83 FR 54156 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the Clearing Rules and the CDS Procedures

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 208 (October 26, 2018)

Page Range		54156-54157
FR Document		2018-23389

Federal Register, Volume 83 Issue 208 (Friday, October 26, 2018)

[Federal Register Volume 83, Number 208 (Friday, October 26, 2018)]
[Notices]
[Pages 54156-54157]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-23389]

[[Page 54156]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84464; File No. SR-ICEEU-2018-017]

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

October 22, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, as amended (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on October 15, 2018, 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 prepared primarily by ICE Clear
Europe. Ice Clear Europe filed the proposed rule change pursuant to
Section 19(b)(3)(A) \3\ of the Act and subparagraph (f)(4) \4\ of Rule
19b-4 thereunder. 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).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

ICE Clear Europe Limited proposes to modify certain provisions of
its CDS Procedures (the ``CDS Procedures'') and its Clearing Rules (the
``Rules'') \5\ to account for a change in the DC Secretary for the
Credit Derivatives Determinations Committees.
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\5\ Capitalized terms used but not defined herein have the
meanings specified in the Rules and CDS Procedures.
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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

(a) Purpose
ICE Clear Europe proposes to modify certain provisions of its CDS
Procedures and its Rules to account for an expected change in the DC
Secretary for the Credit Derivatives Determinations Committees. The DC
Secretary performs certain administrative functions in respect of the
Credit Derivatives Determinations Committees that make certain
determinations relevant to cleared CDS Contracts under the Rules and
CDS Procedures. The International Swaps and Derivatives Association
(``ISDA''), which currently serves as the DC Secretary, has announced
that it intends to cease performing that role and that it has appointed
a new DC Secretary. Once the transition is complete, certain references
in the Rules and CDS Procedures to ISDA will no longer be accurate.
The amendments will add a new term in the CDS Procedures for ``DC
Secretary,'' which will mean ISDA or such other secretary of the Credit
Derivatives Determinations Committees as may be appointed from time to
time under the Credit Derivatives Determinations Committees Rules to
carry out the functions required thereunder. Certain references to
actions by ISDA will be modified to refer to actions by either ISDA or
the DC Secretary. Specifically, the definition of ``RMP Deadline
Time'', which is a deadline for certain obligations upon a Relevant
Restructuring Event, is being modified such that ``the date of
publication by ISDA of the Final List'' will become ``the date of
publication by ISDA or DC Secretary of the Final List''. Section 6.5(d)
relating to Deliverable Obligations disputes will be amended such that
relevant time periods will refer to the date on which ISDA or DC
Secretary publicly announces the resolution of the Credit Derivatives
Determinations Committee.
Further pursuant to the proposed amendments, the definition of
``Determining Body'' in the Rules is being amended to clarify that
neither the Credit Derivatives Determination Committee nor a secretary
of the Credit Derivatives Determination Committee (or any such other
body or Person) is a Representative or committee of the Clearing House.
(b) 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. Section 17A(b)(3)(F) of the
Act \7\ in particular requires, among other things, that the rules of
the 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, to
assure 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, in general, protect investors and the
public interest. The proposed amendments are designed to address
industry changes resulting in the appointment of a new DC Secretary for
the Credit Derivatives Determinations Committees. Amending the CDS
Procedures and Rules to be consistent with these industry changes
ensures that they will continue to be effective for announcements or
other actions by the DC Secretary. The amendments do not affect the
substantive terms of cleared CDS Contracts. As a result, in ICE Clear
Europe's view, the amendments are consistent with the prompt and
accurate clearance and settlement of transactions and the protection of
investors and the public interest (and will not affect the safeguarding
of securities or funds in the custody or control of the clearing agency
or for which it is responsible).
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\6\ 15 U.S.C. 78q-1.
\7\ 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 rule changes would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purpose of the Act. The proposed
changes to the CDS Procedures and the Rules are intended to accommodate
an industry-wide change in the administration of the Credit Derivatives
Determination Committees, and will not change the substantive terms of
cleared CDS Contracts. The change will apply uniformly across all CDS
Clearing Members and market participants. ICE Clear Europe does not
believe the amendments will adversely affect competition among CDS
Clearing Members, the cost of clearing, or the ability of market
participants to clear CDS contracts generally. Therefore, ICE Clear
Europe does not believe the proposed rule changes impose any burden on
competition that is inappropriate in furtherance of the purposes of the
Act.

