[Federal Register Volume 79, Number 30 (Thursday, February 13, 2014)]
[Notices]
[Pages 8760-8761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03130]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71511; File No. SR-ICC-2014-01]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Implement
Collateral and Cash Management Fee Changes
February 7, 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 February 3, 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) 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 this proposed rule change is to implement changes to
the method by which ICC charges Clearing Participants for collateral
and cash management services.
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 such 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 implement changes to the
method by which ICC charges Clearing Participants for collateral and
cash management services (e.g., custody services for collateral;
investment/placement of cash deposits; establishing prearranged and
highly reliable funding arrangements to allow conversion of non-cash
collateral into cash; and managing collateral deposits to ensure all
liquidity requirements are met). Such proposed fee changes are the
result of changes to ICC's collateral and cash management services that
were made in response to new U.S. Commodity Futures Trading Commission
(``CFTC'') regulations implementing international standards related to
liquidity requirements. The proposed changes are described in detail as
follows.
With respect to collateral deposited by Clearing Participants with
ICC for the purposes of satisfying margin and Guaranty Fund
requirements, ICC will impose a 5 basis point (bp) fee (annualized) on
U.S. Treasury securities balances (based on par value). This fee will
be calculated and charged monthly. In addition, ICC will retain a
portion of interest earned on cash balances, net of cash management
expenses. The charges will apply to both house and client
[[Page 8761]]
accounts and ICC proposes to make such changes effective beginning on
February 3, 2014.
ICC believes the proposed rule changes are consistent with the
requirements of the Act including Section 17A of the Act.\5\ 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)
\6\ of the Act and Rule 19b-4(f)(2) \7\ 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 17(A)(b)(3)(D),\8\ because the proposed
collateral and cash management fee 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) \9\ of the Act and paragraph (f)(2) of
Rule 19b-4 thereunder.
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\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78s(b)(3)(A)(ii).
\7\ 17 CFR 240.19b-4(f)(2).
\8\ 15 U.S.C. 78q-1(b)(3)(D).
\9\ 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 collateral
and cash management fee changes apply consistently across all market
participants and the implementation of the proposed collateral and cash
management fee changes does not preclude the implementation of similar
fee changes by other market participants. Therefore, ICC does not
believe the collateral and cash management fee 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) \10\ of the Act and Rule 19b-4(f)(2) \11\
thereunder because, by implementing changes to the method by which ICC
charges Clearing Participants for collateral and cash management
services, ICC is establishing or changing 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.\12\
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
\12\ 15 U.S.C. 78s(b)(3)(C).
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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-2014-01 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-ICC-2014-01. 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 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/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-2014-01
and should be submitted on or before March 6, 2014.
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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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-03130 Filed 2-12-14; 8:45 am]
BILLING CODE 8011-01-P