
[Federal Register Volume 81, Number 130 (Thursday, July 7, 2016)]
[Notices]
[Pages 44337-44338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-16073]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78215]


Order Extending a Temporary Exemption From Compliance With Rules 
13n-1 to 13n-12 Under the Securities Exchange Act of 1934

June 30, 2016.

I. Introduction

    On March 18, 2016, under its authority in Section 36 of the 
Securities Exchange Act of 1934 (``Exchange Act''), the Securities and 
Exchange Commission (``Commission'') granted a temporary exemption from 
compliance with Rules 13n-1 to 13n-12 (``SDR Rules'') until June 30, 
2016. The Commission also granted an extension of the exemptions from 
Exchange Act Sections 13(n)(5)(D)(i), 13(n)(5)(F), 13(n)(5)(G), 
13(n)(5)(H), 13(n)(7)(A), 13(n)(7)(B), 13(n)(7)(C) and 29(b) provided 
in the DFA Effective Date Order \1\ (``SDR Relief''), as described in 
the Commission's March 18, 2016 order, such that the SDR Relief will 
expire on the earlier of (1) the date the Commission grants 
registration to an SDR and (2) June 30, 2016.\2\ The Commission granted 
the exemptions to help facilitate the potential submission of any SDR 
applications at the time.
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    \1\ See Temporary Exemptions and Other Temporary Relief, 
Together with Information on Compliance Dates for New Provisions of 
the Exchange Act Applicable to Security-Based Swaps, Exchange Act 
Release No. 64678 (June 15, 2011), 76 FR 36287 (June 22, 2011) (the 
``DFA Effective Date Order'').
    \2\ See Exchange Act Release No. 77400 (Mar. 18, 2016), 81 FR 
15599 (Mar. 23, 2016) (``SDR Section 36 Order'').
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    Since March 18, 2016, two entities have filed applications to 
register with the Commission as SDRs.\3\ To allow the Commission 
additional time to review these applications prior to the compliance 
date for the SDR Rules and the expiration of the SDR Relief, the 
Commission is extending the exemptions granted in the March 18, 2016 
order.
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    \3\ See Exchange Act Release No. 77699 (Apr. 22, 2016), 81 FR 
25475 (Apr. 28, 2016) (``ICE Trade Vault Notice'') and Exchange Act 
Release No. xxxx (xx, 2016), xx FR xxxx (xx, 2016) (``DDR Notice'').
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II. Discussion

    The SDR Rules Release \4\ states that SDRs were required to be in 
compliance with the SDR Rules by March 18, 2016. The SDR Rules Release 
also notes that, absent an exemption, any SDR must be registered with 
the Commission and in compliance with the federal securities

[[Page 44338]]

laws and the rules and regulations thereunder (including the applicable 
Dodd-Frank Act provisions and all of the SDR Rules) by March 18, 
2016.\5\
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    \4\ See Exchange Act Release No. 74246 (Feb. 11, 2015), 80 FR 
14438 (Mar. 19, 2015) (``SDR Rules Release'').
    \5\ See id., 80 FR at 14456. The SDR Rules Release also notes 
that all exemptions that the Commission provided in a previous 
release, including the exemption to provisions in Exchange Act 
Section 13(n), will expire on the March 18, 2016 compliance date. 
See id. (discussing the ``DFA Effective Date Order).
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    Since March 18, 2016, two entities have filed applications to 
register with the Commission as SDRs. ICE Trade Vault, LLC (``ICE Trade 
Vault'') filed with the Commission a Form SDR seeking registration as 
an SDR on March 29, 2016 and amended that form on April 18, 2016. The 
Commission's notice of ICE Trade Vault's application for registration 
as an SDR was published in the Federal Register on April 28, 2016.\6\ 
DTCC Data Repository (U.S.) LLC (``DDR'') filed with the Commission a 
Form SDR seeking registration as an SDR on April 6, 2016 and amended 
that form on April 25, 2016. The Commission's notice of DDR's 
application for registration as an SDR was published in the Federal 
Register on [X, 2016].\7\ Rule 13n-1(c) provides that, within 90 days 
of the date of the publication of notice of the filing of an 
application for registration (or within such longer period as to which 
the applicant consents), the Commission will either grant the 
registration by order or institute proceedings to determine whether 
registration should be granted or denied.
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    \6\ See ICE Trade Vault Notice.
    \7\ See DDR Notice.
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    Subject to certain exceptions, Section 36 of the Exchange Act \8\ 
authorizes the Commission, by rule, regulation, or order, to exempt, 
either conditionally or unconditionally, any person, security, or 
transaction, or any class or classes of persons, securities, or 
transactions, from any provision or provisions of the Exchange Act or 
any rule or regulation thereunder, to the extent that such exemption is 
necessary or appropriate in the public interest, and is consistent with 
the protection of investors. The Commission finds that it is necessary 
and appropriate in the public interest, and consistent with the 
protection of investors, to grant a temporary exemption from compliance 
with the SDR Rules and an extension of the SDR Relief. The applications 
filed by ICE Trade Vault and DDR are the first SDR applications 
submitted to the Commission and therefore present issues of first 
impression for the Commission's consideration. Therefore, to allow the 
Commission additional time prior to the compliance date for the SDR 
Rules and the expiration of the SDR Relief to review the applications 
and consider issues related to the first applications for registration 
of SDRs, the Commission hereby grants, pursuant to Section 36 of the 
Exchange Act, a temporary exemption from compliance with the SDR Rules 
and an extension of the SDR Relief until [X, 2016], which is 90 days 
from publication of notice of DDR's application for registration as a 
SDR.
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    \8\ 15 U.S.C. 78mm.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2016-16073 Filed 7-6-16; 8:45 am]
 BILLING CODE 8011-01-P


