Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes To Implement Requirements of Commodity Futures Trading Commission Rule 39.13(g)(8)(ii), 77159-77160 [2012-31253]
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Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68523; File No. SR–ICEEU–
2012–21]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Changes To Implement
Requirements of Commodity Futures
Trading Commission Rule
39.13(g)(8)(ii)
December 21, 2012.
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 December
19, 2012, ICE Clear Europe Limited
(‘‘ICE Clear Europe’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I, II and III
below, which items have been prepared
primarily by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act,3 and
Rule 19b–4(f)(4)(ii) 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.
mstockstill on DSK4VPTVN1PROD with
I. Self-Regulatory Organization’s
Statement of Terms of Substance of the
Proposed Rule Change
ICE Clear Europe proposes to
implement Commodity Futures Trading
Commission (‘‘CFTC’) Rule
39.13(g)(8)(ii), which requires that FCM
Clearing Members collect customer
initial margin for customer non-hedge
positions at a level that is greater than
100% of ICE Clear Europe’s initial
margin requirements. As a result, ICE
Clear Europe has established a
minimum percentage of 110% in respect
of non-hedge customers for energy
futures. All capitalized terms not
defined herein are defined in the ICE
Clear Europe Rules.
II. Self-Regulatory Organization’s
Statement of 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(4)(ii).
21:28 Dec 28, 2012
A. Self-Regulatory Organization’s
Statement of Purpose of, and Statutory
Basis for, the Proposed Rule Change
The purpose of the change is to
implement the requirements of CFTC
Rule 39.13(g)(8)(ii). ICE Clear Europe
has informed FCM Clearing Members of
the new requirements of CFTC Rule
39.13(g)(8)(ii). This rule requires that
FCM Clearing Members collect customer
initial margin for customer non-hedge
positions at a level that is greater than
100% of ICE Clear Europe’s initial
margin requirements. Accordingly, ICE
Clear Europe has established a
minimum percentage of 110% in respect
of non-hedge customers for energy
futures. As a result, as of October 4,
2012, FCM Clearing Members must
collect an amount of no less than 110%
of ICE Clear Europe’s initial margin
requirement in respect of those
customers.
Section 17A(b)(3)(F) of the Act 6
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. ICE Clear
Europe believes that the proposed
change to margin requirements
applicable to FCM Clearing Members is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICE Clear
Europe, in particular, with Section
17A(b)(3)(F),7 because improved
margining facilitates the prompt and
accurate clearance and settlement and
improves the safety and soundness of
the clearing house.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
ICE Clear Europe does not believe the
proposed change would have any
impact, or impose any burden, on
competition.
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 change have not been solicited
or received. ICE Clear Europe will notify
the Commission of any written
comments received by ICE Clear Europe.
5 The Commission has modified the text of the
summaries prepared by OCC.
6 15 U.S.C. 78q–1(b)(3)(F).
7 15 U.S.C. 78q–1(b)(3)(F).
2 17
VerDate Mar<15>2010
Clear Europe has prepared summaries,
set forth in sections A, B, and C below,
of the most significant aspects of such
statements.5
Jkt 229001
PO 00000
Frm 00157
Fmt 4703
Sfmt 4703
77159
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(iii) 8 of the Act and Rule
19b–4(f)(4)(ii) 9 thereunder because it
primarily affects the futures clearing
operations of the clearing agency with
respect to futures that are not security
futures, and does not significantly affect
the securities clearing operations of the
clearing agency or any related rights or
obligations of the clearing agency or
persons using such service. 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.10
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 (https://www.sec.gov/
rules/sro.shtml), or
• Send an email to rulecomments@sec.gov. Please include File
No. SR–ICEEU–2012–21 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street NE., Washington, DC,
20549–1090.
All submissions should refer to File
Number SR–ICEEU–2012–21. 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 (https://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
8 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(4)(ii).
10 15 U.S.C. 78s(b)(3)(C).
9 17
E:\FR\FM\31DEN1.SGM
31DEN1
77160
Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / Notices
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
filing also will 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/publicdocs/
regulatory_filings/ICEU_SEC_121912
_2012-21.pdf.
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–2012–21 and
should be submitted on or before
January 22, 2013.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–31253 Filed 12–28–12; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68522; File No. SR–NYSE–
2012–57]
Commission received no comment
letters on the proposal.
Section 19(b)(2) of the Act 4 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or as to which the
self-regulatory organization consents,
the Commission shall either approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether the
proposed rule change should be
disapproved. The 45th day for this filing
is December 30, 2012. The Commission
is extending this 45-day time period.
The Commission finds it appropriate
to designate a longer period within
which to take action on the proposed
rule change so that it has sufficient time
to consider this proposed rule change,
which would delete NYSE Rules 95(c)
and (d) and related Supplementary
Material, and the potential issues raised
by this proposal.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the Act,5
designates February 13, 2013 as the date
by which the Commission should either
approve or disapprove, or institute
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–NYSE–2012–57).
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2012–31240 Filed 12–28–12; 8:45 am]
BILLING CODE 8011–01–P
December 21, 2012.
mstockstill on DSK4VPTVN1PROD with
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Designation of a Longer Period for
Commission Action on Proposed Rule
Change Deleting NYSE Rules 95(c) and
(d) and Related Supplementary
Material
Self-Regulatory Organizations;
Chicago Mercantile Exchange Inc.;
Notice of Filing of Proposed Rule
Change Related to the Liquidity Factor
of CME’s CDS Margin Methodology
On October 26, 2012, New York Stock
Exchange LLC (the ‘‘Exchange’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’), pursuant
to Section 19(b)(1) of the Securities
Exchange Act of 1934 (‘‘Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to delete NYSE Rules 95(c) and
(d) and related Supplementary Material.
