13678 Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Notices 

15 15 U.S.C. 78f(b)(5). 

16 15 U.S.C. 78s(b)(3)(A). 

17 17 CFR 240.19b–4(f)(6). In addition, Rule 19b4(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 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 requirement. 

18For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

19 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

rules of the Exchange. The Exchange 

also believes that this filing furthers the 

objectives of Section 6(b)(5) of the Act 15

in that it is designed to facilitate 

transactions in securities, to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and in general, to protect 

investors and the public interest. 

Additionally, the Exchange notes that 

the provisions of the BOX LLC 

Agreement, previously approved by the 

Commission, provide a framework for 

addressing the Acquisition. 

Accordingly, the Exchange believes the 

Acquisition does not present any novel 

issues that have not been anticipated 

and addressed by the BOX LLC 

Agreement. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate 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 

The Exchange has neither solicited 

nor received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not significantly affect the 

protection of investors or the public 

interest, does not impose any significant 

burden on competition, and, by its 

terms, does not become operative for 30 

days from the date on which it was 

filed, or such shorter time as the 

Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 16 and Rule 19b4(f)(6) thereunder.17

The Exchange has requested that the 

Commission waive the 30-day operative 

delay. The Commission believes that 

waiver of the operative delay is 

consistent with the protection of 

investors and the public interest 

because the Acquisition does not 

present any novel issues that have not 

been anticipated and addressed by the 

BOX LLC Agreement. Therefore, the 

Commission designates the proposal 

operative upon filing.18

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. 

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 rulecomments@sec.gov. Please include File 

Number SR–BX–2012–014 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–BX–2012–014. 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 

a.m. and 3 p.m. Copies of such filing 

also will be available for inspection and 

copying at the principal office of the 

Exchange. 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 

publicly available. All submissions 

should refer to File Number SR–BX– 

2012–014, and should be submitted on 

or before March 28, 2012. 

For the Commission, by the Division 

of Trading and Markets, pursuant to 

delegated authority.19

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5473 Filed 3–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66500; File No. SR–ICC– 

2012–01] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule To Provide That One 

Hundred Percent (100%) of the Initial 

Margin Requirement for Client-related 

Positions Cleared in a Clearing 

Participant’s Customer Account Origin 

May Be Satisfied by a Clearing 

Participant Utilizing US Treasuries 

March 1, 2012. 

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 

17, 2012, ICE Clear Credit LLC (‘‘ICC’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule changes 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. 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Notices 13679 

3The Commission has modified the text of the 

summaries prepared by ICC. 

4 ICC applies haircuts to US Treasuries to mitigate 

liquidity risk. The current haircuts are: 1.25% for 

US Treasuries maturing in less than one year, 2.5% 

for US Treasuries maturing in one to five years, 

5.0% for US Treasuries maturing in five to ten 

years, and 10.0% for US Treasuries maturing in 

more than ten years (available at: https:// 

www.theice.com/publicdocs/clear_credit/ 

ICE_Clear_Credit_Collateral_Management.pdf). 

5Currently at least 45% of house initial margin 

and the guaranty fund requirements must be posted 

in US dollar cash and the ICC contribution to the 

guaranty fund is in US dollar cash. Additionally, 

ICC requires all members to meet and maintain 

their minimum guaranty fund requirement deposit 

of $20 million in US dollar cash regardless of the 

amount of each member’s total guaranty fund 

requirement. In addition, in the event of immediate 

liquidity needs in the event of a member’s default, 

ICC may borrow (through IntercontinentalExchange, 

Inc.) up to an aggregate principal amount of $100 

million against IntercontinentalExchange, Inc.’s 

senior unsecured revolving credit facility. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

ICC proposes rule amendments that 

will allow clearing participants to 

satisfy the initial margin-related 

liquidity requirements for client-related 

positions cleared in a clearing 

participant’s customer account origin by 

posting US Treasuries. 

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.3

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The proposed rule changes provide 

that one hundred percent (100%) of the 

initial margin requirement for clientrelated positions cleared in a clearing 

participant’s customer account origin 

may be satisfied by the clearing 

participant utilizing US Treasuries.4

The ICC rules currently provide that 

for all accounts at least forty-five 

percent (45%) of initial margin must be 

posted in US dollar cash. The next 

twenty percent (20%) must be posted in 

US dollar cash or US Treasuries. The 

remaining thirty-five percent (35%) 

must be posted in US dollar cash or US 

Treasuries or G7 cash. 

The proposed rules provide that at 

least sixty-five percent (65%) of the 

initial margin requirement for clientrelated positions cleared in a clearing 

participant’s customer account origin 

must be posted in US dollar 

denominated assets (US dollar cash 

and/or US Treasuries) and the 

remaining thirty-five percent (35%) 

must be posted in US dollar cash or US 

Treasuries or G7 cash. Again, the 

proposed changes will apply only to the 

initial margin liquidity requirements 

associated with the initial margin 

requirement for client-related positions 

cleared in a clearing participant’s 

customer account origin. The proposed 

changes will not apply to the ICC 

liquidity requirements for house initial 

margin and the guaranty fund. 

