83_FR_554 83 FR 551 - 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 Clearing Procedures for the Exercise of F&O Options Contracts

83 FR 551 - 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 Clearing Procedures for the Exercise of F&O Options Contracts

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 3 (January 4, 2018)

Page Range551-553
FR Document2017-28437

Federal Register, Volume 83 Issue 3 (Thursday, January 4, 2018)
[Federal Register Volume 83, Number 3 (Thursday, January 4, 2018)]
[Notices]
[Pages 551-553]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-28437]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82415; File No. SR-ICEEU-2017-015]


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 Clearing Procedures for 
the Exercise of F&O Options Contracts

December 28, 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 December 20, 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 immediately effective upon filing with the Commission. The 
Commission is publishing this notice to solicit

[[Page 552]]

comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
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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 proposed amendments is to modify 
certain provisions of the ICE Clear Europe Procedures (the 
``Procedures'') \5\ applicable to the exercise of F&O option contracts 
in order to align the Procedures with recent changes to ICE Futures 
Europe (the ``Exchange'' or ``IFEU'') rules for certain energy option 
contracts (the ``Affected Contracts'').\6\
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in the Procedures or the ICE Clear Europe 
Clearing Rules.
    \6\ These contracts include ICE Futures West Texas Intermediate 
Light Sweet Crude Oil Options Contract; ICE Futures West Texas 
Intermediate Light Sweet Crude Oil (CAD Denominated) Options 
Contract; ICE Futures West Texas Intermediate Light Sweet Crude Oil 
Weekly Options Contract; ICE Futures New York Harbour Heating Oil 
Options Contract; and ICE Futures New York Harbour Unleaded Gasoline 
Blendstock (RBOB) Options Contract.
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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
    The purpose of the proposed changes is to amend certain provisions 
of the Procedures applicable to the exercise of F&O option contracts in 
order to align the Procedures with changes to the Exchange rules for 
the Affected Contracts.
    The amendments to the Procedures principally address the following 
matters:
Exercise of At-The-Money Options
    The Procedures are being revised to contemplate automatic exercise 
of call options that are at-the-money on the expiration date, where the 
relevant Exchange contract specifications so provide.
Exercise Instructions on the Expiration Date
    The Procedures are also being revised to contemplate that some 
options cannot be electively (as opposed to automatically) exercised or 
abandoned on the expiration date, where the relevant Exchange contract 
specifications so provide.
    Both sets of changes are intended to be consistent with the revised 
contract specifications for the Affected Contracts, which will feature 
automatic exercise of at-the-money call options and limitations on 
elective exercise on the expiration date.
    The amendments to the Procedures also contain various other updates 
and clarifications to option exercise procedures. The specified changes 
being made to the Procedures are as follows:
    In paragraph 5.1, a definition of `At The Money' has been added.
    Several provisions have been updated to change terminology from 
``manual exercise'' to ``elective exercise'' and clarify that elective 
exercise instructions or other notices may be submitted electronically 
in accordance with relevant technical specifications in effect 
(including via API) as well as manually via the ICE systems. These 
include paragraphs 5.2(b)(i), 5.3(a), 5.3(b), 5.4(a), 5.4(b) and 
5.5(c).
    Paragraph 5.2(c) has been revised to provide that the default 
settings to be applied for purpose of automatic exercise will be 
specified in the contract terms of the Exchange.
    In paragraph 5.3(b), a clarification has been made that that this 
section refers to early exercise only.
    In paragraph 5.5(b), amendments have been made to reflect that 
Exchange contract terms may state that automatic exercise will apply to 
at-the-money options, as discussed above.
    In paragraph 5.5(d), an unnecessary statement concerning 
consequences of failure to contact the clearing house regarding 
exercise difficulties has been removed.
    In paragraph 5.6, text has been added to include the determination 
of whether options are at and out of the money. Examples in paragraph 
5.6(b) have been removed as unnecessary and outdated in light of the 
current changes.
    Paragraph 5.7(a) has been amended to provide that the Exchange 
contract terms for a particular option will determine whether elective 
exercise and/or abandon notifications can be submitted on the relevant 
expiry date, as discussed above.
    In paragraph 5.7(b), minor changes have been made to improve and 
correct wording and report names.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments are 
consistent with the requirements of Section 17A of the Act \7\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22.\8\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
    \8\ 17 CFR 240.17Ad-22.
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act \9\ 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. The proposed 
amendments align exercise procedures for F&O option contracts with 
recent changes to relevant Exchange rules, and make certain other 
updates to such procedures. Specifically, the amendments revise 
exercise procedures to permit automatic exercise of at-the-money call 
options and to provide limitations on elective exercise on expiry day, 
where provided in the Exchange rules. The changes thus facilitate 
prompt and accurate clearance and settlement of F&O option contracts, 
consistent with the relevant exchange rules.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    In addition, Rule 17Ad-22(e)(21) \10\ requires that each covered 
clearing agency establish, implement, maintain and enforce written 
policies and procedures reasonably designed to be efficient and 
effective in meeting the requirements of its participants and the 
markets it serves, among other matters. As discussed above, the 
amendments update exercise procedures with respect to option contracts 
to more effectively meet the requirements of its participants and the 
F&O option markets served by ICE Clear Europe, and align with 
particular Exchange rules.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.17Ad-22(e)(21)(i) and (iv).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed amendments would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The amendments 
modify certain provisions of the

