Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices 551 

32See supra note 16. 

33 17 CFR 240.17Ad–22(e)(1). 

34 15 U.S.C. 78q–1(b)(3)(F). 

35 Id. 

36 17 CFR 240.17Ad–22(e)(1). 

37 Id. 

38 15 U.S.C. 78s(b)(2)(C)(iii). 

39 Id. 

40 15 U.S.C. 78q–1. 

41 15 U.S.C. 78s(b)(2). 

42 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). 

43 17 CFR 200.30–3(a)(12). 

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). 

has represented that notwithstanding 

the creation of standard omnibus 

indirect accounts for FCM/BD Clearing 

Members that will be made available as 

position-keeping subaccounts of the 

existing customer accounts, the Swap 

Customer Account is not currently 

available for use by FCM/BD Clearing 

Members for customer positions in CDS 

Contracts (including CDS Contracts that 

are security-based swaps).32 The 

Commission relies on these particular 

representations and explanations by ICE 

Clear Europe. Consequently, the 

Commission believes that the proposed 

rule changes regarding Indirect Clearing 

facilitate ICE Clear Europe’s ability to 

comply with regulatory requirements in 

the jurisdictions in which it operates, 

and help ensure that ICE Clear Europe’s 

policies and procedures provide for a 

well-founded, clear, transparent, and 

enforceable legal basis for each aspect of 

its activities in all relevant jurisdictions, 

consistent with the requirements of Rule 

17Ad–22(e)(1).33

b. Straight-Through Processing 

The Commission understands that ICE 

Clear Europe is required under relevant 

provisions of MiFID II to implement 

certain provisions regarding straightthrough processing. The Commission 

believes that the proposed rule changes 

regarding straight-through processing 

will better enable ICE Clear Europe to 

ensure that transactions are submitted, 

accepted, and cleared without undue 

delay. Therefore, the Commission finds 

that the proposed rule changes 

regarding straight-through processing 

promote the prompt and accurate 

clearance and settlement of securities 

transactions consistent with the 

requirements of Section 17A(b)(3)(F) of 

the Act.34 Moreover, the Commission 

further finds the proposed rule changes 

regarding straight-through processing 

protect investors and the public interest, 

consistent with Section 17A(b)(3)(F) of 

the Act 35 because the expeditious 

processing of transactions in cleared 

derivatives reduces the possibility of 

those transactions being disrupted by 

intervening events, such as a 

technological breakdown or a reduction 

in the financial condition of one of the 

counterparties. Furthermore, because 

the Commission believes that the 

proposed rule changes regarding 

straight-through process will maintain 

the consistency of ICE Clear Europe’s 

CDS Procedures with relevant 

provisions of MiFID II, the Commission 

finds that such proposed changes will 

help ensure that ICE Clear Europe’s 

policies and procedures provide for a 

well-founded, clear, transparent, and 

enforceable legal basis for each aspect of 

its activities in all relevant jurisdictions, 

consistent with Rule 17Ad–22(e)(1).36

c. Other Provisions 

With respect to the proposed rule 

changes amending ICE Clear Europe’s 

Rules to implement new definitions for 

‘‘Emission Allowance’’ and ‘‘Emissions 

Registry’’, as well as certain related 

conforming and clarifying edits, and the 

proposed changes to the Clearing 

Procedures to rename ICE Clear 

Europe’s ‘‘Market Maker Programs’’ as 

‘‘Liquidity Provider Programs’’ and to 

rename the relevant position keeping 

accounts accordingly, the Commission 

believes that the proposed rule changes 

will better enable ICE Clear Europe to 

maintain consistency with the relevant 

provisions of MiFID II, thereby helping 

to ensure that ICE Clear Europe’s 

policies and procedure provide for a 

well-founded, clear, transparent, and 

enforceable legal basis for each aspect of 

its activities in all relevant jurisdictions. 

As a result, the Commission finds that 

such proposed rule changes are 

consistent with the requirements of Rule 

17Ad–22(e)(1).37

In its filing, ICE Clear Europe 

requested that the Commission grant 

accelerated approval of the proposed 

rule change pursuant to Section 

19(b)(2)(C)(iii) of the Exchange Act.38

Under Section 19(b)(2)(C)(iii) of the 

Act,39 the Commission may grant 

accelerated approval of a proposed rule 

change if the Commission finds good 

cause for doing so. ICE Clear Europe 

believes that accelerated approval is 

warranted because the proposed rule 

change is required in order to comply 

with the MiFID II requirements, which 

go into effect on January 3, 2018. 

The Commission finds good cause, 

pursuant to Section 19(b)(2)(C)(iii) of 

the Act, for approving the proposed rule 

change on an accelerated basis, prior to 

the 30th day after the date of 

publication of notice in the Federal 

Register, because the proposed rule 

change is required as of January 3, 2018 

in order to facilitate ICE Clear Europe’s 

efforts to comply with the 

aforementioned MiFID II requirements. 

