80 FR 60944 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Clearance of New Natural Gas Futures Contracts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 195 (October 8, 2015)

Page Range		60944-60946
FR Document		2015-25599

Federal Register, Volume 80 Issue 195 (Thursday, October 8, 2015)

[Federal Register Volume 80, Number 195 (Thursday, October 8, 2015)]
[Notices]
[Pages 60944-60946]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2015-25599]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76069; File No. SR-ICEEU-2015-016]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Clearance of New Natural Gas Futures Contracts

October 2, 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 September 18, 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. ICE Clear
Europe filed the proposal pursuant to section 19(b)(3)(A) of the
Act,\3\ and Rules 19b-4(f)(4)(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)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

The principal purpose of the proposed rule change is to modify the
ICE Clear Europe Delivery Procedures with respect to the settlement of
certain European natural gas futures contracts that will be traded on
the ICE Endex market and cleared by ICE Clear Europe.

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 60945]]

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 in connection with the launch by the ICE
Endex market of new natural gas futures contracts that will be cleared
by ICE Clear Europe, namely the ICE Endex Italian PSV Natural Gas
Futures Contracts (the ``PSV Natural Gas Contracts''). ICE Clear Europe
does not otherwise propose to amend its clearing rules or procedures in
connection with the PSV Natural Gas Contracts.
The amendments adopt a new part AA to the Delivery Procedures,
applicable to the PSV Natural Gas Contracts. The amendments provide,
among other matters, specifications for delivery of natural gas under a
PSV Natural Gas Contract, including relevant definitions and a detailed
delivery timetable for the contracts. The amendments also address
invoicing and payment for delivery. The amendments provide for
calculation by ICE Clear Europe of buyer's and seller's security to
cover delivery obligations and related liabilities, costs or charges,
as well as procedures to address failed deliveries. The revised
procedures also set out various documentation requirements for the
relevant parties. In addition, changes are made to paragraph 5.1 of the
Delivery Procedures to include the PSV Natural Gas Contracts in the
list of contracts for which parties may nominate transferors and
transferees to make and take delivery.
2. Statutory Basis
ICE Clear Europe believes that the changes described herein are
consistent with the requirements of section 17A of the Act \5\ and the
regulations thereunder applicable to it, including the standards under
Rule 17Ad-22.\6\ Specifically, the amendments are consistent with the
prompt and accurate clearance of 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.\7\ The PSV
Natural Gas Contracts have similar characteristics to other ICE Endex
natural gas contracts currently cleared by ICE Clear Europe, and ICE
Clear Europe believes that its existing financial resources, risk
management, systems and operational arrangements are sufficient to
support clearing of such products (and to address physical delivery
under such contracts).
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\5\ 15 U.S.C. 78q-1.
\6\ 17 CFR 240.17Ad-22.
\7\ 15 U.S.C. 78q-1(b)(3)(F).
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Specifically, ICE Clear Europe believes that it will be able to
manage the risks associated with acceptance of the PSV Natural Gas
Contracts for clearing and physical delivery in such contracts. The PSV
Natural Gas Contracts present a similar risk profile to other ICE Endex
contracts currently cleared by ICE Clear Europe, and ICE Clear Europe
believes that its existing risk management and margin framework is
sufficient for purposes of risk management of the PSV Natural Gas
Contracts and related deliveries. Similarly, ICE Clear Europe has
established appropriate standards for determining the eligibility of
contracts submitted to the clearinghouse for clearing, and ICE Clear
Europe believes that its existing systems are appropriately scalable to
handle the PSV Natural Gas Contracts, which are generally similar from
an operational perspective to the other ICE Endex power contracts
currently cleared by ICE Clear Europe.
For the reasons noted above, ICE Clear Europe believes that the
proposed rule change is consistent with the requirements of section 17A
of the Act and regulations thereunder applicable to it.

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

ICE Clear Europe does not believe the proposed changes to the rules
would have any impact, or impose any burden, on competition not
necessary or appropriate in furtherance of the purpose of the Act. ICE
Clear Europe is adopting the amendments to the Delivery Procedures
principally in connection with the listing of new contracts for trading
on the ICE Endex market. ICE Clear Europe believes that such contracts
will provide additional opportunities for interested market
participants to engage in trading activity relating to the relevant
underlying gas markets. ICE Clear Europe does not believe the adoption
of related Delivery Procedures amendments would adversely affect access
to clearing for clearing members or their customers, or otherwise
adversely affect competition in clearing services.

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 changes to the rules 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 rule change has become effective upon filing pursuant
to section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\
thereunder because it effects 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. 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)(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
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 rule-comments@sec.gov. Please include
File Number SR-ICEEU-2015-016 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.

