Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the Futures & Options Guaranty Fund Policy, 14903-14905 [2018-07011]
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Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to Section
19(b)(3)(A) of the Act 7 and Rule 19b–
4(f)(6) thereunder.8
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 9 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 10
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has
requested that the Commission waive
the 30-day operative delay so that the
proposed rule change may become
operative upon filing. The Commission
notes that the proposed rule change
provides that the Fund will no longer be
listed and traded in accordance with the
Order, but will instead be listed and
traded in accordance with the generic
listing standards under Nasdaq Rule
5705(b), which include the initial and
continued listing standards for Index
Fund Shares.11 Waiver of the operative
delay would allow the Fund to begin to
operate under such generic listing
standards without delay. The
Commission believes that waiver of the
30-day operative delay is consistent
with the protection of investors and the
public interest. Accordingly, the
Commission hereby waives the
operative delay and designates the
proposed rule change operative upon
filing.12
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
7 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Commission
has waived this requirement.
9 17 CFR 240.19b–4(f)(6).
10 17 CFR 240.19b–4(f)(6)(iii).
11 The Exchange represents that the Fund meets
such generic listing standards.
12 For purposes only of waiving the 30-day
operative delay, the Commission also has
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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8 17
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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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
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:
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–
NASDAQ–2018–026 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–NASDAQ–2018–026. 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 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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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
PO 00000
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Fmt 4703
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14903
to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2018–026, and
should be submitted on or before April
27, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Brent J. Fields,
Secretary.
[FR Doc. 2018–07018 Filed 4–5–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–82979; File No. SR–ICEEU–
2018–005]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating to
Amendments to the Futures & Options
Guaranty Fund Policy
April 2, 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 March 19,
2018, ICE Clear Europe Limited (‘‘ICE
Clear Europe’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the proposed rule
change described in Items I, II and III
below, which Items have been prepared
by ICE Clear Europe. ICE Clear Europe
filed the proposed rule change 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.5
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change, Security-Based Swap
Submission, or Advance Notice
ICE Clear Europe proposes to make
certain amendments to its policies
relating to its Clearing House Futures &
Options (‘‘F&O’’) Initial Contribution to
default resources.
13 17
CFR 200.30–3(a)(12).
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).
5 Capitalized terms used herein but not otherwise
defined have the meaning set forth in the ICE Clear
Europe rulebook, which is available at https://
www.theice.com/clear-europe/regulation#rulebook.
1 15
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14904
Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
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.
daltland on DSKBBV9HB2PROD with NOTICES
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
(a) Purpose
ICE Clear Europe is taking certain
steps to increase its Clearing House F&O
Initial Contribution to default resources.
The Clearing House F&O Initial
Contribution is used to cover losses
arising from the default of an F&O
Clearing Member, and would be applied
following the use of the defaulter’s own
margin and guaranty fund contributions,
and prior to the application of guaranty
fund contributions of non-defaulting
F&O Clearing Members. Currently, the
Clearing House F&O Initial Contribution
is set in the F&O Guaranty Fund Policy
(the ‘‘Policy’’) at a fixed level. ICE Clear
Europe is proposing to modify the
Policy to remove the fixed level, and to
provide that ICE Clear Europe will
notify Clearing Members by circular of
its contribution level in effect from time
to time.
In connection with these changes, ICE
Clear Europe expects to increase the
Clearing House F&O Initial
Contribution, and will notify F&O
Clearing Members of the exact amount
by circular.
The increased Clearing House F&O
Initial Contribution reflects an
agreement among ICE Clear Europe and
the exchanges for which it currently
clears F&O Contracts (ICE Futures
Europe, ICE Futures U.S., Inc., ICE
Endex Markets B.V. and ICE Endex Gas
Spot Ltd.) that those exchanges should
contribute to the aggregate Clearing
House F&O Initial Contribution. (The
exchange contributions will be in
addition to ICE Clear Europe’s existing
contribution.) In ICE Clear Europe’s
view, the exchange contributions will
enhance the risk practices of, and the
risk sharing between, the exchanges, the
F&O Clearing Members, and ICE Clear
Europe itself, and create an incentive for
exchanges to operate fair and orderly
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markets and to build liquidity in
stressed market conditions. Under this
approach, each exchange will make a
contribution pursuant to a formula
based on the average F&O guaranty fund
contribution of F&O Clearing Members,
subject to a minimum contribution. The
clearing services agreements between
ICE Clear Europe and each of the
relevant exchanges will be amended to
reflect this requirement.
