[Federal Register Volume 79, Number 224 (Thursday, November 20, 2014)]
[Notices]
[Pages 69158-69159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27453]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73608; File No. SR-ICEEU-2014-19]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change to 
Finance Procedures

November 14, 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 November 6, 2014, ICE Clear Europe Limited (``ICE Clear Europe'' or 
``the Clearing House'') filed with the Securities and Exchange 
Commission (``Commission'') the proposed rule change described in Items 
I, II and III below, which Items have been primarily prepared 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) thereunder,\4\ 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).
    \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

    The principal purpose of the proposed changes is to facilitate the 
use by F&O Clearing Members of an additional triparty collateral 
service provider.

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

1. Purpose
    The purpose of the amendments is to modify the Finance Procedures 
to appoint Clearstream Banking as an additional triparty collateral 
service provider in addition to Euroclear Bank, which currently acts as 
the sole service provider. Clearstream Banking will only serve as a 
triparty collateral service provider for Original Margin provided in 
respect of F&O Contracts.
    Specifically, changes are made throughout paragraph 3 of the 
Finance Procedures to add a reference to Clearstream Banking and to 
remove references to Euroclear Bank as the sole triparty collateral 
service provider, as appropriate. Paragraph 3.1 has been revised to 
designate Clearstream Banking as an additional triparty collateral 
service provider, solely with respect to Original Margin provided in 
respect of F&O Contracts. Paragraph 3.2 has been revised to reflect 
that there are two triparty collateral service providers, and to refer 
to equivalent documentation that may be required by Clearstream Banking 
as well as Euroclear Bank. Paragraph 3.9 has been revised to indicate 
that the Clearing House will provide to Clearing Members the relevant 
account details for the Clearing House's account at each triparty 
collateral service provider. Revised paragraph 3.9 also provides that 
the Clearing House will specify relevant details of the manner in which 
a Clearing Member may use a pledged collateral arrangement in 
connection with a triparty collateral account. Current paragraph 3.10, 
which addressed pledged collateral arrangements only with Euroclear, 
has been removed as unnecessary. Remaining subparagraphs in paragraph 3 
have been renumbered accordingly.
2. Statutory Basis
    ICE Clear Europe believes that the proposed changes are consistent 
with the requirements of Section 17A of the Act \5\ and the regulations 
thereunder applicable to it. Section 17A(b)(3)(F) of the Act \6\ 
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 and to assure the safeguarding 
of securities and funds which are in the custody or control of the 
clearing agency or for which it is responsible.
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    The proposed amendments are intended to extend the Clearing House's 
existing triparty collateral service to allow optional use by Clearing 
Members of Clearstream Banking as an additional triparty collateral 
service provider with respect to Original Margin for F&O Contracts. The 
amendments do not otherwise change the substantive terms of the 
service. ICE Clear Europe views Clearstream Banking as substantially 
similar to Euroclear, the current service provider, from an operational 
and risk perspective and otherwise in terms of the safeguarding of 
funds and securities. As a result, ICE Clear Europe believes that the 
proposed changes will not adversely affect the safeguarding of 
securities or funds in the custody or control of ICE Clear Europe or 
for which it is responsible, and are therefore consistent with the 
requirements of Section 17A(b)(3)(F).\7\
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    \7\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization'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 proposed 
changes will provide additional flexibility to F&O Clearing Members by 
permitting the use, on a voluntary basis, of an alternative triparty 
collateral service provider. The changes will otherwise not affect the 
terms or conditions of any cleared contract or the

[[Page 69159]]

standards or requirements for participation in or use of the Clearing 
House. Accordingly, the changes should not, in the Clearing House's 
view, affect the availability of clearing, access to clearing services 
or the costs of clearing for clearing members or other market 
participants.

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 pursuant to Section 
19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\ thereunder 
because it effects a change in an existing service of a registered 
clearing agency that primarily affects the 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, within the meaning of Rule 19b-
4(f)(4)(ii).\10\ 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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(4)(ii).
    \10\ Id.
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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-2014-19 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-2014-19. 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-2014-19 
and should be submitted on or before December 11, 2014.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27453 Filed 11-19-14; 8:45 am]
BILLING CODE 8011-01-P