Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Delivery Procedures, 7151-7153 [2019-03625]

Download as PDF Federal Register / Vol. 84, No. 41 / Friday, March 1, 2019 / Notices 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 to make available publicly. All submissions should refer to File Number SR–BOX–2019–04 and should be submitted on or before March 11, 2019. Rebuttal comments should be submitted by March 18, 2019. 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. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. VI. Conclusion It is therefore ordered, pursuant to Section 19(b)(3)(C) of the Act,59 that File Number SR–BOX–2019–04 be and hereby is, temporarily suspended. In addition, the Commission is instituting proceedings to determine whether the proposed rule change should be approved or disapproved. 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. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.60 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–03706 Filed 2–28–19; 8:45 am] (A) Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85187; File No. SR–ICEEU– 2019–002] Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Delivery Procedures jbell on DSK30RV082PROD with NOTICES February 25, 2019. 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 15, 2019, 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, II and III below, which Items have been prepared by ICE Clear 59 15 U.S.C. 78s(b)(3)(C). CFR 200.30–3(a)(12), (57), and (58). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 60 17 VerDate Sep<11>2014 18:13 Feb 28, 2019 Jkt 247001 I. Clearing Agency’s Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the proposed amendments is for ICE Clear Europe to to [sic] add delivery terms relating to the ICE Futures Europe (‘‘ICE Futures Europe’’ or ‘‘IFEU’’) Permian West Texas Intermediate Crude Oil Storage Futures Contracts (the ‘‘Contracts’’).5 (a) Purpose ICE Clear Europe is amending its Delivery Procedures to add a new Section 10 and a new Part DD regarding delivery procedures relating to a new Contract that will be traded on ICE Futures Europe and cleared by ICE Clear Europe. New Part DD sets out the delivery specifications and procedures for deliveries of storage capacity under the Contract. Delivery is effected by Magellan Crude Oil Pipeline Company, L.P. (‘‘Magellan’’) providing to the buyer a Capacity Allocation Contract (‘‘CAC’’) 6 for storage of one or more increments of 1,000 barrels of Permian West Texas Intermediate crude oil for a 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 meaning specified in the ICE Clear Europe Clearing Rules (the ‘‘Rules’’). 6 This is a standardized agreement between Magellan and a buyer providing the contractual right to use designated Permian WTI Storage in the delivery month as further detailed in the Permian WTI Storage Contract. 4 17 PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 7151 named calendar month at Magellan’s East Houston terminal (‘‘MEH’’). The amendments also establish standards for the storage provided, as well as relevant procedures for exchange of futures for physical transactions under exchange rules. Part DD addresses certain the responsibilities of the Clearing House and relevant parties for delivery under the Contracts, supplementing the existing provisions of the Rules. Specifically, neither the Clearing House nor ICE Futures Europe are responsible for the performance of Magellan or any person operating MEH, nor do they give any undertaking or warranty to any person as to the effect of the Contract Terms and Delivery Procedures as regards title to Permian WTI Storage. Further, neither the Clearing House nor ICE Futures Europe will have any liability for the condition of the Magellan storage system or for the performance by Magellan or any person who operates such system of any responsibilities they may assume towards Clearing Members or other persons pursuant to the Contract Terms, except for liability for fraud or bad faith or liability which cannot lawfully be excluded. Neither the Clearing House nor ICE Futures Europe has any obligation to any person to ensure the accuracy or availability of any information in Magellan’s records in relation to storage rights arising from CACs in relation to Permian WTI Storage. Part DD addresses delivery margin and invoicing with respect to the Contract and specifies certain details of the delivery process. Delivery of Contracts will be based on open contract positions at the close of trading on the last trading day for which physical delivery is specified. The procedures include a detailed timeframe for relevant notices of intent to deliver or receive, nominations of parties to delivery or receive, delivery confirmations, invoicing, release of delivery margin following completion of delivery and other matters. New Section 10 addresses alternative delivery procedures (ADP) that the parties to a Contract may agree in lieu of the standard delivery arrangements in Part DD and relevant exchange rules. Section 10 addresses procedures for requesting such an alternative arrangement, disclosure of the counterparty (if amenable to an alternative arrangement), and confirmation and settlement of the alternative arrangement. E:\FR\FM\01MRN1.SGM 01MRN1 jbell on DSK30RV082PROD with NOTICES 7152 Federal Register / Vol. 84, No. 41 / Friday, March 1, 2019 / Notices (b) Statutory Basis Section 17A(b)(3)(F) of