81 FR 10949 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of a Proposed Rule Change Relating to Additions to Permitted Cover
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 41 (March 2, 2016)
Federal Register Volume 81, Issue 41 (March 2, 2016)
| Page Range | 10949-10951 | |
| FR Document | 2016-04504 |
[Federal Register Volume 81, Number 41 (Wednesday, March 2, 2016)] [Notices] [Pages 10949-10951] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-04504] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-77234; File No. SR-ICEEU-2016-004] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of a Proposed Rule Change Relating to Additions to Permitted Cover February 25, 2016. 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 February 10, 2016, ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing House'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule changes described in Items I, II and III below, which Items have been prepared primarily 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 The principal purpose of the changes is to permit Clearing Members of ICE Clear Europe to provide additional categories of securities, including treasury bills and floating and inflation-linked government bonds (the ``Additional Permitted Cover'') to ICE Clear Europe to satisfy certain margin requirements. 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 1. Purpose The purpose of ICE Clear Europe accepting the Additional Permitted Cover is to provide its Clearing Members with a greater range of high- quality collateral that can be posted to ICE Clear Europe to satisfy certain margin requirements. Specifically, the Additional Permitted Cover will include the following types of government securities: (i) U.S. Treasury floating- rate notes (``UST FRNs''), (ii) Canadian government treasury bills and Canadian government real return bonds,\3\ (iii) Spanish government treasury bills (Letras del Tesoro), (iv) Swedish government treasury bills, (v) German government inflation-linked bonds (of two types: Deutsche Bundesrepublik Inflation-Linked Bonds and Bundesobligationen I/L), (vi) Japanese government CPI-linked bonds, and (vii) Swedish government inflation index-linked bonds. --------------------------------------------------------------------------- \3\ Pursuant to confirmation via telephone and email with ICE Clear Europe's outside counsel on February 19 and 23, 2016, staff in the Division of Trading and Markets modified this sentence to add the reference to Canadian government real return bonds to conform to the proposed rule text. --------------------------------------------------------------------------- ICE Clear Europe believes that the Additional Permitted Cover is of minimal credit risk, comparable to that of other sovereign debt currently accepted by ICE Clear Europe as Permitted Cover. Significantly, other debt obligations of the same governments that issue the Additional Permitted Cover are currently eligible as Permitted Cover. The Additional Permitted Cover consisting of treasury bills is substantially similar to existing forms of treasury bill Permitted Cover currently accepted by the Clearing House. In terms of the Additional Permitted Cover consisting of inflation-linked government bonds, ICE Clear Europe currently accepts similar bonds issued by other governments. As a result, ICE Clear Europe does not believe that such bonds would pose any additional or novel risks for the Clearing House. ICE Clear Europe further believes that the Additional Permitted Cover has demonstrated low volatility, including in stressed market conditions. Based on its analysis of the Additional Permitted Cover and its volatility and other characteristics, ICE Clear Europe will initially apply to the Additional Permitted Cover the same valuation haircuts as currently applied to currently accepted bonds of the same issuer and within the same maturity bucket. The Clearing House will review and modify such haircuts from time to time, in accordance with Clearing House's Collateral and Haircut Policy. In addition, ICE Clear Europe will impose both absolute limits and relative limits for each type of Additional Permitted Cover (other than U.S. Treasury obligations), consistent with the existing issuer limits for Permitted [[Page 10950]] Cover and the Collateral and Haircut Policy. As part of that policy, an additional haircut will apply where Additional Permitted Cover is used to cover a margin requirement denominated in a different currency, to cover the exchange rate risk. ICE Clear Europe will accept the Additional Permitted Cover in respect of original margin requirements for F&O Contracts and initial margin requirements for CDS Contracts. In addition, the UST FRNs will be accepted as Permitted Cover in respect of F&O and CDS guaranty fund contribution requirements. The Spanish and German securities constituting Additional Permitted Cover will also be accepted for the Euro-denominated component of the CDS guaranty fund. The other types of Additional Permitted Cover will not be accepted in respect of guaranty fund requirements. The Additional Permitted Cover cannot be used to satisfy variation margin requirements because variation margin must be paid in cash in the currency of the contract. 