5610 Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 

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)(4)(ii). 

5 15 U.S.C. 78q–1. 

6 17 CFR 240.17Ad–22. 

7 15 U.S.C. 78q–1(b)(3)(F). 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–74148; File No. SR–ICEEU– 

2015–002] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change Relating to 

Clearance of New Government Bond 

Contracts 

January 27, 2015. 

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 January 

16, 2015, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’ or the ‘‘Clearing 

House’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change described in 

Items I, II and III below, which Items 

have been prepared primarily by ICE 

Clear Europe. ICE Clear Europe filed the 

proposal pursuant to Section 19(b)(3)(A) 

of the Act,3 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. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The principal purpose of the 

proposed rule change is to modify 

certain aspects of the ICE Clear Europe 

Delivery Procedures in connection with 

Euro-Denominated Government Bond 

Contracts and Swiss Confederation 

Bond Contracts (collectively, the 

‘‘European Government Bond 

Contracts’’), which are traded on the ICE 

Futures Europe market and cleared 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 purpose of the proposed rule 

change is to modify certain aspects of 

the ICE Clear Europe Delivery 

Procedures in connection with 

European Government Bond Contracts, 

which are traded on ICE Futures Europe 

and cleared by ICE Clear Europe. ICE 

Clear Europe does not otherwise 

propose to amend its clearing rules or 

procedures in connection with the 

European Government Bond Contracts. 

The amendments adopt new Parts U 

and V of the Delivery Procedures, which 

will be applicable to the European 

Government Bond Contracts in the case 

of physical delivery. Part U applies to 

Euro-Denominated Government Bond 

Contracts (a category that currently 

consists of futures contracts on German, 

Italian and Spanish government bonds). 

Part V applies to Swiss francdenominated futures contracts on Swiss 

government bonds. The amendments 

also adopt new Part W of the Delivery 

Procedures, which addresses the 

treatment of certain cash claims, 

distributions, transformations or other 

events (collectively, ‘‘debt events’’) that 

may arise or occur with respect to a 

bond underlying a government bond 

contract during the delivery period. 

Each of new Parts U and V of the 

Delivery Procedures provides, among 

other matters, specifications for delivery 

of the applicable deliverable bonds 

under a European Government Bond 

Contract through the Clearing House’s 

account at the relevant European 

securities settlement system (Euroclear, 

Clearstream Banking or SIX SIS AG, as 

applicable) for the particular 

government bonds. Each Part also 

provides relevant definitions and a 

detailed timetable for the respective 

notice, allocation, delivery and other 

obligations of the parties (and the 

Clearing House) in respect of delivery 

under the relevant contracts. The 

amendments further address invoicing 

and payment for delivery. 

New Part W of the Delivery 

Procedures addresses the occurrence of 

certain debt events with respect to the 

bonds underlying a government bond 

contract after the expiry date of the 

contract (and thus during the relevant 

delivery period for the contract). These 

include cash claims arising in relation 

to the underlying bond, the distribution 

of other obligations to a bondholder 

(such as a payment in kind), and/or a 

transformation of the underlying bond 

(for example pursuant to a currency 

redenomination or debt restructuring). 

Part W clarifies the rights and 

obligations of the buyer and seller under 

the relevant contract in respect of such 

an event (in general, the buyer under the 

contract will be entitled to the relevant 

cash claim, distribution or transformed 

obligation). Part W also provides certain 

limitations on the obligations and 

liability of the Clearing House with 

respect to a debt event. The 

amendments provide mechanics for 

notification of a debt event where an 

election is required to be made. The 

amendments also contain procedures to 

address failed deliveries and settlements 

in connection with debt events, as well 

as certain related tax liabilities. 

ICE Clear Europe believes that the 

changes described herein are consistent 

with the requirements of Section 17A of 

the Act 5 and the regulations thereunder 

applicable to it, including the standards 

under Rule 17Ad–22,6 and are 

consistent with the prompt and accurate 

clearance of and settlement of securities 

transactions and, to the extent 

applicable, derivative agreements, 

contracts and transactions, the 

safeguarding of securities and funds in 

the custody or control of ICE Clear 

Europe or for which it is responsible 

and the protection of investors and the 

public interest, within the meaning of 

Section 17A(b)(3)(F) of the Act.7 The 

proposed delivery procedures for 

European Government Bond Contracts 

are similar to those of other ICE Futures 

Europe contracts currently cleared by 

ICE Clear Europe, including the UK 

government bond futures contracts. ICE 

Clear Europe believes that its existing 

financial resources, risk management, 

systems and operational arrangements 

are sufficient to support clearing of such 

products and physical delivery under 

such products (and will not be 

adversely affected by the proposed 

amendments to the Delivery 

Procedures). 

