30 Day Notice

Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices
(‘‘EOD’’) recovery rate for single name
risk factors (meaning each single name
CDS contract).6 The proposed rule
change would add text to explain how
ICC derives the EOD recovery rate from
price quotes submitted by Clearing
Members. For each single name risk
factor, the EOD recovery rate would
reflect the smaller of the standard
market convention recovery rate and the
minimum submitted EOD bid price
submitted by Clearing Members. The
proposed changes would explain that
the EOD recovery rate would be the
minimum submitted EOD bid price, and
therefore would deviate from the
standard market convention, when the
single name risk factor itself is
distressed. The proposed language
would further specify the role of the
established EOD recovery rate in using
the ISDA Standard Model for price-tospread mapping.
III. Discussion and Commission
Findings
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.7 For the
reasons discussed below, the
Commission finds that the proposed
rule change is consistent with Section
17A(b)(3)(F) of the Act 8 and Rule
17Ad–22(e)(6)(vi)(B) thereunder.9
A. Consistency With Section
17A(b)(3)(F) of the Act
Section 17A(b)(3)(F) of the Act
requires, among other things, that the
rules of ICC be designed to promote the
prompt and accurate clearance and
settlement of securities transactions.10
Based on its review of the record, and
for the reasons discussed below, the
Commission believes the proposed
changes to RPSR Policy are consistent
with the promotion of the prompt and
accurate clearance and settlement of
transactions at ICC.
The Commission believes that the
change should improve the RPSR Policy
by documenting how ICC derives the
EOD recovery rate from price quotes

khammond on DSKJM1Z7X2PROD with NOTICES

6 As

explained in ICC’s Risk Management Model
Description, every index, sub-index, or underlying
single name is deemed a Risk Factor. See SelfRegulatory Organizations; ICE Clear Credit LLC;
Order Approving Proposed Rule Change Relating to
the ICC Risk Management Model Description,
Exchange Act Release No. 91918 (May 18, 2021), 86
FR 27927 (May 24, 2021).
7 15 U.S.C. 78s(b)(2)(C).
8 15 U.S.C. 78q–1(b)(3)(F).
9 17 CFR 240.17Ad–22(e)(6)(vi)(B).
10 15 U.S.C. 78q–1(b)(3)(F).

VerDate Sep<11>2014

19:22 May 19, 2022

Jkt 256001

submitted by Clearing Members for
Univariate Level Parameters. The
Commission believes that documenting
ICC’s approach should help to ensure
that ICC derives the EOD recovery rate
and related Univariate Level Parameters
in a clear and consistent manner.
Because ICC uses the RPSR Policy to set
and review core parameters for ICC’s
risk management model, the
Commission believes that this
improvement to the RPSR should help
to ensure the continued efficacy of the
risk management model. An effective
risk management model should help to
ensure that ICC collects sufficient
margin, commensurate with the risks
presented by the transactions its clears.
The Commission thus believes the
proposed rule change should ultimately
help to ensure that ICC collects
sufficient margin, and in doing so
should help improve ICC’s ability to
avoid losses that could result during
periods of market stress. Because such
losses could disrupt ICC’s ability to
operate and thus promptly and
accurately clear and settle security
based swap transactions, the
Commission finds the proposed rule
change would promote the prompt and
accurate clearance and settlement of
securities transactions, consistent with
Section 17A(b)(3)(F) of the Act.11
B. Consistency With Rule 17Ad–
22(e)(6)(vi)(B)
Rule 17Ad–22(e)(6)(vi)(B) requires
that ICC establish, implement, maintain
and enforce written policies and
procedures reasonably designed to, as
applicable, cover its credit exposures to
its participants by establishing a riskbased margin system that, at a minimum
is monitored by management on an
ongoing basis and is regularly reviewed,
tested, and verified by conducting a
sensitivity analysis of its margin model
and a review of its parameters and
assumptions for backtesting on at least
a monthly basis, and considering
modifications to ensure the backtesting
practices are appropriate for
determining the adequacy of ICC’s
margin resources.12 As discussed above,
the proposed rule change would
document how ICC derives the EOD
recovery rate from price quotes
submitted by Clearing Members for
Univariate Level Parameters. In doing
so, the Commission believes the
proposed rule change would help to
ensure that ICC analyzes this particular
aspect of the Univariate Level
Parameters, which the RPSR Policy
requires ICC’s Risk team to estimate and
11 15
12 17

PO 00000

U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(6)(vi)(B).

Frm 00157

Fmt 4703

Sfmt 4703

31021

review, and perform sensitivity analysis
on, at least monthly. Therefore, the
Commission finds that the proposed
rule change is consistent with Rule
17Ad–22(e)(6)(vi)(B).13
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act, and in
particular, with the requirements of
Section 17A(b)(3)(F) of the Act 14 and
Rule 17Ad–22(e)(6)(vi)(B) thereunder.15
It is therefore ordered pursuant to
Section 19(b)(2) of the Act 16 that the
proposed rule change (SR–ICC–2022–
002), be, and hereby is, approved.17
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10805 Filed 5–19–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–774, OMB Control No.
3235–0727]

Submission for OMB Review;
Comment Request; Extension: Rules
400–404 of Regulation Crowdfunding
(Intermediaries)
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rules 300–304 of Regulation
Crowdfunding.1
The collections of information
required under Rules 400 through 404 is
mandatory for all funding portals. Form
13 17

