Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the ICE Clear Europe Rules for the Transition of Trading in Certain F&O Contracts, 7090-7092 [2018-03200]
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7090
Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
each case to enable an arbitrator to hear
several cases in a hearing day and to
limit the time commitment of the
parties. FINRA was concerned that a
period shorter than the proposed two
hearing session time limit would restrict
the parties’ presentations and their
ability to answer questions posed by the
arbitrator. The proposal reflects the
changes that FINRA believes were the
most appropriate to propose for the
reasons discussed herein.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
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:
daltland on DSKBBV9HB2PROD with NOTICES
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–
FINRA–2018–003 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–FINRA–2018–003. 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
VerDate Sep<11>2014
19:24 Feb 15, 2018
Jkt 244001
internet website (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 website 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
a.m. and 3 p.m. Copies of such filing
also will be available for inspection and
copying at the principal office of
FINRA. All comments received will be
posted without change. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FINRA–
2018–003 and should be submitted on
or before March 9, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–03202 Filed 2–15–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82687; File No. SR–ICEEU–
2018–003]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating to the
ICE Clear Europe Rules for the
Transition of Trading in Certain F&O
Contracts
February 12, 2018.
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 February
7, 2018, ICE Clear Europe Limited (‘‘ICE
Clear Europe’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
changes described in Items I, II, and III
below, which Items have been prepared
17 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
PO 00000
Frm 00083
Fmt 4703
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primarily by ICE Clear Europe. ICE Clear
Europe filed the proposed rule changes
pursuant to Section 19(b)(3)(A) of the
Act,3 and Rule 19b–4(f)(4)(ii)
thereunder,4 so that the proposal was
immediately effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
ICE Clear Europe proposes revising
the ICE Clear Europe Rules (the
‘‘Clearing House Rules’’) 5 to add new
rules to accommodate the transition of
trading in certain F&O Contracts from
one Market to another.
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 may be examined at the
places specified in Item IV below. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
ICE Futures Europe has announced
that certain F&O Contracts currently
listed on that exchange and cleared at
ICE Clear Europe will be removed from
trading and that equivalent contracts
will commence trading on the ICE
Futures U.S., Inc. (‘‘ICE Futures US’’)
exchange.6 Clearing of the transitioning
contracts will remain at ICE Clear
Europe. The purpose of the proposed
amendments is to accommodate this
transition under the Clearing House
Rules.
Specifically, ICE Clear Europe is
adopting a new Part 23 of the Rules,
which will apply to the announced
transition as well as any future similar
transitions. Part 23 will apply where the
Clearing House identifies by Circular
one or more F&O Contracts for which
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
5 Capitalized terms used but not defined herein
have the meanings specified in the Clearing House
Rules.
6 ICE Futures Europe Circular 18/002 (Jan. 10,
2018); ICE Futures Europe Circular 18/009 (Jan. 23,
2018).
4 17
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Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
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trading is to be transitioned from one
Market to another (‘‘Transitioning
Contracts’’) as of a designated time (the
‘‘Transition Time’’). Rule 2302 adds
related definitions, including the
concepts of ‘‘Exiting Market’’ (from
which the contracts are being moved)
and ‘‘Receiving Market’’ (to which the
contracts are being moved). (In
connection with the announced
transition between ICE Futures Europe
and ICE Futures US, ICE Futures Europe
would be the Exiting Market and ICE
Futures US would be the Receiving
Market.)
New Rule 2303 provides that as of the
relevant Transition Time, trading of the
Transitioning Contract will transfer
from the Exiting Market to the Receiving
Market. New Rule 2304(a) provides that
the Transitioning Contracts will be
automatically redesignated such that
they become Contracts under the Market
Rules of the Receiving Market and are
no longer Contracts under the Market
Rules of the Exiting Market. Under the
Rule, the redesignated Contracts remain
in full force and effect as between the
relevant Clearing Member and the
Clearing House.
New Rule 2304(b) further addresses
the situation where the Receiving
Market is a U.S. designated contract
market and the Exiting Market is not. In
that case, in order to comply with
relevant segregation requirements under
Section 4d of the U.S. Commodity
Exchange Act, Transitioning Contracts
registered in the Non-DCM/Swap
Customer Account of an FCM/BD
Clearing Member will be automatically
transferred to the DCM Customer
Account of such FCM/BD Clearing
Member; and FCM/BD Customer
Collateral in respect of such open
Transitioning Contracts will be held in
the Clearing House DCM Segregated
Account as FCM/BD U.S. Futures
Customer Collateral under the Rules.
