46008 Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Notices 

41 17 CFR 240.17Ad–22(e)(2)(i). 

42 17 CFR 240.17Ad–22(e)(6)(ii). 

43 17 CFR 240.17Ad–22(e)(6)(ii). 

44 17 CFR 240.17Ad–22(e)(6)(iv). 

45 17 CFR 240.17Ad–22(e)(6)(iv). 

46 15 U.S.C. 78q–1. 

47 17 CFR 240.17Ad–22(e)(2)(i), (e)(6)(ii), and 

(e)(6)(iv). 

48 15 U.S.C. 78s(b)(2). 

49 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

50 17 CFR 200.30–3(a)(12). 

the proposed rule change would help 

improve the effectiveness of the EOD 

price discovery process by specifically 

requiring the clearing risk department to 

consult the trading advisory committee, 

which would provide insight into 

current market dynamics and 

conditions. 

Therefore, for the above reasons the 

Commission finds that the proposed 

rule change is consistent with Rule 

17Ad–22(e)(2)(i).41

C. Consistency With Rule 17Ad– 

22(e)(6)(ii) 

Rule 17Ad–22(e)(6)(ii) requires that 

ICE Clear Europe establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

cover its credit exposures to its 

participants by establishing a risk-based 

margin system that marks participant 

positions to market and collects margin, 

including variation margin or equivalent 

charges if relevant, at least daily and 

includes the authority and operational 

capacity to make intraday margin calls 

in defined circumstances.42

As discussed above, the proposed rule 

change would enhance ICE Clear 

Europe’s EOD price discovery by 

amending the Price Discovery Policy to 

(1) compute a consensus BOW for each 

benchmark single-name instrument; (2) 

determine the final EOD BOW as the 

greater of an instrument’s final 

systematic BOW and a dynamic BOW; 

and (3) eliminate the use of the ISDA 

CDS Standard Model from the 

computation of BOWs for single-name 

instruments. 

The Commission believes that these 

changes, taken together, would help 

enhance ICE Clear Europe’s ability to 

determine the EOD BOW for singlename CDS instruments. By eliminating 

the use of the ISDA CDS Standard 

Model from the computation of singlename BOWs, accepting submissions 

only in price terms, and computing a 

consensus BOW for each benchmark 

single-name CDS instrument, the 

Commission believes the proposed rule 

change would help ICE Clear Europe to 

determine BOWs more consistently 

across single-name instruments on all 

reference entities, including those for 

which little intraday data is available. In 

addition, as noted above, the dynamic 

BOW would widen BOWs in response 

to the observed dispersion of pricespace levels submitted in the EOD price 

discovery process. Thus, by determining 

the final EOD BOW as the greater of an 

instrument’s final systematic BOW and 

a dynamic BOW, the Commission 

believes the proposed rule change 

would help the BOW to better reflect 

current market conditions. 

Consequently, the Commission 

believes that the proposed rule change 

would help improve ICE Clear Europe’s 

EOD pricing process by taking into 

account additional relevant information 

and considering a wider range of 

instruments in the pricing process. 

Because ICE Clear Europe uses EOD 

prices to mark participant positions to 

market and establish and collect margin, 

including variation margin, the 

Commission believes that improvements 

to the EOD pricing process would also 

enhance ICE Clear Europe’s covering of 

credit exposures to its participants and 

collection of margin. Moreover, the 

Commission believes the governance 

enhancements described above would 

help ensure that ICE Clear Europe’s 

clearing risk department maintains an 

effective EOD price discovery process 

and takes into account current market 

conditions by consulting with the 

trading advisory committee. The 

Commission therefore believes that the 

proposed rule change would help 

establish and maintain written policies 

and procedures reasonably designed to 

cover ICE Clear Europe’s credit 

exposures to its participants by 

establishing a risk-based margin system 

that marks participant positions to 

market and collects margin, including 

variation margin. 

