[Federal Register Volume 84, Number 73 (Tuesday, April 16, 2019)]
[Notices]
[Pages 15659-15661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07505]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85588; File No. SR-ICC-2019-003]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change Relating to 
ICC's Cash Investment Yield Schedule

April 10, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that on March 26, 2019, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission the proposed rule change as 
described in Items I, II and III below, which Items have been prepared 
by ICC. ICC filed the proposed rule change pursuant Section 19(b)(3)(A) 
of the Act \3\ and rule 19b-4(f)(2) thereunder,\4\ such that the 
proposed rule change was immediately 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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[[Page 15660]]

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The principal purpose of the proposed rule change is to revise 
ICC's cash investment yield schedule.

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 these 
statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

(a) Purpose
    ICC currently retains a portion of interest earned on cash 
balances, net of cash management expenses. The portion of interest 
retained is based on an established cash investment yield schedule, 
which is set forth in the ICC Collateral Management presentation 
available on the ICC website.\5\ ICC proposes changes to its cash 
investment yield schedule. The proposed revisions to the cash 
investment yield schedule are set forth in Exhibit 5 hereto, and 
described in detail as follows.
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    \5\ ICC Collateral Management presentation available at: https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Collateral_Management.pdf.
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    Currently, ICC retains a certain basis points (``bps'') spread for 
interest rate market environments of zero bps or greater, net of 
expenses. ICC proposes to retain an additional 50 bps spread for non-
customer Euro cash posted by Clearing Participants (``CPs'') in excess 
of certain amounts. ICC identifies Euro House Initial Margin (``IM'') 
and Euro Guaranty Fund (``GF'') requirements (collectively, the ``total 
Euro requirement'') for CPs who clear Euro denominated products, and US 
Dollar (``USD'') House IM and USD GF requirements (collectively, the 
``total USD requirement'') for CPs who clear USD denominated products. 
A CP may meet up to 100% (but no less than 45%) of its total Euro 
requirement in Euro cash and up to 35% of its total USD requirement in 
Euro cash.\6\ ICC proposes to retain an additional 50 bps spread for 
non-customer Euro cash posted by CPs in excess of their total Euro 
requirement to discourage excess Euro deposits since ICC faces 
difficulty securitizing Euro deposits and is exposed to the credit and 
counterparty risk of banks where Euro deposits are held.
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    \6\ See Schedule 401 of the ICC Rules.
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    ICC proposes to make such changes effective on or about June 1, 
2019. ICC will issue a circular notification, in advance of the 
effective date.
(b) Statutory Basis
    ICC believes that the proposed rule changes are consistent with the 
requirements of the Act, including Section 17A of the Act.\7\ More 
specifically, the proposed rule changes change a member due, fee or 
other charge imposed by ICC under Section 19(b)(3)(A)(ii) \8\ of the 
Act and Rule 19b-4(f)(2) \9\ 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),\10\ because the proposed 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) \11\ of the Act and paragraph (f)(2) of 
Rule 19b-4 \12\ thereunder.
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
    \10\ 15 U.S.C. 78q-1(b)(3)(D).
    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(2).
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(B) Clearing Agency'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 changes to ICC's 
investment yield schedule will 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) 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 for Commission 
Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) \13\ of the Act and Rule 19b-4(f)(2) \14\ thereunder, as 
the changes to ICC's investment yield schedule constitute a change to 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.
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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 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-2019-003 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-2019-003. 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 website (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 website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE,

[[Page 15661]]

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 website at https://www.theice.com/clear-credit/regulation. All comments received will be posted without change. 
Persons submitting comments are cautioned that we do not redact or edit 
personal identifying information from comment submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ICC-2019-003 and should be 
submitted on or before May 7, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-07505 Filed 4-15-19; 8:45 am]
 BILLING CODE 8011-01-P