15174 Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Notices 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See ICE Clear Europe Rule 101. The Rules are 

available on-line at: https://www.theice.com/ 

Rulebook.shtml?clearEuropeRulebook=. All 

capitalized terms not defined herein are defined in 

the Rules. 

4The Commission has modified the text of the 

summaries prepared by ICE Clear Europe. 

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. 

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–NSCC–2012–03 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–NSCC–2012–03. 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 

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

also will be available for inspection and 

copying at the principal office of NSCC 

and on NSCC’s Web site at http:// 

www.dtcc.com/downloads/legal/ 

rule_filings/2012/nscc/SR-NSCC-2012- 

03.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–NSCC–2012–03 and should 

be submitted on or before April 4, 2012. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6106 Filed 3–13–12; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–66538; File No. SR–ICEEU– 

2012–03] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Order Granting Accelerated 

Approval of Proposed Rule Change To 

Revise Rules Related to Certain 

Operational Changes Relating to 

Timing, Effectiveness and Operation of 

Transfer Orders for Purposes of 

Compliance With Non-U.S. Legislation 

March 8, 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 March 6, 

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 (‘‘Rules’’) in relation to the 

operation of clearing processes and 

arrangements. From time-to-time, ICE 

Clear Europe must amend its Rules with 

reference to its home country and home 

region regulation. These changes follow 

recent amendments and changes to 

home country and home region 

regulation. Following consultation with 

its applicable home country regulators 

ICE Clear Europe has published these 

proposed rule 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 

to clarify the timing and operation of 

various clearing processes, for existing 

clearing activities. Specifically, ICE 

Clear Europe is making changes to Part 

12 of its Rules, which set out how 

certain transfer, clearing and settlement 

orders are treated for purposes of nonU.S. insolvency legislation, namely the 

U.K. Financial Markets and Insolvency 

(Settlement Finality) Regulations 1999 

(the ‘‘U.K. Settlement Finality Rules’’) 

and the EU Settlement Finality Directive 

(Directive 98/26/EC) (together with the 

U.K. Settlement Finality Rules, the 

‘‘Settlement Finality Legislation’’). 

These proposed changes reflect changes 

to ICE Clear Europe’s clearing and 

payment systems that have been 

proposed following designation by U.K. 

authorities as a ‘‘designated system’’ for 

purposes of such legislation; the 

proposed changes follow various 

meetings and discussions with the 

relevant U.K. authorities. These changes 

were published in ICE Clear Europe 

circular no. C11/169 on November 25, 

2011, available at: https:// 

www.theice.com/publicdocs/ 

clear_europe/circulars/C11169_att1.pdf. 

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 principal purpose of the 

proposed rule change is for applicable 

provisions of the Rules to be updated to 

reflect technical details relating to the 

treatment of certain transfer, clearing 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Notices 15175 

and settlement orders for purposes of 

the Settlement Finality Legislation. 

The Rule changes affect Part 12 of the 

ICE Clear Europe Rules. In general, the 

rule changes create specific rules 

regarding: The creation of various 

Transfer Orders, which include certain 

Clearing Orders, and Settlement Orders 

(each as defined for purposes of the 

Rules); the times at which such orders 

become irrevocable; the manner by 

which non-irrevocable Transfer Orders 

may be varied; and the manner by 

which Transfer Orders may be satisfied. 

Finally, certain definitions found in Part 

12 of the Rules are amended to account 

for the Settlement Finality Legislation, 

and to correspond to other changes to 

Part 12. Each of these changes is 

described in detail as follows. 

Part 12 of the ICE Clear Europe Rules 

sets forth Rules that are designed to 

comply with the Settlement Finality 

Legislation. In order to update those 

rules to comply with the Settlement 

Finality Legislation, Rule 1202 is 

modified to change the manner by 

which immediate and automatic entry 

of various Payment Transfer Orders 

occurs. 

In this regard, various changes are 

made to Rule 1202. 

Rule 1202(a)(i) gives rise to a Payment 

Transfer Order at any time that a 

Contract is formed by virtue of the 

operation of ICE Clear Europe Rule 401. 

Under the rule changes, such Open 

Offer Payment Transfer Orders are 

renamed ‘‘New Contract Payment 

Transfer Orders’’. Rule 1202(a)(i) is also 

modified to exclude energy contracts 

arising under Rule 401(a)(vii), and any 

CDS Contract arising pursuant to Rule 

401(a)(x) pursuant to a Bilateral CDS 

Transaction submitted for Weekly 

Clearing. 

