Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing Amendment Nos. 1 and 2 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, To Revise the ICE Clear Europe Clearing Rules Relating to the Application of Default Provisions in the Event of a Resolution Proceeding, 15733-15735 [2017-06242]

Download as PDF Federal Register / Vol. 82, No. 60 / Thursday, March 30, 2017 / Notices asabaliauskas on DSK3SPTVN1PROD with NOTICES 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549–1090, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of such filing will also be available for inspection and copying at the principal office of the Exchange. 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 No. SR–NYSEMKT– 2016–63 and should be submitted on or before April 20, 2017. VI. Accelerated Approval of Proposed Rule Change, as Modified by Amendment Nos. 1–4 The Commission finds good cause to approve the proposed rule change, as modified by Amendment Nos 1–4, prior to the thirtieth day after the date of publication of notice of the amended proposal in the Federal Register. The revisions made to the proposal in partial Amendment No. 4 142 (1) removed reference to the National Stock Exchange (NSX) from its list of Third Party Systems, (2) added three additional Third Party Data Feeds—ICE Data Services Consolidated Feed, ICE Data Services PRD, and ICE Data Services PRD CEP, (3) added connectivity fees for each of the newly added Third Party Data feeds. With respect to NSX, the Exchange represents that NSX was acquired by the NYSE Group on January 31, 2017, making it no longer a Third Party System. The Commission believes this characterization is consistent with the NYSE Group’s similarly situated affiliated exchanges, NYSEMKT and NYSE, which, like NSX are solely within the NYSE Group’s control. 142 See partial Amendment No. 4, supra note 13. VerDate Sep<11>2014 19:09 Mar 29, 2017 Jkt 241001 15733 Regarding the ICE Data Services feeds, the Exchange notes that it has an indirect interest in these feeds because ICE Data Services is owned by the Exchange’s ultimate parent, Intercontinental Exchange, Inc. As represented in partial Amendment No. 4, the Exchange considers the ICE Data Services Consolidated Feed (like the NYSE Global Index feed), a Third Party Data Feed because it includes third party market data rather than exclusively the proprietary market data of the Exchange and its affiliated SROs, NYSE and NYSE Arca.143 The Commission believes that partial Amendment No. 4 does not raise issues not previously raised in the proposed rule change, as modified Amendment Nos. 1–3, and addressed in Exchange Response Letters I, II, and III. Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,144 to approve the proposed rule change, as modified by Amendment Nos. 1–4, on an accelerated basis. 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 (SR–ICEEU–2017–002) to amend the ICE Clear Europe Clearing Rules (‘‘Rules’’) relating to the application of default provisions in the event of a resolution proceeding.3 The proposed rule change was published for comment in the Federal Register on February 15, 2017.4 On February 8, 2017, ICE Clear Europe filed Amendment No. 1 to the proposed rule change and on February 10, 2017, ICE Clear Europe filed Amendment No. 2 to the proposed rule change.5 The Commission received no comment letters regarding the proposed change. The Commission is publishing this notice to solicit comment on Amendment Nos. 1 and 2 from interested persons and, for the reasons stated below, is approving the proposed rule change, as modified by Amendment Nos. 1 and 2, on an accelerated basis. VII. Conclusion It is therefore ordered, pursuant to Section 19(b)(2) of the Act,145 that the proposed rule change (SR–NYSEMKT– 2016–63) be, and hereby is, approved on an accelerated basis. II. Description of the Proposed Rule Change The principal purpose of the proposed rule change, as modified by Amendment Nos. 1 and 2, is to amend the Rules to clarify that the default remedies enumerated in the Rules are For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.146 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–06256 Filed 3–29–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–80304; File No. SR–ICEEU– 2017–002] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing Amendment Nos. 1 and 2 and Order Granting Accelerated Approval of Proposed Rule Change, as Modified by Amendment Nos. 1 and 2, To Revise the ICE Clear Europe Clearing Rules Relating to the Application of Default Provisions in the Event of a Resolution Proceeding March 24, 2017. I. Introduction On January 25, 2017, ICE Clear Europe Limited (‘‘ICE Clear Europe’’ or ‘‘Clearing House’’) filed with the 143 See id. U.S.C. 78s(b)(2). 