42396 Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices 

13Each Partnership will preserve the accounts, 

books and other documents required to be 

maintained in an easily accessible place for the first 

two years. 

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)(1). 

5Capitalized terms not defined herein are defined 

in the GSD Rules, available at www.dtcc.com/∼/ 

media/Files/Downloads/legal/rules/ficc_gov_

rules.pdf, and the MBSD Rules, available at 

www.dtcc.com/∼/media/Files/Downloads/legal/ 

rules/ficc_mbsd_rules.pdf. 

Party Fund); (ii) the Advisers; (iii) an 

officer or director of the Advisers; (iv) 

an Eligible Employee; or (v) an entity 

(other than a Third Party Fund) in 

which an Adviser entity acts as a 

general partner or has a similar capacity 

to control the sale or other disposition 

of the entity’s securities. The 

restrictions contained in this condition, 

however, shall not be deemed to limit 

or prevent the disposition of an 

investment by an Affiliated Co-Investor 

(i) to its direct or indirect wholly-owned 

subsidiary, to any company (a ‘‘Parent’’) 

of which the Affiliated Co-Investor is a 

direct or indirect wholly-owned 

subsidiary or to a direct or indirect 

wholly-owned subsidiary of its Parent, 

(ii) to immediate family members of the 

Affiliated Co-Investor or a trust or other 

investment vehicle established for any 

Affiliated Co-Investor or any such 

immediate family member, or (iii) when 

the investment is comprised of 

securities that are (a) listed on a national 

securities exchange registered under 

section 6 of the Exchange Act, (b) NMS 

stocks pursuant to section 11A(a)(2) of 

the Exchange Act and rule 600(a) of 

Regulation NMS thereunder, (c) 

government securities as defined in 

section 2(a)(16) of the Act or other 

securities that meet the definition of 

‘‘Eligible Security’’ in rule 2a–7 under 

the Act, or (d) listed or traded on any 

foreign securities exchange or board of 

trade that satisfies regulatory 

requirements under the law of the 

jurisdiction in which such foreign 

securities exchange or board of trade is 

organized similar to those that apply to 

a national securities exchange or a 

national market system for securities. 

4. Each Partnership and its General 

Partner will maintain and preserve, for 

the life of each Series of the Partnership 

and at least six years thereafter, such 

accounts, books and other documents 

constituting the record forming the basis 

for the audited financial statements that 

are to be provided to the Limited 

Partners in the Partnership, and each 

annual report of the Partnership 

required to be sent to the Limited 

Partners, and agree that all such records 

will be subject to examination by the 

Commission and its staff.13

5. Within 120 days after the end of 

each fiscal year of each Partnership, or 

as soon as practicable thereafter, the 

General Partner of each Partnership will 

send to each Limited Partner having an 

Interest in the Partnership at any time 

during the fiscal year then ended, 

Partnership financial statements audited 

by the Partnership’s independent 

accountants. At the end of each fiscal 

year, the General Partner will make or 

cause to be made a valuation of all of 

the assets of the Partnership as of such 

fiscal year end in a manner consistent 

with customary practice with respect to 

the valuation of assets of the kind held 

by the Partnership. In addition, within 

120 days after the end of each fiscal year 

of each Partnership (or as soon as 

practicable thereafter), the General 

Partner will send a report to each person 

who was a Limited Partner at any time 

during the fiscal year then ended, 

setting forth such tax information as 

shall be necessary for the preparation by 

the Limited Partner of that partner’s 

federal and state income tax returns and 

a report of the investment activities of 

the Partnership during that fiscal year. 

6. If a Partnership makes purchases or 

sales from or to an entity affiliated with 

the Partnership by reason of an officer, 

director or employee of an Adviser 

entity (i) serving as an officer, director, 

general partner, manager or investment 

adviser of the entity (other than an 

entity that is an Aggregation Vehicle), or 

(ii) having a 5% or more investment in 

the entity, such individual will not 

participate in the Partnership’s 

determination of whether or not to effect 

the purchase or sale. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18930 Filed 9–6–17; 8:45 am] 

BILLING CODE P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81511; File No. SR–FICC– 

2017–019] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Adopt the 

Interpretive Guidance With Respect to 

Watch List Consequences 

August 31, 2017. 

