Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Amendments to the Recovery Plan and Wind-Down Plan, 55219-55221 [2018-23968]
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
and CSPN no longer recommends that a
529 savings plan include three-year
performance information.33
Commenters suggested that the MSRB
harmonize Form G–45 with the
disclosure principles,34 and that
continuing to provide this information
to the MSRB would not be helpful to
investors and would be burdensome to
produce.35 In addition, three-year
performance information is not required
by the SEC for mutual funds.
The MBRB agrees with commenters’
suggestion, and the proposed rule
change would delete this requirement.
Form G–45, even without the three-year
performance data, would continue to
provide the MSRB with sufficient
performance information to assist the
MSRB with its analysis of the 529
savings plan and ABLE program
industries. Further, the suggestion
would result in cost savings for those
industries.
iv. Economic Analysis
Commenters confirmed that there is
limited burden associated with
providing investment option closing
date information to the MSRB. As to the
program management fee, commenters
generally agree that it would be less
burdensome to report than the
benchmark performance and investment
return data elements. While the MSRB
agrees with ICI and other commenters 36
that expenses may be incurred by
underwriters to redesign the current
reporting system to report the program
management fee separately, the MSRB
believes the incurred expenses would
likely be one-time only and should not
be too burdensome for the industry. In
addition, the percentage of the program
management fee itself is already
disclosed to the SEC, as the underlying
mutual fund in which an investment
option invests is required to disclose the
percentage of the program management
fee in the disclosure documents that it
submits to the SEC.
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 of
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
33 See
note 11.
ICI letter and SIFMA letter.
35 See SIFMA letter.
36 See the Letters from Ascensus College Savings
and American Funds.
34 See
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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:
55219
be submitted on or before November 23,
2018.
For the Commission, pursuant to delegated
authority.37
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23966 Filed 11–1–18; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84498; File No. SR–ICEEU–
2018–014]
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–
MSRB–2018–08 on the subject line.
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change Relating to
Amendments to the Recovery Plan and
Wind-Down Plan
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–MSRB–2018–08. 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 MSRB. 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–MSRB–2018–08 and should
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934, as
amended (‘‘Act’’),1 and Rule 19b–4
thereunder,2 notice is hereby given that
on October 16, 2018, ICE Clear Europe
Limited (‘‘ICE Clear Europe’’ or the
‘‘Clearing House’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
changes described in Items I and II
below, which Items have been prepared
primarily by ICE Clear Europe. ICE Clear
Europe filed the proposed rule change
pursuant to Section 19(b)(3)(A) 3 of the
Act and Rule 19b–4(f)(6) 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.
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
October 29, 2018.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
ICE Clear Europe proposes to make
certain updates to its Recovery Plan and
Wind-Down Plan. The revisions do not
involve any changes to the ICE Clear
Europe Clearing Rules or Procedures.5
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
37 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)(6).
5 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
Europe Clearing Rules (the ‘‘Rules’’).
1 15
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
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 Clear Europe is proposing to make
certain updates and amendments to its
Recovery Plan and Wind-Down Plan.
The amendments principally reflect
certain changes in the Clearing House’s
treasury arrangements and related
service providers, such as custody
banks, investment agents and settlement
banks, that are described in the current
Recovery Plan and Wind-Down Plan.
Recovery Plan
Specifically, the discussion of
Treasury Services in the Recovery Plan
has been revised to reflect that ICE Clear
Europe has appointed a number of
concentration banks, custodians and
APS banks to support the treasury
function, and to reflect that the current
list of such persons from time to time is
made available on the Clearing House
website. The amendments accordingly
remove from the Recovery Plan certain
references to specific banks.
Similarly, lists of key service
providers have been updated to refer to
the general categories of investment
agents, custodians, custody agents, APS
banks and central banks, to avoid the
need to mention specific institutions in
these categories and accordingly
facilitate keeping the plan up to date.
Corresponding changes have been made
in appendices to the Recovery Plan to
update references to various institutions
that provide treasury services to ICE
Clear Europe, including an additional
investment agent. In ICE Clear Europe’s
view, the amendments will facilitate use
by the Clearing House of additional
service providers, consistent with other
ICE Clear Europe policies and
procedures, which will help the
Clearing House appropriately manage
credit, operational and other risks from
treasury operations.
Wind-Down Plan
Similar updates are proposed to be
made to the Wind-Down Plan. The
discussion concerning termination of
various service agreements during winddown has been revised to refer more
generally to the appointed investment
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17:57 Nov 01, 2018
Jkt 247001
agents, custodians, custody agents and
settlement banks that may be used by
the Clearing House at the time (rather
than referring to specific institutions).
