83 FR 7090 - Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the ICE Clear Europe Rules for the Transition of Trading in Certain F&O Contracts
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 83, Issue 33 (February 16, 2018)
Federal Register Volume 83, Issue 33 (February 16, 2018)
| Page Range | 7090-7092 | |
| FR Document | 2018-03200 |
[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)] [Notices] [Pages 7090-7092] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-03200] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-82687; File No. SR-ICEEU-2018-003] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the ICE Clear Europe Rules for the Transition of Trading in Certain F&O Contracts February 12, 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 February 7, 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 changes 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. --------------------------------------------------------------------------- \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). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change ICE Clear Europe proposes revising the ICE Clear Europe Rules (the ``Clearing House Rules'') \5\ to add new rules to accommodate the transition of trading in certain F&O Contracts from one Market to another. --------------------------------------------------------------------------- \5\ Capitalized terms used but not defined herein have the meanings specified in the Clearing House Rules. --------------------------------------------------------------------------- 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 Futures Europe has announced that certain F&O Contracts currently listed on that exchange and cleared at ICE Clear Europe will be removed from trading and that equivalent contracts will commence trading on the ICE Futures U.S., Inc. (``ICE Futures US'') exchange.\6\ Clearing of the transitioning contracts will remain at ICE Clear Europe. The purpose of the proposed amendments is to accommodate this transition under the Clearing House Rules. --------------------------------------------------------------------------- \6\ ICE Futures Europe Circular 18/002 (Jan. 10, 2018); ICE Futures Europe Circular 18/009 (Jan. 23, 2018). --------------------------------------------------------------------------- Specifically, ICE Clear Europe is adopting a new Part 23 of the Rules, which will apply to the announced transition as well as any future similar transitions. Part 23 will apply where the Clearing House identifies by Circular one or more F&O Contracts for which [[Page 7091]] trading is to be transitioned from one Market to another (``Transitioning Contracts'') as of a designated time (the ``Transition Time''). Rule 2302 adds related definitions, including the concepts of ``Exiting Market'' (from which the contracts are being moved) and ``Receiving Market'' (to which the contracts are being moved). (In connection with the announced transition between ICE Futures Europe and ICE Futures US, ICE Futures Europe would be the Exiting Market and ICE Futures US would be the Receiving Market.) New Rule 2303 provides that as of the relevant Transition Time, trading of the Transitioning Contract will transfer from the Exiting Market to the Receiving Market. New Rule 2304(a) provides that the Transitioning Contracts will be automatically redesignated such that they become Contracts under the Market Rules of the Receiving Market and are no longer Contracts under the Market Rules of the Exiting Market. Under the Rule, the redesignated Contracts remain in full force and effect as between the relevant Clearing Member and the Clearing House. New Rule 2304(b) further addresses the situation where the Receiving Market is a U.S. designated contract market and the Exiting Market is not. In that case, in order to comply with relevant segregation requirements under Section 4d of the U.S. Commodity Exchange Act, Transitioning Contracts registered in the Non-DCM/Swap Customer Account of an FCM/BD Clearing Member will be automatically transferred to the DCM Customer Account of such FCM/BD Clearing Member; and FCM/BD Customer Collateral in respect of such open Transitioning Contracts will be held in the Clearing House DCM Segregated Account as FCM/BD U.S. Futures Customer Collateral under the Rules. In connection with the announced transition between ICE Futures Europe and ICE Futures US, ICE Clear Europe will issue a Circular indicating the specific contracts that are to be Transitioning Contracts and the Transition Time for purposes of Part 23 of the Rules. ICE Clear Europe has attached as Exhibit 5 hereto the list of Transitioning Contracts. The Transition Time is expected to be on or about February 18, 2018. (b) Statutory Basis ICE Clear Europe believes that the changes described herein are consistent with the requirements of Section 17A of the Act \7\ and the regulations thereunder applicable to it, and in particular are consistent with the prompt and accurate clearance of and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts and transactions, the safeguarding of securities and funds in the custody or control of ICE Clear Europe or for which it is responsible and the protection of investors and the public interest, within the meaning of Section 17A(b)(3)(F) of the Act.