Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Notices 24543 

release of radioactive material than the 

alternative to the proposed action. 

Therefore, the exemption is in the 

public interest. 

Environmental Consideration 

The NRC staff also considered in the 

review of this exemption request 

whether there would be any significant 

environmental impacts associated with 

the exemption. For this proposed action, 

the NRC staff performed an 

environmental assessment pursuant to 

10 CFR 51.30. The proposed action is 

the approval of a request for a one-time 

exemption from the requirements of 10 

CFR 72.212(b)(3) and the portion of 

72.212(b)(11), which requires 

compliance with the terms, conditions, 

and specifications of a CoC, but only to 

the extent necessary to allow Dominion 

to store the seven DSCs in the current 

as-loaded configuration at the North 

Anna Power Station ISFSI. 

The NRC staff determined that the 

proposed action will not significantly 

impact the quality of the human 

environment. The NRC staff concludes 

that there are no changes being made in 

the types or amounts of any radiological 

effluents that may be released offsite, 

and there is no significant increase in 

occupational or public radiation 

exposure as a result of the proposed 

action. In addition the proposed action 

only affects the requirements associated 

with the fuel assemblies already loaded 

into the casks and does not affect nonradiological plant effluents, or any other 

aspects of the environment. The 

Environmental Assessment and the 

Finding of No Significant Impact are 

documented in the Federal Register (77 

FR 20438, dated April 4, 2012). 

4.0 Conclusion 

Based on the foregoing 

considerations, the NRC has 

determined, pursuant to 10 CFR 72.7, 

that the exemption is authorized by law, 

will not endanger life or property or the 

common defense and security, and is 

otherwise in the public interest. 

Therefore, the NRC grants Dominion a 

one-time exemption from the 

requirements in 10 CFR 72.212(b)(3) and 

from the portion of 10 CFR 72.212(b)(11) 

that states the licensee shall comply 

with the terms, conditions, and 

specifications of the CoC for TN 

NUHOMS® HD dry cask storage system 

with DSCs serial numbers DOM– 

32PTH–004–C, -005–C,t -007–C, -010–C, 

-013–C, -019–C and GBC–32PTH–011–C 

at the North Anna Power Station ISFSI. 

This exemption is effective upon 

issuance. 

Dated at Rockville, Maryland, this 12th day 

of April 2012. 

For the Nuclear Regulatory Commission. 

Douglas Weaver, 

Deputy Director, Division of Spent Fuel 

Storage and Transportation, Office of Nuclear 

Material Safety and Safeguards. 

[FR Doc. 2012–9803 Filed 4–23–12; 8:45 am] 

BILLING CODE 7590–01–P 

NUCLEAR REGULATORY 

COMMISSION 

[NRC–2012–0002] 

Sunshine Act Meeting Noice 

AGENCY HOLDING THE MEETINGS: Nuclear 

Regulatory Commission. 

DATE: Weeks of April 23, 30, May 7, 14, 

21, 28, 2012. 

PLACE: Commissioners’ Conference 

Room, 11555 Rockville Pike, Rockville, 

Maryland. 

STATUS: Public and Closed. 

Week of April 23, 2012 

Tuesday, April 24, 2012 

9 a.m. Briefing on Part 35 Medical 

Events Definitions—Permanent Implant 

Brachytherapy (Public Meeting) 

(Contact: Michael Fuller, 301–415– 

0520). 

This meeting will be webcast live at 

the Web address—www.nrc.gov. 

Week of April 30, 2012—Tentative 

Monday, April 30, 2012 

9:30 a.m. Briefing on Human Capital 

and Equal Employment Opportunity 

(EEO) (Public Meeting) (Contact: Kristin 

Davis, 301–492–2208). 

This meeting will be webcast live at 

the Web address—www.nrc.gov. 

Week of May 7, 2012—Tentative 

Friday, May 11, 2012 

9 a.m. Briefing on Potential Medical 

Isotope Production Licensing Actions 

(Public Meeting) (Contact: Jessie 

Quichocho, 301–415–0209). 

This meeting will be webcast live at 

the Web address—www.nrc.gov. 

