SEC Extends No-Action Relief to ICE Clear Credit LLC, LCH.Clearnet, and CME

In three separate no-action letters, the SEC Division of Investment Management granted an extension of no-action relief under Investment Company Act Section 17(f) ("Custody of Securities") to any registered investment company that maintain assets in the custody of ICE Clear Credit LLC, LCH.Clearnet Limited ("LCH"), LCH.Clearnet, LLC, and Chicago Mercantile Exchange ("CME").

The SEC originally granted relief regarding these clearing agencies in three separate letters dated September 27, 2012, which stated that the SEC would not recommend action under Investment Company Act Section 17(f) against any registered investment company ("Fund") if the Fund or its custodian places and maintains cash and/or certain securities in the custody of ICE, LCH, CME, or any of their clearing members for purposes of meeting margin requirements for certain credit default swaps that are cleared by the groups. The SEC is extending these September 2012 temporary no-action assurances until December 31, 2014.

See: SEC Letter to ICE; SEC Letter to LCH; SEC Letter to CME.