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments are consistent
with the requirements of Section 17A of
the Act 6 and the regulations thereunder
applicable to it, including the standards
under Rule 17Ad–22.7 Section
17A(b)(3)(F) of the Act 8 requires, among
other things, that the rules of a 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,
the safeguarding of securities and funds
in the custody or control of the clearing
agency or for which it is responsible,
and the protection of investors and the
public interest.
As discussed above, the amendments
are designed to increase the Clearing
House’s overall financial resources to
cover losses from a default of an F&O
Clearing Member. In particular, the
amendments increase the amount of
F&O default resources that will be
available to be applied after the
exhaustion of the defaulting Clearing
Member’s margin and guaranty fund
contributions, and prior to the use of
guaranty fund contributions of nondefaulting Clearing Members. Moreover,
the amendments enhance the protection
of guaranty fund contributions made by
non-defaulting F&O Clearing Members
by reducing the likelihood that ICE
Clear Europe would need to use such
contributions in the event of an F&O
Clearing Member default. The
amendments thus support the prompt
and accurate clearance and settlement of
cleared transactions and the protection
of Clearing Members and other market
participants. As a result, in ICE Clear
Europe’s view, the amendments are
consistent with the requirements of
Section 17A(b)(3)(F) of the Act.9 For
similar reasons, ICE Clear Europe
believes that the amendments are also
consistent with the requirements of Rule
U.S.C. 78q–1.
CFR 240.17Ad–22.
8 15 U.S.C. 78q–1(b)(3)(F).
9 15 U.S.C. 78q–1(b)(3)(F).
17Ad–22(b)(3) 10 and Rule 17Ad–
22(e)(4).11
In addition, as noted above, the
amendments are designed to enhance
the overall risk management of the
Clearing House by aligning the risk
objectives of the exchanges that submit
F&O Contracts for clearing with those of
the Clearing House. In particular, the
amendments, by requiring a
contribution from such exchanges, are
intended to create an incentive for those
exchanges to operate fair and orderly
markets and to build liquidity in
stressed market conditions. In ICE Clear
Europe’s view, the amendments are thus
consistent with the risk management
requirements of Rule 17Ad–22(e)(3).12
The amendments will apply to all
exchanges based on an objective
formula for determining the
contribution, and accordingly are not
designed to permit unfair
discrimination among particular
exchanges, or market participants using
such exchanges, within the meaning of
Section 17A(b)(3)(F) of the Act.13
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed rule change would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The changes are
being proposed in order to enhance the
Clearing House’s overall F&O default
resources, and better align the risk
objectives of the Clearing House and the
exchanges for which it clears. Although
the amendments will impose additional
costs on such exchanges through the
required exchange contribution, ICE
Clear Europe believes that such
additional costs appropriately reflect the
risk brought to the Clearing House from
F&O Contracts traded on such
exchanges. Such contributions would
apply to all exchanges that submit F&O
contracts to the Clearing House, based
on an objective formula, and are not
intended to disadvantage any particular
submitting exchange or trading venue.
In addition, the amendments will not
directly impose additional costs on F&O
Clearing Members or market
participants. Although exchanges could
pass certain additional costs to F&O
Clearing Members or other market
participants through exchange fees, ICE
Clear Europe does not believe this
possibility would adversely affect
competition among Clearing Members
6 15
10 17
7 17
11 17
PO 00000
Frm 00063
Fmt 4703
Sfmt 4703
CFR 240.17Ad–22(b)(3).
CFR 240.17Ad–22(e)(4).
12 17 CFR 240.17Ad–22(e)(3).
13 15 U.S.C. 78q–1(b)(3)(F).
E:\FR\FM\06APN1.SGM
06APN1
Federal Register / Vol. 83, No. 67 / Friday, April 6, 2018 / Notices
or other market participants, or
otherwise affect the appropriateness of
the exchange contributions in light of
the considerations set out above. In ICE
Clear Europe’s view, the amendments
would also not affect access to clearing
or the market for cleared services
generally. As a result, ICE Clear Europe
believes that any impact on competition
is appropriate in furtherance of the
purposes 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 amendments have not been
solicited or received by ICE Clear
Europe. ICE Clear Europe will notify the
Commission of any comments received
with respect to the proposed rule
change.
III. Date of Effectiveness of the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
and Timing for Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 14 and paragraph (f) of Rule
19b–4 15 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, security-based swap submission
or advance notice 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–
ICEEU–2018–005 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–2018–005. This file
U.S.C. 78s(b)(3)(A).
15 17 CFR 240.19b–4.
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 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, security-based swap submission
or advance notice that are filed with the
Commission, and all written
communications relating to the
proposed rule change, security-based
swap submission or advance notice
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/notices/Notices.shtml?
regulatoryFilings.
