Federal Register / Vol. 83, No. 113 / Tuesday, June 12, 2018 / Notices 27359 

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). 

5Regulation (EU) 2016/679 of the European 

Parliament and of the Council of April 27, 2016. 

6Personal Data is defined in the GDPR as 

information related to a natural person that would 

identify that person, in particular by reference to an 

identifier such as a name, an identification number, 

location data, an online identifier or one or more 

factors specific to the physical, physiological, 

genetic, mental, economic, cultural or social 

identity of that person. 

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). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83387; File No. SR–ICC– 

2018–005] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating to Amendments 

to the ICC Clearing Rules To 

Implement the European Union 

General Data Protection Regulation 

June 6, 2018. 

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 May 25, 

2018, ICE Clear Credit LLC (‘‘ICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change described in Items 

I and II below, which Items have been 

prepared by ICC. ICC filed the proposed 

rule change pursuant to Section 

19(b)(3)(A) of the Act 3 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. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed change is to make changes to 

the ICC Clearing Rules (the ‘‘ICC Rules’’) 

to comply with certain requirements of 

the European Union (‘‘EU’’) General 

Data Protection Regulation (‘‘GDPR’’).5

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, ICC 

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. ICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

(a) Purpose 

ICC proposes revisions to Rule 407 to 

update its policies on data protection to 

facilitate compliance with the 

requirements of the GDPR, which took 

effect on May 25, 2018. The proposed 

revisions are described in detail as 

follows. 

The amendments reflect that ICC’s 

policies on use of personal data will 

now primarily be stated in a privacy 

notice made available to Clearing 

Participants (‘‘CPs’’) and other market 

participants, and accordingly certain 

existing provisions in the Rules relating 

to personal data will be removed or 

modified, as discussed herein. ICC 

proposes minor changes to terminology 

in Rule 407(a)(iv) to replace the term 

Data Protection Directive with Data 

Protection Regulation, which will refer 

to the GDPR. ICC proposes 

corresponding changes throughout the 

document. Under the proposed 

revisions, Rule 407(i) states that 

subsections (i) through (m) apply to the 

extent that ICC is within scope of the 

GDPR, and notes ICC’s right to process 

‘‘Personal Data’’ (as defined in the 

GDPR) 6 for purposes permitted under 

the GDPR. The proposed amendments 

also remove existing subsections (j) and 

(k), as the relevant provisions 

containing ICC’s obligations with 

respect to Personal Data will now be set 

out in a privacy notice, and, instead, 

include ICC’s commitment to keeping 

Personal Data confidential in a new 

subsection (j) and intentionally omit 

subsection (k). The proposed updates to 

Rule 407(l) specify that CPs must ensure 

they have a lawful basis for processing 

Personal Data provided to ICC. ICC also 

proposes including references to 

defined terms used in the GDPR in Rule 

407(m). The proposed new Rule 407(n) 

states that recording telephone 

conversations with ICC will take place 

to the extent permitted or required 

under applicable law. 

(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 

protect investors and the public interest 

and to comply with the provisions of 

the Act and the rules and regulations 

thereunder. ICC believes that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to ICC, in particular, to 

Section 17A(b)(3)(F),8 because ICC 

believes that the proposed rule change 

will protect investors and the public 

interest, as the proposed revisions 

provide additional clarity on the rights 

and obligations of ICC and its CPs 

relating to Personal Data and facilitate 

ICC’s compliance with the GDPR. As 

such, the proposed rule change is 

designed to protect investors and the 

public interest within the meaning of 

Section 17(A)(b)(3)(F) 9 of the Act. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICC does not believe the proposed 

rule change would have any impact, or 

impose any burden, on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

amendments are being adopted to 

facilitate compliance with EU 

requirements applicable to Personal 

Data under the GDPR, and apply to all 

CPs and market participants. Although 

the amendments could impose certain 

additional costs on CPs, these result 

from the requirements imposed by the 

GDPR, and are generally applicable 

throughout the EU. As a result, ICC does 

not believe the amendments would 

adversely affect competition among CPs, 

the market for clearing services 

generally or access to clearing in cleared 

products by CPs or other market 

participants. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

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 if 

consistent with the protection of 


sradovich on DSK3GMQ082PROD with NOTICES
27360 Federal Register / Vol. 83, No. 113 / Tuesday, June 12, 2018 / Notices 

10 ICC has satisfied this requirement. 

11 15 U.S.C. 78s(b)(3)(A). 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6). 

14 17 CFR 240.19b–4(f)(6)(iii). 

15For purposes only of waiving the five-day prefiling requirement and the 30-day operative delay, 

the Commission has considered the proposed rule 

change’s impact on efficiency, competition, and 

capital formation. See 15 U.S.C. 78c(f). 

16 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

investors and the public interest, 

provided that the self-regulatory 

organization has given 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,10 the proposed rule 

change has become effective pursuant to 

Section 19(b)(3)(A) of the Act 11 and 

Rule 19b–4(f)(6) 12 thereunder. 

A proposed rule change filed under 

Rule 19b–4(f)(6) 13 normally does not 

become operative prior to 30 days after 

the date of its filing. Pursuant to Rule 

19b–4(f)(6)(iii),14 however, the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. ICC has requested that the 

Commission waive the five-day prefiling requirement and the 30-day 

operative delay so that ICC may 

implement the proposed rule change by 

the effective date of the GDPR (May 25, 

2018). The Commission notes that the 

proposed rule change is limited to 

revising Rule 407 to facilitate 

compliance with the requirements of the 

GDPR, including committing ICC to 

keeping Personal Data confidential and 

clarifying that ICC’s policies on use of 

personal data will now primarily be 

stated in a privacy notice. The proposed 

rule change does not (i) significantly 

affect the protection of investors or the 

public interest; (ii) impose any 

significant burden on competition; or 

(iii) affect the safeguarding of funds or 

securities in the custody or control of 

ICC or for which it is responsible. 

Waiver of the five-day pre-filing 

requirement and the 30-day operative 

delay would allow ICC to implement the 

proposed rule change by the effective 

date of the GDPR and therefore comply 

with EU law. Therefore, the 

Commission believes that waiving the 

five-day pre-filing requirement and the 

30-day operative delay is consistent 

with the protection of investors and the 

public interest and designates the 

proposed rule change as operative upon 

filing.15

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or 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: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

ICC–2018–005 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–ICC–2018–005. 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 (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 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 Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/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–ICC–2018–005 and 

should be submitted on or before July 3, 

2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–12551 Filed 6–11–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–83386; File No. SR–ICC– 

2018–004] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change Relating to 

Formalization of the ICC Model 

Validation Framework 

June 6, 2018. 

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 May 23, 

2018, ICE Clear Credit LLC (‘‘ICC’’) filed 

with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by ICC. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed rule change is to formalize the 

ICC Model Validation Framework. This 

change does not require any revisions to 

the ICC Clearing Rules. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, ICC 

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. ICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 


sradovich on DSK3GMQ082PROD with NOTICES