71490 Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 

7 15 U.S.C. 78s(b)(3)(A). 

8 17 CFR 240.19b–4(f)(6). 9 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

exchanges. The Exchange believes that 

extending the Pilot will allow for 

continued competition between market 

participants on the Exchange trading 

similar products as their counterparts 

on other exchanges, while at the same 

time allowing the Exchange to continue 

to compete for order flow with other 

exchanges in option issues trading as 

part of the Pilot. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) Significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) 7 of the Act and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.8

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: (i) Necessary or appropriate in 

the public interest; (ii) for the protection 

of investors; or (iii) otherwise in 

furtherance of the purposes of the Act. 

If the Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

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– 

BX–2014–057 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, Station 

Place, 100 F Street NE., Washington, DC 

20549–9303. 

* * * * * 

All submissions should refer to File 

Number SR–BX–2014–057. 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 the 

filing also will be available for 

inspection and copying at the principal 

office of BX. 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–BX–2014–057 and should 

be submitted on or before December 23, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.9

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28321 Filed 12–1–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73683; File No. SR– 

NASDAQ–2014–110] 

Self-Regulatory Organizations; The 

NASDAQ Stock Market LLC; Notice of 

Filing of a Proposed Rule Change To 

Adopt NASDAQ Rule 7015(i) To Offer 

the New IPO Workstation 

November 25, 2014. 

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 November 

14, 2014 The NASDAQ Stock Market 

LLC (‘‘NASDAQ’’ or the ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I, II and III below, which Items 

have been prepared by the Exchange. 

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 the Substance 

of the Proposed Rule Change 

NASDAQ proposes to adopt NASDAQ 

Rule 7015(i) to offer the new IPO 

Workstation. 

The text of the proposed rule change 

is available at http://

nasdaq.cchwallstreet.com/, at 

NASDAQ’s principal office, 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, 

NASDAQ 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 those 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

NASDAQ recently filed a proposed 

rule change to offer the IPO Indicator as 

an enhancement to NASDAQ 

Workstation subscription at no 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 71491 

3See Securities Exchange Act Release No. 73574 

(November 12, 2014) (awaiting publication in the 

Federal Register) (SR–NASDAQ–2014–100). 

4See Rule 4753(a)(3)(A). 

5See Rule 4753(a)(5). 

6See Rule 4753(a)(1). 

7See Rule 4753(b) for a description of the 

processing of the Halt Cross. 

8The Pre-Launch Period is the second phase of 

a two-phase process that NASDAQ uses for 

launching IPOs. The Pre-Launch Period follows a 

15-minute Display Only Period and is of no fixed 

duration. During both periods, the NOII is 

disseminated every five seconds. 

9See Rule 4120(c)(8)(B). 

10The information provided by the IPO Indicator 

is limited to the subscribing member firm’s orders. 

11Supra note 3. 

12The Exchange notes that, in situations where 

there is a Market Order Imbalance, the NOII does 

not provide a Current Reference Price, since not all 

market orders could be executed in the cross and 

therefore there is no price at which the IPO cross 

could occur. 

additional cost.3 The IPO Indicator is 

designed to assist member firms in 

monitoring their orders in the NASDAQ 

Halt Cross process leading up to the 

launch of an initial public offering 

(‘‘IPO’’). NASDAQ is now proposing to 

adopt Rule 7015(i) to offer the new IPO 

Workstation, which will provide 

subscribing member firms with standalone access to the IPO Indicator 

service, at no cost at this time. 

Halt Cross Process 

The NASDAQ Halt Cross is designed 

to provide for an orderly, single-priced 

opening of securities subject to an 

intraday halt, including securities that 

are the subject of an IPO. Prior to the 

Cross execution, market participants 

enter quotes and orders eligible for 

participation in the Cross, and NASDAQ 

disseminates certain information 

regarding buying and selling interest 

entered and the indicative execution 

price information, known as the Net 

Order Imbalance Indicator or NOII. The 

NOII is disseminated every five seconds 

during a designated period prior to the 

completion of the Halt Cross, in order to 

provide market participants with 

information regarding the possible price 

and volume of the Cross. The 

information provided in the NOII 

message includes the Current Reference 

Price,4 which is the price at which the 

Cross would occur if it executed at the 

time of the NOII’s dissemination, and 

the number of shares of Eligible 

Interest,5 which is defined as any 

quotation or any order that may be 

entered into the system and designated 

with a time-in-force that would allow 

the order to be in force at the time of 

the Halt Cross, that would be paired at 

that price. 

NASDAQ also disseminates a Market 

Order Imbalance, which is defined as 

the number of shares of Eligible Interest 

entered through market orders that 

would not be matched with other order 

shares at the time of the dissemination 

of an NOII, if in fact there are such 

unexecutable market order shares. 