\8\ ICE Clear Europe is implementing the amendments in order to facilitate the transition of the Transitioning Contracts from one Market to another in a manner designed to minimize any impact on Clearing Members and their customers. The Transitioning Contracts will continue to be eligible for clearing at ICE Clear Europe, and the terms and conditions of such contracts are not changing in any material respect. The Transitioning Contracts will be cleared by ICE Clear Europe in substantially the same manner as before the transition (other than with respect to the class of customer account, as discussed herein). With respect to the safeguarding of securities and funds in the custody or control of ICE Clear Europe, the Transitioning Contracts will become traded on ICE Futures US, a designated contract market under the Commodity Exchange Act, and as such will become subject to the segregation requirements under that act. Accordingly, the amendments provide that customer positions in Transitioning Contracts will, following the transition, be held in the DCM Customer Account and the associated margin will be held in the Clearing House DCM Segregated Account as FCM/BD U.S. Futures Customer Collateral. For the foregoing reasons, ICE Clear Europe believes that the amendments are consistent with the requirements of Section 17A(b)(3)(F) and the regulations of the Commission thereunder. --------------------------------------------------------------------------- \7\ 15 U.S.C. 78q-1. \8\ 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 changes to the rules would have any impact, or impose any burden, on competition not necessary or appropriate in furtherance of the purpose of the Act. The amendments solely are designed to facilitate the transition of the Transitioning Contracts from one Market to another, as requested by such markets. As a result, ICE Clear Europe does not believe the amendments would adversely affect Clearing Members, materially affect the cost of clearing, adversely affect access to clearing in F&O Contracts for Clearing Members or their customers, or otherwise adversely affect competition in clearing services. Accordingly, ICE Clear Europe does not believe that the amendments would impose any impact or burden on competition that is not appropriate in furtherance of the purpose of the Act. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the proposed changes to the rules have not been solicited or received. ICE Clear Europe will notify the Commission of any written comments received by ICE Clear Europe. III. Date of Effectiveness of the Proposed Rule Change The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act \9\ and paragraph (f) of Rule 19b-4 \10\ 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. --------------------------------------------------------------------------- \9\ 15 U.S.C. 78s(b)(3)(A). \10\ 17 CFR 240.19b-4(f). --------------------------------------------------------------------------- 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 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-2018-003 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-2018-003. 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 [[Page 7092]] 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 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/clear-europe/regulation#rule-filings. 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-2018-003 and should be submitted on or before March 9, 2018. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\11\ --------------------------------------------------------------------------- \11\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Eduardo Aleman, Assistant Secretary. [FR Doc. 2018-03200 Filed 2-15-18; 8:45 am] BILLING CODE 8011-01-P
![7090 Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
each case to enable an arbitrator to hear internet website (http://www.sec.gov/ primarily by ICE Clear Europe. ICE Clear
several cases in a hearing day and to rules/sro.shtml). Copies of the Europe filed the proposed rule changes
limit the time commitment of the submission, all subsequent pursuant to Section 19(b)(3)(A) of the
parties. FINRA was concerned that a amendments, all written statements Act,3 and Rule 19b–4(f)(4)(ii)
period shorter than the proposed two with respect to the proposed rule thereunder,4 so that the proposal was
hearing session time limit would restrict change that are filed with the immediately effective upon filing with
the parties’ presentations and their Commission, and all written the Commission. The Commission is
ability to answer questions posed by the communications relating to the publishing this notice to solicit
arbitrator. The proposal reflects the proposed rule change between the comments on the proposed rule change
changes that FINRA believes were the Commission and any person, other than from interested persons.
