[Federal Register Volume 78, Number 61 (Friday, March 29, 2013)]
[Notices]
[Pages 19339-19340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07295]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69205; File No. SR-ICC-2013-02]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Publishing of ICC 
Circular Related to Swap Data Repository Reporting

March 21, 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 March 4, 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. ICC filed the proposal pursuant to Section 
19(b)(3)(A)(i) of the Act,\3\ and Rule 19b-4(f)(1) \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)(i).
    \4\ 17 CFR 240.19b-4(f)(1).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    ICC proposes to publish ICC Circular 2013/005,\5\ titled Parts 45 
and 43 SDR Reporting Requirements for Off-Facility CDS-Clearing Related 
Swaps (Firm Trades), related to the Commodity Futures Trading 
Commission's (``CFTC'') Part 43 and Part 45 regulations (Swap Data 
Repository Reporting) (``ICC Circular 2013/005'').
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    \5\ Circular number may change based on any other sequentially 
numbered ICC Circulars issued prior to the March 18, 2013 Circular 
date.
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    On December 19, 2012, CFTC staff granted conditional No-Action 
Relief (12-59) for Swap Dealers and Major Swap Participants that are 
clearing members from reporting certain off-facility swaps (the ``No-
Action Relief''). Specifically, the No-Action Relief states that, 
subject to certain conditions, the CFTC Division of Market Oversight 
will not recommend that the CFTC take enforcement action against a 
reporting counterparty (clearing member) for failure to comply with its 
obligations to report swap data arising from swaps that have been 
entered into pursuant to a Derivatives Clearing Organization's CDS 
Settlement Price Process (``CDS Clearing-Related Swaps'').
    ICC's CDS settlement price process requires that clearing members 
enter into ``firm trades'' in order to ensure that prices submitted by 
clearing members are reliable and accurate. Clearing members face ICC 
as their counterparty with respect to firm trades and firm trades are 
automatically cleared. As a result, firm trades constitute CDS 
Clearing-Related Swaps (``ICC CDS Clearing-Related Swaps''). ICC 
currently reports all of its cleared swaps, including ICC CDS Clearing-
Related Swaps, to ICE Trade Vault LLC (``ICE Trade Vault''), a duly 
registered SDR.
    As a condition to the No-Action Relief, clearing members and ICC 
must agree, as evidenced by private agreement or pursuant to ICC's 
Rules, that ICC shall fulfill all of the clearing member's obligations 
with respect to reporting ICC CDS Clearing-Related Swaps pursuant to 
Part 45. To satisfy this condition, ICC plans to issue ICC Circular 
2013/005 establishing that ICC will continue to report ICC CDS 
Clearing-Related Swaps to ICE Trade Vault thereby satisfying any 
related reporting obligation of its clearing members pursuant to Part 
45 until the expiration of the No-Action relief on June 30, 2013.
    In addition, ICC Circular 2013/005 is intended to satisfy any Part 
43 reporting obligations of ICC's clearing members related to ICC CDS 
Clearing-Related Swaps to the extent that any such reporting 
obligations might exist. ICC will be responsible, in the capacity of a 
third-party provider, for reporting required swap transaction and 
pricing data in real-time to ICE Trade Vault on behalf of a clearing 
member that is a Swap Dealer or Major Swap Participant. In the event 
that any clearing member would like to ``opt out'' of this ICC Part 43 
reporting service, the clearing member should notify ICC Client 
Services at [email protected].

II. Clearing Agency'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 such 
statements.\6\
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    \6\ The Commission has modified the text of the summaries 
prepared by ICC.
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(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    The purpose of the proposed change is to publish ICC Circular 2013/
005 in order to satisfy a condition of the No-Action Relief. ICC plans 
to publish ICC Circular 2013/005 establishing that ICC will continue to 
report ICC CDS Clearing-Related Swaps to ICE Trade Vault thereby 
satisfying any related reporting obligation of its clearing members 
pursuant to Part 45 until the expiration of the No-Action relief on 
June 30, 2013. In addition, ICC Circular 2013/005 is intended to 
satisfy any Part 43 reporting obligations of ICC's clearing members 
related to ICC CDS Clearing-Related Swaps to the extent that any such 
reporting obligations might exist. Publishing ICC Circular 2013/005 
does not require any changes to the ICC risk management framework. The 
only change being submitted is publishing ICC Circular 2013/005.
    Section 17A(b)(3)(F) of the Act \7\ 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 with Section 
17A(b)(3)(F),\8\ because facilitating clearing members' reporting 
obligations promotes the prompt and accurate settlement of securities 
transactions and the safeguarding of securities and funds.
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    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).

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[[Page 19340]]

(B) Clearing Agency'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) 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. 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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(i) \9\ of the Act and Rule 19b-4(f)(1) \10\ 
thereunder. 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.
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    \9\ 15 U.S.C. 78s(b)(3)(A)(i).
    \10\ 17 CFR 240.19b-4(f)(1).
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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-ICC-2013-02 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-2013-02. 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 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 will also be available 
for inspection and copying at the principal office of ICC and on ICC's 
Web site (https://www.theice.com/publicdocs/regulatory_filings/ICEClearCredit_030413.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-2013-02 
and should be submitted on or before April 19, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-07295 Filed 3-28-13; 8:45 am]
BILLING CODE 8011-01-P