Week of May 14, 2012—Tentative 

There are no meetings scheduled for 

the week of May 14, 2012. 

Week of May 21, 2012—Tentative 

There are no meetings scheduled for 

the week of May 21, 2012. 

Week of May 28, 2012—Tentative 

Friday, June 1, 2012 

9 a.m. Briefing on Results of the 

Agency Action Review Meeting (AARM) 

(Public Meeting) (Contact: Rani 

Franovich, 301–415–1868). 

This meeting will be webcast live at 

the Web address—www.nrc.gov. 

The schedule for Commission 

meetings is subject to change on short 

notice. To verify the status of meetings, 

call (recording)—301–415–1292. 

Contact person for more information: 

Rochelle Bavol, 301–415–1651. 

* * * * * 

The NRC Commission Meeting 

Schedule can be found on the Internet 

at: http://www.nrc.gov/public-involve/ 

public-meetings/schedule.html. 

* * * * * 

The NRC provides reasonable 

accommodation to individuals with 

disabilities where appropriate. If you 

need a reasonable accommodation to 

participate in these public meetings, or 

need this meeting notice or the 

transcript or other information from the 

public meetings in another format (e.g., 

braille, large print), please notify Bill 

Dosch, Chief, Work Life and Benefits 

Branch, at 301–415–6200, TDD: 301– 

415–2100, or by email at 

william.dosch@nrc.gov. Determinations 

on requests for reasonable 

accommodation will be made on a caseby-case basis. 

* * * * * 

This notice is distributed 

electronically to subscribers. If you no 

longer wish to receive it, or would like 

to be added to the distribution, please 

contact the Office of the Secretary, 

Washington, DC 20555 (301–415–1969), 

or send an email to 

darlene.wright@nrc.gov. 

Dated: April 19, 2012. 

Rochelle C. Bavol, 

Policy Coordinator, Office of the Secretary. 

[FR Doc. 2012–9970 Filed 4–20–12; 4:15 pm] 

BILLING CODE 7590–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Investment Company Act Release No. 

30036; 812–13767] 

Beverly Hills Bancorp Inc.; Notice of 

Application 

April 18, 2012. 

AGENCY: Securities and Exchange 

Commission (the ‘‘Commission’’). 

ACTION: Notice of application for an 

order under sections 6(c) and 6(e) of the 

Investment Company Act of 1940 

(‘‘Act’’) for an exemption from all 

provisions of the Act, except sections 9, 

17(a), 17(d), 17(e), 17(f), 36 through 45, 

and 47 through 51 of the Act and the 

rules thereunder, modified as discussed 

in the application. 

mstockstill on DSK4VPTVN1PROD with NOTICES

24544 Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Notices 

1The 1999 Plan expired on September 30, 2009. 

2 During the period when interest payments are 

being deferred, interest continues to accrue, 

compounding quarterly, at an annual rate equal to 

the interest in effect for such period and must be 

paid at the end of the deferral period. 

Summary of Application: The 

requested order would exempt the 

applicant, Beverly Hills Bancorp Inc. 

(‘‘BHBC’’), from certain provisions of 

the Act until the earlier of one year from 

the date of the requested order or such 

time as BHBC would no longer be 

required to register as an investment 

company under the Act. 

Filing Dates: The application was 

filed on April 22, 2010, and amended on 

October 18, 2010, and November 2, 

2011. 

Hearing or Notification of Hearing: An 

order granting the application will be 

issued unless the Commission orders a 

hearing. Interested persons may request 

a hearing by writing to the 

Commission’s Secretary and serving 

applicants with a copy of the request, 

personally or by mail. Hearing requests 

should be received by the Commission 

by 5:30 p.m. on May 14, 2012 and 

should be accompanied by proof of 

service on applicants, in the form of an 

affidavit or, for lawyers, a certificate of 

service. Hearing requests should state 

the nature of the writer’s interest, the 

reason for the request, and the issues 

contested. Persons who wish to be 

notified of a hearing may request 

notification by writing to the 

Commission’s Secretary. 

ADDRESSES: Secretary, U.S. Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

Applicant, Post Office Box 8280, 

Calabasas, CA 91372. 