Rule 1202(a)(ii) gives rise to a 

Payment Transfer Order upon the 

Clearing House sending an instruction 

pursuant to Rule 302. Such Payment 

Transfer Orders are renamed ‘‘Debit 

Payment Transfer Orders.’’ 

Rule 1202(a)(iii) gives rise to a 

Payment Transfer Order if and when the 

Clearing House sends an instruction by 

means of an electronic, telephone or 

other message means to an Approved 

Financial Institution to transfer a sum of 

money from a Clearing House Account 

to an account of the Clearing House at 

the Concentration Bank. Under The rule 

changes, such Payment Transfer Orders 

are renamed ‘‘AFI–CB Payment Transfer 

Orders.’’ 

Rule 1202(a)(iv) creates a Payment 

Transfer Order where the Clearing 

House sends an instruction by means of 

an electronic, telephone or other 

message means to a Concentration Bank 

to transfer a sum of money from an 

account of the Clearing House at the 

Concentration Bank to a Clearing House 

Account. Under the rule changes, such 

Payment Transfer Orders are renamed 

‘‘CB–AFI Payment Transfer Orders.’’ 

Rule 1202(a)(v) gives rise to a 

Payment Transfer Order in the event 

that the Clearing House receives a 

notification pursuant to Rule 1205(b). 

This form of Payment Transfer Order is 

called an ‘‘Insufficient Funds Payment 

Transfer Order.’’ Under the rule 

changes, Rule 1202(a)(v) is deleted, as 

are other references to Insufficient 

Funds Payment Transfer Orders that 

exist elsewhere in Part 12. 

Rule 1202(e) sets forth the scope of 

Payment Transfer Orders. Under (i) in 

that Rule, in the case of an Open Offer 

Payment Transfer Order, the Payment 

Transfer Order applies and has effect in 

the amount due to or from the Clearing 

House pursuant to the Contract Terms 

as a result of the Contract to which the 

confirmation referred to in Rule 

1202(a)(i) relates arising. For any CDS 

Contract arising as a result of Trade Date 

Clearing, this will be the Initial 

Payment. In the case of a Credit/Debit 

Payment Transfer Order, AFI–CB 

Payment Transfer Order or CB–AFI 

Payment Transfer Order, the Payment 

Transfer Order applies and has effect in 

the amount specified in the relevant 

instruction referred to in Rule 1202(a). 

This Rule is amended to specify the 

change in name from ‘‘Open Offer 

Payment Transfer Order’’ to ‘‘New 

Contract Payment Transfer Order.’’ No 

substantive change is made to Rule 

1202(e). 

Rule 1202(b) sets forth the 

circumstances under which a Securities 

Transfer Order arises. Under Rule 

1202(b)(i), a Position Transfer Order, 

which is a form of Securities Transfer 

Order, arises only if both of the Clearing 

Members are Participants. Under the 

rule changes, Rule 1202(b)(i)(A) is 

modified such that the Securities 

Transfer Order arises if the Clearing 

House, the relevant Market, and the two 

Clearing Members involved have 

already agreed to a transfer, assignment 

or novation of Contracts from one 

Clearing Member to another pursuant to 

Rule 408(a)(i). Rule 1202(b)(i)(a) is 

modified to include parenthetical text 

that both Clearing Members must be 

Participants for purposes of this Rule 

1202(b)(i). This change is not 

substantive. Rule 1202(b)(i)(B) permits a 

Securities Transfer Order to arise if the 

Clearing House has declared an Event of 

Default under Rule 901 and any 

Contracts to which a Defaulter is party 

are proposed to be transferred from the 

Defaulter to another Clearing Member 

pursuant to the Clearing House’s powers 

under Rule 902, Rule 903 or otherwise. 

Rule 1202(b)(i)(B) is modified to specify 

that the Clearing Member to whom the 

Defaulter’s position is being transferred 

must be a Participant for purposes of the 

creation of a Securities Transfer Order. 

The scope of Position Transfer Orders 

under Rule 1202(f) is unchanged: each 

Position Transfer Order applies and has 

effect in respect of the Contracts to be 

transferred, assigned or novated. 

Additional means of creating 

Securities Transfer Orders are added at 

Rules 1202(b)(ii) through (b)(vi). These 

Securities Transfer Orders are new to 

Part 12 of the Rules. 

