[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8760-8761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03130]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-71511; File No. SR-ICC-2014-01]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Implement 
Collateral and Cash Management Fee Changes

February 7, 2014.
    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 February 3, 2014, 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) of the Act,\3\ and Rule 19b-4(f)(2) \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).
    \4\ 17 CFR 240.19b-4(f)(2).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The purpose of this proposed rule change is to implement changes to 
the method by which ICC charges Clearing Participants for collateral 
and cash management services.

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 regarding 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.

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

    The proposed revisions are intended to implement changes to the 
method by which ICC charges Clearing Participants for collateral and 
cash management services (e.g., custody services for collateral; 
investment/placement of cash deposits; establishing prearranged and 
highly reliable funding arrangements to allow conversion of non-cash 
collateral into cash; and managing collateral deposits to ensure all 
liquidity requirements are met). Such proposed fee changes are the 
result of changes to ICC's collateral and cash management services that 
were made in response to new U.S. Commodity Futures Trading Commission 
(``CFTC'') regulations implementing international standards related to 
liquidity requirements. The proposed changes are described in detail as 
follows.
    With respect to collateral deposited by Clearing Participants with 
ICC for the purposes of satisfying margin and Guaranty Fund 
requirements, ICC will impose a 5 basis point (bp) fee (annualized) on 
U.S. Treasury securities balances (based on par value). This fee will 
be calculated and charged monthly. In addition, ICC will retain a 
portion of interest earned on cash balances, net of cash management 
expenses. The charges will apply to both house and client

[[Page 8761]]

accounts and ICC proposes to make such changes effective beginning on 
February 3, 2014.
    ICC believes the proposed rule changes are consistent with the 
requirements of the Act including Section 17A of the Act.\5\ More 
specifically, the proposed rule changes establish or change a member 
due, fee or other charge imposed by ICC under Section 19(b)(3)(A)(ii) 
\6\ of the Act and Rule 19b-4(f)(2) \7\ thereunder. ICC believes the 
proposed rule changes are consistent with the requirements of the Act 
and the rules and regulations thereunder applicable to ICC, in 
particular, to Section 17(A)(b)(3)(D),\8\ because the proposed 
collateral and cash management fee changes apply equally to all market 
participants and therefore the proposed changes provide for the 
equitable allocation of reasonable dues, fees and other charges among 
participants. As such, the proposed changes are appropriately filed 
pursuant to Section 19(b)(3)(A) \9\ of the Act and paragraph (f)(2) of 
Rule 19b-4 thereunder.
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \7\ 17 CFR 240.19b-4(f)(2).
    \8\ 15 U.S.C. 78q-1(b)(3)(D).
    \9\ 15 U.S.C. 78s(b)(3)(A).
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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. The proposed collateral 
and cash management fee changes apply consistently across all market 
participants and the implementation of the proposed collateral and cash 
management fee changes does not preclude the implementation of similar 
fee changes by other market participants. Therefore, ICC does not 
believe the collateral and cash management fee changes impose any 
burden on competition that is inappropriate in furtherance of the 
purposes of the Act.

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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(2) \11\ 
thereunder because, by implementing changes to the method by which ICC 
charges Clearing Participants for collateral and cash management 
services, ICC is establishing or changing a due, fee, or other charge 
applicable only to a member. 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.\12\
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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
    \12\ 15 U.S.C. 78s(b)(3)(C).
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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-2014-01 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-2014-01. 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 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-2014-01 
and should be submitted on or before March 6, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03130 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P