Document ID: SEC-2015-1340-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Credit, LLC
Posted Date: 2015-08-12T04:00Z

[Federal Register Volume 80, Number 155 (Wednesday, August 12, 2015)]
[Notices]
[Pages 48385-48386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19764]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75634; File No. SR-ICC-2015-012]

Self-Regulatory Organizations; ICE Clear Credit, LLC; Order 
Approving Proposed Rule Change To Correct Inconsistent Provisions 
Regarding the Risk Management Subcommittee

August 6, 2015.

I. Introduction

    On June 10, 2015, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission (``Commission''), pursuant 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 amend the ICC 
Clearing Rules (``Rules'') to correct inconsistent provisions regarding 
the Risk Management Subcommittee (SR-ICC-2015-012). The proposed rule 
change was published for comment in the Federal Register on June 22, 
2015.\3\ The Commission did not receive comments on the proposed rule 
change. For the reasons discussed below, the Commission is granting 
approval of the proposed rule change.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 34-75179 (Jun. 16, 
2015), 80 FR 35689 (Jun. 22, 2015) (SR-ICC-2015-012).
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    ICC has stated that the proposed rule change is intended to correct 
inconsistent provisions regarding the Risk Management Subcommittee, 
described in detail as follows. ICC has stated that, in describing the 
independence requirements for certain Risk Management Subcommittee 
members in Rule 511(a)(iii), the rule mistakenly referred to U.S. 
Commodity Futures Trading Commission (``CFTC'') Regulation 1.3(ccc), a 
proposed regulation that, to date, the CFTC has not adopted. ICC 
proposes revising Rule 511(a)(iii) to remove the improper reference to 
CFTC Regulation 1.3(ccc) and replace the rule cite with a reference to 
ICC's Independence Requirements, which are defined in Rule 503.
    Additionally, Independent Risk Management Subcommittee managers 
were previously defined as ``Independent Public Directors'' in Rules 
511 and 512. ICC proposes re-defining such independent Risk Management 
Subcommittee managers to ``Independent ICE Subcommittee Managers'' and 
updating references in Rules 511 and 512 to reflect the new defined 
term. ICC also proposes clarifying language to specify that such 
Independent ICE Subcommittee Managers are appointed by the ICC Board. 
Finally, ICC proposes revising Rule 512 to clarify that for purposes of 
Rule 507(a), which sets forth meeting frequency requirements, the Risk 
Management Subcommittee shall meet when deemed necessary or desirable 
by the Risk Management Subcommittee or its chairperson.

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \4\ directs the Commission to 
approve a proposed rule change of a self-regulatory organization if the 
Commission finds that such proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to such self-regulatory organization. Section 17A(b)(3)(F) 
of the Act \5\ requires, among other things, that the rules of a 
clearing agency are designed to protect investors and the public 
interest. Rule 17Ad-22(d)(8) \6\ further requires a registered clearing 
agency that performs central counterparty services to establish, 
implement, maintain and enforce written policies and procedures 
reasonably designed to, among other things, have governance 
arrangements that are clear and transparent to fulfill the public 
interest requirements in Section 17A of the Act \7\ applicable to 
clearing agencies and to promote the effectiveness of the clearing 
agency's risk management procedures.
---------------------------------------------------------------------------

    \4\ 15 U.S.C. 78s(b)(2)(C).
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
    \6\ 17 CFR 240.17Ad-22(d)(8).
    \7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    Currently, the independence requirements in ICC Rule 511 for 
certain Risk Management Subcommittee members incorrectly reference a 
CFTC regulation that has not been adopted. The proposed rule change 
would replace the incorrect CFTC rule citation with the requirement 
that certain members of the Risk Management Subcommittee meet ICC's 
Independence Requirements as defined in ICC Rule 503 \8\ (the 
Independent ICE Subcommittee Managers). Additionally, the proposed rule 
change would clarify that the Independent ICE Subcommittee Managers are 
appointed by the ICC Board. Finally, the proposed rule

[[Page 48386]]

change clarifies that the Risk Management Subcommittee shall meet when 
deemed necessary or desirable by the Risk Management Subcommittee or 
its chairperson. The Commission believes that these proposed 
clarifications are reasonably designed to ensure that ICC's governance 
arrangements are clear and transparent to fulfill the public interest 
requirements in Section 17A of the Act.\9\ Accordingly, the Commission 
finds that the proposed rule change is consistent with Section 17A of 
the Act \10\ and the rules thereunder applicable to ICC.
---------------------------------------------------------------------------

    \8\ ICC Rule 503 defines the ICC ``Independence Requirements'' 
to include the requirements of each of the New York Stock Exchange 
listing standards, the U.S. Securities Exchange Act of 1934, as 
amended, and Intercontinental Exchange, Inc.'s Board of Director 
Governance Principles.
    \9\ 15 U.S.C. 78q-1.
    \10\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
proposal is consistent with the requirements of the Act and in 
particular with the requirements of Section 17A of the Act \11\ and the 
rules and regulations thereunder.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\12\ that the proposed rule change (File No. SR-ICC-2015-012) be, 
and hereby is, approved.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(2).
    \13\ 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).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-19764 Filed 8-11-15; 8:45 am]
BILLING CODE 8011-01-P