FOR FURTHER INFORMATION CONTACT: 

Emerson S. Davis, Senior Counsel, at 

(202) 551–6868, or May Kay Frech, 

Branch Chief, at (202) 551–6821 

(Division of Investment Management, 

Office of Investment Company 

Regulation). 

SUPPLEMENTARY INFORMATION: The 

following is a summary of the 

application. The complete application 

may be obtained via the Commission’s 

Web site by searching for the file 

number, or an applicant using the 

Company name box, at http:// 

www.sec.gov/search/search.htm or by 

calling (202) 551–8090. 

Applicant’s Representations: 

1. BHBC was a bank holding company 

that conducted its banking and lending 

operations through its wholly-owned 

subsidiary First Bank of Beverly Hills, a 

California banking corporation (the 

‘‘Bank’’). From its incorporation in 1996 

until April 24, 2009, the Bank was the 

source of substantially all of BHBC’s 

revenues and income. The Bank 

sustained substantial losses in its real 

estate loan and mortgage-backed 

securities portfolios, and as of December 

31, 2008, it no longer met applicable 

regulatory capital requirements. As a 

result, on February 13, 2009, the Federal 

Deposit Insurance Corporation (‘‘FDIC’’) 

and the California Department of 

Financial Institutions (the ‘‘CDFI’’) 

issued an order requiring the Bank to 

increase its regulatory capital within 60 

days. Because the Bank was unable to 

increase its regulatory capital within the 

specified time period, on April 24, 2009, 

the CDFI closed the Bank and the FDIC 

was appointed as the Bank’s receiver. 

2. BHBC has one class of common 

stock outstanding, which it voluntarily 

delisted from the NASDAQ Global 

Select Market on February 12, 2009. On 

February 19, 2009, BHBC deregistered 

its common stock under Section 12(g) of 

the Securities Exchange Act of 1934, as 

amended (the ‘‘Exchange Act’’), and on 

March 13, 2009, its reporting obligations 

under Section 15(d) of the Exchange Act 

were suspended. As such, BHBC is no 

longer subject to the reporting 

requirements of the Exchange Act and 

its common stock is traded on the pink 

sheets. As of September 30, 2011, BHBC 

had 78 holders of record. 

3. BHBC has options outstanding 

under two equity incentive plans, the 

Amended and Restated 1999 Equity 

Participation Plan of Wilshire Financial 

Services Group Inc. (the ‘‘1999 Plan’’) 

and the 2002 Equity Participation Plan 

(the ‘‘2002 Plan,’’ and together with the 

1999 Plan, the ‘‘Plans’’). All outstanding 

awards under the Plans were granted 

prior to the FDIC’s appointment as 

receiver for the Bank. As of September 

30, 2011, there were options 

outstanding under the 1999 Plan to 

purchase 32,667 shares of BHBC 

common stock, all of which were held 

by one director of BHBC.1 As of 

September 30, 2011, the only options 

outstanding under the 2002 Plan were 

options to purchase 137,333 shares of 

BHBC common stock held by four 

individuals, each of whom is a director 

and/or officer of BHBC. BHBC will not 

issue any additional awards under the 

2002 Plan. In addition, BHBC’s four 

directors have stock appreciation rights 

(SARs) with respect to 120,000 shares of 

common stock. 

4. As of September 30, 2011, on a 

consolidated basis, for financial 

reporting purposes BHBC has assets of 

$11.9 million, liabilities of $38.4 

million, and a stockholders’ equity of 

negative $26.5 million. On a nonconsolidated basis, BHBC’s assets total 

approximately $10.3 million, and since 

the receivership of the Bank, these 

assets have consisted almost exclusively 

of checking accounts at commercial 

banks and shares of the Vanguard ShortTerm Investment Grade Fund (Admiral 

Shares) (the ‘‘Vanguard Fund’’), which 

BHBC has since liquidated and invested 

the proceeds in Permitted Securities (as 

defined below). 

