Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 11607 

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

2 17 CFR 240.19b–4. 

3See ICE Clear Europe Rule 101. The Rules of ICE 

Clear Europe are available on-line at: https:// 

www.theice.com/ 

Rulebook.shtml?clearEuropeRulebook=. 

4The Commission has modified the text of the 

summaries prepared by ICE Clear Europe. 

5The term ‘‘RMP Matching Report’’ means the 

report given by the Clearing House, as referred to 

in paragraph 8.4(e), to each CDS Clearing Member 

identifying the RMPs and allocations of Matched 

Pairs and the associated MP Amounts affecting the 

Open Contract Position of that CDS Clearing 

Member, which report comprises Matched Pair 

Notices for purposes of Rule 1508 in respect of each 

Matched Pair. 

6The term ‘‘Manual Notice Process’’ means the 

process for the delivery, receipt and copying to the 

Clearing House of notices pursuant to paragraph 

8.4(g). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66434; File No. SR–ICEEU– 

2012–02] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Revise Procedures Related to Certain 

Technical and Operational Changes 

Relating to Operational Processing of 

Restructuring Credit Events Under 

CDS Contracts 

February 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 February 

7, 2012, ICE Clear Europe Limited (‘‘ICE 

Clear Europe’’) 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 

primarily by ICE Clear Europe. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons and to 

approve the proposed rule change on an 

accelerated basis. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

ICE Clear Europe is in regular 

communication with representatives of 

its Clearing Members, as that term is 

defined in the Rules of ICE Clear 

Europe 3 (the ‘‘Rules’’), in relation to the 

operation of clearing processes and 

arrangements. ICE Clear Europe has 

published these proposed technical 

procedural changes, has carried out a 

public consultation process in respect of 

all of the changes described below, and 

has presented and agreed to the changes 

described below with its Clearing 

Members. These changes seek processes 

to be followed by ICE Clear Europe and 

its Clearing Members on the occurrence 

of any ‘‘restructuring credit event’’ 

under applicable CDS Contracts (as 

defined by ICE Clear Europe Rule 101). 

ICE Clear Europe takes the view that the 

proposed rule changes are 

improvements in operational services 

that implement changes that are 

principally administrative in nature. 

Specifically, ICE Clear Europe makes 

amendments to its procedures for the 

processing of restructuring credit events 

under CDS Contracts submitted and 

accepted for clearing by ICE Clear 

Europe, to reflect changes to systems 

used by the repository for recording 

such instruments, for processing of 

notices relating to such credit events. 

The repository presently used by ICE 

Clear Europe for these purposes is The 

Depository Trust & Clearing Corporation 

(‘‘DTCC’’) Trade Information 

Warehouse. These changes were 

published in ICE Clear Europe circular 

no. C11/171 on November 25, 2011, 

available at: https://www.theice.com/ 

publicdocs/clear_europe/circulars/ 

C11171_att1.pdf. 

The proposed changes allow for more 

operationally efficient and straightthrough processing of the service of 

credit event notices and other notices 

following the occurrence of a 

restructuring credit event. The changes 

reflect changes made to the account 

structures and processes for the service 

of notices within the DTCC and should 

considerably reduce risks for the 

clearing house and its clearing 

members. 

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.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The proposed rule changes consist of 

technical rule changes that are designed 

to implement operational and process 

improvements that have been discussed 

with and approved by the Clearing 

Members of ICE Clear Europe. The 

principal purpose of the proposed rule 

change is for the applicable rule or 

procedural provision to be updated to 

reflect such improvement. In particular, 

the proposed rule changes relate to the 

processing of restructuring credit events 

under the terms of cleared CDS 

Contracts submitted and accepted for 

clearing by ICE Clear Europe. 