[[Page 54157]]

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 and Timing for
Commission Action

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act and paragraph (f) of Rule 19b-4 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.

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 rule-comments@sec.gov. Please include
File Number SR-ICEEU-2018-017 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-2018-017. 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 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 website viewing and printing in
the Commission's Public Reference Section, 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-2018-017 and should be submitted on or before November 16, 2018.
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\8\ 17 CFR 200.30-3(a)(12).

For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\8\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23389 Filed 10-25-18; 8:45 am]
BILLING CODE 8011-01-P

54156 Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Notices

SECURITIES AND EXCHANGE (A) Clearing Agency’s Statement of the the Act 6 and the regulations thereunder
COMMISSION Purpose of, and Statutory Basis for, the applicable to it. Section 17A(b)(3)(F) of
Proposed Rule Change the Act 7 in particular requires, among
[Release No. 34–84464; File No. SR–ICEEU– other things, that the rules of the
(a) Purpose
2018–017] clearing agency be designed to promote
ICE Clear Europe proposes to modify the prompt and accurate clearance and
Self-Regulatory Organizations; ICE certain provisions of its CDS Procedures settlement of securities transactions
Clear Europe Limited; Notice of Filing and its Rules to account for an expected and, to the extent applicable, derivative
and Immediate Effectiveness of a change in the DC Secretary for the agreements, contracts and transactions,
Proposed Rule Change Relating to Credit Derivatives Determinations to assure the safeguarding of securities
Amendments to the Clearing Rules and Committees. The DC Secretary performs and funds in the custody or control of
the CDS Procedures certain administrative functions in the clearing agency or for which it is
respect of the Credit Derivatives responsible and the protection of
October 22, 2018. Determinations Committees that make investors, and, in general, protect
Pursuant to Section 19(b)(1) of the certain determinations relevant to investors and the public interest. The
Securities Exchange Act of 1934, as cleared CDS Contracts under the Rules proposed amendments are designed to
amended (‘‘Act’’),1 and Rule 19b–4 and CDS Procedures. The International address industry changes resulting in
thereunder,2 notice is hereby given that Swaps and Derivatives Association the appointment of a new DC Secretary
on October 15, 2018, ICE Clear Europe (‘‘ISDA’’), which currently serves as the for the Credit Derivatives
Limited (‘‘ICE Clear Europe’’) filed with DC Secretary, has announced that it Determinations Committees. Amending
the Securities and Exchange intends to cease performing that role the CDS Procedures and Rules to be
Commission (‘‘Commission’’) the and that it has appointed a new DC consistent with these industry changes
proposed rule changes described in Secretary. Once the transition is ensures that they will continue to be
Items I, II and III below, which Items complete, certain references in the Rules effective for announcements or other
have been prepared primarily by ICE and CDS Procedures to ISDA will no actions by the DC Secretary. The
Clear Europe. Ice Clear Europe filed the longer be accurate. amendments do not affect the
proposed rule change pursuant to The amendments will add a new term substantive terms of cleared CDS
Section 19(b)(3)(A) 3 of the Act and in the CDS Procedures for ‘‘DC Contracts. As a result, in ICE Clear
subparagraph (f)(4) 4 of Rule 19b–4 Secretary,’’ which will mean ISDA or Europe’s view, the amendments are