[[Page 60946]]

All submissions should refer to File Number SR-ICEEU-2015-016. 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#rule-filings.
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-2015-016
and should be submitted on or before October 29, 2015.
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\10\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
Brent J. Fields,
Secretary.
[FR Doc. 2015-25599 Filed 10-7-15; 8:45 am]
BILLING CODE 8011-01-P

60944 Federal Register / Vol. 80, No. 195 / Thursday, October 8, 2015 / Notices

FRB. As discussed above, the proposed including whether the proposed rule SECURITIES AND EXCHANGE
rule change is merely an extension of change is consistent with the Act. COMMISSION
current margin standards and is Comments may be submitted by any of
consistent with an FRB no-action letter the following methods: [Release No. 34–76069; File No. SR–ICEEU–
that permitted the applicable margin 2015–016]
Electronic Comments
treatment for a specific index option
and related ETF. • Use the Commission’s Internet Self-Regulatory Organizations; ICE
The proposed nonsubstantive, comment form (http://www.sec.gov/ Clear Europe Limited; Notice of Filing
technical changes provide for more rules/sro.shtml); or and Immediate Effectiveness of a
consistent and plain English language in
similar rule provisions, which will • Send an email to rule-comments@ Proposed Rule Change Relating to
sec.gov. Please include File Number SR– Clearance of New Natural Gas Futures
ultimately benefit investors.
CBOE–2015–077 on the subject line. Contracts
B. Self-Regulatory Organization’s
Statement on Burden on Competition Paper Comments October 2, 2015.

CBOE does not believe that the • Send paper comments in triplicate Pursuant to section 19(b)(1) of the
proposed rule change will impose any to Secretary, Securities and Exchange Securities Exchange Act of 1934
burden on competition that is not Commission, 100 F Street NE., (‘‘Act’’),1 and Rule 19b–4 thereunder,2
necessary or appropriate in furtherance Washington, DC 20549–1090. notice is hereby given that on
of the purposes of the Act. The September 18, 2015, ICE Clear Europe
proposed rule change applies to all All submissions should refer to File Limited (‘‘ICE Clear Europe’’) filed with
Trading Permit Holders in the same Number SR–CBOE–2015–077. This file the Securities and Exchange
manner and makes the same margin number should be included on the
Commission (‘‘Commission’’) the
treatment available to all Trading Permit subject line if email is used. To help the
proposed rule change as described in
Holders. The proposed rule change is Commission process and review your
Items I, II and III below, which Items
unrelated to competition and instead is comments more efficiently, please use
only one method. The Commission will have been primarily prepared by ICE
intended to bring uniformity to CBOE’s Clear Europe. ICE Clear Europe filed the
margin rules. It is consistent with post all comments on the Commission’s
Internet Web site (http://www.sec.gov/ proposal pursuant to section 19(b)(3)(A)
current rules and interpretations set of the Act,3 and Rules 19b–4(f)(4)(ii) 4
forth in Regulatory Circulars, as well as rules/sro.shtml). Copies of the
submission, all subsequent thereunder, so that the proposal was
regulatory guidance, and is not intended effective upon filing with the
to impact trading on the Exchange. As amendments, all written statements
with respect to the proposed rule Commission. The Commission is
discussed above, proposed publishing this notice to solicit
subparagraph (b) is also substantially change that are filed with the
Commission, and all written comments on the proposed rule change
similar to the rule of another options
communications relating to the from interested persons.
exchange.18
proposed rule change between the
C. Self-Regulatory Organization’s I. Self-Regulatory Organization’s
Commission and any person, other than
Statement on Comments on the those that may be withheld from the Statement of the Terms of Substance of
Proposed Rule Change Received From public in accordance with the the Proposed Rule Change
Members, Participants, or Others provisions of 5 U.S.C. 552, will be The principal purpose of the
The Exchange neither solicited nor available for Web site viewing and proposed rule change is to modify the
received comments on the proposed printing in the Commission’s Public ICE Clear Europe Delivery Procedures
rule change. Reference Room, 100 F Street NE., with respect to the settlement of certain
Washington, DC 20549 on official
III. Date of Effectiveness of the European natural gas futures contracts
business days between the hours of
Proposed Rule Change and Timing for that will be traded on the ICE Endex
10:00 a.m. and 3:00 p.m. Copies of the
Commission Action filing also will be available for market and cleared by ICE Clear Europe.
Within 45 days of the date of inspection and copying at the principal II. Self-Regulatory Organization’s
publication of this notice in the Federal office of the Exchange. All comments Statement of the Purpose of, and
Register or within such longer period received will be posted without change; Statutory Basis for, the Proposed Rule
up to 90 days (i) as the Commission may the Commission does not edit personal Change
designate if it finds such longer period identifying information from
to be appropriate and publishes its submissions. You should submit only In its filing with the Commission, ICE
reasons for so finding or (ii) as to which information that you wish to make Clear Europe included statements
the Exchange consents, the Commission available publicly. All submissions concerning the purpose of and basis for
will: should refer to File Number SR–CBOE– the proposed rule change. The text of
A. By order approve or disapprove 2015–077 and should be submitted on these statements may be examined at
such proposed rule change, or or before October 29, 2015. the places specified in Item IV below.
B. institute proceedings to determine For the Commission, by the Division of ICE Clear Europe has prepared
whether the proposed rule change Trading and Markets, pursuant to delegated summaries, set forth in sections A, B
mstockstill on DSK4VPTVN1PROD with NOTICES

should be disapproved. authority.19 and C below, of the most significant
IV. Solicitation of Comments Brent J. Fields, aspects of such statements.
Interested persons are invited to Secretary.
submit written data, views, and [FR Doc. 2015–25598 Filed 10–7–15; 8:45 am] 1 15 U.S.C. 78s(b)(1).
arguments concerning the foregoing, BILLING CODE 8011–01–P 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).

18 See supra note 16. 19 17 CFR 200.30–3(a)(12). 4 17 CFR 240.19b–4(f)(4)(ii).

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Document Created: 2015-12-15 08:43:01
Document Modified: 2015-12-15 08:43:01

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 60944