Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 3691 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3As defined under Commodity Futures Trading 

Commission Regulation 39.33(c). 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2015–004 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549. 

All submissions should refer to File 

Number SR–NASDAQ–2015–004. 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 

10:00 a.m. and 3:00 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 

available publicly. All submissions 

should refer to File Number SR– 

NASDAQ–2015–004 and should be 

submitted on or before February 13, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01066 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74084; File No. SR–ICC– 

2015–002] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Revise the 

ICC Treasury Operations Policies and 

Procedures 

January 16, 2015. 

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 January 6, 

2015, 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 

The purpose of the proposed rule 

change is to revise the ICC Treasury 

Policies and Procedures to provide for 

the use of a Federal Reserve Account, to 

provide for the use of a committed repo 

facility, and to provide for engagement 

of outside investment managers to 

invest guaranty fund and margin cash 

pursuant to ICC’s USD and Euro 

investment guidelines. These revisions 

do not require any changes to the ICC 

Clearing Rules. 

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 

The proposed revisions to ICC’s 

Treasury Operations Policies and 

Procedures are intended to provide for 

the use of a Federal Reserve Account, to 

provide for the use of a committed repo 

facility, and to provide for USD and 

Euro investment guidelines for use by 

outside investment managers. 

ICC believes such revisions will 

facilitate the prompt and accurate 

clearance and settlement of securities 

transactions and derivative agreements, 

contracts, and transactions for which it 

is responsible. The proposed revisions 

are described in detail as follows. 

ICC has revised its Treasury 

Operations Policies and Procedures to 

demonstrate how ICC would utilize a 

Federal Reserve Account for cash and 

collateral management. ICC has applied 

for a Federal Reserve Account to hold 

both USD cash and US Treasuries. In its 

application, ICC requested separate 

accounts for house origin funds and 

customer origin funds. Should ICC be 

approved for a single account origin, 

ICC will utilize the Federal Reserve 

Accounts to hold house collateral, and 

customer collateral will continue to be 

held in commercial banks. Should ICC 

be approved for an additional account 

origin, ICC will utilize the second origin 

to hold customer collateral at the 

Federal Reserve. With respect to the 

potential utilization of a Federal Reserve 

cash Account, ICC plans to use this 

account as a depository account, in 

which cash will be consolidated on a 

daily basis and held overnight. ICC will 

continue using its commercial bank 

accounts for Clearing Participant money 

movements, and the net excess/deficit 

will be deposited to/withdrawn from 

the Federal Reserve cash Account as 

necessary. With respect to potential 

utilization of a Federal Reserve 

securities Account, ICC would use this 

account as a custody account to hold US 

Treasuries deposited by Clearing 

Participants with ICC’s commercial 

banks. 

Additionally, ICC has revised its 

Treasury Operations Policies and 

Procedures to provide for use of a 

committed repurchase (‘‘repo’’) facility. 

ICC has established a committed repo 

facility that will allow ICC to consider 

US Treasury securities deposited at ICC 

as an additional qualifying liquidity 

resource.3 The facility can be used to 

convert US Treasuries into cash when 

the sale of pledged securities needed for 

liquidity cannot be settled on a timely 

or same-day basis. Specifically, the 

facility can be used to generate 

temporary liquidity through the sale and 

agreement to repurchase securities 

pledged by ICC Clearing Participants to 

satisfy their Initial Margin and Guaranty 


tkelley on DSK3SPTVN1PROD with NOTICES
3692 Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 

4 15 U.S.C. 78q–1(b)(3)(F). 

5 Id. 

6 Id. 

7 17 CFR 240.17Ad–22. 

8 17 CFR 240.17Ad–22(d)(3). 

9 17 CFR 240.17Ad–22(b)(3). 

Fund requirements. The facility will 

include counterparties that are banks 

and/or broker dealers (which may 

include ICC Clearing Participants and/or 

their affiliates) that each provide a 

committed repo line to ICC. Committed 

repo will be subject to a haircut which 

will be the greater of 5% or the haircut 

that central banks employ for repo 

transactions using the same or similar 

purchased securities. 