When there is a Market Order 

Imbalance, NASDAQ disseminates the 

imbalance and the buy/sell direction of 

the imbalance. For example, if a buydirection Market Order Imbalance is 

disseminated, potential sellers in the 

Cross would know that buy liquidity is 

available at a market price, potentially 

encouraging them to enter additional 

sell orders to allow the Cross to proceed. 

In addition to disseminating 

information about Market Order 

Imbalances, NASDAQ also disseminates 

information about the size and buy/sell 

direction of an Imbalance. An Imbalance 

is defined as the number of shares of 

Eligible Interest with a limit price equal 

to the Current Reference Price that may 

not be matched with other order shares 

at a particular price at any given time.6

As noted above, Eligible Interest is 

defined as any quotation or any order 

that may be entered into the system and 

designated with a time-in-force that 

would allow the order to be in force at 

the time of the Halt Cross. Thus, the 

provided information reflects all shares 

eligible for participation in the Cross, 

regardless of time-in-force, and includes 

non-displayed shares and reserve size. 

As such, the Imbalance information 

indicates the degree to which available 

liquidity on one or the other side of the 

market would not be executed if the 

Cross were to occur at that time. 

Generally, a Halt in a security is 

terminated when NASDAQ determines 

to release a security, at which time the 

Display Only Period begins, culminating 

in the Halt Cross whereby the security 

is released for regular hours trading at 

the price that maximizes the number of 

shares of trading interest eligible for 

participation in the Cross to be 

executed.7 In the case of an IPO, 

underwriters to an IPO make a 

determination to launch an IPO during 

the Pre-Launch Period 8 when they 

believe the security is ready to trade. 

When the underwriter informs 

NASDAQ that it is ready to launch the 

IPO, the NASDAQ system will calculate 

the Current Reference Price at that time 

(the ‘‘Expected Price’’) and display it to 

the underwriter. If the underwriter then 

approves proceeding, the NASDAQ 

system will conduct two validation 

checks. Specifically, the NASDAQ 

system will determine whether all 

market orders will be executed in the 

cross, and whether the Expected Price 

and the price calculated by the Cross 

differ by an amount in excess of the 

price band selected by the underwriter.9

If either of the validation checks fail, the 

security will not be released for trading 

and the Pre-Launch Period will 

continue seamlessly until all 

requirements are met. Alternatively, the 

underwriter may, with the concurrence 

of NASDAQ, determine to postpone and 

reschedule the IPO. 

IPO Indicator and IPO Workstation 

The IPO Indicator service will provide 

member firms with more information 

about interest in an IPO security. 

Specifically, the IPO Indicator will 

provide information about the number 

and price at which shares of a member 

firm’s orders entered for execution in an 

IPO Halt Cross (‘‘IPO shares’’) would 

execute in an IPO if it were to price at 

the present time. The IPO Indicator uses 

the NOII information of an IPO security 

together with information about the 

subscribing member firm’s orders on 

NASDAQ in the IPO security.10 As 

noted above, NASDAQ has separately 

proposed 11 to offer the IPO Indicator as 

an enhancement to the NASDAQ 

Workstation. Similar to accessing the 

IPO Indicator from the NASDAQ 

Workstation, subscribing member firms 

will access the IPO Indicator from the 

main IPO Workstation screen, which 

will allow the subscriber to select an 

IPO security by ticker and see the 

Current Reference Price,12 the number 

of paired shares, and the number of 

imbalance shares during the Display 

Only and Pre-Launch Periods. The 

screen will also provide the total 

number of IPO shares the member firm 

has entered for execution in the IPO 

Halt Cross, the nature of such shares 

(buy or sell), and the number of IPO 

shares that would be executed in the 

Halt Cross at that time for each of those 

categories. A subscribing member firm 

will also be able to access further detail 

on its IPO shares presented by 

individual order or order block, which 

will include the number of IPO shares 

in a particular order or order block, the 

number and percentage of IPO shares of 

the order or order block that would be 

executed in the Halt Cross if it occurred 

at any given time in the process, based 

on the NOII disseminated every five 

seconds, and the price at which the 

order or order block was submitted. As 

such, the IPO Indicator will provide 

member firms with information 

consistent with what NASDAQ 

currently disseminates during the IPO 

launch process, but as it relates to a 


rljohnson on DSK3VPTVN1PROD with NOTICES
71492 Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 

13As defined by Rules 4120(c)(7)(C)(2) and (3). 

14 IPO Workstation subscribers will not have 

access to various tools, functionality and data 

provided with a full NASDAQ Workstation 

subscription. For a description of NASDAQ 

Workstation functionality, see http://

www.nasdaqtrader.com/

Trader.aspx?id=Workstation. 

