83 FR 14903 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the Futures & Options Guaranty Fund Policy
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 67 (April 6, 2018)
Federal Register Volume 83, Issue 67 (April 6, 2018)
| Page Range | 14903-14905 | |
| FR Document | 2018-07011 |
[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)] [Notices] [Pages 14903-14905] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-07011] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82979; File No. SR-ICEEU-2018-005] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the Futures & Options Guaranty Fund Policy April 2, 2018. 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 March 19, 2018, ICE Clear Europe Limited (``ICE Clear Europe'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change described in Items I, II and III below, which Items have been 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 immediately effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.\5\ --------------------------------------------------------------------------- \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). \5\ Capitalized terms used herein but not otherwise defined have the meaning set forth in the ICE Clear Europe rulebook, which is available at https://www.theice.com/clear-europe/regulation#rulebook. --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change, Security-Based Swap Submission, or Advance Notice ICE Clear Europe proposes to make certain amendments to its policies relating to its Clearing House Futures & Options (``F&O'') Initial Contribution to default resources. [[Page 14904]] 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 (a) Purpose ICE Clear Europe is taking certain steps to increase its Clearing House F&O Initial Contribution to default resources. The Clearing House F&O Initial Contribution is used to cover losses arising from the default of an F&O Clearing Member, and would be applied following the use of the defaulter's own margin and guaranty fund contributions, and prior to the application of guaranty fund contributions of non- defaulting F&O Clearing Members. Currently, the Clearing House F&O Initial Contribution is set in the F&O Guaranty Fund Policy (the ``Policy'') at a fixed level. ICE Clear Europe is proposing to modify the Policy to remove the fixed level, and to provide that ICE Clear Europe will notify Clearing Members by circular of its contribution level in effect from time to time. In connection with these changes, ICE Clear Europe expects to increase the Clearing House F&O Initial Contribution, and will notify F&O Clearing Members of the exact amount by circular. The increased Clearing House F&O Initial Contribution reflects an agreement among ICE Clear Europe and the exchanges for which it currently clears F&O Contracts (ICE Futures Europe, ICE Futures U.S., Inc., ICE Endex Markets B.V. and ICE Endex Gas Spot Ltd.) that those exchanges should contribute to the aggregate Clearing House F&O Initial Contribution. (The exchange contributions will be in addition to ICE Clear Europe's existing contribution.) In ICE Clear Europe's view, the exchange contributions will enhance the risk practices of, and the risk sharing between, the exchanges, the F&O Clearing Members, and ICE Clear Europe itself, and create an incentive for exchanges to operate fair and orderly markets and to build liquidity in stressed market conditions. Under this approach, each exchange will make a contribution pursuant to a formula based on the average F&O guaranty fund contribution of F&O Clearing Members, subject to a minimum contribution. The clearing services agreements between ICE Clear Europe and each of the relevant exchanges will be amended to reflect this requirement. (b) Statutory Basis ICE Clear Europe believes that the proposed amendments 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\ Section 17A(b)(3)(F) of the Act \8\ requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance 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 the clearing agency or for which it is responsible, and the protection of investors and the public interest. --------------------------------------------------------------------------- \6\ 15 U.S.C. 78q-1. \7\ 17 CFR 240.17Ad-22. \8\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- As discussed above, the amendments are designed to increase the Clearing House's overall financial resources to cover losses from a default of an F&O Clearing Member. In particular, the amendments increase the amount of F&O default resources that will be available to be applied after the exhaustion of the defaulting Clearing Member's margin and guaranty fund contributions, and prior to the use of guaranty fund contributions of non-defaulting Clearing Members. Moreover, the amendments enhance the protection of guaranty fund contributions made by non-defaulting F&O Clearing Members by reducing the likelihood that ICE Clear Europe would need to use such contributions in the event of an F&O Clearing Member default. The amendments thus support the prompt and accurate clearance and settlement of cleared transactions and the protection of Clearing Members and other market participants. As a result, in ICE Clear Europe's view, the amendments are consistent with the requirements 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 of Rule 17Ad-22(b)(3) \10\ and Rule 17Ad-22(e)(4).\11\ --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- In addition, as noted above, the amendments are designed to enhance the overall risk management of the Clearing House by aligning the risk objectives of the exchanges that submit F&O Contracts for clearing with those of the Clearing House. In particular, the amendments, by requiring a contribution from such exchanges, are intended to create an incentive for those exchanges to operate fair and orderly markets and to build liquidity in stressed market conditions. In ICE Clear Europe's view, the amendments are thus consistent with the risk management requirements of Rule 17Ad-22(e)(3).