81 FR 65689 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the F&O Intraday Risk Management Policy
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 185 (September 23, 2016)
Federal Register Volume 81, Issue 185 (September 23, 2016)
| Page Range | 65689-65691 | |
| FR Document | 2016-22904 |
[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)] [Notices] [Pages 65689-65691] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-22904] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-78874; File No. SR-ICEEU-2016-011] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the F&O Intraday Risk Management Policy September 19, 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 September 9, 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. ICE Clear Europe filed the proposed rule changes pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 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 changes from interested persons. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the changes is to make certain enhancements to ICE Clear Europe's F&O intraday risk management policy. [[Page 65690]] 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 the rule change is to incorporate certain enhancements to the F&O Intraday Margin Policy. ICE Clear Europe is not making any changes to its Clearing Rules or Procedures in connection with these amendments. The amendments do not affect margining for CDS Contracts. Currently, ICE Clear Europe makes intraday margin calls with respect to F&O Contracts where uncollateralized intraday exposure exceeds defined risk limits. ICE Clear Europe is revising its intraday F&O margin call policy to incorporate an overall clearing member limit for uncollateralized exposure, as well as the existing limits at the individual account level (e.g., proprietary or customer account). Under the overall clearing member limit, an intraday F&O margin call will be triggered for a clearing member if the aggregate intraday margin shortfall across all accounts for that member exceeds one of several specified triggers (based on the member's total collateral on deposit, capital, guaranty fund contribution and original margin level). For this purpose, the intraday margin shortfall for an account for F&O Contracts will be the excess of the margin requirement (for both original and variation margin), calculated on an intraday basis, over the current amount of margin on deposit for that account in respect of F&O Contracts. ICE Clear Europe is also revising the individual intraday account limits to address both accounts margined on a net basis using a two-day margin period of risk and accounts margined on a gross basis using a one-day margin period of risk, as well as individually segregated sponsored accounts. The revised policy specifies procedures for calculation of intraday original margin requirements for gross-margined accounts. Under the revised policy, ICE Clear Europe also retains the discretion to reduce the trigger levels applicable to individual accounts. The revised policy also provides for intraday F&O margin calls as a result of intraday declines in the value of collateral posted as margin for F&O Contracts that exceed the relevant haircut level under ICE Clear Europe's existing Collateral and Haircut Policy. The revised policy implements a US$ 1 million minimum threshold per account for a margin call, unless otherwise determined by the ICE Clear Europe risk department. The revised policy clarifies certain notice procedures in connection with F&O intraday margin calls. It also includes various drafting improvements and clarifications and conforming changes. 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, and 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.\6\ The amendments are designed to enhance the clearing house's ability to manage the risk of an intraday change in F&O margin requirements (as may result from market movements or changes in positions) or in the value of collateral previously posted to satisfy margin requirements. The amendments add a new trigger for intraday margin calls based on the aggregate F&O margin shortfall for a clearing member across all account categories. The amendments also revise the individual account triggers for intraday calls to reflect the different types of margining used for various F&O account categories by ICE Clear Europe (e.g., net margining with a two-day margin period of risk or gross margining with a one-day margin period of risk). ICE Clear Europe believes that the amendments will facilitate its risk management of F&O Contracts (and related collateral). In addition, the revised policy will help ensure that the clearing house maintains sufficient margin resources to support its F&O clearing and protect the clearing house against default by an F&O Clearing Member. As such, ICE Clear Europe believes that the changes will promote the prompt and accurate clearance and settlement of securities and derivatives transactions, and further the public interest in the safe and effective clearing of such transactions. ICE Clear Europe does not believe the amendments will adversely affect the safeguarding of securities and funds in its custody or control or for which it is responsible. The changes are thus consistent with the requirements of Section 17A of the Act.