[Federal Register Volume 82, Number 182 (Thursday, September 21, 2017)]
[Notices]
[Pages 44234-44235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-20090]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81638; File No. SR-FICC-2017-002]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action on 
Proceedings To Determine Whether To Approve or Disapprove a Proposed 
Rule Change To Implement the Capped Contingency Liquidity Facility in 
the Government Securities Division Rulebook

September 15, 2017.
    On March 1, 2017, Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission'') 
proposed rule change SR-FICC-2017-002 (``Proposed Rule Change'') 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ to implement a Capped 
Contingency Liquidity Facility in FICC's Government Securities Division 
Rulebook.\3\ The Proposed Rule Change was published for comment in the 
Federal Register on March 20, 2017.\4\ The Commission received five 
comment letters \5\ to the Proposed Rule Change, including a response 
letter from FICC. On May 30, 2017, the Commission instituted 
proceedings under Section 19(b)(2)(B)(i) of the Act \6\ to determine 
whether to approve or disapprove the Proposed Rule Change.\7\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ FICC also filed the Proposed Rule Change as advance notice 
SR-FICC-2017-802 (``Advance Notice'') pursuant to Section 806(e)(1) 
of the Payment, Clearing, and Settlement Supervision Act of 2010, 12 
U.S.C. 5465(e)(1), and Rule 19b-4(n)(1)(i) under the Act, 17 CFR 
240.19b-4(n)(1)(i). Notice of filing of the Advance Notice was 
published for comment in the Federal Register on March 15, 2017. 
Securities Exchange Act Release No. 80191 (March 9, 2017), 82 FR 
13876 (March 15, 2017) (SR-FICC-2017-802). The Commission extended 
the deadline for its review period of the Advance Notice from April 
30, 2017 to June 29, 2017. Securities Exchange Act Release No. 80520 
(April 25, 2017), 82 FR 20404 (May 1, 2017) (SR-FICC-2017-802). The 
Commission issued a notice of no objection to the Advance Notice on 
June 29, 2017. Securities Exchange Act Release No. 81054 (June 29, 
2017), 82 FR 31356 (July 6, 2017). The proposal in the Proposed Rule 
Change and the Advance Notice shall not take effect until all 
regulatory actions required with respect to the proposal are 
completed.
    \4\ Securities Exchange Act Release No. 80234 (March 14, 2017), 
82 FR 14401 (March 20, 2017) (SR-FICC-2017-002).
    \5\ See letter from Robert E. Pooler Jr., Chief Financial 
Officer, Ronin Capital LLC (``Ronin''), dated April 10, 2017, to 
Robert W. Errett, Deputy Secretary, Commission; letter from Alan B. 
Levy, Managing Director, Industrial and Commercial Bank of China 
Financial Services LLC (``ICBC''), Philip Vandermause, Director, 
Aardvark Securities LLC (``Aardvark''), David Rutter, Chief 
Executive Officer, LiquidityEdge LLC, Robert Pooler, Chief Financial 
Officer, Ronin, Jason Manumaleuna, Chief Financial Officer and EVP, 
Rosenthal Collins Group LLC, and Scott Skyrm, Managing Director, 
Wedbush Securities Inc. (``Wedbush''); letter from Timothy J. 
Cuddihy, Managing Director, FICC, dated April 25, 2017, to Robert W. 
Errett, Deputy Secretary, Commission; letter from Robert E. Pooler 
Jr., Chief Financial Officer, Ronin, dated June 19, 2017, to Robert 
W. Errett, Deputy Secretary, Commission; and letter from Alan B. 
Levy, Managing Director, ICBC, Philip Vandermause, Director, 
Aardvark, Robert Pooler, Chief Financial Officer, Ronin, and Scott 
Skyrm, Managing Director, Wedbush, dated June 27, 2017, to Robert W. 
Errett, Deputy Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2017-002/ficc2017002.htm.
    \6\ 15 U.S.C. 78s(b)(2)(B)(i).
    \7\ See Securities Exchange Act Release No. 80812 (May 30, 
2017), 82 FR 25642 (June 2, 2017) (SR-FICC-2017-002).
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    Section 19(b)(2)(B)(ii) of the Act provides that, after initiating 
proceedings, the Commission shall issue an order approving or 
disapproving the proposed rule change not later than 180 days after the 
date of publication of notice of filing of the proposed rule change.\8\ 
The Commission may, however, extend the period for issuing an order 
approving or disapproving the proposed rule change by not more than 60 
days if the Commission determines that a longer period is appropriate 
and publishes the reasons for such determination.\9\
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    \8\ 15 U.S.C. 78s(b)(2)(B)(ii).
    \9\ Id.
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    The 180th day after publication of the notice for the Proposed Rule 
Change in the Federal Register is September 16, 2017. The Commission 
finds it appropriate to designate a longer period within which to issue 
an order approving or disapproving the Proposed Rule Change so that it 
has sufficient time to consider the Proposed Rule Change and the 
comments received. Accordingly, the Commission, pursuant to Section 
19(b)(2)(B)(ii) of the Act,\10\ designates November 15, 2017 as the 
date by which the Commission shall either approve or disapprove the 
Proposed Rule Change.
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    \10\ Id.
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    The Commission also seeks additional comment to help further inform 
its analysis of the Proposed Rule Change. Specifically, the Commission 
invites interested persons to provide views, data, and arguments 
concerning the Proposed Rule Change, including whether the Proposed 
Rule Change is consistent with the Act and the applicable rules or 
regulations thereunder. Please note that comments previously received 
on the substance of the Proposed Rule Change will be considered 
together with comments submitted in response to this notice. Therefore, 
while commenters are free to