most appropriate to propose for the those that may be withheld from the
I. Clearing Agency’s Statement of the
reasons discussed herein. public in accordance with the
Terms of Substance of the Proposed
provisions of 5 U.S.C. 552, will be
C. Self-Regulatory Organization’s Rule Change
available for website viewing and
Statement on Comments on the printing in the Commission’s Public ICE Clear Europe proposes revising
Proposed Rule Change Received From Reference Room, 100 F Street NE, the ICE Clear Europe Rules (the
Members, Participants, or Others Washington, DC 20549, on official ‘‘Clearing House Rules’’) 5 to add new
Written comments were neither business days between the hours of 10 rules to accommodate the transition of
solicited nor received. a.m. and 3 p.m. Copies of such filing trading in certain F&O Contracts from
also will be available for inspection and one Market to another.
III. Date of Effectiveness of the
copying at the principal office of II. Clearing Agency’s Statement of the
Proposed Rule Change and Timing for FINRA. All comments received will be
Commission Action Purpose of, and Statutory Basis for, the
posted without change. Persons Proposed Rule Change
Within 45 days of the date of submitting comments are cautioned that
publication of this notice in the Federal we do not redact or edit personal In its filing with the Commission, ICE
Register or within such longer period (i) identifying information from comment Clear Europe included statements
as the Commission may designate up to submissions. You should submit only concerning the purpose of and basis for
90 days of such date if it finds such information that you wish to make the proposed rule change and discussed
longer period to be appropriate and available publicly. All submissions any comments it received on the
publishes its reasons for so finding or should refer to File Number SR–FINRA– proposed rule change. The text of these
(ii) as to which the self-regulatory 2018–003 and should be submitted on statements may be examined at the
organization consents, the Commission or before March 9, 2018. places specified in Item IV below. ICE
will: Clear Europe has prepared summaries,
For the Commission, by the Division of set forth in sections (A), (B), and (C)
(A) By order approve or disapprove Trading and Markets, pursuant to delegated
such proposed rule change, or authority.17
below, of the most significant aspects of
(B) institute proceedings to determine such statements.
Eduardo A. Aleman,
whether the proposed rule change Assistant Secretary. (A) Clearing Agency’s Statement of the
should be disapproved. [FR Doc. 2018–03202 Filed 2–15–18; 8:45 am] Purpose of, and Statutory Basis for, the
IV. Solicitation of Comments BILLING CODE 8011–01–P
Proposed Rule Change
Interested persons are invited to (a) Purpose
submit written data, views and ICE Futures Europe has announced
SECURITIES AND EXCHANGE
arguments concerning the foregoing, that certain F&O Contracts currently
COMMISSION
including whether the proposed rule listed on that exchange and cleared at
change is consistent with the Act. [Release No. 34–82687; File No. SR–ICEEU– ICE Clear Europe will be removed from
Comments may be submitted by any of 2018–003] trading and that equivalent contracts
the following methods: will commence trading on the ICE
Self-Regulatory Organizations; ICE
Electronic Comments Futures U.S., Inc. (‘‘ICE Futures US’’)
Clear Europe Limited; Notice of Filing
exchange.6 Clearing of the transitioning
• Use the Commission’s internet and Immediate Effectiveness of a
contracts will remain at ICE Clear
comment form (http://www.sec.gov/ Proposed Rule Change Relating to the
Europe. The purpose of the proposed
rules/sro.shtml); or ICE Clear Europe Rules for the
amendments is to accommodate this
• Send an email to rule-comments@ Transition of Trading in Certain F&O
transition under the Clearing House
sec.gov. Please include File Number SR– Contracts
Rules.