In connection with the announced
transition between ICE Futures Europe
and ICE Futures US, ICE Clear Europe
will issue a Circular indicating the
specific contracts that are to be
Transitioning Contracts and the
Transition Time for purposes of Part 23
of the Rules. ICE Clear Europe has
attached as Exhibit 5 hereto the list of
Transitioning Contracts. The Transition
Time is expected to be on or about
February 18, 2018.
(b) Statutory Basis
ICE Clear Europe believes that the
changes described herein are consistent
with the requirements of Section 17A of
the Act 7 and the regulations thereunder
applicable to it, and in particular 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.8 ICE
Clear Europe is implementing the
amendments in order to facilitate the
transition of the Transitioning Contracts
from one Market to another in a manner
designed to minimize any impact on
Clearing Members and their customers.
The Transitioning Contracts will
continue to be eligible for clearing at
ICE Clear Europe, and the terms and
conditions of such contracts are not
changing in any material respect. The
Transitioning Contracts will be cleared
by ICE Clear Europe in substantially the
same manner as before the transition
(other than with respect to the class of
customer account, as discussed herein).
With respect to the safeguarding of
securities and funds in the custody or
control of ICE Clear Europe, the
Transitioning Contracts will become
traded on ICE Futures US, a designated
contract market under the Commodity
Exchange Act, and as such will become
subject to the segregation requirements
under that act. Accordingly, the
amendments provide that customer
positions in Transitioning Contracts
will, following the transition, be held in
the DCM Customer Account and the
associated margin will be held in the
Clearing House DCM Segregated
Account as FCM/BD U.S. Futures
Customer Collateral. For the foregoing
reasons, ICE Clear Europe believes that
the amendments are consistent with the
requirements of Section 17A(b)(3)(F)
and the regulations of the Commission
thereunder.
(B) Clearing Agency’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
purpose of the Act. The amendments
solely are designed to facilitate the
transition of the Transitioning Contracts
from one Market to another, as
requested by such markets. As a result,
ICE Clear Europe does not believe the
amendments would adversely affect
Clearing Members, materially affect the
cost of clearing, adversely affect access
to clearing in F&O Contracts for Clearing
Members or their customers, or
otherwise adversely affect competition
in clearing services. Accordingly, ICE
Clear Europe does not believe that the
amendments would impose any impact
or burden on competition that is not
appropriate in furtherance of the
purpose of the Act.
(C) Clearing Agency’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
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 9 and paragraph (f) of Rule
19b–4 10 thereunder. 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:
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–2018–003 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–2018–003. 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
9 15
7 15
U.S.C. 78q–1.
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8 15
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PO 00000
U.S.C. 78q–1(b)(3)(F).
Frm 00084
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7091
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
10 17
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7092
Federal Register / Vol. 83, No. 33 / Friday, February 16, 2018 / Notices
internet website (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 website 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 website at https://
www.theice.com/clear-europe/
regulation#rule-filings.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICEEU–2018–003
and should be submitted on or before
March 9, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2018–03200 Filed 2–15–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82689; File No. SR–CBOE–
2018–016]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing of a
Proposed Rule Change To Amend
Rules Related to the Complex Order
Book
daltland on DSKBBV9HB2PROD with NOTICES
February 12, 2018.
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 February
2, 2018, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
11 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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19:24 Feb 15, 2018
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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 amend its
rules related to the Complex Order Book
(‘‘COB’’).
(additions are italicized; deletions are
[bracketed])
*
*
*
*
*
Cboe Exchange, Inc. Rules
*
*
*
*
*
Rule 6.53C. Complex Orders on the
Hybrid System
(a)–(b) No change.
(c) Complex Order Book:
(i) Routing of Complex Orders: The
Exchange will determine which classes and
which complex order origin types (i.e., nonbroker-dealer public customer, broker-dealers
that are not Market-Makers or specialists on
an options exchange, and/or Market-Makers
or specialists on an options exchange) are
eligible for entry into the COB and whether
such complex orders can route directly to the
COB and/or from PAR to the COB. In a class
in which the Exchange determines complex
orders of Market-Makers and specialists on
an options exchange are not eligible for entry
into the COB, the Exchange may determine
that Market-Makers and specialists may enter
complex orders into the COB if:
(A) their complex orders are on the
opposite side of (1) a priority customer
complex order(s) resting in the COB with a
price not outside the national spread market;
or (2) order(s) on the same side of the market
in the same strategy that initiated a COA(s)
if there are ‘‘x’’ number of COAs within ‘‘y’’
milliseconds, counted on a rolling basis (the
Exchange determines the number ‘‘x’’ (which
must be at least 2) and time period ‘‘y’’
(which may be no more than 2,000)); and
(B) they cancel their complex orders, if
they remain unexecuted, no later than a
specified time (which the Exchange
determines and may be no more than five
minutes) after the time the COB receives the
Market-Maker order.