Under Rule 1202(b)(ii) a ‘‘Collateral 

Transfer Order’’ arises if and when the 

Clearing House accepts, through the ICE 

Systems, that a Clearing Member has 

validly requested either the transfer of 

Non-Cash Collateral to the order of the 

Clearing House, or a transfer to that 

Clearing Member or to its order of NonCash Collateral. Under Rule 1202(g), a 

Collateral Transfer Order applies and 

has effect in respect of the Non-Cash 

Collateral to be transferred to or to the 

order of the Clearing House or Clearing 

Member. 

Under Rule 1202(b)(iii), a Securities 

Transfer Order arises when the Clearing 

House has received full, complete and 

correct information in relation to an ICE 

OTC Block Transaction or ICE Futures 

Europe Block Transaction from the 

relevant Market. Such Securities 

Transfer Orders are designated ‘‘Energy 

Block Clearing Orders.’’ In accordance 

with Rule 1202(h) Energy Block 

Clearing Orders apply and have effect in 

respect of the ICE OTC Transaction or 

ICE Futures Europe Transaction in 

question and any resulting Energy 

Contract. 

A Securities Transfer Order arises 

under Rule 1202(b)(iv) in respect of a 

Bilateral CDS Transaction submitted for 

Weekly Clearing if the Clearing House 

provides a report of such transaction to 

a Clearing Member after it has checked 

whether a Bilateral CDS Transaction 

submitted for Clearing is consistent with 

the records submitted by another 

Clearing Member and with the records 

in Deriv/SERV. Such a Securities 

Transfer Order is designated a ‘‘Weekly 

CDS Clearing Order.’’ 

Under Rule 1202(b)(v), a Securities 

Transfer Order arises in respect of a 

Bilateral CDS Transaction that is 

submitted for Trade Date Clearing if the 

Clearing House issues an acceptance 

notice in accordance with Rule 

401(a)(ix) to a Clearing Member through 

the ICE System. Such a Securities 

Transfer Order is designated a ‘‘Trade 

Date CDS Clearing Order.’’ Trade Date 


srobinson on DSK4SPTVN1PROD with NOTICES
15176 Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Notices 

CDS Clearing Orders and Weekly CDS 

Clearing Orders are together designated 

as ‘‘CDS Clearing Orders.’’ Under Rule 

1202(i), each CDS Clearing Order shall 

apply and have effect in respect of the 

Bilateral CDS Transaction in question 

and any resulting CDS Contract. 

Under Rule 1202(b)(vi), a ‘‘CDS 

Physical Settlement Order’’ arises in one 

of two situations. Under Rule 

1202(b)(vi)(A), a CDS Physical 

Settlement Order arises if the Clearing 

House is provided with a copy of a 

notice delivered by a Matched CDS 

Buyer to a Matched CDS Seller in a 

Matched Pair of a Notice of Physical 

Settlement in respect of Matched CDS 

Contracts, where the Notice of Physical 

Settlement specifies an instrument to be 

delivered that is an SFD Security. Under 

Rule 1202(b)(vi)(B), a CDS Physical 

Settlement Order will arise when the 

Clearing House is provided with a copy 

of a notice delivered by a Matched CDS 

Buyer to a Matched CDS Seller in a 

Matched Pair of a NOPS Amendment 

Notice in respect of Matched CDS 

Contracts, where the NOPS Amendment 

Notice specifies an instrument to be 

delivered that is an SFD Security but 

where the Notice of Physical Settlement 

(including, as amended by any previous 

NOPS Amendment Notice) had 

specified an instrument that is not an 

SFD Security as the instrument that was 

to be delivered. Since CDS Physical 

Settlement Orders, as described in Rule 

1202(b)(vi), arise in respect of Matched 

Pairs, then, correspondingly, under Rule 

1202(j), two separate CDS Physical 

Settlement Orders apply and have effect 

separately in respect of each of the CDS 

Contracts in the Matched Pair that are 

subject to a physical settlement 

obligation, and the instrument to be 

delivered pursuant thereto. 

Rule 1202(k) sets forth the scope of 

each Transfer Order in respect of the 

persons against whom such Transfer 

Order has effect. In this respect, Existing 

Rule 1202(g) (now renumbered Rule 

1202(k)) is unchanged in respect of New 

Contract Payment Transfer Orders, 

Credit/Debit Payment Transfer Orders, 

AFI–CB Payment Transfer Orders or 

CB–AFI Payment Transfer Orders. This 

Rule is, however, amended to specify 

the change in name from ‘‘Open Offer 

Payment Transfer Order’’ to ‘‘New 

Contract Payment Transfer Order.’’ 

