82 FR 32036 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the ICE Clear Europe Finance Procedures

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 131 (July 11, 2017)

Page Range		32036-32037
FR Document		2017-14426
Federal Register, Volume 82 Issue 131 (Tuesday, July 11, 2017)
[Federal Register Volume 82, Number 131 (Tuesday, July 11, 2017)]
[Notices]
[Pages 32036-32037]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14426]



[[Page 32036]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-81075; File No. SR-ICEEU-2017-009]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Amendments to the ICE Clear Europe Finance Procedures

July 5, 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 June 21, 2017, ICE Clear Europe Limited (``ICE Clear Europe'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule changes described in Items I, II and III below, which 
Items have been primarily prepared by ICE Clear Europe. ICE Clear 
Europe filed the proposed rule change pursuant to Section 19(b)(3)(A) 
of the Act \3\ and Rule 19b-4(f)(4)(ii) thereunder,\4\ so that the 
proposal was effective upon filing with the Commission. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The principal purpose of the proposed rule change is to amend the 
ICE Clear Europe Finance Procedures to add Australian dollars (``AUD'') 
as a currency eligible for variation margin and settlement payments for 
financials and softs contracts in the F&O product category which settle 
in that currency.

II. Clearing Agency'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 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

i. Purpose
    ICE Clear Europe proposes revising its Finance Procedures to add 
AUD as a currency eligible for variation margin and settlement payments 
for financials and softs contracts in the F&O product category which 
settle in that currency. These revisions do not involve any changes to 
the ICE Clear Europe Clearing Rules.\5\
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in the ICE Clear Europe Clearing Rules (the 
``Rules'').
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    Specifically, ICE Clear Europe proposes to add AUD to the list of 
eligible variation margin and settlement currencies for financials and 
softs contracts in paragraph 2.1 of the Finance Procedures. Other 
conforming changes have been made in paragraphs 4.1(a), (b) and (c) and 
4.4(a) of the Finance Procedures. As with the other currencies 
currently eligible to be used as variation margin and settlement 
payments for financials and softs contracts, AUD will be subject to 
haircuts determined pursuant to the Finance Procedures and existing ICE 
Clear Europe haircut policies and procedures.
ii. Statutory Basis
    ICE Clear Europe believes that the changes described herein are 
consistent with the requirements of Section 17A of the Act \6\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22,\7\ and in particular 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.\8\ The amendments are intended to 
revise the Finance Procedures to permit variation margin and settlement 
payments to be made in AUD for certain financials and softs contracts 
that settle in such currency. In ICE Clear Europe's view, the 
amendments will enhance the procedures for settlement of cash variation 
margin and settlement payments, and thus promote the prompt and 
accurate clearance and settlement of cleared financials and softs 
contracts. As a result, ICE Clear Europe believes the amendments are 
consistent with the requirements of Section 17A of the Act and the 
regulations thereunder.
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    \6\ 15 U.S.C. 78q-1.
    \7\ 17 CFR 240.17Ad-22.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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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. ICE 
Clear Europe is adopting the amendments to the Finance Procedures in 
order to permit Clearing Members to provide AUD, on an optional basis, 
as variation margin and settlement payments for certain financials and 
softs contracts. ICE Clear Europe does not believe the amendments would 
materially affect the cost of clearing, adversely affect access to 
clearing in these products for Clearing Members or their customers, or 
otherwise adversely affect competition in clearing services. As a 
result, ICE Clear Europe believes that any impact or burden on 
competition from such amendments would be 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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and Rule 19b-4(f)(4)(ii).\10\ ICE Clear 
Europe believes that summary effectiveness is warranted with respect to 
the proposed rule changes because the proposed amendments effect a 
change in an existing service of a registered clearing agency that 
primarily affects the 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, within the meaning of Rule 19b-4(f)(4)(ii). Use of AUD will be 
limited to

[[Page 32037]]