Complex orders not eligible to route
to COB (either directly or from PAR to
COB) will route via the order handling
system pursuant to Rule 6.12.
(ii)–(iv) No change.
(d) No change.
. . . Interpretations and Policies:
.01–.12 No change.
*
*
*
*
*
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
Home.aspx), at the Exchange’s Office of
the Secretary, 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
Exchange 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. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend its
rules related to the COB. Currently, Rule
6.53C(c)(i) states the Exchange may
determine which classes and which
complex order origin types (i.e., nonbroker-dealer public customer, brokerdealers that are not market-makers or
specialists on an options exchange, and/
or Market-Makers or specialists on an
options exchange) are eligible for entry
into the COB and whether such complex
orders can route directly to the COB
and/or from PAR to the COB.3 To the
extent an origin type is not eligible for
entry into the COB, complex orders with
that origin type may still be entered into
the System as opening-only or
immediate-or-cancel, as such orders
would not rest in the COB when the
Exchange is open for trading.
The Exchange proposes to amend
Rule 6.53C(c) to provide in a class in
which the Exchange determines
complex orders of Market-Makers and
away market-makers are not eligible for
entry into the COB, the Exchange may
determine that Market-Makers and away
market-makers may enter complex
3 Currently, Cboe Options has determined MarketMaker (origin code ‘‘M’’) and market-maker or
specialist on an options exchange (‘‘away marketmakers’’) (origin code ‘‘N’’) complex orders in
options on the S&P 500 (‘‘SPX’’ and ‘‘SPXW’’) and
the Cboe Volatility Index (‘‘VIX’’) are not eligible for
entry into the COB. See Regulatory Circular RG15–
195. The group of SPX options with standard thirdFriday settlements trade under the SPX symbol on
the Hybrid 3.0 trading system, and the group of SPX
options with other settlements trade under the
SPXW symbol on the Hybrid trading system.
Pursuant to Rule 8.14, Interpretation and Policy
.01(c), the Exchange may establish different trading
parameters for each group to the extent the
Exchange Rules otherwise provide for such
parameters to be established on a class basis.
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]]>Agencies
[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)]
[Notices]
[Pages 7090-7092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03200]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82687; File No. SR-ICEEU-2018-003]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to the ICE Clear Europe Rules for the Transition of Trading in
Certain F&O Contracts
February 12, 2018.
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 February 7, 2018, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule changes described in Items I, II, and III below, which
Items have been prepared primarily by ICE Clear Europe. ICE Clear
Europe filed the proposed rule changes pursuant to Section 19(b)(3)(A)
of the Act,\3\ and Rule 19b-4(f)(4)(ii) thereunder,\4\ so that the
proposal was immediately 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. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
ICE Clear Europe proposes revising the ICE Clear Europe Rules (the
``Clearing House Rules'') \5\ to add new rules to accommodate the
transition of trading in certain F&O Contracts from one Market to
another.
---------------------------------------------------------------------------
\5\ Capitalized terms used but not defined herein have the
meanings specified in the Clearing House 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 may be examined at the places
specified in Item IV below. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
ICE Futures Europe has announced that certain F&O Contracts
currently listed on that exchange and cleared at ICE Clear Europe will
be removed from trading and that equivalent contracts will commence
trading on the ICE Futures U.S., Inc. (``ICE Futures US'') exchange.\6\
Clearing of the transitioning contracts will remain at ICE Clear
Europe. The purpose of the proposed amendments is to accommodate this
transition under the Clearing House Rules.
---------------------------------------------------------------------------
\6\ ICE Futures Europe Circular 18/002 (Jan. 10, 2018); ICE
Futures Europe Circular 18/009 (Jan. 23, 2018).