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 August 

23, 2017, Fixed Income Clearing 

Corporation (‘‘FICC’’) 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 primarily 

prepared by the clearing agency. FICC 

filed the proposed rule change pursuant 

to Section 19(b)(3)(A) of the Act 3 and 

Rule 19b–4(f)(1) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change would 

amend FICC’s Government Securities 

Division (‘‘GSD’’) Rulebook (‘‘GSD 

Rules’’) and Mortgage-Backed Securities 

Division (‘‘MBSD’’) Clearing Rules 

(‘‘MBSD Rules,’’ and collectively with 

the GSD Rules, the ‘‘Rules’’) 5 in order 

to adopt the Interpretive Guidance with 

Respect to Watch List Consequences 

(‘‘Interpretive Guidance’’), which would 

provide guidance to members of GSD 

and MBSD regarding placement on the 

Watch List and its impact on their 

respective Clearing Fund deposits as 

well as other consequences. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency 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 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

The proposed rule change would add 

the Interpretive Guidance into the 

Rules, which will provide guidance to 

members of GSD and MBSD regarding 

the Watch List and its impact on their 

respective Clearing Fund deposits as 

well as other possible consequences. 

(i) Background 

FICC occupies an important role in 

the securities settlement system by 

interposing itself through each of GSD 

and MBSD as a central counterparty 

mstockstill on DSK30JT082PROD with NOTICES

Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices 42397 

6See Exchange Act Release Nos. 80734 (May 19, 

2017), 82 FR 24177 (May 25, 2017) (SR–FICC–2017– 

006), 80731 (May 19, 2017), 82 FR 24174 (May 25, 

2017) (SR–FICC–2017–804). 

7The Credit Risk Rating Matrix generates credit 

ratings for relevant members based on a 7-point 

rating system, with ‘‘1’’ being the strongest credit 

rating and ‘‘7’’ being the weakest credit rating. 

8Pursuant to GSD Rule 1, the term ‘‘Watch List’’ 

means ‘‘at any time and from time to time, the list 

of Members whose credit ratings derived from the 

Credit Risk Rating Matrix are 5, 6 or 7, as well as 

members that, based on the Corporation’s 

consideration of relevant factors, including those 

set forth in Section 12(d) of Rule 3, are deemed by 

the Corporation to pose heightened risk to the 

Corporation and its Members.’’ GSD Rule 1, 

Definitions. 

Pursuant to MBSD Rule 1, the term ‘‘Watch List’’ 

means ‘‘at any time and from time to time, the list 

of Members whose credit ratings derived from the 

Credit Risk Rating Matrix are 5, 6 or 7, as well as 

Members that, based on the Corporation’s 

consideration of relevant factors, including those 

set forth in Section 11(d) of Rule 3, are deemed by 

the Corporation to pose heightened risk to the 

Corporation and its Members.’’ MBSD Rule 1, 

Definitions. 

9Section 12(e) of GSD Rule 3, in relevant parts, 

states that ‘‘The Corporation may require a Netting 

Member that has been placed on the Watch List to 

make and maintain a deposit to the Clearing Fund 

over and above the amount determined in 

accordance with Section 2 of Rule 4 (which 

additional deposit shall constitute a portion of the 

Netting Member’s Required Fund Deposit), or such 

higher amount as the Board may deem necessary for 

the protection of the Corporation or other Members, 

which higher amount may include, but is not 

limited to, additional payments or deposits in any 

form to offset potential risk to the Corporation and 

its Members arising from activity submitted by such 

Member.’’ GSD Rule 3, Ongoing Membership 

Requirements. 

10Section 11(e) of MBSD Rule 3, in relevant parts, 

states that ‘‘The Corporation may require a Clearing 

Member that has been placed on the Watch List to 

make and maintain a deposit to the Clearing Fund 

over and above the amount determined in 

accordance with Section 2 of Rule 4 (which 

additional deposit shall constitute a portion of the 

Clearing Member’s Required Fund Deposit), or such 

higher amount as the Board may deem necessary for 

the protection of the Corporation or other Members, 

which higher amount may include, but is not 

limited to, additional payments or deposits in any 

form to offset potential risk to the Corporation and 

its Members arising from activity submitted by such 

Member.’’ MBSD Rule 3, Ongoing Membership 

Requirements. 

11FICC maintains an enhanced surveillance list 

for membership monitoring. The enhanced 

surveillance list is generally used when members 

are undergoing drastic and unexpected changes in 

their financial conditions or operational capabilities 

and thus are deemed by FICC to be of the highest 

risk level and/or warrant additional scrutiny due to 

FICC’s ongoing concerns about these members. 