F&O contracts that are financial and softs contracts. As a result, the 
proposed changes will not affect the Clearing House's CDS clearing 
operations or CDS Clearing Members acting in their capacity as such. In 
addition, the proposed amendments will not affect ICE Clear Europe's 
financial resources or risk management applicable to the CDS clearing 
business. Accordingly, ICE Clear Europe does not believe that the 
proposed amendments will have a significant effect on its securities 
clearing activity as a registered securities clearing agency or the 
rights or obligations of clearing members with respect thereto. At any 
time within 60 days of the filing of the proposed rule change, the 
Commission summarily may temporarily suspend such rule change, if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.
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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(4)(ii).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to [email protected]. Please include 
File Number SR-ICEEU-2017-009 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-2017-009. 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-2017-009 
and should be submitted on or before August 1, 2017.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
Eduardo A. Aleman,
 Assistant Secretary.
[FR Doc. 2017-14426 Filed 7-10-17; 8:45 am]
 BILLING CODE 8011-01-P
32036 Federal Register / Vol. 82, No. 131 / Tuesday, July 11, 2017 / Notices

SECURITIES AND EXCHANGE A. Clearing Agency’s Statement of the the amendments are consistent with the
COMMISSION Purpose of, and Statutory Basis for, the requirements of Section 17A of the Act
Proposed Rule Change and the regulations thereunder.
[Release No. 34–81075; File No. SR–ICEEU– i. Purpose B. Clearing Agency’s Statement on
2017–009] Burden on Competition
ICE Clear Europe proposes revising its
Finance Procedures to add AUD as a ICE Clear Europe does not believe the
Self-Regulatory Organizations; ICE
currency eligible for variation margin proposed changes to the rules would
Clear Europe Limited; Notice of Filing
and settlement payments for financials have any impact, or impose any burden,
and Immediate Effectiveness of a
and softs contracts in the F&O product on competition not necessary or
Proposed Rule Change Relating to
category which settle in that currency. appropriate in furtherance of the
Amendments to the ICE Clear Europe These revisions do not involve any purpose of the Act. ICE Clear Europe is
Finance Procedures changes to the ICE Clear Europe adopting the amendments to the
July 5, 2017. Clearing Rules.5 Finance Procedures in order to permit
Specifically, ICE Clear Europe Clearing Members to provide AUD, on
Pursuant to Section 19(b)(1) of the proposes to add AUD to the list of an optional basis, as variation margin
Securities Exchange Act of 1934 eligible variation margin and settlement and settlement payments for certain
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 currencies for financials and softs financials and softs contracts. ICE Clear
notice is hereby given that on June 21, contracts in paragraph 2.1 of the Europe does not believe the
2017, ICE Clear Europe Limited (‘‘ICE Finance Procedures. Other conforming amendments would materially affect the
Clear Europe’’) filed with the Securities changes have been made in paragraphs cost of clearing, adversely affect access
and Exchange Commission 4.1(a), (b) and (c) and 4.4(a) of the to clearing in these products for
(‘‘Commission’’) the proposed rule Finance Procedures. As with the other Clearing Members or their customers, or
changes described in Items I, II and III currencies currently eligible to be used otherwise adversely affect competition
below, which Items have been primarily as variation margin and settlement in clearing services. As a result, ICE
prepared by ICE Clear Europe. ICE Clear payments for financials and softs Clear Europe believes that any impact or
Europe filed the proposed rule change contracts, AUD will be subject to burden on competition from such
pursuant to Section 19(b)(3)(A) of the haircuts determined pursuant to the amendments would be appropriate in
Act 3 and Rule 19b–4(f)(4)(ii) Finance Procedures and existing ICE furtherance of the purpose of the Act.
thereunder,4 so that the proposal was Clear Europe haircut policies and
effective upon filing with the procedures. C. Clearing Agency’s Statement on
Commission. The Commission is Comments on the Proposed Rule
ii. Statutory Basis Change Received From Members,
publishing this notice to solicit
comments on the proposed rule change ICE Clear Europe believes that the Participants or Others
from interested persons. changes described herein are consistent Written comments relating to the
with the requirements of Section 17A of proposed changes to the rules have not
I. Clearing Agency’s Statement of the the Act 6 and the regulations thereunder been solicited or received. ICE Clear
Terms of Substance of the Proposed applicable to it, including the standards Europe will notify the Commission of
Rule Change under Rule 17Ad–22,7 and in particular any written comments received by ICE
are consistent with the prompt and Clear Europe.
The principal purpose of the accurate clearance of and settlement of
proposed rule change is to amend the securities transactions and, to the extent III. Date of Effectiveness of the
ICE Clear Europe Finance Procedures to applicable, derivative agreements, Proposed Rule Change
add Australian dollars (‘‘AUD’’) as a contracts and transactions, the The foregoing rule change has become
currency eligible for variation margin safeguarding of securities and funds in effective pursuant to Section 19(b)(3)(A)
and settlement payments for financials the custody or control of ICE Clear of the Act 9 and Rule 19b–4(f)(4)(ii).10
and softs contracts in the F&O product Europe or for which it is responsible ICE Clear Europe believes that summary
category which settle in that currency. and the protection of investors and the effectiveness is warranted with respect
II. Clearing Agency’s Statement of the public interest, within the meaning of to the proposed rule changes because
Section 17A(b)(3)(F) of the Act.8 The the proposed amendments effect a
Purpose of, and Statutory Basis for, the
amendments are intended to revise the change in an existing service of a
Proposed Rule Change
Finance Procedures to permit variation registered clearing agency that primarily
In its filing with the Commission, ICE margin and settlement payments to be affects the operations of the clearing
Clear Europe included statements made in AUD for certain financials and agency with respect to products that are
concerning the purpose of and basis for softs contracts that settle in such not securities, including futures that are
the proposed rule change and discussed currency. In ICE Clear Europe’s view, not security futures, swaps that are not
any comments it received on the the amendments will enhance the security-based swaps or mixed swaps,
proposed rule change. The text of these procedures for settlement of cash and forwards that are not security
statements may be examined at the variation margin and settlement forwards, and does not significantly
places specified in Item IV below. ICE payments, and thus promote the prompt affect any securities clearing operations
Clear Europe has prepared summaries, and accurate clearance and settlement of of the clearing agency or any rights or
set forth in sections A, B, and C below, cleared financials and softs contracts. obligations of the clearing agency with
mstockstill on DSK30JT082PROD with NOTICES

