82_FR_23790 82 FR 23692 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change, Security-Based Swap Submission or Advance Notice Relating to Clearing House Contributions to CDS Default Resources

82 FR 23692 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change, Security-Based Swap Submission or Advance Notice Relating to Clearing House Contributions to CDS Default Resources

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 98 (May 23, 2017)

Page Range23692-23694
FR Document2017-10462

Federal Register, Volume 82 Issue 98 (Tuesday, May 23, 2017)
[Federal Register Volume 82, Number 98 (Tuesday, May 23, 2017)]
[Notices]
[Pages 23692-23694]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-10462]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80706; File No. SR-ICEEU-2017-005]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing of Proposed Rule Change, Security-Based Swap Submission or 
Advance Notice Relating to Clearing House Contributions to CDS Default 
Resources

May 17, 2017.
    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 May 4, 2017, ICE Clear Europe Limited (``ICE Clear Europe'' or 
``Clearing House'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change described in Items I, II and 
III below, which Items have been primarily prepared 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.
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice

    The principal purpose of the changes is to modify the ICE Clear 
Europe Finance Procedures to implement certain changes to the Clearing 
House CDS Contributions.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change, Security-Based Swap Submission or 
Advance Notice

    In its filing with the Commission, ICE Clear Europe included 
statements concerning the purpose of and basis for the proposed rule 
change and discussed any comments it received on 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. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change, Security-Based Swap Submission or 
Advance Notice

1. Purpose
    ICE Clear Europe proposes revising its Finance Procedures to 
implement certain changes to the Clearing House CDS Contributions. 
These revisions do not involve any changes to the ICE Clear Europe 
Clearing Rules.\3\
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    \3\ Capitalized terms used but not defined herein have the 
meanings specified in the ICE Clear Europe Clearing Rules (the 
``Rules'').
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    ICE Clear Europe maintains a waterfall of defined default 
resources, including its CDS Guaranty Fund, to provide financial 
resources to cover potential losses resulting from the default of a CDS 
Clearing Member.\4\ The CDS Guaranty Fund consists of required 
contributions made by CDS Clearing Members. Currently, ICE Clear 
Europe's contribution to CDS default resources is split into two 
parts--namely, a Clearing House CDS Initial Contribution and a Clearing 
House CDS GF Contribution. Under the default resource waterfall, assets 
(including margin and CDS Guaranty Fund contributions) provided by the 
defaulting CDS Clearing Member are used first to cover default losses. 
In the event the Clearing House experiences losses from the default of 
a CDS Clearing Member that exceed the resources provided by the 
defaulter, the Clearing House CDS Initial Contribution would, in 
accordance with the Rules, be applied next, and prior the use of CDS 
Guaranty Fund contributions of non-defaulting CDS Clearing Members. 
Following exhaustion of the Clearing House CDS Initial Contribution, 
the CDS Guaranty Fund contributions of non-defaulting CDS Clearing 
Members and the Clearing House CDS GF Contribution would be applied to 
cover

[[Page 23693]]

CDS default losses, on a pro rata basis. The respective amounts of the 
Clearing House CDS Initial Contribution and Clearing House CDS GF 
Contribution are determined in accordance with paragraph 15.2 of the 
Finance Procedures, and are notified to Clearing Members by Circular.
---------------------------------------------------------------------------

    \4\ The waterfall of application of default resources upon the 
default of a CDS Clearing Member is set out in ICE Clear Europe 
Rules 908(c) and (g), and is summarized here for reference.
---------------------------------------------------------------------------

