8730 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78s(b)(2). 

10 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

11 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–73941 

(Dec. 24, 2014), 80 FR 75 (Jan. 2, 2015) (File No. 

SR–ICC–2014–21). 

4See Comment from Anonymous, dated January 

23, 2015, available at http://www.sec.gov/

comments/sr-icc-2014-21/icc201421-1.htm (stating 

‘‘Good Idea’’). 

5See Exchange Act Release No. 34–72941(Nov. 5, 

2014), 79 FR 67213 (Nov. 12, 2014) (File No. SR– 

ICC–2014–14) (order approving rule change to clear 

other Western European sovereign CDS contracts) 

(the ‘‘Prior WES Order’’). 

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

7 15 U.S.C. 78q–1(b)(3)(F). 

8 15 U.S.C. 78q–1. 

9 17 CFR 240.17Ad–22. 

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the Act 8

and the rules and regulations 

thereunder. 

It Is Therefore Ordered, pursuant to 

Section 19(b)(2) of the Act,9 that the 

proposed rule change (File No. SR–ICC– 

2014–23) be, and hereby is, approved.10

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03230 Filed 2–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74256; File No. SR–ICC– 

2014–21] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Approving 

Proposed Rule Change To Provide for 

the Clearance of Additional Standard 

Western European Sovereign Single 

Names 

February 11, 2015. 

I. Introduction 

On December 16, 2014, ICE Clear 

Credit LLC (‘‘ICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change SR–ICC–2014–21 pursuant to 

Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder.2 The proposed rule 

change was published for comment in 

the Federal Register on January 2, 

2015.3 The Commission received one 

comment.4 For the reasons discussed 

below, the Commission is approving the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

ICC proposes to adopt rules that will 

provide the basis for ICC to clear 

additional credit default swap (‘‘CDS’’) 

contracts. Specifically, ICC is proposing 

to amend Section 26I of its Rules to 

provide for the clearance of additional 

Standard Western European Sovereign 

CDS contracts (collectively, ‘‘SWES 

Contracts’’). ICC has been approved to 

clear four SWES Contracts: the Republic 

of Ireland, the Italian Republic, the 

Portuguese Republic, and the Kingdom 

of Spain.5 The proposed changes to the 

ICC Rules would provide for the 

clearance of additional SWES Contracts, 

specifically the Kingdom of Belgium 

and the Republic of Austria (the 

‘‘Additional SWES Contracts’’). 

ICC states that these Additional SWES 

Contracts will be offered on the 2003 

and 2014 ISDA Credit Derivatives 

Definitions. ICC believes that the 

addition of these SWES Contracts will 

benefit the market for credit default 

swaps on Western European sovereigns 

by providing market participants the 

benefits of clearing, including reduction 

in counterparty risk and safeguarding of 

margin assets pursuant to clearing house 

rules. According to ICC, the clearing of 

the additional SWES Contracts will not 

require any changes in ICC’s risk 

management framework (including 

relevant policies) or margin model. ICC 

represents that the Additional SWES 

Contracts have terms consistent with the 

other SWES Contracts which ICC has 

been approved to clear and which will 

be governed by Subchapter 26I of the 

ICC rules, namely the Republic of 

Ireland, the Italian Republic, the 

Portuguese Republic, and the Kingdom 

of Spain. 

ICC proposes minor revisions to 

Subchapter 26I (Standard Western 

European Sovereign (‘‘SWES’’) Single 

Name) to provide for clearing the 

additional SWES Contracts. Rule 26I– 

102 will be modified to include the 

Kingdom of Belgium and the Republic 

of Austria in the list of specific Eligible 

SWES Reference Entities to be cleared 

by ICC. Additionally, in ICC Rule 26D– 

102 (Definitions), the definition of 

‘‘Eligible SES Reference Entity’’ will be 

modified to correct a typographical error 

and correctly identify the reference 

entity for a cleared product as Hungary 

(as opposed to the Republic of 

Hungary). 

III. Comments 

The Commission received one 

comment supporting approval of the 

proposed rule change. In this 

anonymous comment, the author 

expressed general support for the 

proposal but did not opine on any 

particular aspects of the proposal or 

offer any specific comment beyond a 

statement of general support. 

IV. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 6 directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if the Commission finds 

that such proposed rule change is 

consistent with the requirements of the 

Act and the rules and regulations 

thereunder applicable to such selfregulatory organization. Section 

17A(b)(3)(F) of the Act 7 requires, among 

other things, that the rules of a clearing 

agency are designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and transactions, 

to assure the safeguarding of securities 

and funds which are in the custody or 

control of the clearing agency or for 

which it is responsible and, in general, 

to protect investors and the public 

interest. 

The Commission finds that clearing of 

the Additional SWES Contracts is 

consistent with the requirements of 

Section 17A of the Act 8 and regulations 

thereunder applicable to it, including 

the standards under Rule 17Ad–22.9

The proposed change will provide for 

clearing of Additional SWES Contracts 

in the same manner as other SWES 

Contracts. Specifically, the new 

contracts will be cleared, and the risk 

associated with clearing the new 

contracts will be appropriately 

managed, pursuant to ICC’s existing 

margin and guaranty fund methodology, 

operational and managerial procedures, 

settlement procedures and default 

management policies. The Commission 

believes that the proposal is therefore 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions and derivative 

agreements, contracts and transactions 

cleared by ICC, to assure the 

safeguarding of securities and funds in 

the custody or control of ICC, and to 

protect investors and the public interest, 

within the meaning of is designed to 

promote the prompt and accurate 


emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Notices 8731 

10 15 U.S.C. 78q–1(b)(3)(F). 