Additionally, the Commission notes that 

the proposed changes do not impede 

compliance with relevant U.S. law, 

including Section 17A(b)(3)(F) of the 

Act. 

V. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposal is 

consistent with the requirements of the 

Act and in particular with the 

requirements of Section 17A of the 

Act 40 and the rules and regulations 

thereunder. 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act 41 that the 

proposed rule change (SR–ICEEU–2017– 

014) be, and hereby is, approved on an 

accelerated basis.42

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.43

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–28493 Filed 1–3–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82415; File No. SR–ICEEU– 

2017–015] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Relating to 

Amendments to the ICE Clear Europe 

Clearing Procedures for the Exercise 

of F&O Options Contracts 

December 28, 2017. 

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 December 

20, 2017, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

changes described in Items I, II, and III 

below, which Items have been primarily 

prepared by ICE Clear Europe. ICE Clear 

Europe filed the proposed rule change 

pursuant to Section 19(b)(3)(A) of the 

Act,3 and Rule 19b–4(f)(4)(ii) 

thereunder,4 so that the proposal was 

immediately effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 


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552 Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices 

5Capitalized terms used but not defined herein 

have the meanings specified in the Procedures or 

the ICE Clear Europe Clearing Rules. 

6These contracts include ICE Futures West Texas 

Intermediate Light Sweet Crude Oil Options 

Contract; ICE Futures West Texas Intermediate 

Light Sweet Crude Oil (CAD Denominated) Options 

Contract; ICE Futures West Texas Intermediate 

Light Sweet Crude Oil Weekly Options Contract; 

ICE Futures New York Harbour Heating Oil Options 

Contract; and ICE Futures New York Harbour 

Unleaded Gasoline Blendstock (RBOB) Options 

Contract. 

7 15 U.S.C. 78q–1. 

8 17 CFR 240.17Ad–22. 

9 15 U.S.C. 78q–1(b)(3)(F). 

10 17 CFR 240.17Ad–22(e)(21)(i) and (iv). 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change, Security-Based Swap 

Submission, or Advance Notice 

The principal purpose of the 

proposed amendments is to modify 

certain provisions of the ICE Clear 

Europe Procedures (the ‘‘Procedures’’) 5

applicable to the exercise of F&O option 

contracts in order to align the 

Procedures with recent changes to ICE 

Futures Europe (the ‘‘Exchange’’ or 

‘‘IFEU’’) rules for certain energy option 

contracts (the ‘‘Affected Contracts’’).6

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission or Advance Notice 

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 

such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission or Advance Notice 

(a) Purpose 

The purpose of the proposed changes 

is to amend certain provisions of the 

Procedures applicable to the exercise of 

F&O option contracts in order to align 

the Procedures with changes to the 

Exchange rules for the Affected 

Contracts. 

The amendments to the Procedures 

principally address the following 

matters: 

Exercise of At-The-Money Options 

The Procedures are being revised to 

contemplate automatic exercise of call 

options that are at-the-money on the 

expiration date, where the relevant 

Exchange contract specifications so 

provide. 

Exercise Instructions on the Expiration 

Date 

The Procedures are also being revised 

to contemplate that some options cannot 

be electively (as opposed to 

automatically) exercised or abandoned 

on the expiration date, where the 

relevant Exchange contract 

specifications so provide. 

Both sets of changes are intended to 

be consistent with the revised contract 

specifications for the Affected Contracts, 

which will feature automatic exercise of 

at-the-money call options and 

limitations on elective exercise on the 

expiration date. 

The amendments to the Procedures 

also contain various other updates and 

clarifications to option exercise 

procedures. The specified changes being 

made to the Procedures are as follows: 

In paragraph 5.1, a definition of ‘At 

The Money’ has been added. 

Several provisions have been updated 

to change terminology from ‘‘manual 

exercise’’ to ‘‘elective exercise’’ and 

clarify that elective exercise instructions 

or other notices may be submitted 

electronically in accordance with 

relevant technical specifications in 

effect (including via API) as well as 

manually via the ICE systems. These 

include paragraphs 5.2(b)(i), 5.3(a), 

5.3(b), 5.4(a), 5.4(b) and 5.5(c). 

Paragraph 5.2(c) has been revised to 

provide that the default settings to be 

applied for purpose of automatic 

exercise will be specified in the contract 

terms of the Exchange. 

In paragraph 5.3(b), a clarification has 

been made that that this section refers 

to early exercise only. 

In paragraph 5.5(b), amendments have 

been made to reflect that Exchange 

contract terms may state that automatic 

exercise will apply to at-the-money 

options, as discussed above. 

In paragraph 5.5(d), an unnecessary 

statement concerning consequences of 

failure to contact the clearing house 

regarding exercise difficulties has been 

removed. 

In paragraph 5.6, text has been added 

to include the determination of whether 

options are at and out of the money. 