    ICE Clear Europe proposes to amend paragraph 15.2 of the Finance 
Procedures in order to permit the Clearing House to redesignate all or 
a part of the Clearing House CDS GF Contribution as additional Clearing 
House CDS Initial Contribution. ICE Clear Europe does not propose to 
change the aggregate amount of, or basis for calculating, the Clearing 
House CDS GF Contribution and Clearing House CDS Initial Contribution. 
The effect of any such redesignation would be that more of ICE Clear 
Europe's contribution to CDS default resources would be used at an 
earlier point in the waterfall of default resources, prior to the use 
of CDS Guaranty Fund contributions of non-defaulting CDS Clearing 
Members. Such a redesignation will thus provide greater protection of 
CDS Clearing Member contributions of non-defaulting CDS Clearing 
Members, and reduce the likelihood that the use of CDS Clearing Member 
contributions will be necessary in a default scenario.
    Specifically, paragraph 15.2(a) of the Finance Procedures, which 
establishes the amount of the Clearing House CDS Initial Contribution, 
would be amended to provide that the Clearing House can increase such 
amount by redesignating all or part of the Clearing House CDS GF 
Contribution as a Clearing House CDS Initial Contribution. ICE Clear 
Europe would be required to notify Clearing Members by circular of any 
such redesignation.
    Conforming amendments have been made in paragraph 15.2(b) to refer 
to amounts so redesignated as Clearing House CDS Initial Contributions, 
as well as to clarify a cross-reference. Similar conforming changes are 
made in paragraph 15.2(c), which establishes the amount of required 
Clearing House CDS GF Contributions, to take into account any amounts 
thereof that are redesignated as Clearing House CDS Initial 
Contributions. Paragraph 15.2(d) would be revised to clarify the 
obligation to replenish Clearing CDS GF Contributions (including such 
amounts that are redesignated as Clearing House Initial CDS 
Contributions) when applied in accordance with the Rules, as well as to 
provide that any required replenishments of the Clearing House CDS GF 
Contribution could similarly be redesignated as Clearing House CDS 
Initial Contributions and to clarify a cross-reference. Paragraph 
15.2(g) would be revised to clarify that the Clearing House would not 
be required or permitted to redesignate any amount as Clearing House 
CDS Initial Contributions as Clearing House CDS GF Contributions solely 
as a result of changes in the amounts of a Clearing House CDS 
Contribution because of exchange rate fluctuations.
    The decision to redesignate any amount of Clearing House CDS GF 
Contribution as Clearing House CDS Initial Contribution (and to make 
any change in any such redesignation) would be made by the ICE Clear 
Europe Board, in consultation with the CDS Risk Committee.
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\ 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.\7\ ICE Clear Europe is not changing the 
aggregate level of its contributions to CDS default resources, or the 
overall level of CDS default resources generally. The amendments will 
provide the Clearing House the ability to move its own contributions to 
CDS default resources higher in the waterfall of default resources, so 
that more of such contributions will be used prior to the CDS Guaranty 
Fund contributions of non-defaulting CDS Clearing Members. Such a 
redesignation will make it less likely that the Clearing House would 
need to use the CDS Guaranty Fund contributions of non-defaulting CDS 
Clearing Members, and thus provide additional protection to such 
contributions of non-defaulting CDS Clearing Members. ICE Clear Europe 
notes in this regard ongoing industry discussions concerning the 
appropriate level and seniority of clearing house contributions to 
default resources generally.\8\ In light of the evolving views of 
market participants on these issues, ICE Clear Europe believes that the 
amendments will provide it appropriate flexibility to determine to 
change the balance between Clearing House CDS Initial Contributions and 
Clearing House CDS GF Contributions to place more of its own assets at 
risk earlier in the waterfall of default resources. In ICE Clear 
Europe's view, the amendments will thus promote the prompt and accurate 
clearance and settlement of cleared contracts, and the protection of 
market participants and the public interest, within the meaning of 
Section 17A(b)(3)(F) of the Act.\9\ For similar reasons, ICE Clear 
Europe believes that the amendments are also consistent with the 
requirements regarding financial resources in Rule 17Ad-22(b)(3) \10\ 
and Rule 17Ad-22(e)(4).\11\ As noted above, the decision to redesignate 
any amount of Clearing House CDS GF Contribution as Clearing House CDS 
Initial Contribution (and to make any change in any such redesignation) 
would be made by the ICE Clear Europe Board, in consultation with the 
CDS Risk Committee. As a result, in ICE Clear Europe's view, the 
amendments incorporate governance arrangements that fulfill the 
requirements of Rule 17Ad-22(e)(2),\12\ including that the governance 
arrangements, among other matters, support the public interest 
requirements of Section 17A of the Act and the objectives of 
participants, as set forth above.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
    \6\ 17 CFR 240.17Ad-22.
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ See, e.g., Committee on Payment and Market Infrastructures/
Board of the International Organization of Securities Commissions, 
Resilience and Recovery of Central Counterparties (CCPs): Further 
Guidance on the PFMIs (consultative report) (August 2016), paragraph 
6.
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
    \10\ 17 CFR 240.17Ad-22(b)(3).
    \11\ 17 CFR 240.17Ad-22(e)(4).
    \12\ 17 CFR 240.17Ad-22(e)(2).
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B. Clearing Agency'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 will solely affect the relative priority of ICE Clear 
Europe's contributions to CDS default resources, in a manner that will 
allow ICE Clear Europe to use more such resources prior to the use of 
any CDS Guaranty Fund contributions of non-defaulting CDS Clearing 
Members. ICE Clear Europe does not believe the amendments would 
adversely affect Clearing Members, materially affect the cost of 
clearing, adversely affect access to clearing in CDS Contracts for 
Clearing Members or their customers, or otherwise adversely affect 
competition in clearing services. As a result, ICE