[[Page 553]]

Procedures applicable to the exercise of options to align the 
Procedures with recent changes to the Exchange rules, and to make 
certain other clarifications and updates. ICE Clear Europe does not 
believe the amendments would affect competition among clearing members 
or adversely affect the cost of clearing, the market for clearing 
services generally or access to clearing in these products by clearing 
members or other market participants.

(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 
amendments.

III. Date of Effectiveness of the Proposed Rule Change, Security-Based 
Swap Submission and Advance Notice and Timing for Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \11\ and Rule 19b-4(f)(4)(ii) \12\ 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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 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, 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 rule-comments@sec.gov. Please include 
File Number SR-ICEEU-2017-015 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-2017-015. 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 
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-2017-015 and should be 
submitted on or before January 25, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-28437 Filed 1-3-18; 8:45 am]
 BILLING CODE 8011-01-P



                                                                             Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices                                                             551

                                               has represented that notwithstanding                    finds that such proposed changes will                      including Section 17A(b)(3)(F) of the
                                               the creation of standard omnibus                        help ensure that ICE Clear Europe’s                        Act.
                                               indirect accounts for FCM/BD Clearing                   policies and procedures provide for a
                                                                                                                                                                  V. Conclusion
                                               Members that will be made available as                  well-founded, clear, transparent, and
                                               position-keeping subaccounts of the                     enforceable legal basis for each aspect of                   On the basis of the foregoing, the
                                               existing customer accounts, the Swap                    its activities in all relevant jurisdictions,              Commission finds that the proposal is
                                               Customer Account is not currently                       consistent with Rule 17Ad–22(e)(1).36                      consistent with the requirements of the
                                               available for use by FCM/BD Clearing                                                                               Act and in particular with the
                                               Members for customer positions in CDS                   c. Other Provisions                                        requirements of Section 17A of the
                                               Contracts (including CDS Contracts that                    With respect to the proposed rule                       Act 40 and the rules and regulations
                                               are security-based swaps).32 The                        changes amending ICE Clear Europe’s                        thereunder.
                                               Commission relies on these particular                   Rules to implement new definitions for                       It is therefore ordered pursuant to
                                               representations and explanations by ICE                 ‘‘Emission Allowance’’ and ‘‘Emissions                     Section 19(b)(2) of the Act 41 that the
                                               Clear Europe. Consequently, the                         Registry’’, as well as certain related                     proposed rule change (SR–ICEEU–2017–
                                               Commission believes that the proposed                   conforming and clarifying edits, and the                   014) be, and hereby is, approved on an
                                               rule changes regarding Indirect Clearing                proposed changes to the Clearing                           accelerated basis.42
                                               facilitate ICE Clear Europe’s ability to                Procedures to rename ICE Clear                               For the Commission, by the Division of
                                               comply with regulatory requirements in                  Europe’s ‘‘Market Maker Programs’’ as                      Trading and Markets, pursuant to delegated
                                               the jurisdictions in which it operates,                 ‘‘Liquidity Provider Programs’’ and to                     authority.43
                                               and help ensure that ICE Clear Europe’s                 rename the relevant position keeping                       Robert W. Errett,
                                               policies and procedures provide for a                   accounts accordingly, the Commission                       Deputy Secretary.
                                               well-founded, clear, transparent, and                   believes that the proposed rule changes                    [FR Doc. 2017–28493 Filed 1–3–18; 8:45 am]
                                               enforceable legal basis for each aspect of              will better enable ICE Clear Europe to                     BILLING CODE 8011–01–P
                                               its activities in all relevant jurisdictions,           maintain consistency with the relevant
                                               consistent with the requirements of Rule                provisions of MiFID II, thereby helping
                                               17Ad–22(e)(1).33                                        to ensure that ICE Clear Europe’s                          SECURITIES AND EXCHANGE
                                               b. Straight-Through Processing                          policies and procedure provide for a                       COMMISSION
                                                                                                       well-founded, clear, transparent, and
                                                  The Commission understands that ICE
                                                                                                       enforceable legal basis for each aspect of                 [Release No. 34–82415; File No. SR–ICEEU–
                                               Clear Europe is required under relevant                                                                            2017–015]
                                                                                                       its activities in all relevant jurisdictions.
                                               provisions of MiFID II to implement
                                                                                                       As a result, the Commission finds that
                                               certain provisions regarding straight-                                                                             Self-Regulatory Organizations; ICE
                                                                                                       such proposed rule changes are