2. Statutory Basis ICE Clear Europe has identified Additional Permitted Cover as types of assets that are appropriate for Clearing Members to post in order to meet initial margin and original margin requirements for all product categories (and, to the extent noted above, guaranty fund requirements). ICE Clear Europe believes that accepting the Additional Permitted Cover is consistent with the requirements of Section 17A of the Act \4\ and the regulations thereunder applicable to it, and is 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,\5\ in the same manner as other collateral currently accepted by ICE Clear Europe. --------------------------------------------------------------------------- \4\ 15 U.S.C. 78q-1. \5\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- ICE Clear Europe has determined, through analysis of the credit risk, liquidity, market risk, volatility and other trading characteristics of the Additional Permitted Cover, that such assets are appropriate for use as Permitted Cover for Clearing Members' obligations under the Rules, subject to the haircuts and limits to be imposed under the Collateral and Haircut Policy, consistent with the risk management of the Clearing House. In particular, the Additional Permitted Cover is a stable collateral type that presents minimal credit risk and low volatility. In this regard, the Additional Permitted Cover is similar to the other categories of sovereign debt that ICE Clear Europe currently accepts as permitted cover. Pursuant to the Collateral and Haircut Policy, haircuts for the Additional Permitted Cover will be established and reviewed by ICE Clear Europe periodically and modified as necessary. Use of Additional Permitted Cover will also be subject to absolute and relative limits, as discussed above, under the Collateral and Haircut Policy. For the reasons noted above, ICE Clear Europe believes that the acceptance of the Additional Permitted Cover 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 amendments would have any impact, or impose any burden, on competition not necessary or appropriate in furtherance of the purposes of the Act. The proposed changes will provide additional flexibility to Clearing Members by allowing the use, on an optional basis, of additional types of Permitted Cover. As a result, ICE Clear Europe does not believe the changes will adversely affect the cost to clearing members or other market participants of clearing services. The changes 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 changes should not, in the Clearing House's view, affect the availability of clearing or access to 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 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 CommentsUse 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-2016-004 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-2016-004. 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 [[Page 10951]] should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ICEEU-2016-004 and should be submitted on or before March 23, 2016. --------------------------------------------------------------------------- \6\ 17 CFR 200.30-3(a)(12). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\6\ Robert W. Errett, Deputy Secretary. [FR Doc. 2016-04504 Filed 3-1-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 41 / Wednesday, March 2, 2016 / Notices 10949
including whether the proposed rule SECURITIES AND EXCHANGE ICE Clear Europe to satisfy certain
change is consistent with the Act. COMMISSION margin requirements.
Comments may be submitted by any of Specifically, the Additional Permitted
the following methods: [Release No. 34–77234; File No. SR–ICEEU– Cover will include the following types
2016–004] of government securities: (i) U.S.
Electronic Comments Treasury floating-rate notes (‘‘UST
Self-Regulatory Organizations; ICE
• Use the Commission’s Internet FRNs’’), (ii) Canadian government
Clear Europe Limited; Notice of Filing
comment form (http://www.sec.gov/ treasury bills and Canadian government
of a Proposed Rule Change Relating to real return bonds,3 (iii) Spanish
rules/sro.shtml); or Additions to Permitted Cover government treasury bills (Letras del
• Send an email to rule-comments@ February 25, 2016. Tesoro), (iv) Swedish government
sec.gov. Please include File Number SR– treasury bills, (v) German government
Pursuant to Section 19(b)(1) of the
NASDAQ–2016–027 on the subject line. inflation-linked bonds (of two types:
Securities Exchange Act of 1934
Paper Comments (‘‘Act’’),1 and Rule 19b–4 thereunder,2 Deutsche Bundesrepublik Inflation-
notice is hereby given that on February Linked Bonds and Bundesobligationen
• Send paper comments in triplicate 10, 2016, ICE Clear Europe Limited I/L), (vi) Japanese government CPI-
to Secretary, Securities and Exchange (‘‘ICE Clear Europe’’ or the ‘‘Clearing linked bonds, and (vii) Swedish
Commission, 100 F Street NE., House’’) filed with the Securities and government inflation index-linked
Washington, DC 20549–1090. Exchange Commission (‘‘Commission’’) bonds.
