31244 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 

9 17 CFR 240.19b–4(f)(6). 

10 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires the Exchange to give the 

Commission written notice of the Exchange’s intent 

to file the proposed rule change along with a brief 

description and the text of the proposed rule 

change, at least five business days prior to the date 

of filing of the proposed rule change, or such 

shorter time as designated by the Commission. The 

Exchange has satisfied this pre-filing requirement. 

11 17 CFR 240.19b–4(f)(6)(iii). 

12See Securities Exchange Act Release No. 61061 

(November 24, 2009), 74 FR 62857 (December 1, 

2009) (SR–NYSEArca–2009–44). 

13For purposes only of waiving the operative 

delay for this proposal, the Commission has 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 

14 15 U.S.C. 78s(b)(2)(B). 15 17 CFR 200.30–3(a)(12). 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 9 normally does not 

become operative prior to 30 days after 

the date of the filing.10 However, 

pursuant to Rule 19b–4(f)(6)(iii),11 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. The Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest 

because doing so will allow the Pilot 

Program to continue without 

interruption in a manner that is 

consistent with the Commission’s prior 

approval of the extension and expansion 

of the Pilot Program and will allow the 

Exchange and the Commission 

additional time to analyze the impact of 

the Pilot Program.12 Accordingly, the 

Commission designates the proposed 

rule change as operative upon filing 

with the Commission.13

At any time within 60 days of the 

filing of such 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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 14 of the Act to 

determine whether the proposed rule 

change should be approved or 

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 rule-comments@

sec.gov. Please include File Number SR– 

ISE–2018–57 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–ISE–2018–57. 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 website (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 website 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 the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–ISE–2018–57 and should be 

submitted on or before July 24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14292 Filed 7–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[[Release No. 34–83545; File No. SR–ICC– 

2018–007] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change, SecurityBased Swap Submission, or Advance 

Notice Relating to the Clearance of an 

Additional Credit Default Swap 

Contract 

June 28, 2018 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934, 15 

U.S.C. 78s(b)(1) and Rule 19b–4, 17 CFR 

240.19b–4, notice is hereby given that 

on June 13, 2018, ICE Clear Credit LLC 

(‘‘ICC’’) filed with the Securities and 

Exchange Commission the proposed 

rule change, security-based swap 

submission, or advance notice 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, 

security-based swap submission, or 

advance notice from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change, Security-Based Swap 

Submission, or Advance Notice 

The principal purpose of the 

proposed rule change is to revise the 

ICC Rulebook (the ‘‘Rules’’) to provide 

for the clearance of an additional 

Standard Emerging Market Sovereign 

CDS contract (‘‘EM Contract’’). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

In its filing with the Commission, ICC 

included statements concerning the 

purpose of and basis for the proposed 

rule change, security-based swap 

submission, or advance notice and 

discussed any comments it received on 

the proposed rule change, securitybased swap submission, or advance 

notice. 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) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

(a) Purpose 

The purpose of the proposed rule 

change is to adopt rules that will 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 31245 

1 15 U.S.C. 78q–1(b)(3)(F). 

2 15 U.S.C. 78q–1(b)(3)(F). 

3 17 CFR 240.17Ad–22. 

4 17 CFR 240.17Ad–22(b)(2). 

5 17 CFR 240.17Ad–22(b)(3). 

6 17 CFR 240.17Ad–22(d)(4). 

7 17 CFR 240.17Ad–22(d)(5), (12) and (15). 

8 17 CFR 240.17Ad–22(d)(8). 

9 17 CFR 240.17Ad–22(d)(11). 

provide the basis for ICC to clear an 

additional credit default swap contract. 

ICC believes the addition of this 

contract will benefit the market for 

credit default swaps by providing 

market participants the benefits of 

clearing, including reduction in 

counterparty risk and safeguarding of 

margin assets pursuant to clearing house 

rules. Clearing of the additional EM 

Contract will not require any changes to 

ICC’s Risk Management Framework or 

other policies and procedures 

constituting rules within the meaning of 

the Securities Exchange Act of 1934 

(‘‘Act’’). 

ICC proposes amending Subchapter 

26D of its Rules to provide for the 

clearance of the additional EM Contract, 

namely the Lebanese Republic. This 

additional EM Contract has terms 

consistent with the other EM Contracts 

approved for clearing at ICC and 

governed by Subchapter 26D of the 

Rules. Minor revisions to Subchapter 

26D (Standard Emerging Market 

Sovereign (‘‘SES’’) Single Name) are 

made to provide for clearing the 

additional EM Contract. Specifically, in 

Rule 26D–102 (Definitions), ‘‘Eligible 

SES Reference Entities’’ is modified to 

include the Lebanese Republic in the 

list of specific Eligible SES Reference 

Entities to be cleared by ICC. 