145 See id. 146 17 CFR 200.30–3(a)(12). 144 15 PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 Capitalized terms used in this order, but not defined herein, have the meanings specified in ICE Clear Europe Clearing Rules. 4 Securities Exchange Act Release No. 34–79999 (February 9, 2017), 82 FR 10848 (February 15, 2017) (SR–ICEEU–2017–002). 5 Amendment Nos. 1 and 2 are technical amendments to ICE Clear Europe’s filing with respect to comments on the proposed rule change received by ICE Clear Europe. In its filing on January 25, 2017, ICE Clear Europe represented that it had published a prior version of the proposed amendments for consultation with its clearing members, two clearing members had inquired about the regulatory process surrounding the proposed change, and one clearing member suggested that certain additional clarifications be made to limit the application of other aspects of the ‘‘Insolvency’’ definition in the Rules. ICE Clear Europe further represented its conclusion that these suggested clarifications were not necessary or appropriate and that ICE Clear Europe would not make these requested clarifications. In Amendment No. 1, on February 8, 2017, ICE Clear Europe amended the filing (1) to note that no written comments were received in response to its prior consultation publication (Circular C16/018, available at https://www.theice.com/clear-europe/ circulars (February 22, 2016)), (2) to include Circular C16/018 as Exhibit 2, and (3) to add a footnote that ‘‘Capitalized terms used [in the notice] but not defined [t]herein have the meanings specified in the [ ] Rules.’’ However, Exhibit 2 was not referenced in Item 9 of ICE Clear Europe’s amended filing. Subsequently, ICE Clear Europe filed Amendment No. 2 on February 10, 2017. In Amendment No. 2, ICE Clear Europe referenced Exhibit 2 in Item 9 of its filing and corrected a pagination error in Amendment No. 1. 2 17 E:\FR\FM\30MRN1.SGM 30MRN1 15734 Federal Register / Vol. 82, No. 60 / Thursday, March 30, 2017 / Notices asabaliauskas on DSK3SPTVN1PROD with NOTICES not automatically triggered by certain resolution or insolvency proceedings brought under the special resolution regimes of the UK Banking Act 2009 or the national legislation of any European Economic Area jurisdiction implementing the Bank Recovery and Resolution Directive (Directive 2014/59/ EU) (‘‘BRRD’’). Nevertheless, the proposed rule change preserves ICE Clear Europe’s right under the Rules to declare an Event of Default or exercise default remedies in the event a clearing member (or other person) is not performing substantive obligations to the Clearing House. The proposed rule change also preserves ICE Clear Europe’s right to declare an Event of Default or exercise all of the default remedies available in the Rules if applicable law, including special resolution regimes, does not prohibit doing so. Finally, the proposed rule change confirms that application of a special resolution regime with respect to ICE Clear Europe does not constitute an insolvency of ICE Clear Europe for purposes of the Rules. III. Discussion and Commission’s Findings Section 19(b)(2)(C) of the Act 6 directs the Commission to approve a proposed rule change of a self-regulatory organization if it finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization. Section 17A(b)(3)(F) of the Act 7 requires, among other things, that the rules of a registered 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 and, in general, to protect investors and the public interest. The Commission finds that the proposed rule change, which clarifies the application of certain default provisions in the event of a resolution proceeding with respect to either the Clearing House, a clearing member, or other person, are consistent with the requirements of the requirements of Section 17A(b)(3)(F) of the Act.8 The proposed change recognizes that other statutory resolution regimes could have an impact on ICE Clear Europe’s rights and responsibilities in the event either ICE Clear Europe or one of its clearing members is subject to these regimes. Similarly, the proposed rule change 6 15 7 15 U.S.C. 78s(b)(2)(C). U.S.C. 78q–1(b)(3)(F). 