Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Notices 22623 

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

2 17 CFR 240.19b–4. 

3The Commission has modified the text of the 

descriptions prepared by ICC. 

By the Commission. 

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2012–9170 Filed 4–12–12; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66777; File No. SR–ICC– 

2012–04] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Add Rules 

Related to the Clearing of Emerging 

Markets Sovereign Index CDS 

April 10, 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 April 3, 

2012, 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.3

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 purpose of the proposed rule 

change is to adopt new rules that will 

provide the basis for ICC to clear 

additional credit default swap (‘‘CDS’’) 

contracts. Specifically, ICC is proposing 

to amend Chapter 26 of its rules to add 

Section 26C to provide for the clearance 

of the CDX Emerging Markets CDS 

contracts (‘‘CDX.EM Contracts’’), which 

reference an emerging market sovereign 

index. Upon Commission approval, ICC 

will list the five year tenor of the 

CDX.EM Series 14, 15, 16 and 17 

contracts. 

As discussed in more detail in Item 

II(A) below, Section 26C (CDX 

Untranched Emerging Markets) provides 

for the definitions and certain specific 

contract terms for cleared CDX.EM 

Contracts. A conforming change is also 

made to the definition of ‘‘Restructuring 

CDS Contract’’ in Section 26E (CDS 

Restructuring Rules) to encompass 

components of CDX.EM Contracts that 

are subject to a restructuring credit 

event. 

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 has identified CDX.EM Contracts 

as a product that has become 

increasingly important for market 

participants to manage risk and express 

views with respect to emerging market 

sovereign credit. ICC believes clearance 

of CDX.EM Contracts will facilitate the 

prompt and accurate settlement of 

swaps and contribute to the 

safeguarding of securities and funds 

associated with swap transactions. 

CDX.EM Contracts have similar terms 

to the CDX North American Index CDS 

contracts (‘‘CDX.NA Contracts’’) 

currently cleared by ICC and governed 

by Section 26A of the ICC rules. 

Accordingly, the proposed rules found 

in Section 26C largely mirror the ICC 

rules for CDX.NA Contracts in Section 

26A, with certain modifications that 

reflect the underlying reference entities 

(sovereign reference entities instead of 

corporate) and differences in terms and 

market conventions between CDX.EM 

Contracts and CDX.NA Contracts. The 

CDX.EM Contracts reference the 

CDX.EM Index, the current series of 

which consists of 15 emerging market 

sovereign entities: Argentina, 

Venezuela, Brazil, Malaysia, Colombia, 

Hungary, Indonesia, Panama, Peru, 

South Africa, the Philippines, Turkey, 

Russia, Ukraine and Mexico. CDX.EM 

Contracts, consistent with market 

convention and widely used standard 

terms documentation, can be triggered 

by credit events for failure to pay, 

restructuring and repudiation/ 

moratorium (by contrast to the credit 

events of failure to pay and bankruptcy 

applicable to the CDX.NA Contracts). 

CDX.EM Contracts will only be 

denominated in U.S. dollars. 

Rule 26C–102 (Definitions) sets forth 

the definitions used for the CDX.EM 

Contract Rules. An ‘‘Eligible CDX.EM 

Untranched Index’’ is defined as ‘‘each 

particular series and version of a 

CDX.EM index or sub-index, as 

published by the CDX.EM Untranched 

Publisher, included from time to time in 

the List of Eligible CDX.EM Untranched 

Indexes,’’ which is a list maintained, 

updated and published from time to 

time by the ICC board of directors or its 

designee, containing certain specified 

information with respect to each index. 

‘‘CDX.EM Untranched Terms 

Supplement’’ refers to the market 

standard form of documentation used 

for credit default swaps on the CDX.EM 

index, which is incorporated by 

reference into the contract specifications 

in Chapter 26C. The remaining 

definitions are substantially the same as 

the definitions found in ICC Section 

26A, other than certain conforming 

changes. 

Specifically, Rules 26C–309 

(Acceptance of CDX.EM Untranched 

Contract), 26C–315 (Terms of the 

Cleared CDX.EM Untranched Contract), 

and 26C–316 (Updating Index Version 

of Fungible Contracts After a Credit 

Event or a Succession Event; Updating 

Relevant Untranched Standard Terms 

Supplement) reflect or incorporate the 

basic contract specifications for 

CDX.EM Contracts and are substantially 

the same as under ICC Section 26A for 

CDX.NA Contracts. In addition to 

various non-substantive conforming 

changes, proposed Rule 26C–317 (Terms 

of CDX.EM Untranched Contracts) 

differs from the corresponding Rule 

26A–317 to reflect the fact that 

restructuring and repudiation/ 

moratorium are credit events for the 

CDX.EM Contract. (CDX.NA Contracts 

currently cleared by ICC do not use the 

restructuring and repudiation/ 

moratorium credit event.) 

In addition, a conforming change is 

made to the definition of ‘‘Restructuring 

CDS Contract’’ in Section 26E (CDS 

Restructuring Rules) to address 

components of CDX.EM Contracts that 

become subject to a restructuring credit 

event. The treatment of such 

restructuring credit events for CDX.EM 

Contracts will thus be as set forth in 

existing Section 26E of the Rules. 

ICC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 

and the rules and regulations 

thereunder applicable to it. ICC believes 

that the clearance of CDX.EM Contracts 

will facilitate the prompt and accurate 

settlement of swaps and contribute to 

the safeguarding of securities and funds 

associated with swap transactions. 


emcdonald on DSK29S0YB1PROD with NOTICES
22624 Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Notices 

4 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

(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 rulecomments@sec.gov. Please include File 

Number SR–ICC–2012–04 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–2012–04. 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/ 

040312b_ICEClearCredit.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–2012–04 and should 

be submitted on or before May 7, 2012. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.4

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–9010 Filed 4–13–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66776; File No. SR– 

NYSEAmex–2012–20] 

Self-Regulatory Organizations; NYSE 

Amex LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Implementing 

Amendments to Its Price List To Raise 

the Supplemental Liquidity Provider 

Rebate and Raise the NYSE Crossing 

Session II Rate and Fee Cap 

April 10, 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 

29, 2012, NYSE Amex LLC (‘‘NYSE 

Amex’’ or the ‘‘Exchange’’) 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 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 its 

Price List to raise the Supplemental 

Liquidity Provider (‘‘SLP’’) rebate and 

raise the NYSE Crossing Session II 

(‘‘NYSE CSII’’) rate and fee cap. The text 

of the proposed rule change is available 

at the Exchange, the Commission’s 

Public Reference Room, and 

www.nyse.com. 

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 

self-regulatory organization 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 those 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 parts 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 its 

Price List to raise the SLP rebate and 

raise the NYSE CSII rate and fee cap. 

The Exchange proposes to raise the 

SLP rebate from $0.0027 to $0.0032 per 

share per transaction for SLPs that add 

liquidity to the Exchange in securities 

with a per share price of $1.00 or more 

if the SLP meets the 5% average or more 

quoting requirement in an assigned 

security pursuant to NYSE Amex 

Equities Rule 107B. 

The Exchange also proposes to raise 

the NYSE CSII rate from $0.0001 to 

$0.0002 per transaction and raise the fee 

cap from $50,000 to $100,000 per month 

per member organization for NYSE 

Amex Equities listed securities and, 

separately, NYSE Amex Equities traded 

securities. 

The Exchange proposes to make the 

rule change operative on April 1, 2012. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Securities Exchange 


emcdonald on DSK29S0YB1PROD with NOTICES