Rule 1202(k) is also amended to set 

forth the scope (in respect of the persons 

against whom such Transfer Order has 

effect) of Collateral Transfer Orders, 

Energy Block Clearing Transfer Orders, 

CDS Clearing Orders, and CDS Physical 

Settlement Orders. Each of Rules 

1202(k)(v) through (viii) is new text. 

Under Rule 1202(k)(v), a Collateral 

Transfer Order has effect against and 

between each of the following Persons: 

(A) The Clearing Member that is the 

transferor of the Non-Cash Collateral in 

question; (B) any Custodian of the 

Clearing Member or the Clearing House; 

and (C) the Clearing House. 

Under Rule 1202(k)(vi), in the case of 

an Energy Block Clearing Order, such 

Energy Block Clearing Order has effect 

against and between each of the 

following Persons: (A) each Clearing 

Member that has submitted or 

confirmed details of the ICE OTC Block 

Transaction or ICE Futures Europe 

Block Transaction; (B) any Affiliate of 

the Clearing Member that was party to 

an ICE OTC Block Transaction or ICE 

Futures Europe Block Transaction and 

which is an Indirect Participant (if any); 

and (C) the Clearing House. 

Under Rule 1202(k)(vii), a CDS 

Clearing Order has effect against and 

between the following Persons: (A) Each 

Clearing Member that has submitted or 

confirmed details of the Bilateral CDS 

Transaction; (B) any Affiliate of a 

Clearing Member that is or was party to 

a Bilateral CDS Transaction and which 

is an Indirect Participant (if any); and 

(C) the Clearing House. 

Under Rule 1202(k)(viii), a CDS 

Physical Settlement Order will have 

effect against and between the following 

Persons: (A) Each Clearing Member in 

the Matched Pair; and (B) the Clearing 

House. 

In order to ensure that Intermediary 

Financial Institutions are also subject to 

any Transfer Order, new Rule 1202(l) 

sets forth that where a Transfer Order 

applies to an Approved Financial 

Institution, it also applies to and is 

effective against any Intermediary 

Financial Institution used by that 

Approved Financial Institution. 

Rule 1203 sets forth the time(s) at 

which a Transfer Order becomes 

irrevocable. With respect to Credit/Debit 

Payment Transfer Orders, AFI–CB 

Payment Transfer Orders, and CB–AFI 

Payment Transfer Orders, no substantial 

change is made: Rules 1203(a) through 

(c) specify that such Transfer Orders 

become irrevocable at the time that the 

specified party sends a message 

confirming that the relevant payment 

will be made. These Rules are amended 

solely to add, in each case, that such 

Transfer Orders also become irrevocable 

at the time that the specified party sends 

a message confirming that the relevant 

payment has been made. 

Under Rule 1203(d) as it read prior to 

amendment, an Open Offer Payment 

Transfer Order becomes irrevocable 

upon an Approved Financial Institution 

sending specified form of message 

confirming that the relevant payment 

will be made. This Rule is amended to 

specify the change in name from Open 

Offer Payment Transfer Order to New 

Contract Payment Transfer Order, and to 

specify that such Transfer Order 

becomes irrevocable when the specified 

party sends a specified form of message 

confirming that amount to which the 

New Contract Payment Transfer Order 

relates (as specified in Rule 1202(e)(i), 

described above) will be or has been 

made. 

Rule 1203(e) sets forth when a 

Position Transfer Order becomes 

irrevocable. Under that Rule, prior to 

amendment, a Position Transfer Order 

would become irrevocable at the time 

when the definitive record of the long 

or short position of the Clearing Member 

(that is the assignee, transferee or person 

that assumes rights, liabilities and 

obligations pursuant to a novation) is 

updated as a result of a successful 

position transfer clearing run in the ICE 

Systems to reflect the transfer of 

Contracts given effect pursuant to the 

Position Transfer Order. This Rule is 

amended to change the designation from 

‘‘long or short position’’ to the defined 

term ‘‘Open Contract Position,’’ and it is 

also amended to ensure that the 

definitive record referenced may be 

updated to show assignment or novation 

in addition to transfer of Contracts 

which are given effect pursuant to the 

Position Transfer Order. 

Rules 1203(f) through (j) set forth the 

irrevocability standards for Collateral 

Transfer Orders, Energy Block Transfer 

Orders, CDS Clearing Orders, and CDS 

Physical Settlement Orders. Rules 

1203(f) through (j) are new rule text. 

Under Rule 1203(f), a Collateral 

Transfer Order becomes irrevocable at 

the earlier of two times: either when the 

Clearing House receives the Non-Cash 

Collateral, or when any related 

securities transfer order (which relates 

to the same subject matter as the 

Collateral Transfer Order but which a 

securities transfer order in a designated 

system for purposes of the Settlement 

Finality Legislation which is not the 

Designated System) becomes 

irrevocable. 

