[Federal Register Volume 78, Number 172 (Thursday, September 5, 2013)]
[Notices]
[Pages 54718-54720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21532]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-70281; File No. SR-ICEEU-2013-10]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Related
to Regulatory Reporting of Swap Data
August 29, 2013.
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 August 20, 2013, ICE Clear Europe Limited (``ICE Clear Europe'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I and II 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 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)(iii).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
ICE Clear Europe submits the proposed amendment to its clearing
rules in order to add Rule 411 which facilitates swap data repository
(``SDR'') reporting by and at ICE Clear Europe that is consistent with
Part 45 of Commodity Futures Trading Commission (``CFTC'') Rules and
Regulations. Proposed Rule 411 provides that ICE Clear Europe will
report creation and continuation data to ICE Trade Vault, LLC (``ICE
Trade Vault''), a provisionally registered SDR selected by ICE Clear
Europe.
II. Self-Regulatory Organization'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 these statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
The proposed rule amendment includes proposed Rule 411, which
provides that with respect to all swaps cleared by ICE Clear Europe and
resulting positions, ICE Clear Europe will report creation and
continuation data to ICE Trade Vault for purposes of complying with
applicable CFTC rules and regulations governing the regulatory
reporting of swaps, specifically CFTC Regulations 45.3,\5\ 45.4(b) \6\
and 45.9.\7\ Proposed Rule 411 is consistent with CFTC Regulations 45.3
\8\ and 45.4(b) \9\ that require that creation and continuation data
must be reported by both the derivatives clearing organization and the
reporting counterparty. ICE Clear Europe currently complies with CFTC
Regulations 45.3 \10\ and 45.4(b) \11\ by reporting swap data to ICE
Trade Vault. In order to codify ICE Clear Europe's practice of
reporting relevant Part 45 data to ICE Trade Vault, ICE Clear Europe
proposed to add to its Clearing Rules, Rule 411 (Swap Data Repository
``SDR'' Reporting).
---------------------------------------------------------------------------
\5\ 17 CFR 45.3.
\6\ 17 CFR 45.4(b).
\7\ 17 CFR 45.9.
\8\ 17 CFR 45.3.
\9\ 17 CFR 45.4(b).
\10\ 17 CFR 45.3.
\11\ 17 CFR 45.4(b).
---------------------------------------------------------------------------
Proposed Rule 411 further provides that upon the request of a
clearing member counterparty to a swap cleared at ICE Clear Europe, ICE
Clear Europe
[[Page 54719]]
will provide the same creation and continuation data reported by ICE
Clear Europe to ICE Trade Vault to an SDR selected by such
counterparty. In this regard, proposed Rule 411 is also consistent with
CFTC Regulation 45.9 \12\ that provides that swap counterparties
required by Part 45 to report swap creation or continuation data may
contract with third-party service providers to facilitate reporting.
Proposed Rule 411 ensures that ICE Clear Europe, in the capacity of a
third-party service provider, will be responsible for reporting
required swap creation and continuation data on behalf of ICE Clear
Europe's clearing members.
---------------------------------------------------------------------------
\12\ 17 CFR 45.9.
---------------------------------------------------------------------------
The addition of proposed Rule 411 is in response to swap dealers'
mandatory compliance with CFTC Regulations 45.3 \13\ and 45.4,\14\
which was required as of February 28, 2013.
---------------------------------------------------------------------------
\13\ 17 CFR 45.3.
\14\ 17 CFR 45.4.
---------------------------------------------------------------------------
ICE Clear Europe believes that the proposed rule change is
consistent with the requirements of Section 17A of the Act \15\ and the
regulations thereunder applicable to it. ICE Clear Europe notes that
proposed Rule 411 mirrors ICE Clear Credit LLC (``ICC'') Rule 211,
approved by the Commission on an accelerated basis pursuant to Section
19(b)(2) of the Act \16\ on April 9, 2013, in every substantive
respect. ICE Clear Europe notes that in the Commission's notice of
filing and order granting accelerated approval of ICC Rule 211, the
Commission found that ``by facilitating compliance with the swap data
reporting requirements of [the CFTC], [ICC Rule 211] is consistent with
promoting the prompt and accurate clearance and settlement of
derivative agreements, contracts, and transactions, assuring the
safeguarding of securities and funds which are in the custody or
control of the clearing agency or for which it is responsible, and
protecting investors and the public interest'' as required under
Section 17A(b)(3)(F) of the Act.\17\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1.
\16\ 15 U.S.C. 78s(b)(2).
\17\ 15 U.S.C. 78q-1(b)(3)(F); see Securities Exchange Act
Release No. 69628 (Apr. 9, 2013), 78 FR 22350, 22351-52 (Apr. 15,
2013) (SR-ICC-2013-05).
---------------------------------------------------------------------------
B. Self-Regulatory Organization'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. In general,
proposed Rule 411 does not have any effect on competition because it is
not a restraint. The proposed rule in no way keeps reportable trade
data regarding swaps from being reported to any other SDR and, in fact,
explicitly allows a clearing member that is a counterparty to a swap
cleared at ICE Clear Europe to designate any SDR to receive swap
creation and continuation data. While an affiliate of ICE Clear Europe,
ICE Trade Vault, is available to handle SDR reporting obligations, ICE
Clear Europe's rule is designed to permit ICE Clear Europe's clearing
members to be able to designate any SDR to receive the required
reports. The ability of ICE Clear Europe clearing members to designate
any SDR ensures the competitiveness of the various reporting
facilities.
Additionally, proposed Rule 411 complies with the swap data
reporting requirements of the Commodity Exchange Act and the CFTC's
rules thereunder that further the goals of reducing systemic risk,
increasing transparency and promoting market integrity within the
financial system. The Commission has found that a rule that facilitates
compliance with the swap data reporting requirements of another
regulator is consistent with the requirements of the Act, in particular
the requirements of Section 17A of the Act \18\ and the rules and
regulations thereunder applicable to a clearing agency.
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others
Written comments relating to the rule change have been solicited
from clearing members as part of the rule change process. 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) of the Act \19\ and Rule 19b-4(f)(4)(ii)
\20\ thereunder because it is effecting a change in an existing service
of a registered clearing agency that primarily affects the clearing
operations of the clearing agency with respect to products that are not
securities, including swaps that are not security-based swaps or mixed
swaps, and does not significantly affect the securities clearing
operations of the clearing agency or any related rights or obligations
of the clearing agency with respect to securities clearing 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.
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78s(b)(3)(A)(iii).
\20\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
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 Number SR-ICEEU-2013-10 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-2013-10. 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 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 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/notices/Notices.shtml?regulatoryFilings.
All comments received will be posted without change; the Commission
does not edit personal identifying
[[Page 54720]]
information from submissions. You should submit only information that
you wish to make available publicly. All submissions should refer to
File Number SR-ICEEU-2013-10 and should be submitted on or before
September 26, 2013.
---------------------------------------------------------------------------
\21\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\21\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-21532 Filed 9-4-13; 8:45 am]
BILLING CODE 8011-01-P