The committed repo facility can be 

used on an open or overnight basis. The 

open repo will be closed as soon as the 

ICC Treasury Department (‘‘ICC 

Treasury’’) can facilitate the sale and 

settlement of the securities involved in 

the repo transaction. USD repo is settled 

delivery versus payment (‘‘DVP’’) on a 

bilateral basis. In order to initiate a 

committed repo transaction, ICC 

Treasury can send an email to the 

counterparty with a list of the securities 

that will be delivered. The counterparty 

will reply confirming the trade and 

providing the ‘‘purchase amount’’ of the 

repo transaction. The purchase amount 

will be equal to the mark-to-market 

(‘‘MTM’’) of the securities less the 

haircut. The repo details will then be 

sent to ICC’s custodian for settlement. 

ICC Treasury will monitor bank activity 

to ensure settlement is complete. Once 

ICC Treasury has arranged for the 

ultimate sale of the securities involved 

in the repo transaction, it will close-out 

the repo transaction(s). 

Finally, ICC has revised its Treasury 

Operations Policies and Procedures to 

provide for the engagement of outside 

investment managers to invest guaranty 

fund and margin cash pursuant to ICC’s 

USD and Euro investment guidelines. 

ICC’s current investment guidelines 

have been extended to apply to outside 

investment managers, and such 

investment guidelines are set forth in in 

the ICC Treasury Operations Policies 

and Procedures. In general ICC’s cash 

investment guidelines provide for the 

investment of cash in overnight reverse 

repo with high quality sovereign debt as 

collateral, and such guidelines apply to 

the investment of both USD and Euro 

cash. The investment guidelines provide 

that if the investment manager cannot 

place 100% of the allocated cash in 

overnight reverse repo, backup 

investments will be in term reverse repo 

and direct investment in high quality 

sovereign debt. With respect to Euro 

cash, investment in reverse repo 

transactions and non-US sovereign debt 

will be utilized only with respect to 

house origin cash, and shall not be 

utilized with respect to customer origin 

cash pursuant to Commodity Futures 

Trading Commission regulations. ICC’s 

USD investment guidelines provide for 

use by outside investment managers 

with respect to USD cash that is not 

otherwise invested pursuant to the ICC 

Treasury Operations Policies and 

Procedures. These revisions to the 

Treasury Operations Policies and 

Procedures do not require any 

operational changes. 

Section 17A(b)(3)(F) of the Act 4

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. ICC believes that the 

proposed revisions to the ICC Treasury 

Operations Policies and Procedures are 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to ICC, in 

particular, to Section 17A(b)(3)(F),5

because ICC believes that the proposed 

rule change will facilitate the prompt 

and accurate settlement of swaps and 

contribute to the safeguarding of 

securities and funds associated with 

swap transactions which are in the 

custody or control of ICC or for which 

it is responsible. The changes to provide 

for the use of a committed repo facility 

are designed to enhance ICC’s liquidity 

resources. Further, the changes to 

provide for the use of a Federal Reserve 

Account and to provide for engagement 

of outside investment managers to 

invest guaranty fund and margin cash 

pursuant to ICC’s USD and Euro 

investment guidelines are designed to 

further ensure the reliable investment of 

assets in ICC’s control with minimal 

risk. As such, the proposed rule change 

will facilitate the prompt and accurate 

settlement of swaps and contribute to 

the safeguarding of customer funds and 

securities within the control of ICC 

within the meaning of Section 

17A(b)(3)(F) 6 of the Act. 

In addition, the proposed revisions to 

the ICC Treasury Operations Policies 

and Procedures are consistent with the 

relevant requirements of Rule 17Ad– 

22.7 In particular, the use of a Federal 

Reserve Account and the engagement of 

outside investment managers to invest 

guaranty fund and margin cash pursuant 

to ICC’s USD and Euro investment 

guidelines will enhance ICC’s ability to 

hold assets in a manner that minimizes 

risk of loss or of delay in its access to 

such assets and will result in 

investment arrangements with minimal 

credit, market and liquidity risks. 

Furthermore, engagement of an outside 

investment manager will facilitate the 

securitization of guaranty fund and 

margin cash held by ICC. Such changes 

are therefore reasonably designed to 

meet the requirements of Rule 17Ad– 

22(d)(3).8 Additionally, the use of a 

committed repo facility will further 

ensure that ICC maintains sufficient 

financial resources at all times to meet 

the requirements set forth in Rule 

17Ad–22(b)(3).9

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ICC does not believe the proposed 

revisions would have any impact, or 

impose any burden, on competition. 

