12224 Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 34–73684 

(Nov. 25, 2014), 79 FR 71495 (Dec. 2, 2014) (SR– 

ICC–2014–19). 

4Securities Exchange Act Release No. 34–74082 

(Jan. 16, 2015), 80 FR 3687 (Jan. 23, 2015) (SR–ICC– 

2014–19). 

5 ‘‘Operational risk’’ is defined in the ICC 

Operational Risk Management Framework as the 

risk that deficiencies in information systems, 

internal processes, personnel, or disruptions from 

external events will result in the reduction, 

deterioration, or breakdown of services. 

the estimated total annual cost burden 

allocated to Form N 4 would be 

$36,308.889 ((210 × $23,013) + (1,443 × 

$21,813)). 

Providing the information required by 

Form N–4 is mandatory. Responses will 

not be kept confidential. Estimates of 

average burden hours are made solely 

for the purposes of the Paperwork 

Reduction Act, and are not derived from 

a comprehensive or even a 

representative survey or study of the 

costs of Commission rules and forms. 

An agency may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a currently valid control 

number. 

Written comments are invited on: (a) 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information will have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information collected; and (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology. Consideration will be given 

to comments and suggestions submitted 

in writing within 60 days of this 

publication. 

Please direct your written comments 

to Pamela Dyson, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, C/O Remi 

Pavlik-Simon, 100 F Street NE., 

Washington, DC 20549; or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: March 2, 2015. 

Brent J. Fields. 

Secretary. 

[FR Doc. 2015–05218 Filed 3–5–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74399; File No. SR–ICC– 

2014–19] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Granting 

Approval of Proposed Rule Change To 

Formalize the ICC Operational Risk 

Management Framework 

March 2, 2015. 

I. Introduction 

On November 18, 2014, ICE Clear 

Credit LLC (‘‘ICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change SR–ICC–2014–19 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 December 2, 

2014.3 The Commission received no 

comment letters regarding the proposed 

change. On January 16, 2015, the 

Commission extended the time period 

in which to either approve, disapprove, 

or institute proceedings to determine 

whether to disapprove the proposed 

rule change to March 2, 2015.4 For the 

reasons discussed below, the 

Commission is granting approval of the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

ICC is proposing to update and 

formalize ICC’s Operational Risk 

Management Framework. According to 

ICC, the Operational Risk Management 

Framework is designed to create a 

program of risk assessment and 

oversight to identify, monitor, and 

manage plausible sources of operational 

risk,5 and to timely manage and report 

operational performance measures. ICC 

further states that the operational risk 

program is designed to evaluate and 

mitigate operations risk presented to 

ICC by its partners, related entities, and 

vendors. According to ICC, the 

Operational Risk Management 

Framework is overseen by the ICC 

Board, ICC department heads and the 

Chief Compliance Officer, and internal 

audit performs reviews of the 

operational risk management processes. 

Under the Operational Risk 

Management Framework, the 

Operational Risk Manager has the 

responsibility and authority to develop 

and enforce, in consultation with the 

ICC Board and appropriate members of 

senior management, the operational risk 

program, which applies to all ICC 

activities, groups, functions and 

locations. The Operational Risk 

Management Framework further 

provides that the Operational Risk 

Manager is the owner of the Operational 

Risk Management Framework 

document, that the initial document and 

any material amendments require 

review and approval by the appropriate 

members of senior management and the 

ICC Board, and that the Operational 

Risk Manager reports to the Chief 

Compliance Officer who reports directly 

to the ICC Board. 

There are several components to the 

ICC Operational Risk Management 

Framework. ICC states that the 

Operational Risk Management 

Framework establishes clearly defined 

operational performance objectives that 

serve as benchmarks to evaluate 

efficiency and effectiveness, promote 

confidence among management and 

participants, and evaluate operational 

performance against expectations. The 

Operational Risk Management 

Framework states ICC’s goals of 

identifying, monitoring, and managing 

all plausible sources of operational risk 

and establishing clear policies and 

procedures to address presented risk 

scenarios. For example, the Operational 

Risk Management Framework 

incorporates ICC’s risk assessment 

methodology to identify and evaluate 

potential operational risks in each of its 

major clearing processes, as well as 

procedures for recommending controls 

to mitigate risks identified in the risk 

assessment. The Operational Risk 

Management Framework also contains 

information regarding how ICC 

leverages certain shared infrastructures 

within the Intercontinental Exchange, 

Inc. family as part of its operational risk 

management program. 