\12\ The amendments will apply to all exchanges based on an objective formula for determining the contribution, and accordingly are not designed to permit unfair discrimination among particular exchanges, or market participants using such exchanges, within the meaning of Section 17A(b)(3)(F) of the Act.\13\ --------------------------------------------------------------------------- \12\ 17 CFR 240.17Ad-22(e)(3). \13\ 15 U.S.C. 78q-1(b)(3)(F). --------------------------------------------------------------------------- (B) Clearing Agency's Statement on Burden on Competition ICE Clear Europe does not believe the proposed rule change would have any impact, or impose any burden, on competition not necessary or appropriate in furtherance of the purposes of the Act. The changes are being proposed in order to enhance the Clearing House's overall F&O default resources, and better align the risk objectives of the Clearing House and the exchanges for which it clears. Although the amendments will impose additional costs on such exchanges through the required exchange contribution, ICE Clear Europe believes that such additional costs appropriately reflect the risk brought to the Clearing House from F&O Contracts traded on such exchanges. Such contributions would apply to all exchanges that submit F&O contracts to the Clearing House, based on an objective formula, and are not intended to disadvantage any particular submitting exchange or trading venue. In addition, the amendments will not directly impose additional costs on F&O Clearing Members or market participants. Although exchanges could pass certain additional costs to F&O Clearing Members or other market participants through exchange fees, ICE Clear Europe does not believe this possibility would adversely affect competition among Clearing Members [[Page 14905]] or other market participants, or otherwise affect the appropriateness of the exchange contributions in light of the considerations set out above. In ICE Clear Europe's view, the amendments would also not affect access to clearing or the market for cleared services generally. As a result, ICE Clear Europe believes that any impact on competition is appropriate in furtherance of the purposes 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 amendments have not been solicited or received by ICE Clear Europe. ICE Clear Europe will notify the Commission of any comments received with respect to the proposed rule change. III. Date of Effectiveness of the Proposed Rule Change, Security-Based Swap Submission or Advance Notice and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4 \15\ thereunder. 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. --------------------------------------------------------------------------- \14\ 15 U.S.C. 78s(b)(3)(A). \15\ 17 CFR 240.19b-4. --------------------------------------------------------------------------- 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 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-2018-005 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-2018-005. 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 website (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 website 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 website at https://www.theice.com/notices/Notices.shtml?regulatoryFilings. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-ICEEU-2018-005 and should be submitted on or before April 27, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\16\ --------------------------------------------------------------------------- \16\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2018-07011 Filed 4-5-18; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices 14903
III. Date of Effectiveness of the it appears to the Commission that such to make available publicly. All
Proposed Rule Change and Timing for action is necessary or appropriate in the submissions should refer to File
Commission Action public interest, for the protection of Number SR–NASDAQ–2018–026, and
Because the foregoing proposed rule investors, or otherwise in furtherance of should be submitted on or before April
change does not: (i) Significantly affect the purposes of the Act. If the 27, 2018.
Commission takes such action, the
the protection of investors or the public For the Commission, by the Division of
Commission shall institute proceedings
interest; (ii) impose any significant Trading and Markets, pursuant to delegated
to determine whether the proposed rule
burden on competition; and (iii) become authority.13
change should be approved or
operative for 30 days from the date on Brent J. Fields,
disapproved.
which it was filed, or such shorter time
Secretary.
as the Commission may designate, it has IV. Solicitation of Comments
become effective pursuant to Section [FR Doc. 2018–07018 Filed 4–5–18; 8:45 am]
Interested persons are invited to
19(b)(3)(A) of the Act 7 and Rule 19b– submit written data, views, and BILLING CODE 8011–01–P
4(f)(6) thereunder.8 arguments concerning the foregoing,
A proposed rule change filed including whether the proposed rule
pursuant to Rule 19b–4(f)(6) under the SECURITIES AND EXCHANGE
change is consistent with the Act.
Act 9 normally does not become COMMISSION
Comments may be submitted by any of
operative for 30 days after the date of its the following methods:
filing. However, Rule 19b–4(f)(6)(iii) 10 [Release No. 34–82979; File No. SR–ICEEU–
permits the Commission to designate a Electronic Comments 2018–005]
shorter time if such action is consistent • Use the Commission’s internet
with the protection of investors and the comment form (http://www.sec.gov/ Self-Regulatory Organizations; ICE
public interest. The Exchange has rules/sro.shtml); or Clear Europe Limited; Notice of Filing
requested that the Commission waive • Send an email to rule-comments@ and Immediate Effectiveness of a
the 30-day operative delay so that the sec.gov. Please include File Number SR– Proposed Rule Change Relating to
proposed rule change may become NASDAQ–2018–026 on the subject line. Amendments to the Futures & Options
operative upon filing. The Commission Paper Comments Guaranty Fund Policy
notes that the proposed rule change
provides that the Fund will no longer be • Send paper comments in triplicate April 2, 2018.
