14576 Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices 

14The MSRB notes that purchasers may be 

subject to proprietary rights of third parties in 

information provided by such third parties that is 

made available through the purchase agreement. 15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(3). 

partially offset costs associated with 

operating the Primary Market and 

Continuing Disclosure Services of 

EMMA and producing and 

disseminating information products to 

purchasers. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The MSRB 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 Exchange Act since it 

will apply equally to all persons who 

choose to purchase 14 the Primary 

Market Disclosure Historical Product 

and the Continuing Disclosure 

Historical Product, and those who 

choose not to pay the charge may view 

the same information for free on the 

EMMA Web portal. 

C. Self-Regulatory Organization’s 

Statement on Comments Received on 

the Proposed Rule Change by Members, 

Participants, or Others 

Written comments were neither 

solicited nor received on the proposed 

rule change. 

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 (i) 

as the Commission may designate up to 

90 days of such date 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 Exchange 

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–MSRB–2012–02 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–MSRB–2012–02. 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 MSRB’s offices. 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–MSRB–2012–02 and should 

be submitted on or before April 2, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5907 Filed 3–9–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66520; File No. SR–CBOE– 

2012–021] 

Self-Regulatory Organizations; 

Chicago Board Options Exchange, 

Incorporated; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Make an Amendment 

Regarding the Administrative Fee 

Related to the Marketing Fee 

March 6, 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 March 1, 

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 Exchange has 

filed the proposal pursuant to Section 

19(b)(3)(A)(iii) of the Act 3 and Rule 

19b–4(f)(3) thereunder,4 which renders 

the proposal effective upon filing with 

the Commission. 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 make an 

amendment regarding the 

administrative fee related to the 

marketing fee. 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 


pmangrum on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices 14577 

5The Association is technically known as the 

DPM (Designated Primary Market-Maker) 

Association; however, its activities are not limited 

to assisting only DPM organizations. Through its 

business development activities, the Association 

seeks to bring order flow to CBOE for the benefit 

of all CBOE liquidity providers. 

6See Securities Exchange Act Release No. 56289 

(August 20, 2007), 72 FR 49030 (August 27, 2007) 

(SR–CBOE–2007–95). 

7 Id. 

8 Id. 

9 15 U.S.C. 78f(b). 

10 15 U.S.C. 78f(b)(4). 

11 15 U.S.C. 78s(b)(3)(A)(iii). 

12 17 C.F.R. 240.19b–4(f)(3). 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

In SR–CBOE–2007–95, the Exchange 

imposed an administrative fee of 0.45% 

of the Exchange’s marketing fee in order 

to offset the costs of administering the 

marketing fee program and also to 

provide funds to an association of 

members (now Trading Permit Holders) 

(the ‘‘Association’’) 5 for its costs and 

expenses in supporting CBOE’s 

marketing fee program and in seeking to 

bring flow to CBOE.6 In that filing, the 

Exchange stated that it intended to 

‘‘allocate each month approximately 

40% of the funds collected through the 

administrative fee to CBOE to offset 

CBOE’s overall costs in administering 

the (marketing fee) program; the balance 

(approximately 60%) collected by this 

fee would be allocated to the 

Association.’’ 7 The Exchange also noted 

that it intended to monitor the funds 

raised by the administrative fee, and 

may propose amendments to the fee as 

appropriate, so that the fee provides 

funds to the Association to cover its 

costs and expenses.8

In recent months, the amounts 

collected for the marketing fee have 

dropped, and as a result, the amount 

collected through the administrative fee 

has dropped as well. As such, the 

amount of the administrative fee 

allocated to the Association has also 

dropped, to a level below which the 

Association requires to operate 

effectively. At current collection levels 

for the administrative fee, the 

Association requires greater than 

approximately 60% of the 

administrative fee in order to continue 

to operate effectively. The Exchange 

therefore proposes to revise its previous 

statement that the Exchange intends to 

‘‘allocate each month approximately 

40% of the funds collected through the 

administrative fee to CBOE to offset 

CBOE’s overall costs in administering 

the (marketing fee) program’’ and 

allocate the remainder (approximately 

60%) to the Association. Instead, the 

Exchange hereby proposes to allocate to 

the Association the amount of the funds 

collected through the administrative fee 

that is necessary to effectively operate 

the Association (which may, in a given 

month, include all of the funds 

collected through the administrative 

fee), and allocate the remainder of the 

funds collected through the 

administrative fee to offset CBOE’s 

overall costs in administering the 

marketing fee program. The proposed 

possible re-allocations considered in 

this proposal will of course not affect 

the Exchange’s ability to continue to 

fund its regulatory services or engage in 

its self-regulatory responsibilities. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the Act 