                                               through processing. The Commission                                                                                 Clear Europe Limited; Notice of Filing
                                                                                                       consistent with the requirements of Rule
                                               believes that the proposed rule changes                                                                            and Immediate Effectiveness of a
                                                                                                       17Ad–22(e)(1).37
                                               regarding straight-through processing                                                                              Proposed Rule Change Relating to
                                               will better enable ICE Clear Europe to                     In its filing, ICE Clear Europe
                                                                                                                                                                  Amendments to the ICE Clear Europe
                                               ensure that transactions are submitted,                 requested that the Commission grant
                                                                                                                                                                  Clearing Procedures for the Exercise
                                               accepted, and cleared without undue                     accelerated approval of the proposed
                                                                                                                                                                  of F&O Options Contracts
                                               delay. Therefore, the Commission finds                  rule change pursuant to Section
                                               that the proposed rule changes                          19(b)(2)(C)(iii) of the Exchange Act.38                    December 28, 2017.
                                               regarding straight-through processing                   Under Section 19(b)(2)(C)(iii) of the                         Pursuant to Section 19(b)(1) of the
                                               promote the prompt and accurate                         Act,39 the Commission may grant                            Securities Exchange Act of 1934
                                               clearance and settlement of securities                  accelerated approval of a proposed rule                    (‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               transactions consistent with the                        change if the Commission finds good                        notice is hereby given that on December
                                               requirements of Section 17A(b)(3)(F) of                 cause for doing so. ICE Clear Europe                       20, 2017, ICE Clear Europe Limited
                                               the Act.34 Moreover, the Commission                     believes that accelerated approval is                      (‘‘ICE Clear Europe’’) filed with the
                                               further finds the proposed rule changes                 warranted because the proposed rule                        Securities and Exchange Commission
                                               regarding straight-through processing                   change is required in order to comply                      (‘‘Commission’’) the proposed rule
                                               protect investors and the public interest,              with the MiFID II requirements, which                      changes described in Items I, II, and III
                                               consistent with Section 17A(b)(3)(F) of                 go into effect on January 3, 2018.                         below, which Items have been primarily
                                               the Act 35 because the expeditious                         The Commission finds good cause,                        prepared by ICE Clear Europe. ICE Clear
                                               processing of transactions in cleared                   pursuant to Section 19(b)(2)(C)(iii) of                    Europe filed the proposed rule change
                                               derivatives reduces the possibility of                  the Act, for approving the proposed rule                   pursuant to Section 19(b)(3)(A) of the
                                               those transactions being disrupted by                   change on an accelerated basis, prior to                   Act,3 and Rule 19b–4(f)(4)(ii)
                                               intervening events, such as a                           the 30th day after the date of                             thereunder,4 so that the proposal was
                                               technological breakdown or a reduction                  publication of notice in the Federal                       immediately effective upon filing with
                                               in the financial condition of one of the                Register, because the proposed rule                        the Commission. The Commission is
                                               counterparties. Furthermore, because                    change is required as of January 3, 2018                   publishing this notice to solicit
                                               the Commission believes that the                        in order to facilitate ICE Clear Europe’s
                                               proposed rule changes regarding                         efforts to comply with the                                   40 15  U.S.C. 78q–1.
                                               straight-through process will maintain                  aforementioned MiFID II requirements.                        41 15  U.S.C. 78s(b)(2).
                                               the consistency of ICE Clear Europe’s                   Additionally, the Commission notes that                       42 In approving the proposed rule change, the
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                                                                                                       the proposed changes do not impede                         Commission considered the proposal’s impact on
                                               CDS Procedures with relevant                                                                                       efficiency, competition, and capital formation. 15
                                               provisions of MiFID II, the Commission                  compliance with relevant U.S. law,                         U.S.C. 78c(f).
                                                                                                                                                                     43 17 CFR 200.30–3(a)(12).
                                                 32 See  supra note 16.                                  36 17    CFR 240.17Ad–22(e)(1).                             1 15 U.S.C. 78s(b)(1).
                                                 33 17  CFR 240.17Ad–22(e)(1).                           37 Id.                                                      2 17 CFR 240.19b–4.
                                                 34 15 U.S.C. 78q–1(b)(3)(F).                            38 15    U.S.C. 78s(b)(2)(C)(iii).                          3 15 U.S.C. 78s(b)(3)(A).
                                                 35 Id.                                                  39 Id.                                                      4 17 CFR 240.19b–4(f)(4)(ii).




