[Federal Register Volume 82, Number 52 (Monday, March 20, 2017)]
[Page 14394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05402]



[Release No. 34-80235; File No. SR-FICC-2017-001]

Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action on 
Proposed Rule Change To (1) Implement the Margin Proxy, (2) Modify the 
Calculation of the Coverage Charge in Circumstances Where the Margin 
Proxy Applies, and (3) Make Certain Technical Corrections

March 14, 2017.
    On February 2, 2017, Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission'') 
proposed rule change SR-FICC-2017-001 (``Proposed Rule Change'') 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ to establish a supplemental 
Value-at-Risk charge (``VaR Charge'') calculation in FICC's Government 
Securities Division (``GSD'') margin model.\3\ The proposed rule change 
was published for comment in the Federal Register on February 9, 
2017.\4\ The Commission received three comment letters to the Proposed 
Rule Change.\5\

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On February 2, 2017, FICC also filed this proposed rule 
change as advance notice SR-FICC-2017-801 (``Advance Notice'') with 
the Commission pursuant to Section 806(e)(1) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act entitled the Payment, 
Clearing, and Settlement Supervision Act of 2010, 12 U.S.C. 
5465(e)(1), and Rule 19b-4(n)(1)(i) of the Act, 17 CFR 240.19b-
4(n)(1)(i). Notice of filing of the Advance Notice was published for 
comment in the Federal Register on March 8, 2017. Securities 
Exchange Act Release No. 80139 (March 2, 2017), 82 FR 13026 (March 
8, 2017) (SR-FICC-2017-801). The Commission shall have until April 
3, 2017 to object or not object to the Advance Notice. The proposal 
in the Proposed Rule Change and the Advance Notice shall not take 
effect until all regulatory actions required with respect to the 
proposal are completed.
    \4\ Securities Exchange Act Release No. 79958 (February 3, 
2017), 82 FR 10117 (February 9, 2017) (SR-FICC-2017-001).
    \5\ See letter from Robert E. Pooler, Chief Financial Officer, 
Ronin Capital LLC (``Ronan''), dated February 24, 2017, to Eduardo 
A. Aleman, Assistant Secretary, Commission (``Ronin Letter''); 
letter from Alan Levy, Managing Director, Industrial and Commercial 
Bank of China Financial Services LLC (``ICBCFS''), dated February 
24, 2017 (``ICBCFS Letter''); and letter from Timothy J. Cuddihy, 
Managing Director, FICC, dated March 8, 2017, to Eduardo A. Aleman, 
Assistant Secretary, Commission (``FICC Letter''), available at 
https://www.sec.gov/comments/sr-ficc-2017-001/ficc2017001.htm. Since 
the proposal contained in the Proposed Rule Change was also filed as 
an Advance Notice, Release No. 80139, supra note 3, the Commission 
is considering all public comments received on the proposal 
regardless of whether the comments are submitted to the Proposed 
Rule Change or the Advance Notice.

    Section 19(b)(2) of the Act \6\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding, or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for this proposed rule change 
is March 26, 2017. The Commission is extending this 45-day time period.

    \6\ 15 U.S.C. 78s(b)(2).

    In order to provide the Commission with sufficient time to consider 
the Proposed Rule Change, the Commission finds that it is appropriate 
to designate a longer period within which to take action on the 
Proposed Rule Change. Accordingly, the Commission, pursuant to Section 
19(b)(2) of the Act,\7\ designates May 10, 2017 as the date by which 
the Commission shall either approve, disapprove, or institute 
proceedings to determine whether to disapprove proposed rule change SR-

    \7\ Id.
    \8\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-05402 Filed 3-17-17; 8:45 am]