Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Notices 70251 

8 15 U.S.C. 78s(b)(3)(A). 

9 17 CFR 240.19b–4(f). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Regulation (EU) No 648/2012 of the European 

Parliament and of the Council of 4 July 2012 on 

OTC derivatives, central counterparties and trade 

repositories. 

the Commission of any written 

comments received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 8 of the Act and paragraph (f) 

of Rule 19b–4 9 thereunder. At any time 

within 60 days of the filing of the 

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. 

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– 

NSCC–2014–10 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–NSCC–2014–10. 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 the 

filing also will be available for 

inspection and copying at the principal 

office of NSCC and on NSCC’s Web site 

at http://dtcc.com/legal/sec-rulefilings.aspx. 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–NSCC– 

2014–10 and should be submitted on or 

before December 16, 2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27842 Filed 11–24–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73645; File No. SR–ICEEU– 

2014–22] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

of Proposed Rule Change Relating to 

ICE Clear Europe Board Risk 

Committee 

November 18, 2014. 

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 November 

10, 2014, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’) 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 ICE Clear Europe. 

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 principal purpose of the 

proposed changes is to establish a risk 

committee (the ‘‘Board Risk 

Committee’’) which would advise the 

ICE Clear Europe Board (the ‘‘Board’’) 

on certain clearing house-wide risk 

management matters. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, ICE 

Clear Europe 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. ICE 

Clear Europe 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 

(a) Purpose 

The purpose of the amendments is for 

ICE Clear Europe to establish the Board 

Risk Committee. Establishment of the 

Board Risk Committee is required under 

Article 28 of the European Market 

Infrastructure Regulation (‘‘EMIR’’),3

which will apply to ICE Clear Europe as 

an authorized central counterparty. The 

Board Risk Committee will advise the 

Board with respect to various firm-wide 

risk management matters, with the goal 

of enabling the Board to ensure that ICE 

Clear Europe (i) implements and 

maintains agreed risk management 

procedures, processes and controls, (ii) 

provides appropriate access to 

participation in its clearing services and 

(iii) appropriately considers the 

interests of non-clearing member users 

of cleared products, including with 

respect to account segregation and 

collateral protection. The activities of 

the Board Risk Committee will relate to 

all categories of products cleared at ICE 

Clear Europe, and are in addition to ICE 

Clear Europe’s existing product-specific 

risk committees (F&O, CDS and FX). 

Pursuant to its terms of reference, the 

Board Risk Committee will report 

directly to the Board and receive and 

review all recommendations from each 

of the product-specific risk committees. 

The Board Risk Committee will 

undertake at least annual reviews of 

business risk mitigation procedures and 

controls and will have oversight of all 

risks facing ICE Clear Europe, including 

counterparty credit risk (across all 

clearing services) and non-counterparty 

credit risk matters, such as operational 

and liquidity risk. The Board Risk 

Committee will also advise the Board 


wreier-aviles on DSK4TPTVN1PROD with NOTICES
70252 Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Notices 

4 15 U.S.C. 78q–1. 

5 17 CFR 240.17Ad–22. 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 Id. 8 17 CFR 240.17Ad–22(d)(8). 

regarding any arrangements that may 

materially impact the risk management 

of ICE Clear Europe, such as a 

significant change in its criteria for 

accepting clearing members, clearing in 

new markets, or outsourcing of certain 

functions. The advice of the Board Risk 

Committee is not required for the daily 

operations of ICE Clear Europe. 

The Board Risk Committee will be 

provided (in addition to other relevant 

information) with results and analysis of 

back-testing, sensitivity testing, stress 

testing and reverse stress testing in 

respect of any review of margin models, 

methodologies and/or the liquidity risk 

management framework. The Board Risk 

Committee will also consider any other 

issues that may be referred to it by the 

Board and/or executive, including the 

exercise of discretion in relation to 

recovery arrangements under the Rules. 