12Section 2(a) of MBSD Rule 4, in relevant parts, 

states ‘‘on any Business Day, a Clearing Member 

may become subject to an Intraday Mark-to-Market 

Charge,’’ and the term ‘‘Intraday Mark-to-Market 

Charge’’ as defined in MBSD Rule 1, in relevant 

parts, provides that ‘‘the Corporation may, in its 

discretion, collect the Intraday Mark-to-Market 

Charge from a Clearing Member that experiences an 

adverse Intraday Mark-to-Market change that . . . 

exceeds a certain dollar threshold (‘‘Surveillance 

Threshold’’)’’ and that ‘‘the Surveillance Threshold 

is an amount between $1,000,000 and $50,000,000 

that is set by the Corporation per Clearing Member 

based on a Clearing Member’s rating as determined 

by the Credit Risk Rating Matrix and/or a Clearing 

Member’s Watch List status.’’ MBSD Rule 4, 

Clearing Fund and Loss Allocation. 

between members that are 

counterparties to transactions accepted 

for clearing by FICC, thereby reducing 

the risks faced by its members. FICC’s 

ability to guarantee settlement of these 

transactions is dependent upon its risk 

management, which is the means by 

which it protects itself and its members 

from the risks inherent in the settlement 

process. The Watch List is one of the 

risk management tools that FICC uses to 

monitor default risks of its members on 

an ongoing basis.6 A member could be 

placed on the Watch List if its credit 

rating derived from the Credit Risk 

Rating Matrix is 5, 6 or 7,7 or if, based 

on FICC’s consideration of relevant 

factors, it is deemed by FICC to pose a 

heightened risk to FICC and its 

members.8 Being placed on the Watch 

List may result in Clearing Fund-related 

consequences as well as other 

consequences under the Rules. 

(ii) Detailed Description of the Proposed 

Rule Change 

In order to provide members of GSD 

and MBSD guidance regarding 

placement on the Watch List and its 

impact on their respective Clearing 

Fund deposits and other consequences, 

FICC is proposing to adopt the 

Interpretive Guidance, as described 

below. 

FICC is also proposing to amend the 

‘‘Watch List’’ definition in GSD Rule 1 

(Definitions) and MBSD Rule 1 

(Definitions), respectively, to add a 

footnote referring to the Interpretive 

Guidance for members’ ease of reference 

when reviewing the Rules for Watch 

List implications. The proposed 

footnote would indicate to members that 

being placed on the Watch List may 

result in Clearing Fund-related 

consequences as well as other 

consequences under the Rules and 

would refer them to the Interpretive 

Guidance in the Rules. 

A. Clearing Fund-Related Consequences 

for Members Placed on the Watch List 

As proposed, the Interpretive 

Guidance would provide details on 

Clearing Fund-related consequences for 

members of GSD and MBSD placed on 

the Watch List, including additional 

Clearing Fund deposits, restriction on 

withdrawal of Excess Clearing Fund 

Deposits, and non-waiver of minimal 

Clearing Fund payment. 

1. Additional Clearing Fund Deposits 

Pursuant to Section 12(e) of GSD Rule 

3 9 and Section 11(e) of MBSD Rule 3,10

FICC may require a GSD Netting 

Member or an MBSD Clearing Member, 

as applicable, that has been placed on 

the Watch List to make and maintain a 

deposit to the GSD Clearing Fund or 

MBSD Clearing Fund, as applicable, 

over and above the amount determined 

in accordance with Section 2 of GSD 

Rule 4 and Section 2 of MBSD Rule 4, 

as applicable, or such higher amount as 

the FICC Board may deem necessary for 

the protection of FICC or other 

members. 

The determination of whether a 

member that is on the Watch List should 

be subject to an additional Clearing 

Fund deposit is based on factors 

determined to be relevant by FICC from 

time to time, including: 

a. The overall financial condition and 

financial stability or volatility of the 

GSD Netting Member or the MBSD 

Clearing Member, as applicable, which 

may include a review of the member’s 

credit rating/enhanced surveillance 11

history and outlook. For example, FICC 

may require an additional Clearing 

Fund deposit from a member that is 

both rated a 7 on the Credit Risk Rating 

Matrix as well as under enhanced 

surveillance, or if the member’s credit 

rating has deteriorated rapidly month 

over month. 

b. The liquidity arrangement, if any, 

of the GSD Netting Member or the 

MBSD Clearing Member, as applicable. 