Examples in paragraph 5.6(b) have been 

removed as unnecessary and outdated 

in light of the current changes. 

Paragraph 5.7(a) has been amended to 

provide that the Exchange contract 

terms for a particular option will 

determine whether elective exercise 

and/or abandon notifications can be 

submitted on the relevant expiry date, 

as discussed above. 

In paragraph 5.7(b), minor changes 

have been made to improve and correct 

wording and report names. 

(b) Statutory Basis 

ICE Clear Europe believes that the 

proposed amendments are consistent 

with the requirements of Section 17A of 

the Act 7 and the regulations thereunder 

applicable to it, including the standards 

under Rule 17Ad–22.8

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

requires, among other things, that the 

rules of a clearing agency be designed to 

promote the prompt and accurate 

clearance 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 the clearing 

agency or for which it is responsible, 

and the protection of investors and the 

public interest. The proposed 

amendments align exercise procedures 

for F&O option contracts with recent 

changes to relevant Exchange rules, and 

make certain other updates to such 

procedures. Specifically, the 

amendments revise exercise procedures 

to permit automatic exercise of at-themoney call options and to provide 

limitations on elective exercise on 

expiry day, where provided in the 

Exchange rules. The changes thus 

facilitate prompt and accurate clearance 

and settlement of F&O option contracts, 

consistent with the relevant exchange 

rules. 

In addition, Rule 17Ad–22(e)(21) 10

requires that each covered clearing 

agency establish, implement, maintain 

and enforce written policies and 

procedures reasonably designed to be 

efficient and effective in meeting the 

requirements of its participants and the 

markets it serves, among other matters. 

As discussed above, the amendments 

update exercise procedures with respect 

to option contracts to more effectively 

meet the requirements of its participants 

and the F&O option markets served by 

ICE Clear Europe, and align with 

particular Exchange rules. 

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICE Clear Europe does not believe the 

proposed amendments would have any 

impact, or impose any burden, on 

competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. The amendments 

modify certain provisions of the 


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Federal Register / Vol. 83, No. 3 / Thursday, January 4, 2018 / Notices 553 

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

12 17 CFR 240.19b–4(f)(4)(ii). 13 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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

4 17 CFR 240.19b–4(f)(2). 

5A ‘‘Distributor’’ is defined as ‘‘any entity that 

receives the Exchange Market Data product directly 

from the Exchange or indirectly through another 

entity and then distributes it internally or externally 

to a third party.’’ See the Exchange’s fee schedule 

available at http://markets.cboe.com/us/equities/ 

membership/fee_schedule/edgx/. An ‘‘Internal 

Distributor’’ is defined as ‘‘a Distributor that 

receives the Exchange Market Data product and 

then distributes that data to one or more Users 

within the Distributor’s own entity.’’ Id. 

Procedures applicable to the exercise of 

options to align the Procedures with 

recent changes to the Exchange rules, 

and to make certain other clarifications 

and updates. ICE Clear Europe does not 

believe the amendments would affect 

competition among clearing members or 

adversely affect the cost of clearing, the 

market for clearing services generally or 

access to clearing in these products by 

clearing members 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 amendments have not been 

solicited or received by ICE Clear 

Europe. ICE Clear Europe will notify the 

Commission of any comments received 

with respect to the proposed 

amendments. 

III. Date of Effectiveness of the 

Proposed Rule Change, Security-Based 

Swap Submission and Advance Notice 

and Timing for Commission Action 

The foregoing rule change has become 

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

of the Act 11 and Rule 19b–4(f)(4)(ii) 12

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, security-based swap submission 

or advance notice 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–2017–015 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–2017–015. 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, security-based swap submission 

or advance notice that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change, security-based 

swap submission or advance notice 

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 Section, 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 website at https://

www.theice.com/notices/ 

Notices.shtml?regulatoryFilings. 

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–ICEEU–2017–015 

and should be submitted on or before 

January 25, 2018. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.13

Robert W. Errett, 

Deputy Secretary. 

[FR Doc. 2017–28437 Filed 1–3–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82424; File No. SR– 

CboeEDGX–2017–008] 

Self-Regulatory Organizations; Cboe 

EDGX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change Related to 

Market Data Fees 

December 29, 2017. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

15, 2017, Cboe EDGX Exchange, Inc. 

(the ‘‘Exchange’’ or ‘‘EDGX’’) 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 the Exchange. 

The Exchange has designated the 

proposed rule change as one 

establishing or changing a member due, 

fee, or other charge imposed by the 

Exchange under Section 19(b)(3)(A)(ii) 

of the Act 3 and Rule 19b–4(f)(2) 

thereunder,4 which renders the 

proposed rule change 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 Exchange filed a proposal to a 

mend [sic] the Market Data section of its 

fee schedule to lower the Internal 

Distribution 5 fees and to adopt per User 

fees for the Cboe One Summary Feed. 

The text of the proposed rule change 

is available at the Exchange’s website at 

www.markets.cboe.com, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 


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