The revisions to ICC’s Treasury 

Operations Policies and Procedures to 

provide for the use of a Federal Reserve 

Account, to provide for the use of a 

committed repo facility, and to provide 

for engagement of outside investment 

managers to invest guaranty fund and 

margin cash pursuant to ICC’s USD and 

Euro investment guidelines apply 

uniformly across all Clearing 

Participants. Therefore, ICC does not 

believe the proposed revisions impose 

any burden on competition that is 

inappropriate 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 

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 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 15 / Friday, January 23, 2015 / Notices 3693 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The term ‘‘Member’’ is defined as ‘‘any 

registered broker or dealer that has been admitted 

to membership in the Exchange. A Member will 

have the status of a ‘‘member’’ of the Exchange as 

that term is defined in Section 3(a)(3) of the Act.’’ 

See Exchange Rule 1.5(n). 

4See Securities Exchange Act Release No. 72687 

(July 28, 2014), 79 FR 44926 (August 1, 2014) (SR– 

BYX–2014–012). Other national securities exchange 

filed similar proposals. See, e.g., Securities 

Exchange Act Release Nos. 72710 (July 29, 2014), 

79 FR 45511 (August 5, 2014) (SR–NYSE–2014–38), 

and 72684 (July 28, 2014), 79 FR 44956 (August 1, 

2014) (SR–NASDAQ–2014–072). 

5The Exchange understands that other national 

security exchanges will file similar proposed rule 

changes with the Commission to further describe 

their use of data feeds for order handling and 

execution, order routing, and regulatory 

compliance. 

6See Mary Jo White, Chair, Securities and 

Exchange Commission, Speech at Sandler O’Neill & 

Partners L.P. Global Exchange and Brokerage 

Conference (June 5, 2014). 

7See letter from Stephen Luparello, Director, 

Division of Trading and Markets, Securities and 

Exchange Commission, to Joe Ratterman, Chief 

Executive Officer, BATS Global Markets, Inc., dated 

June 20, 2014. 

8See supra note 6. 

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–2015–002 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–ICC–2015–002. 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 

10:00 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 Web site at https://

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

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–2015–002 and should 

be submitted on or before February 13, 

2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–01070 Filed 1–22–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74075; File No. SR–BYX– 

2015–03] 

Self-Regulatory Organizations; BATS 

Y-Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Clarify the Use of 

Certain Data Feeds 

January 15, 2015. 

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 January 

7, 2015, BATS Y-Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BYX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. 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 filed a proposal to 

clarify for Members 3 and non-Members 

the Exchange’s use of certain data feeds 

for order handling and execution, order 

routing, and regulatory compliance. On 

July 15, 2014, the Exchange filed a 

proposed rule change that described its 

use of data feeds for order handling and 

execution, order routing, and regulatory 

compliance (the ‘‘Initial Proposal’’) with 

the Securities and Exchange 

Commission (the ‘‘Commission’’).4 The 

Exchange submits this supplemental 

filing in order to further clarify for 

Members and non-Members the 

Exchange’s use of certain data feeds and 

to make one modification with respect 

to the usage of such data feeds as 

previously described.5

The text of the proposed rule change 

is available at the Exchange’s Web site 

at http://www.batstrading.com/, at the 

principal office of the Exchange, 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 parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Background 

On June 5, 2014, Chair White 

requested that all national securities 

exchanges develop proposed rule 

changes to disclose their use of data 

feeds to execute and route orders and 

comply with regulatory requirements.6

In addition, on June 20, 2014, the 

Commission’s Division of Trading and 

Markets requested that the Exchange file 

proposed rule changes that disclose its 

usage of particular market data feeds, 

among other things.7 In response to 

these requests, the Exchange filed the 

Initial Proposal with the Commission on 

July 15, 2014.8 The Exchange submits 

this supplemental filing to further 

clarify for Members and non-Members 

the Exchange’s use of certain data feeds 

for order handling and execution, order 


tkelley on DSK3SPTVN1PROD with NOTICES