the proposed rule changes described in ICE Clear Europe believes that the
All submissions should refer to File Additional Permitted Cover is of
Number SR–NASDAQ–2016–027. This Items I, II and III below, which Items
have been prepared primarily by ICE minimal credit risk, comparable to that
file number should be included on the of other sovereign debt currently
subject line if email is used. To help the Clear Europe. The Commission is
accepted by ICE Clear Europe as
Commission process and review your publishing this notice to solicit
Permitted Cover. Significantly, other
comments more efficiently, please use comments on the proposed rule change
debt obligations of the same
only one method. The Commission will from interested persons.
governments that issue the Additional
post all comments on the Commission’s I. Self-Regulatory Organization’s Permitted Cover are currently eligible as
Internet Web site (http://www.sec.gov/ Statement of the Terms of Substance of Permitted Cover. The Additional
rules/sro.shtml). Copies of the the Proposed Rule Change Permitted Cover consisting of treasury
submission, all subsequent bills is substantially similar to existing
amendments, all written statements The principal purpose of the changes
is to permit Clearing Members of ICE forms of treasury bill Permitted Cover
with respect to the proposed rule currently accepted by the Clearing
change that are filed with the Clear Europe to provide additional
House. In terms of the Additional
Commission, and all written categories of securities, including
Permitted Cover consisting of inflation-
communications relating to the treasury bills and floating and inflation-
linked government bonds, ICE Clear
proposed rule change between the linked government bonds (the
Europe currently accepts similar bonds
Commission and any person, other than ‘‘Additional Permitted Cover’’) to ICE
issued by other governments. As a
those that may be withheld from the Clear Europe to satisfy certain margin
result, ICE Clear Europe does not
public in accordance with the requirements.
believe that such bonds would pose any
provisions of 5 U.S.C. 552, will be II. Self-Regulatory Organization’s additional or novel risks for the Clearing
available for Web site viewing and Statement of the Purpose of, and House. ICE Clear Europe further
printing in the Commission’s Public Statutory Basis for, the Proposed Rule believes that the Additional Permitted
Reference Room, 100 F Street NE., Change Cover has demonstrated low volatility,
Washington, DC 20549, on official including in stressed market conditions.
In its filing with the Commission, ICE Based on its analysis of the
business days between the hours of
Clear Europe included statements Additional Permitted Cover and its
10:00 a.m. and 3:00 p.m. Copies of the
concerning the purpose of and basis for volatility and other characteristics, ICE
filing also will be available for
the proposed rule change. The text of Clear Europe will initially apply to the
inspection and copying at the principal
these statements may be examined at Additional Permitted Cover the same
office of the Exchange. All comments
the places specified in Item IV below. valuation haircuts as currently applied
received will be posted without change;
ICE Clear Europe has prepared to currently accepted bonds of the same
the Commission does not edit personal
summaries, set forth in sections A, B, issuer and within the same maturity
identifying information from
and C below, of the most significant bucket. The Clearing House will review
submissions. You should submit only
aspects of such statements. and modify such haircuts from time to
information that you wish to make
available publicly. All submissions A. Self-Regulatory Organization’s time, in accordance with Clearing
should refer to File Number SR– Statement of the Purpose of, and House’s Collateral and Haircut Policy.