The revisions also refer to the
termination provisions (including notice
requirements) of the particular
agreements between ICE Clear Europe
and those institutions. These
amendments will facilitate keeping the
Wind-Down Plan up to date as treasury
service providers change from time to
time. The amendments also add
references to the Dutch National Bank as
an additional central bank used as a
concentration bank.
(b) Statutory Basis
ICEU 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. In addition, Rule 17Ad–
22(e)(3)(ii) 9 requires that each covered
clearing agency shall establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to, as applicable,
maintain a sound risk management
framework for comprehensively
managing legal, credit, liquidity,
operational, general business,
investment, custody, and other risks
that arise in or are borne by the covered
clearing agency, which includes plans
for the recovery and orderly wind-down
of the covered clearing agency
necessitated by credit losses, liquidity
shortfalls, losses from general business
risk, or any other losses.
The amendments to the Recovery Plan
and Wind-Down Plan are designed to
update certain provisions relating to
treasury arrangements of the Clearing
House, principally to address changes in
treasury service providers (such as
custody banks, settlement banks and
investment agents) currently referred to
in the plans. The changes will also
facilitate keeping the Recovery and
Wind-Down Plan up to date as certain
6 15
U.S.C. 78q–1.
CFR 240.17Ad–22.
8 15 U.S.C. 78q–1(b)(3)(F).
9 17 CFR 240.17Ad–22(e)(3)(ii).
7 17
PO 00000
Frm 00079
Fmt 4703
Sfmt 4703
treasury service providers change from
time to time, and facilitate use by the
Clearing House of additional service
providers to manage risks from treasury
operations. The amendments do not
otherwise affect the substantive
provisions and procedures detailed in
the Recovery Plan or the Wind-Down
Plan for addressing recovery or winddown as a result of credit losses,
liquidity shortfalls, losses from general
business risk or other losses, including
the triggers for invoking recovery or
wind-down procedures. The
amendments also do not affect the
recovery and wind-down tools and
options available to the Clearing House
to address severe loss events, or the
planned sequence or scope of recovery
or wind-down actions that ICE Clear
Europe may take in a loss scenario. As
a result, in ICE Clear Europe’s view, the
amended Recovery Plan and WindDown Plan will continue to satisfy the
requirements of Section 17A(b)(3)(F) of
the Act 10 and Rule 17Ad–22(e)(3)(ii).11
In addition, ICE Clear Europe does not
believe the amendments will affect the
costs of recovery or wind-down, and
therefore is of the view that its equity
capital remains sufficient to satisfy the
requirements of Rule 17Ad–22(e)(15)
under the revised plans.12
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed amendments would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The amendments
update certain provisions relating to
service providers for Clearing House
treasury operations, and do not
otherwise change the substantive
provisions of the Recovery Plan or the
Wind-Down Plan. The amendments do
not change the rights or obligations of
10 15
U.S.C. 78q–1(b)(3)(F).
CFR 270.17Ad–22(e)(3)(ii).
12 17 CFR 270.17Ad–22(e)(15). Rule 17Ad–
22(e)(15) requires the covered clearing agency to
hold sufficient liquid net assets funded by equity
to cover potential general business losses so that the
covered clearing agency can continue operations
and services as a going concern if those losses
materialize, including by (i) determining the
amount of liquid net assets funded by equity based
upon its general business risk profile and the length
of time required to achieve a recovery or orderly
wind-down, as appropriate, of its critical operations
and services if such action is taken, and (ii) holding
liquid net assets funded by equity equal to the
greater of either (x) six months of the covered
clearing agency’s current operating expenses, or (y)
the amount determined by the board of directors to
be sufficient to ensure a recovery or orderly winddown of critical operations and services of the
covered clearing agency, as contemplated by the
recovery and wind-down plans established under
Rule 17Ad–22(e)(3)(ii).
11 17
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Federal Register / Vol. 83, No. 213 / Friday, November 2, 2018 / Notices
the Clearing House or Clearing Members
under the Rules and Procedures. As a
result, ICE Clear Europe does not
believe the amendments will impact
competition among Clearing Members
or other market participants, affect the
cost of clearing or affect the ability of
market participants to access clearing
generally.
(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 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)(iii) of
the Act 13 and Rule 19b–4(f)(6)
thereunder.14
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–2018–014 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–2018–014. 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 Section, 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–2018–014 and
should be submitted on or before
November 23, 2018.