Additionally, the Operational Risk 

Management Framework details the 

Operational Risk Manager’s 

responsibilities in terms of business 

continuity planning, vendor risk 

management, and the release of new 

products, processes, and initiatives. 

Under the Operational Risk 

Management Framework, the 

Operational Risk Manager is responsible 

for operational risk reporting, which 

includes reporting and addressing 

significant operational risk weaknesses 

or failures timely and appropriately 

(including escalation to the appropriate 

members of senior management and the 

ICC Audit Committee and the Board 

when necessary), and providing ongoing 

reporting to appropriate members of 

senior management and periodic 

reporting to the ICC Board and the ICC 

Audit Committee on the operational risk 

program and significant control matters. 

mstockstill on DSK4VPTVN1PROD with NOTICES

Federal Register / Vol. 80, No. 44 / Friday, March 6, 2015 / Notices 12225 

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

7 15 U.S.C. 78q–1(b)(3)(F). 

8 17 CFR 240.17Ad–22(d)(4). 

9 15 U.S.C. 78q–1. 

10 17 CFR 240.17Ad–22(d)(4). 

11 15 U.S.C. 78q–1(b)(3)(F). 

12 15 U.S.C. 78q–1. 

13 15 U.S.C. 78s(b)(2). 

14 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). 

15 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

III. 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. In addition, Rule 17Ad– 

22(d)(4) 8 requires registered clearing 

agencies, among other things, to 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to identify sources 

of operational risk and minimize them 

through the development and 

implementation of appropriate systems, 

controls, and procedures and have 

business continuity plans that allow for 

timely recovery of operations and 

fulfillment of a clearing agency’s 

obligations. 

The Commission finds that the 

proposed rule change is consistent with 

Section 17A of the Act 9 and the rules 

thereunder applicable to ICC. ICC’s 

Operational Risk Management 

Framework establishes clear policies 

and procedures to identify and evaluate 

potential operational risks in each of its 

major clearing processes, and to 

recommend controls to mitigate 

identified risks, each of which are 

reasonably designed to identify, 

monitor, and manage of all plausible 

sources of operational risk. 

Furthermore, the Operational Risk 

Management Framework establishes 

clearly defined operational performance 

objectives that are expected to serve as 

benchmarks for evaluating operational 

efficiency and effectiveness, and to 

evaluate operational performance 

measurements against such objectives, 

each of which are expected to enhance 

ICC’s ability to mitigate operational risk. 

Finally, the Operational Risk 

Management Framework incorporates a 

business continuity plan that is 

expected to allow for timely recovery of 

operations and fulfillment of ICC’s 

obligations upon disruption. The 

Commission therefore believes that the 

proposed rule change is reasonably 

designed to identify sources of 

operational risk and minimize them 

through the development and 

implementation of appropriate systems, 

controls, and procedures and have 

business continuity plans that allow for 

timely recovery of operations and 

fulfillment of a clearing agency’s 

obligations, consistent with the 

requirements of Rule 17Ad–22(d)(4).10

Accordingly, the Commission believes 

that the proposed rule change is 

designed to promote the prompt and 

accurate settlement of securities and 

derivatives transactions, consistent with 

Section 17A(b)(3)(F) of the Act.11

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 12 and the rules and regulations 

thereunder. 

IT IS THEREFORE ORDERED, 

pursuant to Section 19(b)(2) of the 

Act,13 that the proposed rule change 

(File No. SR–ICC–2014–19) be, and 

hereby is, approved.14

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–05155 Filed 3–5–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74408; File No. SR– 

NYSEMKT–2015–11] 

Self-Regulatory Organizations; NYSE 

MKT LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Specifying in Exchange 

Rules the Exchange’s Use of Certain 

Data Feeds for Order Handling and 

Execution, Order Routing, and 

Regulatory Compliance 

March 2, 2015. 

Pursuant to section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on February 

24, 2015, NYSE MKT LLC (the 

‘‘Exchange’’ or ‘‘NYSE MKT’’) 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 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 proposes to specify in 

Exchange rules the Exchange’s use of 

certain data feeds for order handling 

and execution, order routing, and 

regulatory compliance. The text of the 

proposed rule change is available on the 

Exchange’s Web site at www.nyse.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 

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. 

mstockstill on DSK4VPTVN1PROD with NOTICES