[Federal Register Volume 81, Number 48 (Friday, March 11, 2016)]
[Notices]
[Pages 13010-13011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05442]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77311; File No. SR-ICEEU-2016-002]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the Delegation of Authority To Approve Certain Rule and 
Procedure Amendments

March 7, 2016.
    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 February 29, 2016, 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 proposed rule change pursuant to section 19(b)(3)(A) 
of the Act,\3\ and Rule 19b-4(f)(4)(i) \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).
    \4\ 17 CFR 240.19b-4(f)(4)(i).
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    ICE Clear Europe is proposing certain rule changes relating to the 
delegation by the ICE Clear Europe Board of Directors to its President 
and Managing Director (acting together with the Head of Regulation) of 
authority to approve certain rule and procedure amendments.

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

1. Purpose
    The purpose of the changes is to authorize the President and 
Managing Director of ICE Clear Europe, acting together with the Head of 
Regulation, to approve certain amendments to the ICE Clear Europe 
Clearing Rules and Procedures, without the need for specific Board 
approval. Under existing practice, consistent with the ICE Clear Europe 
Articles, all Rule and Procedure amendments, regardless of 
significance, require Board approval. In light of its experience with 
this practice, the ICE Clear Europe Board has determined that certain 
categories of Rule and Procedure changes do not necessarily need Board 
approval, as discussed herein.
    Accordingly, the ICE Clear Europe Board proposes to delegate to the 
President and Managing Director, acting together with the Head of 
Regulation, authority to approve Rule and Procedure amendments relating 
to business-as-usual product launches and operational processes. These 
categories of amendments would include, for example, amendments 
relating to launches of new cleared products of the same types as 
currently cleared, amendments that reflect changes in operational 
practices and processes, and drafting clarifications, updates and 
corrections to errors. Such amendments would not be required to be 
submitted for approval to the Board. The delegation will not otherwise 
affect other aspects of the Rule and Procedure amendment process, 
including the role of the relevant Risk Committees, consultation with 
Clearing Members and others as appropriate, internal regulatory, 
business and operational reviews and internal or external legal review, 
as appropriate. The delegation, of course, will also not affect 
regulatory submission, filing and approval requirements, as applicable. 
ICE Clear Europe management will report to the Board any Rule and 
Procedure amendments approved under this delegated authority.
    The delegation does not apply to Rule and Procedure changes 
amendments [sic] that are required to ensure compliance with relevant 
legislation directed at ICE Clear Europe as a clearing organization. 
Accordingly, such amendments will continue to require Board approval. 
In addition, even for amendments that may be approved by the President 
and Managing Director (acting together with the Head of Regulation), 
the delegation would not

[[Page 13011]]

preclude submission of amendments to and approval by the Board if ICE 
Clear Europe determined that was appropriate in the particular 
circumstances.
    In ICE Clear Europe's view, the proposed delegation will provide an 
efficient means of approving minor Rule and Procedure changes, 
consistent with the governance requirements of the clearing house. In 
light of its experience with the current approval practice, ICE Clear 
Europe believes that the categories of rule and procedure amendments 
being delegated do not typically rise to the level of significance that 
warrants Board approval, and that requiring the Board to review and 
approve such amendments is not necessarily a good use of the Board's 
time and resources. In approving the delegation of authority, the Board 
concluded that the internal review, consultation and regulatory 
processes around the rule amendment process will ensure appropriate 
review and consideration of any proposed amendments.
2. Statutory Basis
    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, and are consistent with the 
prompt and accurate clearance 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.\6\ As discussed above, the changes are 
intended to create a more efficient procedure for review and approval 
of certain business-as-usual and operational Rule and Procedure 
amendments. Under the revised practice, such amendments could be 
approved by the President and Managing Director acting together with 
the Head of Regulation, without the need for Board approval. In ICE 
Clear Europe's view, such amendments do not generally warrant the 
Board's detailed review, and the delegation will accordingly permit the 
Board to devote its time and resources to other Clearing House matters. 
The Board will be notified of all amendments approved pursuant to 
delegated authority and will retain oversight of the process. As a 
result, ICE Clear Europe believes the changes will promote the prompt 
and accurate clearance and settlement of securities and derivatives 
transactions, and further the public interest in the safe and effective 
clearing of such transactions. The changes are thus consistent with the 
requirements of section 17A of the Act.\7\
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
    \7\ 15 U.S.C. 78q-1.
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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 purpose of the Act. The 
amendments relate to ICE Clear Europe's internal approval processes, 
and ICE Clear Europe does not believe that these changes will impose 
any additional costs on Clearing Members or other market participants. 
ICE Clear Europe further does not believe that the amendments will 
adversely affect access to clearing by Clearing Members or their 
customers or otherwise adversely affect Clearing Members or market 
participants or the market for clearing services generally.

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) \8\ of the Act and Rule 19b-4(f)(1) \9\ 
thereunder. The amendments constitute a stated policy, practice or 
interpretation with respect to the meaning, administration or 
enforcement of an existing rule. 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)(1).
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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 
changes are 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-2016-002 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-2016-002. 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-2016-002 
and should be submitted on or before April 1, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-05442 Filed 3-10-16; 8:45 am]
 BILLING CODE 8011-01-P