Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change Related to List of Permitted Cover, 35823-35825 [2014-14658]
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Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Notices
acquired company purchased by an
acquiring company if: (i) The acquired
company and acquiring company are
part of the same group of investment
companies; (ii) the acquiring company
holds only securities of acquired
companies that are part of the same
group of investment companies,
government securities, and short-term
paper; (iii) the aggregate sales loads and
distribution-related fees of the acquiring
company and the acquired company are
not excessive under rules adopted
pursuant to section 22(b) or section
22(c) of the Act by a securities
association registered under section 15A
of the Exchange Act or by the
Commission; and (iv) the acquired
company has a policy that prohibits it
from acquiring securities of registered
open-end investment companies or
registered unit investment trusts in
reliance on section 12(d)(1)(F) or (G) of
the Act.
3. Rule 12d1–2 under the Act permits
a registered open-end investment
company or a registered unit investment
trust that relies on section 12(d)(1)(G) of
the Act to acquire, in addition to
securities issued by another registered
investment company in the same group
of investment companies, government
securities, and short-term paper: (i)
Securities issued by an investment
company that is not in the same group
of investment companies, when the
acquisition is in reliance on section
12(d)(1)(A) or 12(d)(1)(F) of the Act; (ii)
securities (other than securities issued
by an investment company); and (iii)
securities issued by a money market
fund, when the investment is in reliance
on rule 12d1–1 under the Act. For the
purposes of rule 12d1–2, ‘‘securities’’
means any security as defined in section
2(a)(36) of the Act.
4. Section 6(c) of the Act provides that
the Commission may exempt any
person, security, or transaction from any
provision of the Act, or from any rule
under the Act, if such exemption is
necessary or appropriate in the public
interest and consistent with the
protection of investors and the purposes
fairly intended by the policies and
provisions of the Act. Applicants submit
that their request for relief meets this
standard.
5. Applicants request an order under
section 6(c) of the Act for an exemption
from rule 12d1–2(a) to allow the Funds
to invest in Other Investments while
investing in Underlying Funds.
Applicants state that the Funds will
comply with rule 12d1–2 under the Act,
but for the fact that the Funds may
invest a portion of their assets in Other
Investments. Applicants assert that
permitting the Funds to invest in Other
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Investments as described in the
application would not raise any of the
concerns that the requirements of
section 12(d)(1) were designed to
address.
Applicants’ Condition
Applicants agree that any order
granting the requested relief will be
subject to the following condition:
Applicants will comply with all
provisions of rule 12d1–2 under the Act,
except for paragraph (a)(2) to the extent
that it restricts any Fund from investing
in Other Investments as described in the
application.
For the Commission, by the Division of
Investment Management, under delegated
authority.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14659 Filed 6–23–14; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meeting; Notice
Notice is hereby given, pursuant to
the provisions of the Government in the
Sunshine Act, Public Law 94–409, that
the Securities and Exchange
Commission will hold a Closed Meeting
on Thursday, June 26, 2014 at 2:00 p.m.
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the Closed Meeting. Certain
staff members who have an interest in
the matters also may be present.
The General Counsel of the
Commission, or her designee, has
certified that, in her opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (7), 9(B) and (10)
and 17 CFR 200.402(a)(3), (5), (7), 9(ii)
and (10), permit consideration of the
scheduled matter at the Closed Meeting.
Commissioner Piwowar, as duty
officer, voted to consider the items
listed for the Closed Meeting in closed
session.
The subject matter of the Closed
Meeting will be:
Settlement of injunctive actions;
Institution and settlement of
administrative proceedings;
Adjudicatory matters; and
Other matters relating to enforcement
proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting items.
For further information and to
ascertain what, if any, matters have been
added, deleted or postponed, please
contact the Office of the Secretary at
(202) 551–5400.
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Dated: June 19, 2014.
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14772 Filed 6–20–14; 11:15 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72421; File No. SR–ICEEU–
2014–07]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change Related to
List of Permitted Cover
June 18, 2014.
