Self-Regulatory Organizations; ICE Clear Europe Limited; Order Approving Proposed Rule Change Regarding New Permitted Cover, 18098-18099 [2014-07036]
Download as PDF
<![CDATA[
18098
Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / Notices
should be submitted on or before April
21, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07037 Filed 3–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71790; File No. SR–ICEEU–
2014–01]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Order Approving
Proposed Rule Change Regarding New
Permitted Cover
March 25, 2014.
I. Introduction
On February 4, 2014, ICE Clear
Europe Limited (‘‘ICE Clear Europe’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–ICEEU–2014–
01 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder.2
The proposed rule change was
published for comment in the Federal
Register on February 18, 2014.3 The
Commission received no comment
letters regarding the proposed changes.
For the reasons discussed below, the
Commission is granting approval of the
proposed rule change.
tkelley on DSK3SPTVN1PROD with NOTICES
II. Description
ICE Clear Europe is proposing to
permit Clearing Members of ICE Clear
Europe to post certain Japanese
Government Bonds (‘‘JGBs’’), Japanese
Treasury Bills (‘‘JTBs’’) and Japanese
Treasury Discount Bills (‘‘JTDBs’’
together with JGBs and JTBs, the ‘‘New
Permitted Cover’’) to ICE Clear Europe
in order to meet initial margin, original
margin and certain other margin
requirements, including delivery margin
requirements. The New Permitted Cover
will not be accepted to satisfy variation
margin requirements or guaranty fund
requirements.
ICE Clear Europe has stated that the
New Permitted Cover will provide its
Clearing Members with a greater range
of high-quality collateral that can be
posted to ICE Clear Europe.
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–71518
(February 11, 2014), 79 FR 9304 (February 18, 2014)
(SR–ICEEU–2014–01).
1 15
VerDate Mar<15>2010
18:10 Mar 28, 2014
Jkt 232001
Furthermore, ICE Clear Europe has
stated that (1) the New Permitted Cover
is of minimal credit risk comparable to
that of other sovereign debt currently
accepted by ICE Clear Europe as
permitted cover for margin obligations,
and (2) the New Permitted Cover has
demonstrated low volatility in stressed
and normal market conditions.
ICE Clear Europe has established
initial valuation haircut levels and
concentration limitations for the New
Permitted Cover, and proposes to review
and modify such haircuts and
limitations from time to time in
accordance with the Rules and
procedures.
The New Permitted Cover may only
constitute up to 10% of a Clearing
Member’s total initial and original
margin requirement, up to a maximum
amount of JPY 100 billion. The New
Permitted Cover will be subject to a
valuation haircut of 3%, except that
JGBs with a maturity of more than
eleven years will be subject to a
valuation haircut of 5%. The
concentration limitations apply on an
aggregate basis across all product
categories. Upon a Clearing Member’s
use of New Permitted Cover to cover a
margin requirement denominated in a
different currency, ICE Clear Europe has
stated than an additional haircut will
apply, in accordance with existing rules,
in order to cover exchange rate risk.
ICE Clear Europe has also stated that
it has commenced accepting the New
Permitted Cover as of June 28, 2013.
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if the Commission finds
that such proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to such selfregulatory organization. Section
17A(b)(3)(F) of the Act 5 requires, among
other things, that the rules of a clearing
agency are designed to promote the
prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivative
agreements, contracts, and transactions,
to assure the safeguarding of securities
and funds which are in the custody or
control of the clearing agency and for
which it is responsible and, in general,
to protect investors and the public
interest.
The Commission finds that the
proposed rule change is consistent with
4 15
5 15
PO 00000
U.S.C. 78s(b)(2)(C).
U.S.C. 78q–1(b)(3)(F).
Frm 00095
Fmt 4703
Sfmt 4703
the requirements of Section 17A of the
Act,6 as Clearing Members of ICE Clear
Europe will have access to a greater
range of collateral that ICE Clear Europe
has determined to be of high quality to
satisfy certain margin requirements, and
the New Permitted Cover will be subject
to appropriate valuation haircuts and
concentration limits, which will be
reviewed and modified periodically by
ICE Clear Europe in accordance with its
Rules and procedures. The proposed
rule changes will thereby (1) promote
the prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivatives
agreements, contracts, and transactions;
and (2) help to protect investors and the
public interest, consistent with the
requirements of Section 17A(b)(3)(F) of
the Act.7
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
requirements of Section 17A of the Act 8
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
ICEEU–2014–01) be, and hereby is,
approved.10
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–07035 Filed 3–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71791; File No. SR–ICEEU–
2014–02]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Order Approving
Proposed Rule Change Regarding New
Permitted Cover
March 25, 2014.
I. Introduction
On February 4, 2014, ICE Clear
Europe Limited (‘‘ICE Clear Europe’’)
6 15
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
8 15 U.S.C. 78q–1.
9 15 U.S.C. 78s(b)(2).