Therefore, for the above reasons the 

Commission finds that the proposed 

rule change is consistent with Rule 

17Ad–22(e)(6)(ii).43

D. Consistency With Rule 17Ad– 

22(e)(6)(iv) 

Rule 17Ad–22(e)(6)(iv) requires that 

ICE Clear Europe establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

cover its credit exposures to its 

participants by establishing a risk-based 

margin system that uses reliable sources 

of timely price data and uses procedures 

and sound valuation models for 

addressing circumstances in which 

pricing data are not readily available or 

reliable.44

As discussed above, the proposed rule 

change would help improve the pricing 

data that ICE Clear Europe uses in its 

margin system. Specifically, the 

proposed rule change would, as 

discussed above, enhance the 

computation of BOWs for single-name 

CDS instruments by amending the Price 

Discovery Policy to (1) compute a 

consensus BOW for each benchmark 

single-name instrument; (2) determine 

the final EOD BOW as the greater of an 

instrument’s final systematic BOW and 

a dynamic BOW; and (3) eliminate the 

use of the ISDA CDS Standard Model 

from the computation of BOWs for 

single-name instruments. Because ICE 

Clear Europe uses BOWs to determine 

EOD price levels, the Commission 

believes that improvements in the 

collection and calculation of BOWs 

would improve the accuracy and 

reliability of ICE Clear Europe’s EOD 

price levels. Finally, because ICE Clear 

Europe uses its EOD price levels to mark 

participant positions to market and 

establish and collect margin, including 

variation margin, the Commission 

believes that the proposed rule change 

would help ensure that the ICE Clear 

Europe’s margin system uses reliable 

sources of timely price data. 

Therefore, for the above reasons the 

Commission finds that the proposed 

rule change is consistent with Rule 

17Ad–22(e)(6)(iv).45

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act, and in 

particular with the requirements of 

Section 17A(b)(3)(F) of the Act 46 and 

Rules 17Ad–22(e)(2)(i), (e)(6)(ii), and 

(e)(6)(iv) thereunder.47

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act 48 that the 

proposed rule change (SR–ICEEU–2018– 

009) be, and hereby is, approved.49

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.50

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2018–19640 Filed 9–10–18; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice: 10538] 

Notice of Determinations; Culturally 

Significant Objects Imported for 

Exhibition—Determinations: ‘‘Tomma 

Abts’’ Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: I hereby 


daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 176 / Tuesday, September 11, 2018 / Notices 46009 

determine that certain objects to be 

included in the exhibition ‘‘Tomma 

Abts,’’ imported from abroad for 

temporary exhibition within the United 

States, are of cultural significance. The 

objects are imported pursuant to loan 

agreements with the foreign owners or 

custodians. I also determine that the 

exhibition or display of the exhibit 

objects at The Art Institute of Chicago, 

in Chicago, Illinois, from on or about 

October 18, 2018, until on or about 

February 17, 2019, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. I have ordered that Public 

Notice of these determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6471; email: 

section2459@state.gov). The mailing 

address is U.S. Department of State, 

L/PD, SA–5, Suite 5H03, Washington, 

DC 20522–0505. 

SUPPLEMENTARY INFORMATION: The 

foregoing determinations were made 

pursuant to the authority vested in me 

by the Act of October 19, 1965 (79 Stat. 

985; 22 U.S.C. 2459), E.O. 12047 of 

March 27, 1978, the Foreign Affairs 

Reform and Restructuring Act of 1998 

(112 Stat. 2681, et seq.; 22 U.S.C. 6501 

note, et seq.), Delegation of Authority 

No. 234 of October 1, 1999, and 

Delegation of Authority No. 236–3 of 

August 28, 2000. 

Marie Therese Porter Royce, 

Assistant Secretary for Educational and 

Cultural Affairs, Department of State. 

[FR Doc. 2018–19717 Filed 9–10–18; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice: 10536] 

Notice of Determinations; Culturally 

Significant Object Imported for 

Exhibition—Determinations: ‘‘Enrico 

David: Gradations of Slow Release’’ 

Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: I hereby 

determine that a certain object to be 

included in the exhibition ‘‘Enrico 

David: Gradations of Slow Release,’’ 

imported from abroad for temporary 

exhibition within the United States, is 

of cultural significance. The object is 

imported pursuant to a loan agreement 

with the foreign owner or custodian. I 

also determine that the exhibition or 

display of the exhibit object at the 

Museum of Contemporary Art, Chicago, 

Illinois, from on or about September 29, 

2018, until on or about March 10, 2019, 

and at the Hirshhorn Museum and 

Sculpture Garden, Washington, District 

of Columbia, from on or about April 18, 

2019, until on or about September 2, 

2019, and at possible additional 

exhibitions or venues yet to be 

determined, is in the national interest. 

