Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices 49055 

13The Exchange has fulfilled this requirement. 

14 15 U.S.C. 78s(b)(3)(A). 

15 17 CFR 240.19b–4(f)(6). 

16 Id. 

17 17 CFR 240.19b–4(f)(6)(iii). 

18For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

and capital formation. See 15 U.S.C. 78c(f). 

19 15 U.S.C. 78s(b)(2)(B). 20 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

organization has given the Commission 

written notice of its intent to file the 

proposed rule change at least five 

business days prior to the date of filing 

of the proposed rule change or such 

shorter time as designated by the 

Commission,13 the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 14 and 

Rule 19b–4(f)(6) thereunder.15

A proposed rule change filed under 

Rule 19b–4(f)(6) 16 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b4(f)(6)(iii),17 the Commission 

may designate a shorter time if such 

action is consistent with the protection 

of investors and the public interest. The 

Exchange has asked the Commission to 

waive the 30-day operative delay so that 

the proposal may become operative 

immediately upon filing. The 

Commission notes that the proposed 

rule change does not present any new, 

unique or substantive issues, but rather 

is merely updating references to away 

markets in two of the Exchange’s rules 

and that waiver of the 30-day operative 

delay will help prevent potential 

confusion to market participants. 

Therefore, the Commission believes that 

waiving the 30-day operative delay is 

consistent with the protection of 

investors and the public interest and 

designates the proposed rule change as 

operative upon filing.18

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. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under Section 19(b)(2)(B) 19 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– 

IEX–2017–33 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 20549–1090. 

All submissions should refer to File 

Number SR–IEX–2017–33. This file 

number should be included in 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 will also be available for 

inspection and copying at the IEX’s 

principal office and on its Internet Web 

site at www.iextrading.com. 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–IEX–2017–33 and should 

be submitted on or before November 13, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.20

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22884 Filed 10–20–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–81892; File No. SR–ICC– 

2017–013] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing and 

Order Granting Accelerated Approval 

of Proposed Rule Change Relating to 

Changes to the ICC Clearing Rules 

October 17, 2017. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 2 notice is 

hereby given that on October 11, 2017, 

ICE Clear Credit LLC (‘‘ICC’’ or ‘‘ICE 

Clear Credit’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which Items have been prepared 

primarily by ICC. The Commission is 

publishing this notice and order to 

solicit comments on the proposed rule 

change from interested persons and to 

approve the proposed rule changes on 

an accelerated basis. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed rule change is to implement 

certain amendments to the ICC Clearing 

Rules (the ‘‘Rules’’) relating to 

implementation of Venezuela sanctions. 

II. Clearing Agency’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) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(a) Purpose 

The purpose of the proposed changes 

is to modify certain provisions of the 

Rules applicable to cleared CDS 

contracts (or components thereof) for 

which the Bolivarian Republic of 

Venezuela is a reference entity, in light 

of the sanctions (the ‘‘Venezuela 

Sanctions’’) imposed by Executive 

Order 13808 of August 24, 2017 


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49056 Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices 

3 82 FR 41155 (August 29, 2017). 

4 15 U.S.C. 78q–1. 

5 17 CFR 240.17Ad–22. 

6 15 U.S.C. 78q–1(b)(3)(F). 7 17 CFR 240.17Ad–22(d)(1). 

Imposing Additional Sanctions With 

Respect to the Situation in Venezuela 3

(the ‘‘Executive Order’’) and related 

implementing actions by the U.S. 

Treasury Department Office of Foreign 

Asset Control (‘‘OFAC’’). 

The amendments will incorporate in 

the terms and conditions for such 

contracts the Additional Provisions for 

Certain Venezuelan Entities: Excluded 

Obligations and Excluded Deliverable 

Obligations published by the 

International Swaps and Derivatives 

Association, Inc. (‘‘ISDA’’) on 

September 19, 2017 (the ‘‘Venezuela 

Additional Provisions’’). Consistent 

with the approach expected to be taken 

throughout the cleared and uncleared 

CDS market, ICE Clear Credit will make 

the Venezuela Additional Provisions 

applicable to relevant CDS contracts 

cleared by ICE Clear Credit beginning on 

the industry-wide implementation date 

(currently expected to be on or around 

October 20, 2017 (the ‘‘Additional 

Provisions Effective Date’’)). 