10 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
11 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
7 15
E:\FR\FM\31MRN1.SGM
31MRN1
Federal Register / Vol. 79, No. 61 / Monday, March 31, 2014 / Notices
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–ICEEU–2014–
02 pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder.2
The proposed rule change was
published for comment in the Federal
Register on February 18, 2014.3 The
Commission received no comment
letters regarding the proposed changes.
For the reasons discussed below, the
Commission is granting approval of the
proposed rule change.
tkelley on DSK3SPTVN1PROD with NOTICES
II. Description
ICE Clear Europe is proposing to
permit Clearing Members of ICE Clear
Europe to post certain KfW Euro
Benchmark Bonds (‘‘KfWs’’) and
European Investment Bank Euro Area
Reference Notes (‘‘EIBs’’, together with
KfWs, the ‘‘New Permitted Cover’’) to
ICE Clear Europe in order to meet initial
margin, original margin and certain
other margin requirements, including
delivery margin requirements. The New
Permitted Cover will not be accepted to
satisfy variation margin requirements or
guaranty fund requirements.
ICE Clear Europe has stated that the
New Permitted Cover will provide its
Clearing Members with a greater range
of high-quality collateral that can be
posted to ICE Clear Europe.
Furthermore, ICE Clear Europe has
stated that (1) the New Permitted Cover
is of minimal credit risk comparable to
that of other sovereign debt currently
accepted by ICE Clear Europe as
permitted cover for margin obligations,
and (2) the New Permitted Cover has
demonstrated low volatility in stressed
and normal market conditions.
ICE Clear Europe has established
initial valuation haircut levels and
concentration limitations for the New
Permitted Cover, and proposes to review
and modify such haircuts and
limitations from time to time in
accordance with the Rules and
procedures.
The New Permitted Cover may only
constitute up to 25% of a Clearing
Member’s total initial and original
margin requirement, up to a maximum
amount of EUR 30 million. The New
Permitted Cover will be subject to a
valuation haircut of 3%, except that
New Permitted Cover with a maturity of
more than eleven years will be subject
to a valuation haircut of 5%. The
concentration limitations apply on an
aggregate basis across all product
categories. Upon a Clearing Member’s
use of New Permitted Cover to cover a
margin requirement denominated in a
different currency, ICE Clear Europe has
stated than an additional haircut will
apply, in accordance with existing rules,
in order to cover exchange rate risk.
requirements of Section 17A of the Act 8
and the rules and regulations
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,9 that the
proposed rule change (File No. SR–
ICEEU–2014–02) be, and hereby is,
approved.10
III. Discussion and Commission
Findings
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Kevin M. O’Neill,
Deputy Secretary.
Section 19(b)(2)(C) of the Act 4 directs
the Commission to approve a proposed
rule change of a self-regulatory
organization if the Commission finds
that such proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to such selfregulatory organization. Section
17A(b)(3)(F) of the Act 5 requires, among
other things, that the rules of a clearing
agency are designed to promote the
prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivative
agreements, contracts, and transactions,
to assure the safeguarding of securities
and funds which are in the custody or
control of the clearing agency and for
which it is responsible and, in general,
to protect investors and the public
interest.
The Commission finds that the
proposed rule change is consistent with
the requirements of Section 17A of the
Act,6 as Clearing Members of ICE Clear
Europe will have access to a greater
range of collateral that ICE Clear Europe
has determined to be of high quality to
satisfy certain margin requirements, and
the New Permitted Cover will be subject
to appropriate valuation haircuts and
concentration limits, which will be
reviewed and modified periodically by
ICE Clear Europe in accordance with its
Rules and procedures. The proposed
rule changes will thereby (1) promote
the prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivatives
agreements, contracts, and transactions;
and (2) help to protect investors and the
public interest, consistent with the
requirements of Section 17A(b)(3)(F) of
the Act.7
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposal is
consistent with the requirements of the
Act and in particular with the
2 17
2 17
CFR 240.19b–4.
3 Securities Exchange Act Release No. 34–71519
(February 11, 2014), 79 FR 9296 (February 18, 2014)
(SR–ICEEU–2014–02).
4 15 U.S.C. 78s(b)(2)(C).
VerDate Mar<15>2010
18:10 Mar 28, 2014
Jkt 232001
18099
CFR 240.19b–4.
Exchange Act Release No. 34–71519
(February 11, 2014), 79 FR 9296 (February 18, 2014)
(SR–ICEEU–2014–02).
4 15 U.S.C. 78s(b)(2)(C).
5 15 U.S.C. 78q–1(b)(3)(F).
3 Securities
PO 00000
Frm 00096
Fmt 4703
Sfmt 4703
[FR Doc. 2014–07036 Filed 3–28–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–71796; File No. SR–BYX–
2014–003]
Self-Regulatory Organizations; BATS
Y-Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change to the Clearly Erroneous
Execution Rule for BATS Y-Exchange,
Inc.