Under Rule 1203(g), an Energy Block 

Clearing Order becomes irrevocable at 

the time that the Clearing House 

becomes party to resulting Contracts 

with the Clearing Members in question, 

pursuant to Rule 401(a)(iii) or (iv). 

Under Rule 1203(h), a CDS Clearing 

Order shall become irrevocable when 

the time specified pursuant to the 

Procedures occurs for the acceptance of 

the resulting CDS Contracts in question, 

pursuant to Rule 401(a)(x). 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Notices 15177 

Under Rule 1203(i), a CDS Physical 

Settlement Order shall become 

irrevocable at the earliest of three times: 

first, when the Matched CDS Buyer in 

the Matched Pair has submitted 

irrevocable instructions to a securities 

system, depository, nominee or 

custodian for the transfer of securities to 

or to the account of the Matched CDS 

Seller; second, at the time at which the 

instrument subject to physical 

settlement is delivered or assigned or at 

which physical settlement obligations 

are otherwise discharged; or third, if the 

Matched CDS Buyer or Matched CDS 

Seller has (in the absence of any 

Matching Reversal Notice or not later 

than one Business Day after any 

Matching Reversal Notice) given notice 

to the Clearing House in accordance 

with Rule 1511 or the Procedures (as 

applicable) that the relevant Matched 

Pair have settled the relevant Matched 

CDS Contracts. 

Rule 1204 sets forth the rules 

regarding cancellation and variation of 

Transfer Orders. The following 

amendments are made to Rule 1204 to 

correspond to the amendments noted 

above. 

Rule 1204(a)(i) provides a residual 

category of rules for determination of 

cancellation. That residual category is 

where the Transfer Order in question is 

affected by manifest or proven error. 

While Rule 1204(a)(i) is new text, it 

generally tracks the circumstances 

permitting cancellation of Transfer 

Orders found in Rule 1206 (as the same 

is written prior to amendment). Rule 

1206 is now deleted, as cancellation and 

variation of Transfer Orders is 

consolidated into Rule 1204. 

Rule 1204(a)(ii) through (v) set forth 

cancellation and variation rules for New 

Contract Payment Transfer Orders, 

Credit/Debit Payment Transfer Orders, 

Position Transfer Orders, Weekly CDS 

Clearing Orders, CDS Clearing Orders, 

Physical Settlement Orders, or Energy 

Block Clearing Orders. 

Under Rule 1204(a)(ii), New Contract 

Payment Transfer Orders, Credit/Debit 

Payment Transfer Orders, or Position 

Transfer Orders may be cancelled or 

varied if they are void ab initio pursuant 

to Rule 403, avoided pursuant to Rule 

404, or amended as a result of the 

Clearing House exercising its discretion 

pursuant to Rule 104 or otherwise 

pursuant to the Rules. 

Without prejudice to the generality of 

Rule 1204(a)(i), Rule 1204(a)(iii) sets 

forth that cancellation or variation, in 

the case of a Weekly CDS Clearing 

Order, may occur if an error or omission 

is noted by or notified to the Clearing 

House prior to the Acceptance Time or 

the data relating to any Bilateral CDS 

Transaction to which the Weekly CDS 

Clearing Order relates is otherwise 

capable of being amended in accordance 

with the Procedures. Rule 1204(a)(iii) is 

new text. 

Under Rule 1204(a)(iv), variation or 

cancellation may occur, in the case of a 

CDS Physical Settlement Order, if a 

NOPS Amendment Notice is validly 

delivered by the Matched CDS Buyer in 

accordance with Rule 1505 and Rule 

1509. Rule 1204(a)(iv) is new text. 

Without prejudice to the generality of 

Rule 1204(a)(i), (ii) or (iii), under Rule 

1204(a)(v), variation or cancellation may 

occur, in the case of an Energy Block 

Clearing Order or CDS Clearing Order, 

if such Order relates to a Transaction 

which is not eligible for Clearing or 

which is not accepted for Clearing by 

the Clearing House. Rule 1204(a)(v) is 

new text. 

Under Rule 1204(b) prior to 

amendment, neither the validity nor the 

irrevocability of any Transfer Order 

would of itself be affected by any event 

described in Rule 1204(a) occurring. 

This Rule is amended to ensure that it 

is subject to new Rules 1205(d), (f), and 

(g) relating to termination of Transfer 

Orders. Rules 1205(d), (f), and (g) are 

described below. 