For example, FICC may require an 

additional Clearing Fund deposit from a 

member if FICC has concerns about the 

member’s liquidity arrangement or if 

FICC determines that the member has 

insufficient liquidity resources when 

compared to the volume of the 

member’s clearing activities at FICC. 

c. The Clearing Fund requirement 

history, transaction volume trends, 

simulated closeout results, stress test 

results, backtest results and outstanding 

positions of the GSD Netting Member or 

the MBSD Clearing Member, as 

applicable. For example, FICC may 

require an additional Clearing Fund 

deposit from a member that is on the 

Watch List if a review of the member’s 

activity level indicates that FICC or its 

members could be exposed to losses 

from the member’s activities. 

d. Adverse news reports and/or 

regulatory concerns relating to the GSD 

Netting Member or the MBSD Clearing 

Member, as applicable. 

e. Any additional concerns relating to 

the financial or operational condition of 

the GSD Netting Member or the MBSD 

Clearing Member, as applicable. 

Additionally, pursuant to Section 2(a) 

of MBSD Rule 4,12 FICC may impose an 

Intraday Mark-to-Market Charge on a 

MBSD Clearing Member that 

mstockstill on DSK30JT082PROD with NOTICES

42398 Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices 

13Section 2(g) of MBSD Rule 4, in relevant parts, 

states ‘‘any VaR Charge may be collected on an 

intra-day basis,’’ that ‘‘such intra-day VaR Charge 

amount shall be based upon certain parameter 

breaks defined by the Corporation from time to 

time’’ and ‘‘qualitative factors including, but not 

limited to, Watch List status and internal rating will 

also be considered in the application of intraday 

VaR Charge.’’ MBSD Rule 4, Clearing Fund and 

Loss Allocation. 

14Section 9 of GSD Rule 4, in relevant parts, 

states ‘‘at the discretion of the Corporation, some or 

all of the Excess Clearing Fund Deposit may not be 

returned . . . if the Member is on the Watch List.’’ 

GSD Rule 4, Clearing Fund and Loss Allocation. 

15Section 9 of MBSD Rule 4, in relevant parts, 

states ‘‘at the discretion of the Corporation, some or 

all of the Excess Clearing Fund Deposit may not be 

returned . . . if the Member is on the Watch List.’’ 

MBSD Rule 4, Clearing Fund and Loss Allocation. 

16Pursuant to Section 9 of GSD Rule 4, FICC may 

also retain some or all of the Excess Clearing Fund 

Deposits of a GSD Member if FICC determines that 

the GSD Member’s anticipated Funds-Only 

Settlement Amounts or Net Settlement Positions in 

the near future may reasonably be expected to be 

materially different than those of the recent past. 

GSD Rules, supra note 5. 

Pursuant to Section 9 of MBSD Rule 4, FICC may 

also retain some or all of the Excess Clearing Fund 

Deposits of a MBSD Member if the MBSD Member 

has an outstanding payment obligation to FICC, if 

FICC determines that the MBSD Member’s 

anticipated Cash Settlement Obligations, Pool Net 

Obligations or Transactions over the next 90 

calendar days may reasonably be expected to be 

materially different than during the prior 90 

calendar days. MBSD Rules, supra note 5. 

17Section 2(a) of GSD Rule 4, in relevant parts, 

states that ‘‘A Netting Member’s Required Fund 

Deposit shall be reported daily, and payment shall 

be due by the time specified in the Corporation’s 

procedures; however, such payment shall not be 

due on a given day if: (a) The difference between 

the amount of a Member’s Required Fund Deposit 

as reported on that day, and the amount then on 

deposit towards satisfaction thereof is less than 

both (i) $250,000, and (ii) 25 percent of the amount 

then on deposit; and (b) the Member is not on the 

Watch List. GSD Rule 4, Clearing Fund and Loss 

Allocation. 

18Section 2(c) of MBSD Rule 4, in relevant parts, 

states that ‘‘A Clearing Member’s Required Fund 

Deposit shall be reported daily, and payment shall 

be due by the time specified in the Corporation’s 

procedures; however, such payment shall not be 

due on a given day if: (a) The difference between 

the amount of a Member’s Required Fund Deposit 

as reported on that day and the amount then on 

deposit towards satisfaction thereof is less than 

both (i) $250,000, and (ii) 25 percent of the amount 

then on deposit from the Clearing Member; and (b) 

the Member is not on the Watch List.’’ MBSD Rule 

4, Clearing Fund and Loss Allocation. 

