[Federal Register Volume 83, Number 104 (Wednesday, May 30, 2018)]
[Notices]
[Pages 24834-24836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11501]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83311; File No. SR-ICEEU-2018-007]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Amendments to the Clearing Rules To Implement the European 
Union General Data Protection Regulation

May 23, 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 May 22, 2018, ICE Clear Europe Limited (``ICE Clear Europe'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule changes described in Items I and II below, which Items 
have been prepared 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)(6) 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)(6).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice

    ICE Clear Europe proposes to make certain amendments to its 
Clearing Rules (the ``Rules'') to comply with certain requirements of 
the European Union General Data Protection Regulation (``GDPR'') \5\.
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    \5\ Regulation (EU) 2016/679 of the European Parliament and of 
the Council of 27 April 2016 on the protection of natural persons 
with regard to the processing of personal data and on the free 
movement of such data.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change, Security-Based Swap Submission or 
Advance Notice

    In its filing with the Commission, ICE Clear Europe included 
statements

[[Page 24835]]

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, Security-Based Swap Submission or 
Advance Notice

(a) Purpose
    The purpose of the proposed change is to amend the Rules \6\ to 
clarify the operation of certain provisions in light of requirements 
under the GDPR relating to personal data in the context of Clearing 
House activity. The GDPR takes effect on May 25, 2018.
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    \6\ Capitalized terms used but not defined herein have the 
meanings specified in the Rules.
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    Consistent with the GDPR, the amendments reflect that the Clearing 
House's policies on use of personal data will now primarily be stated 
in a privacy notice made available to Clearing Members and other market 
participants, and accordingly certain existing provisions in the Rules 
relating to personal data will be removed or modified, as discussed 
herein. Specifically, ICE Clear Europe is amending Rule 106, which sets 
out certain of its rights and obligations with respect to such personal 
data. Rule 106(c), which imposes certain requirements on Clearing 
Members and Sponsored Principals relating to ``Personal Data'' (as 
defined in the GDPR) \7\, is proposed to be updated to provide that 
such persons must ensure that they have a lawful basis for processing 
any Personal Data that they provide to the Clearing House. The 
provisions of subsections (d) and (e) have been removed (with the 
following subsections redesignated), as the relevant provisions 
describing the rights of the Clearing House to use Personal Data and 
the rights of Personal Data subjects will now be set out in a member/
user privacy notice. Rule 106(d) (as redesignated) has been revised to 
update references to defined terms used in the GDPR. Rule 106(e) (as 
redesignated) has been amended to provide an acknowledgement that 
recording of telephone conversations with the Clearing House will take 
place to the extent permitted or required under applicable law 
(including the GDPR), removes references to consent (as other lawful 
bases apply to this processing) and makes certain other drafting 
clarifications.
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    \7\ In general, ``Personal Data'' is defined for this purpose in 
the GDPR as information relating to a natural person (referred to as 
a ``Data Subject'') that would identify that person, in particular 
by reference to an identifier such as a name, identification number, 
location data, online identifier or one or more factors specific to 
the physical, physiological, genetic, mental, economic, cultural or 
social entity of that person.
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(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments are 
consistent with the requirements of Section 17A of the Act \8\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22.\9\ In particular, Section 17A(b)(3)(F) of the Act \10\ 
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, the safeguarding of securities 
and funds in the custody or control of the clearing agency or for which 
it is responsible, and the protection of investors and the public 
interest. The amendments clarify certain rights and obligations of the 
Clearing House, Clearing Members and Sponsored Principals with respect 
to Personal Data obtained in connection with clearing activity in light 
of updated legal requirements under the GDPR. As such the amendments 
are consistent with the protection of investors and the public 
interest.
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    \8\ 15 U.S.C. 78q-1.
    \9\ 17 CFR 240.17Ad-22.
    \10\ 15 U.S.C. 78q-1(b)(3)(F).
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    Moreover, the amendments are consistent with Rule 17Ad-
22(e)(1),\11\ which requires that each covered clearing agency 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to provide for a well-founded, clear, 
transparent, and enforceable legal basis for each aspect of its 
activities in all relevant jurisdictions. As discussed herein, the 
amendments are designed to facilitate compliance by ICE Clear Europe 
and its Clearing Members and Sponsored Principals with the GDPR, and 
thereby facilitate continued clearing in Europe in accordance with the 
new EU regulations relating to data protection. ICE Clear Europe does 
not expect that ensuring that all Personal Data is provided and 
processed in a manner consistent with data privacy regulations under 
the GDPR will adversely impact its ability to comply with the Act or 
any standards under Rule 17Ad-22.\12\
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    \11\ 17 CFR 240.17Ad-22(e)(1).
    \12\ 17 CFR 240.17Ad-22.
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(B) Clearing Agency'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 amendments 
are being adopted to comply with European Union requirements applicable 
to Personal Data under the GDPR. Although the amendments could impose 
certain additional costs on Clearing Members and Sponsored Principals, 
these result from the requirements imposed by the GDPR, and are 
generally applicable throughout the European Union. Accordingly, the 
amendments would apply to all Clearing Members and Sponsored 
Principals. ICE Clear Europe also does not believe the amendments would 
adversely affect competition among clearing members, the market for 
clearing services generally or access to clearing in cleared products 
by clearing members or other market participants.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants or Others