the Act 7 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. The proposed amendments are designed to facilitate the clearing of a new physically settled crude oil storage futures contract that is being launched for trading by the ICE Futures Europe exchange. The amendments set out the obligations and roles of Clearing Members, the Clearing House and Magellan, the relevant storage facility for purposes of the Contracts. ICE Clear Europe believes that its financial resources, risk management, systems and operational arrangements are sufficient to support clearing of such products (and to address physical delivery under such contracts) and to manage the risks associated with such contracts. As a result, in ICE Clear Europe’s view, the amendments will be consistent with the prompt and accurate clearance and settlement of the Contracts, and the protection of investors and the public interest consistent with the requirements of Section 17A(b)(3)(F) of the Act.8 In ICE Clear Europe’s view, the amendments will not affect the safeguarding of funds or securities in the custody or control of the clearing agency or for which it is responsible, within the meaning of Section 17A(b)(3)(F).9 In addition, Rule 17Ad–22(e)(10) 10 requires that each covered clearing agency establish and maintain transparent written standards that state its obligations with respect to the delivery of physical instruments, and establish and maintain operational practices that identify, monitor and manage the risks associated with such physical deliveries. As discussed above, the amendments to the Delivery Procedures to allow for the delivery and settlement under the Contracts, taken together with the Rules and ICE Futures Europe exchange contract terms, set out the obligations and roles of Clearing Members, the Clearing House and Magellan, the relevant storage facility for purposes of the Contracts. The 7 15 U.S.C. 78q–1(b)(3)(F). U.S.C. 78q–1(b)(3)(F). 9 15 U.S.C. 78q–1(b)(3)(F). 10 17 CFR 240.17Ad–22(e)(10). amendments also adopt relevant procedures for such deliveries, which will facilitate identifying, monitoring and managing risks associated with delivery. (B) Clearing Agency’s Statement on Burden on Competition ICE Clear Europe does not believe the proposed rule changes 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 update the Delivery Procedures in connection with the listing of the Contracts for trading on the ICE Futures Europe market. ICE Clear Europe believes that such contracts will provide opportunities for interested market participants to engage in trading activity in the Permian WTI storage market. ICE Clear Europe does not believe the amendments would adversely affect competition among Clearing Members, materially affect the cost of clearing, adversely affect access to clearing in 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 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 amendments. III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 11 and paragraph (f) of Rule 19b–4 12 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. 8 15 VerDate Sep<11>2014 18:13 Feb 28, 2019 11 15 12 17 Jkt 247001 PO 00000 U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f). Frm 00137 Fmt 4703 Sfmt 4703 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–2019–002 on the subject line. Paper Comments • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–ICEEU–2019–002. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet 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. 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– 2019–002 and should be submitted on or before March 22, 2019. E:\FR\FM\01MRN1.SGM 01MRN1 Federal Register / Vol. 84, No. 41 / Friday, March 1, 2019 / Notices For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.13 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–03625 Filed 2–28–19; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–85189; File No. 4–678] Program for Allocation of Regulatory Responsibilities Pursuant to Rule 17d– 2; Order Approving Proposed Amended Plan for the Allocation of Regulatory Responsibilities Among the Financial Industry Regulatory Authority, Inc., Miami International Securities Exchange, LLC, MIAX PEARL, LLC, and MIAX Emerald, LLC February 25, 2019. jbell on DSK30RV082PROD with NOTICES On December 20, 2018, Miami International Securities Exchange, LLC (‘‘MIAX’’), MIAX PEARL, LLC (‘‘MIAX PEARL’’), MIAX Emerald, LLC (‘‘MIAX Emerald’’) and the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’) (together, the ‘‘Parties’’) filed with the Securities and Exchange Commission (‘‘Commission’’) a plan for the allocation of regulatory responsibilities, dated December 19, 2018 (‘‘Amended 17d–2 Plan’’ or the ‘‘Amended Plan’’). The Amended Plan was published for comment on February 1, 2019.1 The Commission received no comments on the Amended Plan. This order approves and declares effective the Amended Plan. I. Introduction Section 19(g)(1) of the Act,2 among other things, requires every selfregulatory organization (‘‘SRO’’) registered as either a national securities exchange or national securities association to examine for, and enforce compliance by, its members and persons associated with its members with the Act, the rules and regulations thereunder, and the SRO’s own rules, unless the SRO is relieved of this responsibility pursuant to Section 17(d) or Section 19(g)(2) of the Act.3 Without this relief, the statutory obligation of each individual SRO could result in a pattern of multiple examinations of broker-dealers that maintain memberships in more than one SRO (‘‘common members’’). Such regulatory 13 17 CFR 200.30–3(a)(12). Securities Exchange Act Release No. 84997 (January 29, 2019), 84 FR 1252. 