\7\ --------------------------------------------------------------------------- \5\ 15 U.S.C. 78q-1. \6\ 15 U.S.C. 78q-1(b)(3)(F). \7\ 15 U.S.C. 78q-1. --------------------------------------------------------------------------- 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. The amendments are intended to enhance the F&O Intraday Margin Policy, and will apply to all F&O Clearing Members. As a result, ICE Clear Europe does not believe the amendments would adversely affect access to clearing by Clearing Members or their customers, adversely affect competition among Clearing Members or adversely affect the market for clearing services or limit market participants' choices for clearing transactions. Although the amendments may impose additional costs on Clearing Members, to the extent that the new intraday margin policy may require posting of intraday margin in circumstances where it would not previously have been required (or in amounts greater than previously required), ICE Clear Europe believes that such costs are warranted in light of the risk management benefits provided to the clearing house (and the clearing system generally) under the revised policy. As a result, ICE Clear Europe does not believe that the proposed amendments to the F&O Intraday Margin Policy will impose any burden on competition not appropriate in furtherance of the purposes of the Act. 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. [[Page 65691]] 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) of the Act \8\ 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. --------------------------------------------------------------------------- \8\ 15 U.S.C. 78s(b)(3)(A). \9\ 17 CFR 240.19b-4(f)(ii). --------------------------------------------------------------------------- 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-2016-011 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-2016-011. 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-2016-011 and should be submitted on or before October 14, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\10\ --------------------------------------------------------------------------- \10\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2016-22904 Filed 9-22-16; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Notices 65689
immediately preceding the follow-on Affiliated Investors in proportion to the Regulated Entity, then the Holders will
investment; and relative amounts of the securities held vote such shares as directed by an
(ii) the aggregate amount or to be acquired or disposed of, as the independent third party when voting on
recommended by the Advisors to be case may be. (1) the election of directors or trustees;
invested by the Regulated Entity in the 13. Any transaction fee (including (2) the removal of one or more directors
follow-on investment, together with the break-up or commitment fees but or trustees; or (3) any matters requiring
amount proposed to be invested by the excluding brokers’ fees contemplated by approval by the vote of a majority of the
other participating Regulated Entities section 17(e) or 57(k) of the Act, as outstanding voting securities, as defined
and the Affiliated Investors in the same applicable) 12 received in connection in section 2(a)(42) of the Act.
transaction, exceeds the amount of the with a Co-Investment Transaction will
opportunity; then the amount invested be distributed to the participating For the Commission, by the Division of
by each such party will be allocated Regulated Entities and Affiliated Investment Management, under delegated
among them pro rata based on each Investors on a pro rata basis based on authority.
participant’s Available Capital for the amount they invested or committed, Robert W. Errett,
investment in the asset class being as the case may be, in such Co- Deputy Secretary.
allocated, up to the amount proposed to Investment Transaction. If any [FR Doc. 2016–22905 Filed 9–22–16; 8:45 am]
be invested by each. transaction fee is to be held by an BILLING CODE 8011–01–P
d. The acquisition of follow-on Advisor pending consummation of the
investments as permitted by this transaction, the fee will be deposited
condition will be considered a Co- into an account maintained by the
Investment Transaction for all purposes SECURITIES AND EXCHANGE
Advisor at a bank or banks having the COMMISSION
and be subject to the other conditions qualifications prescribed in section
set forth in the application. 26(a)(1) of the Act, and the account will
9. The Independent Trustees of each earn a competitive rate of interest that
[Release No. 34–78874; File No. SR–ICEEU–
Regulated Entity will be provided will also be divided pro rata among the
2016–011]
quarterly for review all information participating Regulated Entities and
concerning Potential Co-Investment Self-Regulatory Organizations; ICE
Affiliated Investors based on the amount Clear Europe Limited; Notice of Filing
Transactions and Co-Investment they invest in the Co-Investment
Transactions, including investments and Immediate Effectiveness of a
Transaction. None of the other
made by other Regulated Entities or Proposed Rule Change Relating to the
Regulated Entities, Affiliated Investors,
Affiliated Investors that a Regulated F&O Intraday Risk Management Policy
the Advisors nor any affiliated person of
Entity considered but declined to
the Regulated Entities or the Affiliated September 19, 2016.
participate in, so that the Independent
Investors will receive additional
Trustees may determine whether all Pursuant to Section 19(b)(1) of the
compensation or remuneration of any
investments made during the preceding Securities Exchange Act of 1934
kind as a result of or in connection with
quarter, including those investments (‘‘Act’’),1 and Rule 19b–4 thereunder,2
a Co-Investment Transaction (other than
which the Regulated Entity considered notice is hereby given that on
(a) in the case of the Regulated Entities
but declined to participate in, comply September 9, 2016, ICE Clear Europe
and the Affiliated Investors, the pro rata
with the conditions of the Order. In Limited (‘‘ICE Clear Europe’’ or the
transaction fees described above and
addition, the Independent Trustees will ‘‘clearing house’’) filed with the
fees or other compensation described in
consider at least annually the continued
condition 2(c)(iii)(c) and (b) in the case Securities and Exchange Commission
appropriateness for such Regulated
of the Advisors, investment advisory (‘‘Commission’’) the proposed rule
Entity of participating in new and
fees paid in accordance with the changes described in Items I, II and III
existing Co-Investment Transactions.