8 Id. VerDate Sep<11>2014 clarifies the extent to which ICE Clear Europe’s rights and responsibilities under its Rules are affected during the operation of a statutory resolution regime. ICE Clear Europe represents that the amendments are not intended to increase risk to ICE Clear Europe, and will not impact ICE Clear Europe’s ability to take risk management measures under its Rules with respect to non-defaulting clearing members (including clearing members that may be subject to a Resolution Step that is not an Unprotected Resolution Step). The Commission finds that this explicit recognition and the additional clarity provided, should promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions as well as promote the public interest when default circumstances arise. The Commission notes ICE Clear Europe’s representation that the amendments are not intended to increase risk to ICE Clear Europe and will not impact ICE Clear Europe’s ability to take risk management measures with respect to its non-defaulting clearing members (including clearing members that may be subject to a Resolution Step that is not an Unprotected Resolution Step). Moreover, the Commission finds that by clarifying legal limitations on ICE Clear Europe’s ability to determine that a clearing member is in default during certain resolution proceedings, the proposed rule change is consistent with Rule 17Ad–22(e)(1), which requires that a clearing house provide ‘‘a wellfounded, clear, transparent and enforceable legal basis for each aspect of its activities in all relevant jurisdictions.’’ 9 IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change, as modified by Amendment Nos. 1 and 2, is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s Internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– ICEEU–2017–002 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange 9 17 19:09 Mar 29, 2017 Jkt 241001 PO 00000 CFR 240.17Ad–22(e)(1). Frm 00050 Fmt 4703 Sfmt 4703 Commission, 100 F Street NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–ICEEU–2017–002. 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 (http://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for 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 the filing also will be available for inspection and copying at the principal office of ICE Clear Europe and on its Web site at https://www.theice.com/ clear-europe/regulation#rule-filings. 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–2017–002 and should be submitted on or before April 20, 2017. V. Accelerated Approval of the Proposed Rule Change, as Modified by Amendment Nos. 1 and 2 The Commission finds good cause, pursuant to section 19(b)(2) of the Act,10 to approve the proposed rule change, as modified by Amendment Nos. 1 and 2, prior to the 30th day after publication of Amendment Nos. 1 and 2 in the Federal Register. As described above, the proposed rule change clarifies that the default remedies enumerated in the Rules are not automatically triggered by certain resolution proceedings brought under the UK Banking Act 2009 or the BRRD (and related national implementing legislation). Nevertheless, the rule change preserves ICE Clear Credit’s right under the Rules to declare an Event of Default and exercise default remedies in the event a clearing member (or other person) is not performing 10 15 E:\FR\FM\30MRN1.SGM U.S.C. 78s(b)(2). 30MRN1 Federal Register / Vol. 82, No. 60 / Thursday, March 30, 2017 / Notices substantive obligations to the Clearing House. Also, as noted above, Amendment Nos. 1 and 2 are technical amendments to ICE Clear Europe’s filing with respect to comments on the proposed rule change received by ICE Clear Europe. Thus, the proposed rule change is intended to comply with restrictions on ICE Clear Europe’s exercise of its default remedies provided by applicable laws in other jurisdictions. Moreover, ICE Clear Europe represents that the proposed rule change has been filed at the request of regulatory authorities in the United Kingdom and the European Union. Finally, the Commission finds that implementation of the proposed rule change will not substantially affect the rights of members of the Clearing House as a practical matter because the proposed rule change clarifies restrictions that are already imposed on the Clearing House by applicable law in other jurisdictions. Accordingly, the Commission finds good cause for approving the proposed rule change, as modified by Amendment Nos. 1 and 2, on an accelerated basis pursuant to section 19(b)(2) of the Act. VI. Conclusion It is therefore ordered pursuant to Section 19(b)(2) of the Act that the proposed rule change (SR–ICEEU–2017– 002), as modified by Amendment Nos. 1 and 2, be, and hereby is, approved on an accelerated basis.11 For the Commission by the Division of Trading and Markets, pursuant to delegated authority.12 Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017–06242 Filed 3–29–17; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 32572; File No. 812–14488] Transamerica Life Insurance Company, et al. March 24, 2017. Securities and Exchange Commission (‘‘SEC’’ or ‘‘Commission’’). ACTION: Notice. asabaliauskas on DSK3SPTVN1PROD with NOTICES AGENCY: Notice of application for an order approving the substitution of certain securities pursuant to Section 26(c) of 11 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). 