[Federal Register Volume 78, Number 35 (Thursday, February 21, 2013)]
[Notices]
[Pages 12125-12127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03971]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68928; File No. SR-ICC-2013-01]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing of Proposed Rule Change To Update Chapter 26 and Remove Schedule 
502 of the ICE Clear Credit Rules

February 14, 2013.
    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 31, 2013, 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 the proposed rule change is to update Chapter 26 
(Cleared CDS Products) of the ICC Rules and remove Schedule 502 (List 
of Pre-Approved Products) from the ICC Rules. The proposed rule change 
also includes a conforming edit within Chapter 5 (Risk Committee) of 
the ICC Rules. This update will provide direct reference within the ICC 
Rules to the cleared products list always available on the ICC Web site 
(``Approved Products List'') and add additional standards for certain 
ICC cleared products. ICC notes that rule submissions for updates to 
ICC's cleared product offering will be required under certain 
circumstances (e.g., certain financial single names, additional single-
name constituents of the Emerging Markets Index, and High Yield single 
names).

[[Page 12126]]

    ICC proposes to amend Chapter 26 of its rules to update the 
definitions of Eligible CDX.NA Untranched Index (Rule 26A-102), 
Eligible SNAC Reference Entities (Rule 26B-102), Eligible SNAC 
Reference Obligations (Rule 26B-102), Eligible CDX.EM Untranched Index 
(Rule 26C-102), Eligible SES Reference Entities (Rule 26D-102) and 
Eligible SES Reference Obligations (Rule 26D-102) to include the 
requirement that the products must be determined by ICC to be eligible.
    ICC proposes to amend Chapter 26 of its rules to update the 
definitions of List of Eligible CDX.NA Untranched Indexes (Rule 26A-
102), List of Eligible SNAC Reference Entities (Rule 26B-102), List of 
Eligible CDX.EM Untranched Indexes (Rule 26C-102) and List of Eligible 
SES Reference Entities (Rule 26D-102) to include the reference that the 
Approved Products List will be maintained, updated and published on the 
ICC Web site.
    ICC proposes to amend Chapter 26 of its rules to add the definition 
of Eligible SNAC Sector in Rule 26B-102 of the ICC Rules. The listed 
Eligible SNAC Sectors are: Basic Materials, Consumer Goods, Consumer 
Services, Energy, Financials, Healthcare, Industrials, Technology, 
Telecommunications Services, and Utilities. The requirement to list the 
Eligible SNAC Sector on the List of Eligible SNAC Reference Entities is 
also added to the definition of List of Eligible SNAC Reference 
Entities in Rule 26B-102.
    ICC proposes to amend Chapter 26 of its rules to include within the 
definition of List of Eligible SES Reference Entities in Rule 26D-102 
the requirement to list the Sector, Government, in the List of Eligible 
SES Reference Entities.
    ICC proposes to remove Schedule 502 from the ICC Rules as Schedule 
502 provides information available in the Approved Products List on the 
ICC Web site. The Approved Products List provides the information 
currently available in Schedule 502 as well as all additional product 
information listed in the definitions of List of Eligible CDX.NA 
Untranched Indexes (Rule 26A-102), List of Eligible SNAC Reference 
Entities (Rule 26B-102), List of Eligible CDX.EM Untranched Indexes 
(Rule 26C-102) and List of Eligible SES Reference Entities (Rule 26D-
102).
    ICC proposes to make one conforming amendment to Chapter 5 of its 
rules, specifically Rule 502(a), to change a reference to Schedule 502 
of the ICC Rules to reference the Approved Products List on the ICC Web 
site.

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.

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

    The proposed changes to the ICC Rules will provide direct reference 
within the ICC Rules to the cleared products list available on the ICC 
Web site and add additional standards for certain ICC cleared products. 
The proposed rule changes do not require any changes to the ICC risk 
management framework including the ICC margin methodology, guaranty 
fund methodology, pricing parameters and pricing model.
    Section 17A(b)(3)(F) of the Act \3\ 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. ICC believes that the proposed rule change is consistent 
with the requirements of the Act and the rules and regulations 
thereunder applicable to ICC, in particular, Section 17(A)(b)(3)(F),\4\ 
because ICC believes that providing direct reference within the ICC 
Rules to the Approved Products List available on the ICC Web site and 
adding additional standards for certain ICC cleared products will 
facilitate the prompt and accurate settlement of swaps and contribute 
to the safeguarding of securities and funds associated with swap 
transactions which are in the custody or control of ICC or for which it 
is responsible. ICC is updating Chapters 5 and 26 and Schedule 502 of 
the ICC Rules to provide direct reference to the Approved Products List 
available on the ICC Web site and to add additional standards for 
certain ICC cleared products in order to assure Clearing Participants 
are informed of the ICC approved products.
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    \3\ 15 U.S.C. 78q-1(b)(3)(F).
    \4\ 15 U.S.C. 78q-1(b)(3)(F).
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B. 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.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-ICC-2013-01 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-2013-01. 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

[[Page 12127]]

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 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 
such filings 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/publicdocs/regulatory_filings/ICEClearCredit_20130131.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-2013-01 
and should be submitted on or before March 14, 2013.

    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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03971 Filed 2-20-13; 8:45 am]
BILLING CODE 8011-01-P