80 FR 38491 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Delivery Procedures

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 128 (July 6, 2015)

[Federal Register Volume 80, Number 128 (Monday, July 6, 2015)]
[Notices]
[Pages 38491-38493]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16417]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75329; File No. SR-ICEEU-2015-012]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to the Delivery Procedures

June 29, 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 June 16, 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 prepared primarily by ICE Clear Europe. ICE Clear 
Europe filed the proposal pursuant to Section 19(b)(3)(A) of the 
Act,\3\ and Rules 19b-4(f)(4)(i) and (ii) \4\ thereunder, so that the 
proposal was effective upon filing with the Commission. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4)(i) and (ii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ICE Clear Europe proposes amendments to its Delivery Procedures 
with respect to the settlement of certain European emissions allowance 
and cocoa futures contracts that are currently traded on ICE Futures 
Europe and cleared by ICE Clear Europe. The proposed rule change also 
makes certain clarifications and updates to the Complaint Resolution 
Procedures.

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.

[[Page 38492]]

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

1. Purpose
    The purpose of the proposed rule change is to modify the ICE Clear 
Europe Delivery Procedures for certain emissions allowance and cocoa 
futures contracts traded on ICE Futures Europe and cleared by ICE Clear 
Europe, namely the ICE Futures EUA Futures Contract, ICE Futures EUA 
Daily Futures Contract, ICE Futures EUAA Auction Contract, ICE Futures 
EUAA Futures Contract, ICE Futures EUAA Auction Contract, ICE Futures 
CER Futures Contract, ICE Futures CER Futures Daily Contract and ICE 
Futures ERU Futures Contract (collectively, the ``Emissions 
Contracts''), and Financials & Softs Cocoa Futures Contracts (the 
``Cocoa Contracts''). ICE Clear Europe also proposes to make certain 
clarifications and updates to its Complaint Resolution Procedures. ICE 
Clear Europe does not otherwise propose to amend its clearing rules or 
procedures.
    The amendments to the Delivery Procedures relating to the Emissions 
Contracts adjust the deadlines for certain actions in connection with 
delivery under those contracts, including the timing of submission of 
Transfer Requests by the relevant Seller or the Clearing House, the 
timing of receipt of emissions allowances by the Clearing House and the 
Buyer, and the timing of submission of certain confirmation forms. The 
timing changes are intended to move certain aspects of the settlement 
process earlier in the day, in order to facilitate orderly settlement. 
The amendments also remove certain superfluous language prior to the 
beginning of Part A of the Delivery Procedures.
    The amendments to the Delivery Procedures for the Cocoa Contracts 
clarify the reports made available to Buyers and Sellers in the event 
there are no conversions of delivery units to be made under relevant 
exchange rules. Specifically, Sellers will have access to an account 
sale report and delivery details via Guardian or any successor system. 
Buyers will have access to an invoice report and delivery details.
    A correction is also made in the Delivery Procedures to a reference 
to a report provided in connection with the delivery of Swiss 
Government Bond Futures Contracts.
    The amendments to the Complaint Resolution Procedures eliminate an 
unnecessary reference to different categories of Clearing Members and 
update contact details for making a complaint.
2. Statutory Basis
    ICE Clear Europe believes that the proposed rule change is 
consistent with the requirements of Section 17A of the Act \5\ and the 
regulations thereunder applicable to it, and is consistent with the 
prompt and accurate clearance and settlement of securities transactions 
and, to the extent applicable, derivative agreements, contracts and 
transactions, the safeguarding of securities and funds in the custody 
or control of ICE Clear Europe or for which it is responsible and the 
protection of investors and the public interest, within the meaning of 
Section 17A(b)(3)(F) of the Act.\6\ The changes to the Delivery 
Procedures for the Emissions Contracts and Cocoa Contracts are intended 
to clarify the timing of certain requirements and update certain notice 
and report procedures. As such, ICE Clear Europe believes that the 
proposed rule change will generally enhance the operation of its 
physical settlement processes for these contracts. ICE Clear Europe is 
not otherwise changing its financial resources, risk management, 
systems and operational arrangements that support clearing of these 
contracts (and address physical delivery under these contracts). The 
changes to the Complaint Resolution Procedure consist of non-
substantive clarifications. The proposed rule change is thus consistent 
with the prompt and accurate clearance and settlement of derivative 
agreements, contracts and transactions, and with the requirements of 
Section 17A of the Act.\7\
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ 15 U.S.C. 78q-1.
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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 Act. ICE Clear Europe is adopting the 
amendments to the Delivery Procedures to clarify certain timing 
requirements in connection with physical delivery under Emissions 
Contracts, and to clarify certain other documentation requirements for 
Emissions Contracts and Cocoa Contracts. ICE Clear Europe does not 
believe that these operational changes will impose any significant 
additional costs on Clearing Members or other market participants or 
otherwise adversely affect Clearing Members or market participants. In 
particular, the changes are not expected to affect access to clearing 
in these products for Clearing Members or their customers. The changes 
will apply to all Clearing Members clearing transactions in the 
products, and accordingly are not expected to affect competition among 
Clearing Members or the market for clearing services generally.

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 amendments 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

    The foregoing proposed rule change has become effective upon filing 
pursuant to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(4)(i) 
and (ii) \9\ thereunder. The Delivery Procedure Amendments effect a 
change in an existing service of a registered clearing agency that 
primarily affects the clearing operations of the clearing agency with 
respect to products that are not securities, including futures that are 
not security futures, swaps that are not security-based swaps or mixed 
swaps, and forwards that are not security forwards, and does not 
significantly affect any securities clearing operations of the clearing 
agency or any rights or obligations of the clearing agency with respect 
to securities clearing or persons using such securities-clearing 
service. The Complaint Resolutions Procedures amendments do not 
adversely affect the safeguarding of funds or securities in the custody 
or control of ICE Clear Europe or for which it is responsible, and 
further do not significantly affect the rights and obligations of ICE 
Clear Europe or persons using its clearing service. At any time within 
60 days of the filing of the proposed rule change, the Commission 
summarily may temporarily suspend such rule change if it appears to the 
Commission that such action is necessary or appropriate in the public 
interest, for the protection of investors, or otherwise in furtherance 
of the purposes of the Act.
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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(4)(i) and (ii).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule

[[Page 38493]]

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-2015-012 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-2015-012. 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/notices/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-2015-012 and should be submitted on or before July 27, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-16417 Filed 7-2-15; 8:45 am]
 BILLING CODE 8011-01-P