[[Page 23694]]

Clear Europe does not believe that the amendments would impose any 
impact or burden on competition that is not appropriate in furtherance 
of the purpose of the Act.

C. Clearing Agency'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, Security-Based 
Swap Submission and Advance Notice 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.
    The proposal shall not take effect until all regulatory actions 
required with respect to the proposal are completed.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, security-based swap submission or advance notice 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-2017-005 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-2017-005. 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, security-
based swap submission or advance notice that are filed with the 
Commission, and all written communications relating to the proposed 
rule change, security-based swap submission or advance notice 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-2017-005 
and should be submitted on or before June 13, 2017.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-10462 Filed 5-22-17; 8:45 am]
BILLING CODE 8011-01-P



                                                23692                           Federal Register / Vol. 82, No. 98 / Tuesday, May 23, 2017 / Notices

                                                   At any time within 60 days of the                    inspection and copying at the principal               II. Clearing Agency’s Statement of the
                                                filing of the proposed rule change, the                 office of the Exchange. All comments                  Purpose of, and Statutory Basis for, the
                                                Commission summarily may                                received will be posted without change;               Proposed Rule Change, Security-Based
                                                temporarily suspend such rule change if                 the Commission does not edit personal                 Swap Submission or Advance Notice
                                                it appears to the Commission that such                  identifying information from                             In its filing with the Commission, ICE
                                                action is: (i) Necessary or appropriate in              submissions. You should submit only                   Clear Europe included statements
                                                the public interest; (ii) for the protection            information that you wish to make                     concerning the purpose of and basis for
                                                of investors; or (iii) otherwise in                     available publicly. All submissions                   the proposed rule change and discussed
                                                furtherance of the purposes of the Act.                 should refer to File Number SR–                       any comments it received on the
                                                If the Commission takes such action, the                                                                      proposed rule change. The text of these
                                                                                                        NASDAQ–2017–040 and should be
                                                Commission shall institute proceedings                                                                        statements may be examined at the
                                                                                                        submitted on or before June 13, 2017.
                                                to determine whether the proposed rule                                                                        places specified in Item IV below. ICE
                                                should be approved or disapproved.                        For the Commission, by the Division of
                                                                                                                                                              Clear Europe has prepared summaries,
                                                                                                        Trading and Markets, pursuant to delegated
                                                IV. Solicitation of Comments                                                                                  set forth in sections A, B, and C below,
                                                                                                        authority.14
                                                                                                                                                              of the most significant aspects of such
                                                  Interested persons are invited to                     Eduardo A. Aleman,                                    statements.
                                                submit written data, views, and                         Assistant Secretary.
                                                arguments concerning the foregoing,                                                                           A. Clearing Agency’s Statement of the
                                                                                                        [FR Doc. 2017–10464 Filed 5–22–17; 8:45 am]
                                                including whether the proposed rule                                                                           Purpose of, and Statutory Basis for, the
                                                change is consistent with the Act.                      BILLING CODE 8011–01–P                                Proposed Rule Change, Security-Based
                                                Comments may be submitted by any of                                                                           Swap Submission or Advance Notice
                                                the following methods:
                                                                                                        SECURITIES AND EXCHANGE                               1. Purpose
                                                Electronic Comments                                     COMMISSION                                               ICE Clear Europe proposes revising its
                                                  • Use the Commission’s Internet                                                                             Finance Procedures to implement
                                                comment form (http://www.sec.gov/                       [Release No. 34–80706; File No. SR–ICEEU–             certain changes to the Clearing House
                                                rules/sro.shtml); or                                    2017–005]                                             CDS Contributions. These revisions do
                                                  • Send an email to rule-comments@                                                                           not involve any changes to the ICE Clear
                                                sec.gov. Please include File Number SR–                 Self-Regulatory Organizations; ICE                    Europe Clearing Rules.3
                                                NASDAQ–2017–040 on the subject line.                    Clear Europe Limited; Notice of Filing                   ICE Clear Europe maintains a