12 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 19:09 Mar 29, 2017 Jkt 241001 the Investment Company Act of 1940, as amended (the ‘‘1940 Act’’ or ‘‘Act’’). APPLICANTS: Transamerica Life Insurance Company (‘‘TLIC’’), Transamerica Financial Life Insurance Company (‘‘TFLIC’’) (each a ‘‘Company’’ and together, the ‘‘Companies’’), Separate Account VA–2L, and Separate Account VA–2LNY (each, an ‘‘Account’’ and together, the ‘‘Accounts’’). The Companies and the Accounts collectively are referred to herein as the ‘‘Applicants.’’ SUMMARY OF APPLICATION: Applicants seek an order pursuant to Section 26(c) of the 1940 Act, approving the substitution of shares issued by certain series of Transamerica Series Trust (the ‘‘Replacement Funds’’) for shares of certain registered investment companies currently held by sub-accounts of the Accounts (the ‘‘Existing Funds’’), to support certain variable annuity contracts (collectively, the ‘‘Contracts’’) issued by the Companies. FILING DATE: The application was filed on June 15, 2015, and was amended on December 8, 2015, July 1, 2016, and November 14, 2016. HEARING OR NOTIFICATION OF HEARING: An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing by writing to the Secretary of the Commission and serving the Applicants with a copy of the request, personally or by mail. Hearing requests should be received by the Commission by 5:30 p.m. on April 18, 2017 and should be accompanied by proof of service on the Applicants in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to Rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by writing to the Commission’s Secretary. ADDRESSES: Commission: Secretary, SEC, 100 F Street NE., Washington, DC 20549–1090. Applicants: Alison C. Ryan, Associate General Counsel, Transamerica, 1150 South Olive Street T–27–01, Los Angeles, CA 90015. FOR FURTHER INFORMATION CONTACT: Jill Ehrlich, Senior Counsel, at (202) 551– 6819, or David J. Marcinkus, Branch Chief, at (202) 551–6821 (Division of Investment Management, Chief Counsel’s Office). SUPPLEMENTARY INFORMATION: The following is a summary of the application. The complete application PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 15735 may be obtained via the Commission’s Web site by searching for the file number, or for an Applicant using the Company name box, at http:// www.sec.gov/search/search.htm, or by calling (202) 551–8090. Applicants’ Representations: 1. TLIC is the depositor of Account VA–2L. TFLIC is the depositor of Account VA–2LNY. Each Company is an indirect, wholly-owned subsidiary of AEGON, N.V. 2. Each Account is a ‘‘separate account’’ as defined by Rule 0–1(e) under the 1940 Act, and each is registered under the 1940 Act as a unit investment trust. Each Account is divided into sub-accounts, which reflect the investment performance of certain registered investment companies, including Transamerica Series Trust. The Accounts are administered and accounted for as part of the general business of the Companies. The application sets forth the registration statement file numbers for the security interests under the Contracts and the Accounts. 3. The Contracts are individual and group variable annuity contracts. Each of the prospectuses for the Contracts discloses that the issuing Company reserves the right, subject to compliance with applicable law, to substitute shares of another registered open-end management investment company for shares of a registered open-end management investment company held by a sub-account of an Account. 4. Transamerica Series Trust is an open-end management investment company of the series type that is registered with the Commission under the 1940 Act (File No. 811–04419).1 Shares of the series are registered under the Securities Act of 1933 (File No. 033– 00507) and are sold to the separate accounts of life insurance companies to fund benefits under variable life policies or variable annuity contracts and to certain affiliated asset allocation funds. 5. Transamerica Asset Management, Inc. (‘‘TAM’’), an investment adviser that is registered with the Commission, has overall responsibility for the management of each Transamerica Series Trust Replacement Fund. TAM delegates to a sub-adviser the responsibility for day-to-day management of the investments of each Transamerica Series Trust Replacement Fund, subject to TAM’s oversight. TAM may, in the future, determine to provide the day-to-day management of any 1 Effective May 1, 2008, Transamerica Series Trust changed its name from AEGON/Transamerica Series Trust. E:\FR\FM\30MRN1.SGM 30MRN1

