Document ID: SEC-2013-1099-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Fixed Income Clearing Corp.
Posted Date: 2013-06-19T04:00Z

[Federal Register Volume 78, Number 118 (Wednesday, June 19, 2013)]
[Notices]
[Pages 36797-36798]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-14535]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-69754; File No. SR-FICC-2013-02]

Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action on 
Proposed Rule Change To Include Options on Interest Rate Futures 
Contracts With Maturities Not Longer Than Two Years in the One-Pot 
Cross-Margining Program Between the Government Securities Division and 
New York Portfolio Clearing, LLC

June 13, 2013.
    On April 15, 2013, the Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission''), 
pursuant

[[Page 36798]]

to Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') 
\1\ and Rule 19b-4 thereunder,\2\ a proposed rule change to include 
options on interest rate futures contracts with maturities not longer 
than two years in the one-pot cross-margining program between the 
Government Securities Division (``GSD'') and New York Portfolio 
Clearing, LLC (``NYPC'').\3\ The proposed rule change was published for 
public comment in the Federal Register on May 3, 2013.\4\ The 
Commission has received no comment letters regarding the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ NYPC is jointly owned by NYSE Euronext and The Depository 
Trust & Clearing Corporation.
    \4\ See Securities Exchange Act Release No. 69470 (April 29, 
2013), 78 FR 26093-01 (May 3, 2013) (SR-FICC-2013-02).
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    Section 19(b)(2)(A) of the Act \5\ provides that, within 45 days of 
the date of publication of notice of the filing of a proposed rule 
change in the Federal Register, or within such longer period up to 90 
days as the Commission may designate if it finds such longer period to 
be appropriate and publishes its reasons for so finding, the Commission 
shall either approve or disapprove the proposed rule change, or 
institute proceedings to determine whether the proposed rule change 
should be disapproved. The forty-fifth day after publication of notice 
of this proposed rule change is Monday, June 17, 2013.
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    \5\ 15 U.S.C. 78s(b)(2)(A).
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    As noted, the proposed rule change would allow FICC to include 
options on interest rate futures contracts with maturities not longer 
than two years in the one-pot cross-margining program between the GSD 
and NYPC. In the proposed rule change, FICC acknowledged that it will 
have to alter its risk management framework to account for the non-
linear risks presented by options on interest rate futures.\6\ The 
Commission deems it appropriate to designate a longer time period 
within which to take action on the proposed rule change so that it has 
sufficient time to evaluate the risk management implications of the 
proposed rule change.
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    \6\ See Securities Exchange Act Release No. 69470 (April 29, 
2013), 78 FR 26093-01, 26094 (May 3, 2013) (SR-FICC-2013-02).
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    Accordingly, pursuant to Section 19(b)(2)(A)(ii)(I) of the Act,\7\ 
the Commission designates Thursday, August 1, 2013 as the date by which 
the Commission should either approve, disapprove, or institute 
proceedings to determine whether to disapprove the proposed rule change 
(SR-FICC-2013-02).
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    \7\ 15 U.S.C. 78s(b)(2)(A)(ii)(I).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
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    \8\ 17 CFR 200.30-3(a)(31).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-14535 Filed 6-18-13; 8:45 am]
BILLING CODE 8011-01-P