[Federal Register Volume 78, Number 172 (Thursday, September 5, 2013)]
[Notices]
[Pages 54718-54720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21532]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70281; File No. SR-ICEEU-2013-10]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Related 
to Regulatory Reporting of Swap Data

August 29, 2013.
    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 August 20, 2013, 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. ICE Clear Europe 
filed the proposal pursuant to Section 19(b)(3)(A)(iii) \3\ of the Act 
and Rule 19b-4(f)(4)(ii) \4\ thereunder so that the proposal was 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(4)(ii).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ICE Clear Europe submits the proposed amendment to its clearing 
rules in order to add Rule 411 which facilitates swap data repository 
(``SDR'') reporting by and at ICE Clear Europe that is consistent with 
Part 45 of Commodity Futures Trading Commission (``CFTC'') Rules and 
Regulations. Proposed Rule 411 provides that ICE Clear Europe will 
report creation and continuation data to ICE Trade Vault, LLC (``ICE 
Trade Vault''), a provisionally registered SDR selected by ICE Clear 
Europe.

II. Self-Regulatory Organization'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 these statements.

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

    The proposed rule amendment includes proposed Rule 411, which 
provides that with respect to all swaps cleared by ICE Clear Europe and 
resulting positions, ICE Clear Europe will report creation and 
continuation data to ICE Trade Vault for purposes of complying with 
applicable CFTC rules and regulations governing the regulatory 
reporting of swaps, specifically CFTC Regulations 45.3,\5\ 45.4(b) \6\ 
and 45.9.\7\ Proposed Rule 411 is consistent with CFTC Regulations 45.3 
\8\ and 45.4(b) \9\ that require that creation and continuation data 
must be reported by both the derivatives clearing organization and the 
reporting counterparty. ICE Clear Europe currently complies with CFTC 
Regulations 45.3 \10\ and 45.4(b) \11\ by reporting swap data to ICE 
Trade Vault. In order to codify ICE Clear Europe's practice of 
reporting relevant Part 45 data to ICE Trade Vault, ICE Clear Europe 
proposed to add to its Clearing Rules, Rule 411 (Swap Data Repository 
``SDR'' Reporting).
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    \5\ 17 CFR 45.3.
    \6\ 17 CFR 45.4(b).
    \7\ 17 CFR 45.9.
    \8\ 17 CFR 45.3.
    \9\ 17 CFR 45.4(b).
    \10\ 17 CFR 45.3.
    \11\ 17 CFR 45.4(b).
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    Proposed Rule 411 further provides that upon the request of a 
clearing member counterparty to a swap cleared at ICE Clear Europe, ICE 
Clear Europe

[[Page 54719]]

will provide the same creation and continuation data reported by ICE 
Clear Europe to ICE Trade Vault to an SDR selected by such 
counterparty. In this regard, proposed Rule 411 is also consistent with 
CFTC Regulation 45.9 \12\ that provides that swap counterparties 
required by Part 45 to report swap creation or continuation data may 
contract with third-party service providers to facilitate reporting. 
Proposed Rule 411 ensures that ICE Clear Europe, in the capacity of a 
third-party service provider, will be responsible for reporting 
required swap creation and continuation data on behalf of ICE Clear 
Europe's clearing members.
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    \12\ 17 CFR 45.9.
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    The addition of proposed Rule 411 is in response to swap dealers' 
mandatory compliance with CFTC Regulations 45.3 \13\ and 45.4,\14\ 
which was required as of February 28, 2013.
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    \13\ 17 CFR 45.3.
    \14\ 17 CFR 45.4.
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    ICE Clear Europe believes that the proposed rule change is 
consistent with the requirements of Section 17A of the Act \15\ and the 
regulations thereunder applicable to it. ICE Clear Europe notes that 
proposed Rule 411 mirrors ICE Clear Credit LLC (``ICC'') Rule 211, 
approved by the Commission on an accelerated basis pursuant to Section 
19(b)(2) of the Act \16\ on April 9, 2013, in every substantive 
respect. ICE Clear Europe notes that in the Commission's notice of 
filing and order granting accelerated approval of ICC Rule 211, the 
Commission found that ``by facilitating compliance with the swap data 
reporting requirements of [the CFTC], [ICC Rule 211] is consistent with 
promoting the prompt and accurate clearance and settlement of 
derivative agreements, contracts, and transactions, assuring the 
safeguarding of securities and funds which are in the custody or 
control of the clearing agency or for which it is responsible, and 
protecting investors and the public interest'' as required under 
Section 17A(b)(3)(F) of the Act.\17\
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    \15\ 15 U.S.C. 78q-1.
    \16\ 15 U.S.C. 78s(b)(2).
    \17\ 15 U.S.C. 78q-1(b)(3)(F); see Securities Exchange Act 
Release No. 69628 (Apr. 9, 2013), 78 FR 22350, 22351-52 (Apr. 15, 
2013) (SR-ICC-2013-05).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed rule change would 
have any impact, or impose any burden, on competition. In general, 
proposed Rule 411 does not have any effect on competition because it is 
not a restraint. The proposed rule in no way keeps reportable trade 
data regarding swaps from being reported to any other SDR and, in fact, 
explicitly allows a clearing member that is a counterparty to a swap 
cleared at ICE Clear Europe to designate any SDR to receive swap 
creation and continuation data. While an affiliate of ICE Clear Europe, 
ICE Trade Vault, is available to handle SDR reporting obligations, ICE 
Clear Europe's rule is designed to permit ICE Clear Europe's clearing 
members to be able to designate any SDR to receive the required 
reports. The ability of ICE Clear Europe clearing members to designate 
any SDR ensures the competitiveness of the various reporting 
facilities.
    Additionally, proposed Rule 411 complies with the swap data 
reporting requirements of the Commodity Exchange Act and the CFTC's 
rules thereunder that further the goals of reducing systemic risk, 
increasing transparency and promoting market integrity within the 
financial system. The Commission has found that a rule that facilitates 
compliance with the swap data reporting requirements of another 
regulator is consistent with the requirements of the Act, in particular 
the requirements of Section 17A of the Act \18\ and the rules and 
regulations thereunder applicable to a clearing agency.
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    \18\ 15 U.S.C. 78q-1.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments relating to the rule change have been solicited 
from clearing members as part of the rule change process. 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 and Timing for 
Commission Action

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A)(iii) of the Act \19\ and Rule 19b-4(f)(4)(ii) 
\20\ thereunder because it is effecting a change in an existing service 
of a registered clearing agency that primarily affects the clearing 
operations of the clearing agency with respect to products that are not 
securities, including swaps that are not security-based swaps or mixed 
swaps, and does not significantly affect the securities clearing 
operations of the clearing agency or any related rights or obligations 
of the clearing agency with respect to securities clearing or persons 
using such service. 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.
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    \19\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \20\ 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 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 [email protected]. Please include 
File Number SR-ICEEU-2013-10 on the subject line.

Paper Comments

     Send paper comments 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-2013-10. 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 filings 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?regulatoryFilings.
    All comments received will be posted without change; the Commission 
does not edit personal identifying

[[Page 54720]]

information from submissions. You should submit only information that 
you wish to make available publicly. All submissions should refer to 
File Number SR-ICEEU-2013-10 and should be submitted on or before 
September 26, 2013.
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    \21\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\21\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-21532 Filed 9-4-13; 8:45 am]
BILLING CODE 8011-01-P