Among other provisions, the 

Executive Order prohibits transactions 

in or relating to certain bonds issued by 

the government of Venezuela, except to 

the extent permitted by a license issued 

by OFAC (‘‘Restricted Debt’’). The 

Venezuela Additional Provisions 

implement this prohibition by 

excluding Venezuela government bonds 

that are Restricted Debt from being 

‘‘Obligations’’ or ‘‘Deliverable 

Obligations’’ under the terms of a CDS 

contract. As such, credit events with 

respect to such Restricted Debt could 

not be used to trigger credit protection 

under a CDS contract, and such 

Restricted Debt could not be used in 

settlement of a CDS contract. Pursuant 

to the terms of the Venezuela Additional 

Provisions, these limitations would 

cease to apply upon the lifting of 

sanctions under the Executive Order. 

ICE Clear Credit understands, through 

discussions with market participants, 

that market participants generally are 

expected to adhere to a protocol 

implementing the Venezuela Additional 

Provisions for existing contracts in the 

uncleared CDS market, effective as of 

the Additional Provisions Effective 

Date. In an effort to maintain 

consistency across the CDS market, ICE 

Clear Credit plans to implement the 

amendments discussed herein as of the 

same time. 

ICE Clear Credit is amending its Rules 

to incorporate the Venezuela Additional 

Provisions into existing Contracts. ICE 

Clear Credit is amending Rule 26C–316, 

which applies to CDX.EM Contracts, an 

index CDS contract for which Venezuela 

may be an index component. New 

subsection (e) provides that all open 

positions in CDX.EM Contracts that 

have a component transaction in which 

Venezuela is a reference entity will be 

amended, effective as of the Additional 

Provisions Effective Date, such that the 

Venezuela Additional Provisions apply. 

For clarity, the amendment also updates 

the transaction terms to reference the 

updated September 2017 ISDA Credit 

Derivatives Physical Settlement Matrix 

that takes into account the Venezuela 

Additional Provisions. 

Similarly, ICE Clear Credit is 

amending Rule 26D–616, which applies 

to emerging market sovereign singlename CDS contracts. New subsection (c) 

provides that a sovereign single-name 

CDS contract referencing Venezuela will 

be amended, effective as of the 

Additional Provisions Effective Date, 

such that the Venezuela Additional 

Provisions apply. For clarity, the 

amendment also updates the transaction 

terms to reference the updated 

September 2017 ISDA Credit Derivatives 

Physical Settlement Matrix that takes 

into account the Venezuela Additional 

Provisions. 

(b) Statutory Basis 

ICE Clear Credit believes that the 

proposed amendments are 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 safeguarding of securities and funds 

in the custody or control of the clearing 

agency or for which it is responsible, 

and the protection of investors and the 

public interest. Consistent with this 

Section, the amendments revise the 

terms of single-name and index CDS 

contracts referencing Venezuela in order 

to implement the Venezuela Additional 

Provisions and comply with the relevant 

restrictions in the Executive Order. In 

ICE Clear Credit’s view, the 

amendments will therefore facilitate its 

ability to continue prompt and accurate 

clearing of such contracts, consistent 

with applicable law and the public 

interest as set out in the Executive 

Order. 

Moreover, the amendments are 

consistent with Rule 17Ad–22(d)(1), 7

which requires that each covered 

clearing agency establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

provide for a well-founded, clear, 

transparent, and enforceable legal basis 

for each aspect of its activities in all 

relevant jurisdictions. As discussed 

herein, the amendments are designed to 

facilitate compliance by ICE Clear Credit 

and its clearing participants with the 

Venezuela Sanctions imposed by the 

Executive Order, by permitting clearing 

to continue in accordance with the 

restrictions on Restricted Debt imposed 

by the Executive Order. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICE Clear Credit 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 changes will 

apply to all clearing participants and 

other market participants. The changes 

are being proposed in order to comply 

with the Executive Order and are being 

made in conjunction with an industrywide effort to amend relevant CDS 

contract terms. ICE Clear Credit does not 

believe the amendments will impact 

competition among clearing members or 

other market participants, affect the 

ability of market participants to access 

clearing generally, or affect the cost of 

clearing. ICE Clear Credit further 

believes that any impact on clearing 

results from the restrictions imposed 

under the Executive Order, and is 

necessary and appropriate to ensure 

compliance with those restrictions. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change 

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. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, security-based swap 

submission, or advance notice is 

consistent with the Act. Comments may 

be submitted by any of the following 

methods: 


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Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 / Notices 49057 

8 15 U.S.C. 78s(b)(2)(C). 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 17 CFR 240.17Ad–22(d)(1). 