of the most significant aspects of such As a result, ICE Clear Europe believes respect to securities clearing or persons
statements. 5 Capitalized terms used but not defined herein
using such securities clearing service,
have the meanings specified in the ICE Clear
within the meaning of Rule 19b–
1 15 U.S.C. 78s(b)(1). Europe Clearing Rules (the ‘‘Rules’’). 4(f)(4)(ii). Use of AUD will be limited to
2 17 CFR 240.19b–4. 6 15 U.S.C. 78q–1.
3 15 U.S.C. 78s(b)(3)(A). 7 17 CFR 240.17Ad–22. 9 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(ii). 8 15 U.S.C. 78q–1(b)(3)(F). 10 17 CFR 240.19b–4(f)(4)(ii).

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Federal Register / Vol. 82, No. 131 / Tuesday, July 11, 2017 / Notices 32037

F&O contracts that are financial and available for Web site viewing and For the reasons discussed below, the
softs contracts. As a result, the proposed printing in the Commission’s Public Commission is approving the proposed
changes will not affect the Clearing Reference Room, 100 F Street NE., rule change.
House’s CDS clearing operations or CDS Washington, DC 20549, on official
II. Description of the Proposed Rule
Clearing Members acting in their business days between the hours of
Change
capacity as such. In addition, the 10:00 a.m. and 3:00 p.m. Copies of such
proposed amendments will not affect filings will also be available for ICE Clear Europe maintains financial
ICE Clear Europe’s financial resources inspection and copying at the principal resources to cover potential losses
or risk management applicable to the office of ICE Clear Europe and on ICE resulting from a CDS Clearing Member
CDS clearing business. Accordingly, ICE Clear Europe’s Web site at https:// default by collecting margin from CDS
Clear Europe does not believe that the www.theice.com/clear-europe/ Clearing Members, maintaining the CDS
proposed amendments will have a regulation#rule-filings. Guaranty Fund which is made up of
significant effect on its securities All comments received will be posted CDS Member Contributions, and
clearing activity as a registered without change; the Commission does allocating its own contribution. In the
securities clearing agency or the rights not edit personal identifying event that ICE Clear Europe experiences
or obligations of clearing members with information from submissions. You losses from the default of a CDS
respect thereto. At any time within 60 should submit only information that Clearing Member, it first looks to the
days of the filing of the proposed rule you wish to make available publicly. All margin and CDS Guaranty Fund
change, the Commission summarily may submissions should refer to File contributions provided by that
temporarily suspend such rule change, Number SR–ICEEU–2017–009 and defaulting CDS Clearing Member. Next,
if it appears to the Commission that should be submitted on or before ICE Clear Europe applies part of its own
such action is necessary or appropriate August 1, 2017. contribution—the Clearing House CDS
in the public interest, for the protection Initial Contribution. Third, ICE Clear
For the Commission, by the Division of Europe applies the CDS Guaranty Fund
of investors, or otherwise in furtherance Trading and Markets, pursuant to delegated
of the purposes of the Act. contributions of non-defaulting CDS
authority.11
Clearing Members together with the
IV. Solicitation of Comments Eduardo A. Aleman, remainder of its own contribution (the
Interested persons are invited to Assistant Secretary. Clearing House CDS GF Contribution).
submit written data, views, and [FR Doc. 2017–14426 Filed 7–10–17; 8:45 am] ICE Clear Europe has proposed
arguments concerning the foregoing, BILLING CODE 8011–01–P revisions to its Finance Procedures to
including whether the proposed rule permit ICE Clear Europe to redesignate