                                                Paper Comments                                          of Proposed Rule Change, Security-                    waterfall of defined default resources,
                                                                                                        Based Swap Submission or Advance                      including its CDS Guaranty Fund, to
                                                   • Send paper comments in triplicate                                                                        provide financial resources to cover
                                                                                                        Notice Relating to Clearing House
                                                to Secretary, Securities and Exchange                                                                         potential losses resulting from the
                                                Commission, 100 F Street NE.,                           Contributions to CDS Default
                                                                                                        Resources                                             default of a CDS Clearing Member.4 The
                                                Washington, DC 20549–1090.                                                                                    CDS Guaranty Fund consists of required
                                                All submissions should refer to File                    May 17, 2017.                                         contributions made by CDS Clearing
                                                Number SR–NASDAQ–2017–040. This                                                                               Members. Currently, ICE Clear Europe’s
                                                file number should be included on the                      Pursuant to Section 19(b)(1) of the
                                                                                                                                                              contribution to CDS default resources is
                                                subject line if email is used. To help the              Securities Exchange Act of 1934
                                                                                                                                                              split into two parts—namely, a Clearing
                                                Commission process and review your                      (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                                                                                                                                              House CDS Initial Contribution and a
                                                comments more efficiently, please use                   notice is hereby given that on May 4,
                                                                                                                                                              Clearing House CDS GF Contribution.
                                                only one method. The Commission will                    2017, ICE Clear Europe Limited (‘‘ICE                 Under the default resource waterfall,
                                                post all comments on the Commission’s                   Clear Europe’’ or ‘‘Clearing House’’)                 assets (including margin and CDS
                                                Internet Web site (http://www.sec.gov/                  filed with the Securities and Exchange                Guaranty Fund contributions) provided
                                                rules/sro.shtml). Copies of the                         Commission (‘‘Commission’’) the                       by the defaulting CDS Clearing Member
                                                submission, all subsequent                              proposed rule change described in Items               are used first to cover default losses. In
                                                amendments, all written statements                      I, II and III below, which Items have                 the event the Clearing House
                                                with respect to the proposed rule                       been primarily prepared by ICE Clear                  experiences losses from the default of a
                                                change that are filed with the                          Europe. The Commission is publishing                  CDS Clearing Member that exceed the
                                                Commission, and all written                             this notice to solicit comments on the                resources provided by the defaulter, the
                                                communications relating to the                          proposed rule change from interested                  Clearing House CDS Initial Contribution
                                                proposed rule change between the                        persons.                                              would, in accordance with the Rules, be
                                                Commission and any person, other than                                                                         applied next, and prior the use of CDS
                                                those that may be withheld from the                     I. Clearing Agency’s Statement of the                 Guaranty Fund contributions of non-
                                                public in accordance with the                           Terms of Substance of the Proposed                    defaulting CDS Clearing Members.
                                                provisions of 5 U.S.C. 552, will be                     Rule Change, Security-Based Swap                      Following exhaustion of the Clearing
                                                available for Web site viewing and                      Submission, or Advance Notice                         House CDS Initial Contribution, the CDS
                                                printing in the Commission’s Public                                                                           Guaranty Fund contributions of non-
                                                Reference Room, 100 F Street NE.,                          The principal purpose of the changes
                                                                                                        is to modify the ICE Clear Europe                     defaulting CDS Clearing Members and
                                                Washington, DC 20549, on official                                                                             the Clearing House CDS GF
                                                business days between the hours of                      Finance Procedures to implement
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                              Contribution would be applied to cover
                                                10:00 a.m. and 3:00 p.m. Copies of such                 certain changes to the Clearing House
                                                filing also will be available for                       CDS Contributions.                                       3 Capitalized terms used but not defined herein

