the Commission of any written comments received by the Clearing Agencies. 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 \25\ and paragraph (f) of Rule 19b-4 thereunder.\26\ 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. --------------------------------------------------------------------------- \25\ 15 U.S.C. 78s(b)(3)(A). \26\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 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-DTC-2018-008 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-DTC-2018-008. 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 inspection and copying at the principal office of DTC and on DTCC's website (http://dtcc.com/legal/sec-rule-filings.aspx). 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-DTC-2018-008 and should be submitted on or before November 9, 2018 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\27\ Eduardo A. Aleman, Assistant Secretary. --------------------------------------------------------------------------- \27\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- [FR Doc. 2018-22779 Filed 10-18-18; 8:45 am] BILLING CODE 8011-01-P
![53138 Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices
stress testing and liquidity stress testing of the Act and paragraph (f) of Rule information from comment submissions.
practices and enhance ICC’s approach to 19b–4 thereunder. At any time within You should submit only information
identifying potential weaknesses in the 60 days of the filing of the proposed rule that you wish to make available
risk methodology as well as the change, the Commission summarily may publicly. All submissions should refer
methodology for testing the sufficiency temporarily suspend such rule change if to File Number SR–ICC–2018–010 and
of ICC’s liquidity resources, thereby it appears to the Commission that such should be submitted on or before
ensuring that ICC maintains sufficient action is necessary or appropriate in the November 9, 2018.
financial resources to withstand, at a public interest, for the protection of For the Commission, by the Division of
minimum, a default by the two CP investors, or otherwise in furtherance of Trading and Markets, pursuant to delegated
families to which it has the largest the purposes of the Act. authority.15
exposures in extreme but plausible IV. Solicitation of Comments Eduardo A. Aleman,
market conditions, consistent with the Assistant Secretary.
requirements of Rule 17Ad–22(b)(3).11 Interested persons are invited to
[FR Doc. 2018–22776 Filed 10–18–18; 8:45 am]
Rule 17Ad–22(d)(8) 12 requires ICC to submit written data, views, and
BILLING CODE 8011–01–P
establish, implement, maintain and arguments concerning the foregoing,
enforce written policies and procedures including whether the proposed rule
reasonably designed to have governance change is consistent with the Act.
SECURITIES AND EXCHANGE
arrangements that are clear and Comments may be submitted by any of
COMMISSION
transparent to fulfill the public interest the following methods:
requirements in Section 17A of the [Release No. 34–84426; File No. SR–DTC–
Electronic Comments 2018–008]
Act.13 By updating the Stress Testing
• Use the Commission’s internet
Framework and the Liquidity Risk Self-Regulatory Organizations; The
comment form (http://www.sec.gov/
Management Framework so that the Depository Trust Company; Notice of
rules/sro.shtml); or
documents more clearly reflect the • Send an email to rule-comments@ Filing and Immediate Effectiveness of
assignment of responsibilities to the ICC sec.gov. Please include File Number SR– Proposed Rule Change To Amend the
Risk Department in terms of reporting ICC–2018–010 on the subject line. Clearing Agency Policy on Capital
and stress testing obligations, the Requirements and the Clearing Agency
proposed changes will ensure that ICC’s Paper Comments Capital Replenishment Plan
governance of the Stress Testing • Send paper comments in triplicate
Framework and the Liquidity Risk to Secretary, Securities and Exchange October 15, 2018.
Management Framework is clear, Commission, 100 F Street NE, Pursuant to Section 19(b)(1) of the
transparent, and documented Washington, DC 20549. Securities Exchange Act of 1934
accurately, consistent with the All submissions should refer to File (‘‘Act’’) 1 and Rule 19b–4 thereunder,2
requirements of Rule 17Ad–22(d)(8).14 Number SR–ICC–2018–010. This file notice is hereby given that on October
number should be included on the 4, 2018, The Depository Trust Company
(B) Clearing Agency’s Statement on (‘‘DTC’’) filed with the Securities and
Burden on Competition subject line if email is used. To help the
Commission process and review your Exchange Commission (‘‘Commission’’)
ICC does not believe the proposed the proposed rule change as described
comments more efficiently, please use
rule changes would have any impact, or in Items I, II and III below, which Items
only one method. The Commission will
impose any burden, on competition. have been prepared by the clearing
post all comments on the Commission’s
The proposed changes to ICC’s Stress agency. DTC filed the proposed rule
internet website (http://www.sec.gov/
Testing Framework and ICC’s Liquidity change pursuant to Section 19(b)(3)(A)
rules/sro.shtml). Copies of the
Risk Management Framework will apply of the Act 3 and Rule 19b–4(f)(4)
submission, all subsequent
uniformly across all market participants. thereunder.4 The Commission is
amendments, all written statements
Therefore, ICC does not believe the publishing this notice to solicit
with respect to the proposed rule
proposed rule changes impose any comments on the proposed rule change
change that are filed with the
burden on competition that is from interested persons.