NASDAQ–2016–027 and should be Statutory Basis for, the Proposed Rule In addition, ICE Clear Europe will
submitted on or before March 23, 2016. Change impose both absolute limits and relative
limits for each type of Additional
For the Commission, by the Division of 1. Purpose
Trading and Markets, pursuant to delegated Permitted Cover (other than U.S.
mstockstill on DSK4VPTVN1PROD with NOTICES
authority.23 The purpose of ICE Clear Europe Treasury obligations), consistent with
accepting the Additional Permitted the existing issuer limits for Permitted
Robert W. Errett,
Cover is to provide its Clearing
Deputy Secretary.
Members with a greater range of high- 3 Pursuant to confirmation via telephone and
[FR Doc. 2016–04507 Filed 3–1–16; 8:45 am] quality collateral that can be posted to email with ICE Clear Europe’s outside counsel on
BILLING CODE 8011–01–P
February 19 and 23, 2016, staff in the Division of
Trading and Markets modified this sentence to add
1 15 U.S.C. 78s(b)(1). the reference to Canadian government real return
23 17 CFR 200.30–3(a)(12). 2 17 CFR 240.19b–4. bonds to conform to the proposed rule text.
VerDate Sep<11>2014 19:10 Mar 01, 2016 Jkt 238001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 E:\FR\FM\02MRN1.SGM 02MRN1](https://thefederalregister.org/doc/81_FR_10990/page/1.svg)
![Federal Register / Vol. 81, No. 41 / Wednesday, March 2, 2016 / Notices 10951
should submit only information that DEPARTMENT OF TRANSPORTATION processes, safety analyses, and test,
you wish to make available publicly. All validation, and verification processes
submissions should refer to File Federal Railroad Administration used during development of ACSES II.
Number SR–ICEEU–2016–004 and [Docket No. FRA–2010–0036] The PTCSP also contains SEPTA’s
should be submitted on or before March operational and support requirements
23, 2016. Southeastern Pennsylvania and procedures. SEPTA’s PTCSP and
For the Commission, by the Division of
Transportation Authority’s Request for the accompanying request for approval
Trading and Markets, pursuant to delegated
Positive Train Control Safety Plan and system certification are available for
authority.6
Approval and System Certification review online at www.regulations.gov
Robert W. Errett, AGENCY: Federal Railroad (Docket No. FRA–2010–0036) and in
Administration (FRA), United States person at DOT’s Docket Operations
Deputy Secretary.
Department of Transportation (DOT). Facility, 1200 New Jersey Avenue SE.,
[FR Doc. 2016–04504 Filed 3–1–16; 8:45 am]
ACTION: Notice of availability and W12–140, Washington, DC 20590. The
BILLING CODE 8011–01–P
request for comments. Docket Operations Facility is open from
9 a.m. to 5 p.m., Monday through
SUMMARY: This document provides the Friday, except Federal Holidays.
public with notice that the Southeastern Interested parties are invited to
DEPARTMENT OF STATE Pennsylvania Transportation Authority
comment on the PTCSP by submitting
(SEPTA) submitted to FRA its Positive
written comments or data. During its
[Public Notice: 9460] Train Control Safety Plan (PTCSP)
Revision 0.7, dated August 31, 2015, review of the PTCSP, FRA will consider
In the Matter of the Review of the under a cover letter dated October 16, any comments or data submitted.