Agencies

[Federal Register Volume 82, Number 60 (Thursday, March 30, 2017)]
[Notices]
[Pages 15733-15735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-06242]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80304; File No. SR-ICEEU-2017-002]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing Amendment Nos. 1 and 2 and Order Granting Accelerated 
Approval of Proposed Rule Change, as Modified by Amendment Nos. 1 and 
2, To Revise the ICE Clear Europe Clearing Rules Relating to the 
Application of Default Provisions in the Event of a Resolution 
Proceeding

March 24, 2017.

I. Introduction

    On January 25, 2017, ICE Clear Europe Limited (``ICE Clear Europe'' 
or ``Clearing House'') 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 (SR-ICEEU-2017-002) to amend the 
ICE Clear Europe Clearing Rules (``Rules'') relating to the application 
of default provisions in the event of a resolution proceeding.\3\ The 
proposed rule change was published for comment in the Federal Register 
on February 15, 2017.\4\ On February 8, 2017, ICE Clear Europe filed 
Amendment No. 1 to the proposed rule change and on February 10, 2017, 
ICE Clear Europe filed Amendment No. 2 to the proposed rule change.\5\ 
The Commission received no comment letters regarding the proposed 
change. The Commission is publishing this notice to solicit comment on 
Amendment Nos. 1 and 2 from interested persons and, for the reasons 
stated below, is approving the proposed rule change, as modified by 
Amendment Nos. 1 and 2, on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Capitalized terms used in this order, but not defined 
herein, have the meanings specified in ICE Clear Europe Clearing 
Rules.
    \4\ Securities Exchange Act Release No. 34-79999 (February 9, 
2017), 82 FR 10848 (February 15, 2017) (SR-ICEEU-2017-002).
    \5\ Amendment Nos. 1 and 2 are technical amendments to ICE Clear 
Europe's filing with respect to comments on the proposed rule change 
received by ICE Clear Europe.
    In its filing on January 25, 2017, ICE Clear Europe represented 
that it had published a prior version of the proposed amendments for 
consultation with its clearing members, two clearing members had 
inquired about the regulatory process surrounding the proposed 
change, and one clearing member suggested that certain additional 
clarifications be made to limit the application of other aspects of 
the ``Insolvency'' definition in the Rules. ICE Clear Europe further 
represented its conclusion that these suggested clarifications were 
not necessary or appropriate and that ICE Clear Europe would not 
make these requested clarifications.
    In Amendment No. 1, on February 8, 2017, ICE Clear Europe 
amended the filing (1) to note that no written comments were 
received in response to its prior consultation publication (Circular 
C16/018, available at https://www.theice.com/clear-europe/circulars 
(February 22, 2016)), (2) to include Circular C16/018 as Exhibit 2, 
and (3) to add a footnote that ``Capitalized terms used [in the 
notice] but not defined [t]herein have the meanings specified in the 
[ ] Rules.'' However, Exhibit 2 was not referenced in Item 9 of ICE 
Clear Europe's amended filing. Subsequently, ICE Clear Europe filed 
Amendment No. 2 on February 10, 2017. In Amendment No. 2, ICE Clear 
Europe referenced Exhibit 2 in Item 9 of its filing and corrected a 
pagination error in Amendment No. 1.
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The principal purpose of the proposed rule change, as modified by 
Amendment Nos. 1 and 2, is to amend the Rules to clarify that the 
default remedies enumerated in the Rules are

[[Page 15734]]

not automatically triggered by certain resolution or insolvency 
proceedings brought under the special resolution regimes of the UK 
Banking Act 2009 or the national legislation of any European Economic 
Area jurisdiction implementing the Bank Recovery and Resolution 
Directive (Directive 2014/59/EU) (``BRRD'').
    Nevertheless, the proposed rule change preserves ICE Clear Europe's 
right under the Rules to declare an Event of Default or exercise 
default remedies in the event a clearing member (or other person) is 
not performing substantive obligations to the Clearing House. The 
proposed rule change also preserves ICE Clear Europe's right to declare 
an Event of Default or exercise all of the default remedies available 
in the Rules if applicable law, including special resolution regimes, 
does not prohibit doing so. Finally, the proposed rule change confirms 
that application of a special resolution regime with respect to ICE 
Clear Europe does not constitute an insolvency of ICE Clear Europe for 
purposes of the Rules.

III. Discussion and Commission's Findings

    Section 19(b)(2)(C) of the Act \6\ directs the Commission to 
approve a proposed rule change of a self-regulatory organization if it 
finds that such proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to such organization. Section 17A(b)(3)(F) of the Act \7\ 
requires, among other things, that the rules of a registered 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 and, in general, to 
protect investors and the public interest.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78s(b)(2)(C).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The Commission finds that the proposed rule change, which clarifies 
the application of certain default provisions in the event of a 
resolution proceeding with respect to either the Clearing House, a 
clearing member, or other person, are consistent with the requirements 
of the requirements of Section 17A(b)(3)(F) of the Act.\8\ The proposed 
change recognizes that other statutory resolution regimes could have an 
impact on ICE Clear Europe's rights and responsibilities in the event 
either ICE Clear Europe or one of its clearing members is subject to 
these regimes. Similarly, the proposed rule change clarifies the extent 
to which ICE Clear Europe's rights and responsibilities under its Rules 
are affected during the operation of a statutory resolution regime. ICE 
Clear Europe represents that the amendments are not intended to 
increase risk to ICE Clear Europe, and will not impact ICE Clear 
Europe's ability to take risk management measures under its Rules with 
respect to non-defaulting clearing members (including clearing members 
that may be subject to a Resolution Step that is not an Unprotected 
Resolution Step).
---------------------------------------------------------------------------

