80 FR 28035 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to Finance Procedures To Add Clearstream Banking as a Triparty Collateral Service Provider

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 94 (May 15, 2015)

Page Range		28035-28036
FR Document		2015-11715
Federal Register, Volume 80 Issue 94 (Friday, May 15, 2015)
[Federal Register Volume 80, Number 94 (Friday, May 15, 2015)]
[Notices]
[Pages 28035-28036]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11715]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74922; File No. SR-ICEEU-2015-009]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing of Proposed Rule Change Relating to Finance Procedures To Add 
Clearstream Banking as a Triparty Collateral Service Provider

May 11, 2015.
    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, 2015, ICE Clear Europe Limited (``ICE Clear Europe'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been primarily prepared by ICE Clear Europe. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ICE Clear Europe proposes amendments to its Finance Procedures in 
order to facilitate the use by CDS Clearing Members of Clearstream 
Banking as a triparty collateral service provider.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, ICE Clear Europe included 
statements concerning the purpose of and basis for the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. ICE Clear Europe has prepared summaries, 
set forth in sections A, B and C below, of the most significant aspects 
of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to modify the Finance 
Procedures to allow Clearstream Banking to serve as a triparty 
collateral service provider for initial or original margin provided in 
respect of all product categories, including CDS Contracts. 
(Clearstream Banking currently serves as a triparty collateral service 
provider solely for original margin provided in respect of F&O 
Contracts).
    Specifically, paragraph 3.1 of the Finance Procedures is revised to 
remove the existing restriction that Clearstream Banking may only act 
as a triparty collateral service provider with respect to Original 
Margin in respect of F&O Contracts. As a result of such change, 
Clearstream Banking would be permitted to act as a triparty collateral 
service provider for initial or original margin in respect of any 
product category, including the CDS product category. (The other 
currently authorized triparty collateral service provider, Euroclear 
Bank, is similarly eligible to act as such for any product category.) A 
correction is also made in paragraph 3.20 to provide that the specified 
instruction deadlines apply to triparty collateral arrangements with 
both Euroclear Bank and Clearstream Banking.
    ICE Clear Europe believes that the proposed rule change is 
consistent with the requirements of Section 17A of the Act \3\ and the 
regulations thereunder applicable to it. Section 17A(b)(3)(F) of the 
Act \4\ requires, among other things, that the rules of a clearing 
agency be designed to promote the prompt and accurate clearance and 
settlement of securities transactions and, to the extent applicable, 
derivative agreements, contracts, and transactions and to assure the 
safeguarding of securities and funds which are in the custody or 
control of the clearing agency or for which it is responsible.
---------------------------------------------------------------------------

    \3\ 15 U.S.C. 78q-1.
    \4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The proposed amendments are intended to extend the Clearing House's 
existing triparty collateral service to allow optional use by Clearing 
Members of Clearstream Banking as a triparty collateral service 
provider with respect to initial and original margin for the CDS (and 
FX) product categories, in

[[Page 28036]]

addition to its existing authorization for the F&O product category. 
The amendments do not otherwise change the substantive terms of the 
service. ICE Clear Europe views Clearstream Banking as substantially 
similar to Euroclear Bank, the current service provider, from an 
operational and risk perspective and otherwise in terms of the 
safeguarding of funds and securities. Clearstream Banking is currently 
authorized to act as a triparty collateral service provider with 
respect to original margin for the F&O product category, and based on 
experience in that product category ICE Clear Europe believes that use 
of Clearstream Banking can be appropriately extended to the other 
product categories. As a result, ICE Clear Europe believes that the 
proposed rule change will not adversely affect the safeguarding of 
securities or funds in the custody or control of ICE Clear Europe or 
for which it is responsible, and are therefore consistent with the 
requirements of Section 17A(b)(3)(F).\5\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed rule change would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change will provide additional flexibility to Clearing Members by 
permitting the use, on a voluntary basis, of Clearstream Banking as a 
triparty collateral service provider for original or initial margin for 
all product categories. The proposed rule change will otherwise not 
affect the terms or conditions of any cleared contract or the standards 
or requirements for participation in or use of the Clearing House. 
Accordingly, the proposed rule change should not, in the Clearing 
House's view, affect the availability of clearing, access to clearing 
services or the costs of clearing for clearing members or other market 
participants.

