[Federal Register Volume 77, Number 196 (Wednesday, October 10, 2012)]
[Notices]
[Page 61649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24858]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67970; File No. SR-ICC-2012-12]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change To Amend Schedule 502 of the ICE Clear
Credit Rules To Provide for Clearing of Additional Single Name
Investment Grade CDS Contracts
October 3, 2012.
I. Introduction
On August 9, 2012, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change SR-ICC-2012-12 pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'').\1\ The proposed rule change was
published for comment in the Federal Register on August 24, 2012.\2\
The Commission received no comment letters. For the reasons discussed
below, the Commission is granting approval of the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ Securities Exchange Act Release No. 34-67696 (August 20,
2012), 77 FR 51599 (August 24, 2012).
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II. Description of the Proposal
The purpose of proposed rule change is to provide for the clearance
of the following twenty additional investment grade Standard North
American Corporate Single Name CDS contracts: Nucor Corporation; V.F.
Corporation; The Procter & Gamble Company; Encana Corporation;
Weatherford International Ltd.; Chevron Corporation; Nexen Inc.; Energy
Transfer Partners, L.P.; Apache Corporation; Kimco Realty Corporation;
Prudential Financial, Inc.; Prologis, L.P.; HCP, Inc.; Lincoln National
Corporation; The Travelers Companies, Inc.; Textron Financial
Corporation; Textron Inc.; The Williams Companies, Inc.; Pacific Gas
and Electric Company; and Starwood Hotels & Resorts Worldwide, Inc.
(the ``Additional Single Names'').
As with the Standard North American Corporate Single Names
currently cleared, ICC plans to provide for the clearance of contracts
with a restructuring type of no restructuring, standardized maturity
dates up to the 10-year tenor and both standardized coupons. One of the
Additional Single Names (Starwood Hotels & Resorts Worldwide, Inc.) was
recently added by Markit as one of the one hundred twenty-five single
constituents of its Markit CDX North American Investment Grade Series
18 Index, and is not currently being cleared by ICC. Another of the
Additional Single Names (Textron Financial Corporation) is a
constituent of the Series 8 through 12 of the Markit CDX North American
Investment Grade Index, and has not been cleared previously by ICC. All
other Additional Single Names are not constituents of Series 8 through
18 of the Markit CDX North American Investment Grade Index. The
Additional Single Names do not require any changes to the body of the
ICC Rules. ICC will clear the Additional Single Names pursuant to ICC's
existing Rules. The Additional Single Names do not require any changes
to the ICC risk management framework including the ICC margin
methodology, guaranty fund methodology, pricing parameters, or pricing
model. The only change submitted was the inclusion of the Additional
Single Names to Schedule 502 of the ICC Rules. The Additional Single
Names were reviewed by the ICC Risk Department, the ICC Trading
Advisory Committee, and the ICC Risk Committee.
III. Discussion
Section 19(b)(2)(C) of the Act \3\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such organization.
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\3\ 15 U.S.C. 78s(b)(2)(C).
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Section 17A(b)(3)(F) of the Act \4\ 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 assure the safeguarding of securities and funds
which are in the custody or control of the clearing agency or for which
it is responsible.
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\4\ 15 U.S.C. 78q-1(b)(3)(F).
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The proposed rule change is consistent with the requirements of
Section 17A(b)(3)(F) and other requirements of the Act.
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \5\ and the
rules and regulations thereunder.
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\5\ 15 U.S.C. 78q-1.
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It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\6\ that the proposed rule change (File No. SR-ICC-2012-12) be, and
hereby is, approved.\7\
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\6\ 15 U.S.C. 78s(b)(2).
\7\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
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\8\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-24858 Filed 10-9-12; 8:45 am]
BILLING CODE 8011-01-P