---------------------------------------------------------------------------
Specifically, ICE Clear Europe is adopting a new Part 23 of the
Rules, which will apply to the announced transition as well as any
future similar transitions. Part 23 will apply where the Clearing House
identifies by Circular one or more F&O Contracts for which
[[Page 7091]]
trading is to be transitioned from one Market to another
(``Transitioning Contracts'') as of a designated time (the ``Transition
Time''). Rule 2302 adds related definitions, including the concepts of
``Exiting Market'' (from which the contracts are being moved) and
``Receiving Market'' (to which the contracts are being moved). (In
connection with the announced transition between ICE Futures Europe and
ICE Futures US, ICE Futures Europe would be the Exiting Market and ICE
Futures US would be the Receiving Market.)
New Rule 2303 provides that as of the relevant Transition Time,
trading of the Transitioning Contract will transfer from the Exiting
Market to the Receiving Market. New Rule 2304(a) provides that the
Transitioning Contracts will be automatically redesignated such that
they become Contracts under the Market Rules of the Receiving Market
and are no longer Contracts under the Market Rules of the Exiting
Market. Under the Rule, the redesignated Contracts remain in full force
and effect as between the relevant Clearing Member and the Clearing
House.
New Rule 2304(b) further addresses the situation where the
Receiving Market is a U.S. designated contract market and the Exiting
Market is not. In that case, in order to comply with relevant
segregation requirements under Section 4d of the U.S. Commodity
Exchange Act, Transitioning Contracts registered in the Non-DCM/Swap
Customer Account of an FCM/BD Clearing Member will be automatically
transferred to the DCM Customer Account of such FCM/BD Clearing Member;
and FCM/BD Customer Collateral in respect of such open Transitioning
Contracts will be held in the Clearing House DCM Segregated Account as
FCM/BD U.S. Futures Customer Collateral under the Rules.
In connection with the announced transition between ICE Futures
Europe and ICE Futures US, ICE Clear Europe will issue a Circular
indicating the specific contracts that are to be Transitioning
Contracts and the Transition Time for purposes of Part 23 of the Rules.
ICE Clear Europe has attached as Exhibit 5 hereto the list of
Transitioning Contracts. The Transition Time is expected to be on or
about February 18, 2018.
(b) Statutory Basis
ICE Clear Europe believes that the changes described herein are
consistent with the requirements of Section 17A of the Act \7\ and the
regulations thereunder applicable to it, and in particular 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.\8\ ICE Clear
Europe is implementing the amendments in order to facilitate the
transition of the Transitioning Contracts from one Market to another in
a manner designed to minimize any impact on Clearing Members and their
customers. The Transitioning Contracts will continue to be eligible for
clearing at ICE Clear Europe, and the terms and conditions of such
contracts are not changing in any material respect. The Transitioning
Contracts will be cleared by ICE Clear Europe in substantially the same
manner as before the transition (other than with respect to the class
of customer account, as discussed herein). With respect to the
safeguarding of securities and funds in the custody or control of ICE
Clear Europe, the Transitioning Contracts will become traded on ICE
Futures US, a designated contract market under the Commodity Exchange
Act, and as such will become subject to the segregation requirements
under that act. Accordingly, the amendments provide that customer
positions in Transitioning Contracts will, following the transition, be
held in the DCM Customer Account and the associated margin will be held
in the Clearing House DCM Segregated Account as FCM/BD U.S. Futures
Customer Collateral. For the foregoing reasons, ICE Clear Europe
believes that the amendments are consistent with the requirements of
Section 17A(b)(3)(F) and the regulations of the Commission thereunder.
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\7\ 15 U.S.C. 78q-1.
\8\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Clearing Agency'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 purpose of the Act. The
amendments solely are designed to facilitate the transition of the
Transitioning Contracts from one Market to another, as requested by
such markets. As a result, ICE Clear Europe does not believe the
amendments would adversely affect Clearing Members, materially affect
the cost of clearing, adversely affect access to clearing in F&O
Contracts for Clearing Members or their customers, or otherwise
adversely affect competition in clearing services. Accordingly, ICE
Clear Europe does not believe that the amendments would impose any
impact or burden on competition that is not appropriate in furtherance
of the purpose of the Act.
(C) Clearing Agency'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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \9\ and paragraph (f) of Rule 19b-4 \10\
thereunder. 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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f).
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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:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml) or
Send an email to [email protected]. Please include
File Number SR-ICEEU-2018-003 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-2018-003. 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
[[Page 7092]]
internet website (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 website 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 website at https://www.theice.com/clear-europe/regulation#rule-filings.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICEEU-2018-003 and should be
submitted on or before March 9, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2018-03200 Filed 2-15-18; 8:45 am]
BILLING CODE 8011-01-P