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–2018–005
and should be submitted on or before
April 27, 2018.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018–07011 Filed 4–5–18; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
Surrender of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration under the Small
Business Investment Act of 1958, as
amended, under Section 309 of the Act
and Section 107.1900 of the Small
Business Administration Rules and
Regulations (13 CFR 107.1900) to
function as a small business investment
14 15
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19:21 Apr 05, 2018
16 17
Jkt 244001
PO 00000
CFR 200.30–3(a)(12).
Frm 00064
Fmt 4703
Sfmt 4703
14905
company under the Small Business
Investment Company License No. 02/
02–0672 issued to Ares Venture
Finance, L.P., said license is hereby
declared null and void.
United States Small Business
Administration.
Dated: April 2, 2018.
A. Joseph Shepard,
Associate Administrator for Investment and
Innovation.
[FR Doc. 2018–07013 Filed 4–5–18; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Surrender of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration under the Small
Business Investment Act of 1958, as
amended, under Section 309 of the Act
and Section 107.1900 of the Small
Business Administration Rules and
Regulations (13 CFR 107.1900) to
function as a small business investment
company under the Small Business
Investment Company License No. 02/
02–0598 issued to Falcon Private
Equity, L.P., said license is hereby
declared null and void.
United States Small Business
Administration.
Dated: April 2, 2018.
A. Joseph Shepard,
Associate Administrator for Investment and
Innovation.
[FR Doc. 2018–07015 Filed 4–5–18; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
Surrender of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration under the Small
Business Investment Act of 1958, as
amended, under Section 309 of the Act
and Section 107.1900 of the Small
Business Administration Rules and
Regulations (13 CFR 107.1900) to
function as a small business investment
company under the Small Business
Investment Company License No. 01/
01–0413 issued to BCA Mezzanine
Fund, L.P., said license is hereby
declared null and void.
United States Small Business
Administration.
Dated: April 2, 2018.
E:\FR\FM\06APN1.SGM
06APN1
]]>Agencies
[Federal Register Volume 83, Number 67 (Friday, April 6, 2018)]
[Notices]
[Pages 14903-14905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07011]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-82979; File No. SR-ICEEU-2018-005]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Amendments to the Futures & Options Guaranty Fund Policy
April 2, 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 March 19, 2018, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I, II and III below, which
Items have been prepared by ICE Clear Europe. ICE Clear Europe filed
the proposed rule change 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.\5\
---------------------------------------------------------------------------
\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).
\5\ Capitalized terms used herein but not otherwise defined have
the meaning set forth in the ICE Clear Europe rulebook, which is
available at https://www.theice.com/clear-europe/regulation#rulebook.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice
ICE Clear Europe proposes to make certain amendments to its
policies relating to its Clearing House Futures & Options (``F&O'')
Initial Contribution to default resources.
[[Page 14904]]
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission or
Advance Notice
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, Security-Based Swap Submission or
Advance Notice
(a) Purpose
ICE Clear Europe is taking certain steps to increase its Clearing
House F&O Initial Contribution to default resources. The Clearing House
F&O Initial Contribution is used to cover losses arising from the
default of an F&O Clearing Member, and would be applied following the
use of the defaulter's own margin and guaranty fund contributions, and
prior to the application of guaranty fund contributions of non-
defaulting F&O Clearing Members. Currently, the Clearing House F&O
Initial Contribution is set in the F&O Guaranty Fund Policy (the
``Policy'') at a fixed level. ICE Clear Europe is proposing to modify
the Policy to remove the fixed level, and to provide that ICE Clear
Europe will notify Clearing Members by circular of its contribution
level in effect from time to time.
In connection with these changes, ICE Clear Europe expects to
increase the Clearing House F&O Initial Contribution, and will notify
F&O Clearing Members of the exact amount by circular.
