
[Federal Register Volume 81, Number 193 (Wednesday, October 5, 2016)]
[Notices]
[Page 69122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23998]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78975]


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

September 29, 2016.

I. Introduction

    The Securities and Exchange Commission (``Commission'') is 
extending certain exemptions previously granted in connection with 
requirements applicable to security-based swap data repositories.
    On March 18, 2016, pursuant to its authority in Section 36 of the 
Securities Exchange Act of 1934 (``Exchange Act''), the Commission 
granted a temporary exemption from compliance with Exchange Act Rules 
13n-1 to 13n-12 until June 30, 2016, and at the same time extended 
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) that had been provided in the DFA Effective Date Order \1\ (``SDR 
Relief''). The Commission's March 18, 2016 order provides that the SDR 
Relief will expire on the earlier of (1) the date the Commission grants 
registration to an SDR or (2) June 30, 2016.\2\ The Commission granted 
those exemptions to help facilitate the potential submission of SDR 
applications.
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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) (``March 2016 SDR Section 36 Order'').
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    On June 30, 2016, the Commission extended the SDR Relief until 
October 5, 2016 to allow it additional time to review and consider 
issues related to the applications to register with the Commission as 
SDRs submitted by DTCC Data Repository (U.S.) LLC (``DDR'') and ICE 
Trade Vault, LLC (``ICE Trade Vault'').\3\
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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. 34-78216 (June 30, 2016), 81 FR 44379 (July 7, 2016) 
(``DDR Notice'').
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    To allow the Commission additional time to review these 
applications prior to the compliance date for Rules 13n-1 to 13n-12, as 
currently amended, (``SDR Rules'') and the expiration of the SDR 
Relief, the Commission is extending the exemptions granted in the June 
2016 order.\4\
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    \4\ This relief applies to Rules 13n-1 to 13n-12 as amended, 
including amendments to Rule 13n-4 adopted by the Commission on 
August 29, 2016. See Exchange Act Release No. 78716 (Aug. 29, 2016), 
81 FR 60585 (Sept. 2, 2016).
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II. Discussion

    The SDR Rules Release \5\ 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 laws and 
the rules and regulations thereunder (including the applicable Dodd-
Frank Act provisions and all of the SDR Rules).\6\ 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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    \5\ See Exchange Act Release No. 74246 (Feb. 11, 2015), 80 FR 
14438 (Mar. 19, 2015) (``SDR Rules Release'').
    \6\ See id., 80 FR at 14456.
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    Two entities have filed applications to register with the 
Commission as SDRs. 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.\7\ The comment period closed on May 31, 
2016. To date, the Commission has received six comment letters on the 
ICE Trade Vault application.
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    \7\ See ICE Trade Vault Notice.
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    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 July 7, 2016.\8\ The comment 
period closed on August 8, 2016. To date, the Commission has received 
four comment letters on the DDR application.
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    \8\ See DDR Notice.
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    Subject to certain exceptions, Section 36 of the Exchange Act \9\ 
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 extend the SDR Relief. The commenters on the DDR 
and ICE Trade Vault SDR applications have raised issues that require 
further review and consideration. The Commission does not believe that 
the October 5, 2016, compliance date provides sufficient time for 
adequate consideration of the comments and any possible amendments to 
the respective applications.
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    \9\ 15 U.S.C. 78mm.
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    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 first applications for registration of SDRs and consider 
issues related to those applications, 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 
April 1, 2017.

    By the Commission.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-23998 Filed 10-4-16; 8:45 am]
 BILLING CODE 8011-01-P


