[Federal Register Volume 77, Number 198 (Friday, October 12, 2012)]
[Notices]
[Pages 62289-62290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25103]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67998; File No. SR-ICEEU-2012-07]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Order Granting Accelerated Approval of Proposed Rule 
Change To Revise CDS Procedures Related to Clearing Certainty 
Requirements

October 5, 2012.
    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 September 25, 2012, ICE Clear Europe Limited (``ICE Clear Europe'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I and II below, which items 
have been prepared primarily by ICE Clear Europe. The Commission is 
publishing this Notice and Order to solicit comments on the proposed 
rule change from interested persons and to approve the proposed rule 
change on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of Terms of Substance of 
the Proposed Rule Change

    ICE Clear Europe is in regular communication with representatives 
of its Clearing Members, as that term is defined in the CDS Procedures 
of ICE Clear Europe (the ``CDS Procedures'') in relation to the 
operation of clearing processes and arrangements. The purpose of the 
proposed rule changes is to implement in its CDS Procedures new 
clearing certainty requirements under Commodity Futures Trading 
Commission (``CFTC'') Rules 39.12(b)(7) and 1.74(b), which become 
effective on October 1, 2012. All capitalized terms not defined herein 
are defined in the CDS Procedures.

II. Self-Regulatory Organization's Statement of 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 III 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. Self-Regulatory Organization's Statement of Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    As noted above, the principal purpose of the proposed procedure 
amendments is to update the particular characteristics of the CDS 
Procedures applicable to the clearing of CDS Contracts. Specifically, 
the proposed rule changes affect Part 4 of the CDS Procedures by 
addressing the timeframe under which trades must be accepted or 
rejected for clearing under new CFTC rules and adding certain 
clarifying language around the weekly CDS clearing cycle. Each of these 
changes is described in detail as follows.
    Paragraph 4.4(b) and 4.5 of the CDS Procedures will be revised to 
clarify the acceptance timing and procedures for the weekly CDS 
clearing cycle in light of the new clearing certainty requirements 
under CFTC rules.
    Under paragraph 4.19 of the revised CDS Procedures, ICE Clear 
Europe will incorporate new CFTC Rule 39.12(b)(7)(ii), which requires, 
among other things, that ICE Clear Europe accept or reject trades 
submitted for clearance that are executed competitively on or subject 
to the rules of a designated contract market or swap execution facility 
(or similar facility) as soon after execution as would be 
technologically practicable if fully automated systems were used.
    Under paragraph 4.20 of the revised CDS Procedures, ICE Clear 
Europe will incorporate new CFTC Rule 39.12(b)(7)(iii), which requires, 
among other things, that ICE Clear Europe accept or reject trades 
submitted for clearance that are not executed competitively on or 
subject to the rules of a designated contract market or swap execution 
facility (or similar facility) as soon after submission for clearing 
would be technologically practicable if fully automated systems were 
used.
    Finally, under paragraph 4.21 of the revised CDS Procedures, ICE 
Clear Europe will implement the standards of CFTC Rule 1.74(b) that 
require Clearing Members to accept or reject each Trade submitted by or 
for the Clearing Member as quickly as would be technologically 
practicable if fully automated systems were used. Clearing Members 
would

[[Page 62290]]

also be required to submit such Trades to ICE Clear Europe following 
such acceptance as quickly as would be practicable if fully automated 
systems were used.
    ICE Clear Europe believes that the proposed rule changes are 
consistent with the purposes and requirements of Section 17A of the Act 
and the rules and regulations thereunder applicable to it. ICE Clear 
Europe believes that implementing the CFTC's clearing certainty 
requirements will comply with the Act and the rules and regulations 
thereunder.

B. Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe that the proposed rule change 
will have any impact or impose any burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    ICE Clear Europe has not solicited and does not intend to solicit 
comments regarding this proposed rule change. ICE Clear Europe has not 
received any unsolicited written comments from interested parties.

III. 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 may be submitted by using the 
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or send an email to [email protected]. Please include 
File No. SR-ICEEU-2012-07 on the subject line.
     Paper comments should be sent in triplicate to Elizabeth 
M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street 
NE., Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2012-07. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549 on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of ICE Clear Europe 
and on ICE Clear Europe's Web site at https://www.theice.com/notices/Notices.shtml. All comments received will be posted without change; the 
Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
ICEEU-2012-07 and should be submitted on or before November 2, 2012.

IV. Commission's Findings and Order Granting Accelerated Approval of 
Proposed Rule Change

    Section 19(b) of the Act \3\ directs the Commission to approve a 
proposed rule change of a self-regulatory organization if it finds that 
such proposed rule change is consistent with the requirements of the 
Act and the rules and regulations thereunder applicable to such 
organization. The Commission finds that the proposed rule change is 
consistent with the requirements of the Act, in particular the 
requirements of Section 17A of the Act, and the rules and regulations 
thereunder applicable to ICE Clear Europe.\4\ Specifically, the 
Commission finds that the proposed rule change is consistent with 
Section 17A(b)(3)(F) of the Act which 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 
because the proposed rule change should allow ICE Clear Europe to 
incorporate into its CDS Procedures language that articulates the time 
frame in which trades must be accepted or rejected under new CFTC 
rules.\5\
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    \3\ 15 U.S.C. 78s(b).
    \4\ 15 U.S.C. 78q-1. In approving this proposed rule change, the 
Commission has considered the proposed rule's impact on efficiency, 
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
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    In its filing, ICE Clear Europe requested that the Commission 
approve this proposed rule change on an accelerated basis for good 
cause shown. ICE Clear Europe cites as the reason for this request ICE 
Clear Europe's operation as a DCO, which is subject to regulation by 
the CFTC under the CEA. The Commission finds good cause for approving 
the proposed rule change prior to the 30th day after the date of 
publication of notice in the Federal Register because the proposed rule 
change allows ICE Clear Europe to implement the regulations of another 
federal regulatory agency, the CFTC, in accordance with those 
regulations' effective date.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act, 
that the proposed rule change (SR-ICEEU-2012-07) is approved on an 
accelerated basis.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\6\
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    \6\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-25103 Filed 10-11-12; 8:45 am]
BILLING CODE 8011-01-P