[Federal Register Volume 83, Number 113 (Tuesday, June 12, 2018)]
[Notices]
[Pages 27359-27360]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12551]



[[Page 27359]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83387; File No. SR-ICC-2018-005]


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

June 6, 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 25, 2018, ICE Clear Credit LLC (``ICC'') filed with the 
Securities and Exchange Commission (``Commission'') the proposed rule 
change described in Items I and II below, which Items have been 
prepared by ICC. ICC 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

    The principal purpose of the proposed change is to make changes to 
the ICC Clearing Rules (the ``ICC Rules'') to comply with certain 
requirements of the European Union (``EU'') General Data Protection 
Regulation (``GDPR'').\5\
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    \5\ Regulation (EU) 2016/679 of the European Parliament and of 
the Council of April 27, 2016.
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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, ICC 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. ICC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of these 
statements.

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

(a) Purpose
    ICC proposes revisions to Rule 407 to update its policies on data 
protection to facilitate compliance with the requirements of the GDPR, 
which took effect on May 25, 2018. The proposed revisions are described 
in detail as follows.
    The amendments reflect that ICC's policies on use of personal data 
will now primarily be stated in a privacy notice made available to 
Clearing Participants (``CPs'') and other market participants, and 
accordingly certain existing provisions in the Rules relating to 
personal data will be removed or modified, as discussed herein. ICC 
proposes minor changes to terminology in Rule 407(a)(iv) to replace the 
term Data Protection Directive with Data Protection Regulation, which 
will refer to the GDPR. ICC proposes corresponding changes throughout 
the document. Under the proposed revisions, Rule 407(i) states that 
subsections (i) through (m) apply to the extent that ICC is within 
scope of the GDPR, and notes ICC's right to process ``Personal Data'' 
(as defined in the GDPR) \6\ for purposes permitted under the GDPR. The 
proposed amendments also remove existing subsections (j) and (k), as 
the relevant provisions containing ICC's obligations with respect to 
Personal Data will now be set out in a privacy notice, and, instead, 
include ICC's commitment to keeping Personal Data confidential in a new 
subsection (j) and intentionally omit subsection (k). The proposed 
updates to Rule 407(l) specify that CPs must ensure they have a lawful 
basis for processing Personal Data provided to ICC. ICC also proposes 
including references to defined terms used in the GDPR in Rule 407(m). 
The proposed new Rule 407(n) states that recording telephone 
conversations with ICC will take place to the extent permitted or 
required under applicable law.
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    \6\ Personal Data is defined in the GDPR as information related 
to a natural person that would identify that person, in particular 
by reference to an identifier such as a name, an identification 
number, location data, an online identifier or one or more factors 
specific to the physical, physiological, genetic, mental, economic, 
cultural or social identity of that person.
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(b) Statutory Basis
    Section 17A(b)(3)(F) of the Act \7\ requires, among other things, 
that the rules of a clearing agency be designed to protect investors 
and the public interest and to comply with the provisions of the Act 
and the rules and regulations thereunder. ICC believes that the 
proposed rule change is consistent with the requirements of the Act and 
the rules and regulations thereunder applicable to ICC, in particular, 
to Section 17A(b)(3)(F),\8\ because ICC believes that the proposed rule 
change will protect investors and the public interest, as the proposed 
revisions provide additional clarity on the rights and obligations of 
ICC and its CPs relating to Personal Data and facilitate ICC's 
compliance with the GDPR. As such, the proposed rule change is designed 
to protect investors and the public interest within the meaning of 
Section 17(A)(b)(3)(F) \9\ of the Act.
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    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Clearing Agency's Statement on Burden on Competition

    ICC 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 amendments 
are being adopted to facilitate compliance with EU requirements 
applicable to Personal Data under the GDPR, and apply to all CPs and 
market participants. Although the amendments could impose certain 
additional costs on CPs, these result from the requirements imposed by 
the GDPR, and are generally applicable throughout the EU. As a result, 
ICC does not believe the amendments would adversely affect competition 
among CPs, the market for clearing services generally or access to 
clearing in cleared products by CPs 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 rule change have not been 
solicited or received. ICC will notify the Commission of any written 
comments received by ICC.

III. Date of Effectiveness of the Proposed Rule Change 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

[[Page 27360]]

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,\10\ the proposed rule change has become 
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) \12\ thereunder.
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    \10\ ICC has satisfied this requirement.
    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \13\ normally 
does not become operative prior to 30 days after the date of its 
filing. Pursuant to Rule 19b-4(f)(6)(iii),\14\ however, the Commission 
may designate a shorter time if such action is consistent with the 
protection of investors and the public interest. ICC has requested that 
the Commission waive the five-day pre-filing requirement and the 30-day 
operative delay so that ICC 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 revising Rule 407 to 
facilitate compliance with the requirements of the GDPR, including 
committing ICC to keeping Personal Data confidential and clarifying 
that ICC's policies on use of personal data will now primarily be 
stated in a privacy notice. 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) 
affect the safeguarding of funds or securities in the custody or 
control of ICC or for which it is responsible. Waiver of the five-day 
pre-filing requirement and the 30-day operative delay would allow ICC 
to implement the proposed rule change by the effective date of the GDPR 
and therefore comply with EU law. Therefore, the Commission believes 
that waiving the five-day pre-filing requirement and 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.\15\
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    \13\ 17 CFR 240.19b-4(f)(6).
    \14\ 17 CFR 240.19b-4(f)(6)(iii).
    \15\ 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 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-ICC-2018-005 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-ICC-2018-005. 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 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 Credit and on ICE 
Clear Credit's website at https://www.theice.com/clear-credit/regulation.
    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-ICC-2018-005 and should be 
submitted on or before July 3, 2018.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12551 Filed 6-11-18; 8:45 am]
 BILLING CODE 8011-01-P