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lotter on DSK11XQN23PROD with NOTICES1

Federal Register / Vol. 86, No. 164 / Friday, August 27, 2021 / Notices LCH SA to satisfy the clearing members margin requirements is limited to sovereign debt that is issued by jurisdictions that have a high credit score and subject to conservative haircuts. Further, LCH SA has determined that non-Euro Eligible Collateral may be taken into account to satisfy no more than 15 percent 15%
of a clearing members total margin requirements and, importantly, will be excluded from the calculation of LCH
SAs liquidity resources.16 As such, the amendments to Section 3 of the CDS
Clearing Procedures and, in particular, the Framework continue to assure that LCH SA i maintains additional financial resources to enable it to cover a wide range of stress scenarios, and ii limits the assets that it accepts as collateral to those with low credit, liquidity and market risks and appropriately conservative haircuts and concentration limits. Therefore, the amendments are consistent with the requirements of Section 17Ab3F of the Act and Regulation 17Ad 22e4ii and Regulation 17Ad 22e5.
As noted above, Section 17Ab3F
of the Act requires, inter alia, that the rules of a clearing agency assure the safeguarding of securities and funds that are in its custody or control or for which it is responsible. 17 The amendments to the Framework unrelated to the expansion of non-Euro Eligible Collateral clarify certain Sections and update certain tables and formula. As such, the clarifications set out in the amended Framework enhance LCH SAs ability to assure the safeguarding of securities and funds that are in its custody or control or for which it is responsible. For example, the amendments clarify that: i LCH SA
generally receives Collateral on a full title transfer basis, which permits LCH
SA to use such collateral, to offset it with all related claims and to consider such Collateral available for liquidity purposes; ii Collateral deposited under the pledge regime may be used for liquidity purposes only if the clearing member pledging such Collateral has defaulted; iii LCH SA is able to perform an extraordinary margin call if liquidity deteriorates; and iv the calculation of LCR liability components include spread shifts and implied volatility shifts. The amendments to the Framework, therefore, are consistent 16 Because non-Euro Eligible Collateral may be taken into account to satisfy no more than 15
percent 15% of a clearing members total margin requirements, LCH SA has determined that specific concentration limits are unnecessary.
17 15 U.S.C. 78q1b3F.

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with the requirements of Section 17Ab3F of the Act.

Commission, 100 F Street NE, Washington, DC 205491090.

B. Clearing Agencys Statement on Burden on Competition Section 17Ab3I of the Act requires that the rules of a clearing agency not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.18 LCH SA does not believe the Proposed Rule Change would have any impact, or impose any burden, on competition. The Proposed Rule Change does not address any competitive issue or have any impact on the competition among central counterparties. LCH SA operates an open access model, and the Proposed Rule Change will have no effect on this model.

All submissions should refer to File Number SRLCH SA2021002. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commissions internet website http www.sec.gov/
rules/sro.shtml. Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commissions Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filings will also be available for inspection and copying at the principal office of LCH SA and on LCH SAs website at https www.lch.com/
resources/rulebooks/proposed-rulechanges.
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 SRLCH SA2021002
and should be submitted on or before September 17, 2021.

C. Clearing Agencys Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the Proposed Rule Change have not been solicited or received. LCH SA will notify the Commission of any written comments received by LCH SA.
III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days i as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or ii as to which the self-regulatory organization consents, the Commission will:
A By order approve or disapprove such proposed rule change, or B institute proceedings to determine whether the proposed rule change should be disapproved.
IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act.
Comments may be submitted by any of the following methods:
Use the Commissions internet comment form http www.sec.gov/
rules/sro.shtml or Send an email to rule-comments@
sec.gov. Please include File Number SR
LCH SA2021002 on the subject line.

For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.19
Jill M. Peterson, Assistant Secretary.
FR Doc. 202118459 Filed 82621; 8:45 am BILLING CODE 801101P

Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange 18 15

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