15 15 U.S.C. 78f (b). 16 15 U.S.C. 78f(b)(5). 

member firm’s orders and in greater 

detail. 

NASDAQ notes that the IPO Indicator 

will provide member firms with more 

information on their orders for 

participation in an IPO Halt Cross, 

which will, in turn, allow them to make 

better informed investment decisions. 

Although, NASDAQ believes the 

functionality provided by the IPO 

Indicator will be useful to all member 

firms seeking to participate in the IPO 

Halt Cross process, underwriters to an 

IPO may find the functionality 

particularly useful as they will have 

current and ongoing information on the 

nature of their order book in the IPO 

shares relative to the orders that would 

be executed at any given time, thus 

allowing them to make better informed 

decisions on the timing of the IPO’s 

launch. In this regard, the IPO Indicator 

may help an underwriter to make a 

determination to launch an IPO at a 

time most likely to avoid an order 

imbalance,13 thus increasing the 

likelihood of a fair and orderly launch 

of the IPO when the underwriter 

informs NASDAQ that it is prepared to 

launch the IPO security. 

The proposed IPO Workstation will 

provide member firms with another 

means to access IPO Indicator, as an 

alternative to a full NASDAQ 

Workstation subscription. The Exchange 

notes that not all member firms 

subscribe to the NASDAQ Workstation 

and prospective users of the IPO 

Indicator may not desire to pay for a full 

Workstation subscription for the sole 

purpose of accessing the IPO Indicator. 

Accordingly, the Exchange is proposing 

to offer the IPO Indicator functionality 

through a stand-alone ‘‘Workstation 

light’’ subscription, the IPO 

Workstation. The IPO Indicator 

functionality is unchanged from the 

enhancement that is proposed for a 

NASDAQ Workstation subscription. 

Unlike a NASDAQ Workstation 

subscription, however, the IPO 

Workstation subscription will provide 

only the IPO Indicator service and the 

NOII data for IPO securities.14

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with Section 

6(b) of the Act 15 in general, and furthers 

the objectives of Section 6(b)(5) of the 

Act,16 in particular, in that it is designed 

to promote just and equitable principles 

of trade, remove impediments to and 

perfect the mechanisms of a free and 

open market and a national market 

system and, in general, to protect 

investors and the public interest. The 

proposal is consistent with these 

requirements because it will expand the 

information made available to market 

participants about their orders and the 

interplay of supply and demand of buy 

and sell orders leading up to the 

completion of an IPO Halt Cross. The 

information provided by the proposed 

IPO Indicator may be particularly useful 

to underwriters of IPOs, who ultimately 

make the decision to launch an IPO or 

to postpone it. In this regard, the IPO 

Indicator will provide underwriters 

with a near real time assessment of the 

number and price at which their IPO 

shares will execute at any given time, 

consequently allowing them to make 

better informed decisions with regard to 

the timing of an IPO’s launch. The 

proposed change will thereby perfect 

the mechanisms of a free and open 

market by helping ensure the security 

price is reasonably stable at the time the 

underwriter determines to launch the 

IPO. Moreover, the proposed change 

will protect investors and the public 

interest by providing additional 

transparency regarding the IPO Halt 

Cross, helping market participants to 

understand the degree of supply and 

demand for the security that is the 

subject of the IPO Halt Cross and the 

nature of the execution of IPO orders 

that they would receive at any given 

time in the IPO launch process. Offering 

the IPO Indicator through the IPO 

Workstation ensures that all member 

firms that are interested in subscribing 

to the IPO Indicator have a no cost 

means to access it, in lieu of a paying 

for a full NASDAQ Workstation 

subscription. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Specifically, 

the proposed change serves merely to 

increase the information provided by 

NASDAQ regarding the nature of the 

execution they would receive in an IPO 

at any given time in the process, thereby 

assisting market participants in making 

informed investment decisions 

regarding their participation in the IPO 

Halt Cross. The proposed change also 

expands access to this information by 

offering the service through a no cost 

alternative to a full NASDAQ 

Workstation subscription. The proposed 

change does not restrict the ability of 

market participants to participate in the 

IPO Halt Cross in any respect, and 

therefore does not impose any burden 

on competition. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange has neither solicited 

nor received written comments on the 

proposed rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period (i) 

as the Commission may designate up to 

90 days of such date if it finds such 

longer period to be appropriate and 

publishes its reasons for so finding or 

(ii) as to which the Exchange consents, 

the Commission shall: (a) By order 

approve or disapprove such proposed 

rule change, or (b) institute proceedings 

to determine whether the proposed rule 

change should be disapproved. 

