Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Acceptance of Letters of Credit or Pass-Through Letters of Credit Deposits From Non-Financial Institution Energy Clearing Members, 76325-76326 [2012-31128]

Download as PDF Federal Register / Vol. 77, No. 248 / Thursday, December 27, 2012 / Notices SECURITIES AND EXCHANGE COMMISSION sections A, B, and C, below, of the most significant aspects of these statements.5 [Release No. 34–68497; File No. SR–ICEEU– 2012–12] A. Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In addition to providing clearing services for credit default swaps, ICE Clear Europe also provides clearing services for non-securities contracts in energy and emissions markets (‘‘Energy Futures Products’’). ICE Clear Europe is updating the List of Permitted Cover and Haircuts 6 to allow non-financial institution Energy Clearing Members to deposit Letters of Credit or PassThrough Letters of Credit to cover Initial/Original Margin requirements for Energy Futures Products.7 The Clearing House will accept three forms of the Letter of Credit: • Letters of Credit: May be deposited by non-financial Energy Clearing Members; • Pass-Through Letters of Credit: May be deposited by non-financial institutions that are clients of Energy Clearing Members without FCM Clearing Member status; and • Pass-Through Letters of Credit: May be deposited by non-financial institutions that are clients of Clearing Members with FCM Clearing Member status, from November 28, 2012. Both forms of Pass-Through Letters of Credit are transferrable from ICE Clear Europe to the Clearing Member making the Clearing Member the beneficiary of the proceeds at execution. The Clearing Member will be responsible for assessing the wording of the Letter of Credit and only consent to its use in case the Letter on Credit is acceptable by the Clearing Member as permitted cover and fully compliant with its regulatory requirements. ICE Clear Europe believes that the proposed change is consistent with the requirements of Section 17A of the Act and the regulations thereunder applicable to it. Section 17A(b)(3)(F) 8 of the Act requires, among other things, that the rules of a clearing agency be designed to protect investors and the public interest. ICE Clear Europe believes that allowing non-financial institutions to deposit Letters of Credit or Pass-Through Letters of Credit as permitted cover for Initial/Original Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Acceptance of Letters of Credit or Pass-Through Letters of Credit Deposits From Non-Financial Institution Energy Clearing Members December 20, 2012. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 2 thereunder, 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) 3 of the Act 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. tkelley on DSK3SPTVN1PROD with I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The purpose of the proposed rule change is to accept Letters of Credit as permitted cover for certain clearing members for cleared energy futures. As part of the update to the Permitted Cover, ICE Clear Europe will consider new requests to use Letters of Credit or Pass through Letters of Credit to meet Initial/Original Margin requirements. All capitalized terms not defined herein are defined in the ICE Clear Europe Rules. 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 and comments may be examined at the places specified in Item IV below. ICE Clear Europe has prepared summaries, set forth in 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). 2 17 VerDate Mar<15>2010 16:53 Dec 26, 2012 Jkt 229001 5 The Commission has modified the text of the summaries provided by ICE Clear Europe. 6 The updated list of Permitted Cover, along with the corresponding haircut rates, can be found at the following location: https://www.theice.com/ publicdocs/clear_europe/list-of-permittedcovers.pdf. 7 Letters of Credit and Pass-Through Letters of Credit are subject to concentration limits as described in the list of Permitted Cover. See id. 8 15 U.S.C. 78q–1(b)(3)(F). PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 76325 Margin requirements for energy futures products would help protect investors and the public interest. B. Clearing Agency’s Statement on Burden on Competition ICE Clear Europe does not believe that the proposed rule change would have any impact, or impose any burden, on competition. C. Clearing Agency’s Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others ICE Clear Europe has not solicited written comments regarding the proposed change. 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)(iii) 9 of the Act and Rule 19b–4(f)(4)(ii) 10 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.11 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 may be submitted by using the Commission’s Internet comment form (https:// www.sec.gov/rules/sro.shtml), or by sending an email to rulecomments@sec.gov. Please include File No. SR–ICEEU–2012–12 on the subject line. • Paper comments should be sent in triplicate to Elizabeth M. Murphy, Secretary, Securities and Exchange 9 15 U.S.C. 78s(b)(3)(A)(iii). CFR 240.19b–4(f)(4)(ii). 11 15 U.S.C. 78s(b)(3)(C). 