Designation of Al-Qa’ida in the Arabian 2015. SEPTA requests that FRA approve However, FRA may elect not to respond
Peninsula (and Other Aliases) as a its PTCSP and issue a PTC System to any particular comment and, under
Foreign Terrorist Organization Certification for SEPTA’s Advanced 49 CFR 236.1009(d)(3), FRA maintains
Pursuant to Section 219 of the Civil Speed Enforcement System II the authority to approve or disapprove
Immigration and Nationality Act (ACSES II), under 49 CFR 236.1009 and the PTCSP at its sole discretion. FRA
236.1015. does not anticipate scheduling a public
Based upon a review of the DATES: FRA will consider hearing regarding SEPTA’s PTCSP
Administrative Record assembled in communications received by April 1, because the circumstances do not
this matter pursuant to Section 2016 before taking final action on the appear to warrant a hearing. If any
219(a)(4)(C) of the Immigration and PTCSP. Comments received after that interested party desires an opportunity
Nationality Act, as amended (8 U.S.C. date will be considered as far as for oral comment, the party should
1189(a)(4)(C)) (‘‘INA’’), and in practicable. notify FRA in writing before the end of
consultation with the Attorney General ADDRESSES: All communications the comment period and specify the
and the Secretary of the Treasury, the concerning this proceeding should basis for his or her request.
Secretary of State concludes that the identify the appropriate docket number Privacy Act Notice
circumstances that were the basis for the and may be submitted by any of the
designation of the aforementioned following methods: Anyone is able to search the
organization as a Foreign Terrorist • Web site: http:// electronic form of any written
Organization have not changed in such www.regulations.gov. Follow the online communications and comments
a manner as to warrant revocation of the instructions for submitting comments. received into any of our dockets by the
designation and that the national • Fax: 202–493–2251. name of the individual submitting the
security of the United States does not • Mail: Docket Operations Facility, comment (or signing the document, if
warrant a revocation of the designation. U.S. Department of Transportation, 1200 submitted on behalf of an association,
New Jersey Avenue SE., W12–140,
Therefore, the Secretary of State business, labor union, etc.). In
Washington, DC 20590.
hereby determines that the designation • Hand Delivery: 1200 New Jersey accordance with 49 CFR 211.3, FRA
of the aforementioned organization as a Avenue SE., Room W12–140, solicits comments from the public to
Foreign Terrorist Organization, pursuant Washington, DC 20590, between 9 a.m. better inform its decisions. DOT posts
to Section 219 of the INA (8 U.S.C. and 5 p.m., Monday through Friday, these comments, without edit, including
1189), shall be maintained. except Federal Holidays. any personal information the
This determination shall be published FOR FURTHER INFORMATION CONTACT: Dr.
commenter provides, to
in the Federal Register. Mark Hartong, P.E., Senior Scientific www.regulations.gov, as described in
Technical Advisor at (202) 493–1332, the system of records notice (DOT/ALL–
Dated: February 25, 2016. 14 FDMS), which can be reviewed at
Mark.Hartong@dot.gov; or Mr. David
John F. Kerry, Blackmore, Railroad Safety Program www.dot.gov/privacy. See http://
Secretary of State. Manager for Advanced Technology at www.regulations.gov/#!privacyNotice
[FR Doc. 2016–04604 Filed 3–1–16; 8:45 am] (312) 835–3903, David.Blackmore@ for the privacy notice of regulations.gov.
dot.gov.
mstockstill on DSK4VPTVN1PROD with NOTICES
BILLING CODE 4710–AD–P Issued in Washington, DC, on February 26,
SUPPLEMENTARY INFORMATION: In its 2016.
PTCSP, SEPTA asserts that its ACSES II Robert C. Lauby,
is designed as a vital overlay PTC Associate Administrator for Railroad Safety
system as defined in 49 CFR Chief Safety Officer.
236.1015(e)(2). The PTCSP describes [FR Doc. 2016–04580 Filed 3–1–16; 8:45 am]
SEPTA’s ACSES II implementation and BILLING CODE 4910–06–P
6 17 CFR 200.30–3(a)(12). the associated ACSES II safety
VerDate Sep<11>2014 19:10 Mar 01, 2016 Jkt 238001 PO 00000 Frm 00125 Fmt 4703 Sfmt 9990 E:\FR\FM\02MRN1.SGM 02MRN1](https://thefederalregister.org/doc/81_FR_10990/page/3.svg)
Document Created: 2018-02-02 15:04:03
Document Modified: 2018-02-02 15:04:03
| 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 | 81 FR 10949 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR