Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 52959 

https://www.sec.gov/comments/sr-nysearca-2017- 

111/nysearca2017111-2653768-161362.pdf. 

5 15 U.S.C. 78s(b)(2). 

6 Id. 

7 17 CFR 200.30–3(a)(31). 

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

2 17 CFR 240.19b–4. 

3CBOE Rule 24.1, ISE Rule 2001(e) and NOM 

Chapter XIV, Section 2(e), for example, all define 

‘‘closing index value’’ as the last index value 

reported on a business day. 

4CBOE Rule 24.1(g), ISE Rule 2001(e) and NOM 

Chapter XIV, Section 2(e), for example, all define 

the term ‘‘current index value’’ with respect to a 

particular index options contract in relevant part as 

the level of the underlying index reported by the 

reporting authority for the index, or any multiple 

or fraction of such reported level specified by the 

exchange. 

has received no comments on the 

proposal. 

Section 19(b)(2) of the Act 5 provides 

that, within 45 days of the publication 

of notice of the filing of a proposed rule 

change, or within such longer period up 

to 90 days as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding, or as to which the 

self-regulatory organization consents, 

the Commission shall either approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether the 

proposed rule change should be 

disapproved. The 45th day after 

publication of the notice for this 

proposed rule change is November 13, 

2017. The Commission is extending this 

45-day time period. 

The Commission finds that it is 

appropriate to designate a longer period 

within which to take action on the 

proposed rule change so that it has 

sufficient time to consider the proposed 

rule change, as modified by Amendment 

No. 1. Accordingly, the Commission, 

pursuant to Section 19(b)(2) of the Act,6

designates December 28, 2017, as the 

date by which the Commission shall 

either approve or disapprove, or 

institute proceedings to determine 

whether to disapprove, the proposed 

rule change (File No. SR–NYSEArca– 

2017–111), as modified by Amendment 

No. 1. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24659 Filed 11–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82035; File No. SR–Phlx– 

2017–89] 

Self-Regulatory Organizations; Nasdaq 

PHLX LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Its Index 

Options Rules To Be More Clear and 

Conformed More Closely to Those of 

the Options Clearing Corporation 

(‘‘OCC’’) and Other Exchanges 

November 8, 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 November 

1, 2017, Nasdaq PHLX LLC (‘‘Phlx’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the 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 

The Exchange proposes to amend its 

index options rules to be more clear and 

conformed more closely to those of the 

Options Clearing Corporation (‘‘OCC’’) 

and other exchanges. 

The text of the proposed rule change 

is available on the Exchange’s Web site 

at http://nasdaqphlx.cchwallstreet.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 

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. The 

Exchange has prepared summaries, set 

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

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange is proposing to amend 

its index options rules in a number of 

respects to be more clear and reflective 

of current market practice, and to be 

conformed more closely to OCC rules 

and those of other exchanges in order to 

minimize the potential for confusion, in 

addition to other index option rule 

changes as discussed below. 

Definition and Use of the Term ‘‘Closing 

Index Value’’ 

The Exchange currently assigns the 

term ‘‘closing index value’’ a meaning 

which differs from that term’s meaning 

on other exchanges, which presents the 

potential for needless confusion. Rule 

1000A(b)(8) currently provides that the 

closing index value in respect of a 

particular index means (a) with respect 

to P.M.-settled options, the current 

index value calculated at the close of 

business on the day of exercise, or, if the 

day of exercise is not a trading day, on 

the last trading day before exercise, or 

(b) with respect to A.M.-settled options, 

the opening price of each component 

issue on the primary market on the day 

of exercise, or, if the day of exercise is 

not a trading day, on the last trading day 

before exercise. This definition is 

proposed to be deleted. The Exchange 

now proposes to define the term 

‘‘closing index value’’ to mean simply 

the last index value reported on a 

business day. The new definition tracks 

the definition of ‘‘closing index value’’ 

on CBOE, ISE and NOM.3

The substantive provisions of the 

index rules that currently refer to 

‘‘closing index value’’ are proposed to 

be amended as well as discussed below, 

in light of this amendment to the 

definition of that term. The use of more 

consistent terminology across 

exchanges, both in the definition itself 

and in substantive provisions using the 

defined term, should minimize potential 

for confusion, especially in the context 

of multiply listed index options. It is in 

the public interest to avoid use of 

different terminology across different 

exchanges to describe the same concept. 