March 25, 2014.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 18,
2014, BATS Y-Exchange, Inc. (the
‘‘Exchange’’ or ‘‘BYX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange has
designated this proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(6)(iii)
thereunder,4 which renders it effective
upon filing with the Commission. 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 the Substance
of the Proposed Rule Change
The Exchange filed a proposal to
extend a pilot program related to Rule
11.17, entitled ‘‘Clearly Erroneous
Executions.’’
8 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
10 In approving the proposed rule change, the
Commission considered the proposal’s impact on
efficiency, competition and capital formation. 15
U.S.C. 78c(f).
11 17 CFR 200.30–3(a)(12).
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)(iii).
9 15
E:\FR\FM\31MRN1.SGM
31MRN1
]]>Agencies
[Federal Register Volume 79, Number 61 (Monday, March 31, 2014)]
[Notices]
[Pages 18098-18099]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07036]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-71791; File No. SR-ICEEU-2014-02]
Self-Regulatory Organizations; ICE Clear Europe Limited; Order
Approving Proposed Rule Change Regarding New Permitted Cover
March 25, 2014.
I. Introduction
On February 4, 2014, ICE Clear Europe Limited (``ICE Clear
Europe'')
[[Page 18099]]
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-ICEEU-2014-02 pursuant to Section 19(b)(1) of
the Securities Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4
thereunder.\2\ The proposed rule change was published for comment in
the Federal Register on February 18, 2014.\3\ The Commission received
no comment letters regarding the proposed changes. For the reasons
discussed below, the Commission is granting approval of the proposed
rule change.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 34-71519 (February 11,
2014), 79 FR 9296 (February 18, 2014) (SR-ICEEU-2014-02).
---------------------------------------------------------------------------
II. Description
ICE Clear Europe is proposing to permit Clearing Members of ICE
Clear Europe to post certain KfW Euro Benchmark Bonds (``KfWs'') and
European Investment Bank Euro Area Reference Notes (``EIBs'', together
with KfWs, the ``New Permitted Cover'') to ICE Clear Europe in order to
meet initial margin, original margin and certain other margin
requirements, including delivery margin requirements. The New Permitted
Cover will not be accepted to satisfy variation margin requirements or
guaranty fund requirements.
ICE Clear Europe has stated that the New Permitted Cover will
provide its Clearing Members with a greater range of high-quality
collateral that can be posted to ICE Clear Europe. Furthermore, ICE
Clear Europe has stated that (1) the New Permitted Cover is of minimal
credit risk comparable to that of other sovereign debt currently
accepted by ICE Clear Europe as permitted cover for margin obligations,
and (2) the New Permitted Cover has demonstrated low volatility in
stressed and normal market conditions.
ICE Clear Europe has established initial valuation haircut levels
and concentration limitations for the New Permitted Cover, and proposes
to review and modify such haircuts and limitations from time to time in
accordance with the Rules and procedures.
The New Permitted Cover may only constitute up to 25% of a Clearing
Member's total initial and original margin requirement, up to a maximum
amount of EUR 30 million. The New Permitted Cover will be subject to a
valuation haircut of 3%, except that New Permitted Cover with a
maturity of more than eleven years will be subject to a valuation
haircut of 5%. The concentration limitations apply on an aggregate
basis across all product categories. Upon a Clearing Member's use of
New Permitted Cover to cover a margin requirement denominated in a
different currency, ICE Clear Europe has stated than an additional
haircut will apply, in accordance with existing rules, in order to
cover exchange rate risk.
III. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act \4\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if the
Commission finds that such proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to such self-regulatory organization. Section 17A(b)(3)(F)
of the Act \5\ requires, among other things, that the rules of a
clearing agency are designed to promote the prompt and accurate
clearance and settlement of securities transactions and, to the extent
applicable, derivative agreements, contracts, and transactions, to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency and for which it is
responsible and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78s(b)(2)(C).
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The Commission finds that the proposed rule change is consistent
with the requirements of Section 17A of the Act,\6\ as Clearing Members
of ICE Clear Europe will have access to a greater range of collateral
that ICE Clear Europe has determined to be of high quality to satisfy
certain margin requirements, and the New Permitted Cover will be
subject to appropriate valuation haircuts and concentration limits,
which will be reviewed and modified periodically by ICE Clear Europe in
accordance with its Rules and procedures. The proposed rule changes
will thereby (1) promote the prompt and accurate clearance and
settlement of securities transactions and, to the extent applicable,
derivatives agreements, contracts, and transactions; and (2) help to
protect investors and the public interest, consistent with the
requirements of Section 17A(b)(3)(F) of the Act.\7\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
\7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
IV. Conclusion
On the basis of the foregoing, the Commission finds that the
proposal is consistent with the requirements of the Act and in
particular with the requirements of Section 17A of the Act \8\ and the
rules and regulations thereunder.
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\9\ that the proposed rule change (File No. SR-ICEEU-2014-02) be,
and hereby is, approved.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2).
\10\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
\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. 2014-07036 Filed 3-28-14; 8:45 am]
BILLING CODE 8011-01-P