5. BHBC has several direct or indirect 

wholly owned subsidiaries, none of 

which has any ongoing business or 

operations. As of September 30, 2011, 

the following assets were held by BHBC 

subsidiaries: (i) Wilshire Acquisitions 

Corporation (‘‘Wilshire Asquisitions’’) 

has assets with a book value of $151,732 

consisting of accrued interest and 

prepaid expenses related to a subsidiary 

trust, (ii) WFC Inc. has assets with a 

book value of $377,250 consisting of 

approximately 19 small consumer and 

residential mortgage loans, cash, and 

prepaid expenses, and (iii) BH 

Commercial Capital I, Inc. has assets 

with a book value of $1,084,799 

consisting of two secured commercial 

real estate loans (collectively, the 

‘‘Subsidiary Assets’’). In addition, BHBC 

also either directly or indirectly owns 

the common securities of three 

subsidiary trusts that were formed in 

connection with offerings of trust 

preferred securities in which the trust 

subsidiaries issued their common 

securities to BHBC or Wilshire 

Acquisitions and their preferred 

securities to third party investors. The 

subsidiary trusts then loaned all the 

proceeds of the sale of trust preferred 

securities to BHBC or Wilshire 

Acquisitions in exchange for junior 

subordinated debentures (the 

‘‘Subordinated Debentures’’). The 

subsidiary trusts have no assets other 

than the Subordinated Debentures. 

6. BHBC’s liabilities consist 

principally of $25.8 million of the 

Subordinated Debentures issued to its 

two direct trust subsidiaries and $10.3 

million of Subordinated Debentures 

issued to its indirect trust subsidiary. In 

the aggregate, interest in an approximate 

amount of $900,000 accrues on a yearly 

basis pursuant to these three series of 

Subordinated Debentures. BHBC states 

that there is no public market for the 

Subordinated Debentures or the trust 

preferred securities. Under the terms of 

the Subordinated Debentures, BHBC 

may defer interest payments for up to 20 

consecutive quarters.2 On January 29, 

2009, BHBC elected to exercise this 

right and no payments are due under 

the Subordinated Debentures until 2014. 

7. BHBC states that it and its current 

and former directors and officers are 

subject to actual and potential 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Notices 24545 

contingent liabilities of uncertain 

amounts related to claims associated 

with its former operations, as well as 

regulatory and stockholder claims in 

connection with the failure of the Bank. 

When the Bank was closed and put into 

receivership with the FDIC, the FDIC 

became successor to all of the Bank’s 

claims, including claims against BHBC 

and the current or former officers and 

directors of BHBC and the Bank, for 

failure to maintain the net worth of the 

Bank, gross negligence and breach of 

fiduciary duty. BHBC states that in 

addition to any claims made directly 

against it, BHBC is subject to 

indemnification and expense 

obligations in connection with various 

actions brought against its current and 

former directors, officers, employees or 

agents. 

8. Since the Bank was placed into 

receivership, BHBC has had no active 

business or operations. Within several 

months of the receivership, BHBC 

terminated all employees, and since that 

time has paid two consultants on an 

hourly basis primarily for 

administrative and accounting services. 

BHBC does not maintain an office and 

is managed by its four member board of 

directors, which has considered various 

alternatives, including liquidation and 

acquisition of an operating business, 

while preserving its assets. BHBC states 

that because of its financial condition 

and contingent liabilities, pursuing 

these courses of action has not been 

feasible. 

Applicant’s Legal Analysis 

1. Section 3(a)(1)(A) of the Act defines 

an investment company as any issuer 

who ‘‘is or holds itself out as being 

engaged primarily * * * in the business 

of investing, reinvesting or trading in 

securities.’’ Section 3(a)(1)(C) of the Act 

further defines an investment company 

as an issuer who is engaged in the 

business of investing in securities that 

have a value in excess of 40% of the 

issuer’s total assets (excluding 

government securities and cash). 

2. Section 6(c) of the Act provides that 

the Commission may exempt any person 

from any provision of the Act if such 

exemption is necessary or appropriate 

in the public interest and consistent 

with the protection of investors and the 

purposes fairly intended by the policy 

and provisions of the Act. Section 6(e) 

provides that, in connection with any 

order exempting an investment 

company from any provision of section 

7, certain provisions of the Act, as 

specified by the Commission, shall 

apply to the company and other persons 

dealing with the company, as if such 

company were a registered investment 

company. 

