[Federal Register Volume 77, Number 248 (Thursday, December 27, 2012)]
[Notices]
[Pages 76332-76333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31127]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68496; File No. SR-ICEEU-2012-14]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to the Intra-Day Margin Calling Policy for Energy Clearing Members
December 20, 2012.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 \2\ thereunder notice is hereby given that
on December 19, 2012, 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 primarily by ICE Clear Europe. ICE Clear
Europe filed the proposal pursuant to Section 19(b)(3)(A)(iii) \3\ of
the Act and Rule 19b-4(f)(4)(ii) \4\ thereunder, so that the proposal
was effective upon filing with the Commission. The Commission is
publishing this notice to solicit
[[Page 76333]]
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\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 purpose of the proposed rule change is to subject Energy
Clearing Members to an Intraday Margin Call in the event that the
Intraday Margin Liability of the Member exceeds certain defined limits.
All capitalized terms not defined herein are defined in the ICE Clear
Europe 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 and comments 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 these statements.\5\
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\5\ The Commission has modified the text of the summaries
provided by ICE Clear Europe.
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A. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In addition to providing clearing services for credit default
swaps, ICE Clear Europe also provides clearing services for non-
securities contracts in energy and emissions markets (``Energy Futures
Products''). ICE Clear Europe will subject Energy Clearing Members to
an Intraday Margin Call in the event that the Intraday Margin Liability
of the Member is greater than:
20% of the Energy Clearing Member's total collateral held
with ICE Clear Europe to meet margin requirements;
2.5% of the Clearing Member's Balance Sheet capital
(discounted, where appropriate, by credit rating); and
The individual Energy Guaranty Fund contribution of the
Energy Clearing Member.
Intraday Margin Calls will be made independent of Energy Guaranty
Fund and Balance Sheet capital if the Intraday Margin Liability is
greater than the total collateral held with ICE Clear Europe to meet
margin requirements.
ICE Clear Europe believes that the proposed change is consistent
with the requirements of Section 17A of the Act and the regulations
thereunder applicable to it. Section 17A(b)(3)(F) \6\ of the Act
requires, among other things, that the rules of a clearing agency be
designed to protect investors and the public interest. ICE Clear Europe
believes that subjecting Energy Clearing Members to an Intraday Margin
Call under certain circumstances would help protect investors and the
public interest.
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\6\ 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 that the proposed rule change
would have any impact, or impose any burden, on competition.
C. Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
ICE Clear Europe has not solicited written comments regarding the
proposed change. ICE Clear Europe will notify the Commission of any
written comments received by ICE Clear Europe.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A)(iii) \7\ of the Act and Rule 19b-4(f)(4)(ii) \8\
thereunder because it primarily affects the futures clearing operations
of the clearing agency with respect to futures that are not security
futures, and does not significantly affect the securities clearing
operations of the clearing agency or any related rights or obligations
of the clearing agency or persons using such service. 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.\9\
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\7\ 15 U.S.C. 78s(b)(3)(A)(iii).
\8\ 17 CFR 240.19b-4(f)(4)(ii).
\9\ 15 U.S.C. 78s(b)(3)(C).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic comments may be submitted by using the
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or by sending an email to [email protected]. Please
include File No. SR-ICEEU-2012-14 on the subject line.
Paper comments should be sent in triplicate to Elizabeth
M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street
NE., Washington, DC, 20549-0609.
All submissions should refer to File Number SR-ICEEU-2012-14. To
help the Commission process and review your comments more efficiently,
please use only one method of submission. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule changes that
are filed with the Commission, and all written communications relating
to the proposed rule changes between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE., Washington, DC 20549, on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of such filings also will be
available for inspection and copying at the principal office of ICE
Clear Europe, and on ICE Clear Europe's Web site at: https://www.theice.com/publicdocs/regulatory_filings/ICEU_SEC_121912_2012-14.pdf.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly.
All submissions should refer to File Number SR-ICEEU-2012-14 and
should be submitted on or before January 17, 2013.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31127 Filed 12-26-12; 8:45 am]
BILLING CODE 8011-01-P