In the course of its work the Board 

Risk Committee may obtain external 

legal or other independent advice and 

secure the attendance of third parties 

with relevant experience and expertise 

if it considers this necessary. 

The Board Risk Committee will 

consist of at least two and up to four 

Clearing Member representatives and at 

least two and up to four customer 

representatives, in each case appointed 

by the Chairman of the Board Risk 

Committee following consideration by 

the ICE Clear Europe Nominations 

Committee. The Chairman of the Board 

Risk Committee will be an independent 

non-executive director of ICE Clear 

Europe appointed by the Board and will 

be a full voting member of the 

committee. Any member of the Board 

Risk Committee may be removed by the 

Board without cause. The composition 

of the Board Risk Committee will be 

reviewed on an annual basis to 

determine whether the committee has 

appropriate representation of Clearing 

Members, customers and independent 

non-executive directors, and 

appropriate representation of expertise 

and experience in relevant risk 

disciplines, including market, credit 

and operational risk. Based on this 

review, the Chairman may determine to 

request the resignation of one or more 

committee members and/or appoint one 

or more additional committee members 

to achieve such appropriate 

representation. 

The ICE Clear Europe Chief Risk 

Officer, President and other appropriate 

ICE Clear Europe staff members will 

attend Board Risk Committee meetings 

in a non-voting capacity. In addition, 

the chairs of any groups or committees 

involved in the development of risk 

policies and a representative from each 

of the markets cleared by ICE Clear 

Europe will have a right to attend, but 

not vote, at Board Risk Committee 

meetings. The Board Risk Committee 

may also invite external independent 

experts to attend meetings in a nonvoting capacity. A quorum will be a 

minimum of four members, one of 

whom must be a customer 

representative and one of whom must be 

a Clearing Member representative. (The 

Chairman of the committee will count 

toward the quorum for this purpose.) 

Each Board Risk Committee member 

will have one vote and decisions of the 

Board Risk Committee will be made by 

a simple majority, provided that if the 

committee is evenly divided, the 

Chairman may cast a deciding vote (in 

addition to the Chairman’s normal vote 

as a member of the committee). 

Meetings will be held as needed and at 

least quarterly. 

(b) Statutory Basis 

ICE Clear Europe believes that the 

proposed rule change is consistent with 

the requirements of Section 17A of the 

Act 4 and the regulations thereunder 

applicable to it, including the standards 

under Rule 17Ad–22.5 Section 

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

The establishment of the Board Risk 

Committee is intended to enhance the 

governance structure and overall risk 

management of the Clearing House, in 

compliance with the requirements of 

EMIR. As described above, the Board 

Risk Committee is intended to advise 

the Board with respect to a range of 

enterprise-wide risk management 

matters across all product categories. It 

is also designed to provide appropriate 

representation for both Clearing 

Members and customers, and thereby to 

enable the Board to ensure that it 

provides appropriate access to 

participation in clearing services and 

that the interests of Clearing Members 

and customers are appropriately 

considered. As a result, ICE Clear 

Europe believes that the proposed rule 

change will promote the prompt and 

accurate clearance and settlement of 

cleared transactions, and in general is 

designed to protect investors and the 

public interest, within the meaning of 

Section 17A(b)(3)(F).7 In addition, the 

change is consistent with the 

requirements of Rule 17Ad–22(d)(8),8

which requires that a clearing agency 

have governance arrangements that are 

clear and transparent to fulfill the 

public interest requirements of Section 

17A of the Act applicable to clearing 

agencies, to support the objectives of 

owners and participants, and to promote 

the effectiveness of the clearing agency’s 

risk management procedures. As set 

forth above, the Board Risk Committee 

is intended to enhance the Board’s 

ability to oversee enterprise-wide risk 

management for all product categories, 

and to provide representation to, and 

take into account the interests of, both 

Clearing Members and their customers. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ICE Clear Europe does not believe the 

proposed amendments would have any 

impact, or impose any burden, on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The change will not 

