20278 Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(2). 

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

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change is effective 

upon filing pursuant to Section 

19(b)(3)(A) 7 of the Act and 

subparagraph (f)(2) of Rule 19b–4 8

thereunder, because it establishes a due, 

fee, or other charge imposed by the 

Exchange. 

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 9 of the Act to 

determine whether the proposed rule 

change should be approved or 

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 rule-comments@

sec.gov. Please include File Number SR– 

NYSEMKT–2015–26 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–NYSEMKT–2015–26. 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– 

NYSEMKT–2015–26 and should be 

submitted on or before May 6, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08547 Filed 4–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74687; File No. SR–ICC– 

2015–007] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Provide for 

the Clearance of Additional Western 

European Sovereign Single Names 

April 9, 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 April 7, 

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 adopt rules that will 

provide the basis for ICC to clear 

additional credit default swap contracts. 

Specifically, ICC is proposing to amend 

Subchapter 26I of its rules to provide for 

the clearance of additional Standard 

Western European Sovereign CDS 

contracts (collectively, ‘‘SWES 

Contracts’’). ICC currently clears six 

SWES Contracts: the Republic of 

Ireland, the Italian Republic, the 

Portuguese Republic, the Kingdom of 

Spain, the Kingdom of Belgium, and the 

Republic of Austria. The proposed 

changes to the ICC Rules would provide 

for the clearance of additional SWES 

Contracts, specifically the Kingdom of 

the Netherlands, the Republic of 

Finland, the Kingdom of Sweden, and 

the Kingdom of Denmark. 

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 purpose of the proposed rule 

change is to adopt rules that will 

provide the basis for ICC to clear 

additional credit default swap contracts. 

ICC currently clears six SWES 

Contracts: the Republic of Ireland, the 

Italian Republic, the Portuguese 

Republic, the Kingdom of Spain, the 

Kingdom of Belgium, and the Republic 

of Austria. ICC proposes amending 

Subchapter 26I of its Rules to provide 

for the clearance of additional SWES 

Contracts, specifically the Kingdom of 

the Netherlands, the Republic of 

Finland, the Kingdom of Sweden, and 

the Kingdom of Denmark. ICC plans to 

offer these additional SWES Contracts 

on the 2003 and 2014 ISDA Credit 

Derivatives Definitions. The addition of 

these SWES Contracts will benefit the 

market for credit default swaps by 

providing market participants the 

benefits of clearing, including reduction 

in counterparty risk and safeguarding of 

margin assets pursuant to clearing house 

rules. 

These additional SWES Contracts 

have terms consistent with the other 

SWES Contracts approved for clearing at 

ICC and governed by Subchapter 26I of 

the ICC Rules, namely the Republic of 


tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices 20279 

3 15 U.S.C. 78q–1(b)(3)(F). 

4 15 U.S.C. 78q–1(b)(3)(F). 

5 Id. 

6 17 CFR 240.17Ad–22. 

7 17 CFR 240.17Ad–22(b)(2). 

8 17 CFR 240.17Ad–22(b)(3). 

9 17 CFR 240.17Ad–22(d)(4). 

10 17 CFR 240.17Ad–22(d)(5), (12) and (15). 

11 17 CFR 240.17Ad–22(d)(8). 

12 17 CFR 240.17Ad–22(d)(11). 

Ireland, the Italian Republic, the 

Portuguese Republic, the Kingdom of 

Spain, the Kingdom of Belgium, and the 

Republic of Austria. Minor revisions to 

Subchapter 26I (Standard Western 

European Sovereign (‘‘SWES’’) Single 

Name) are made to provide for clearing 

the additional SWES Contracts and 

described as follows. 

Rule 26I–102 is modified to include 

the Kingdom of the Netherlands, the 

Republic of Finland, the Kingdom of 

Sweden, and the Kingdom of Denmark 

in the list of specific Eligible SWES 

Reference Entities to be cleared by ICC. 