10. Each Regulated Entity will Regulated Entities’ and the Affiliated below, which Items have been prepared
maintain the records required by section Investors’ investment advisory primarily by ICE Clear Europe. ICE Clear
57(f)(3) of the Act as if each of the agreements). Europe filed the proposed rule changes
14. The Advisors to the Regulated pursuant to Section 19(b)(3)(A) of the
Regulated Entities were a BDC and each
Entities and Affiliated Investors will Act,3 and Rule 19b–4(f)(4)(ii) 4
of the investments permitted under
maintain written policies and thereunder, so that the proposal was
these conditions were approved by a
procedures reasonably designed to effective upon filing with the
Required Majority under section 57(f).
11. No Independent Trustee of a ensure compliance with the foregoing Commission. The Commission is
Regulated Entity will also be a trustee, conditions. These policies and publishing this notice to solicit
director, general partner, managing procedures will require, among other
comments on the proposed rule changes
member or principal, or otherwise an things, that each of the Advisors to each
from interested persons.
‘‘affiliated person’’ (as defined in the Regulated Entity will be notified of all
Act) of any Affiliated Investor. Potential Co-Investment Transactions I. Self-Regulatory Organization’s
12. The expenses, if any, associated that fall within a Regulated Entity’s Statement of the Terms of Substance of
with acquiring, holding or disposing of then-current Objectives and Strategies the Proposed Rule Change
any securities acquired in a Co- and will be given sufficient information
Investment Transaction (including, to make its independent determination The principal purpose of the changes
without limitation, the expenses of the and recommendations under conditions is to make certain enhancements to ICE
sradovich on DSK3GMQ082PROD with NOTICES
distribution of any such securities 1, 2(a), 7 and 8. Clear Europe’s F&O intraday risk
registered for sale under the Securities 15. If the Holders own in the aggregate management policy.
Act) shall, to the extent not payable by more than 25 percent of the shares of a
the Advisors under their respective 12 Applicants
1 15 U.S.C. 78s(b)(1).
are not requesting and the
advisory agreements with the Regulated Commission is not providing any relief for
2 17 CFR 240.19b–4.
Entities and the Affiliated Investors, be transaction fees received in connection with any
3 15 U.S.C. 78s(b)(3)(A).
shared by the Regulated Entities and the Co-Investment Transaction. 4 17 CFR 240.19b–4(f)(4)(ii).
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![Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Notices 65691
III. Date of Effectiveness of the with respect to the proposed rule abroad for temporary exhibition within
Proposed Rule Change and Timing for change that are filed with the the United States, are of cultural
Commission Action Commission, and all written significance. The objects are imported
The foregoing rule change has become communications relating to the pursuant to loan agreements with the
effective upon filing pursuant to Section proposed rule change between the foreign owners or custodians. I also
19(b)(3)(A) of the Act 8 and Rule 19b– Commission and any person, other than determine that the exhibition or display
4(f)(4)(ii) 9 thereunder because it effects those that may be withheld from the of the exhibit objects at the Los Angeles
a change in an existing service of a public in accordance with the County Museum of Art, Los Angeles,
registered clearing agency that primarily provisions of 5 U.S.C. 552, will be California, from on or about November
affects the clearing operations of the available for Web site viewing and 20, 2016, until on or about March 26,
clearing agency with respect to products printing in the Commission’s Public 2017, and at possible additional
that are not securities, including futures Reference Room, 100 F Street NE., exhibitions or venues yet to be
that are not security futures, swaps that Washington, DC 20549, on official determined, is in the national interest.
are not security-based swaps or mixed business days between the hours of I have ordered that Public Notice of
swaps, and forwards that are not 10:00 a.m. and 3:00 p.m. Copies of such these Determinations be published in
security forwards, and does not filings will also be available for the Federal Register.
significantly affect any securities inspection and copying at the principal FOR FURTHER INFORMATION CONTACT: For
clearing operations of the clearing office of ICE Clear Europe and on ICE further information, including a list of
agency or any rights or obligations of the Clear Europe’s Web site at https:// the imported objects, contact the Office
clearing agency with respect to www.theice.com/clear-europe/ of Public Diplomacy and Public Affairs
securities clearing or persons using such regulation#rule-filings. in the Office of the Legal Adviser, U.S.
securities-clearing service. At any time All comments received will be posted Department of State (telephone: 202–
within 60 days of the filing of the without change; the Commission does 632–6471; email: section2459@
proposed rule change, the Commission not edit personal identifying state.gov). The mailing address is U.S.
summarily may temporarily suspend information from submissions. You Department of State, L/PD, SA–5, Suite
such rule change if it appears to the should submit only information that 5H03, Washington, DC 20522–0505.