FINRA–2018–003 on the subject line. February 12, 2018. Specifically, ICE Clear Europe is
Paper Comments Pursuant to Section 19(b)(1) of the adopting a new Part 23 of the Rules,
Securities Exchange Act of 1934 which will apply to the announced
• Send paper comments in triplicate (‘‘Act’’),1 and Rule 19b–4 thereunder,2 transition as well as any future similar
to Secretary, Securities and Exchange notice is hereby given that on February transitions. Part 23 will apply where the
Commission, 100 F Street NE, 7, 2018, ICE Clear Europe Limited (‘‘ICE Clearing House identifies by Circular
Washington, DC 20549–1090. Clear Europe’’) filed with the Securities one or more F&O Contracts for which
All submissions should refer to File and Exchange Commission
daltland on DSKBBV9HB2PROD with NOTICES
Number SR–FINRA–2018–003. This file (‘‘Commission’’) the proposed rule 3 15 U.S.C. 78s(b)(3)(A).
number should be included on the changes described in Items I, II, and III 4 17 CFR 240.19b–4(f)(4)(ii).
subject line if email is used. To help the below, which Items have been prepared
5 Capitalized terms used but not defined herein
Commission process and review your have the meanings specified in the Clearing House
Rules.
comments more efficiently, please use 17 17 CFR 200.30–3(a)(12). 6 ICE Futures Europe Circular 18/002 (Jan. 10,
only one method. The Commission will 1 15 U.S.C. 78s(b)(1). 2018); ICE Futures Europe Circular 18/009 (Jan. 23,
post all comments on the Commission’s 2 17 CFR 240.19b–4. 2018).
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![7092 Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
internet website (http://www.sec.gov/ proposed rule change as described in Home.aspx), at the Exchange’s Office of
rules/sro.shtml). Copies of the Items I, II, and III below, which Items the Secretary, and at the Commission’s
submission, all subsequent have been prepared by the Exchange. Public Reference Room.
amendments, all written statements The Commission is publishing this
II. Self-Regulatory Organization’s
with respect to the proposed rule notice to solicit comments on the
Statement of the Purpose of, and
change, that are filed with the proposed rule change from interested Statutory Basis for, the Proposed Rule
Commission, and all written persons. Change
communications relating to the
proposed rule change between the I. Self-Regulatory Organization’s In its filing with the Commission, the
Commission and any person, other than Statement of the Terms of Substance of Exchange included statements
those that may be withheld from the the Proposed Rule Change concerning the purpose of and basis for
public in accordance with the The Exchange proposes to amend its the proposed rule change and discussed
provisions of 5 U.S.C. 552, will be rules related to the Complex Order Book any comments it received on the
available for website viewing and (‘‘COB’’). proposed rule change. The text of these
printing in the Commission’s Public (additions are italicized; deletions are statements may be examined at the
Reference Room, 100 F Street NE, [bracketed]) places specified in Item IV below. The
Washington, DC 20549, on official * * * * * Exchange has prepared summaries, set
business days between the hours of forth in sections A, B, and C below, of
10:00 a.m. and 3:00 p.m. Copies of such Cboe Exchange, Inc. Rules the most significant aspects of such
filings will also be available for * * * * * statements.
inspection and copying at the principal A. Self-Regulatory Organization’s
office of ICE Clear Europe and on ICE Rule 6.53C. Complex Orders on the
Hybrid System Statement of the Purpose of, and
Clear Europe’s website at https:// Statutory Basis for, the Proposed Rule
www.theice.com/clear-europe/ (a)–(b) No change. Change
regulation#rule-filings. (c) Complex Order Book:
All comments received will be posted 1. Purpose
(i) Routing of Complex Orders: The
without change. Persons submitting Exchange will determine which classes and The Exchange proposes to amend its
comments are cautioned that we do not which complex order origin types (i.e., non- rules related to the COB. Currently, Rule
redact or edit personal identifying broker-dealer public customer, broker-dealers 6.53C(c)(i) states the Exchange may
information from comment submissions. that are not Market-Makers or specialists on determine which classes and which
You should submit only information an options exchange, and/or Market-Makers complex order origin types (i.e., non-
that you wish to make available or specialists on an options exchange) are
broker-dealer public customer, broker-
publicly. All submissions should refer eligible for entry into the COB and whether
such complex orders can route directly to the
dealers that are not market-makers or
to File Number SR–ICEEU–2018–003 specialists on an options exchange, and/
COB and/or from PAR to the COB. In a class
and should be submitted on or before or Market-Makers or specialists on an
in which the Exchange determines complex
March 9, 2018. orders of Market-Makers and specialists on options exchange) are eligible for entry
For the Commission, by the Division of an options exchange are not eligible for entry into the COB and whether such complex
Trading and Markets, pursuant to delegated into the COB, the Exchange may determine orders can route directly to the COB
authority.11 that Market-Makers and specialists may enter and/or from PAR to the COB.3 To the
Eduardo Aleman, complex orders into the COB if: extent an origin type is not eligible for
Assistant Secretary. (A) their complex orders are on the entry into the COB, complex orders with
opposite side of (1) a priority customer
[FR Doc. 2018–03200 Filed 2–15–18; 8:45 am] that origin type may still be entered into
complex order(s) resting in the COB with a
BILLING CODE 8011–01–P price not outside the national spread market;
the System as opening-only or
or (2) order(s) on the same side of the market immediate-or-cancel, as such orders
in the same strategy that initiated a COA(s) would not rest in the COB when the
SECURITIES AND EXCHANGE if there are ‘‘x’’ number of COAs within ‘‘y’’ Exchange is open for trading.
