60 day notice

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Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices

office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–PEARL–2020–03 and
should be submitted on or before March
4, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.115
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02750 Filed 2–11–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736

lotter on DSKBCFDHB2PROD with NOTICES

Extension:
Rule 104, SEC File No. 270–411, OMB
Control No. 3235–0465

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 104 of Regulation
M (17 CFR 242.104), under the
Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.). The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 104—Stabilizing and Other
Activities in Connection with an
Offering—permits stabilizing by a
distribution participant during a
distribution so long as the distribution
participant discloses information to the
market and investors. This rule requires
disclosure in offering materials of the
potential stabilizing transactions and
that the distribution participant inform
the market when a stabilizing bid is
made. It also requires the distribution
participants (i.e., the syndicate manager)
to maintain information regarding
syndicate covering transactions and
penalty bids and disclose such
information to the Self-Regulatory
Organization (SRO).
115 17

CFR 200.30–3(a)(12).

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There are approximately 805
respondents per year that require an
aggregate total of 161 hours to comply
with this rule. Each respondent makes
an estimated 1 annual response. Each
response takes approximately 0.20
hours (12 minutes) to complete. Thus,
the total compliance burden per year is
161 hours. The total estimated internal
labor cost of compliance for the
respondents is approximately
$11,270.00 per year, resulting in an
estimated internal cost of compliance
for each respondent per response of
approximately $14.00 (i.e., $11,270.00/
805 respondents).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549 or send an email to: PRA_
Mailbox@sec.gov.
Dated: February 7, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02780 Filed 2–11–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 17a–22, SEC File No. 270–202, OMB
Control No. 3235–0196

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Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
provided for in Rule 17a–22 (17 CFR.
240.17a–22) under the Securities
Exchange Act of 1934 (‘‘Exchange Act’’)
(15 U.S.C. 78a et seq.). The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 17a–22 requires all registered
clearing agencies to file with the
Commission three copies of all materials
they issue or make generally available to
their participants or other entities with
whom they have a significant
relationship. The filings with the
Commission must be made within ten
days after the materials are issued or
made generally available. When the
Commission is not the clearing agency’s
appropriate regulatory agency, the
clearing agency must file one copy of
the material with its appropriate
regulatory agency.
The Commission is responsible for
overseeing clearing agencies and uses
the information filed pursuant to Rule
17a–22 to determine whether a clearing
agency is implementing procedural or
policy changes. The information filed
aides the Commission in determining
whether such changes are consistent
with the purposes of Section 17A of the
Exchange Act. Also, the Commission
uses the information to determine
whether a clearing agency has changed
its rules without reporting the actual or
prospective change to the Commission
as required under Section 19(b) of the
Exchange Act.
The respondents to Rule 17a–22 are
registered clearing agencies. The
frequency of filings made by clearing
agencies pursuant to Rule 17a–22 varies
but on average there are approximately
120 filings per year per active clearing
agency. There are nine clearing
agencies, but only seven active
registered clearing agencies that are
expected to submit filings under Rule
17a–22. The Commission staff estimates
that each response requires
approximately .25 hours (fifteen
minutes), which represents the time it
takes for a staff person at the clearing
agency to properly identify a document
subject to the rule, print and make
copies, and mail that document to the
Commission. Thus, the total annual
burden for all active clearing agencies is
approximately 210 hours (7 clearing
agencies multiplied by 120 filings per
clearing agency multiplied by .25
hours).

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Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; and
(d) ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted in
writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: February 7, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–02778 Filed 2–11–20; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88136; File No. SR–ICEEU–
2019–019]

Self-Regulatory Organizations; ICE
Clear Europe Limited; Order Approving
Proposed Rule Change Relating to the
ICE Clear Europe Collateral and
Haircut Policy and Collateral and
Haircut Procedures

lotter on DSKBCFDHB2PROD with NOTICES

February 6, 2020.

