[Federal Register Volume 79, Number 85 (Friday, May 2, 2014)]
[Notices]
[Pages 25163-25164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10041]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72036; File No. SR-ICC-2014-04]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change to Make 
Revisions Consistent with U.S. Commodity Futures Trading Commission 
(``CFTC'') Recommendations

April 28, 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 April 16, 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) \3\ of the Act, and Rule 19b-4(f)(3) \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)(3).
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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 amend the ICC 
Clearing Rules (the ``Rules'') in order to make revisions consistent 
with CFTC recommendations.

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 these 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 make revisions consistent 
with CFTC recommendations. The proposed changes in the ICC Rules 
reflect conforming changes and drafting clarifications, and do not 
affect the substance of the ICC Rules or forms of cleared products.
    ICC believes such changes will facilitate the prompt and accurate 
clearance and settlement of securities transactions and derivative 
agreements, contracts, and transactions for which it is responsible. 
The proposed Rule revisions are described in detail as follows.
    In Rule 702(e)(i), the term ``Chief Compliance Officer for CDS'' 
was revised to ``chief compliance officer for CDS'' in order to avoid 
confusion between the defined term referring to ICC's Chief Compliance 
Officer and the chief compliance officer who is in charge of credit 
default swaps (``CDS'') at an ICC Clearing Participant.
    In Rule 702(e)(i)(2),\5\ the reference to ``(see footnote above)'' 
was deleted, as there is no footnote and the reference was made in 
error.
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    \5\ In ICC's filing, it referenced Rule 702(e)(2). Following 
confirmation from ICC, Staff has changed this reference to Rule 
702(e)(i)(2).
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    In Rules 705(a) and 705(c), date of ``service'' was removed and 
replaced with date of ``delivery'' to provide clarity in the 
determination of the operative date. Similarly, in Rule 706, date of 
``service'' was removed and replaced with date of ``receipt'' to 
provide clarity in the determination of the operative date.
    In Rules 903(a)(iii), 903(a)(iv), and 903(viii)(C), references to 
``ICE Clear Credit LLC'' were updated to ``ICE Clear Credit'' in order 
to remain consistent with the usage of the defined term ``ICE Clear 
Credit'' in the Rules.
    Rule 2101-01(b) was amended to reflect current ICC practices 
regarding maintenance of Regional CDS Committee Member names and 
contact information. In the unlikely event that ICC needs to constitute 
a Regional CDS Committee, ICC staff would have adequate time to reach 
out to each CP to request contact information for the authorized 
representative who will serve on such Regional CDS Committee. Thus, 
Rule 2101-01(b) was updated to provided that each CP that is a Regional 
CDS Participant shall, ``upon request, promptly'' notify ICC of the 
identity of its authorized representative and provide contact 
information. Correspondingly, language stating that ICC maintains 
records of the Regional CDS Committee members' names and contact 
information was removed.

[[Page 25164]]

    Section 17A(b)(3)(F) of the Act \6\ 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 and to comply with the provisions of the Act and the rules 
and regulations thereunder. ICC believes that 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)(F),\7\ because ICC believes that the proposed rule changes 
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. The revisions consistent with CFTC 
recommendations alleviate potential confusion within the ICC Rules. As 
such, the proposed rule changes will facilitate the prompt and accurate 
settlement of swaps and contribute to the safeguarding of customer 
funds and securities within the control of ICC within the meaning of 
Section 17A(b)(3)(F) \8\ of the Act.
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    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ Id.
    \8\ Id.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    ICC does not believe the proposed rule changes would have any 
impact, or impose any burden, on competition. The revisions consistent 
with CFTC recommendations apply uniformly across all market 
participants. Therefore, ICC does not believe the proposed rule 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 pursuant to Section 
19(b)(3)(A) \9\ of the Act and Rule 19b-4(f)(3) \10\ thereunder because 
the revisions consistent with CFTC recommendations are concerned solely 
with the administration of ICC. 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).
    \10\ 17 CFR 240.19b-4(f)(3).
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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-2014-04 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ICC-2014-04. 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 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-2014-04 
and should be submitted on or before May 23, 2014.

    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. 2014-10041 Filed 5-1-14; 8:45 am]
BILLING CODE 8011-01-P