[[Page 44235]]

submit additional comments at this time, they need not re-submit 
earlier comments. In addition, the Commission seeks comment on the 
following:
    1. The Proposed Rule Change would require each Netting Member to 
attest that its Individual Total Amount has been incorporated into its 
liquidity plans (``Attestation Requirement'').\11\ The Commission 
requests comment on the means by which the various types of Netting 
Members anticipate complying with the Proposed Rule Change, including 
the Attestation Requirement, and the expected cost (monetary or 
otherwise) of such compliance. To the extent possible, please provide 
specific data, analyses, or studies for support.
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    \11\ See Securities Exchange Act Release No. 80234 (March 14, 
2017), 82 FR 14401 (March 20, 2017) (SR-FICC-2017-002).
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    2. The Proposed Rule Change would require FICC to provide each 
Netting Member with a daily ``liquidity funding report'' to help the 
Netting Member monitor and manage the liquidity risk it presents to 
FICC. The Commission requests comment on the value of such daily 
reporting to Netting Members and the extent to which and, if so, how 
Netting Members anticipate adjusting their trading behavior or 
otherwise managing the liquidity risk they present to FICC, whether in 
reliance on the daily liquidity funding report or otherwise. Please 
explain and, to the extent possible, provide specific data, analyses, 
or studies on potential changes to trading behavior or other 
adjustments to manage liquidity obligations to FICC for support.
    a. If such adjustments would include changes in market 
participation, participation in certain market segments, or the 
quantity or price of services offered to clients, please provide 
information of such changes, in addition to any supporting data, 
analyses, or studies.
    b. If such adjustments would include deciding to clear repo 
transactions bilaterally, instead of centrally through FICC, please 
provide the rationale and factors considered in making that decision, 
in addition to any supporting data, analyses, or studies.
    Comments may be submitted by any of the following methods:

Electronic Comments

    <bullet> Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#4032352c256d232f2d2d252e3433003325236e272f36"><span class="__cf_email__" data-cfemail="0e7c7b626b236d6163636b607a7d4e7d6b6d20696178">[email protected]</span></a>. Please include 
File Number SR-FICC-2017-002 on the subject line.

Paper Comments

    <bullet> 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-FICC-2017-002. 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 FICC and on 
DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.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-2017-002 and should be 
submitted on or before October 6, 2017. Any person who wishes to file a 
rebuttal to any other person's submission must file that rebuttal on or 
before October 12, 2017.
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    \12\ 17 CFR 200.30-3(a)(57).

    For the Commission, by the Division of Trading and Markets, 
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pursuant to delegated authority.\12\

Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2017-20090 Filed 9-20-17; 8:45 am]
 BILLING CODE 8011-01-P


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