[Federal Register Volume 80, Number 71 (Tuesday, April 14, 2015)]
[Notices]
[Pages 20047-20049]
[FR Doc No: 2015-08448]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74676; File No. SR-ICC-2015-008]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change Related to Settlement Finality

April 8, 2015.
    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 April 1, 2015, 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. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The principal purpose of the proposed changes is to amend ICC
Clearing Rule 401 (``Rule 401'') \3\ in order to provide additional
clarity regarding settlement finality with respect to Mark-to-Market
Margin (as defined in ICC Rule 401).
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    \3\ Pursuant to a telephone call with ICC's internal counsel on
April 2, 2015, staff in the Division of Trading and Markets
corrected an incorrect reference to ICC Rule 401(b)(ii). ICC
intended to refer to ICC Rule 401.
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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 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. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    ICC proposes changes to Rule 401 in order to provide additional
clarity regarding settlement finality with respect to Mark-to-Market
Margin. Specifically, ICC is proposing to add new subsections (k) and
(l) to Rule 401. The new subsections are not intended to change any
current ICC practices; rather, such changes are intended to provide
additional clarity regarding settlement finality with respect to Mark-
to-Market Margin. All capitalized terms not defined herein are defined
in the ICC Rules.
    ICC proposes adding language in Rule 401(k) to clarify that each
Transfer of Mark-to-Market Margin shall constitute a settlement (within
the meaning of U.S. Commodity Futures Trading Commission Rule 39.14
\4\) and shall be final as of the time ICC's accounts are debited or
credited with the relevant payment. Further, ICC proposes adding
language in Rule 401(l) to state that once settlement of a Transfer of
Mark-to-Market Margin in respect of the Margin Requirements for a Mark-
to-Market Margin Category is final, the fair value of the outstanding
exposures for the relevant Contracts in that Mark-to-Market Margin
Category (taking into account the Margin provided in respect of such
Margin Requirement) will be reset to zero. Such additional language is
consistent with ICC's current practices and is intended to provide
further clarity regarding ICC's settlement cycle.
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    \4\ 17 CFR 39.14(a).
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    Section 17A(b)(3)(F) of the Act \5\ 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 comply with the provisions of the Act and the rules
and regulations thereunder. ICC believes that the proposed rule change
is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to ICC, in particular, to section
17(A)(b)(3)(F),\6\ because ICC believes that the proposed rule change
will assure the prompt and accurate clearance and settlement of
securities transactions, derivatives agreements, contracts, and
transactions. The proposed changes to the ICC Rules provide additional
clarity regarding ICC's current settlement cycle. ICC believes the
proposed revisions provide further clarity and transparency in the ICC
Rules. ICC believes clarity and transparency in its Rules is of value
to the market in order to provide a comprehensive understanding of
ICC's operations. As such, the proposed rule change is designed to
promote the prompt and accurate clearance and settlement of securities
transactions, derivatives agreements, contracts, and transactions
within the meaning of section 17A(b)(3)(F) \7\ of the Act.
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    \5\ 15 U.S.C. 78q-1(b)(3)(F).
    \6\ Id.
    \7\ Id.
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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 changes, which
clarify aspects of ICC's settlement cycle, result in no operational
changes and apply uniformly across all market participants. Therefore,
ICC does not believe the proposed rule change imposes 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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.

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_ADDRESS>Please include
File Number SR-ICC-2015-008 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICC-2015-008. 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/clear-credit/regulation.
    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-2015-008
and should be submitted on or before May 5, 2015.

    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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Brent J. Fields,
Secretary.
[FR Doc. 2015-08448 Filed 4-13-15; 8:45 am]
BILLING CODE 8011-01-P