13 15
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Eduardo A. Aleman,
Assistant Secretary.
14 17
[FR Doc. 2018–23968 Filed 11–1–18; 8:45 am]
U.S.C. 78s19(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
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. ICE Clear Europe has satisfied this
requirement.
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BILLING CODE 8011–01–P
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00080
Fmt 4703
Sfmt 4703
55221
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–519, OMB Control No.
3235–0578]
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Form N–Q
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘Paperwork
Reduction Act’’), the Securities and
Exchange Commission (the
‘‘Commission’’) has submitted to the
Office of Management and Budget a
request for extension of the previously
approved collection of information
discussed below.
Form N–Q (17 CFR 249.332 and
274.130) is a reporting form used by
registered management investment
companies, other than small business
investment companies registered on
Form N–5 (‘‘funds’’), under Section
30(b) of the Investment Company Act of
1940 (15 U.S.C. 80a–1 et seq.)
(‘‘Investment Company Act’’) and
Sections 13(a) or 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). Pursuant to Rule 30b1–5 under the
Investment Company Act (17 CFR
270.30b1–5), funds are required to file
quarterly reports with the Commission
on Form N–Q not more than 60 days
after the close of the first and third
quarters of each fiscal year containing
their complete portfolio holdings.
Additionally, fund management is
required to evaluate the effectiveness of
the fund’s disclosure controls and
procedures within the 90-day period
prior to the filing of a report on Form
N–Q, and such report must also be
signed and certified by the fund’s
principal executive and financial
officers.
We estimate that there are 11,960
funds required to file reports on Form
N–Q. Based on staff experience and
conversations with industry
representatives, we estimate that it takes
approximately 26 hours per fund to
prepare reports on Form N–Q annually.
Accordingly, we estimate that the total
annual burden associated with Form
N–Q is 310,960 hours (26 hours per
fund × 11,960 funds) per year.
The estimates of average burden hours
are made solely for the purposes of the
Paperwork Reduction Act and are not
derived from a comprehensive or even
E:\FR\FM\02NON1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 213 (Friday, November 2, 2018)]
[Notices]
[Pages 55219-55221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23968]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-84498; File No. SR-ICEEU-2018-014]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Amendments to the Recovery Plan and Wind-Down Plan
October 29, 2018.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934, as amended (``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is
hereby given that on October 16, 2018, ICE Clear Europe Limited (``ICE
Clear Europe'' or the ``Clearing House'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule changes
described in Items I and II below, which Items have been prepared
primarily by ICE Clear Europe. ICE Clear Europe filed the proposed rule
change pursuant to Section 19(b)(3)(A) \3\ of the Act and Rule 19b-
4(f)(6) 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)(6).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
ICE Clear Europe proposes to make certain updates to its Recovery
Plan and Wind-Down Plan. The revisions do not involve any changes to
the ICE Clear Europe Clearing Rules or Procedures.\5\
---------------------------------------------------------------------------
\5\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Clearing Rules (the
``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
[[Page 55220]]
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 Clear Europe is proposing to make certain updates and
amendments to its Recovery Plan and Wind-Down Plan. The amendments
principally reflect certain changes in the Clearing House's treasury
arrangements and related service providers, such as custody banks,
investment agents and settlement banks, that are described in the
current Recovery Plan and Wind-Down Plan.
Recovery Plan
Specifically, the discussion of Treasury Services in the Recovery
Plan has been revised to reflect that ICE Clear Europe has appointed a
number of concentration banks, custodians and APS banks to support the
treasury function, and to reflect that the current list of such persons
from time to time is made available on the Clearing House website. The
amendments accordingly remove from the Recovery Plan certain references
to specific banks.
Similarly, lists of key service providers have been updated to
refer to the general categories of investment agents, custodians,
custody agents, APS banks and central banks, to avoid the need to
mention specific institutions in these categories and accordingly
facilitate keeping the plan up to date. Corresponding changes have been
made in appendices to the Recovery Plan to update references to various
institutions that provide treasury services to ICE Clear Europe,
including an additional investment agent. In ICE Clear Europe's view,
the amendments will facilitate use by the Clearing House of additional
service providers, consistent with other ICE Clear Europe policies and
procedures, which will help the Clearing House appropriately manage
credit, operational and other risks from treasury operations.