Following consultation with its 

Clearing Members, ICE Clear Europe 

determined that the CDS Procedures 

needed to be updated in order to 

process a restructuring credit event in 

light of changes to DTCC’s systems. The 

proposed amended procedures modify 

the procedures for processing of 

restructuring credit events, principally 

those for the notification and processing 

of Matched Pairs (as defined below) in 

the event of any restructuring credit 

event. The majority of the changes relate 

to Section 8.4 of the procedures, which 

governs the allocation and processing of 

Matched Pairs. Matched Pairs are 

constituted of two clearing members 

who are matched with one another for 

purposes of delivering credit event 

notices to ICE Clear Europe and 

receiving credit event notices from ICE 

Clear Europe. While the proposed 

changes to Section 8.4 do not modify 

the basic principles of netting (or 

aggregation) of CDS Contracts prior to 

the processing of the applicable 

restructuring credit event, of the 

allocation of Matched Pairs pursuant to 

Rules 1507 and 1508, or of the 

obligation of ICE Clear Europe to issue 

Matched Pairs notices promptly 

pursuant to those Rules, the proposed 

amended procedures do modify: (a) The 

timing of transmission of RMP Matching 

Reports,5 and the procedures and timing 

for checking that any such RMP 

Matching Report reflects the applicable 

Clearing Members’ net Open Contract 

Position (as defined in the Rules) (at 

Section 8.4(d)); (b) the timing, form, and 

method for delivery of Matched Pairs 

notices (at Section 8.4(e)); (c) the timing 

and process for the input of records of 

all CDS Contracts being replaced 

pursuant to such matching process (at 

Section 8.4 (e)(v) and (vi)); (d) the 

specification of electronic notice for 

restructuring credit event notices (at 

Section 8.4(f)); and (e) changes to the 

Manual Notice Process 6 that specify 

procedures for reconciliation of the 

records of ICE Clear Europe with those 

of the Clearing Members and with those 

specified on the DTCC systems (at 

Sections 8.4(f)(v) and 8.4(g)). In each 

case, the applicable procedure is 

modified to harmonize the pre-existing 


srobinson on DSK4SPTVN1PROD with NOTICES
11608 Federal Register / Vol. 77, No. 38 / Monday, February 27, 2012 / Notices 

7 15 U.S.C. 78s(b). 

8 15 U.S.C. 78q–1. In approving this proposed 

rule change, the Commission has considered the 

proposed rule’s impact on efficiency, competition, 

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

9 15 U.S.C. 78q–1(b)(3)(F). 

10 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

procedures with those of DTCC and the 

Clearing Members. No change is made 

to the rights or obligations of Clearing 

Members in respect of CDS Contracts, 

and no change is made to the custody 

or guarantee fund functions of ICE Clear 

Europe. 

ICE Clear Europe has engaged in a 

public consultation process in relation 

to all the changes, pursuant to the 

circular referred to above, as it was 

required to do under applicable U.K. 

law. This public consultation involved 

the publication of such circular on a 

publicly accessible portion of the 

Internet Web site of ICE Clear Europe. 

ICE Clear Europe has received no 

opposing views from its Clearing 

Members in relation to the proposed 

rule amendments and received no 

responses to its public consultations 

during the consultation period. The 

proposed rule change is not inconsistent 

with the existing rules of ICE Clear 

Europe, including any other rules 

proposed to be amended. 

(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. 

(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 rule change have been 

solicited by ICE Clear Europe pursuant 

to public consultation processes in the 

circulars referred to above. No 

comments have been received, 

presumably in light of the extensive 

discussions that preceded the public 

consultations. The time period for the 

public consultation has closed so ICE 

Clear Europe does not expect to receive 

any further written comments as a result 

of this process. 

III. 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 rulecomments@sec.gov. Please include File 

Number SR–ICEEU–2012–02 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–2012–02. 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 Section, 100 F Street NE., 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of such filings 

will also 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/ 

ICE_Clear_Europe_Rule_Amendments

_2012_02.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–2012–02 and 

should be submitted on or before March 

19, 2012. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

Section 19(b) of the Act 7 directs the 

Commission to approve a proposed rule 

change of a self-regulatory organization 

if it finds that such proposed rule 

change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

such organization. The Commission 

finds that the proposed rule change is 

consistent with the requirements of the 

Act, in particular the requirements of 

Section 17A of the Act,8 and the rules 

and regulations thereunder applicable to 

ICE Clear Europe. Specifically, the 

Commission finds that the proposed 

rule change is consistent with Section 

17A(b)(3)(F) of the Act,9 which requires, 

among other things, that the rules of a 

registered clearing agency be designed 

to promote the prompt and accurate 

clearance and settlement of derivative 

agreements, contracts, and transactions 

because it should permit ICE Clear 

Europe to align its restructuring credit 

event processing with the system used 

by the repository for processing notices 

related to such credit events. 

ICE Clear Europe has requested that 

the Commission approve the proposed 

rule change on an accelerated basis for 

good cause shown. The Commission 

finds good cause for accelerating 

approval because ICE Clear Europe must 

have operational procedures that match 

the operational procedures of the system 

used by the repository for processing 

notices of restructuring credit events in 

order to process such credit events 

efficiently and effectively. 

V. Conclusion 

It is therefore ordered pursuant to 

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

proposed rule change (SR–ICEEU–2012– 

02) be, and hereby is, approved on an 

accelerated basis. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.10

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–4421 Filed 2–24–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66427; File No. SR–BATS– 

2012–011] 

Self-Regulatory Organizations; BATS 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change Adopting Rebates for the 

Competitive Liquidity Provider 

Program 

February 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 February 


srobinson on DSK4SPTVN1PROD with NOTICES