ICC’s Risk Management Framework 

has also been revised to provide 

enhancements to the General Wrong 

Way Risk (‘‘GWWR’’) methodology 

related to the clearance of additional 

SWES Contracts. The proposed changes 

to the ICC Risk Management Framework 

extend the GWWR framework to the 

portfolio level. Currently, there exists no 

Clearing Participant-level cumulative 

GWWR requirement incorporated in the 

Jump-to-Default calculations. The 

uncollateralized WWR exposure of a 

Risk Factor needs to exceed its 

corresponding WWR threshold in order 

to trigger WWR collateralization. The 

proposed enhancement is introduced to 

account for the potential accumulation 

of portfolio WWR through Risk Factor 

specific WWR exposures. Under the 

proposed approach, if the cumulative 

uncollateralized exposure exceeds a predetermined portfolio GWWR threshold, 

the amount above the threshold is 

collateralized. 

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

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. These contracts are similar 

to the SWES Contracts currently cleared 

by ICC, and the additional SWES 

Contracts will be cleared pursuant to 

ICC’s existing clearing arrangements and 

related financial safeguards, protections 

and risk management procedures, 

except as described herein. The 

additional SWES Contracts will allow 

market participants an increased ability 

to manage risk. ICC believes that 

acceptance of the new contracts, on the 

terms and conditions set out in the ICC 

Rules, is consistent with the prompt and 

accurate clearance of and settlement of 

securities transactions and derivative 

agreements, contracts and transactions 

cleared by ICC, the safeguarding of 

securities and funds in the custody or 

control of ICC, and the protection of 

investors and the public interest, within 

the meaning of Section 17A(b)(3)(F) of 

the Act.4 ICC performed a 

comprehensive risk analysis related to 

the clearing of additional SWES 

Contracts and identified the potential 

for uncollateralized GWWR exposure as 

a new risk and accommodated for this 

risk in the ICC Risk Management 

Framework, as discussed herein. ICC 

identified no additional risk or systemic 

risk concerns introduced by clearing 

additional SWES Contracts, not 

accounted for by ICC’s existing risk 

management procedures. As such, 

clearing the additional SWES Contracts 

is consistent with the requirement of 

promoting and protecting the public 

interest in Section 17A(b)(3)(F).5

Clearing of the additional SWES 

Contracts will also satisfy the 

requirements of Rule 17Ad–22.6 In 

particular, in terms of financial 

resources, ICC will apply its existing 

initial margin methodology to the 

additional contracts, with 

enhancements to the GWWR 

methodology discussed above. ICC 

believes that this model will provide 

sufficient initial margin requirements to 

cover its credit exposure to its clearing 

members from clearing such contracts, 

consistent with the requirements of Rule 

17Ad–22(b)(2).7 In addition, ICC 

believes its Guaranty Fund, under its 

existing methodology, will, together 

with the required initial margin, provide 

sufficient financial resources to support 

the clearing of the additional contracts 

consistent with the requirements of Rule 

17Ad–22(b)(3).8 ICC also believes that 

its existing operational and managerial 

resources will be sufficient for clearing 

of the additional contracts, consistent 

with the requirements of Rule 17Ad– 

22(d)(4),9 as the new contracts are 

substantially the same from an 

operational perspective as existing 

contracts. Similarly, ICC will use its 

existing settlement procedures and 

account structures for the new contracts, 

consistent with the requirements of Rule 

17Ad–22(d)(5), (12) and (15) 10 as to the 

finality and accuracy of its daily 

settlement process and avoidance of the 

risk to ICC of settlement failures. ICC 

determined to accept the additional 

SWES Contracts for clearing in 

accordance with its governance process, 

which included review of the contracts 

and related risk management 

considerations (and the enhancements 

to the GWWR methodology discussed 

herein) by the ICC Risk Committee and 

approval by its Board. These governance 

arrangements are consistent with the 

requirements of Rule 17Ad–22(d)(8).11

Finally, ICC will apply its existing 

default management policies and 

procedures for the additional SWES 

Contracts. ICC believes that these 

procedures allow for it to take timely 

action to contain losses and liquidity 

pressures and to continue meeting its 

obligations in the event of clearing 

member insolvencies or defaults in 

respect of the additional single names, 

in accordance with Rule 17Ad– 

22(d)(11).12

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The additional SWES Contracts will 

be available to all ICC Participants for 

clearing. The clearing of these 

additional SWES Contracts by ICC does 

not preclude the offering of the 

additional SWES Contracts for clearing 

by other market participants. 

