[Federal Register Volume 78, Number 63 (Tuesday, April 2, 2013)]
[Notices]
[Pages 19790-19791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-07583]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-69243; File No. SR-ICC-2013-01]
Self-Regulatory Organizations; ICE Clear Credit LLC; Order
Approving Proposed Rule Change, as Modified by Amendments No. 1 and 2
Thereto, To Update Chapter 26 and Remove Schedule 502 of the ICE Clear
Credit Rules
March 27, 2013.
I. Introduction
On January 31, 2013, ICE Clear Credit LLC (``ICC'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change SR-ICC-2013-01 pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The
proposed rule change was published for comment in the Federal Register
on February 21, 2013.\3\ On March 7, 2013, ICC filed Amendment No. 1 to
the proposed rule change.\4\ On March 14, 2013, ICC filed Amendment No.
2 to the proposed rule change.\5\ The Commission did not receive
comments regarding the proposal. For the reasons discussed below, the
Commission is granting approval of the proposed rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 68928 (Feb. 14, 2013),
78 FR 12125 (Feb. 21, 2013).
\4\ In Amendment No. 1, ICC amended the filing to remove
European index CDS and European single-name CDS from Schedule 502 of
the ICC Rulebook (``ICC Rules''), which were added to the ICC Rules
subsequent to ICC filing this proposed rule change. The amendment
also included conforming changes to the chapters of the ICC Rules
referencing iTraxx Europe index CDS and European single-name CDS to
reflect the removal of Schedule 502.
\5\ In Amendment No. 2, ICC amended the filing to remove certain
index series listings scheduled to occur on March 20, 2013, and
March 27, 2013, which were added to Schedule 502 subsequent to ICC
filing this proposed rule change. ICC also amended Chapter 26G of
the ICC Rules to change the abbreviation for ``Standard European
Corporate'' from ``SNEC'' to ``SDEC''.
---------------------------------------------------------------------------
II. Description
The purpose of the proposed rule change is to update Chapter 26
(Cleared CDS Products) of the ICC Rules and remove Schedule 502 (List
of Pre-Approved Products) from the ICC Rules. The proposed rule change
also includes a conforming edit within Chapter 5 (Risk Committee) of
the ICC Rules. This update will provide direct reference within the ICC
Rules to the cleared products list always available on the ICC Web site
(``Approved Products List'') and add additional standards for certain
ICC cleared products. ICC agrees that rule submissions for updates to
ICC's cleared product offering will be required under certain
circumstances (e.g., certain financial single names, additional single-
name constituents of the Emerging Markets Index, and High Yield single
names).
ICC proposes to amend Chapter 26 of its rules to update the
definitions of Eligible CDX.NA Untranched Index (Rule 26A-102),
Eligible SNAC Reference Entities (Rule 26B-102), Eligible SNAC
Reference Obligations (Rule 26B-102), Eligible CDX.EM Untranched Index
(Rule 26C-102), Eligible SES Reference Entities (Rule 26D-102),
Eligible SES Reference Obligations (Rule 26D-102), Eligible iTraxx
Europe Untranched Index (Rule 26F-102), Eligible SDEC Reference
Entities (Rule 26G-102) and Eligible SDEC Reference Obligations (Rule
26G-102) to include the requirement that the products must be
determined by ICC to be eligible.
ICC proposes to amend Chapter 26 of its rules to update the
definitions of List of Eligible CDX.NA Untranched Indexes (Rule 26A-
102), List of Eligible SNAC Reference Entities (Rule 26B-102), List of
Eligible CDX.EM Untranched Indexes (Rule 26C-102), List of Eligible SES
Reference Entities (Rule 26D-102), List of Eligible iTraxx Europe
Untranched Indexes (Rule 26F-102) and List of Eligible SDEC Reference
Entities (Rule 26G-102) to include the reference that the Approved
Products List will be maintained, updated and published on the ICC Web
site.
ICC proposes to amend Chapter 26 of its rules to add the definition
of Eligible SNAC Sector in Rule 26B-102 of the
[[Page 19791]]
ICC Rules. The listed Eligible SNAC Sectors are: Basic Materials,
Consumer Goods, Consumer Services, Energy, Financials, Healthcare,
Industrials, Technology, Telecommunications Services, and Utilities.
The requirement to list the Eligible SNAC Sector on the List of
Eligible SNAC Reference Entities is also added to the definition of
List of Eligible SNAC Reference Entities in Rule 26B-102.
ICC proposes to amend Chapter 26 of its rules to add the definition
of Eligible SDEC Sector in Rule 26G-102 of the ICC Rules. The listed
Eligible SDEC Sectors are: Basic Materials, Consumer Goods, Consumer
Services, Energy, Financials, Healthcare, Industrials, Technology,
Telecommunications Services, and Utilities. The requirement to list the
Eligible SDEC Sector on the List of Eligible SDEC Reference Entities is
also added to the definition of List of Eligible SDEC Reference
Entities in Rule 26G-102.
ICC proposes to amend Chapter 26 of its rules to include within the
definition of List of Eligible SES Reference Entities in Rule 26D-102
the requirement to list the Sector, Government, in the List of Eligible
SES Reference Entities.
ICC proposes to remove Schedule 502 from the ICC Rules as Schedule
502 provides information available in the Approved Products List on the
ICC Web site. The Approved Products List provides the information
currently available in Schedule 502 as well as all additional product
information listed in the definitions of List of Eligible CDX.NA
Untranched Indexes (Rule 26A-102), List of Eligible SNAC Reference
Entities (Rule 26B-102), List of Eligible CDX.EM Untranched Indexes
(Rule 26C-102), List of Eligible SES Reference Entities (Rule 26D-102),
List of Eligible iTraxx Europe Untranched Indexes (Rule 26F-102) and
List of Eligible SDEC Reference Entities (Rule 26G-102).
ICC proposes to make one conforming amendment to Chapter 5 of its
rules, specifically Rule 502(a), to change a reference to Schedule 502
of the ICC Rules to reference the Approved Products List on the ICC Web
site.
The proposed changes to the ICC Rules will provide direct reference
within the ICC Rules to the cleared products list available on the ICC
Web site and add additional standards for certain ICC cleared products.
The proposed rule changes do not require any changes to the ICC risk
management framework including the ICC margin methodology, guaranty
fund methodology, pricing parameters and pricing model.
III. Discussion
Section 19(b)(2)(C) of the Act \6\ 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. Section 17A(b)(3)(F) of the Act \7\
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.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78s(b)(2)(C).
\7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of Section 17A of the Act \8\ and the rules and
regulations thereunder applicable to ICC. The proposed rule change
would provide direct reference within the ICC Rules to the Approved
Products List available on the ICC Web site and add additional
standards for certain ICC cleared products to assure that Clearing
Participants are informed of the ICC approved products, thereby
promoting the prompt and accurate clearance and settlement of swaps and
security-based swaps transactions.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
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 \9\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\9\ Id.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\10\ that the proposed rule change (File No. SR-ICC-2013-01), as
modified by Amendments No. 1 and 2, be, and hereby is, approved.\11\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(2).
\11\ 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.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-07583 Filed 4-1-13; 8:45 am]
BILLING CODE 8011-01-P