C. Self-Regulatory Organization's 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. ICE Clear Europe will notify the Commission of 
any written comments received by ICE Clear Europe.

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 the 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:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-ICEEU-2015-009 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2015-009. 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 Commission's Internet Web site (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 Web site viewing and 
printing in the Commission's 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 ICE Clear Europe 
and on ICE Clear Europe's Web site at https://www.theice.com/clear-europe/regulation. All comments received will be posted without change; 
the Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
ICEEU-2015-009 and should be submitted on or before June 5, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
---------------------------------------------------------------------------

    \6\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11715 Filed 5-14-15; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 80, No. 94 / Friday, May 15, 2015 / Notices 28035

will be engaged to represent the will be submitted to the Subadvised summaries, set forth in sections A, B
Independent Trustees. The selection of Fund’s shareholders (or, if the and C below, of the most significant
such counsel will be within the Subadvised Fund serves as a funding aspects of such statements.
discretion of the then-existing medium for any sub-account of a
A. Self-Regulatory Organization’s
Independent Trustees. registered separate account, the Adviser
8. The Adviser will provide the Statement of the Purpose of, and
will inform the unitholders of the sub-
applicable Board, no less frequently Statutory Basis for, the Proposed Rule
account) for approval.
than quarterly, with information about Change
For the Commission, by the Division of
the profitability of the Adviser on a per Investment Management, under delegated The purpose of the proposed rule
Subadvised Fund basis. The information authority. change is to modify the Finance
will reflect the impact on profitability of Robert W. Errett, Procedures to allow Clearstream
the hiring or termination of any Deputy Secretary.
Banking to serve as a triparty collateral
Subadviser during the applicable service provider for initial or original
[FR Doc. 2015–11730 Filed 5–14–15; 8:45 am]
quarter. margin provided in respect of all
BILLING CODE 8011–01–P
9. Whenever a Subadviser is hired or product categories, including CDS
terminated, the Adviser will provide the Contracts. (Clearstream Banking
applicable Board with information currently serves as a triparty collateral
SECURITIES AND EXCHANGE
showing the expected impact on the service provider solely for original
COMMISSION
profitability of the Adviser. margin provided in respect of F&O
10. Whenever a Subadviser change is [Release No. 34–74922; File No. SR–ICEEU– Contracts).
proposed for a Subadvised Fund with 2015–009] Specifically, paragraph 3.1 of the
an Affiliated Subadviser or a Wholly- Finance Procedures is revised to remove
Owned Subadviser, the applicable Self-Regulatory Organizations; ICE the existing restriction that Clearstream
Board, including a majority of the Clear Europe Limited; Notice of Filing Banking may only act as a triparty
Independent Trustees, will make a of Proposed Rule Change Relating to collateral service provider with respect
separate finding, reflected in the Finance Procedures To Add to Original Margin in respect of F&O
applicable Board minutes, that the Clearstream Banking as a Triparty Contracts. As a result of such change,
change is in the best interests of the Collateral Service Provider Clearstream Banking would be
Subadvised Fund and its shareholders May 11, 2015. permitted to act as a triparty collateral
and does not involve a conflict of Pursuant to Section 19(b)(1) of the service provider for initial or original
interest from which the Adviser or the Securities Exchange Act of 1934 margin in respect of any product
Affiliated Subadviser or Wholly-Owned (‘‘Act’’) 1 and Rule 19b–4 thereunder 2 category, including the CDS product
Subadviser derives an inappropriate notice is hereby given that on May 5, category. (The other currently
advantage. 2015, ICE Clear Europe Limited (‘‘ICE authorized triparty collateral service
11. No Trustee or officer of a Clear Europe’’) filed with the Securities provider, Euroclear Bank, is similarly
Subadvised Fund, or director, manager and Exchange Commission eligible to act as such for any product
or officer of the Adviser, will own (‘‘Commission’’) the proposed rule category.) A correction is also made in
directly or indirectly (other than change as described in Items I, II, and paragraph 3.20 to provide that the
through a pooled investment vehicle III below, which Items have been specified instruction deadlines apply to
that is not controlled by such person), primarily prepared by ICE Clear Europe. triparty collateral arrangements with
any interest in a Subadviser except for The Commission is publishing this both Euroclear Bank and Clearstream
(a) ownership of interests in the Adviser notice to solicit comments on the Banking.
or any entity, other than a Wholly- proposed rule change from interested ICE Clear Europe believes that the
Owned Subadviser, that controls, is persons. proposed rule change is consistent with
controlled by or is under common the requirements of Section 17A of the
control with the Adviser, or (b) I. Self-Regulatory Organization’s Act 3 and the regulations thereunder
ownership of less than 1% of the Statement of the Terms of Substance of applicable to it. Section 17A(b)(3)(F) of
outstanding securities of any class of the Proposed Rule Change the Act 4 requires, among other things,
equity or debt of a publicly-traded ICE Clear Europe proposes that the rules of a clearing agency be
company that is either a Subadviser or amendments to its Finance Procedures designed to promote the prompt and
an entity that controls, is controlled by, in order to facilitate the use by CDS accurate clearance and settlement of
or is under common control with a Clearing Members of Clearstream securities transactions and, to the extent
Subadviser. Banking as a triparty collateral service applicable, derivative agreements,
12. Each Subadvised Fund will provider. contracts, and transactions and to assure
disclose in its registration statement the the safeguarding of securities and funds
Aggregate Fee Disclosure. II. Self-Regulatory Organization’s which are in the custody or control of
13. In the event that the Commission Statement of the Purpose of, and the clearing agency or for which it is
adopts a rule under the Act providing Statutory Basis for, the Proposed Rule responsible.
substantially similar relief to that Change The proposed amendments are
requested in the application, the In its filing with the Commission, ICE intended to extend the Clearing House’s
requested order will expire on the Clear Europe included statements existing triparty collateral service to
mstockstill on DSK4VPTVN1PROD with NOTICES