(b) Statutory Basis 

Section 17A(b)(3)(F) of the Act 1

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. The additional EM Contract 

is similar to the EM Contracts currently 

cleared by ICC, and will be cleared 

pursuant to ICC’s existing clearing 

arrangements and related financial 

safeguards, protections and risk 

management procedures. Clearing of the 

additional EM Contract will allow 

market participants an increased ability 

to manage risk and ensure the 

safeguarding of margin assets pursuant 

to clearing house rules. ICC believes that 

acceptance of the new EM Contract, on 

the terms and conditions set out in the 

Rules, is consistent with the prompt and 

accurate clearance of and settlement of 

securities transactions and derivative 

agreements, contracts and transactions 

cleared by ICC, the safeguarding of 

securities and funds in the custody or 

control of ICC, and the protection of 

investors and the public interest, within 

the meaning of Section 17A(b)(3)(F) of 

the Act.2

Clearing of the additional EM 

Contract will also satisfy the 

requirements of Rule 17Ad–22.3 In 

particular, in terms of financial 

resources, ICC will apply its existing 

initial margin methodology to the 

additional contract. ICC believes that 

this model will provide sufficient initial 

margin requirements to cover its credit 

exposure to its clearing members from 

clearing such contract, consistent with 

the requirements of Rule 17Ad– 

22(b)(2).4 In addition, ICC believes its 

Guaranty Fund, under its existing 

methodology, will, together with the 

required initial margin, provide 

sufficient financial resources to support 

the clearing of the additional contract 

consistent with the requirements of Rule 

17Ad–22(b)(3).5 ICC also believes that 

its existing operational and managerial 

resources will be sufficient for clearing 

of the additional contract, consistent 

with the requirements of Rule 17Ad– 

22(d)(4),6 as the new contract is 

substantially the same from an 

operational perspective as existing 

contracts. Similarly, ICC will use its 

existing settlement procedures and 

account structures for the new contract, 

consistent with the requirements of Rule 

17Ad–22(d)(5), (12) and (15) 7 as to the 

finality and accuracy of its daily 

settlement process and avoidance of the 

risk to ICC of settlement failures. ICC 

determined to accept the additional EM 

Contract for clearing in accordance with 

its governance process, which included 

review of the contract and related risk 

management considerations by the ICC 

Risk Committee and approval by its 

Board. These governance arrangements 

are consistent with the requirements of 

Rule 17Ad–22(d)(8).8 Finally, ICC will 

apply its existing default management 

policies and procedures for the 

additional EM Contract. ICC believes 

that these procedures allow for it to take 

timely action to contain losses and 

liquidity pressures and to continue 

meeting its obligations in the event of 

clearing member insolvencies or 

defaults in respect of the additional 

single names, in accordance with Rule 

17Ad–22(d)(11).9

(B) Clearing Agency’s Statement on 

Burden on Competition 

The additional EM Contract will be 

available to all ICC participants for 

clearing. The clearing of this additional 

EM Contract by ICC does not preclude 

the offering of the additional EM 

Contract for clearing by other market 

participants. Accordingly, ICC does not 

believe that clearance of the additional 

EM Contract will impose any burden on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change, Security-Based Swap 

Submission, or Advance Notice 

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, Security-Based 

Swap Submission, or Advance Notice 

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, security-based swap 

submission, or advance notice 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 rule-comments@

sec.gov. Please include File Number SR– 

ICC–2018–007 on the subject line. 

Paper Comments 

Send paper comments in triplicate to 

Secretary, Securities and Exchange 


sradovich on DSK3GMQ082PROD with NOTICES
31246 Federal Register / Vol. 83, No. 128 / Tuesday, July 3, 2018 / Notices 

10 17 CFR 200.30–3(a)(12). 

1 15 U.S.C.78s(b)(1). 

2 17 CFR 240.19b 4. 

3See Securities Exchange Act Release No. 82484 

(Jan. 11, 2018), 83 FR 2704 (Jan. 18, 2018). 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 82759 

(Feb. 22, 2018), 83 FR 8719 (Feb. 28, 2018). 

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

7See Securities Exchange Act Release No. 82995 

(Apr. 5, 2018), 83 FR 15425 (Apr. 10, 2018). 