                                                                                                                                                              have the meanings specified in the ICE Clear
                                                the proposed rule change at least five business days                                                          Europe Clearing Rules (the ‘‘Rules’’).
                                                prior to the date of filing of the proposed rule          14 17
                                                                                                                                                                 4 The waterfall of application of default resources
                                                                                                                CFR 200.30–3(a)(12).
                                                change, or such shorter time as designated by the                                                             upon the default of a CDS Clearing Member is set
                                                                                                          1 15 U.S.C. 78s(b)(1).
                                                Commission. The Exchange has satisfied this                                                                   out in ICE Clear Europe Rules 908(c) and (g), and
                                                requirement.                                              2 17 CFR 240.19b–4.                                 is summarized here for reference.



                                           VerDate Sep<11>2014   21:15 May 22, 2017   Jkt 241001   PO 00000   Frm 00172   Fmt 4703   Sfmt 4703   E:\FR\FM\23MYN1.SGM   23MYN1


                                                                               Federal Register / Vol. 82, No. 98 / Tuesday, May 23, 2017 / Notices                                                   23693

                                                CDS default losses, on a pro rata basis.                cross-reference. Paragraph 15.2(g) would              of market participants on these issues,
                                                The respective amounts of the Clearing                  be revised to clarify that the Clearing               ICE Clear Europe believes that the
                                                House CDS Initial Contribution and                      House would not be required or                        amendments will provide it appropriate
                                                Clearing House CDS GF Contribution                      permitted to redesignate any amount as                flexibility to determine to change the
                                                are determined in accordance with                       Clearing House CDS Initial                            balance between Clearing House CDS
                                                paragraph 15.2 of the Finance                           Contributions as Clearing House CDS                   Initial Contributions and Clearing House
                                                Procedures, and are notified to Clearing                GF Contributions solely as a result of                CDS GF Contributions to place more of
                                                Members by Circular.                                    changes in the amounts of a Clearing                  its own assets at risk earlier in the
                                                   ICE Clear Europe proposes to amend                   House CDS Contribution because of                     waterfall of default resources. In ICE
                                                paragraph 15.2 of the Finance                           exchange rate fluctuations.                           Clear Europe’s view, the amendments
                                                Procedures in order to permit the                         The decision to redesignate any                     will thus promote the prompt and
                                                Clearing House to redesignate all or a                  amount of Clearing House CDS GF                       accurate clearance and settlement of
                                                part of the Clearing House CDS GF                       Contribution as Clearing House CDS                    cleared contracts, and the protection of
                                                Contribution as additional Clearing                     Initial Contribution (and to make any                 market participants and the public
                                                House CDS Initial Contribution. ICE                     change in any such redesignation)                     interest, within the meaning of Section
                                                Clear Europe does not propose to                        would be made by the ICE Clear Europe                 17A(b)(3)(F) of the Act.9 For similar
                                                change the aggregate amount of, or basis                Board, in consultation with the CDS                   reasons, ICE Clear Europe believes that
                                                for calculating, the Clearing House CDS                 Risk Committee.                                       the amendments are also consistent
                                                GF Contribution and Clearing House                                                                            with the requirements regarding
                                                                                                        2. Statutory Basis
                                                CDS Initial Contribution. The effect of                                                                       financial resources in Rule 17Ad–
                                                any such redesignation would be that                       ICE Clear Europe believes that the                 22(b)(3) 10 and Rule 17Ad–22(e)(4).11 As
                                                more of ICE Clear Europe’s contribution                 changes described herein are consistent
                                                                                                                                                              noted above, the decision to redesignate
                                                to CDS default resources would be used                  with the requirements of Section 17A of
                                                                                                                                                              any amount of Clearing House CDS GF
                                                at an earlier point in the waterfall of                 the Act 5 and the regulations thereunder
                                                                                                                                                              Contribution as Clearing House CDS
                                                default resources, prior to the use of                  applicable to it, including the standards
                                                                                                                                                              Initial Contribution (and to make any
                                                CDS Guaranty Fund contributions of                      under Rule 17Ad–22,6 and are
                                                                                                                                                              change in any such redesignation)
                                                non-defaulting CDS Clearing Members.                    consistent with the prompt and accurate
                                                                                                                                                              would be made by the ICE Clear Europe
                                                Such a redesignation will thus provide                  clearance of and settlement of securities
                                                                                                                                                              Board, in consultation with the CDS
                                                greater protection of CDS Clearing                      transactions and, to the extent
                                                                                                                                                              Risk Committee. As a result, in ICE
                                                Member contributions of non-defaulting                  applicable, derivative agreements,