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 June 5,
2014, 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 primarily
prepared by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to
Section 19(b)(3)(A) 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.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The principal purpose of the change
is to limit the use of non-USD collateral
for original margin requirements by
FCM/BD Clearing Members in
connection with customer transactions
in the F&O product category.
II. Self-Regulatory Organization’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 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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(ii).
2 17
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Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Notices
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A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
The purpose of the rule change is to
limit the use of non-USD collateral for
original margin requirements by FCM/
BD Clearing Members in connection
with customer transactions in the F&O
product category, in order to address
certain U.S. and E.U. regulatory
requirements. Specifically, following
implementation of this change, ICE
Clear Europe will no longer accept cash
or non-cash collateral denominated in
currencies other than U.S. dollars to
meet original margin requirements for
the DCM Customer Account of FCM/BD
Clearing Members (also known as the
‘‘W’’ account or ‘‘Section 4d(a)
account’’), which is subject to the
segregation requirements of Section
4d(a) and (b) of the Commodity
Exchange Act and the Commodity
Futures Trading Commission’s
regulations thereunder.
In addition, in connection with this
change, FCM/BD Clearing Members will
be required to withdraw non-USD
variation margin balances credited to
the Section 4d(a) account on a daily
basis and cannot use such balances to
cover original margin requirements in
that account. (On U.S. holidays, margin
calls in respect of the Section 4d(a)
account will be made in a non-USD
currency, but non-USD cash balances
must be replaced with USD cash or
assets on the following business day.)
Various operational changes are
required to be made to implement these
requirements.
FCM/BD Clearing Members may
continue to use eligible non-USD cash
and assets to cover proprietary account
margin requirements and margin
requirements relating to the Non-DCM/
Swap Customer Account (also known as
the customer secured account or ‘‘Rule
30.7’’ account). The changes described
herein will not apply to Clearing
Members other than FCM/BD Clearing
Members.
ICE Clear Europe proposes to
implement the changes on June 10,
2014, subject to completion of
regulatory approvals.
ICE Clear Europe is adopting these
changes in order to comply with a
combination of requirements under the
Commodity Exchange Act and rules
thereunder and E.U. regulatory
requirements which, when
implemented, will make it impractical
for ICE Clear Europe to hold and invest
non-USD original margin balances in
the Section 4d(a) account.
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ICE Clear Europe believes that the
changes described herein are consistent
with the requirements of Section 17A of
the Act 5 and the regulations thereunder
applicable to it, including the standards
under Rule 17Ad–22,6 and are
consistent with the prompt and accurate
clearance of 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 ICE Clear
Europe or for which it is responsible
and the protection of investors and the
public interest, within the meaning of
Section 17A(b)(3)(F) of the Act.7 ICE
Clear Europe believes that limiting
original margin for the Section 4d(a)
account to USD denominated assets will
not adversely affect ICE Clear Europe’s
financial resources to support clearing
of contracts in such account. In
particular, ICE Clear Europe is not
changing its margin methodology in
respect of such account, and does not
believe that the change in permitted
original margin currency will affect the
overall value of its financial resources.
ICE Clear Europe is also not changing
the size or composition of its F&O
Guaranty Fund.
Similarly, ICE Clear Europe does not
believe that the change in permitted
original margin currency for the Section
4d(a) account will adversely affect its
ability to manage the risks of positions
in that account. ICE Clear Europe is not
altering its risk management policies in
connection with this change, and
believes that it will be able to manage
any incremental currency risk that may
arise as a result of the margin change in
accordance with its existing risk
management policies.
For the reasons noted above, ICE Clear
Europe believes that the proposed rule
changes are consistent with the
requirements of Section 17A of the Act
and regulations thereunder applicable to
it.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
ICE Clear Europe does not believe the
proposed changes to the rules would
have any impact, or impose any burden,
on competition not necessary or
appropriate in furtherance of the Act.
ICE Clear Europe recognizes that the
change may impose costs on certain
FCM/BD Clearing Members, or their
customers, that were previously
providing original margin for the
Section 4d(a) account in the form of
U.S.C. 78q–1.