change is consistent with the Act. all or a part of the Clearing House CDS
Comments may be submitted by any of SECURITIES AND EXCHANGE GF Contribution as the Clearing House
the following methods: COMMISSION CDS Initial Contribution. If such
[Release No. 34–81076; File No. SR–ICEEU– redesignation were to occur, the
Electronic Comments Clearing House CDS GF Contributions
2017–005]
• Use the Commission’s Internet would no longer be used pari passu
comment form (http://www.sec.gov/ Self-Regulatory Organizations; ICE with non-defaulting CDS Clearing
rules/sro.shtml) or Clear Europe Limited; Order Approving Members’ contributions to the CDS
• Send an email to rule-comments@ Proposed Rule Change Relating to Guaranty Fund. Instead, the
sec.gov. Please include File Number SR– Clearing House Contributions to CDS redesignated amounts would be used
ICEEU–2017–009 on the subject line. Default Resources before non-defaulting CDS Clearing
Paper Comments Members’ contributions. Accordingly,
July 5, 2017. ICE Clear Europe has proposed
• Send paper comments in triplicate amending paragraph 15.2(a) of the
I. Introduction
to Secretary, Securities and Exchange Finance Procedures, which establishes
Commission, 100 F Street NE., On May 4, 2017, ICE Clear Europe the amount of the Clearing House CDS
Washington, DC 20549–1090. Limited (‘‘ICE Clear Europe’’) filed with Initial Contribution, to provide that
All submissions should refer to File the Securities and Exchange ‘‘[t]he amount of the Clearing House
Number SR–ICEEU–2017–009. This file Commission (‘‘Commission’’), pursuant CDS Initial Contribution may be further
number should be included on the to Section 19(b)(1) of the Securities increased by [ICE Clear Europe]
subject line if email is used. To help the Exchange Act of 1934 (‘‘Act’’) 1 and Rule redesignating all or part of any of the
Commission process and review your 19b–4 thereunder,2 a proposed rule Clearing House CDS GF Contributions
comments more efficiently, please use change (SR–ICEEU–2017–005) to as Clearing House CDS Initial
only one method. The Commission will modify its Finance Procedures with Contributions.’’ Section 15.2(a) will also
post all comments on the Commission’s respect to ICE Clear Europe’s provide that any redesignation will be
Internet Web site (http://www.sec.gov/ contributions to funds available in the notified by circular. ICE Clear Europe
rules/sro.shtml). Copies of the event of a clearing member’s default. has also proposed additional,
submission, all subsequent The proposed rule change was conforming changes to paragraphs
amendments, all written statements published for comment in the Federal 15.2(b) to refer to amounts so
with respect to the proposed rule Register on May 23, 2017.3 The redesignated as Clearing House CDS
change that are filed with the Commission received no comment Initial Contribution; 15.2(c) to take into
mstockstill on DSK30JT082PROD with NOTICES

Commission, and all written letters regarding the proposed change. account amounts that are redesignated
communications relating to the when establishing the Clearing House
11 17
CFR 200.30–3(a)(12).
proposed rule change between the 1 15
CDS GF Contributions; 15.2(d) to
U.S.C. 78s(b)(1).
Commission and any person, other than 2 17 CFR 240.19b–4.
include redesignated amounts in the
those that may be withheld from the 3 Securities Exchange Act Release No. 34–80706 Clearing House CDS GF Contribution
public in accordance with the (May 17, 2017), 82 FR 23692 (May 23, 2017) (SR– when calculating any replenishment to
provisions of 5 U.S.C. 552, will be ICEEU–2017–005) (the ‘‘Notice’’). the Clearing House CDS GF

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Document Created: 2018-11-14 10:21:53
Document Modified: 2018-11-14 10:21:53
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		82 FR 32036