Rule 1204(c) states that the terms of 

all Transfer Orders that have not 

become irrevocable shall each be subject 

to a condition (which, if not satisfied, 

shall enable the Clearing House to 

exercise its rights under Rule 1204) that 

the circumstances described above in 

Rule 1204(a) have not occurred. Rule 

1204(c) is new text. 

Rule 1204(d) describes the procedure 

for Transfer Order Variation. Under that 

Rule, if any of the circumstances 

described in Rule 1204(a) has occurred, 

then the amount payable, Contracts to 

be transferred or to arise or SFD 

Securities or Non-Cash Collateral to be 

delivered pursuant to the affected 

Transfer Order may at the discretion of 

ICE Clear Europe be increased, 

decreased or otherwise varied (as 

necessary) to reflect payments, transfers, 

Contracts, assignments, novations, SFD 

Securities, Non-Cash Collateral or 

deliveries that would have been 

required under specified circumstances. 

Specifically, the variation permitted by 

ICE Clear Europe is that which would 

have been required: (i) In the case of 

Rule 1204(a)(i) applying, had there been 

no error; (ii) in the case of Rule 

1204(a)(ii)(A), Rule 1204(a)(ii)(B) or 

Rule 1204(a)(v) applying as described 

above, had no Contract or Transaction 

ever arisen or occurred; (iii) in the case 

of Rule 1204(a)(ii)(C) applying as 

described above, had the Contract 

always been subject to such amended 

terms as are agreed or determined; (iv) 

in the case of Rule 1204(a)(iii) applying 

as described above, had the details of 

the Bilateral CDS Transaction always 

been corrected or amended as permitted 

in accordance with the Procedures; or 

(v) in the case of Rule 1204(a)(iv) 

applying as described above, and the 

NOPS Amendment Notice specifies an 

instrument to be delivered that is an 

SFD Security, as if the Notice of 

Physical Settlement had been originally 

issued as amended pursuant to the 

NOPS Amendment Notice. This text 

replaces the earlier procedure for 

variation by ICE Clear Europe, which 

permitted variation to amounts that 

would have been required, in the case 

of the application of Rule 1204(a)(i) or 

(ii), had no Contract or Transaction ever 

arisen or occurred, and in the case of 

application of Rule 1204(a)(iii), had the 

Contract always been subject to such 

amended terms as are agreed or 

determined. 

Rule 1204(e) is unchanged in that a 

Transfer Order Variation may be 

effected only by the Clearing House 

delivering a notice of amendment of an 

existing Transfer Order to all affected 

Participants. However, the rule 

amendments clarify that valid delivery 

of a NOPS Amendment Notice in 

accordance with Rules 1505 and 1509 

by a Matched CDS Buyer in a Matched 

Pair is deemed to constitute notice by 

the Clearing House for purposes of Rule 

1204(e) in respect of a Transfer Order 

Variation to a CDS Physical Settlement 

Order, if the NOPS Amendment Notice 

specifies an instrument to be delivered 

that is an SFD Security. 

Rule 1204(f) replaces former Rule 

1206(a) relating to cancellation of 

Transfer Orders in lieu of Variation. 

Under Rule 1204(f), if any of the 

circumstances described in Rule 1204(a) 

has occurred, then the Transfer Order in 

question may at the discretion of the 

Clearing House alternatively be 

cancelled. Any such cancellation may 

under Rule 1204(f) be effected by the 

Clearing House serving a notice of 

cancellation on all affected Participants. 

Rule 1204(f) also clarifies that in respect 

of an Energy Block Clearing Order or 

CDS Clearing Order, such notice shall 

be deemed to have been given if the 

Clearing House (or, in the case of an 

Energy Block Clearing Order, any 

Market) rejects a Transaction for 

Clearing. 

Under Rule 1204(g), which is new 

text, a CDS Physical Settlement Order 

shall be cancelled immediately and 

automatically if and when a copy is 

provided to the Clearing House of a 

validly delivered NOPS Amendment 


srobinson on DSK4SPTVN1PROD with NOTICES
15178 Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Notices 

Notice specifying an instrument for 

delivery which is not an SFD Security. 

Rule 1204(h) replaces former Rule 

1206(b) relating to the ability of ICE 

Clear Europe to take steps giving rise to 

a new Transfer Order of opposite effect 

to an existing Transfer Order that is 

subject to the events of Rule 1204(a). 