listed and traded in accordance with the to Secretary, Securities and Exchange Pursuant to Section 19(b)(1) of the
Order, but will instead be listed and Commission, 100 F Street NE, Securities Exchange Act of 1934
traded in accordance with the generic Washington, DC 20549–1090. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
listing standards under Nasdaq Rule All submissions should refer to File notice is hereby given that on March 19,
5705(b), which include the initial and Number SR–NASDAQ–2018–026. This 2018, ICE Clear Europe Limited (‘‘ICE
continued listing standards for Index file number should be included on the Clear Europe’’) filed with the Securities
Fund Shares.11 Waiver of the operative subject line if email is used. To help the and Exchange Commission
delay would allow the Fund to begin to Commission process and review your (‘‘Commission’’) the proposed rule
operate under such generic listing comments more efficiently, please use change described in Items I, II and III
standards without delay. The only one method. The Commission will
below, which Items have been prepared
Commission believes that waiver of the post all comments on the Commission’s
by ICE Clear Europe. ICE Clear Europe
30-day operative delay is consistent internet website (http://www.sec.gov/
filed the proposed rule change pursuant
with the protection of investors and the rules/sro.shtml). Copies of the
to Section 19(b)(3)(A) of the Act 3 and
public interest. Accordingly, the submission, all subsequent
amendments, all written statements Rule 19b–4(f)(4)(ii) thereunder,4 so that
Commission hereby waives the the proposal was immediately effective
operative delay and designates the with respect to the proposed rule
change that are filed with the upon filing with the Commission. The
proposed rule change operative upon Commission is publishing this notice to
filing.12 Commission, and all written
communications relating to the solicit comments on the proposed rule
At any time within 60 days of the change from interested persons.5
filing of the proposed rule change, the proposed rule change between the
Commission summarily may Commission and any person, other than I. Clearing Agency’s Statement of the
temporarily suspend such rule change if those that may be withheld from the Terms of Substance of the Proposed
public in accordance with the Rule Change, Security-Based Swap
7 15 U.S.C. 78s(b)(3)(A). provisions of 5 U.S.C. 552, will be Submission, or Advance Notice
8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– available for website viewing and
4(f)(6)(iii) requires a self-regulatory organization to printing in the Commission’s Public ICE Clear Europe proposes to make
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
Reference Room, 100 F Street NE, certain amendments to its policies
description and text of the proposed rule change, Washington, DC 20549 on official relating to its Clearing House Futures &
at least five business days prior to the date of filing business days between the hours of Options (‘‘F&O’’) Initial Contribution to
of the proposed rule change, or such shorter time 10:00 a.m. and 3:00 p.m. Copies of the default resources.
as designated by the Commission. The Commission
has waived this requirement.
filing also will be available for
9 17 CFR 240.19b–4(f)(6). inspection and copying at the principal 13 17 CFR 200.30–3(a)(12).
daltland on DSKBBV9HB2PROD with NOTICES
10 17 CFR 240.19b–4(f)(6)(iii). office of the Exchange. All comments 1 15 U.S.C. 78s(b)(1).
11 The Exchange represents that the Fund meets received will be posted without change. 2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
such generic listing standards. Persons submitting comments are
12 For purposes only of waiving the 30-day 4 17 CFR 240.19b–4(f)(4)(ii).
cautioned that we do not redact or edit
operative delay, the Commission also has 5 Capitalized terms used herein but not otherwise
considered the proposed rule’s impact on
personal identifying information from defined have the meaning set forth in the ICE Clear
efficiency, competition, and capital formation. See comment submissions. You should Europe rulebook, which is available at https://
15 U.S.C. 78c(f). submit only information that you wish www.theice.com/clear-europe/regulation#rulebook.
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![Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices 14905
or other market participants, or number should be included on the company under the Small Business
otherwise affect the appropriateness of subject line if email is used. To help the Investment Company License No. 02/
the exchange contributions in light of Commission process and review your 02–0672 issued to Ares Venture
the considerations set out above. In ICE comments more efficiently, please use Finance, L.P., said license is hereby
Clear Europe’s view, the amendments only one method. The Commission will declared null and void.
would also not affect access to clearing post all comments on the Commission’s
United States Small Business
or the market for cleared services internet website (http://www.sec.gov/
Administration.
generally. As a result, ICE Clear Europe rules/sro.shtml). Copies of the
submission, all subsequent Dated: April 2, 2018.
believes that any impact on competition
is appropriate in furtherance of the amendments, all written statements A. Joseph Shepard,
purposes of the Act. with respect to the proposed rule Associate Administrator for Investment and
change, security-based swap submission Innovation.