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                                               552                           Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices

                                               comments on the proposed rule change                    Exchange contract specifications so                      In paragraph 5.7(b), minor changes
                                               from interested persons.                                provide.                                               have been made to improve and correct
                                                                                                                                                              wording and report names.
                                               I. Clearing Agency’s Statement of the                   Exercise Instructions on the Expiration
                                               Terms of Substance of the Proposed                      Date                                                   (b) Statutory Basis
                                               Rule Change, Security-Based Swap                           The Procedures are also being revised                  ICE Clear Europe believes that the
                                               Submission, or Advance Notice                           to contemplate that some options cannot                proposed amendments are consistent
                                                  The principal purpose of the                         be electively (as opposed to                           with the requirements of Section 17A of
                                               proposed amendments is to modify                        automatically) exercised or abandoned                  the Act 7 and the regulations thereunder
                                               certain provisions of the ICE Clear                     on the expiration date, where the                      applicable to it, including the standards
                                               Europe Procedures (the ‘‘Procedures’’) 5                relevant Exchange contract                             under Rule 17Ad–22.8
                                               applicable to the exercise of F&O option                specifications so provide.                                Section 17A(b)(3)(F) of the Act 9
                                               contracts in order to align the                            Both sets of changes are intended to                requires, among other things, that the
                                               Procedures with recent changes to ICE                   be consistent with the revised contract                rules of a clearing agency be designed to
                                               Futures Europe (the ‘‘Exchange’’ or                     specifications for the Affected Contracts,             promote the prompt and accurate
                                               ‘‘IFEU’’) rules for certain energy option               which will feature automatic exercise of               clearance and settlement of securities
                                               contracts (the ‘‘Affected Contracts’’).6                at-the-money call options and                          transactions and, to the extent
                                                                                                       limitations on elective exercise on the                applicable, derivative agreements,
                                               II. Clearing Agency’s Statement of the                                                                         contracts, and transactions, the
                                                                                                       expiration date.
                                               Purpose of, and Statutory Basis for, the                                                                       safeguarding of securities and funds in
                                                                                                          The amendments to the Procedures
                                               Proposed Rule Change, Security-Based                                                                           the custody or control of the clearing
                                                                                                       also contain various other updates and
                                               Swap Submission or Advance Notice                                                                              agency or for which it is responsible,
                                                                                                       clarifications to option exercise
                                                 In its filing with the Commission, ICE                procedures. The specified changes being                and the protection of investors and the
                                               Clear Europe included statements                        made to the Procedures are as follows:                 public interest. The proposed
                                               concerning the purpose of and basis for                    In paragraph 5.1, a definition of ‘At               amendments align exercise procedures
                                               the proposed rule change and discussed                  The Money’ has been added.                             for F&O option contracts with recent
                                               any comments it received on the                            Several provisions have been updated                changes to relevant Exchange rules, and
                                               proposed rule change. The text of these                 to change terminology from ‘‘manual                    make certain other updates to such
                                               statements may be examined at the                       exercise’’ to ‘‘elective exercise’’ and                procedures. Specifically, the
                                               places specified in Item IV below. ICE                  clarify that elective exercise instructions            amendments revise exercise procedures
                                               Clear Europe has prepared summaries,                    or other notices may be submitted                      to permit automatic exercise of at-the-
                                               set forth in sections (A), (B), and (C)                 electronically in accordance with                      money call options and to provide
                                               below, of the most significant aspects of               relevant technical specifications in                   limitations on elective exercise on
                                               such statements.                                        effect (including via API) as well as                  expiry day, where provided in the
                                                                                                       manually via the ICE systems. These                    Exchange rules. The changes thus
                                               (A) Clearing Agency’s Statement of the                                                                         facilitate prompt and accurate clearance