Rule 1204(h) retains the ability of the 

Clearing House to take steps giving rise 

to a new Transfer Order of opposite 

effect to an existing Transfer Order or 

part thereof if any of the events 

described in Rule 1204(a) occur. 

However, the Rule as amended states 

that no Transfer Order Variation shall 

preclude the cancellation of a Transfer 

Order in any circumstances in which a 

Transfer Order may alternatively be 

cancelled by the Clearing House, and 

also that the ability of the Clearing 

House to cancel a Transfer Order shall 

not preclude a Transfer Order Variation 

from taking effect. 

Rule 1205 sets forth the provisions for 

termination (satisfaction) of Transfer 

Orders. Rules 1205(a) and (b), which are 

formerly designated Rules 1207(a) and 

(b), are unchanged, except that the term 

‘‘terminate’’ is replaced with ‘‘be 

satisfied’’ to denote the satisfaction 

(rather than ‘‘termination’’) of such 

Orders. Also, the provisions of Rule 

1205(b) are modified to clarify that each 

Position Transfer Order shall be 

satisfied immediately and automatically 

at the same time that it becomes 

irrevocable under Rule 1203 

(whereupon all Contracts to which the 

Transfer Order in question relates will 

have been transferred, assigned or 

novated pursuant to the Rules). 

Rules 1205(c) through (g) describe 

satisfaction of Collateral Transfer 

Orders, CDS Clearing Orders, Energy 

Block Clearing Orders, CDS Physical 

Settlement Orders, Credit/Debit 

Payment Transfer Orders, and New 

Contract Payment Transfer Orders. 

Rule 1205(c) sets out the procedures 

for satisfaction of Collateral Transfer 

Orders. This Rule comprises new text. 

Under the Rule, each Collateral Transfer 

Order shall be satisfied immediately and 

automatically at the later of two times: 

either when the Clearing House receives 

the Non-Cash Collateral in its account, 

or when the definitive record of the 

Permitted Cover transferred by the 

Clearing Member that is the transferor is 

updated in the ICE Systems to reflect 

the successful transfer of Non-Cash 

Collateral to or to the order of the 

Clearing House pursuant to the 

Collateral Transfer Order. 

Under Rule 1205(d), the procedures 

for satisfaction of CDS Clearing Orders 

or Energy Block Clearing Orders are set 

forth. Rule 1205(d) is new. Under this 

Rule, CDS Clearing Orders or Energy 

Block Clearing Orders are satisfied 

immediately and automatically at the 

same time that the relevant resulting 

Contracts arise under Rule 401(a). 

The satisfaction of CDS Physical 

Settlement Orders is described in new 

Rule 1205(e). Under that Rule, a CDS 

Physical Settlement Order is satisfied 

immediately and automatically at the 

time when ICE Clear Europe updates its 

records of the relevant CDS Contracts in 

the ICE Systems to reflect that either 

physical delivery of the security in 

question has been completed or the 

delivery obligations of the parties under 

the relevant CDS Contracts have 

otherwise been discharged or settled. 

Rule 1205(f) amends and replaces 

prior Rule 1207(c). Under Rule 1207(c), 

if a Credit/Debit Payment Transfer 

Order or Insufficient Funds Payment 

Transfer Order becomes irrevocable in 

respect of the same obligation to which 

an Open Offer Payment Transfer Order 

relates, the Open Offer Payment 

Transfer Order shall automatically be 

terminated and shall not become 

irrevocable. Under Rule 1205(f) as it is 

amended, the reference to Insufficient 

Funds Payment Transfer Order is 

deleted, the term Open Offer Payment 

Transfer Order is renamed New Contract 

Payment Transfer Order, and the term 

‘‘terminated’’ is replaced with 

‘‘satisfied.’’ Further, the amendment 

acknowledges that New Contract 

Payment Transfer Orders will generally 

terminate in accordance with Rule 

1205(f) when standard clearing and 

payment processes apply. 

Under Rule 1205(g), a New Contract 

Payment Transfer Order relating to an 

Energy Contract shall be satisfied 

immediately and automatically if and at 

the point that the relevant Energy 

Transaction or Contract is transferred or 

allocated to another Clearing Member 

pursuant to Rule 401(a)(viii) or Rule 

408(a)(ii). This replaces former Rule 

1207(d), under which an Open Offer 

Payment Transfer Order is terminated 

immediately and automatically if and at 

the point that the relevant Transaction 

is transferred or allocated to another 

Clearing Member pursuant to Rule 

401(a)(viii) or Rule 408(a)(ii). 