                                                                                                                                                              Clear Europe’s view, the amendments
                                                CDS Clearing Members, and reduce the                    contracts and transactions, the
                                                                                                                                                              incorporate governance arrangements
                                                likelihood that the use of CDS Clearing                 safeguarding of securities and funds in
                                                                                                        the custody or control of ICE Clear                   that fulfill the requirements of Rule
                                                Member contributions will be necessary                                                                        17Ad–22(e)(2),12 including that the
                                                in a default scenario.                                  Europe or for which it is responsible
                                                                                                        and the protection of investors and the               governance arrangements, among other
                                                   Specifically, paragraph 15.2(a) of the
                                                                                                        public interest, within the meaning of                matters, support the public interest
                                                Finance Procedures, which establishes
                                                                                                        Section 17A(b)(3)(F) of the Act.7 ICE                 requirements of Section 17A of the Act
                                                the amount of the Clearing House CDS
                                                                                                        Clear Europe is not changing the                      and the objectives of participants, as set
                                                Initial Contribution, would be amended
                                                                                                        aggregate level of its contributions to               forth above.
                                                to provide that the Clearing House can
                                                increase such amount by redesignating                   CDS default resources, or the overall                 B. Clearing Agency’s Statement on
                                                all or part of the Clearing House CDS GF                level of CDS default resources generally.             Burden on Competition
                                                Contribution as a Clearing House CDS                    The amendments will provide the
                                                                                                        Clearing House the ability to move its                   ICE Clear Europe does not believe the
                                                Initial Contribution. ICE Clear Europe
                                                                                                        own contributions to CDS default                      proposed changes to the rules would
                                                would be required to notify Clearing
                                                                                                        resources higher in the waterfall of                  have any impact, or impose any burden,
                                                Members by circular of any such
                                                                                                        default resources, so that more of such               on competition not necessary or
                                                redesignation.
                                                   Conforming amendments have been                      contributions will be used prior to the               appropriate in furtherance of the
                                                made in paragraph 15.2(b) to refer to                   CDS Guaranty Fund contributions of                    purpose of the Act. The amendments
                                                amounts so redesignated as Clearing                     non-defaulting CDS Clearing Members.                  will solely affect the relative priority of
                                                House CDS Initial Contributions, as well                Such a redesignation will make it less                ICE Clear Europe’s contributions to CDS
                                                as to clarify a cross-reference. Similar                likely that the Clearing House would                  default resources, in a manner that will
                                                conforming changes are made in                          need to use the CDS Guaranty Fund                     allow ICE Clear Europe to use more
                                                paragraph 15.2(c), which establishes the                contributions of non-defaulting CDS                   such resources prior to the use of any
                                                amount of required Clearing House CDS                   Clearing Members, and thus provide                    CDS Guaranty Fund contributions of
                                                GF Contributions, to take into account                  additional protection to such                         non-defaulting CDS Clearing Members.
                                                any amounts thereof that are                            contributions of non-defaulting CDS                   ICE Clear Europe does not believe the
                                                redesignated as Clearing House CDS                      Clearing Members. ICE Clear Europe                    amendments would adversely affect
                                                Initial Contributions. Paragraph 15.2(d)                notes in this regard ongoing industry                 Clearing Members, materially affect the
                                                would be revised to clarify the                         discussions concerning the appropriate                cost of clearing, adversely affect access
                                                obligation to replenish Clearing CDS GF                 level and seniority of clearing house                 to clearing in CDS Contracts for Clearing
                                                Contributions (including such amounts                   contributions to default resources                    Members or their customers, or
                                                that are redesignated as Clearing House                 generally.8 In light of the evolving views            otherwise adversely affect competition
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                                                Initial CDS Contributions) when applied                                                                       in clearing services. As a result, ICE
                                                in accordance with the Rules, as well as                  5 15 U.S.C. 78q–1.
                                                                                                          6 17 CFR 240.17Ad–22.                               Further Guidance on the PFMIs (consultative
                                                to provide that any required                                                                                  report) (August 2016), paragraph 6.
                                                                                                          7 15 U.S.C. 78q–1(b)(3)(F).
                                                replenishments of the Clearing House                      8 See, e.g., Committee on Payment and Market
                                                                                                                                                                9 15 U.S.C. 78q–1(b)(3)(F).
                                                CDS GF Contribution could similarly be                  Infrastructures/Board of the International
                                                                                                                                                                10 17 CFR 240.17Ad–22(b)(3).