Specifically, the Commission instituted proceedings 

to allow for additional analysis of the proposed rule 

change’s consistency with Section 6(b)(5) of the 

Act, which requires, among other things, that the 

rules of a national securities exchange be ‘‘designed 

to prevent fraudulent and manipulative acts and 

practices, to promote just and equitable principles 

of trade,’’ and ‘‘to protect investors and the public 

interest.’’ See id. at 15426 (citing 15 U.S.C. 

78f(b)(5)). 

8See Letters from Anita Desai (Apr. 6, 2018); Ed 

Kaleda (Apr. 6, 2018); Don Krohn (Apr. 7, 2018); 

Adam Malkin (Apr. 8, 2018); Shravan Kumar (Apr. 

11, 2018); David Barnwell (Apr. 12, 2018); Louise 

Fitzgerald (Apr. 18, 2018); and Sharon BrownHruska, Managing Director, and Trevor Wagener, 

Consultant, NERA Economic Consulting (May 18, 

2018). All comments on the proposed rule change 

are available on the Commission’s website at: 

https://www.sec.gov/comments/sr-cboebzx-2018- 

001/cboebzx2018001.htm. 

9 15 U.S.C. 78s(b)(2). 

10 Id. 

11 17 CFR 200.30–3(a)(57). 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–ICC–2018–007. 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 website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change, security-based swap 

submission, or advance notice that are 

filed with the Commission, and all 

written communications relating to the 

proposed rule change, security-based 

swap submission, or advance notice 

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 website 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 will also be available for 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/regulation. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. All submissions should refer 

to File Number SR–ICC–2018–007 and 

should be submitted on or before July 

24, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14299 Filed 7–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83548; File No. SR– 

CboeBZX–2018–001] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on Proceedings To 

Determine Whether To Approve or 

Disapprove a Proposed Rule Change 

To List and Trade the Shares of the 

GraniteShares Bitcoin ETF and the 

GraniteShares Short Bitcoin ETF 

Under BZX Rule 14.11(f)(4), Trust 

Issued Receipts 

June 28, 2018. 

On January 5, 2018, Cboe BZX 

Exchange, Inc. (‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade the shares of the 

GraniteShares Bitcoin ETF and the 

GraniteShares Short Bitcoin ETF under 

BZX Rule 14.11(f)(4). The proposed rule 

change was published for comment in 

the Federal Register on January 18, 

2018.3 On February 22, 2018, pursuant 

to Section 19(b)(2) of the Act,4 the 

Commission designated a longer period 

within which to approve the proposed 

rule change, disapprove the proposed 

rule change, or institute proceedings to 

determine whether to disapprove the 

proposed rule change.5 On April 5, 

2018, the Commission instituted 

proceedings under 

Section 19(b)(2)(B) of the Act 6 to 

determine whether to approve or 

disapprove the proposed rule change.7

The Commission has received eight 

comments on the proposed rule 

change.8

Section 19(b)(2) of the Act 9 provides 

that, after initiating disapproval 

proceedings, the Commission shall issue 

an order approving or disapproving the 

proposed rule change not later than 180 

days after the date of publication of 

notice of filing of the proposed rule 

change. The Commission may extend 

the period for issuing an order 

approving or disapproving the proposed 

rule change, however, by not more than 

60 days if the Commission determines 

that a longer period is appropriate and 

publishes the reasons for such 

determination. The proposed rule 

change was published for notice and 

comment in the Federal Register on 

January 18, 2018. July 17, 2018, is 180 

days from that date, and September 15, 

2018, is 240 days from that date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

this proposed rule change. Accordingly, 

the Commission, pursuant to Section 

19(b)(2) of the Act,10 designates 

September 15, 2018, as the date by 

which the Commission shall either 

approve or disapprove the proposed 

rule change (File No. SR–CboeBZX– 

2018–001). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–14302 Filed 7–2–18; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

Interest Rates 

The Small Business Administration 

publishes an interest rate called the 

optional ‘‘peg’’ rate (13 CFR 120.214) on 

a quarterly basis. This rate is a weighted 

average cost of money to the 

government for maturities similar to the 

average SBA direct loan. This rate may 

be used as a base rate for guaranteed 

fluctuating interest rate SBA loans. This 

rate will be 2.875 percent for the July– 

September quarter of FY 2018. 

Pursuant to 13 CFR 120.921(b), the 

maximum legal interest rate for any 

third party lender’s commercial loan 


sradovich on DSK3GMQ082PROD with NOTICES