10 17 E:\FR\FM\27DEN1.SGM 27DEN1 76326 Federal Register / Vol. 77, No. 248 / Thursday, December 27, 2012 / Notices Commission, 100 F Street NE., Washington, DC 20549–0609. SECURITIES AND EXCHANGE COMMISSION All submissions should refer to File Number SR–ICEEU–2012–12. To help the Commission process and review your comments more efficiently, please use only one method of submission. 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 changes that are filed with the Commission, and all written communications relating to the proposed rule changes 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 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_2012–12.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–2012–12 and should be submitted on or before January 17, 2013. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.12 Kevin M. O’Neill, Deputy Secretary. [FR Doc. 2012–31128 Filed 12–26–12; 8:45 am] tkelley on DSK3SPTVN1PROD with BILLING CODE 8011–01–P [Release No. 34–68488; File No. SR– NYSEArca–2012–14] Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Proposed Rule Change To List and Trade the Guggenheim Enhanced Total Return ETF Under NYSE Arca Equities Rule 8.600 December 20, 2012. Pursuant to Section 19(b)(1) 1 of the Securities Exchange Act of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 2 and Rule 19b–4 thereunder,3 notice is hereby given that, on December 13, 2012, NYSE Arca, Inc. (‘‘Exchange’’ or ‘‘NYSE Arca’’) 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 by the Exchange. 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 The Exchange proposes to list and trade the following under NYSE Arca Equities Rule 8.600 (‘‘Managed Fund Shares’’): Guggenheim Enhanced Total Return ETF. The text of the proposed rule change is available on the Exchange’s Web site at www.nyse.com, at the principal office of the Exchange, 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, the self-regulatory organization 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 those statements may be examined at the places specified in Item IV below. The Exchange has prepared summaries, set forth in sections A, B, and C below, of the most significant parts of such statements. 1 15 U.S.C. 78s(b)(1). U.S.C. 78a. 3 17 CFR 240.19b–4. 2 15 12 17 CFR 200.30–3(a)(12). VerDate Mar<15>2010 16:53 Dec 26, 2012 Jkt 229001 PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose The Exchange proposes to list and trade shares (‘‘Shares’’) of the Guggenheim Enhanced Total Return ETF (the ‘‘Fund’’) under NYSE Arca Equities Rule 8.600, which governs the listing and trading of Managed Fund Shares.4 The Shares will be offered by the Claymore Exchange-Traded Fund Trust 2 (the ‘‘Trust’’),5 a statutory trust organized under the laws of the State of Delaware and registered with the Commission as an open-end management investment company.6 The investment adviser for the Fund is Guggenheim Funds Investment Advisors, LLC (‘‘Adviser’’). The Bank of New York Mellon is the custodian and transfer agent for the Fund. Guggenheim Funds Distributors, LLC is the distributor for the Fund. Commentary .06 to Rule 8.600 provides that, if the investment adviser to the investment company issuing 4 A Managed Fund Share is a security that represents an interest in an investment company registered under the Investment Company Act of 1940 (15 U.S.C. 80a–1) (‘‘1940 Act’’) organized as an open-end investment company or similar entity that invests in a portfolio of securities selected by its investment adviser consistent with its investment objectives and policies. In contrast, an open-end investment company that issues Investment Company Units, listed and traded on the Exchange under NYSE Arca Equities Rule 5.2(j)(3), seeks to provide investment results that correspond generally to the price and yield performance of a specific foreign or domestic stock index, fixed income securities index or combination thereof. 5 The Trust is registered under the 1940 Act. On June 9, 2011, the Trust filed with the Commission an amendment to its registration statement on Form N–1A under the Securities Act of 1933 (15 U.S.C. 77a) (‘‘Securities Act’’) and the 1940 Act relating to the Fund (File Nos. 333–135105 and 811–21910) (the ‘‘Registration Statement’’). The description of the operation of the Trust and the Fund herein is based, in part, on the Registration Statement. In addition, the Commission has issued an order granting certain exemptive relief to the Trust under the 1940 Act. See Investment Company Act Release No. 29271 (May 18, 2010) (File No. 812–13534) (‘‘Exemptive Order’’). 6 The Commission previously approved listing and trading on the Exchange of the following actively managed funds under Rule 8.600. See Securities Exchange Act Release Nos. 57801 (May 8, 2008), 73 FR 27878 (May 14, 2008) (SR– NYSEArca–2008–31) (order approving Exchange listing and trading of twelve actively-managed funds of the WisdomTree Trust); 60981 (November 10, 2009), 74 FR 59594 (November 18, 2009) (SR– NYSEArca–2009–79) (order approving listing of five fixed income funds of the PIMCO ETF Trust); 63329 (November 17, 2010), 75 FR 71760 (November 24, 2010) (SR–NYSEArca–2010–86) (order approving listing of Peritus High Yield ETF); 64550 (May 26, 2011), 76 FR 32005 (June 2, 2011) (SR–NYSEArca– 2011–11) (order approving listing of Guggenheim Enhanced Core Bond ETF and Guggenheim Enhanced Ultra-Short Bond ETF). E:\FR\FM\27DEN1.SGM 27DEN1