                                                redesignated as Clearing House CDS                      Organization of Securities Commissions, Resilience      11 17 CFR 240.17Ad–22(e)(4).

                                                Initial Contributions and to clarify a                  and Recovery of Central Counterparties (CCPs):          12 17 CFR 240.17Ad–22(e)(2).




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                                                23694                          Federal Register / Vol. 82, No. 98 / Tuesday, May 23, 2017 / Notices

                                                Clear Europe does not believe that the                  only one method. The Commission will                   DATES:  The deadline to submit
                                                amendments would impose any impact                      post all comments on the Commission’s                  comments on the proposed matching
                                                or burden on competition that is not                    Internet Web site (http://www.sec.gov/                 program is 30 days from the date of
                                                appropriate in furtherance of the                       rules/sro.shtml). Copies of the                        publication of this notice. The matching
                                                purpose of the Act.                                     submission, all subsequent                             program will be effective on July 1, 2017
                                                                                                        amendments, all written statements                     and will expire on December 31, 2018.
                                                C. Clearing Agency’s Statement on
                                                                                                        with respect to the proposed rule                      ADDRESSES: Interested parties may
                                                Comments on the Proposed Rule
                                                                                                        change, security-based swap submission                 comment on this notice by either
                                                Change Received From Members,
                                                                                                        or advance notice that are filed with the              telefaxing to (410) 966–0869, writing to
                                                Participants or Others
                                                                                                        Commission, and all written                            Mary Ann Zimmerman, Acting
                                                  Written comments relating to the                      communications relating to the                         Executive Director, Office of Privacy
                                                proposed changes to the rules have not                  proposed rule change, security-based                   and Disclosure, Office of the General
                                                been solicited or received. ICE Clear                   swap submission or advance notice                      Counsel, Social Security
                                                Europe will notify the Commission of                    between the Commission and any                         Administration, 617 Altmeyer Building,
                                                any written comments received by ICE                    person, other than those that may be                   6401 Security Boulevard, Baltimore, MD
                                                Clear Europe.                                           withheld from the public in accordance                 21235–6401, or emailing at
                                                III. Date of Effectiveness of the                       with the provisions of 5 U.S.C. 552, will              Mary.Ann.Zimmerman@ssa.gov. All
                                                Proposed Rule Change, Security-Based                    be available for Web site viewing and                  comments received will be available for
                                                Swap Submission and Advance Notice                      printing in the Commission’s Public                    public inspection at this address.
                                                and Timing for Commission Action                        Reference Room, 100 F Street NE.,
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT:
                                                                                                        Washington, DC 20549, on official
                                                   Within 45 days of the date of                                                                               Interested parties may submit general
                                                                                                        business days between the hours of
                                                publication of this notice in the Federal                                                                      questions about the matching program
                                                                                                        10:00 a.m. and 3:00 p.m. Copies of such
                                                Register or within such longer period                                                                          to Mary Ann Zimmerman, Acting
                                                                                                        filings will also be available for
                                                up to 90 days (i) as the Commission may                                                                        Executive Director, Office of Privacy
                                                                                                        inspection and copying at the principal
                                                designate if it finds such longer period                                                                       and Disclosure, Office of the General
                                                                                                        office of ICE Clear Europe and on ICE
                                                to be appropriate and publishes its                                                                            Counsel, by any of the means shown
                                                                                                        Clear Europe’s Web site at https://
                                                reasons for so finding or (ii) as to which                                                                     above.
                                                                                                        www.theice.com/clear-europe/
                                                the self-regulatory organization                        regulation#rule-filings.                               SUPPLEMENTARY INFORMATION:      The
                                                consents, the Commission will:                             All comments received will be posted                Computer Matching and Privacy
                                                   (A) By order approve or disapprove                   without change; the Commission does                    Protection Act of 1988 (Public Law
                                                the proposed rule change or                             not edit personal identifying                          (Pub. L.) 100–503), amended the Privacy