I have ordered that Public Notice of 

these determinations be published in 

the Federal Register. 

FOR FURTHER INFORMATION CONTACT: Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6471; email: 

section2459@state.gov). The mailing 

address is U.S. Department of State, 

L/PD, SA–5, Suite 5H03, Washington, 

DC 20522–0505. 

SUPPLEMENTARY INFORMATION: The 

foregoing determinations were made 

pursuant to the authority vested in me 

by the Act of October 19, 1965 (79 Stat. 

985; 22 U.S.C. 2459), E.O. 12047 of 

March 27, 1978, the Foreign Affairs 

Reform and Restructuring Act of 1998 

(112 Stat. 2681, et seq.; 22 U.S.C. 6501 

note, et seq.), Delegation of Authority 

No. 234 of October 1, 1999, Delegation 

of Authority No. 236–3 of August 28, 

2000. 

Marie Therese Porter Royce, 

Assistant Secretary for Educational and 

Cultural Affairs, Department of State. 

[FR Doc. 2018–19715 Filed 9–10–18; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice: 10539] 

Notice of Determinations; Culturally 

Significant Objects Imported for 

Exhibition—Determinations: ‘‘Frans 

Hals Portraits: A Family Reunion’’ 

Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: I hereby 

determine that certain objects to be 

included in the exhibition ‘‘Frans Hals 

Portraits: A Family Reunion,’’ imported 

from abroad for temporary exhibition 

within the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the Toledo 

Museum of Art, Toledo, Ohio, from on 

or about October 13, 2018, until on or 

about January 6, 2019, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. I have ordered that Public 

Notice of these determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: Julie 

Simpson, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6471; email: 

section2459@state.gov). The mailing 

address is U.S. Department of State, 

L/PD, SA–5, Suite 5H03, Washington, 

DC 20522–0505. 

SUPPLEMENTARY INFORMATION: The 

foregoing determinations were made 

pursuant to the authority vested in me 

by the Act of October 19, 1965 (79 Stat. 

985; 22 U.S.C. 2459), E.O. 12047 of 

March 27, 1978, the Foreign Affairs 

Reform and Restructuring Act of 1998 

(112 Stat. 2681, et seq.; 22 U.S.C. 6501 

note, et seq.), Delegation of Authority 

No. 234 of October 1, 1999, and 

Delegation of Authority No. 236–3 of 

August 28, 2000. 

Marie Therese Porter Royce, 

Assistant Secretary for Educational and 

Cultural Affairs, Department of State. 

[FR Doc. 2018–19719 Filed 9–10–18; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF STATE 

[Public Notice: 10537] 

Notice of Determinations; Culturally 

Significant Objects Imported for 

Exhibition—Determinations: ‘‘Gu ̈nther 

Fo ̈rg: A Fragile Beauty’’ Exhibition 

SUMMARY: Notice is hereby given of the 

following determinations: I hereby 

determine that certain objects to be 

included in the exhibition ‘‘Gu ̈nther 

Fo ̈rg: A Fragile Beauty,’’ imported from 

abroad for temporary exhibition within 

the United States, are of cultural 

significance. The objects are imported 

pursuant to loan agreements with the 

foreign owners or custodians. I also 

determine that the exhibition or display 

of the exhibit objects at the Dallas 

Museum of Art, Dallas, Texas, from on 

or about October 21, 2018, until on or 

about January 27, 2019, and at possible 

additional exhibitions or venues yet to 

be determined, is in the national 

interest. I have ordered that Public 

Notice of these determinations be 

published in the Federal Register. 

FOR FURTHER INFORMATION CONTACT: 

Elliot Chiu, Attorney-Adviser, Office of 

the Legal Adviser, U.S. Department of 

State (telephone: 202–632–6471; email: 

section2459@state.gov). The mailing 

address is U.S. Department of State, 

L/PD, SA–5, Suite 5H03, Washington, 

DC 20522–0505. 

SUPPLEMENTARY INFORMATION: The 

foregoing determinations were made 

pursuant to the authority vested in me 

by the Act of October 19, 1965 (79 Stat. 

985; 22 U.S.C. 2459), E.O. 12047 of 


daltland on DSKBBV9HB2PROD with NOTICES