    \8\ Id.
---------------------------------------------------------------------------

    The Commission finds that this explicit recognition and the 
additional clarity provided, should promote the prompt and accurate 
clearance and settlement of securities transactions and, to the extent 
applicable, derivative agreements, contracts, and transactions as well 
as promote the public interest when default circumstances arise. The 
Commission notes ICE Clear Europe's representation that the amendments 
are not intended to increase risk to ICE Clear Europe and will not 
impact ICE Clear Europe's ability to take risk management measures with 
respect to its non-defaulting clearing members (including clearing 
members that may be subject to a Resolution Step that is not an 
Unprotected Resolution Step). Moreover, the Commission finds that by 
clarifying legal limitations on ICE Clear Europe's ability to determine 
that a clearing member is in default during certain resolution 
proceedings, the proposed rule change is consistent with Rule 17Ad-
22(e)(1), which requires that a clearing house provide ``a well-
founded, clear, transparent and enforceable legal basis for each aspect 
of its activities in all relevant jurisdictions.'' \9\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.17Ad-22(e)(1).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, as modified by Amendment Nos. 1 and 2, is consistent with the 
Act. Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-ICEEU-2017-002 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-2017-002. 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 (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for 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 the filing also will be available 
for inspection and copying at the principal office of ICE Clear Europe 
and on its Web site at https://www.theice.com/clear-europe/regulation#rule-filings.
    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-2017-002 
and should be submitted on or before April 20, 2017.

V. Accelerated Approval of the Proposed Rule Change, as Modified by 
Amendment Nos. 1 and 2

    The Commission finds good cause, pursuant to section 19(b)(2) of 
the Act,\10\ to approve the proposed rule change, as modified by 
Amendment Nos. 1 and 2, prior to the 30th day after publication of 
Amendment Nos. 1 and 2 in the Federal Register. As described above, the 
proposed rule change clarifies that the default remedies enumerated in 
the Rules are not automatically triggered by certain resolution 
proceedings brought under the UK Banking Act 2009 or the BRRD (and 
related national implementing legislation). Nevertheless, the rule 
change preserves ICE Clear Credit's right under the Rules to declare an 
Event of Default and exercise default remedies in the event a clearing 
member (or other person) is not performing

[[Page 15735]]

substantive obligations to the Clearing House. Also, as noted above, 
Amendment Nos. 1 and 2 are technical amendments to ICE Clear Europe's 
filing with respect to comments on the proposed rule change received by 
ICE Clear Europe.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    Thus, the proposed rule change is intended to comply with 
restrictions on ICE Clear Europe's exercise of its default remedies 
provided by applicable laws in other jurisdictions. Moreover, ICE Clear 
Europe represents that the proposed rule change has been filed at the 
request of regulatory authorities in the United Kingdom and the 
European Union. Finally, the Commission finds that implementation of 
the proposed rule change will not substantially affect the rights of 
members of the Clearing House as a practical matter because the 
proposed rule change clarifies restrictions that are already imposed on 
the Clearing House by applicable law in other jurisdictions. 
Accordingly, the Commission finds good cause for approving the proposed 
rule change, as modified by Amendment Nos. 1 and 2, on an accelerated 
basis pursuant to section 19(b)(2) of the Act.

VI. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) of the Act 
that the proposed rule change (SR-ICEEU-2017-002), as modified by 
Amendment Nos. 1 and 2, be, and hereby is, approved on an accelerated 
basis.\11\
---------------------------------------------------------------------------

    \11\ 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).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
Eduardo A. Aleman,
Assistant Secretary.
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    \12\ 17 CFR 200.30-3(a)(12).
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[FR Doc. 2017-06242 Filed 3-29-17; 8:45 am]
 BILLING CODE 8011-01-P