thereunder. The Commission is such other secretary of the Credit consistent with the prompt and accurate
publishing this notice to solicit Derivatives Determinations Committees clearance and settlement of transactions
comments on the proposed rule change as may be appointed from time to time and the protection of investors and the
from interested persons. under the Credit Derivatives public interest (and will not affect the
Determinations Committees Rules to safeguarding of securities or funds in
I. Clearing Agency’s Statement of the carry out the functions required the custody or control of the clearing
Terms of Substance of the Proposed thereunder. Certain references to actions agency or for which it is responsible).
Rule Change by ISDA will be modified to refer to
(B) Clearing Agency’s Statement on
actions by either ISDA or the DC
ICE Clear Europe Limited proposes to Burden on Competition
Secretary. Specifically, the definition of
modify certain provisions of its CDS ‘‘RMP Deadline Time’’, which is a
Procedures (the ‘‘CDS Procedures’’) and ICE Clear Europe does not believe the
deadline for certain obligations upon a proposed rule changes would have any
its Clearing Rules (the ‘‘Rules’’) 5 to Relevant Restructuring Event, is being
account for a change in the DC Secretary impact, or impose any burden, on
modified such that ‘‘the date of competition not necessary or
for the Credit Derivatives publication by ISDA of the Final List’’
Determinations Committees. appropriate in furtherance of the
will become ‘‘the date of publication by purpose of the Act. The proposed
II. Clearing Agency’s Statement of the ISDA or DC Secretary of the Final List’’. changes to the CDS Procedures and the
Purpose of, and Statutory Basis for, the Section 6.5(d) relating to Deliverable Rules are intended to accommodate an
Proposed Rule Change Obligations disputes will be amended industry-wide change in the
such that relevant time periods will administration of the Credit Derivatives
In its filing with the Commission, ICE refer to the date on which ISDA or DC Determination Committees, and will not
Clear Europe included statements Secretary publicly announces the change the substantive terms of cleared
concerning the purpose of and basis for resolution of the Credit Derivatives CDS Contracts. The change will apply
the proposed rule change and discussed Determinations Committee. uniformly across all CDS Clearing
any comments it received on the Further pursuant to the proposed Members and market participants. ICE
proposed rule change. The text of these amendments, the definition of Clear Europe does not believe the
statements may be examined at the ‘‘Determining Body’’ in the Rules is amendments will adversely affect
places specified in Item IV below. ICE being amended to clarify that neither competition among CDS Clearing
Clear Europe has prepared summaries, the Credit Derivatives Determination Members, the cost of clearing, or the
set forth in sections (A), (B), and (C) Committee nor a secretary of the Credit ability of market participants to clear
below, of the most significant aspects of Derivatives Determination Committee CDS contracts generally. Therefore, ICE
such statements. (or any such other body or Person) is a Clear Europe does not believe the
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Representative or committee of the proposed rule changes impose any
1 15 U.S.C. 78s(b)(1). Clearing House. burden on competition that is
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A). (b) Statutory Basis inappropriate in furtherance of the
4 17 CFR 240.19b–4(f)(4).
purposes of the Act.
5 Capitalized terms used but not defined herein
ICE Clear Europe believes that the
have the meanings specified in the Rules and CDS
changes described herein are consistent 6 15 U.S.C. 78q–1.
Procedures. with the requirements of Section 17A of 7 15 U.S.C. 78q–1(b)(3)(F).

