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)

[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 [email protected]. 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