11 15 U.S.C. 78q–1. 

12 15 U.S.C. 78s(b)(2). 

13 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition and capital formation. 15 

U.S.C. 78c(f). 

14 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). 

4 17 CFR 240.19b–4(f)(6)(iii). 

5See Securities Exchange Act Release No. 71449 

(January 30, 2014), 79 FR 6961 (February 5, 2014) 

(SR–EDGX–2013–043; SR–EDGA–2013–034). 

6See BZX and BYX Rules 1.5, 2.3, 2.5, and 2.6. 

7The Exchange notes that EDGX intends to file 

a proposal very similar to this proposal that will 

align the rules related to registration requirements 

across each of the BGM Affiliated Exchanges. 

clearance and settlement of securities 

transactions, consistent with Section 

17A(b)(3)(F) of the Act.10

V. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 11 and the rules and regulations 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,12 that the 

proposed rule change (SR–ICC–2014– 

21) be, and hereby is, approved.13

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–03229 Filed 2–17–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74254; File No. SR–EDGA– 

2015–06] 

Self-Regulatory Organizations; EDGA 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change to Rules 1.5, 2.3, 2.5, and 

2.6 Related to the Registration 

Requirements for Members of EDGA 

Exchange, Inc. 

February 11, 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 

30, 2015, EDGA Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘EDGA’’) 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 Exchange. The Exchange has 

designated this proposal as a ‘‘noncontroversial’’ proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act 3 and Rule 19b–4(f)(6)(iii) 

thereunder,4 which renders it 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 filed a proposal to 

amend Rules 1.5, 2.3, 2.5, and 2.6 

related to the registration requirements 

for Members of the Exchange. 

The text of the proposed rule change 

is available at the Exchange’s Web site 

at 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 

The Exchange proposes to amend the 

various Exchange rules related to the 

registration requirements on the 

Exchange in order to make the 

Exchange’s registration requirements 

substantively identical to the 

corresponding rules on BATS Exchange, 

Inc. (‘‘BZX’’) and BATS Y-Exchange, 

Inc. (‘‘BYX’’), as further described 

below. Earlier this year, the Exchange 

and its affiliate, EDGX Exchange, Inc. 

(‘‘EDGX’’), received approval to effect a 

merger (the ‘‘Merger’’) of the Exchange’s 

parent company, Direct Edge Holdings 

LLC, with BATS Global Markets, Inc., 

the parent of BZX and BYX (together 

with BZX, EDGA, and EDGX, the ‘‘BGM 

Affiliated Exchanges’’).5 In the context 

of the Merger, the BGM Affiliated 

Exchanges are working to align certain 

system and regulatory functionality, 

retaining only intended differences 

between the BGM Affiliated Exchanges. 

Thus, the proposal set forth below is 

intended to amend Rules 1.5, 2.3, 2.5, 

and 2.6 to make such Rules 

substantively identical to corresponding 

rules on BZX and BYX 6 related to 

registration requirements in order to 

provide a consistent regulatory 

approach across each of the BGM 

Affiliated Exchanges.7

Currently, Rule 1.5(n) defines the 

term ‘‘Member’’ as meaning any 

registered broker or dealer, or any 

person associated with a 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. 

The Exchange is proposing, however, to 

delete ‘‘or any person associated with a 

registered broker or dealer’’ from the 

rule text, as such phrase is not 

contained in corresponding BZX and 

BYX rules (i.e., Rule 1.5(n)) and because 

the Exchange no longer believes that 

this language is necessary. The 

Exchange is also proposing to amend 

the rule text such that Membership may 

be granted to a sole proprietor, 

partnership, corporation, limited 

liability company or other organization 

which is a registered broker or dealer 

pursuant to Section 15 of the Act, and 

which has been approved by the 

Exchange, language which is currently 

included in Rule 2.3(a), which, as 

described below, the Exchange is 

proposing to delete in order to further 

align Exchange rules with BZX and BYX 

1.5(n). 

The Exchange is also proposing to 

delete the definition of ‘‘Principal’’ from 

Rule 1.5(t), which will instead be 

defined in the proposed changes to 

paragraph (d) of Interpretation and 

Policy .01 to Rule 2.5, which are further 

described below. Currently, the term 

principal means persons associated with 

a member who are actively engaged in 

the management of the member’s 

securities business, including 

supervision, solicitation, conduct of 

business or the training of persons 

associated with a Member for any of 

these functions. Such persons shall 

include sole proprietors, officers, 

partners, managers of business offices 

engaged in such functions, and directors 

of corporations. The Exchange is 

proposing to add the text ‘‘(Reserved)’’ 

to the rule text in order to maintain the 

current paragraph numbering within 

Rule 1.5. The proposed new definition 

for principal will be discussed below. 

The Exchange intends to consolidate 

its registration requirements in Rule 2.5 


emcdonald on DSK67QTVN1PROD with NOTICES