2 15 U.S.C. 78s(g)(1). 3 15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), respectively. 1 See VerDate Sep<11>2014 18:13 Feb 28, 2019 Jkt 247001 duplication would add unnecessary expenses for common members and their SROs. Section 17(d)(1) of the Act 4 was intended, in part, to eliminate unnecessary multiple examinations and regulatory duplication.5 With respect to a common member, Section 17(d)(1) authorizes the Commission, by rule or order, to relieve an SRO of the responsibility to receive regulatory reports, to examine for and enforce compliance with applicable statutes, rules, and regulations, or to perform other specified regulatory functions. To implement Section 17(d)(1), the Commission adopted two rules: Rule 17d–1 and Rule 17d–2 under the Act.6 Rule 17d–1 authorizes the Commission to name a single SRO as the designated examining authority (‘‘DEA’’) to examine common members for compliance with the financial responsibility requirements imposed by the Act, or by Commission or SRO rules.7 When an SRO has been named as a common member’s DEA, all other SROs to which the common member belongs are relieved of the responsibility to examine the firm for compliance with the applicable financial responsibility rules. On its face, Rule 17d–1 deals only with an SRO’s obligations to enforce member compliance with financial responsibility requirements. Rule 17d–1 does not relieve an SRO from its obligation to examine a common member for compliance with its own rules and provisions of the federal securities laws governing matters other than financial responsibility, including sales practices and trading activities and practices. To address regulatory duplication in these and other areas, the Commission adopted Rule 17d–2 under the Act.8 Rule 17d–2 permits SROs to propose joint plans for the allocation of regulatory responsibilities with respect to their common members. Under paragraph (c) of Rule 17d–2, the Commission may declare such a plan effective if, after providing for appropriate notice and comment, it determines that the plan is necessary or appropriate in the public interest and for the protection of investors; to foster cooperation and coordination among the 4 15 U.S.C. 78q(d)(1). Securities Act Amendments of 1975, Report of the Senate Committee on Banking, Housing, and Urban Affairs to Accompany S. 249, S. Rep. No. 94– 75, 94th Cong., 1st Session 32 (1975). 6 17 CFR 240.17d–1 and 17 CFR 240.17d–2, respectively. 7 See Securities Exchange Act Release No. 12352 (April 20, 1976), 41 FR 18808 (May 7, 1976). 8 See Securities Exchange Act Release No. 12935 (October 28, 1976), 41 FR 49091 (November 8, 1976). 5 See PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 7153 SROs; to remove impediments to, and foster the development of, a national market system and a national clearance and settlement system; and is in conformity with the factors set forth in Section 17(d) of the Act. Commission approval of a plan filed pursuant to Rule 17d–2 relieves an SRO of those regulatory responsibilities allocated by the plan to another SRO. II. Proposed Amended Plan On November 19, 2014, the Commission declared effective the Plan entered into between FINRA and MIAX for allocating regulatory responsibility pursuant to Rule 17d–2.9 The Plan is intended to reduce regulatory duplication for firms that are common members of both MIAX and FINRA. The plan reduces regulatory duplication for firms that are members of MIAX and FINRA by allocating regulatory responsibility with respect to certain applicable laws, rules, and regulations. Included in the Amended Plan is an exhibit that lists every MIAX rule for which FINRA bears responsibility under the Plan for overseeing and enforcing with respect to MIAX members that are also members of FINRA and the associated persons therewith (‘‘Certification’’). On February 6, 2017, the Commission approved a proposed amendment to the Plan to add MIAX PEARL as a Participant to the Plan.10 On July 24, 2018, the Commission approved a proposed amendment to the Plan to allocate surveillance, investigation, and enforcement responsibilities for Rule 14e–4 under the Act, as well as certain provisions of Regulation SHO.11 On December 20, 2018, the parties submitted a proposed amendment to the Plan. The primary purpose of the amendment is to add MIAX Emerald as a Participant to the Plan. III. Discussion The Commission finds that the proposed Amended Plan is consistent with the factors set forth in Section 17(d) of the Act 12 and Rule 17d–2(c) thereunder 13 in that the proposed Amended Plan is necessary or appropriate in the public interest and for the protection of investors, fosters cooperation and coordination among SROs, and removes impediments to and 9 See Securities Exchange Act Release No. 73641 (November 19, 2014), 79 FR 70230 (November 25, 2014). 10 See Securities Exchange Act Release No. 79974 (February 6, 2017), 82 FR 10417 (February 10, 2017). 11 See Securities Exchange Act Release No. 83696 (July 24, 2018), 83 FR 35682 (July 27, 2018). 12 15 U.S.C. 78q(d). 13 17 CFR 240.17d–2(c). E:\FR\FM\01MRN1.SGM 01MRN1