and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

Section 6(b) of the Act.9 Specifically, 

the Exchange believes the proposed rule 

change is consistent with Section 6(b)(4) 

of the Act,10 which provides that 

Exchange rules may provide for the 

equitable allocation of reasonable dues, 

fees, and other charges among its 

Trading Permit Holders and other 

persons using its facilities. The 

proposed change is reasonable because 

there is no change to the actual amount 

of the administrative fee. The proposed 

change is equitable and not unfairly 

discriminatory because ensuring that 

the Association has enough funds to 

operate effectively will allow the 

Association to engage in business 

development activities to bring order 

flow to the Exchange. Such order flow 

provides greater liquidity and more 

trading opportunities for all market 

participants. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

CBOE does not believe that the 

proposed rule change will impose any 

burden on competition that is 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 neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The proposed rule change has become 

effective pursuant to Section 

19(b)(3)(A)(iii) of the Act 11 and 

subparagraph (f)(3) of Rule 19b–4 12

thereunder because it is concerned 

solely with the administration of the 

Exchange. 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–CBOE–2012–021 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–CBOE–2012–021. 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 


pmangrum on DSK3VPTVN1PROD with NOTICES
14578 Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Initial Payment is an obligation by either 

counterparty to make an upfront payment 

established at the time the contract is executed. See 

ICE Clear Credit Clearing Rules, Section 301(b). 

4The Commission has modified the text of the 

summaries prepared by ICC. 

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 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; 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–CBOE– 

2012–021 and should be submitted on 

or before April 2, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–5905 Filed 3–9–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66517; File No. SR–ICC– 

2012–02] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Provide for 

a T+1 Settlement of the Initial Payment 

Related to the CDS Contracts Cleared 

by ICE Clear Credit LLC 

March 6, 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 March 1, 

2012, the 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

ICC proposes rule amendments that 

are intended to modify the terms of each 

of the various CDS Contracts cleared by 

ICC (CDX.NA Untranched Contracts, 

Standard North American Corporate 

(‘‘SNAC’’) Single Name Contracts and 

Standard Emerging Sovereign (‘‘SES’’) 

Single Name Contracts) to make the 

Initial Payment 3 date the first business 

day immediately following the trade 

date, provided that with respect to CDS 

Contracts that are accepted for clearing 

after the trade date, the Initial Payment 

date will be the date that is the first 

business day following the date when 

the CDS Contract is accepted for 

clearing. 

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.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

As noted above, the proposed rule 

changes amend the timing of Initial 

Payments on a cleared CDS Contract. 

The Initial Payment under a CDS 

Contract is established at the time the 

contract is executed and may be payable 

from either the protection buyer to the 

protection seller or vice versa. Under 

the current ICC Rules (by way of the 

incorporated ISDA Credit Derivatives 

Definitions), and consistent with 

practice in the market for uncleared 

credit default swaps, the Initial Payment 

is required to be made on the third 

business day following the trade date 

(the execution date). ICC proposes to 

add the definition of Initial Payment 

Date to its Clearing Rules to provide 

instead that the Initial Payment is to be 

made on the first business day following 

the trade date (or, if the transaction is 

accepted for clearing after the trade 

date, the initial payment is to be made 

on the first business day following the 

date of acceptance for clearing). After 

consultation with the Buy-side, ICC 

believes that this change from ‘‘T+3’’ 

settlement to ‘‘T+1’’ settlement for the 

Initial Payment will facilitate customerrelated clearing. In addition, this change 

will improve margin efficiency (as 

margin requirements will no longer 

need to take into account the additional 

risk from a T+3 as opposed to a T+1 

settlement rule). 

The other proposed changes in the 

ICC Rules reflect updates to crossreferences and defined terms and 

similar drafting clarifications, and do 

not affect the substance of the ICC Rules 

or cleared products. 

(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–2012–02 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–2012–02. This file 

number should be included on the 


pmangrum on DSK3VPTVN1PROD with NOTICES