Specifically, ICE Clear Europe 

believes that it will be able to manage 

the risks associated with physical 

delivery under the European 

Government Bond Contracts. The 

European Government Bond Contracts 

present a similar risk profile to other 

government bond futures contracts 

currently traded on ICE Futures Europe 

and cleared by ICE Clear Europe, and 

ICE Clear Europe believes that its 

existing risk management and margin 

framework is sufficient for purposes of 

risk management of the European 

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Federal Register / Vol. 80, No. 21 / Monday, February 2, 2015 / Notices 5611 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78s(b)(3)(A). 

10 17 CFR 240.19b–4(f)(4)(ii). 11 17 CFR 200.30–3(a)(12). 

Government Bond Contracts and related 

deliveries. 

Similarly, ICE Clear Europe has 

established appropriate standards for 

determining the eligibility of contracts 

submitted to the Clearing House for 

clearing, and ICE Clear Europe believes 

that its existing systems are 

appropriately scalable to handle 

physical delivery under the European 

Government Bond Contracts, which is 

generally similar from an operational 

perspective to delivery under other ICE 

Futures Europe bond contracts currently 

cleared by ICE Clear Europe. 

For the reasons noted above, ICE Clear 

Europe believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 8

and regulations thereunder applicable to 

it. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

ICE Clear Europe does not believe the 

proposed rule change will have any 

impact, or impose any burden, on 

competition not necessary or 

appropriate in furtherance of the Act. 

ICE Clear Europe is adopting the 

amendments to the Delivery Procedures 

in connection with European 

Government Bond Contracts traded on 

the ICE Futures Europe market. ICE 

Clear Europe believes that such 

contracts will provide additional 

opportunities for interested market 

participants to engage in trading activity 

relating to European government bond 

futures. ICE Clear Europe does not 

believe the adoption of related Delivery 

Procedures amendments would 

adversely affect access to clearing for 

clearing members or their customers, or 

otherwise adversely affect competition 

in clearing services. 

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 not been 

solicited or received. 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) 9 of the Act and Rule 19b– 

4(f)(4)(ii) 10 thereunder. 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. 

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– 

ICEEU–2015–002 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–ICEEU–2015–002. 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 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/clear-europe/

regulation. 

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–2015–002 and 

should be submitted on or before 

February 23, 2015. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Jill M. Peterson, 

Assistant Secretary. 

[FR Doc. 2015–01866 Filed 1–30–15; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF STATE 

[Public Notice 9021] 

U.S. Advisory Commission on Public 

Diplomacy; Notice of Meeting 

The U.S. Advisory Commission on 

Public Diplomacy will hold a public 

meeting from 10:00 a.m. until 11:30 

a.m., Thursday, February 26, 2015 at the 

American Foreign Service Association, 

2101 E Street NW., Washington, DC 

20037. 

The meeting’s topic will be on 

‘‘Countering Russian Disinformation’’ 

and will feature representatives from the 

State Department and the Broadcasting 

Board of Governors who will discuss 

their current strategies and tactics in 

this effort and the interagency 

coordination that is, or is not, under 

way. 

This meeting is open to the public, 

Members and staff of Congress, the State 

Department, Defense Department, the 

media, and other governmental and 

non-governmental organizations. To 

attend and make any requests for 

reasonable accommodation, email 

pdcommission@state.gov by 5 p.m. on 

Thursday, February 19, 2015. Please 

arrive for the meeting by 9:45 a.m. to 

allow for a prompt meeting start. 

The United States Advisory 

Commission on Public Diplomacy 

appraises U.S. Government activities 

intended to understand, inform, and 

influence foreign publics. The Advisory 

Commission may conduct studies, 

inquiries, and meetings, as it deems 

necessary. It may assemble and 

disseminate information and issue 

reports and other publications, subject 

to the approval of the Chairperson, in 

consultation with the Executive 

Director. The Advisory Commission 

may undertake foreign travel in pursuit 

of its studies and coordinate, sponsor, or 

oversee projects, studies, events, or 

other activities that it deems desirable 

and necessary in fulfilling its functions. 

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