    Written comments relating to the proposed amendments have not been 
solicited or received by ICE Clear Europe. ICE Clear Europe will notify 
the Commission of any comments received with respect to the proposed 
rule change.

III. Date of Effectiveness of the Proposed Rule Change, Security-Based 
Swap Submission and Advance Notice and Timing for Commission Action

    Because the foregoing proposed rule change does not (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, provided that the 
self-regulatory organization has given the Commission written notice of 
its intent to file the proposed rule change at least five business days 
prior to the date of filing of the proposed rule change or such shorter 
time as designated by the Commission,\13\ the proposed rule

[[Page 24836]]

change has become effective pursuant to Section 19(b)(3)(A) of the Act 
\14\ and Rule 19b-4(f)(6) \15\ thereunder.
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    \13\ ICE Clear Europe has satisfied this requirement.
    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally 
does not become operative prior to 30 days after the date of its 
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. ICE Clear Europe has 
requested that the Commission waive the five-day pre-filing requirement 
and the 30-day operative delay so that ICE Clear Europe may implement 
the proposed rule change by the effective date of the GDPR (May 25, 
2018). The Commission notes that the proposed rule change is limited to 
clarifying certain requirements in the Rules relating to the treatment 
of Personal Data obtained in connection with clearing activity and 
clarifying certain rights and obligations of the Clearing House, 
Clearing Members and Sponsored Principals with respect to Personal Data 
obtained in connection with clearing activity in light of updated legal 
requirements under the GDPR. The proposed rule change does not (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant burden on competition; or (iii) 
effect the safeguarding of funds or securities in the custody or 
control of ICE Clear Europe or for which it is responsible. Waiver of 
the 30-day operative delay would allow ICE Clear Europe to implement 
the proposed rule change prior to the effective date of the GDPR and 
therefore comply with EU law. Therefore, the Commission believes that 
waiving the 30-day operative delay is consistent with the protection of 
investors and the public interest and designates the proposed rule 
change as operative upon filing.\18\
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    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
    \18\ For purposes only of waiving the five-day pre-filing 
requirement and the 30-day operative delay, the Commission has 
considered the proposed rule change's impact on efficiency, 
competition, and capital formation. See 15 U.S.C. 78c(f).
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    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: (i) 
Necessary or appropriate in the public interest; (ii) for the 
protection of investors; or (iii) otherwise in furtherance of the 
purposes of the Act. If the Commission takes such action, the 
Commission shall institute proceedings to determine whether the 
proposed rule should be approved or 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, security-based swap submission or advance notice 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-2018-007 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-2018-007. 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 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, security-based 
swap submission or advance notice that are filed with the Commission, 
and all written communications relating to the proposed rule change, 
security-based swap submission or advance notice 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/notices/Notices.shtml?regulatoryFilings.
    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-2018-007 and should be 
submitted on or before June 20, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2018-11501 Filed 5-29-18; 8:45 am]
 BILLING CODE 8011-01-P