Agencies

[Federal Register Volume 77, Number 248 (Thursday, December 27, 2012)]
[Notices]
[Pages 76325-76326]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31128]



[[Page 76325]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68497; File No. SR-ICEEU-2012-12]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to the Acceptance of Letters of Credit or Pass-Through Letters of 
Credit Deposits From Non-Financial Institution Energy Clearing Members

December 20, 2012.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 \2\ thereunder, 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) \3\ of the Act 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. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The purpose of the proposed rule change is to accept Letters of 
Credit as permitted cover for certain clearing members for cleared 
energy futures. As part of the update to the Permitted Cover, ICE Clear 
Europe will consider new requests to use Letters of Credit or Pass 
through Letters of Credit to meet Initial/Original Margin requirements. 
All capitalized terms not defined herein are defined in the ICE Clear 
Europe Rules.

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 and comments 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 these statements.\5\
---------------------------------------------------------------------------

    \5\ The Commission has modified the text of the summaries 
provided by ICE Clear Europe.
---------------------------------------------------------------------------

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

    In addition to providing clearing services for credit default 
swaps, ICE Clear Europe also provides clearing services for non-
securities contracts in energy and emissions markets (``Energy Futures 
Products''). ICE Clear Europe is updating the List of Permitted Cover 
and Haircuts \6\ to allow non-financial institution Energy Clearing 
Members to deposit Letters of Credit or Pass-Through Letters of Credit 
to cover Initial/Original Margin requirements for Energy Futures 
Products.\7\
---------------------------------------------------------------------------

    \6\ The updated list of Permitted Cover, along with the 
corresponding haircut rates, can be found at the following location: 
https://www.theice.com/publicdocs/clear_europe/list-of-permitted-covers.pdf.
    \7\ Letters of Credit and Pass-Through Letters of Credit are 
subject to concentration limits as described in the list of 
Permitted Cover. See id.
---------------------------------------------------------------------------

    The Clearing House will accept three forms of the Letter of Credit:
     Letters of Credit: May be deposited by non-financial 
Energy Clearing Members;
     Pass-Through Letters of Credit: May be deposited by non-
financial institutions that are clients of Energy Clearing Members 
without FCM Clearing Member status; and
     Pass-Through Letters of Credit: May be deposited by non-
financial institutions that are clients of Clearing Members with FCM 
Clearing Member status, from November 28, 2012.
    Both forms of Pass-Through Letters of Credit are transferrable from 
ICE Clear Europe to the Clearing Member making the Clearing Member the 
beneficiary of the proceeds at execution. The Clearing Member will be 
responsible for assessing the wording of the Letter of Credit and only 
consent to its use in case the Letter on Credit is acceptable by the 
Clearing Member as permitted cover and fully compliant with its 
regulatory requirements.
    ICE Clear Europe believes that the proposed change is consistent 
with the requirements of Section 17A of the Act and the regulations 
thereunder applicable to it. Section 17A(b)(3)(F) \8\ of the Act 
requires, among other things, that the rules of a clearing agency be 
designed to protect investors and the public interest. ICE Clear Europe 
believes that allowing non-financial institutions to deposit Letters of 
Credit or Pass-Through Letters of Credit as permitted cover for 
Initial/Original Margin requirements for energy futures products would 
help protect investors and the public interest.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe that the proposed rule change 
would have any impact, or impose any burden, on competition.

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

    ICE Clear Europe has not solicited written comments regarding the 
proposed change. 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)(iii) \9\ of the Act and Rule 19b-4(f)(4)(ii) 
\10\ 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.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \10\ 17 CFR 240.19b-4(f)(4)(ii).
    \11\ 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 may be submitted by using the 
Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml), or by sending an email to rule-comments@sec.gov. Please 
include File No. SR-ICEEU-2012-12 on the subject line.
     Paper comments should be sent in triplicate to Elizabeth 
M. Murphy, Secretary, Securities and Exchange

[[Page 76326]]

Commission, 100 F Street NE., Washington, DC 20549-0609.

All submissions should refer to File Number SR-ICEEU-2012-12. To help 
the Commission process and review your comments more efficiently, 
please use only one method of submission. 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 changes that 
are filed with the Commission, and all written communications relating 
to the proposed rule changes 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 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_2012-12.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-2012-12 
and should be submitted on or before January 17, 2013.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31128 Filed 12-26-12; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.