Document ID: SEC-2017-0699-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Fixed Income Clearing Corp.
Posted Date: 2017-05-01T04:00Z

[Federal Register Volume 82, Number 82 (Monday, May 1, 2017)]
[Notices]
[Pages 20404-20405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08698]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80520; File No. SR-FICC-2017-802]

Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Extension of Review Period of Advance Notice To Implement the 
Capped Contingency Liquidity Facility in the Government Securities 
Division Rulebook

April 25, 2017.
    On March 1, 2017, Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission'') 
advance notice SR-FICC-2017-802 (``Advance

[[Page 20405]]

Notice'') pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act, entitled the Payment, 
Clearing, and Settlement Supervision Act of 2010 (``Clearing 
Supervision Act'') \1\ and Rule 19b-4(n)(1)(i) under the Securities 
Exchange Act of 1934 (``Exchange Act'').\2\ The Advance Notice was 
published for comment in the Federal Register on March 15, 2017.\3\ The 
Commission received one comment on the proposal contained in the 
Advance Notice.\4\
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    \1\ 12 U.S.C. 5465(e)(1). The Financial Stability Oversight 
Council designated FICC a systemically important financial market 
utility on July 18, 2012. See Financial Stability Oversight Council 
2012 Annual Report, Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, FICC is 
required to comply with the Payment, Clearing and Settlement 
Supervision Act and file advance notices with the Commission. See 12 
U.S.C. 5465(e).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ Securities Exchange Act Release No. 80191 (March 9, 2017), 
82 FR 13876 (March 15, 2017) (SR-FICC-2017-802). FICC also filed a 
related proposed rule change (SR-FICC-2017-002) with the Commission 
pursuant to Section 19(b)(1) of the Exchange Act and Rule 19b-4 
thereunder, seeking approval of changes to its rules necessary to 
implement the Advance Notice (``Proposed Rule Change''). 15 U.S.C. 
78s(b)(1) and 17 CFR 240.19b-4, respectively. The Proposed Rule 
Change was published in the Federal Register on March 20, 2017. 
Securities Exchange Act Release No. 80234 (March 14, 2017), 82 FR 
14401 (March 20, 2017) (SR-FICC-2017-002).
    \4\ See letter from Robert E. Pooler, Chief Financial Officer, 
Ronin Capital LLC, dated April 10, 2017, to Robert W. Errett, Deputy 
Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2017-002/ficc2017002-1694243-149787.pdf. Because the proposals 
contained in the Advance Notice and Proposed Rule Change raise the 
same substantive issues, supra note 3, the Commission is considering 
all public comments received on the proposal regardless of whether 
the comments were submitted to the Advance Notice or the Proposed 
Rule Change.
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    Section 806(e)(1)(G) of the Clearing Supervision Act provides that 
FICC may implement the changes if it has not received an objection to 
the proposed changes within 60 days of the later of (i) the date that 
the Commission receives the Advance Notice or (ii) the date that any 
additional information requested by the Commission is received,\5\ 
unless extended as described below.
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    \5\ 12 U.S.C. 5465(e)(1)(G).
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    Pursuant to Section 806(e)(1)(H) of the Clearing Supervision Act, 
the Commission may extend the review period of an advance notice for an 
additional 60 days, if the changes proposed in the advance notice raise 
novel or complex issues, subject to the Commission providing the 
clearing agency with prompt written notice of the extension.\6\
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    \6\ 12 U.S.C. 5465(e)(1)(H).
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    Here, as the Commission has not requested any additional 
information, the date that is 60 days after FICC filed the Advance 
Notice with the Commission is April 30, 2017. However, the Commission 
finds the Advance Notice complex because the material aspects of the 
proposal are detailed, substantial, and are interrelated with other 
risk management practices at FICC, and therefore finds it appropriate 
to extend the review period of the Advance Notice for an additional 60 
days under Section 806(e)(1)(H) of the Clearing Supervision Act.\7\
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    \7\ Id.
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    Accordingly, the Commission, pursuant to Section 806(e)(1)(H) of 
the Clearing Supervision Act,\8\ extends the review period for an 
additional 60 days so that the Commission shall have until June 29, 
2017 to issue an objection or non-objection to the Advance Notice (File 
No. SR-FICC-2017-802).
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    \8\ Id.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-08698 Filed 4-28-17; 8:45 am]
 BILLING CODE 8011-01-P