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– 

NASDAQ–2014–110 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Brent J. Fields, Secretary, Securities 

and Exchange Commission, 100 F Street 

NE., Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2014–110. 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 


rljohnson on DSK3VPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 231 / Tuesday, December 2, 2014 / Notices 71493 

17 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)(i). 

5See generally FCA Policy Statement No. PS14/ 

9, Review of the Client Assets Regime for 

Investment Business (June 2014). 

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 

filing also will be available for 

inspection and copying at the principal 

offices of the Exchange. 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– 

NASDAQ–2014–110, and should be 

submitted on or before December 23, 

2014. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

Kevin M. O’Neill, 

Deputy Secretary. 

[FR Doc. 2014–28316 Filed 12–1–14; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–73690; File No. SR–ICEEU– 

2014–24] 

Self-Regulatory Organizations; ICE 

Clear Europe Limited; Notice of Filing 

and Immediate Effectiveness of 

Proposed Rule Change to Clearing 

Rules Relating to CASS Requirements 

November 25, 2014. 

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 November 

19, 2014, ICE Clear Europe Limited 

(‘‘ICE Clear Europe’’ or ‘‘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 primarily prepared 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)(i) 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 implement 

certain requirements under the U.K. 

client money rules applicable to certain 

classes of customer accounts of 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. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

ICE Clear Europe submits certain 

proposed amendments to its Rules in 

connection with revised client money 

and client asset (collectively, ‘‘client 

money’’) requirements adopted by the 

U.K. Financial Conduct Authority (the 

‘‘FCA’’) in the U.K. Client Asset 

Sourcebook (‘‘CASS’’). Several of the 

revised FCA requirements will come 

into effect as of December 1, 2014, 

including those to which the rule 

changes discussed herein relate.5

Among numerous other changes, 

revised CASS 7.18.4R and 7.18.6R will 

require ICEU Clearing Members that are 

subject to the CASS requirements to 

identify to the Clearing House those 

accounts that contain client money for 

purposes of CASS through the use of a 

specified form of acknowledgment 

letter. Such identification is intended to 

facilitate the proper segregation of client 

money at the Clearing House level. 

ICE Clear Europe’s existing Rules 

establish several categories of customer 

accounts for Non-FCM/BD Clearing 

Members. Certain account categories are 

intended for use with customer property 

subject to the FCA client money 

requirements; other account categories 

are not intended for use with such 

property. For example, the Segregated 

Customer Omnibus Account for F&O, 

Segregated Customer Omnibus Account 

for CDS and Segregated Customer 

Omnibus Account for FX are to be used 

for customers that provide assets to their 

Clearing Members that are subject to the 

FCA client money regime. In addition, 

Individually Segregated Sponsored 

Accounts and Margin-flow Co-mingled 

Accounts may be used for such 

customers. By contrast, Segregated 

TTFCA Customer Omnibus Accounts 

are not to be used for customers whose 

assets are subject to the FCA client 

money regime. To date, the Clearing 

House has identified such accounts for 

purposes of the client money rules 

pursuant to a Circular. The new FCA 

rules require such identification to be 

provided by the Clearing Member in a 

specified form. 

ICE Clear Europe proposes to adopt 

amendments to its Rules that implement 

the CASS acknowledgment letter 

requirement. Since the CASS rules 

themselves do not identify the accounts 

that should be subject to the 

requirement, the proposed amendments 

also specify the account categories for 

which acknowledgment letters should 

(and should not) be provided by 

Clearing Members. Specifically, ICE 

Clear Europe proposes to make 

amendments to Parts 1, 2 and 5 of the 

Rules. The proposed Rule amendments 

are described in detail as follows. 

The relevant portion of Rule 102(q), 

which specifies that certain provisions 

and documents relating to asset and 

account segregation apply to customer 

accounts, has been revised to refer 

specifically to the customer account 

categories for customers whose assets 

are subject to the FCA client money 

requirements (specifically, the 

Segregated Customer Omnibus 

Accounts for F&O, CDS and FX, as well 

as Individually Segregated Sponsored 

Accounts and Margin-flow Co-mingled 

Accounts). In addition, subparagraph 

(viii) thereof has been revised to refer to 

acknowledgement letters delivered to 

the Clearing House under CASS 7.18 

and countersigned by the Clearing 

House (in lieu of the prior Circular 

issued by the Clearing House relating to 

client money arrangements). The 

revisions also clarify that references to 

Rule 102(q) in the Rules and Procedures 

are deemed to include references to 

those provisions and documents 

referred to in subparagraphs (vii) and 

(viii) thereof. 


rljohnson on DSK3VPTVN1PROD with NOTICES