Substitute the Term ‘‘Current Index 

Value’’ for the term ‘‘Closing Index 

Value’’ 

The term ‘‘current index value’’ is 

defined in Rule 1000A(b)(7) in respect 

of a particular index as ‘‘the level of the 

index that is derived from the reported 

prices of the underlying securities that 

are the basis of the index, as reported by 

the reporting authority for the index.’’ 

Other options exchanges define ‘‘current 

index value’’ in a similar fashion.4

However, the Exchange currently uses 

the term ‘‘closing index value’’ in 

provisions where other exchanges use 

the term ‘‘current index value.’’ In order 

to use more consistent terminology 

across exchanges, the Exchange 

proposes to replace the term ‘‘closing 

index value’’ with the term ‘‘current 


sradovich on DSK3GMQ082PROD with NOTICES
52960 Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 

5Upon implementation of the proposed 

amendments, the Exchange will be using 

terminology that is consistent with definitions of 

‘‘put’’, ‘‘call’’ and ‘‘index multiplier’’ on CBOE, ISE 

and NOM. See CBOE Rules 24.1(a), 24.1(b), and 

24.1(f); ISE Rules 2001(c), 2001(i) and 2001(l); and 

NOM Chapter XIV, Sections 2(d), 2(i) and 2(m). The 

amendments will also give the terms ‘‘put’’, ‘‘call’’ 

and ‘‘index multiplier’’ definitions that are 

consistent with the existing Phlx definition of 

‘‘exercise price’’ which is the specific price per unit 

at which the current index value may be purchased 

in the case of a call or sold in the case of a put upon 

the exercise of an option. Unlike the current Phlx 

definitions of ‘‘put’’, ‘‘call’’ and ‘‘index multiplier’’, 

the current Phlx definition of ‘‘exercise price’’ is 

consistent with the definition of ‘‘exercise price’’ on 

other exchanges. See, e.g., CBOE Rule 24.1(d), ISE 

Rule 2001(f) and NOM Chapter XIV, Section 2(f), all 

of which define ‘‘exercise price’’ using the defined 

term ‘‘current index value’’. 

6See the consistent definitions of ‘‘A.M.-settled 

index option’’ in CBOE Rule 24.1(r), ISE Rule 

2001(c), and NOM Chapter XIV, Section 2(c). Like 

proposed Phlx Rule 1000A(b)(18), each of these 

definitions incorporates by reference a separate rule 

governing the determination of the current 

settlement value at expiration. 

7See, e.g., CBOE Rule 24.9.05 and ISE Rule 

2009(e). 

8See ISE Rule 2009(a)(5) and NOM Chapter XIV, 

Section 11(a)(5), which are similar. 

9NOM and ISE rules contain similar exceptions. 

See NOM Chapter XIV Section 11(a)(5) and ISE 

Rule 2009(a)(5). 

10The change is being made in conformance with 

Article XVII, Section 5 of the OCC By-Laws. Article 

XVII, Section 5 of the OCC By-Laws provides that 

an Exchange may provide by rule that the current 

index value shall be determined by reference to the 

reported level of such index at a time or times other 

than the close of trading. Other options exchanges 

identify individual AM-settled options in their 

rules. See, e.g., CBOE Rule 24.9(a)(4). 

index value’’ in Rules 1000A(b)(1), (2) 

and (6). Thus the term ‘‘put’’ will be 

defined in Rule 1000A(b)(1) as an 

option contract under which the holder 

of the option has the right, in 

accordance with the terms and 

provisions of the option, to sell to the 

Options Clearing Corporation the 

current index value times the index 

multiplier. Rule 1000A(b)(2) would be 

revised to define the term ‘‘call’’ as an 

option contract under which the holder 

of the option has the right, in 

accordance with the terms of the option, 

to purchase from OCC the current index 

value times the index multiplier. 