                                               Purpose of, and Statutory Basis for, the                include paragraphs 5.2(b)(i), 5.3(a),
                                                                                                       5.3(b), 5.4(a), 5.4(b) and 5.5(c).                     and settlement of F&O option contracts,
                                               Proposed Rule Change, Security-Based                                                                           consistent with the relevant exchange
                                               Swap Submission or Advance Notice                          Paragraph 5.2(c) has been revised to
                                                                                                       provide that the default settings to be                rules.
                                               (a) Purpose                                             applied for purpose of automatic                          In addition, Rule 17Ad–22(e)(21) 10
                                                                                                       exercise will be specified in the contract             requires that each covered clearing
                                                  The purpose of the proposed changes                                                                         agency establish, implement, maintain
                                               is to amend certain provisions of the                   terms of the Exchange.
                                                                                                          In paragraph 5.3(b), a clarification has            and enforce written policies and
                                               Procedures applicable to the exercise of                                                                       procedures reasonably designed to be
                                               F&O option contracts in order to align                  been made that that this section refers
                                                                                                       to early exercise only.                                efficient and effective in meeting the
                                               the Procedures with changes to the                                                                             requirements of its participants and the
                                               Exchange rules for the Affected                            In paragraph 5.5(b), amendments have
                                                                                                       been made to reflect that Exchange                     markets it serves, among other matters.
                                               Contracts.                                                                                                     As discussed above, the amendments
                                                  The amendments to the Procedures                     contract terms may state that automatic
                                                                                                       exercise will apply to at-the-money                    update exercise procedures with respect
                                               principally address the following                                                                              to option contracts to more effectively
                                               matters:                                                options, as discussed above.
                                                                                                          In paragraph 5.5(d), an unnecessary                 meet the requirements of its participants
                                               Exercise of At-The-Money Options                        statement concerning consequences of                   and the F&O option markets served by
                                                                                                       failure to contact the clearing house                  ICE Clear Europe, and align with
                                                 The Procedures are being revised to                                                                          particular Exchange rules.
                                               contemplate automatic exercise of call                  regarding exercise difficulties has been
                                               options that are at-the-money on the                    removed.                                               (B) Clearing Agency’s Statement on
                                               expiration date, where the relevant                        In paragraph 5.6, text has been added               Burden on Competition
                                                                                                       to include the determination of whether                  ICE Clear Europe does not believe the
                                                 5 Capitalized terms used but not defined herein       options are at and out of the money.                   proposed amendments would have any
                                               have the meanings specified in the Procedures or        Examples in paragraph 5.6(b) have been                 impact, or impose any burden, on
                                               the ICE Clear Europe Clearing Rules.                    removed as unnecessary and outdated                    competition not necessary or
                                                 6 These contracts include ICE Futures West Texas
                                                                                                       in light of the current changes.                       appropriate in furtherance of the
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                                               Intermediate Light Sweet Crude Oil Options
                                               Contract; ICE Futures West Texas Intermediate
                                                                                                          Paragraph 5.7(a) has been amended to                purposes of the Act. The amendments
                                               Light Sweet Crude Oil (CAD Denominated) Options         provide that the Exchange contract                     modify certain provisions of the
                                               Contract; ICE Futures West Texas Intermediate           terms for a particular option will
                                               Light Sweet Crude Oil Weekly Options Contract;          determine whether elective exercise                      7 15
                                               ICE Futures New York Harbour Heating Oil Options                                                                      U.S.C. 78q–1.
                                               Contract; and ICE Futures New York Harbour
                                                                                                       and/or abandon notifications can be                      8 17 CFR 240.17Ad–22.
                                               Unleaded Gasoline Blendstock (RBOB) Options             submitted on the relevant expiry date,                   9 15 U.S.C. 78q–1(b)(3)(F).