Accordingly, ICC does not believe that 

clearance of the additional SWES 

Contracts will impose any burden on 

competition not necessary or 

appropriate 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 

the proposed rule change or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 


tkelley on DSK3SPTVN1PROD with NOTICES
20280 Federal Register / Vol. 80, No. 72 / Wednesday, April 15, 2015 / Notices 

13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 34– 

65588 (Oct. 18, 2011), 76 FR 65763 (Oct. 24, 2011) 

(File No. SR–ICC–2011–01) (order approving rule 

change to clear SES Contracts referencing the 

Federative Republic of Brazil, the United Mexican 

States, the Bolivian Republic of Venezuela, and the 

Argentine Republic); Securities Exchange Act 

Release No. 34–70849 (Nov. 12, 2013), 78 FR 69167 

(Nov. 18, 2013) (File No. SR–ICC–2013–07) (order 

approving rule change to clear SES Contracts 

referencing the Republic of Turkey and the Russian 

Federation); Securities Exchange Act Release No. 

34–73220 (Sep. 25, 2014), 79 FR 59340 (Oct. 1, 

2014) (File No. SR–ICC–2014–13) (order approving 

rule change to clear SES Contracts referencing the 

Republic of Hungary and the Republic of South 

Africa); and Securities Exchange Act Release No. 

34–74593 (Mar. 26, 2015), 80 FR 17538 (Apr. 1, 

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–2015–007 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–2015–007. 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–2015–007 and should 

be submitted on or before May 6, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08542 Filed 4–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74642A; File No. SR– 

NYSE–2014–59] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Withdrawal of a Proposed Rule 

Change, as Modified by Partial 

Amendment No. 1, Amending Rule 13 

and Related Rules Governing Order 

Types and Modifiers; Correction 

April 9, 2015. 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Notice; correction. 

SUMMARY: The Securities and Exchange 

Commission published a document in 

the Federal Register on April 9, 2015, 

concerning a Notice of Withdrawal of a 

Proposed Rule Change, as Modified by 

Partial Amendment No. 1, Amending 

Rule 13 and Related Rules Governing 

Order Types and Modifiers. The 

document contained a typographical 

error. 

FOR FURTHER INFORMATION CONTACT: 

Steve Kuan, Division of Trading and 

Markets, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549, (202) 551–5624. 

Correction 

In the Federal Register of April 9, 

2015 in FR Doc. 2015–8107, on page 

19097, in the fourth line in the first 

column, correct the date ‘‘February 26, 

2014’’ to ‘‘February 26, 2015.’’ 

Dated: April 9, 2015. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2015–08628 Filed 4–14–15; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74688; File No. SR–ICC– 

2015–006] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change To Provide for 

the Clearance of an Additional 

Standard Emerging Market Sovereign 

Single Name 

April 9, 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 March 27, 

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 adopt rules that will 

provide the basis for ICC to clear an 

additional credit default swap contract. 

Specifically, ICC is proposing to amend 

Subchapter 26D of its rules to provide 

for the clearance of an additional 

Standard Emerging Market Sovereign 

CDS contract (‘‘SES Contract’’), namely 

Ukraine. 

ICC has been approved to clear twelve 

SES Contracts: The Federative Republic 

of Brazil, the United Mexican States, the 

Bolivarian Republic of Venezuela, the 

Argentine Republic, the Republic of 

Turkey, the Russian Federation, the 

Republic of Hungary, the Republic of 

South Africa, the Republic of Chile, the 

Republic of Peru, the Republic of 

Colombia, and the Republic of Poland.3


tkelley on DSK3SPTVN1PROD with NOTICES