[Federal Register Volume 78, Number 190 (Tuesday, October 1, 2013)]
[Notices]
[Pages 60357-60358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23825]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70496; File No. SR-ICC-2013-07]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing of Proposed Rule Change To Provide for the Clearance of Standard 
Emerging European and Middle Eastern Sovereign Single Names

September 25, 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 September 17, 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 proposed rule change is to adopt rules that will 
provide the basis for ICC to clear additional credit default swap 
contracts. Specifically, ICC is proposing to amend Section 26D of its 
Rules to provide for the clearance of additional Standard Emerging 
Sovereign Single Name constituents of the CDX Emerging Markets Index 
(``SES Contracts''). Currently, ICC clears four Standard Latin America 
Sovereign Single Name constituents of the CDX Emerging Markets Index. 
The proposed changes to the ICC Rules would provide for the clearance 
of Standard Emerging European and Middle Eastern Sovereign Single Name 
constituents of the CDX Emerging Markets Index, specifically the 
Republic of Turkey and the Russian Federation (the ``SEEME 
Contracts'').

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

    ICC currently clears four Standard Latin America Sovereign SES 
Contracts. The addition of the SEEME Contracts will allow market 
participants an increased ability to manage risk. ICC believes that 
clearance of the SEEME Contracts 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. ICC is requesting approval for SEEME Contracts on 
two sovereign reference entities, the Republic of Turkey and the 
Russian Federation.
    SEEME Contracts have similar terms to the Standard Latin America

[[Page 60358]]

Sovereign Single Name constituents of the CDX Emerging Markets Index 
currently cleared by ICC and governed by Section 26D of the ICC rules. 
Accordingly, the proposed changes to Section 26D of the ICC rules 
include the addition of ``Standard Emerging European and Middle Eastern 
Sovereign'' as a Transaction Type for SES Contracts and the addition of 
the European Region as the CDS Region for SEEME Contracts.
    Rule 26D-102 is modified to indicate the specific Eligible SES 
Reference Entities to be cleared by ICC, namely the Federative Republic 
of Brazil, the United Mexican States, the Bolivian Republic of 
Venezuela, the Argentine Republic, the Republic of Turkey and the 
Russian Federation.
    Rules 26D-303 (SES Contract Adjustments) and 26D-315 (Terms of the 
Cleared SES Contract) are modified to incorporate SEEME Contracts as a 
Transaction Type for SES Contracts.
    Rule 26D-309 is modified to state specifically that ICC will not 
accept a trade for clearance and settlement if at the time of 
submission or acceptance of the trade or at the time of novation the 
CDS Participant submitting the trade is domiciled in the country of the 
Eligible SES Reference Entity for such SES Contract.
    Rule 26D-315(b) is also modified to indicate that for purposes of 
the CDS Committee Rules, for SEEME Contracts the CDS Region is the 
European Region.
    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, to Section 17(A)(b)(3)(F), 
because ICC believes that the clearance of SEEME Contracts will 
facilitate the prompt and accurate settlement of securities, 
specifically security-based swaps, 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.
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    \3\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    SEEME Contracts will be available to all ICC Participants for 
clearing. The clearing of SEEME Contracts by ICC does not preclude the 
offering of SEEME Contracts for clearing by other market participants. 
Therefore, 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-2013-07 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-2013-07. 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 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/notices/Notices.shtml?regulatoryFilings.
    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-2013-07 
and should be submitted on or before October 22, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\4\
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    \4\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23825 Filed 9-30-13; 8:45 am]
BILLING CODE 8011-01-P