Commission that such action is you wish to make available publicly. All
Dated: September 15, 2016.
necessary or appropriate in the public submissions should refer to File
Mark Taplin,
interest, for the protection of investors, Number SR–ICEEU–2016–011 and
should be submitted on or before Principal Deputy Assistant Secretary, Bureau
or otherwise in furtherance of the
of Educational and Cultural Affairs,
purposes of the Act. October 14, 2016.
Department of State.
IV. Solicitation of Comments For the Commission, by the Division of [FR Doc. 2016–22977 Filed 9–22–16; 8:45 am]
Trading and Markets, pursuant to delegated
Interested persons are invited to authority.10 BILLING CODE 4710–05–P
submit written data, views, and Robert W. Errett,
arguments concerning the foregoing, Deputy Secretary.
including whether the proposed rule DEPARTMENT OF STATE
[FR Doc. 2016–22904 Filed 9–22–16; 8:45 am]
change is consistent with the Act. [Public Notice: 9729]
BILLING CODE 8011–01–P
Comments may be submitted by any of
the following methods: Culturally Significant Objects Imported
for Exhibition Determinations: ‘‘The
Electronic Comments DEPARTMENT OF STATE Shimmer of Gold: Giovanni di Paolo in
• Use the Commission’s Internet [Public Notice: 9731] Renaissance Siena’’ Exhibition
comment form (http://www.sec.gov/
rules/sro.shtml) or SUMMARY: Notice is hereby given of the
Culturally Significant Objects Imported
• Send an email to rule-comments@ following determinations: Pursuant to
for Exhibition Determinations:
sec.gov. Please include File Number SR– the authority vested in me by the Act of
‘‘Renaissance and Reformation:
ICEEU–2016–011 on the subject line. October 19, 1965 (79 Stat. 985; 22 U.S.C.
German Art in the Age of Dürer and
2459), E.O. 12047 of March 27, 1978, the
Paper Comments Cranach’’ Exhibition
Foreign Affairs Reform and
• Send paper comments in triplicate SUMMARY: Notice is hereby given of the Restructuring Act of 1998 (112 Stat.
to Secretary, Securities and Exchange following determinations: Pursuant to 2681, et seq.; 22 U.S.C. 6501 note, et
Commission, 100 F Street NE., the authority vested in me by the Act of seq.), Delegation of Authority No. 234 of
Washington, DC 20549–1090. October 19, 1965 (79 Stat. 985; 22 U.S.C. October 1, 1999, Delegation of Authority
All submissions should refer to File 2459), E.O. 12047 of March 27, 1978, the No. 236–3 of August 28, 2000 (and, as
Number SR–ICEEU–2016–011. This file Foreign Affairs Reform and appropriate, Delegation of Authority No.
number should be included on the Restructuring Act of 1998 (112 Stat. 257 of April 15, 2003), I hereby
subject line if email is used. To help the 2681, et seq.; 22 U.S.C. 6501 note, et determine that the objects to be
Commission process and review your seq.), Delegation of Authority No. 234 of included in the exhibition ‘‘The
comments more efficiently, please use October 1, 1999, Delegation of Authority Shimmer of Gold: Giovanni di Paolo in
only one method. The Commission will No. 236–3 of August 28, 2000 (and, as Renaissance Siena,’’ imported from
abroad for temporary exhibition within
sradovich on DSK3GMQ082PROD with NOTICES
post all comments on the Commission’s appropriate, Delegation of Authority No.
Internet Web site (http://www.sec.gov/ 257 of April 15, 2003), I hereby the United States, are of cultural
rules/sro.shtml). Copies of the determine that the objects to be significance. The objects are imported
submission, all subsequent included in the exhibition ‘‘Renaissance pursuant to a loan agreement with the
amendments, all written statements and Reformation: German Art in the Age foreign owner or custodian. I also
of Dürer and Cranach,’’ imported from determine that the exhibition or display
8 15 U.S.C. 78s(b)(3)(A). of the exhibit objects at the J. Paul Getty
9 17 CFR 240.19b–4(f)(ii). 10 17 CFR 200.30–3(a)(12). Museum at the Getty Center, Los
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Document Created: 2016-09-23 01:43:14
Document Modified: 2016-09-23 01:43:14
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| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| FR Citation | 81 FR 65689 |
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