[Federal Register Volume 79, Number 221 (Monday, November 17, 2014)]
[Notices]
[Pages 68494-68496]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27064]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73570; File No. SR-ICEEU-2014-21]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to the Clearance of New Energy Futures Contracts

November 10, 2014.
    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 October 28, 2014, ICE Clear Europe Limited (``ICE Clear 
Europe'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared primarily by ICE Clear 
Europe. ICE Clear Europe filed the proposal pursuant to Section 
19(b)(3)(A) of the Act,\3\ 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.
---------------------------------------------------------------------------

    \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. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The principal purpose of the change is to modify certain aspects of 
the ICE Clear Europe Delivery Procedures in connection with the launch 
by the ICE Endex market of the ICE Endex Belgian ZTP Natural Gas 
Futures Contracts (the ``Belgian Natural Gas Contracts''), which will 
be cleared 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

[[Page 68495]]

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 purpose of the rule amendments is to modify certain aspects of 
the ICE Clear Europe Delivery Procedures in connection with the launch 
by the ICE Endex market of the Belgian Natural Gas Contracts, which 
will be cleared by ICE Clear Europe. ICE Clear Europe does not 
otherwise propose to amend its clearing rules or procedures in 
connection with the Belgian Natural Gas Contracts.
    The amendments adopt a new Part H of the Delivery Procedures, which 
will be applicable to the Belgian Natural Gas Contracts in the case of 
physical delivery. The amendments provide, among other matters, 
specifications for delivery of natural gas under a Belgian Natural Gas 
Contract through the relevant Belgian transmission system, including 
relevant definitions and a detailed delivery timetable for the 
contracts. The amendments also address invoicing and payment for 
delivery and certain limitations on the liability of the Clearing House 
for performance or non-performance by the operator of the transmission 
system and provider of certain relating trading services. The 
amendments provide for calculation by the clearing house of buyer's and 
seller's security to cover delivery obligations and related 
liabilities, costs or charges, as well as procedures to address failed 
deliveries. The revised procedures also outline various documentation 
requirements for the relevant parties.
    In addition, the Parts of the Delivery Procedures after new Part H 
have been renumbered and cross-references have been updated or 
corrected. Certain other typographical corrections have also been made 
in Parts D, E, F and G of the Delivery Procedures.
    ICE Clear Europe believes that the changes described herein are 
consistent with the requirements of Section 17A of the Act \5\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22,\6\ and 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.\7\ The Belgian Natural Gas Contracts have 
similar characteristics to other ICE Endex and ICE Futures Europe 
energy contracts currently cleared by ICE Clear Europe, and ICE Clear 
Europe believes that its existing financial resources, risk management, 
systems and operational arrangements are sufficient to support clearing 
of such products (and address physical delivery under such contracts).
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
    \6\ 17 CFR 240.17Ad-22.
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Specifically, ICE Clear Europe believes that it will be able to 
manage the risks associated with acceptance of the Belgian Natural Gas 
Contracts for clearing and physical delivery in such contracts. The 
Belgian Natural Gas Contracts present a similar risk profile to other 
ICE Endex contracts currently cleared by ICE Clear Europe, and ICE 
Clear Europe believes that its existing risk management and margin 
framework is sufficient for purposes of risk management of the Belgian 
Natural Gas Contracts and related deliveries.
    Similarly, ICE Clear Europe has established appropriate standards 
for determining the eligibility of contracts submitted to the 
clearinghouse for clearing, and ICE Clear Europe believes that its 
existing systems are appropriately scalable to handle the Belgian 
Natural Gas Contracts, which are generally similar from an operational 
perspective to the other ICE Endex natural gas contracts currently 
cleared by ICE Clear Europe.
    For the reasons noted above, ICE Clear Europe believes that the 
proposed rule change is consistent with the requirements of Section 17A 
of the Act \8\ and regulations thereunder applicable to it.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

B. Self-Regulatory Organization'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 Act. ICE Clear Europe is 
adopting the amendments to the Delivery Procedures in connection with 
the listing of new contracts for trading on the ICE Endex market. ICE 
Clear Europe believes that such contracts will provide additional 
opportunities for interested market participants to engage in trading 
activity relating to the Belgian natural gas market. ICE Clear Europe 
does not believe the adoption of related Delivery Procedures amendments 
would adversely affect access to clearing for clearing members or their 
customers, or otherwise adversely affect competition in clearing 
services.

C. Self-Regulatory Organization'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 and Timing for 
Commission Action

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) \9\ of the Act and Rule 19b-4(f)(4)(ii) \10\ 
thereunder because it effects 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 futures that are not security futures, swaps that 
are not security-based swaps or mixed swaps, and forwards that are not 
security forwards, and does not significantly affect any securities 
clearing operations of the clearing agency or any rights or obligations 
of the clearing agency with respect to securities clearing or persons 
using such securities-clearing 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.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

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-2014-21 on the subject line.

[[Page 68496]]

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-2014-21. 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 will also 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/clear-europe/regulation#rule-filings.
    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-2014-21 
and should be submitted on or before December 8, 2014.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
---------------------------------------------------------------------------

    \11\ 17 CFR 200.30-3(a)(12).

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27064 Filed 11-14-14; 8:45 am]
BILLING CODE 8011-01-P