3. BHBC acknowledges that it may be 

deemed to fall within one of the Act’s 

definitions of an investment company. 

Accordingly, BHBC requests an order of 

the Commission pursuant to sections 

6(c) and 6(e) of the Act exempting it 

from all provisions of the Act, subject to 

certain exceptions described below. 

BHBC requests an exemption until the 

earlier of one year from the date of the 

requested order or such time as it would 

no longer be required to register as an 

investment company under the Act. 

During the term of the proposed 

exemption, BHBC states that it will 

comply with sections 9, 17(a), 17(d), 

17(e), 17(f), 36 through 45, and 47 

through 51 of the Act and the rules 

thereunder, subject to certain 

modifications described in the 

application. 

4. BHBC requests exemptive relief to 

the extent necessary to permit it to hold 

certain types of instruments that may be 

considered ‘‘securities’’, as defined in 

section 2(a)(36) under the Act, such as 

short-term U.S. government securities, 

certificates of deposit and deposit 

accounts with banks that are insured by 

the FDIC, commercial paper rated 

A–1/P–1, shares of registered money 

market funds, and any instruments that 

are eligible for investment by money 

market funds consistent with rule 2a–7 

under the Act (collectively, ‘‘Permitted 

Securities’’) without being required to 

register as an investment company 

under the Act. BHBC requests this relief 

in order to permit it to preserve the 

value of its assets for the benefit of its 

security holders, and submits that this 

relief is necessary and appropriate for 

the public interest. 

5. In determining whether to grant 

relief for a company in an extended 

transition period, the following factors 

are considered: (a) Whether the failure 

of the company to become primarily 

engaged in a non-investment business or 

excepted business or to liquidate within 

one year was due to factors beyond its 

control; (b) whether the company’s 

officers and employees during that 

period tried, in good faith, to effect the 

company’s investment of its assets in a 

non-investment business or excepted 

business or to cause the liquidation of 

the company; and (c) whether the 

company invested in securities solely to 

preserve the value of its assets. BHBC 

believes that it meets these criteria. 

6. BHBC believes its failure to become 

primarily engaged in a non-investment 

business or to liquidate within a year 

following the receivership of the Bank is 

due to factors beyond its control. The 

board of directors of BHBC has regularly 

considered the feasibility of liquidating 

or engaging in an operating noninvestment business and concluded that 

it is not feasible to commence or acquire 

a non-investment business or liquidate 

as a result of BHBC’s negative net worth 

and the uncertainties associated with 

potential litigation and regulatory 

claims. BHBC states that the contingent 

liabilities make it impossible to 

liquidate BHBC and distribute its assets 

to creditors and make it imprudent to 

utilize any substantial part of its assets 

in an operating business. BHBC states 

that these circumstances are unlikely to 

change over the requested one-year 

period in light of the nature of the actual 

and contingent liabilities. BHBC states 

that it has invested its liquid assets 

solely to preserve the value of its assets 

and has invested only in bank checking 

accounts and Permitted Securities after 

liquidating the Vanguard Fund. BHBC 

does not believe its current ownership 

of certain loans acquired prior to its 

receivership is inconsistent with its 

purpose of preserving the value of its 

assets for the benefit of its security 

holders. BHBC thus believes that the 

public interest will be best served by 

permitting it to hold its liquid assets in 

Permitted Securities while its liabilities 

are resolved. 

Applicant’s Conditions 

Applicant agrees that the requested 

order will be subject to the following 

conditions: 

1. BHBC will not purchase or 

otherwise acquire any securities other 

than Permitted Securities, except that 

BHBC may acquire equity securities of 

an issuer that is not an ‘‘investment 

company’’ as defined in section 3(a) of 

the Act or is relying on an exclusion 

from the definition of ‘‘investment 

company’’ under section 3(c) of the Act 

other than section 3(c)(1) or 3(c)(7), in 

connection with the acquisition of an 

operating business as evidenced by a 

resolution approved by BHBC’s board of 

directors. BHBC may continue to hold 

the Subsidiary Assets. 

