[Federal Register Volume 81, Number 62 (Thursday, March 31, 2016)]
[Notices]
[Pages 18662-18664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07195]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77446; File No. SR-ICC-2016-004]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change To Extend 
Single Name Backloading Incentive Program

March 25, 2016.
    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 21, 2016, 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 proposed rule change 
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 the proposed rule change is to extend ICC's single 
name backloading incentive program for client account clearing of 
single name credit default swap (``CDS'') 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

[[Page 18663]]

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 are intended to extend a single name 
backloading incentive program for client account clearing of single 
name CDS contracts.\5\ The changes are designed to incentivize market 
participants to submit additional transactions to ICC for clearing. 
Under the program, clients receive a 50% discount on ICC clearing fees 
for backloaded single name CDS contracts. The discount is paid back as 
a rebate directly to the client or through the client's Clearing 
Participant. ICC plans to extend the existing backloading program, set 
to expire March 18, 2016, until September 30, 2016. As a result of the 
extended program, contracts must have an execution date prior to 
September 1, 2016 to be eligible for the rebate program. This date was 
chosen to incentivize clients to backload positions which were 
established after the original program start date. ICC is extending the 
program to allow market participants the opportunity to backload new 
single name CDS contracts that ICC has launched since the last program 
extension date. Additionally, the program extension allows market 
participants time to prepare and adapt to industry changes regarding 
the reduction of frequency for which single name CDS contracts roll to 
the new on-the-run contract.
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    \5\ On July 30, 2015, ICE Clear Credit initially filed the 
proposed rule changes to implement a single name backloading 
incentive program for client account clearing of single name CDS 
contracts. See Securities Exchange Act Release No. 34-75656 (August 
10, 2015), 80 FR 48938 (August 14, 2015) (SR-ICC-2015-014). ICE 
Clear Credit filed to extend this program on December 14, 2015. See 
Securities Exchange Act Release No. 34-76786 (December 29, 2015), 81 
FR 286 (January 5, 2016) (SR-ICC-2015-019).
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    ICC believes the proposed rule changes are consistent with the 
requirements of the Act including Section 17A of the Act.\6\ 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) 
\7\ of the Act and Rule 19b-4(f)(2) \8\ 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 17A(b)(3)(D),\9\ because the proposed fee 
changes apply equally to all market participants clearing backloaded 
single name CDS contracts in client accounts and therefore the proposed 
changes provide for the equitable allocation of reasonable dues, fees 
and other charges among its participants. As such, the proposed changes 
are appropriately filed pursuant to Section 19(b)(3)(A) \10\ of the Act 
and paragraph (f)(2) of Rule 19b-4 thereunder.
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    \6\ 15 U.S.C. 78q-1.
    \7\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \8\ 17 CFR 240.19b-4(f)(2).
    \9\ 15 U.S.C. 78q-1(b)(3)(D).
    \10\ 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 changes 
modify pricing for client account clearing of single name CDS 
contracts. There is no limit to the number of client participants that 
may participate in the backloading incentive program; it will be open 
to all clients and rebates will be applied to all transaction fees for 
client accounts clearing eligible single name CDS contracts. As such, 
the proposed changes apply consistently across all eligible market 
participants and the implementation of such changes does not preclude 
the implementation of similar incentive programs by other market 
participants. Therefore, ICC does not believe the 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) \11\ of the Act and Rule 19b-4(f)(2) \12\ 
thereunder because the extension of the single name backloading 
incentive program for client account clearing of single name CDS 
contracts results in changes which establish or change a due, fee, or 
other charge applicable ICC's participants. 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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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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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-2016-004 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-ICC-2016-004. 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 the filing 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/clear-credit/regulation.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You

[[Page 18664]]

should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-ICC-2016-004 
and should be submitted on or before April 21, 2016.

    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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Brent J. Fields,
Secretary.
[FR Doc. 2016-07195 Filed 3-30-16; 8:45 am]
 BILLING CODE 8011-01-P