ICE Clear Europe has engaged in a 

public consultation process in relation 

to all the changes, pursuant to the 

Circulars referred to above, and as 

required under U.K. legislation. ICE 

Clear Europe has received no opposing 

views or comments in relation to the 

proposed rule amendments. 

(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. 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. ICE 

Clear Europe will notify the 

Commission of any written comments 

received by ICE Clear Europe. 

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–2012–03 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–2012–03. 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 


srobinson on DSK4SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Notices 15179 

5 15 U.S.C. 78s(b). 

6 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). 

7 15 U.S.C. 78q–1(b)(3)(F). 8 17 CFR 200.30–3(a)(12). 

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_Settlement_Finality_

Rule_Filing.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–2012–03 and 

should be submitted on or before April 

4, 2012. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

Section 19(b) of the Act 5 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,6 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,7 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 will contribute to ICE Clear 

Europe ensuring settlement finality of 

certain transfer, clearing, and settlement 

orders under the Settlement Finality 

Legislation. 

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 these changes are 

required pursuant to the Settlement 

Finality Legislation. Specifically, these 

changes reflect modifications to ICE 

Clear Europe’s clearing and payment 

systems that have been proposed 

following designation by U.K. 

authorities as a ‘‘designated system’’ for 

purposes of such legislation; the 

proposed changes follow various 

meetings and discussions with the 

relevant U.K. authorities. If ICE Clear 

Europe does not make the changes 

described in this rule proposal, ICE 

Clear Europe may be in contravention of 

home country and home region 

legislation. 

V. Conclusion 

It is therefore ordered pursuant to 

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

proposed rule change (SR–ICEEU–2012– 

03) be, and hereby is, approved on an 

accelerated basis. 

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.8

Kevin O’Neill, 

Deputy Secretary. 

[FR Doc. 2012–6105 Filed 3–13–12; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #13029 and #13030] 

Kentucky Disaster #KY–00044; 

Disaster Declaration for Kentucky 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a Notice of the 

Presidential declaration of a major 

disaster for the Commonwealth of 

Kentucky (FEMA—4057—DR), dated 

03/06/2012. 

Incident: Severe Storms, Tornadoes, 

Straight-line Winds, and Flooding. 

Incident Period: 02/29/2012 through 

03/03/2012. 

DATES: Effective Date: 03/06/2012. 

Physical Loan Application Deadline 

Date: 05/07/2012. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 12/06/2012. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing And 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: A. 

Escobar, Office of Disaster Assistance, 

U.S. Small Business Administration, 

409 3rd Street SW., Suite 6050, 

Washington, DC 20416. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

President’s major disaster declaration on 

03/06/2012, applications for disaster 

loans may be filed at the address listed 

above or other locally announced 

locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties (Physical Damage and 

Economic Injury Loans) 

Johnson, Kenton, Laurel, Lawrence, 

Menifee, Morgan, Pendleton. 

Contiguous Counties (Economic Injury 

Loans Only): 

Kentucky: Bath, Boone, Boyd, 

Bracken, Campbell, Carter, Clay, 

Elliott, Floyd, Grant, Harrison, 

Jackson, Knox, Magoffin, Martin, 

McCreary, Montgomery, Powell, 

Pulaski, Rockcastle, Rowan, 

Whitley, Wolfe. 

Ohio: Clermont, Hamilton. 

West Virginia: Wayne. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners With Credit 

Available Elsewhere ............ 3.750 

Homeowners Without Credit 

Available Elsewhere ............ 1.875 

Businesses With Credit Available Elsewhere .................... 6.000 

Businesses Without Credit 

Available Elsewhere ............ 4.000 

Non-Profit Organizations With 

Credit Available Elsewhere .. 3.125 

Non-Profit Organizations Without Credit Available Elsewhere ................................... 3.000 

For Economic Injury: 

Businesses & Small Agricultural Cooperatives Without 

Credit Available Elsewhere .. 4.000 

Non-Profit Organizations Without Credit Available Elsewhere ................................... 3.000 

The number assigned to this disaster 

for physical damage is 13029C and for 

economic injury is 130300. 

(Catalog of Federal Domestic Assistance 

Numbers 59002 and 59008) 

James E. Rivera, 

Associate Administrator for Disaster 

Assistance. 

[FR Doc. 2012–6093 Filed 3–13–12; 8:45 am] 

BILLING CODE 8025–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #13027 and #13028; 

Washington Disaster #WA–00036] 

Disaster Declaration for Washington 

AGENCY: U.S. Small Business 

Administration. 


srobinson on DSK4SPTVN1PROD with NOTICES