I. Introduction
On December 4, 2019, ICE Clear
Europe Limited (the ‘‘Clearing House,’’
or ‘‘ICEEU’’) 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
replace the existing Collateral and
Haircut Policy (the ‘‘Existing Policy’’),
which currently exists as a single
document, with two new documents: (i)
1 15
2 17

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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8075

A revised Collateral and Haircut Policy
(the ‘‘Revised Policy’’) that would
specify high-level policy details and (ii)
a new Collateral and Haircut Procedures
(the ‘‘Collateral Procedures’’) that would
provide supporting operational and
other details for the Revised Policy. The
proposed rule change was published for
comment in the Federal Register on
December 23, 2019.3 The Commission
did not receive comments on the
proposed rule change. For the reasons
discussed below, the Commission is
approving the proposed rule change.

itself result in material changes to the
overall purpose of the policy, the
underlying haircut model, or to the
eligible collateral, haircuts and
concentration limitations that the
Clearing House currently imposes. The
discussion below describes the
information from the Existing Policy
that is either being retained in the
Revised Policy and Collateral
Procedures or information not repeated
in these documents because they are
duplicative of information contained in
other Clearing House documents.

II. Description of the Proposed Rule
Change
ICEEU is proposing to adopt the
Revised Policy and new Collateral
Procedures, which, taken together,
would replace and supersede the
Existing Policy.4 The Existing Policy
sets out ICEEU’s overall approach to
defining the types, amounts and
composition of cash and non-cash
collateral that ICEEU accepts from
Clearing Members (‘‘CMs’’) to cover
their guaranty fund and margin
requirements. The Existing Policy also
sets out ICEEU’s overall goal of
mitigating price risk it may face when
liquidating collateral of a defaulting CM
by setting and enforcing a list of
acceptable collateral (‘‘Permitted
Cover’’); setting and applying risk-based
haircuts to the value of the collateral
(‘‘Haircuts’’); setting and enforcing
concentration limits on the amount of
collateral a CM may post, to provide
diversification of the collateral pool
(‘‘Concentration Limits’’); and ensuring
Permitted Cover, Haircuts and
Concentration Limits are aligned to the
ICEEU’s risk appetite and compliant
with applicable legal and regulatory
requirements.
The approach of the proposed rule
change is the creation of two documents
so that elements of the Existing Policy
are split between the Revised Policy and
the Collateral Procedures. The new
documents would retain the high-level
policy details from the Existing Policy
in the Revised Policy and place
supporting detail from the Existing
Policy into the new Collateral
Procedures. The amendments would
also remove certain operational details
in the Existing Policy that ICEEU has
determined are not needed in the
Revised Policy or Collateral Procedures
because they are contained in other
Clearing House documentation. Further,
the proposed rule change would not

A. Revised Policy
The Revised Policy is retaining the
high-level policy goals from the Existing
Policy related to Permitted Cover,
Haircuts, and Concentration Limits
described below.

3 Securities Exchange Act Release No. 87771
(December 17, 2019), 84 FR 70584 (December 23,
2019) (SR–ICEEU–2019–019) (‘‘Notice’’).
4 The following description of the proposed rule
change is excerpted from the Notice, 84 FR 70584.

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1. Permitted Cover
The Revised Policy would restate the
Existing Policy’s overall requirements
that Permitted Cover assets be highly
liquid with low credit and market risk;
are priced in an eligible currency; and
entail risks limited to those that ICEEU
is able to identify, measure, monitor and
mitigate. The specific list of Permitted
Cover would not be contained in the
Revised Policy (or Collateral
Procedures) itself but would continue to
be available on the ICEEU website. The
specific principles for accepting
Permitted Cover discussed in the
Existing Policy would reside the
Collateral Procedures as discussed
below.
2. Haircuts
The Revised Policy would restate the
Existing Policy’s overall requirements
that Haircuts be based on a model that
includes the creditworthiness of the
issuer; the asset’s market risk and
liquidity risk; and market conditions
and volatility. Certain details such as
those relating to the determination of
minimum haircuts discussed in the
Existing Policy would be specified in
the Collateral Procedures, or in related
model documentation. The Revised
Policy would also state the general
principal from the Existing Policy that
wrong way risk with respect to posting
of collateral (i.e., the risk that the value
of a particular CM’s collateral is likely
to decline at the same time the Clearing
House’s risk to the CM increases) would
be mitigated through member-specific
restrictions and actions rather than
Haircuts.
3. Concentration Limits
The Revised Policy would restate the
Existing Policy’s overall framework for
setting CM Concentration Limits. It

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