Wind-Down Plan
Similar updates are proposed to be made to the Wind-Down Plan. The
discussion concerning termination of various service agreements during
wind-down has been revised to refer more generally to the appointed
investment agents, custodians, custody agents and settlement banks that
may be used by the Clearing House at the time (rather than referring to
specific institutions). The revisions also refer to the termination
provisions (including notice requirements) of the particular agreements
between ICE Clear Europe and those institutions. These amendments will
facilitate keeping the Wind-Down Plan up to date as treasury service
providers change from time to time. The amendments also add references
to the Dutch National Bank as an additional central bank used as a
concentration bank.
(b) Statutory Basis
ICEU 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. In addition, Rule
17Ad-22(e)(3)(ii) \9\ requires that each covered clearing agency shall
establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable, maintain a sound risk
management framework for comprehensively managing legal, credit,
liquidity, operational, general business, investment, custody, and
other risks that arise in or are borne by the covered clearing agency,
which includes plans for the recovery and orderly wind-down of the
covered clearing agency necessitated by credit losses, liquidity
shortfalls, losses from general business risk, or any other losses.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
\7\ 17 CFR 240.17Ad-22.
\8\ 15 U.S.C. 78q-1(b)(3)(F).
\9\ 17 CFR 240.17Ad-22(e)(3)(ii).
---------------------------------------------------------------------------
The amendments to the Recovery Plan and Wind-Down Plan are designed
to update certain provisions relating to treasury arrangements of the
Clearing House, principally to address changes in treasury service
providers (such as custody banks, settlement banks and investment
agents) currently referred to in the plans. The changes will also
facilitate keeping the Recovery and Wind-Down Plan up to date as
certain treasury service providers change from time to time, and
facilitate use by the Clearing House of additional service providers to
manage risks from treasury operations. The amendments do not otherwise
affect the substantive provisions and procedures detailed in the
Recovery Plan or the Wind-Down Plan for addressing recovery or wind-
down as a result of credit losses, liquidity shortfalls, losses from
general business risk or other losses, including the triggers for
invoking recovery or wind-down procedures. The amendments also do not
affect the recovery and wind-down tools and options available to the
Clearing House to address severe loss events, or the planned sequence
or scope of recovery or wind-down actions that ICE Clear Europe may
take in a loss scenario. As a result, in ICE Clear Europe's view, the
amended Recovery Plan and Wind-Down Plan will continue to satisfy the
requirements of Section 17A(b)(3)(F) of the Act \10\ and Rule 17Ad-
22(e)(3)(ii).\11\ In addition, ICE Clear Europe does not believe the
amendments will affect the costs of recovery or wind-down, and
therefore is of the view that its equity capital remains sufficient to
satisfy the requirements of Rule 17Ad-22(e)(15) under the revised
plans.\12\
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78q-1(b)(3)(F).
\11\ 17 CFR 270.17Ad-22(e)(3)(ii).
\12\ 17 CFR 270.17Ad-22(e)(15). Rule 17Ad-22(e)(15) requires the
covered clearing agency to hold sufficient liquid net assets funded
by equity to cover potential general business losses so that the
covered clearing agency can continue operations and services as a
going concern if those losses materialize, including by (i)
determining the amount of liquid net assets funded by equity based
upon its general business risk profile and the length of time
required to achieve a recovery or orderly wind-down, as appropriate,
of its critical operations and services if such action is taken, and
(ii) holding liquid net assets funded by equity equal to the greater
of either (x) six months of the covered clearing agency's current
operating expenses, or (y) the amount determined by the board of
directors to be sufficient to ensure a recovery or orderly wind-down
of critical operations and services of the covered clearing agency,
as contemplated by the recovery and wind-down plans established
under Rule 17Ad-22(e)(3)(ii).
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(B) Clearing Agency's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed amendments would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The amendments
update certain provisions relating to service providers for Clearing
House treasury operations, and do not otherwise change the substantive
provisions of the Recovery Plan or the Wind-Down Plan. The amendments
do not change the rights or obligations of
[[Page 55221]]
the Clearing House or Clearing Members under the Rules and Procedures.
As a result, ICE Clear Europe does not believe the amendments will
impact competition among Clearing Members or other market participants,
affect the cost of clearing or affect the ability of market
participants to access clearing generally.
(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 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)(iii) of the Act \13\
and Rule 19b-4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s19(b)(3)(A)(iii).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file 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.
ICE Clear Europe has satisfied this requirement.
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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 [email protected]. Please include
File Number SR-ICEEU-2018-014 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-2018-014. 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 Section, 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-2018-014 and should be submitted on or before November 23, 2018.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23968 Filed 11-1-18; 8:45 am]
BILLING CODE 8011-01-P