Commission, and all written
inappropriate in furtherance of the
communications relating to the I. Clearing Agency’s Statement of the
purposes of the Act.
proposed rule change between the Terms of Substance of the Proposed
(C) Clearing Agency’s Statement on Commission and any person, other than Rule Change
Comments on the Proposed Rule those that may be withheld from the The proposed rule change consists of
Change Received From Members, public in accordance with the amendments to (i) the Clearing Agency
Participants or Others provisions of 5 U.S.C. 552, will be Policy on Capital Requirements
Written comments relating to the available for website viewing and (‘‘Capital Policy’’ or ‘‘Policy’’) of DTC
proposed rule change have not been printing in the Commission’s Public and its affiliates, National Securities
solicited or received. ICC will notify the Reference Room, 100 F Street NE, Clearing Corporation (‘‘NSCC’’) and
Commission of any written comments Washington, DC 20549, on official Fixed Income Clearing Corporation
received by ICC. business days between the hours of (‘‘FICC,’’ and together with DTC and
10:00 a.m. and 3:00 p.m. Copies of such NSCC, the ‘‘Clearing Agencies’’); and (ii)
III. Date of Effectiveness of the filings will also be available for the Clearing Agency Capital
Proposed Rule Change inspection and copying at the principal
amozie on DSK3GDR082PROD with NOTICES1
Replenishment Plan (‘‘Capital
The foregoing rule change has become office of ICE Clear Credit and on ICE Replenishment Plan’’ or ‘‘Plan’’) of the
effective pursuant to Section 19(b)(3)(A) Clear Credit’s website at https://
www.theice.com/clear-credit/regulation. 15 17 CFR 200.30–3(a)(12).
11 Id. All comments received will be posted 1 15 U.S.C. 78s(b)(1).
12 17 CFR 240.17Ad–22(d)(8). without change. Persons submitting 2 17 CFR 240.19b–4.
13 15 U.S.C. 78q–1. comments are cautioned that we do not 3 15 U.S.C. 78s(b)(3)(A).
14 17 CFR 240.17Ad–22(d)(8). redact or edit personal identifying 4 17 CFR 240.19b–4(f)(4).
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![Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices 53141
liquid net assets funded by equity to Commission of any written comments business days between the hours of
cover potential general business losses received by the Clearing Agencies. 10:00 a.m. and 3:00 p.m. Copies of the
so that the Clearing Agencies can filing also will be available for
III. Date of Effectiveness of the
continue operations and services as a inspection and copying at the principal
Proposed Rule Change, and Timing for
going concern if those losses office of DTC and on DTCC’s website
Commission Action
materialize.22 As originally (http://dtcc.com/legal/sec-rule-
implemented, the Capital Policy and the The foregoing rule change has become filings.aspx). All comments received
Capital Replenishment Plan were effective pursuant to Section 19(b)(3)(A) will be posted without change. Persons
designed to meet the requirements of of the Act 25 and paragraph (f) of Rule submitting comments are cautioned that
Rule 17Ad–22(e)(15) under the Act.23 19b–4 thereunder.26 At any time within we do not redact or edit personal
As stated above, the proposed revisions 60 days of the filing of the proposed rule identifying information from comment
would update the Capital Policy and change, the Commission summarily may submissions. You should submit only
Capital Replenishment Plan to be temporarily suspend such rule change if information that you wish to make
consistent with recent changes it appears to the Commission that such available publicly. All submissions
implemented by the Clearing Agencies. action is necessary or appropriate in the should refer to File Number SR–DTC–
In this way, the proposed changes public interest, for the protection of 2018–008 and should be submitted on
would allow the Clearing Agencies to investors, or otherwise in furtherance of or before November 9, 2018
maintain these documents in a way that the purposes of the Act.
For the Commission, by the Division of
to meet these requirements. Therefore, IV. Solicitation of Comments Trading and Markets, pursuant to delegated
such proposed revisions would be authority.27
consistent with the requirements of Rule Interested persons are invited to
Eduardo A. Aleman,
17Ad–22(e)(15) under the Act.24 submit written data, views and
arguments concerning the foregoing, Assistant Secretary.
