[Federal Register Volume 77, Number 165 (Friday, August 24, 2012)]
[Notices]
[Pages 51599-51600]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-20823]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67696; File No. SR-ICC-2012-12]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing of Proposed Rule Change To Amend Schedule 502 of the ICE Clear 
Credit Rules To Provide for Clearing of Additional Single Name 
Investment Grade CDS Contracts

August 20, 2012.
    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 August 9, 2012, 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. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of proposed rule change is to provide for the clearance 
of the following twenty additional investment grade Standard North 
American Corporate Single Name CDS contracts: Nucor Corporation; V.F. 
Corporation; The Procter & Gamble Company; Encana Corporation; 
Weatherford International Ltd.; Chevron Corporation; Nexen Inc.; Energy 
Transfer Partners, L.P.; Apache Corporation; Kimco Realty Corporation; 
Prudential Financial, Inc.; Prologis, L.P.; HCP, Inc.; Lincoln National 
Corporation; The Travelers Companies, Inc.; Textron Financial 
Corporation; Textron Inc.; The Williams Companies, Inc.; Pacific Gas 
and Electric Company; and Starwood Hotels & Resorts Worldwide, Inc. 
(the ``Additional Single Names'').

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of these 
statements.\3\
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    \3\ The Commission has modified the text of the summaries 
prepared by ICC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    As with the Standard North American Corporate Single Names 
currently cleared, ICC plans to provide for the clearance of contracts 
with a restructuring type of no restructuring, standardized maturity 
dates up to the 10-year tenor and both standardized coupons. One of the 
Additional Single Names (Starwood Hotels & Resorts Worldwide, Inc.) was 
recently added by Markit as one of the one hundred

[[Page 51600]]

twenty-five single constituents of its Markit CDX North American 
Investment Grade Series 18 Index, and is not currently being cleared by 
ICC. Another of the Additional Single Names (Textron Financial 
Corporation) is a constituent of the Series 8 through 12 of the Markit 
CDX North American Investment Grade Index, and has not been cleared 
previously by ICC. All other Additional Single Names are not 
constituents of Series 8 through 18 of the Markit CDX North American 
Investment Grade Index. The Additional Single Names do not require any 
changes to the body of the ICC Rules. ICC will clear the Additional 
Single Names pursuant to ICC's existing Rules. The Additional Single 
Names do not require any changes to the ICC risk management framework 
including the ICC margin methodology, guaranty fund methodology, 
pricing parameters, or pricing model. The only change being submitted 
is the inclusion of the Additional Single Names to Schedule 502 of the 
ICC Rules. The Additional Single Names have been reviewed by the ICC 
Risk Department, the ICC Trading Advisory Committee, and the ICC Risk 
Committee.
    ICC believes that the clearing of the Additional Single Names is 
consistent with the purposes and requirements of Section 17A of the Act 
\4\ and the rules and regulations thereunder applicable to ICC because 
it will facilitate the prompt and accurate settlement of security-based 
swaps and contribute to the safeguarding of securities and funds 
associated with security-based swap transactions.
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    \4\ 15 U.S.C. 78q-1.
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Self-Regulatory Organization's Statement on Burden on Competition

    ICC does not believe the proposed rule change would have any 
impact, or impose any burden, on competition.

(C) Self-Regulatory Organization'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. 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

    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 the 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 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.shtmlSec.  ); or
     Send an email to [email protected]. Please include 
File Number SR-ICC-2012-12 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICC-2012-12. 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.shtmlSec.  ). 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 Web site 
viewing and printing in the Commission's Public Reference Section, 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 such filings will also 
be available for inspection and copying at the principal office of ICC 
and on ICC's Web site at https://www.theice.com/publicdocs/regulatory_filings/ICEClearCredit_080912.pdf.
    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-2012-12 
and should be submitted on or before September 14, 2012.

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\5\
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    \5\ 17 CFR 200.30-3(a)(12).
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Elizabeth M. Murphy,
Secretary.
 [FR Doc. 2012-20823 Filed 8-23-12; 8:45 am]
BILLING CODE 8011-01-P