19Section 12(e) of GSD Rule 3, in relevant parts, 

states that ‘‘as regards a Netting Member that has 

been placed on the Watch List by the Corporation, 

the Corporation may suspend, during all or a 

portion of the time period that such Member is on 

the Watch List, its right under these Rules to collect 

a Credit Forward Mark Adjustment Payment. 

Moreover, if a Netting Member on the Watch List 

has a Collateral Allocation Entitlement as the result 

of its GCF Repo Transaction activity, the 

Corporation may, in its sole discretion, maintain 

possession of the securities and/or cash that 

comprise such Collateral Allocation Entitlement.’’ 

GSD Rule 3, Ongoing Membership Requirements. 

20 15 U.S.C. 78q–1(b)(3)(F). 

21 17 CFR 240.17Ad–22(e)(23)(i). 

22 17 CFR 240.17Ad–22(e)(23)(ii). 

experiences an adverse Intraday Markto-Market change that, among other 

things, exceeds certain Surveillance 

Thresholds. The Surveillance 

Thresholds are set by FICC based on an 

MBSD Clearing Member’s rating as 

determined by the Credit Risk Rating 

Matrix and/or its Watch List status. 

Furthermore, pursuant to Section 2(g) 

of MBSD Rule 4,13 FICC may subject a 

MBSD Clearing Member to an intraday 

VaR Charge if the MBSD Clearing 

Member is on the Watch List; however, 

FICC does not currently collect a VaR 

Charge on an intraday basis from any 

MBSD Clearing Members. 

2. Restriction on Withdrawal of Excess 

Clearing Fund Deposits 

Pursuant to Section 9 of GSD Rule 4 14

and Section 9 of MBSD Rule 4,15 FICC 

may retain some or all of the Excess 

Clearing Fund Deposit of a GSD Member 

or an MBSD Member, as applicable, 

who is on the Watch List.16

Nonetheless, FICC generally does not 

retain the Excess Clearing Fund Deposit 

of a Watch List member unless the 

member fails to pay the Required Fund 

Deposit within the required timeframes 

established by FICC, or if FICC has a 

concern that the member will not be 

able to satisfy its obligation to FICC. 

3. Non-Waiver of Minimal Clearing 

Fund Payment 

Pursuant to Section 2(a) of GSD Rule 

4 17 and Section 2(c) of MBSD Rule 4,18

a GSD Member or an MBSD Member, as 

applicable, is not required to make any 

payment to its Clearing Fund on a given 

day if the difference between the 

amount of the GSD Member’s or the 

MBSD Member’s, as applicable, 

Required Fund Deposit as reported on 

that day and the amount then on deposit 

towards satisfaction thereof is less than 

both (i) $250,000 and (ii) 25 percent of 

the amount then on deposit, provided 

that the GSD Member or the MBSD 

Member, as applicable, is not on the 

Watch List. As such, GSD Members and 

MBSD Members that are on the Watch 

List must satisfy all margin calls for 

their respective Clearing Funds 

regardless of the amount. 

B. Other Consequences for GSD Netting 

Members Placed on the Watch List 

As proposed, the Interpretive 

Guidance would also describe other 

consequences that may affect GSD 

Netting Members placed on the Watch 

List. 

Pursuant to Section 12(e) of GSD Rule 

3,19 if a GSD Netting Member is on the 

Watch List, FICC may (1) suspend the 

GSD Netting Member’s right under the 

GSD Rules to collect a Credit Forward 

Mark Adjustment Payment during all or 

a portion of the time period that the 

GSD Netting Member is on the Watch 

List and/or (2) maintain possession of 

the securities and/or cash that comprise 

the GSD Netting Member’s Collateral 

Allocation Entitlement as the result of 

its GCF Repo Transaction activity. 

Nonetheless, FICC generally does not 

retain these credits and/or entitlements 

unless the GSD Netting Member fails to 

pay the Required Fund Deposit within 

the required timeframes established by 

FICC, or if FICC has a concern that the 

GSD Netting Member will not be able to 

satisfy its obligation to FICC. 