(B) Clearing Agency’s Statement on including whether the proposed rule [FR Doc. 2018–22779 Filed 10–18–18; 8:45 am]
Burden on Competition change is consistent with the Act. BILLING CODE 8011–01–P
Each of the Clearing Agencies believes Comments may be submitted by any of
that none of the proposed revisions to the following methods:
SMALL BUSINESS ADMINISTRATION
the Capital Policy and the Capital Electronic Comments
Replenishment Plan would have any • Use the Commission’s internet [Disaster Declaration #15746 and #15747;
impact, or impose any burden, on NORTH CAROLINA Disaster Number NC–
comment form (http://www.sec.gov/ 00100]
competition. The Policy and the Plan rules/sro.shtml); or
are maintained by the Clearing Agencies • Send an email to rule-comments@
in order to satisfy their regulatory Presidential Declaration of a Major
sec.gov. Please include File Number SR– Disaster for Public Assistance Only for
requirements and generally reflect DTC–2018–008 on the subject line.
internal tools and procedures. Tools and the State of North Carolina
procedures that have a direct impact on Paper Comments AGENCY: U.S. Small Business
the rights, responsibilities or obligations • Send paper comments in triplicate Administration.
of members or participants of the to Secretary, Securities and Exchange ACTION: Notice.
Clearing Agencies are reflected in the Commission, 100 F Street NE,
Clearing Agencies’ Rules. Accordingly, Washington, DC 20549. SUMMARY: This is a Notice of the
the Capital Policy and Capital All submissions should refer to File Presidential declaration of a major
Replenishment Plan themselves are Number SR–DTC–2018–008. This file disaster for Public Assistance Only for
documents that enhance the Clearing number should be included on the the State of North Carolina (FEMA–
Agencies’ regulatory compliance and subject line if email is used. To help the 4393–DR), dated 10/12/2018.
internal management and do not have Incident: Hurricane Florence.
Commission process and review your
any impact, or impose any burden, on Incident Period: 09/07/2018 through
comments more efficiently, please use
competition. 09/29/2018.
only one method. The Commission will
The proposed revisions to correct and DATES: Issued on 10/12/2018.
post all comments on the Commission’s
update the Capital Policy and Capital Physical Loan Application Deadline
internet website (http://www.sec.gov/
Replenishment Plan would not affect Date: 12/11/2018.
rules/sro.shtml). Copies of the
any changes on the fundamental Economic Injury (EIDL) Loan
submission, all subsequent
purpose or operation of these Application Deadline Date: 07/12/2019.
amendments, all written statements
documents and, as such, would also not ADDRESSES: Submit completed loan
with respect to the proposed rule
have any impact, or impose any burden, change that are filed with the applications to: U.S. Small Business
on competition. Commission, and all written Administration, Processing and
communications relating to the Disbursement Center, 14925 Kingsport
(C) Clearing Agency’s Statement on Road, Fort Worth, TX 76155.
Comments on the Proposed Rule proposed rule change between the
Commission and any person, other than FOR FURTHER INFORMATION CONTACT:
Change Received From Members, A. Escobar, Office of Disaster
Participants, or Others those that may be withheld from the
public in accordance with the Assistance, U.S. Small Business
The Clearing Agencies have not provisions of 5 U.S.C. 552, will be Administration, 409 3rd Street SW,
amozie on DSK3GDR082PROD with NOTICES1
solicited or received any written available for website viewing and Suite 6050, Washington, DC 20416,
comments relating to this proposal. The printing in the Commission’s Public (202) 205–6734.
Clearing Agencies will notify the Reference Room, 100 F Street NE, SUPPLEMENTARY INFORMATION: Notice is
Washington, DC 20549 on official hereby given that as a result of the
22 17 CFR 240.17Ad–22(e)(15). President’s major disaster declaration on
23 See supra note 5. 25 15 U.S.C. 78s(b)(3)(A).
24 17 CFR 240.17Ad–22(e)(15). 26 17 CFR 240.19b–4(f). 27 17 CFR 200.30–3(a)(12).
VerDate Sep<11>2014 17:25 Oct 18, 2018 Jkt 247001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 E:\FR\FM\19OCN1.SGM 19OCN1](https://thefederalregister.org/doc/83_FR_53341/page/4.svg)
Document Created: 2018-10-19 01:25:09
Document Modified: 2018-10-19 01:25:09
| 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 | 83 FR 53138 |
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