The increased Clearing House F&O Initial Contribution reflects an
agreement among ICE Clear Europe and the exchanges for which it
currently clears F&O Contracts (ICE Futures Europe, ICE Futures U.S.,
Inc., ICE Endex Markets B.V. and ICE Endex Gas Spot Ltd.) that those
exchanges should contribute to the aggregate Clearing House F&O Initial
Contribution. (The exchange contributions will be in addition to ICE
Clear Europe's existing contribution.) In ICE Clear Europe's view, the
exchange contributions will enhance the risk practices of, and the risk
sharing between, the exchanges, the F&O Clearing Members, and ICE Clear
Europe itself, and create an incentive for exchanges to operate fair
and orderly markets and to build liquidity in stressed market
conditions. Under this approach, each exchange will make a contribution
pursuant to a formula based on the average F&O guaranty fund
contribution of F&O Clearing Members, subject to a minimum
contribution. The clearing services agreements between ICE Clear Europe
and each of the relevant exchanges will be amended to reflect this
requirement.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments are
consistent with the requirements of Section 17A of the Act \6\ and the
regulations thereunder applicable to it, including the standards under
Rule 17Ad-22.\7\ Section 17A(b)(3)(F) of the Act \8\ requires, among
other things, that the rules of a 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, the safeguarding of securities and funds
in the custody or control of the clearing agency or for which it is
responsible, and the protection of investors and the public interest.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
\7\ 17 CFR 240.17Ad-22.
\8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
As discussed above, the amendments are designed to increase the
Clearing House's overall financial resources to cover losses from a
default of an F&O Clearing Member. In particular, the amendments
increase the amount of F&O default resources that will be available to
be applied after the exhaustion of the defaulting Clearing Member's
margin and guaranty fund contributions, and prior to the use of
guaranty fund contributions of non-defaulting Clearing Members.
Moreover, the amendments enhance the protection of guaranty fund
contributions made by non-defaulting F&O Clearing Members by reducing
the likelihood that ICE Clear Europe would need to use such
contributions in the event of an F&O Clearing Member default. The
amendments thus support the prompt and accurate clearance and
settlement of cleared transactions and the protection of Clearing
Members and other market participants. As a result, in ICE Clear
Europe's view, the amendments are consistent with the requirements of
Section 17A(b)(3)(F) of the Act.\9\ For similar reasons, ICE Clear
Europe believes that the amendments are also consistent with the
requirements of Rule 17Ad-22(b)(3) \10\ and Rule 17Ad-22(e)(4).\11\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1(b)(3)(F).
\10\ 17 CFR 240.17Ad-22(b)(3).
\11\ 17 CFR 240.17Ad-22(e)(4).
---------------------------------------------------------------------------
In addition, as noted above, the amendments are designed to enhance
the overall risk management of the Clearing House by aligning the risk
objectives of the exchanges that submit F&O Contracts for clearing with
those of the Clearing House. In particular, the amendments, by
requiring a contribution from such exchanges, are intended to create an
incentive for those exchanges to operate fair and orderly markets and
to build liquidity in stressed market conditions. In ICE Clear Europe's
view, the amendments are thus consistent with the risk management
requirements of Rule 17Ad-22(e)(3).\12\ The amendments will apply to
all exchanges based on an objective formula for determining the
contribution, and accordingly are not designed to permit unfair
discrimination among particular exchanges, or market participants using
such exchanges, within the meaning of Section 17A(b)(3)(F) of the
Act.\13\
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\12\ 17 CFR 240.17Ad-22(e)(3).
\13\ 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 rule change would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The changes are
being proposed in order to enhance the Clearing House's overall F&O
default resources, and better align the risk objectives of the Clearing
House and the exchanges for which it clears. Although the amendments
will impose additional costs on such exchanges through the required
exchange contribution, ICE Clear Europe believes that such additional
costs appropriately reflect the risk brought to the Clearing House from
F&O Contracts traded on such exchanges. Such contributions would apply
to all exchanges that submit F&O contracts to the Clearing House, based
on an objective formula, and are not intended to disadvantage any
particular submitting exchange or trading venue. In addition, the
amendments will not directly impose additional costs on F&O Clearing
Members or market participants. Although exchanges could pass certain
additional costs to F&O Clearing Members or other market participants
through exchange fees, ICE Clear Europe does not believe this
possibility would adversely affect competition among Clearing Members
[[Page 14905]]
or other market participants, or otherwise affect the appropriateness
of the exchange contributions in light of the considerations set out
above. In ICE Clear Europe's view, the amendments would also not affect
access to clearing or the market for cleared services generally. As a
result, ICE Clear Europe believes that any impact on competition is
appropriate in furtherance of the purposes 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 amendments have not been
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any comments received with respect to the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change, Security-Based
Swap Submission or Advance Notice and Timing for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4 \15\
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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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4.
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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, security-based swap submission or advance notice 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-2018-005 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-2018-005. 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 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, security-based
swap submission or advance notice that are filed with the Commission,
and all written communications relating to the proposed rule change,
security-based swap submission or advance notice 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/notices/Notices.shtml?regulatoryFilings.
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-2018-005 and should be
submitted on or before April 27, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2018-07011 Filed 4-5-18; 8:45 am]
BILLING CODE 8011-01-P