effective date of that rule. concerning the purpose of and basis for allow optional use by Clearing Members
14. Any new Subadvisory Agreement the proposed rule change. The text of of Clearstream Banking as a triparty
or any amendment to a Subadvised these statements may be examined at collateral service provider with respect
Fund’s existing investment advisory the places specified in Item IV below. to initial and original margin for the
agreement or Subadvisory Agreement ICE Clear Europe has prepared CDS (and FX) product categories, in
that directly or indirectly results in an
increase in the aggregate advisory fee 1 15 U.S.C. 78s(b)(1). 3 15 U.S.C. 78q–1.
rate payable by the Subadvised Fund 2 17 CFR 240.19b–4. 4 15 U.S.C. 78q–1(b)(3)(F).

VerDate Sep<11>2014 18:20 May 14, 2015 Jkt 235001 PO 00000 Frm 00151 Fmt 4703 Sfmt 4703 E:\FR\FM\15MYN1.SGM 15MYN1
28036 Federal Register / Vol. 80, No. 94 / Friday, May 15, 2015 / Notices

addition to its existing authorization for III. Date of Effectiveness of the inspection and copying at the principal
the F&O product category. The Proposed Rule Change and Timing for office of ICE Clear Europe and on ICE
amendments do not otherwise change Commission Action Clear Europe’s Web site at https://
the substantive terms of the service. ICE Within 45 days of the date of www.theice.com/clear-europe/
Clear Europe views Clearstream Banking publication of this notice in the Federal regulation. All comments received will
as substantially similar to Euroclear Register or within such longer period be posted without change; the
Bank, the current service provider, from up to 90 days (i) as the Commission may Commission does not edit personal
an operational and risk perspective and identifying information from
designate if it finds such longer period
otherwise in terms of the safeguarding submissions. You should submit only
to be appropriate and publishes its
of funds and securities. Clearstream information that you wish to make
reasons for so finding or (ii) as to which
available publicly. All submissions
Banking is currently authorized to act as the self-regulatory organization
should refer to File Number SR–ICEEU–
a triparty collateral service provider consents, the Commission will:
2015–009 and should be submitted on
with respect to original margin for the (A) By order approve or disapprove
or before June 5, 2015.
F&O product category, and based on the proposed rule change or
(B) institute proceedings to determine For the Commission, by the Division of
experience in that product category ICE
whether the proposed rule change Trading and Markets, pursuant to delegated
Clear Europe believes that use of authority.6
Clearstream Banking can be should be disapproved.
Robert W. Errett,
appropriately extended to the other IV. Solicitation of Comments Deputy Secretary.
product categories. As a result, ICE
Interested persons are invited to [FR Doc. 2015–11715 Filed 5–14–15; 8:45 am]
Clear Europe believes that the proposed
submit written data, views, and BILLING CODE 8011–01–P
rule change will not adversely affect the arguments concerning the foregoing,
safeguarding of securities or funds in including whether the proposed rule
the custody or control of ICE Clear change is consistent with the Act. SECURITIES AND EXCHANGE
Europe or for which it is responsible, Comments may be submitted by any of COMMISSION
and are therefore consistent with the the following methods:
requirements of Section 17A(b)(3)(F).5 Submission for OMB Review;
Electronic Comments Comment Request
B. Self-Regulatory Organization’s
• Use the Commission’s Internet Upon Written Request, Copies Available
Statement on Burden on Competition
comment form (http://www.sec.gov/ From: Securities and Exchange
ICE Clear Europe does not believe the rules/sro.shtml); or Commission, Office of FOIA Services,
proposed rule change would have any • Send an email to rule-comments@ 100 F Street NE., Washington, DC