CFR 240.17Ad–22.
7 15 U.S.C. 78q–1(b)(3)(F).
non-USD assets and will now have to
provide USD-denominated assets.
However, in light of the amounts
involved, ICE Clear Europe does not
believe the change will significantly
burden clearing members or their
customers, and further believes that the
change is appropriate in light of the
regulatory constraints on holding and
investment of non-USD original margin
for such account discussed above.
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 changes to the rules 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 upon filing pursuant to Section
19(b)(3)(A) 8 of the Act and Rule 19b–
4(f)(4)(ii) 9 thereunder because it effects
a change in an existing service of a
registered clearing agency that primarily
affects the clearing operations of the
clearing agency with respect to products
that are not securities, including futures
that are not security futures, swaps that
are not security-based swaps or mixed
swaps, and forwards that are not
security forwards, and does not
significantly affect any securities
clearing operations of the clearing
agency or any rights or obligations of the
clearing agency with respect to
securities clearing or persons using such
securities-clearing 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.
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:
5 15
6 17
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8 15
9 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
24JNN1
Federal Register / Vol. 79, No. 121 / Tuesday, June 24, 2014 / Notices
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
Number SR–ICEEU–2014–07 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.
mstockstill on DSK4VPTVN1PROD with NOTICES
All submissions should refer to File
Number SR–ICEEU–2014–07. 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
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
filings will also 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/notices/
Notices.shtml?regulatoryFilings.
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–2014–07 and
should be submitted on or before July
15, 2014.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2014–14658 Filed 6–23–14; 8:45 am]
BILLING CODE 8011–01–P
10 17
CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–72426; File No. SR–
NASDAQ–2014–035]
Self-Regulatory Organizations; The
NASDAQ Stock Market LLC; Notice of
Filing of Amendment No. 1 and Order
Granting Accelerated Approval of a
Proposed Rule Change, as Modified by
Amendment No. 1, To List and Trade
Shares of the AdvisorShares Sunrise
Global Multi-Strategy ETF of
AdvisorShares Trust
June 18, 2014.
I. Introduction
On April 22, 2014, The NASDAQ
Stock Market LLC (‘‘Nasdaq’’ or the
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to list and trade the shares
(‘‘Shares’’) of the AdvisorShares Sunrise
Global Multi-Strategy ETF (‘‘Fund’’)
under Nasdaq Rule 5735. The proposed
rule change was published for comment
in the Federal Register on May 7, 2014.3
The Commission received no comments
on the proposal. On June 5, 2014,
Nasdaq filed Amendment No. 1 to the
proposal.4 The Commission is
publishing this notice to solicit
comments on Amendment No. 1 from
interested persons and is approving the
proposed rule change, as modified by
Amendment No. 1, on an accelerated
basis.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 72077
(May 1, 2014), 79 FR 26283 (May 7, 2014)
(‘‘Notice’’).
4 In Amendment No. 1, Nasdaq amended the
proposed rule change to: (1) Provide that over-thecounter options and structured notes could be
among the Fund’s other investments, rather than
among its primary investments; (2) correct
statements regarding the availability of quotation
and last-sale information for underlying exchange
traded equities, options, and futures; and (3)
supplement the information disclosed about the
Fund’s portfolio holdings, stating: On a daily basis,
the Fund will disclose on its Web site the following
information regarding each portfolio holding, as
applicable to the type of holding: Ticker symbol,
CUSIP number or other identifier, if any; a
description of the holding (including the type of
holding); the identity of the security or other asset
or instrument underlying the holding, if any; for
options, the option strike price; quantity held (as
measured by, for example, par value, notional value
or number of shares, contracts or units); maturity
date, if any; coupon rate, if any; effective date, if
any; market value of the holding; and the
percentage weighting of the holding in the Fund’s
portfolio.