11 15 U.S.C. 78q–1. 

12 15 U.S.C. 78s(b)(2)(C)(iii). 

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). 

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–2017–013 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–2017–013. 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, security-based swap 

submission, or advance notice that are 

filed with the Commission, and all 

written communications relating to the 

proposed rule change, security-based 

swap submission, or advance notice 

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–2017–013 and should 

be submitted on or before November 13, 

2017. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of the 

Proposed Rule Change 

Section 19(b)(2)(C) of the Act directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if it finds that such 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to such organization.8

Section 17A(b)(3)(F) of the Act 9

requires, among other things, that the 

rules of a registered 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, 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. Rule 

17Ad–22(d)(1) 10 requires a registered 

clearing agency that is not a covered 

clearing agency to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to 

provide for a well-founded, transparent, 

and enforceable legal framework for 

each aspect of its activities in all 

relevant jurisdictions. 

The Commission finds that the 

proposed rule change is consistent with 

Section 17A of the Act and the relevant 

rules thereunder.11 As described above, 

the proposed rule change is designed to 

amend ICC’s Rules in order to take into 

account the Venezuela Sanctions by 

incorporating the Venezuela Additional 

Provisions. As a result of the proposed 

rule changes, credit events involving 

such bonds will not be permitted to 

trigger credit protection in connection 

with a CDS contract, nor may such 

bonds be used to settle a CDS contract. 

Consequently, the proposed rule 

changes are in the public interest 

because they ensure that ICC will be 

able to continue to promptly and 

accurately clear single-name and index 

CDS contracts referencing the Bolivarian 

Republic of Venezuela in a manner that 

comports with the Venezuela Sanctions. 

Therefore, the Commission finds that 

the proposed rule changes are consistent 

with the requirements of Section 

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

In addition, by amending its Rules to 

account for the Venezuela Sanctions 

described above, the Commission 

believes ICC’s Rules will appropriately 

establish an enforceable legal framework 

with respect to the clearance of singlename and index CDS contracts 

referencing the Bolivarian Republic of 

Venezuela, and that such framework is 

transparent as ICC’s Clearing Members, 

as well as other industry participants 

generally, are aware of such sanctions 

and restrictions on the relevant 

contracts. Therefore, the Commission 

finds that the proposed rule change is 

consistent with the requirements of Rule 

17Ad–22(d)(1). 

In its filing, ICC requested that the 

Commission grant accelerated approval 

of the proposed rule change pursuant to 

Section 19(b)(2) of the Act. Under 

Section 19(b)(2)(C)(iii) of the Act,12 the 

Commission may grant accelerated 

approval of a proposed rule change if 

the Commission finds good cause for 

doing so. ICC believes that accelerated 

approval is warranted because the 

proposed rule change is designed to 

ensure that ICC can continue to clear 

single-name and index CDS referencing 

the Bolivarian Republic of Venezuela 

consistent with the terms of the 

Venezuela Sanctions, thereby promoting 

the maintenance of fair and orderly 

markets in such CDS contracts. 

The Commission finds good cause, 

pursuant to Section 19(b)(2)(C)(iii) of 

the Act, for approving the proposed rule 

change on an accelerated basis, prior to 

the 30th day after the date of 

publication in the Federal Register 

because the proposed rule change is 

intended to comply with the 

requirements set forth in an Executive 

Order binding on ICC. Moreover, the 

proposed rule change must be in place 

prior to the 30th day after the date of 

publication in the Federal Register in 

order to meet the timing of the industrywide implementation of uniform terms 

to comply with the Executive Order. 

V. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the Requirements of the 

Act and the relevant rules thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act,13 that the 

proposed rule change (File No. SR–ICC– 

2017–013) be, and hereby is, approved 

on an accelerated basis.14

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–22887 Filed 10–20–17; 8:45 am] 

BILLING CODE 8011–01–P 


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