impact, or impose any burden, on sec.gov. Please include File Number SR– 20549–2736.
competition not necessary or ICEEU–2015–009 on the subject line.
Extension:
appropriate in furtherance of the Paper Comments Form N–6, SEC File No. 270–446, OMB
purposes of the Act. The proposed rule Control No. 3235–0503.
• Send paper comments in triplicate
change will provide additional to Secretary, Securities and Exchange Notice is hereby given that, pursuant
flexibility to Clearing Members by Commission, 100 F Street NE., to the Paperwork Reduction Act of 1995
permitting the use, on a voluntary basis, Washington, DC 20549–1090. (44 U.S.C. 3501 et seq.), the Securities
of Clearstream Banking as a triparty and Exchange Commission (the
All submissions should refer to File ‘‘Commission’’) has submitted to the
collateral service provider for original or
Number SR–ICEEU–2015–009. This file Office of Management and Budget a
initial margin for all product categories. number should be included on the
The proposed rule change will request for extension of the previously
subject line if email is used. To help the approved collection of information
otherwise not affect the terms or Commission process and review your
conditions of any cleared contract or the discussed below.
comments more efficiently, please use The title for the collection of
standards or requirements for only one method. The Commission will information is ‘‘Form N–6 (17 CFR
participation in or use of the Clearing post all comments on the Commission’s 239.17c and 274.11d) under the
House. Accordingly, the proposed rule Internet Web site (http://www.sec.gov/ Securities Act of 1933 (15 U.S.C. 77a et
change should not, in the Clearing rules/sro.shtml). Copies of the seq.) and under the Investment
House’s view, affect the availability of submission, all subsequent Company Act of 1940 (15 U.S.C. 80a–1
clearing, access to clearing services or amendments, all written statements et seq.) registration statement of separate
the costs of clearing for clearing with respect to the proposed rule accounts organized as unit investment
members or other market participants. change that are filed with the trusts that offer variable life insurance
Commission, and all written policies.’’ Form N–6 is the form used by
C. Self-Regulatory Organization’s communications relating to the
Statement on Comments on the insurance company separate accounts
proposed rule change between the organized as unit investment trusts that
Proposed Rule Change Received From Commission and any person, other than offer variable life insurance contracts to
Members, Participants or Others those that may be withheld from the register as investment companies under
Written comments relating to the public in accordance with the the Investment Company Act of 1940
mstockstill on DSK4VPTVN1PROD with NOTICES

provisions of 5 U.S.C. 552, will be and/or to register their securities under
proposed rule change have not been
available for Web site viewing and the Securities Act of 1933. The primary
solicited or received. ICE Clear Europe
printing in the Commission’s Public purpose of the registration process is to
will notify the Commission of any Reference Room, 100 F Street NE., provide disclosure of financial and
written comments received by ICE Clear Washington, DC 20549, on official other information to investors and
Europe. business days between the hours of potential investors for the purpose of
10:00 a.m. and 3:00 p.m. Copies of such
5 15 U.S.C. 78q–1(b)(3)(F). filings will also be available for 6 17 CFR 200.30–3(a)(12).

VerDate Sep<11>2014 18:20 May 14, 2015 Jkt 235001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 E:\FR\FM\15MYN1.SGM 15MYN1
Document Created: 2018-02-21 10:27:55
Document Modified: 2018-02-21 10:27:55
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		80 FR 28035