2 17
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35825
II. Description of the Proposed Rule
Change
The Exchange proposes to list and
trade the Shares under Nasdaq Rule
5735, which governs the listing and
trading of Managed Fund Shares on the
Exchange. The Shares will be offered by
AdvisorShares Trust (‘‘Trust’’). The
Trust is registered with the Commission
as an investment company.5 The Fund
is a series of the Trust.
AdvisorShares Investments, LLC will
be the investment adviser (‘‘Adviser’’) to
the Fund. Sunrise Capital Partners LLC
will be the investment sub-adviser
(‘‘Sub-Adviser’’) to the Fund. Foreside
Fund Services, LLC will be the principal
underwriter and distributor of the
Fund’s Shares. The Bank of New York
Mellon will act as the administrator,
accounting agent, custodian, and
transfer agent to the Fund.
The Exchange represents that neither
the Adviser nor the Sub-Adviser is a
broker-dealer or affiliated with a brokerdealer.6 The Exchange also represents
that the Shares will be subject to Nasdaq
Rule 5735, which sets forth the initial
and continued listing criteria applicable
to Managed Fund Shares 7 and that for
initial and continued listing, the Fund
must be in compliance with Rule 10A–
3 under the Act.8 The Exchange has
made the following representations and
statements describing the Fund and its
investment strategy, including portfolio
holdings and investment restrictions.9
5 The Trust has filed a registration statement on
Form N–1A (‘‘Registration Statement’’) with the
Commission. See Registration Statement on Form
N–1A for the Trust filed on October 9, 2013 (File
Nos. 333–157876 and 811–22110). 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. 28822
(July 20, 2009) (File No. 812–13677).
6 See Notice supra note 3, 79 FR at 26284. The
Exchange states that in the event (a) the Adviser or
the Sub-Adviser becomes newly affiliated with a
broker-dealer or registers as a broker-dealer, or (b)
any new adviser or sub-adviser is a registered
broker-dealer or becomes affiliated with a brokerdealer, it will implement a fire wall with respect to
its relevant personnel and/or such broker-dealer
affiliate, if applicable, regarding access to
information concerning the composition and/or
changes to the portfolio and will be subject to
procedures designed to prevent the use and
dissemination of material non-public information
regarding such portfolio. See id.
7 See id. at 26287.
8 See 17 CFR 240.10A–3. See also Notice, supra
note 3 at 26287.
9 Additional information regarding the Trust, the
Fund, and the Shares, investment strategies,
investment restrictions, risks, net asset value
(‘‘NAV’’) calculation, creation and redemption
procedures, fees, portfolio holdings, disclosure
policies, distributions, and taxes, among other
information, is included in the Notice and the
Registration Statement, as applicable. See Notice
and Registration Statement, supra notes 3 and 5,
respectively.
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]]>Agencies
[Federal Register Volume 79, Number 121 (Tuesday, June 24, 2014)]
[Notices]
[Pages 35823-35825]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14658]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-72421; File No. SR-ICEEU-2014-07]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change Related to List of Permitted Cover
June 18, 2014.
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 June 5, 2014, 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 primarily prepared by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to Section 19(b)(3)(A) 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).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The principal purpose of the change is to limit the use of non-USD
collateral for original margin requirements by FCM/BD Clearing Members
in connection with customer transactions in the F&O product category.
II. Self-Regulatory Organization'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 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.
[[Page 35824]]
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the rule change is to limit the use of non-USD
collateral for original margin requirements by FCM/BD Clearing Members
in connection with customer transactions in the F&O product category,
in order to address certain U.S. and E.U. regulatory requirements.
Specifically, following implementation of this change, ICE Clear Europe
will no longer accept cash or non-cash collateral denominated in
currencies other than U.S. dollars to meet original margin requirements
for the DCM Customer Account of FCM/BD Clearing Members (also known as
the ``W'' account or ``Section 4d(a) account''), which is subject to
the segregation requirements of Section 4d(a) and (b) of the Commodity
Exchange Act and the Commodity Futures Trading Commission's regulations
thereunder.
In addition, in connection with this change, FCM/BD Clearing
Members will be required to withdraw non-USD variation margin balances
credited to the Section 4d(a) account on a daily basis and cannot use
such balances to cover original margin requirements in that account.