CFR 240.17Ad–22(e)(6)(vi)(B).
U.S.C. 78q–1(b)(3)(F).
15 17 CFR 240.17Ad–22(e)(6)(vi)(B).
16 15 U.S.C. 78s(b)(2).
17 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).
18 17 CFR 200.30–3(a)(12).
1 See Regulation Crowdfunding, Exchange Act
Release No. 76324 (Oct. 30, 2015), 80 FR 71387
(Nov. 16, 2015) (Final Rule) (‘‘Regulation
Crowdfunding’’).
14 15

E:\FR\FM\20MYN1.SGM

20MYN1

khammond on DSKJM1Z7X2PROD with NOTICES

31022

Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices

Funding Portal helps ensure that the
Commission can make information
about funding portals transparent and
easily accessible to the investing public,
including issuers and obligated persons
who engage funding portals; investors
who may purchase securities through
offerings on funding portals; and other
regulators. Further, the information
provided on Form Funding Portal
expands the amount of publicly
available information about funding
portals, including disciplinary history.
Consequently, the rules and forms
allows issuers and the investing public,
as well as others, to become more fully
informed about funding portals in a
more efficient manner.
Rule 400 requires each person
applying for registration with the
Commission as a funding portal to file
electronically with the Commission
Form Funding Portal. Rule 400(a)
requires a funding portal to become a
member of a national securities
association registered under Section
15A of the Exchange Act. Rule 400(b)
requires a funding portal to file an
amendment to Form Funding Portal if
any information previously submitted
on Form Funding Portal becomes
inaccurate for any reason. Rule 400(c)
provides that a funding portal can
succeed to the business of a predecessor
funding portal upon the successor filing
a registration on Form Funding Portal
and the predecessor filing a withdrawal
on Form Funding Portal.
Rule 400(d) requires a funding portal
to promptly file a withdrawal of
registration on Form Funding Portal
upon ceasing to operate as a funding
portal. Rule 400(e) states that duplicate
originals of the applications and reports
provided for in this section must be
filed with surveillance personnel
designated by any registered national
securities association of which the
funding portal is a member. Rule 400(f)
requires a nonresident funding portal to:
(1) Obtain a written consent and power
of attorney appointing an agent for
service of process in the United States;
(2) furnish the Commission with the
name and address of its agent for
services of process on Schedule C of
Form Funding Portal; (3) certify that it
can, as a matter of law, and will provide
the Commission and any registered
national securities association of which
it becomes a member with prompt
access to its books and records and can,
as a matter of law, and will submit to
onsite inspection and examination by
the Commission and any registered
national securities association of which
it becomes a member; and (4) provide
the Commission with an opinion of
counsel and certify on Schedule C on

VerDate Sep<11>2014

19:22 May 19, 2022

Jkt 256001

Form Funding Portal that the firm can,
as a matter of law, provide the
Commission and registered national
securities association of which it
becomes a member with prompt access
to its books and records and can, as a
matter of law, submit to onsite
inspection and examination by the
Commission and any registered national
securities association of which it
becomes a member.2
Rule 403(a) requires a funding portal
to implement written policies and
procedures reasonably designed to
achieve compliance with the federal
securities laws and the rules and
regulations thereunder relating to its
business as a funding portal. Rule 403(b)
provides that a funding portal must
comply with privacy rules. Rule 404
requires all registered funding portals to
maintain certain books and records
relating to their funding portal
activities, for not less than five years,
the first two in an easily accessible
place. Rule 404(e) requires funding
portals to furnish promptly to the
Commission, its representatives, and the
registered national securities association
of which the funding portal is a member
true, correct, complete and current
copies of such records of the funding
portal that are requested by the
representatives of the Commission and
the registered national securities
association.
The Commission staff estimates that
annualized industry burden would be
36,775 hours to comply with Rules 400–
404. The Commission staff estimates
that the costs associated with complying
with Rules 400–404 are estimated to be
approximately a total amount of
$671,793.
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.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent by
June 21, 2022 to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
2 Exchange Act Section 3(h)(1)(C) permits us to
impose, as part of our authority to exempt funding
portals from broker registration, ‘‘such other
requirements under [the Exchange Act] as the
Commission determines appropriate.’’

PO 00000

Frm 00158

Fmt 4703

Sfmt 4703

o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].
Dated: May 16, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10817 Filed 5–19–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94915; File No. SR–
EMERALD–2022–16]

Self-Regulatory Organizations; MIAX
Emerald, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the MIAX
Emerald Fee Schedule To Adopt Fees
for the High Precision Network Time
Signal Service
May 16, 2022.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 5,
2022, MIAX Emerald, LLC (‘‘MIAX
Emerald’’ or ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
as described in Items I, II, and III, below,
which Items have been prepared by the
Exchange. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend the MIAX Emerald Fee Schedule
(the ‘‘Fee Schedule’’) to adopt fees for a
new service known as the ‘‘High
Precision Network Time Signal
Service.’’ 3
The text of the proposed rule change
is available on the Exchange’s website at
http://www.miaxoptions.com/rulefilings/emerald, at MIAX’s principal
office, and at the Commission’s Public
Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See, generally, Exchange Rule 531(d).
2 17

E:\FR\FM\20MYN1.SGM

20MYN1