                                               Contract.                                               as discussed above.                                      10 17 CFR 240.17Ad–22(e)(21)(i) and (iv).




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                                                                                Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices                                                           553

                                               Procedures applicable to the exercise of                  All submissions should refer to File                    SECURITIES AND EXCHANGE
                                               options to align the Procedures with                      Number SR–ICEEU–2017–015. This file                     COMMISSION
                                               recent changes to the Exchange rules,                     number should be included on the
                                                                                                                                                                 [Release No. 34–82424; File No. SR–
                                               and to make certain other clarifications                  subject line if email is used. To help the              CboeEDGX–2017–008]
                                               and updates. ICE Clear Europe does not                    Commission process and review your
                                               believe the amendments would affect                       comments more efficiently, please use                   Self-Regulatory Organizations; Cboe
                                               competition among clearing members or                     only one method. The Commission will                    EDGX Exchange, Inc.; Notice of Filing
                                               adversely affect the cost of clearing, the                post all comments on the Commission’s                   and Immediate Effectiveness of a
                                               market for clearing services generally or                 internet website (http://www.sec.gov/                   Proposed Rule Change Related to
                                               access to clearing in these products by                   rules/sro.shtml). Copies of the                         Market Data Fees
                                               clearing members or other market                          submission, all subsequent
                                               participants.                                                                                                     December 29, 2017.
                                                                                                         amendments, all written statements                         Pursuant to Section 19(b)(1) of the
                                               (C) Clearing Agency’s Statement on                        with respect to the proposed rule                       Securities Exchange Act of 1934 (the
                                               Comments on the Proposed Rule                             change, security-based swap submission                  ‘‘Act’’),1 and Rule 19b–4 thereunder,2
                                               Change Received From Members,                             or advance notice that are filed with the               notice is hereby given that on December
                                               Participants or Others                                    Commission, and all written                             15, 2017, Cboe EDGX Exchange, Inc.
                                                 Written comments relating to the                        communications relating to the                          (the ‘‘Exchange’’ or ‘‘EDGX’’) filed with
                                               proposed amendments have not been                         proposed rule change, security-based                    the Securities and Exchange
                                               solicited or received by ICE Clear                        swap submission or advance notice                       Commission (‘‘Commission’’) the
                                               Europe. ICE Clear Europe will notify the                  between the Commission and any                          proposed rule change as described in
                                               Commission of any comments received                       person, other than those that may be                    Items I, II and III below, which Items
                                               with respect to the proposed                              withheld from the public in accordance                  have been prepared by the Exchange.
                                               amendments.                                               with the provisions of 5 U.S.C. 552, will               The Exchange has designated the
                                                                                                         be available for website viewing and                    proposed rule change as one
                                               III. Date of Effectiveness of the                         printing in the Commission’s Public                     establishing or changing a member due,
                                               Proposed Rule Change, Security-Based                                                                              fee, or other charge imposed by the
                                                                                                         Reference Section, 100 F Street NE,
                                               Swap Submission and Advance Notice                                                                                Exchange under Section 19(b)(3)(A)(ii)
                                                                                                         Washington, DC 20549, on official
                                               and Timing for Commission Action                                                                                  of the Act 3 and Rule 19b–4(f)(2)
                                                                                                         business days between the hours of
                                                                                                                                                                 thereunder,4 which renders the
                                                  The foregoing rule change has become                   10:00 a.m. and 3:00 p.m. Copies of such                 proposed rule change effective upon
                                               effective pursuant to Section 19(b)(3)(A)                 filings will also be available for                      filing with the Commission. The
                                               of the Act 11 and Rule 19b–4(f)(4)(ii) 12                 inspection and copying at the principal                 Commission is publishing this notice to
                                               thereunder. At any time within 60 days                    office of ICE Clear Europe and on ICE                   solicit comments on the proposed rule
                                               of the filing of the proposed rule change,                Clear Europe’s website at https://                      change from interested persons.
                                               the Commission summarily may                              www.theice.com/notices/