2. Statutory Basis 

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

requires, in part, that the Rules promote 

the prompt and accurate clearance and 

settlement of securities transactions.20

The proposed rule change would 

provide additional transparency to FICC 

members regarding placement on the 

Watch List and its impact on their 

respective Clearing Fund deposits as 

well as other consequences. The 

proposed rule change would also clarify 

FICC’s current practices regarding the 

assessment, collection and withholding 

of related margin charges, credits and/ 

or entitlements. Accordingly, the 

proposed rule change would ensure that 

the Rules are transparent and clear, 

which would enable all stakeholders to 

readily understand their respective 

rights and obligations in connection 

with FICC’s clearance and settlement of 

securities transactions. Therefore, FICC 

believes that the proposed rule change 

would promote the prompt and accurate 

clearance and settlement of securities 

transactions, consistent with Section 

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

Rule 17Ad–22(e)(23)(i) under the Act 

requires, in part, that FICC establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to provide for 

publicly disclosing all relevant rules 

and material procedures.21 Rule 17Ad– 

22(e)(23)(ii) under the Act requires that 

FICC establish, implement, maintain 

and enforce written policies and 

procedures reasonably designed to 

provide sufficient information to enable 

participants to identify and evaluate the 

risks, fees, and other material costs they 

incur by participating in FICC.22 The 

proposed rule change enhances the 

transparency in the Rules by describing 

the impact that placement on the Watch 

List could have on members’ respective 

Clearing Fund deposits and other 

mstockstill on DSK30JT082PROD with NOTICES

Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / Notices 42399 

23 17 CFR 240.17Ad–22(e)(23)(i), (ii). 

24 15 U.S.C. 78q–1(b)(3)(I). 

25 15 U.S.C. 78s(b)(3)(A). 

26 17 CFR 240.19b–4(f). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

consequences. By doing so, the 

proposed rule change would provide for 

the public disclosure of the rules and 

procedures through which FICC 

assesses, collects and withholds certain 

margin charges, credits and/or 

entitlements from members on the 

Watch List. By providing information 

regarding the assessment, collection and 

withholding of certain margin charges 

and other consequences of the Watch 

List, the proposed rule change would 

also enable FICC’s members to identify 

and evaluate the risks and material costs 

they incur by participating in FICC. As 

such, FICC believes the proposed rule 

change is consistent with Rule 17Ad– 

22(e)(23)(i) and (ii) under the Act.23

(B) Clearing Agency’s Statement on 

Burden on Competition 

FICC does not believe that the 

proposed rule change would impact 

competition.24 The proposed rule 

change provides interpretive guidance 

with respect to existing Rules and 

would increase the transparency of the 

Rules regarding the Watch List and its 

impact on FICC members’ respective 

Clearing Fund deposits and other 

consequences by clarifying FICC’s 

current practices with respect to the 

assessment, collection and withholding 

of certain margin charges, credits and/ 

or entitlements from members on the 

Watch List. The proposed rule change 

would not change such current 

practices. As such, FICC believes that 

the proposed rule change will not 

impact FICC members or have any 

impact on competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

Written comments relating to this 

proposed rule change have not been 

solicited or received. FICC will notify 

the Commission of any written 

comments received by FICC. 

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) 

of the Act 25 and paragraph (f) of Rule 

19b–4 thereunder.26 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– 

FICC–2017–019 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE., 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–FICC–2017–019. 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 FICC and on DTCC’s Web site 

(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–FICC– 

2017–019 and should be submitted on 

or before September 28, 2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–18936 Filed 9–6–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81510; File No. SR– 

BatsBZX–2017–53] 

Self-Regulatory Organizations; Bats 

BZX Exchange, Inc.; Notice of Filing of 

a Proposed Rule Change To List and 

Trade Shares of the WisdomTree 

CBOE Russell 2000 PutWrite Strategy 

Fund, a Series of the WisdomTree 

Trust, Under Rule 14.11(c)(3), Index 

Fund Shares 

August 31, 2017. 

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 August 

18, 2017, Bats BZX Exchange, Inc. 

(‘‘Exchange’’ or ‘‘BZX’’) 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 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 list 

and trade shares of the WisdomTree 

CBOE Russell 2000 PutWrite Strategy 

Fund, a series of the WisdomTree Trust, 

under Rule 14.11(c)(3) (‘‘Index Fund 

Shares’’). The text of the proposed rule 

change is available at the Exchange’s 

Web site at www.bats.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 

mstockstill on DSK30JT082PROD with NOTICES