2. BHBC will not hold itself out as 

being engaged in the business of 

investing, reinvesting, owning, holding, 

or trading in securities. 

3. BHBC will not make any primary 

or secondary public offerings of its 

securities, and it will notify its 

stockholders that an exemptive order 

has been granted pursuant to sections 

6(c) and 6(e) of the Act and that BHBC 

and other persons, in their transactions 

and relations with BHBC, are subject to 

sections 9, 17(a), 17(d), 17(e), 17(f), 36 

through 45, and 47 through 51 of the 

Act, and the rules thereunder, as if 

BHBC were a registered investment 

mstockstill on DSK4VPTVN1PROD with NOTICES

24546 Federal Register / Vol. 77, No. 79 / Tuesday, April 24, 2012 / Notices 

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

2Securities Exchange Act Release No. 34–66500 

(March 1, 2012), 77 FR 13678 (March 7, 2012). 

3 ICC applies haircuts to US Treasuries to mitigate 

liquidity risk. The haircuts as of April 1, 2012 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). 

4Currently 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. 

company, except as permitted by the 

order requested hereby. 

4. Notwithstanding sections 17(a) and 

17(d) of the Act, an affiliated person (as 

defined in section 2(a)(3) of the Act) of 

BHBC may engage in a transaction that 

otherwise would be prohibited by these 

sections with BHBC: 

(a) If such proposed transaction is first 

approved by a bankruptcy court on the 

basis that (i) the terms thereof, including 

the consideration to be paid or received, 

are reasonable and fair to BHBC, and (ii) 

the participation of BHBC in the 

proposed transaction will not be on a 

basis less advantageous to BHBC than 

that of other participants; and 

(b) In connection with each such 

transaction, BHBC shall inform the 

bankruptcy court of: (i) The identity of 

all of its affiliated persons who are 

parties to, or have a direct or indirect 

financial interest in, the transaction; (ii) 

the nature of the affiliation; and (iii) the 

financial interests of such persons in the 

transaction. 

For the Commission, by the Division of 

Investment Management, pursuant to 

delegated authority. 

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–9772 Filed 4–23–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting; Notice 

Notice is hereby given, pursuant to 

the provisions of the Government in the 

Sunshine Act, Public Law 94–409, that 

the Securities and Exchange 

Commission will hold a Closed Meeting 

on Thursday, April 26, 2012 at 2 p.m. 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the Closed Meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

The General Counsel of the 

Commission, or his designee, has 

certified that, in his opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (7), 9(B) and (10) 

and 17 CFR 200.402(a)(3), (5), (7), 9(ii) 

and (10), permit consideration of the 

scheduled matters at the Closed 

Meeting. 

Commissioner Walter, as duty officer, 

voted to consider the items listed for the 

Closed Meeting in a closed session. 

The subject matter of the Closed 

Meeting scheduled for Thursday, April 

26, 2012 will be: 

Institution and settlement of 

injunctive actions; 

Institution and settlement of 

administrative proceedings; 

Other matters relating to enforcement 

proceedings; and 

An opinion. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting items. 

For further information and to 

ascertain what, if any, matters have been 

added, deleted or postponed, please 

contact: The Office of the Secretary at 

(202) 551–5400. 

Dated: April 19, 2012. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2012–9933 Filed 4–20–12; 4:15 pm] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66825; File No. SR–ICC– 

2012–01] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Approving 

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 

April 18, 2012. 

I. Introduction 

On February 17, 2012, ICE Clear 

Credit LLC (‘‘ICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change SR–ICC–2012–01 pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’).1 The 

proposed rule change was published for 

comment in the Federal Register on 

March 7, 2012.2 The Commission 

received no comment letters. For the 

reasons discussed below, the 

Commission is granting approval of the 

proposed rule change. 

II. Description 

This rule change will allow clearing 

participants to satisfy the initial marginrelated liquidity requirements for clientrelated positions cleared in a clearing 

participant’s customer account origin by 

posting US Treasuries. 

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.3

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, US 

Treasuries, or G7 cash. 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.4

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