(On U.S. holidays, margin calls in respect of the Section 4d(a) account
will be made in a non-USD currency, but non-USD cash balances must be
replaced with USD cash or assets on the following business day.)
Various operational changes are required to be made to implement these
requirements.
FCM/BD Clearing Members may continue to use eligible non-USD cash
and assets to cover proprietary account margin requirements and margin
requirements relating to the Non-DCM/Swap Customer Account (also known
as the customer secured account or ``Rule 30.7'' account). The changes
described herein will not apply to Clearing Members other than FCM/BD
Clearing Members.
ICE Clear Europe proposes to implement the changes on June 10,
2014, subject to completion of regulatory approvals.
ICE Clear Europe is adopting these changes in order to comply with
a combination of requirements under the Commodity Exchange Act and
rules thereunder and E.U. regulatory requirements which, when
implemented, will make it impractical for ICE Clear Europe to hold and
invest non-USD original margin balances in the Section 4d(a) account.
ICE Clear Europe believes that the changes described herein are
consistent with the requirements of Section 17A of the Act \5\ and the
regulations thereunder applicable to it, including the standards under
Rule 17Ad-22,\6\ and are consistent with the prompt and accurate
clearance of 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
ICE Clear Europe or for which it is responsible and the protection of
investors and the public interest, within the meaning of Section
17A(b)(3)(F) of the Act.\7\ ICE Clear Europe believes that limiting
original margin for the Section 4d(a) account to USD denominated assets
will not adversely affect ICE Clear Europe's financial resources to
support clearing of contracts in such account. In particular, ICE Clear
Europe is not changing its margin methodology in respect of such
account, and does not believe that the change in permitted original
margin currency will affect the overall value of its financial
resources. ICE Clear Europe is also not changing the size or
composition of its F&O Guaranty Fund.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
\6\ 17 CFR 240.17Ad-22.
\7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Similarly, ICE Clear Europe does not believe that the change in
permitted original margin currency for the Section 4d(a) account will
adversely affect its ability to manage the risks of positions in that
account. ICE Clear Europe is not altering its risk management policies
in connection with this change, and believes that it will be able to
manage any incremental currency risk that may arise as a result of the
margin change in accordance with its existing risk management policies.
For the reasons noted above, ICE Clear Europe believes that the
proposed rule changes are consistent with the requirements of Section
17A of the Act and regulations thereunder applicable to it.
B. Self-Regulatory Organization's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed changes to the rules
would have any impact, or impose any burden, on competition not
necessary or appropriate in furtherance of the Act. ICE Clear Europe
recognizes that the change may impose costs on certain FCM/BD Clearing
Members, or their customers, that were previously providing original
margin for the Section 4d(a) account in the form of non-USD assets and
will now have to provide USD-denominated assets. However, in light of
the amounts involved, ICE Clear Europe does not believe the change will
significantly burden clearing members or their customers, and further
believes that the change is appropriate in light of the regulatory
constraints on holding and investment of non-USD original margin for
such account discussed above.
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 changes to the rules 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 upon filing pursuant
to Section 19(b)(3)(A) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\
thereunder because it effects a change in an existing service of a
registered clearing agency that primarily affects the clearing
operations of the clearing agency with respect to products that are not
securities, including futures that are not security futures, swaps that
are not security-based swaps or mixed swaps, and forwards that are not
security forwards, and does not significantly affect any securities
clearing operations of the clearing agency or any rights or obligations
of the clearing agency with respect to securities clearing or persons
using such securities-clearing 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.
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\8\ 15 U.S.C. 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(4)(ii).
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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:
[[Page 35825]]
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 Number SR-ICEEU-2014-07 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-2014-07. 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 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 filings will also 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/notices/Notices.shtml?regulatoryFilings.
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-2014-07
and should be submitted on or before July 15, 2014.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14658 Filed 6-23-14; 8:45 am]
BILLING CODE 8011-01-P