affect the terms or conditions of any 

cleared contract or the standards or 

requirements for participation in or use 

of the Clearing House, and accordingly 

should not, in the Clearing House’s 

view, affect the availability of clearing, 

access to clearing services or the costs 

of clearing for clearing members or other 

market participants. ICE Clear Europe 

further believes that the establishment 

of the Board Risk Committee will 

strengthen its risk management 

capabilities and governance, as required 

in order to comply with EMIR. As a 

result, ICE Clear Europe believes that 

any impact on competition is 

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 changes to the rules have not 

been solicited or received. ICE Clear 

Europe will notify the Commission of 

any written comments received by ICE 

Clear Europe. 

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 of such date (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 


wreier-aviles on DSK4TPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 227 / Tuesday, November 25, 2014 / Notices 70253 

9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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. 

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– 

ICEEU–2014–22 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–ICEEU–2014–22. 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 also will be available for 

inspection and copying at the principal 

office of ICE Clear Europe and on ICE 

Clear Europe’s Web site at https://

www.theice.com/clear-europe/

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–ICEEU–2014–22 and 

should be submitted on or before 

December 16,2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–27843 Filed 11–24–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73648; File No. SR– 

NASDAQ–2014–108] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Modify 

NASDAQ Rule 7018 Fees 

November 19, 2014. 

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 November 

12, 2014, The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the Exchange. 

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 

NASDAQ is proposing to modify 

NASDAQ Rule 7018 fees assessed for 

execution and routing securities listed 

on NASDAQ, the New York Stock 

Exchange (‘‘NYSE’’) and on exchanges 

other than NASDAQ and NYSE. 

The text of the proposed rule change 

is available at nasdaq.cchwallstreet.com 

at NASDAQ’s principal office, 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, 

NASDAQ 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ is proposing to amend 

NASDAQ Rule 7018(1), (2) and (3) to 

modify fees assessed for execution and 

routing securities listed on NASDAQ 

(‘‘Tape C’’), NYSE (‘‘Tape A’’) and on 

exchanges other than NASDAQ and the 

NYSE (‘‘Tape B’’), respectively, 

(together, the ‘‘Tapes’’) as well as the 

opening and closing crosses (‘‘Opening 

and Closing Crosses’’) in NASDAQ Rule 

7018(d) and (e). 

The Exchange is proposing across all 

of the tapes (the ‘‘Tapes’’) an increase to 

the fee for a firm that executes against 

resting midpoint liquidity from $0.0027 

per share executed to $0.0030 per share 

executed. NASDAQ is seeking to 

harmonize the remove rate for orders 

whether or not they execute against the 

midpoint so that the remove rate for 

orders is certain before the order is 

entered. Therefore, the Exchange is 

proposing to increase the charge from 

$0.0027 to $0.0030 per share executed 

across all the tapes. 

NASDAQ is also proposing to 

eliminate across all of the tapes the 

current $0.00293 per share executed 

rebate for a member with shares of 

liquidity provided in all securities 

through one or more of its Nasdaq 

Market Center MPIDs that represent 

more than 0.10% of Consolidated 

Volume during the month, with shares 

executed in the Opening and Closing 

Cross that represent more than 0.20% of 

Consolidated Volume and orders 

entered through a single Nasdaq Market 

Center MPID that represent more than 

0.50% of Consolidated Volume during 

the month. NASDAQ believes that the 

elimination of this rebate is warranted 

since it has failed to increase liquidity 

in Tape A, B or C securities or to 

provide members with additional 

incentive to improve market quality. 

The Exchange is also proposing to 

modify and add new rebates across all 

of the tapes. Specifically, NASDAQ is 

proposing to expand and modify the 

credit for non-displayed orders (other 

than Supplemental Orders) that provide 

liquidity. The rebate will now include a 

$0.0025 per share executed for midpoint 

orders. It will be offered provided that 


wreier-aviles on DSK4TPTVN1PROD with NOTICES