                                                   (B) institute proceedings to determine               information from submissions. You                      Act (5 U.S.C. 552a) by describing the
                                                whether the proposed rule change                        should submit only information that                    conditions under which computer
                                                should be disapproved.                                  you wish to make available publicly. All               matching involving the Federal
                                                   The proposal shall not take effect                   submissions should refer to File                       government could be performed and
                                                until all regulatory actions required                   Number SR–ICEEU–2017–005 and                           adding certain protections for persons
                                                with respect to the proposal are                        should be submitted on or before June                  applying for, and receiving, Federal
                                                completed.                                              13, 2017.                                              benefits. Section 7201 of the Omnibus
                                                IV. Solicitation of Comments                              For the Commission, by the Division of               Budget Reconciliation Act of 1990 (Pub.
                                                                                                        Trading and Markets, pursuant to delegated             L. 101–508) further amended the
                                                  Interested persons are invited to
                                                                                                        authority.13                                           Privacy Act regarding protections for
                                                submit written data, views, and
                                                                                                        Eduardo A. Aleman,                                     such persons.
                                                arguments concerning the foregoing,
                                                including whether the proposed rule                     Assistant Secretary.                                     The Privacy Act, as amended,
                                                change, security-based swap submission                  [FR Doc. 2017–10462 Filed 5–22–17; 8:45 am]
                                                                                                                                                               regulates the use of computer matching
                                                or advance notice is consistent with the                                                                       by Federal agencies when records in a
                                                                                                        BILLING CODE 8011–01–P
                                                Act. Comments may be submitted by                                                                              system of records are matched with
                                                any of the following methods:                                                                                  other Federal, State, or local government
                                                                                                                                                               records. It requires Federal agencies
                                                Electronic Comments                                     SOCIAL SECURITY ADMINISTRATION                         involved in computer matching
                                                  • Use the Commission’s Internet                                                                              programs to:
                                                                                                        [Docket No. SSA 2016–0042]                               (1) Negotiate written agreements with
                                                comment form (http://www.sec.gov/
                                                rules/sro.shtml) or                                                                                            the other agency or agencies
                                                                                                        Privacy Act of 1974; Matching Program
                                                  • Send an email to rule-comments@                                                                            participating in the matching programs;
                                                sec.gov. Please include File Number SR–                 AGENCY:      Social Security Administration              (2) Obtain approval of the matching
                                                ICEEU–2017–005 on the subject line.                     (SSA).                                                 agreement by the Data Integrity Boards
                                                                                                        ACTION:Notice of a New Matching                        of the participating Federal agencies;
                                                Paper Comments                                                                                                   (3) Publish notice of the computer
                                                                                                        Program.
                                                  • Send paper comments in triplicate                                                                          matching program in the Federal
                                                to Secretary, Securities and Exchange                   SUMMARY:   In accordance with the                      Register;
                                                Commission, 100 F Street NE.,                           provisions of the Privacy Act, as                        (4) Furnish detailed reports about
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                                                Washington, DC 20549–1090.                              amended, this notice announces a new                   matching programs to Congress and
                                                All submissions should refer to File                    computer matching program that we are                  OMB;
                                                Number SR–ICEEU–2017–005. This file                     currently conducting with the States,                    (5) Notify applicants and beneficiaries
                                                number should be included on the                        including tribal agencies and United                   that their records are subject to
                                                subject line if email is used. To help the              States (U.S.) territories.                             matching; and
                                                Commission process and review your                                                                               (6) Verify match findings before
                                                comments more efficiently, please use                     13 17   CFR 200.30–3(a)(12).                         reducing, suspending, terminating, or


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Document Created: 2017-05-23 02:14:36
Document Modified: 2017-05-23 02:14:36
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation82 FR 23692 

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