[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)]
[Notices]
[Pages 7090-7092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03200]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82687; File No. SR-ICEEU-2018-003]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to the ICE Clear Europe Rules for the Transition of Trading in 
Certain F&O Contracts

February 12, 2018.
    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 7, 2018, ICE Clear Europe Limited (``ICE Clear Europe'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule changes 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 changes 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 immediately 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. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    ICE Clear Europe proposes revising the ICE Clear Europe Rules (the 
``Clearing House Rules'') \5\ to add new rules to accommodate the 
transition of trading in certain F&O Contracts from one Market to 
another.
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in the Clearing House Rules.
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II. Clearing Agency'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 such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

(a) Purpose
    ICE Futures Europe has announced that certain F&O Contracts 
currently listed on that exchange and cleared at ICE Clear Europe will 
be removed from trading and that equivalent contracts will commence 
trading on the ICE Futures U.S., Inc. (``ICE Futures US'') exchange.\6\ 
Clearing of the transitioning contracts will remain at ICE Clear 
Europe. The purpose of the proposed amendments is to accommodate this 
transition under the Clearing House Rules.
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    \6\ ICE Futures Europe Circular 18/002 (Jan. 10, 2018); ICE 
Futures Europe Circular 18/009 (Jan. 23, 2018).
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    Specifically, ICE Clear Europe is adopting a new Part 23 of the 
Rules, which will apply to the announced transition as well as any 
future similar transitions. Part 23 will apply where the Clearing House 
identifies by Circular one or more F&O Contracts for which

[[Page 7091]]

trading is to be transitioned from one Market to another 
(``Transitioning Contracts'') as of a designated time (the ``Transition 
Time''). Rule 2302 adds related definitions, including the concepts of 
``Exiting Market'' (from which the contracts are being moved) and 
``Receiving Market'' (to which the contracts are being moved). (In 
connection with the announced transition between ICE Futures Europe and 
ICE Futures US, ICE Futures Europe would be the Exiting Market and ICE 
Futures US would be the Receiving Market.)
    New Rule 2303 provides that as of the relevant Transition Time, 
trading of the Transitioning Contract will transfer from the Exiting 
Market to the Receiving Market. New Rule 2304(a) provides that the 
Transitioning Contracts will be automatically redesignated such that 
they become Contracts under the Market Rules of the Receiving Market 
and are no longer Contracts under the Market Rules of the Exiting 
Market. Under the Rule, the redesignated Contracts remain in full force 
and effect as between the relevant Clearing Member and the Clearing 
House.
    New Rule 2304(b) further addresses the situation where the 
Receiving Market is a U.S. designated contract market and the Exiting 
Market is not. In that case, in order to comply with relevant 
segregation requirements under Section 4d of the U.S. Commodity 
Exchange Act, Transitioning Contracts registered in the Non-DCM/Swap 
Customer Account of an FCM/BD Clearing Member will be automatically 
transferred to the DCM Customer Account of such FCM/BD Clearing Member; 
and FCM/BD Customer Collateral in respect of such open Transitioning 
Contracts will be held in the Clearing House DCM Segregated Account as 
FCM/BD U.S. Futures Customer Collateral under the Rules.
    In connection with the announced transition between ICE Futures 
Europe and ICE Futures US, ICE Clear Europe will issue a Circular 
indicating the specific contracts that are to be Transitioning 
Contracts and the Transition Time for purposes of Part 23 of the Rules. 
ICE Clear Europe has attached as Exhibit 5 hereto the list of 
Transitioning Contracts. The Transition Time is expected to be on or 
about February 18, 2018.
(b) Statutory Basis
    ICE Clear Europe believes that the changes described herein are 
consistent with the requirements of Section 17A of the Act \7\ and the 
regulations thereunder applicable to it, and in particular 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.\8\ ICE Clear 
Europe is implementing the amendments in order to facilitate the 
transition of the Transitioning Contracts from one Market to another in 
a manner designed to minimize any impact on Clearing Members and their 
customers. The Transitioning Contracts will continue to be eligible for 
clearing at ICE Clear Europe, and the terms and conditions of such 
contracts are not changing in any material respect. The Transitioning 
Contracts will be cleared by ICE Clear Europe in substantially the same 
manner as before the transition (other than with respect to the class 
of customer account, as discussed herein). With respect to the 
safeguarding of securities and funds in the custody or control of ICE 
Clear Europe, the Transitioning Contracts will become traded on ICE 
Futures US, a designated contract market under the Commodity Exchange 
Act, and as such will become subject to the segregation requirements 
under that act. Accordingly, the amendments provide that customer 
positions in Transitioning Contracts will, following the transition, be 
held in the DCM Customer Account and the associated margin will be held 
in the Clearing House DCM Segregated Account as FCM/BD U.S. Futures 
Customer Collateral. For the foregoing reasons, ICE Clear Europe 
believes that the amendments are consistent with the requirements of 
Section 17A(b)(3)(F) and the regulations of the Commission thereunder.
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    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Clearing Agency'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 solely are designed to facilitate the transition of the 
Transitioning Contracts from one Market to another, as requested by 
such markets. As a result, ICE Clear Europe does not believe the 
amendments would adversely affect Clearing Members, materially affect 
the cost of clearing, adversely affect access to clearing in F&O 
Contracts for Clearing Members or their customers, or otherwise 
adversely affect competition in clearing services. Accordingly, ICE 
Clear Europe does not believe that the amendments would impose any 
impact or burden on competition that is not appropriate in furtherance 
of the purpose of the Act.

(C) Clearing Agency'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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \9\ and paragraph (f) of Rule 19b-4 \10\ 
thereunder. 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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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f).
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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-2018-003 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-2018-003. 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

[[Page 7092]]

internet website (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 website 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 website at https://www.theice.com/clear-europe/regulation#rule-filings.
    All comments received will be posted without change. Persons 
submitting comments are cautioned that we do not redact or edit 
personal identifying information from comment submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ICEEU-2018-003 and should be 
submitted on or before March 9, 2018.

    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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Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2018-03200 Filed 2-15-18; 8:45 am]
BILLING CODE 8011-01-P