(C) Clearing Agency’s Statement on or advance notice that are filed with the [FR Doc. 2018–07013 Filed 4–5–18; 8:45 am]
Comments on the Proposed Rule Commission, and all written BILLING CODE 8025–01–P
Change Received From Members, communications relating to the
Participants or Others proposed rule change, security-based
Written comments relating to the swap submission or advance notice SMALL BUSINESS ADMINISTRATION
proposed amendments have not been between the Commission and any
solicited or received by ICE Clear person, other than those that may be Surrender of License of Small
Europe. ICE Clear Europe will notify the withheld from the public in accordance Business Investment Company
Commission of any comments received with the provisions of 5 U.S.C. 552, will
with respect to the proposed rule be available for website viewing and Pursuant to the authority granted to
change. printing in the Commission’s Public the United States Small Business
Reference Room, 100 F Street NE, Administration under the Small
III. Date of Effectiveness of the Washington, DC 20549, on official Business Investment Act of 1958, as
Proposed Rule Change, Security-Based business days between the hours of amended, under Section 309 of the Act
Swap Submission or Advance Notice 10:00 a.m. and 3:00 p.m. Copies of such and Section 107.1900 of the Small
and Timing for Commission Action filings will also be available for Business Administration Rules and
The foregoing rule change has become inspection and copying at the principal Regulations (13 CFR 107.1900) to
effective pursuant to Section 19(b)(3)(A) office of ICE Clear Europe and on ICE function as a small business investment
of the Act 14 and paragraph (f) of Rule Clear Europe’s website at https:// company under the Small Business
19b–4 15 thereunder. At any time within www.theice.com/notices/Notices.shtml? Investment Company License No. 02/
60 days of the filing of the proposed rule regulatoryFilings. 02–0598 issued to Falcon Private
change, the Commission summarily may All comments received will be posted Equity, L.P., said license is hereby
temporarily suspend such rule change if without change. Persons submitting declared null and void.
it appears to the Commission that such comments are cautioned that we do not
redact or edit personal identifying United States Small Business
action is necessary or appropriate in the
information from comment submissions. Administration.
public interest, for the protection of
investors, or otherwise in furtherance of You should submit only information Dated: April 2, 2018.
the purposes of the Act. that you wish to make available A. Joseph Shepard,
publicly. All submissions should refer Associate Administrator for Investment and
IV. Solicitation of Comments to File Number SR–ICEEU–2018–005 Innovation.
Interested persons are invited to and should be submitted on or before [FR Doc. 2018–07015 Filed 4–5–18; 8:45 am]
submit written data, views, and April 27, 2018.
BILLING CODE 8025–01–P
arguments concerning the foregoing, For the Commission, by the Division of
including whether the proposed rule Trading and Markets, pursuant to delegated
change, security-based swap submission authority.16 SMALL BUSINESS ADMINISTRATION
or advance notice is consistent with the Robert W. Errett,
Act. Comments may be submitted by Deputy Secretary. Surrender of License of Small
any of the following methods: [FR Doc. 2018–07011 Filed 4–5–18; 8:45 am] Business Investment Company
Electronic Comments BILLING CODE 8011–01–P
Pursuant to the authority granted to
• Use the Commission’s internet the United States Small Business
comment form (http://www.sec.gov/ Administration under the Small
rules/sro.shtml) or SMALL BUSINESS ADMINISTRATION
Business Investment Act of 1958, as
• Send an email to rule-comments@ Surrender of License of Small amended, under Section 309 of the Act
sec.gov. Please include File Number SR– Business Investment Company and Section 107.1900 of the Small
ICEEU–2018–005 on the subject line. Business Administration Rules and
Pursuant to the authority granted to Regulations (13 CFR 107.1900) to
Paper Comments the United States Small Business function as a small business investment
• Send paper comments in triplicate Administration under the Small company under the Small Business
to Secretary, Securities and Exchange Business Investment Act of 1958, as Investment Company License No. 01/
daltland on DSKBBV9HB2PROD with NOTICES
Commission, 100 F Street NE, amended, under Section 309 of the Act 01–0413 issued to BCA Mezzanine
Washington, DC 20549–1090. and Section 107.1900 of the Small Fund, L.P., said license is hereby
All submissions should refer to File Business Administration Rules and declared null and void.
Number SR–ICEEU–2018–005. This file Regulations (13 CFR 107.1900) to
function as a small business investment United States Small Business
14 15 U.S.C. 78s(b)(3)(A). Administration.
15 17 CFR 240.19b–4. 16 17 CFR 200.30–3(a)(12). Dated: April 2, 2018.
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Document Created: 2018-11-01 09:15:33
Document Modified: 2018-11-01 09:15:33
| 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 | 83 FR 14903 |
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