The proposed rule change was
published for comment in the Federal
Register on November 15, 2012.3 The
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–68529; File No. SR–CME–
2012–34]
December 21, 2012.
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 December
10, 2012, Chicago Mercantile Exchange
Inc. (‘‘CME’’) filed with the Securities
11 17
4 15
1 15
5 15
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 68185
(November 8, 2012), 77 FR 68188.
VerDate Mar<15>2010
21:28 Dec 28, 2012
Jkt 229001
U.S.C. 78s(b)(2).
U.S.C. 78s(b)(2).
6 17 CFR 200.30–3(a)(31).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b-4.
PO 00000
Frm 00158
Fmt 4703
Sfmt 4703
and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II, and
III below, which Items have been
prepared primarily by CME. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
CME proposes to make an adjustment
to one particular component of its
current CDS margin model. The text of
the proposed rule change is below.
Italicized text indicates additions;
bracketed text indicates deletions.
*
*
*
*
*
CME CDS Liquidity Margin Factor
Calculation Methodology
The Liquidity Factor will be
calculated as the sum of two
components:
(1) A concentration charge for market
exposure as a function of absolute
Spread DV01 (a portfolio sensitivity to
1% par spread shock); and
(2) A concentration charge for
portfolio basis exposure as a function of
Residual Spread DV01 (which is the
difference between the Gross Spread
DV01 and the Net Spread DV01 of the
portfolio).
CME will also establish a floor
component to the Liquidity Factor using
the current Gross Notional Function
with the following modifications: (1) the
concentration scalar will be removed;
and (2) the maximum DST would be
replaced by series-tenor specific DST
values based on the series and tenor of
the relevant HY and IG positions, as
applicable.
*
*
*
*
*
The text of the proposed change is
also available at CME’s Web site at
https://www.cmegroup.com, at the
principal office of CME, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
CME 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. CME has prepared
summaries, set forth in sections A, B,
E:\FR\FM\31DEN1.SGM
31DEN1
]]>Agencies
[Federal Register Volume 77, Number 250 (Monday, December 31, 2012)]
[Notices]
[Pages 77159-77160]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31253]
[[Page 77159]]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68523; File No. SR-ICEEU-2012-21]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Changes To
Implement Requirements of Commodity Futures Trading Commission Rule
39.13(g)(8)(ii)
December 21, 2012.
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 December 19, 2012, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I, II and III below, which
items have been prepared primarily by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to Section 19(b)(3)(A)(iii) of the
Act,\3\ and Rule 19b-4(f)(4)(ii) \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.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change
ICE Clear Europe proposes to implement Commodity Futures Trading
Commission (``CFTC') Rule 39.13(g)(8)(ii), which requires that FCM
Clearing Members collect customer initial margin for customer non-hedge
positions at a level that is greater than 100% of ICE Clear Europe's
initial margin requirements. As a result, ICE Clear Europe has
established a minimum percentage of 110% in respect of non-hedge
customers for energy futures. All capitalized terms not defined herein
are defined in the ICE Clear Europe Rules.
II. Self-Regulatory Organization's Statement of 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.\5\
---------------------------------------------------------------------------
\5\ The Commission has modified the text of the summaries
prepared by OCC.
---------------------------------------------------------------------------
A. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the change is to implement the requirements of CFTC
Rule 39.13(g)(8)(ii). ICE Clear Europe has informed FCM Clearing
Members of the new requirements of CFTC Rule 39.13(g)(8)(ii). This rule
requires that FCM Clearing Members collect customer initial margin for
customer non-hedge positions at a level that is greater than 100% of
ICE Clear Europe's initial margin requirements. Accordingly, ICE Clear
Europe has established a minimum percentage of 110% in respect of non-
hedge customers for energy futures. As a result, as of October 4, 2012,
FCM Clearing Members must collect an amount of no less than 110% of ICE
Clear Europe's initial margin requirement in respect of those
customers.
Section 17A(b)(3)(F) of the Act \6\ 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. ICE Clear Europe believes that the proposed change to
margin requirements applicable to FCM Clearing Members is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to ICE Clear Europe, in particular, with Section
17A(b)(3)(F),\7\ because improved margining facilitates the prompt and
accurate clearance and settlement and improves the safety and soundness
of the clearing house.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed change would have
any impact, or impose any burden, on competition.
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 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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\ thereunder
because it primarily affects the futures clearing operations of the
clearing agency with respect to futures that are not security futures,
and does not significantly affect the securities clearing operations of
the clearing agency or any related rights or obligations of the
clearing agency or persons using such service. 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.\10\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(4)(ii).
\10\ 15 U.S.C. 78s(b)(3)(C).
---------------------------------------------------------------------------
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 (https://www.sec.gov/rules/sro.shtml), or
Send an email to rule-comments@sec.gov. Please include
File No. SR-ICEEU-2012-21 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC, 20549-1090.
All submissions should refer to File Number SR-ICEEU-2012-21. 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 (https://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
[[Page 77160]]
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 filing also will 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/publicdocs/regulatory_filings/ICEU_SEC_121912_2012-21.pdf.
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-2012-21
and should be submitted on or before January 22, 2013.
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31253 Filed 12-28-12; 8:45 am]
BILLING CODE 8011-01-P