Agencies

[Federal Register Volume 84, Number 41 (Friday, March 1, 2019)]
[Notices]
[Pages 7151-7153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03625]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85187; File No. SR-ICEEU-2019-002]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to the ICE Clear Europe Delivery Procedures

February 25, 2019.
    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 15, 2019, 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, 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. 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).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The principal purpose of the proposed amendments is for ICE Clear 
Europe to to [sic] add delivery terms relating to the ICE Futures 
Europe (``ICE Futures Europe'' or ``IFEU'') Permian West Texas 
Intermediate Crude Oil Storage Futures Contracts (the 
``Contracts'').\5\
---------------------------------------------------------------------------

    \5\ Capitalized terms used but not defined herein have the 
meaning 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 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 amending its Delivery Procedures to add a new 
Section 10 and a new Part DD regarding delivery procedures relating to 
a new Contract that will be traded on ICE Futures Europe and cleared by 
ICE Clear Europe.
    New Part DD sets out the delivery specifications and procedures for 
deliveries of storage capacity under the Contract. Delivery is effected 
by Magellan Crude Oil Pipeline Company, L.P. (``Magellan'') providing 
to the buyer a Capacity Allocation Contract (``CAC'') \6\ for storage 
of one or more increments of 1,000 barrels of Permian West Texas 
Intermediate crude oil for a named calendar month at Magellan's East 
Houston terminal (``MEH''). The amendments also establish standards for 
the storage provided, as well as relevant procedures for exchange of 
futures for physical transactions under exchange rules.
---------------------------------------------------------------------------

    \6\ This is a standardized agreement between Magellan and a 
buyer providing the contractual right to use designated Permian WTI 
Storage in the delivery month as further detailed in the Permian WTI 
Storage Contract.
---------------------------------------------------------------------------

