[Federal Register Volume 80, Number 94 (Friday, May 15, 2015)]
[Notices]
[Pages 28035-28036]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11715]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74922; File No. SR-ICEEU-2015-009]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing of Proposed Rule Change Relating to Finance Procedures To Add 
Clearstream Banking as a Triparty Collateral Service Provider

May 11, 2015.
    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 May 5, 2015, 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 primarily prepared by ICE Clear Europe. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ICE Clear Europe proposes amendments to its Finance Procedures in 
order to facilitate the use by CDS Clearing Members of Clearstream 
Banking as a 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. 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. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    The purpose of the proposed rule change is to modify the Finance 
Procedures to allow Clearstream Banking to serve as a triparty 
collateral service provider for initial or original margin provided in 
respect of all product categories, including CDS Contracts. 
(Clearstream Banking currently serves as a triparty collateral service 
provider solely for original margin provided in respect of F&O 
Contracts).
    Specifically, paragraph 3.1 of the Finance Procedures is revised to 
remove the existing restriction that Clearstream Banking may only act 
as a triparty collateral service provider with respect to Original 
Margin in respect of F&O Contracts. As a result of such change, 
Clearstream Banking would be permitted to act as a triparty collateral 
service provider for initial or original margin in respect of any 
product category, including the CDS product category. (The other 
currently authorized triparty collateral service provider, Euroclear 
Bank, is similarly eligible to act as such for any product category.) A 
correction is also made in paragraph 3.20 to provide that the specified 
instruction deadlines apply to triparty collateral arrangements with 
both Euroclear Bank and Clearstream Banking.
    ICE Clear Europe believes that the proposed rule change is 
consistent with the requirements of Section 17A of the Act \3\ and the 
regulations thereunder applicable to it. Section 17A(b)(3)(F) of the 
Act \4\ 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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    \3\ 15 U.S.C. 78q-1.
    \4\ 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 a triparty collateral service 
provider with respect to initial and original margin for the CDS (and 
FX) product categories, in

[[Page 28036]]

addition to its existing authorization for the F&O product category. 
The amendments do not otherwise change the substantive terms of the 
service. ICE Clear Europe views Clearstream Banking as substantially 
similar to Euroclear Bank, the current service provider, from an 
operational and risk perspective and otherwise in terms of the 
safeguarding of funds and securities. Clearstream Banking is currently 
authorized to act as a triparty collateral service provider with 
respect to original margin for the F&O product category, and based on 
experience in that product category ICE Clear Europe believes that use 
of Clearstream Banking can be appropriately extended to the other 
product categories. As a result, ICE Clear Europe believes that the 
proposed rule change 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).\5\
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    \5\ 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 rule change would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
rule change will provide additional flexibility to Clearing Members by 
permitting the use, on a voluntary basis, of Clearstream Banking as a 
triparty collateral service provider for original or initial margin for 
all product categories. The proposed rule change will otherwise not 
affect the terms or conditions of any cleared contract or the standards 
or requirements for participation in or use of the Clearing House. 
Accordingly, the proposed rule change 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 rule change 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

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

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-2015-009 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-2015-009. 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. 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-2015-009 and should be submitted on or before June 5, 2015.

    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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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-11715 Filed 5-14-15; 8:45 am]
 BILLING CODE 8011-01-P