The proposed rule changes are 

intended to facilitate client-related 

clearing. Customers of ICC’s clearing 

participants have indicated that the 

current US dollar cash liquidity 

requirement is too restrictive and serves 

as a barrier to clearing. The proposed 

rule changes are consistent with the 

recently promulgated CFTC regulation 

39.11(e)(1) that provides that the CFTC’s 

‘‘cash’’ liquidity requirement includes 

US Treasury obligations. ICC routinely 

monitors its potential liquidity needs 

and reevaluates its liquidity 

requirements to ensure that it has 

sufficient intraday liquidity to manage 

cash payments in the event of a member 

default.5

(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. 

(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 the 

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 

rule-comments@sec.gov. Please include 

File Number SR–ICC–2012–01 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–2012–01. 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 Section, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filings 

will also be available for inspection and 

copying at the principal office of ICC 

and on ICC’s Web site at https:// 

www.theice.com/publicdocs/ 

regulatory_filings/ 

ICEClearCredit_021712.pdf. 

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–2012–01 and should 


srobinson on DSK4SPTVN1PROD with NOTICES
13680 Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Notices 

6 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. 66159 

(January 13, 2012), 77 FR 3021. 

4See Letter from David A. Donohoe, Jr., Donohoe 

Advisory Associates LLC, to Elizabeth M. Murphy, 

Secretary, Commission, dated February 10, 2012. 

5 15 U.S.C. 78s(b)(2). 

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

7 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3See Chicago Stock Exchange, Inc. Fee Schedule, 

Section E(1). 

be submitted on or before March 28, 

2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.6

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5472 Filed 3–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66499; File No. SR– 

NASDAQ–2012–002] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Designation of a Longer Period for 

Commission Action on Proposed Rule 

Change To Adopt an Alternative to the 

$4 Initial Listing Bid Price Requirement 

for the Nasdaq Capital Market of Either 

$2 or $3, if Certain Other Listing 

Requirements Are Met 

March 1, 2012. 

On January 3, 2012, The NASDAQ 

Stock Market LLC (‘‘Exchange’’ or 

‘‘Nasdaq’’) 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 

proposal to adopt an alternative to the 

$4 minimum bid price initial listing 

requirement for the Nasdaq Capital 

Market of either $2 or $3, if certain other 

listing requirements are met. The 

proposed rule change was published for 

comment in the Federal Register on 

January 20, 2012.3 The Commission 

received one comment on the proposal.4

Section 19(b)(2) of the Act 5 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 for this filing 

is March 5, 2012. 

The Commission is extending the 45- 

day time period for Commission action 

on the proposed rule change. The 

Commission finds that it is appropriate 

to designate a longer period to take 

action on the proposed rule change so 

that it has sufficient time to consider the 

Exchange’s proposal and the comment 

received. The Exchange’s proposal 

would, among other things, allow a 

company’s primary equity securities to 

be initially listed on the Nasdaq Capital 

Market if those securities have a 

minimum bid price of $2 or $3 per share 

and certain other listing requirements 

are met. 

Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,6

designates April 19, 2012, as the date by 

which the Commission should either 

approve or disapprove or institute 

proceedings to determine whether to 

disapprove the proposed rule change. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5471 Filed 3–6–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66498; File No. SR–CBOE– 

2012–020] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the CBOE 

Stock Exchange Fees Schedule 

March 1, 2012. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on February 

22, 2012, the Chicago Board Options 

Exchange, Incorporated (the ‘‘Exchange’’ 

or ‘‘CBOE’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

CBOE Stock Exchange (‘‘CBSX’’) Fees 

Schedule. The text of the proposed rule 

change is available on the Exchange’s 

Web site (http://www.cboe.com/ 

AboutCBOE/ 

CBOELegalRegulatoryHome.aspx), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange 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. The 

Exchange 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 

1. Purpose 

The Exchange proposes to amend 

CBSX Maker and Taker fees for 

competitive and business purposes. 

First, CBSX proposes to increase the 

Maker fee for transactions in securities 

priced $1 or greater by $0.0001 per 

share, to $0.0018. CBSX also proposes to 

increase the Maker fee for transactions 

in securities priced $1 or greater 

executed by a market participant that 

adds two million or more shares of 

liquidity that day by $0.0001 per share, 

to $0.0016. 

The Exchange also proposes to amend 

Maker and Taker fees for transactions in 

securities priced less than $1. The 

Exchange proposes to assess no Maker 

fee for such transactions in order to 

attract liquidity. The Exchange also 

proposes to increase the Taker fee for 

transactions in securities priced less 

than $1 to 0.30% of the dollar value of 

the transaction in order to normalize the 

Taker fee to equivalent offerings by 

other exchanges.3

The proposed changes are to take 

effect March 1, 2012. 


srobinson on DSK4SPTVN1PROD with NOTICES