                                               temporarily suspend such rule change if                   Notices.shtml?regulatoryFilings.                        I. Self-Regulatory Organization’s
                                               it appears to the Commission that such                                                                            Statement of the Terms of Substance of
                                               action is necessary or appropriate in the                    All comments received will be posted                 the Proposed Rule Change
                                               public interest, for the protection of                    without change. Persons submitting
                                                                                                                                                                    The Exchange filed a proposal to a
                                               investors, or otherwise in furtherance of                 comments are cautioned that we do not
                                                                                                                                                                 mend [sic] the Market Data section of its
                                               the purposes of the Act.                                  redact or edit personal identifying
                                                                                                                                                                 fee schedule to lower the Internal
                                                                                                         information from comment submissions.                   Distribution 5 fees and to adopt per User
                                               IV. Solicitation of Comments                              You should submit only information                      fees for the Cboe One Summary Feed.
                                                 Interested persons are invited to                       that you wish to make available                            The text of the proposed rule change
                                               submit written data, views, and                           publicly. All submissions should refer                  is available at the Exchange’s website at
                                               arguments concerning the foregoing,                       to File Number SR–ICEEU–2017–015                        www.markets.cboe.com, at the principal
                                               including whether the proposed rule                       and should be submitted on or before                    office of the Exchange, and at the
                                               change, security-based swap submission                    January 25, 2018.                                       Commission’s Public Reference Room.
                                               or advance notice is consistent with the                    For the Commission, by the Division of
                                               Act. Comments may be submitted by                                                                                 II. Self-Regulatory Organization’s
                                                                                                         Trading and Markets, pursuant to delegated              Statement of the Purpose of, and
                                               any of the following methods:                             authority.13                                            Statutory Basis for, the Proposed Rule
                                               Electronic Comments                                       Robert W. Errett,                                       Change
                                                 • Use the Commission’s internet                         Deputy Secretary.                                          In its filing with the Commission, the
                                               comment form (http://www.sec.gov/                         [FR Doc. 2017–28437 Filed 1–3–18; 8:45 am]              Exchange included statements
                                               rules/sro.shtml) or                                       BILLING CODE 8011–01–P
                                                 • Send an email to rule-comments@
                                                                                                                                                                   1 15 U.S.C. 78s(b)(1).
                                                                                                                                                                   2 17 CFR 240.19b–4.
                                               sec.gov. Please include File Number SR–                                                                             3 15 U.S.C. 78s(b)(3)(A)(ii).
                                               ICEEU–2017–015 on the subject line.                                                                                 4 17 CFR 240.19b–4(f)(2).
                                                                                                                                                                   5 A ‘‘Distributor’’ is defined as ‘‘any entity that
                                               Paper Comments
                                                                                                                                                                 receives the Exchange Market Data product directly
ethrower on DSK3G9T082PROD with NOTICES




                                                 • Send paper comments in triplicate                                                                             from the Exchange or indirectly through another
                                                                                                                                                                 entity and then distributes it internally or externally
                                               to Secretary, Securities and Exchange                                                                             to a third party.’’ See the Exchange’s fee schedule
                                               Commission, 100 F Street NE,                                                                                      available at http://markets.cboe.com/us/equities/
                                               Washington, DC 20549–1090.                                                                                        membership/fee_schedule/edgx/. An ‘‘Internal
                                                                                                                                                                 Distributor’’ is defined as ‘‘a Distributor that
                                                                                                                                                                 receives the Exchange Market Data product and
                                                 11 15   U.S.C. 78s(b)(3)(A).                                                                                    then distributes that data to one or more Users
                                                 12 17   CFR 240.19b–4(f)(4)(ii).                          13 17   CFR 200.30–3(a)(12).                          within the Distributor’s own entity.’’ Id.



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Document Created: 2018-01-04 02:02:08
Document Modified: 2018-01-04 02:02:08
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 Citation83 FR 551 

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