[Federal Register Volume 77, Number 250 (Monday, December 31, 2012)]
[Notices]
[Pages 77159-77160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31253]
[[Page 77159]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-68523; File No. SR-ICEEU-2012-21]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Changes To
Implement Requirements of Commodity Futures Trading Commission Rule
39.13(g)(8)(ii)
December 21, 2012.
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 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) of the
Act,\3\ 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 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. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change
ICE Clear Europe proposes to implement Commodity Futures Trading
Commission (``CFTC') Rule 39.13(g)(8)(ii), which requires that FCM
Clearing Members collect customer initial margin for customer non-hedge
positions at a level that is greater than 100% of ICE Clear Europe's
initial margin requirements. As a result, ICE Clear Europe has
established a minimum percentage of 110% in respect of non-hedge
customers for energy futures. All capitalized terms not defined herein
are defined in the ICE Clear Europe Rules.
II. Self-Regulatory Organization's Statement of 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.\5\
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\5\ The Commission has modified the text of the summaries
prepared by OCC.
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A. Self-Regulatory Organization's Statement of Purpose of, and
Statutory Basis for, the Proposed Rule Change
The purpose of the change is to implement the requirements of CFTC
Rule 39.13(g)(8)(ii). ICE Clear Europe has informed FCM Clearing
Members of the new requirements of CFTC Rule 39.13(g)(8)(ii). This rule
requires that FCM Clearing Members collect customer initial margin for
customer non-hedge positions at a level that is greater than 100% of
ICE Clear Europe's initial margin requirements. Accordingly, ICE Clear
Europe has established a minimum percentage of 110% in respect of non-
hedge customers for energy futures. As a result, as of October 4, 2012,
FCM Clearing Members must collect an amount of no less than 110% of ICE
Clear Europe's initial margin requirement in respect of those
customers.
Section 17A(b)(3)(F) of the Act \6\ 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. ICE Clear Europe believes that the proposed change to
margin requirements applicable to FCM Clearing Members is consistent
with the requirements of the Act and the rules and regulations
thereunder applicable to ICE Clear Europe, in particular, with Section
17A(b)(3)(F),\7\ because improved margining facilitates the prompt and
accurate clearance and settlement and improves the safety and soundness
of the clearing house.
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Self-Regulatory Organization's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed change would have
any impact, or impose any burden, on competition.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments relating to the proposed change have not been
solicited or received. ICE Clear Europe will notify the Commission of
any written comments received by ICE Clear Europe.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(iii) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\ 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.\10\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 17 CFR 240.19b-4(f)(4)(ii).
\10\ 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
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or
Send an email to [email protected]. Please include
File No. SR-ICEEU-2012-21 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC, 20549-1090.
All submissions should refer to File Number SR-ICEEU-2012-21. 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 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 change that are
filed with the Commission, and all written communications relating to
the
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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 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 filing 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_2012-21.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-2012-21
and should be submitted on or before January 22, 2013.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-31253 Filed 12-28-12; 8:45 am]
BILLING CODE 8011-01-P