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Federal Register / Vol. 83, No. 208 / Friday, October 26, 2018 / Notices 54157

(C) Clearing Agency’s Statement on those that may be withheld from the I. Self-Regulatory Organization’s
Comments on the Proposed Rule public in accordance with the Statement of the Terms of Substance of
Change Received From Members, provisions of 5 U.S.C. 552, will be the Proposed Rule Change
Participants or Others available for website viewing and The Exchange proposes to amend
Written comments relating to the printing in the Commission’s Public Rule 303 (Approval to Operate Multiple
proposed amendments have not been Reference Section, 100 F Street NE, Memberships).
solicited or received by ICE Clear Washington, DC 20549, on official The text of the proposed rule change
Europe. ICE Clear Europe will notify the business days between the hours of is available on the Exchange’s website at
Commission of any comments received 10:00 a.m. and 3:00 p.m. Copies of such http://ise.cchwallstreet.com/, at the
with respect to the proposed rule filings will also be available for principal office of the Exchange, and at
change. inspection and copying at the principal the Commission’s Public Reference
office of ICE Clear Europe and on ICE Room.
III. Date of Effectiveness of the Clear Europe’s website at https://
Proposed Rule Change and Timing for www.theice.com/notices/ II. Self-Regulatory Organization’s
Commission Action Notices.shtml?regulatoryFilings. All Statement of the Purpose of, and
The foregoing rule change has become comments received will be posted Statutory Basis for, the Proposed Rule
effective pursuant to Section 19(b)(3)(A) without change. Persons submitting Change
of the Act and paragraph (f) of Rule comments are cautioned that we do not In its filing with the Commission, the
19b–4 thereunder. At any time within redact or edit personal identifying Exchange included statements
60 days of the filing of the proposed rule information from comment submissions. concerning the purpose of and basis for
change, the Commission summarily may You should submit only information the proposed rule change and discussed
temporarily suspend such rule change if that you wish to make available any comments it received on the
it appears to the Commission that such publicly. All submissions should refer proposed rule change. The text of these
action is necessary or appropriate in the to File Number SR–ICEEU–2018–017 statements may be examined at the
public interest, for the protection of and should be submitted on or before places specified in Item IV below. The
investors, or otherwise in furtherance of November 16, 2018. Exchange has prepared summaries, set
the purposes of the Act. For the Commission, by the Division of forth in sections A, B, and C below, of
Trading and Markets, pursuant to delegated the most significant aspects of such
IV. Solicitation of Comments
authority.8 statements.
Interested persons are invited to
submit written data, views, and
Eduardo A. Aleman, A. Self-Regulatory Organization’s
arguments concerning the foregoing, Assistant Secretary. Statement of the Purpose of, and
including whether the proposed rule [FR Doc. 2018–23389 Filed 10–25–18; 8:45 am] Statutory Basis for, the Proposed Rule
change is consistent with the Act. BILLING CODE 8011–01–P
Change
Comments may be submitted by any of 1. Purpose
the following methods:
SECURITIES AND EXCHANGE The purpose of the proposed rule
Electronic Comments COMMISSION change is to amend Rule 303 to permit
• Use the Commission’s internet ISE, instead of ISE’s Board of Directors
comment form (http://www.sec.gov/ (‘‘Board’’), to grant waivers to allow its
[Release No. 34–84465 File No. SR–ISE– members to operate multiple Primary
rules/sro.shtml) or 2018–86]
• Send an email to rule-comments@ Market Maker (‘‘PMM’’) Memberships 3
sec.gov. Please include File Number SR– and Competitive Market Maker
Self-Regulatory Organizations; Nasdaq
ICEEU–2018–017 on the subject line. (‘‘CMM’’) Memberships (together,
ISE, LLC; Notice of Filing and
‘‘Market Maker Memberships’’). As
Paper Comments Immediate Effectiveness of Proposed
explained below, the Exchange is
Rule Change To Amend Rule 303
• Send paper comments in triplicate seeking to streamline the process by
(Approval To Operate Multiple
to Secretary, Securities and Exchange which its members may be approved to
Memberships)
Commission, 100 F Street NE, operate multiple Market Maker
Washington, DC 20549–1090. October 22, 2018. Memberships (hereinafter, ‘‘waiver
process’’). No changes to the Market
All submissions should refer to File Pursuant to Section 19(b)(1) of the Maker Membership structure itself are
Number SR–ICEEU–2018–017. This file Securities Exchange Act of 1934 being contemplated by this rule change
number should be included on the (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 filing.
subject line if email is used. To help the notice is hereby given that on October
Commission process and review your 10, 2018, Nasdaq ISE, LLC (‘‘ISE’’ or the Background
comments more efficiently, please use ‘‘Exchange’’) filed with the Securities PMM Rights and CMM Rights
only one method. The Commission will and Exchange Commission (‘‘SEC’’ or (together, ‘‘Market Maker Rights’’) are
post all comments on the Commission’s ‘‘Commission’’) the proposed rule owned today by Exchange members or
internet website (http://www.sec.gov/ change as described in Items I, II, and non-member owners (collectively,
rules/sro.shtml). Copies of the III below, which Items have been ‘‘holders’’).4 This ownership interest
submission, all subsequent
khammond on DSK30JT082PROD with NOTICES

prepared by the Exchange. The
amendments, all written statements Commission is publishing this notice to 3 The term ‘‘Membership’’ refers to the trading
with respect to the proposed rule solicit comments on the proposed rule privileges associated with PMM Rights, CMM
change that are filed with the change from interested persons. Rights, and EAM Rights. See Rules 100(a)(21) and
Commission, and all written 100(a)(31).
4 ‘‘Non-member owners’’ are individuals and
communications relating to the 8 17 CFR 200.30–3(a)(12). organizations that are not members of the Exchange
proposed rule change between the 1 15 U.S.C. 78s(b)(1). or that are otherwise members, but do not seek to
Commission and any person, other than 2 17 CFR 240.19b–4. Continued

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Document Created: 2018-10-26 02:29:27
Document Modified: 2018-10-26 02:29:27

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 54156