COMMISSION milliseconds, counted on a rolling basis (the The Exchange proposes to amend
Exchange determines the number ‘‘x’’ (which Rule 6.53C(c) to provide in a class in
[Release No. 34–82689; File No. SR–CBOE– must be at least 2) and time period ‘‘y’’ which the Exchange determines
2018–016] (which may be no more than 2,000)); and complex orders of Market-Makers and
(B) they cancel their complex orders, if away market-makers are not eligible for
Self-Regulatory Organizations; Cboe they remain unexecuted, no later than a
Exchange, Inc.; Notice of Filing of a entry into the COB, the Exchange may
specified time (which the Exchange
Proposed Rule Change To Amend determine that Market-Makers and away
determines and may be no more than five
Rules Related to the Complex Order minutes) after the time the COB receives the market-makers may enter complex
Book Market-Maker order.
3 Currently, Cboe Options has determined Market-
February 12, 2018. Complex orders not eligible to route Maker (origin code ‘‘M’’) and market-maker or
Pursuant to Section 19(b)(1) of the to COB (either directly or from PAR to specialist on an options exchange (‘‘away market-
COB) will route via the order handling makers’’) (origin code ‘‘N’’) complex orders in
Securities Exchange Act of 1934 (the options on the S&P 500 (‘‘SPX’’ and ‘‘SPXW’’) and
‘‘Act’’),1 and Rule 19b–4 thereunder,2 system pursuant to Rule 6.12. the Cboe Volatility Index (‘‘VIX’’) are not eligible for
notice is hereby given that, on February (ii)–(iv) No change. entry into the COB. See Regulatory Circular RG15–
2, 2018, Cboe Exchange, Inc. (the (d) No change. 195. The group of SPX options with standard third-
daltland on DSKBBV9HB2PROD with NOTICES
. . . Interpretations and Policies: Friday settlements trade under the SPX symbol on
‘‘Exchange’’ or ‘‘Cboe Options’’) filed the Hybrid 3.0 trading system, and the group of SPX
with the Securities and Exchange .01–.12 No change. options with other settlements trade under the
Commission (the ‘‘Commission’’) the * * * * * SPXW symbol on the Hybrid trading system.
The text of the proposed rule change Pursuant to Rule 8.14, Interpretation and Policy
.01(c), the Exchange may establish different trading
11 17 CFR 200.30–3(a)(12). is also available on the Exchange’s parameters for each group to the extent the
1 15 U.S.C. 78s(b)(1). website (http://www.cboe.com/ Exchange Rules otherwise provide for such
2 17 CFR 240.19b–4. AboutCBOE/CBOELegalRegulatory parameters to be established on a class basis.
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Document Created: 2018-02-16 00:55:27
Document Modified: 2018-02-16 00:55:27
| 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 7090 |
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