    Part DD addresses certain the responsibilities of the Clearing 
House and relevant parties for delivery under the Contracts, 
supplementing the existing provisions of the Rules. Specifically, 
neither the Clearing House nor ICE Futures Europe are responsible for 
the performance of Magellan or any person operating MEH, nor do they 
give any undertaking or warranty to any person as to the effect of the 
Contract Terms and Delivery Procedures as regards title to Permian WTI 
Storage. Further, neither the Clearing House nor ICE Futures Europe 
will have any liability for the condition of the Magellan storage 
system or for the performance by Magellan or any person who operates 
such system of any responsibilities they may assume towards Clearing 
Members or other persons pursuant to the Contract Terms, except for 
liability for fraud or bad faith or liability which cannot lawfully be 
excluded. Neither the Clearing House nor ICE Futures Europe has any 
obligation to any person to ensure the accuracy or availability of any 
information in Magellan's records in relation to storage rights arising 
from CACs in relation to Permian WTI Storage.
    Part DD addresses delivery margin and invoicing with respect to the 
Contract and specifies certain details of the delivery process. 
Delivery of Contracts will be based on open contract positions at the 
close of trading on the last trading day for which physical delivery is 
specified. The procedures include a detailed timeframe for relevant 
notices of intent to deliver or receive, nominations of parties to 
delivery or receive, delivery confirmations, invoicing, release of 
delivery margin following completion of delivery and other matters.
    New Section 10 addresses alternative delivery procedures (ADP) that 
the parties to a Contract may agree in lieu of the standard delivery 
arrangements in Part DD and relevant exchange rules. Section 10 
addresses procedures for requesting such an alternative arrangement, 
disclosure of the counterparty (if amenable to an alternative 
arrangement), and confirmation and settlement of the alternative 
arrangement.

[[Page 7152]]

(b) Statutory Basis
    Section 17A(b)(3)(F) of the Act \7\ 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. The proposed 
amendments are designed to facilitate the clearing of a new physically 
settled crude oil storage futures contract that is being launched for 
trading by the ICE Futures Europe exchange. The amendments set out the 
obligations and roles of Clearing Members, the Clearing House and 
Magellan, the relevant storage facility for purposes of the Contracts. 
ICE Clear Europe believes that its financial resources, risk 
management, systems and operational arrangements are sufficient to 
support clearing of such products (and to address physical delivery 
under such contracts) and to manage the risks associated with such 
contracts. As a result, in ICE Clear Europe's view, the amendments will 
be consistent with the prompt and accurate clearance and settlement of 
the Contracts, and the protection of investors and the public interest 
consistent with the requirements of Section 17A(b)(3)(F) of the Act.\8\ 
In ICE Clear Europe's view, the amendments will not affect the 
safeguarding of funds or securities in the custody or control of the 
clearing agency or for which it is responsible, within the meaning of 
Section 17A(b)(3)(F).\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    In addition, Rule 17Ad-22(e)(10) \10\ requires that each covered 
clearing agency establish and maintain transparent written standards 
that state its obligations with respect to the delivery of physical 
instruments, and establish and maintain operational practices that 
identify, monitor and manage the risks associated with such physical 
deliveries. As discussed above, the amendments to the Delivery 
Procedures to allow for the delivery and settlement under the 
Contracts, taken together with the Rules and ICE Futures Europe 
exchange contract terms, set out the obligations and roles of Clearing 
Members, the Clearing House and Magellan, the relevant storage facility 
for purposes of the Contracts. The amendments also adopt relevant 
procedures for such deliveries, which will facilitate identifying, 
monitoring and managing risks associated with delivery.
---------------------------------------------------------------------------

    \10\ 17 CFR 240.17Ad-22(e)(10).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed rule changes 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 update the Delivery Procedures in connection 
with the listing of the Contracts for trading on the ICE Futures Europe 
market. ICE Clear Europe believes that such contracts will provide 
opportunities for interested market participants to engage in trading 
activity in the Permian WTI storage market. ICE Clear Europe does not 
believe the amendments would adversely affect competition among 
Clearing Members, materially affect the cost of clearing, adversely 
affect access to clearing in 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 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 
amendments.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\ 
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.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-2019-002 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2019-002. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet 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. 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-2019-002 and should be 
submitted on or before March 22, 2019.


[[Page 7153]]


    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-03625 Filed 2-28-19; 8:45 am]
 BILLING CODE 8011-01-P
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