Similarly, the term ‘‘index multiplier’’ 

would be defined to mean the amount 

specified in the contract by which the 

current index value is to be multiplied 

to arrive at the value required to be 

delivered to the holder of a call or by 

the holder of a put upon valid exercise 

of the contract. In all three of the revised 

definitions, the only change proposed is 

the substitution of the term ‘‘current 

index value’’ for the existing term 

‘‘closing index value’’ which itself is 

proposed to be revised as discussed 

below to be consistent with the 

definition of that term on other 

exchanges.5

Current Rule 1000A(b)(8) defining 

‘‘closing index value’’ already points to 

the current index value. Specifically, it 

defines ‘‘closing index value’’ to mean, 

with respect to P.M.-settled options, the 

current index value calculated at the 

close of business on the day of exercise, 

or, if the day of exercise is not a trading 

day, on the last trading day before 

exercise. In view of the amendment to 

Rule 1101A(d) discussed below 

providing generally that the current 

index value used to settle the exercise 

of an index options contract is the 

closing index value (proposed to be 

defined as the last index value reported 

on a business day) for the day, the net 

effect of these amendments with respect 

to P.M.-settled options is for the most 

part a change in terminology only, to be 

consistent with terminology used by 

other options exchanges. Currently, 

with respect to P.M.- settled options the 

relevant value for Rules 1000A(b)(1), (2) 

and (6) is the ‘‘index value calculated at 

the close of business on the day of 

exercise’’. As amended, the relevant 

value would be ‘‘the last index value 

reported on a business day’’. Both 

formulations express the same concept. 

These definitional changes are not 

intended to change current practice 

with respect to P.M.-settled options. 

New Definition of ‘‘A.M. Settled Index 

Option’’ 

The Exchange proposes to add a new 

definition of A.M. settled index option. 

Consistent with the CBOE, ISE and 

NOM definitions of this term, new Rule 

1000A(18) would define ‘‘A.M. settled 

index option’’ as an index option for 

which the current index value at 

expiration shall be determined as 

provided in Rule 1101A(e).6

The Exchange proposes to adopt new 

Rule 1101A(d), Index Values for 

Settlement, which recites that OCC rules 

specify that, unless the rules of the 

Exchange provide otherwise, the current 

index value used to settle the exercise 

of an index options contract is the 

closing index value for the day on 

which the index options contract is 

exercised in accordance with OCC rules, 

or if such day is not a business day, for 

the most recent business day. Other 

options exchanges have similar rules. 7

As an exception to the baseline rule 

set forth in Rule 1101A(d) regarding 

settlement based on closing index 

values, the Exchange proposes to add 

new Rule 1101A(e) to provide that the 

last day of trading for A.M.-settled index 

options shall be the business day 

preceding the business day of 

expiration, or, in the case of an option 

contract expiring on a day that is not a 

business day, the business day 

preceding the last day of trading in the 

underlying securities prior to the 

expiration date. Under the new rule the 

current index value at the expiration of 

an A.M.-settled index option will be 

determined on the last day of trading in 

the underlying securities prior to 

expiration, by reference to the reported 

level of such index as derived from first 

reported sale (opening) prices of the 

underlying securities on the primary 

market on such day.8 The current 

language of Rule 1000A(b)(8)(b) suggests 

that exercise settlement values for A.M. 

settled options are always based upon 

opening prices. In fact, however, closing 

prices are used in the case of an early 

exercise. This new language makes clear 

that for A.M.-settled index options 

opening prices of the underlying 

securities determine the current index 

value used to settle an exercise only on 

the last day of trading prior to 

expiration, consistent with market 

practice and OCC processes regarding 

A.M. settlement. Exercise of an 

American style A.M.-settled option 

prior to the day of expiration will result 

in settlement based upon closing prices 

in the underlying market, consistent 

with proposed new Rule 1101A(d) and 

OCC rules. The new language in 

1101A(d) and (e) corrects existing 

Exchange Rule 1000A(b)(8) which does 

not make this distinction and is at 

variance with existing market practice 

and OCC settlement processes. 

Proposed Rule 1101A(e) incorporates 

one exception. In the event that the 

primary market for an underlying 

security is open for trading on that day, 

but that particular security does not 

open for trading on that day, the price 

of that security, for the purposes of 

calculating the current index value at 

expiration, will be the last reported sale 

price of the security.9

Finally, new language is added to 

Rule 1101A(e) which specifically 

identifies the six A.M.-settled index 

options that are currently approved for 

trading on the Exchange.10 The listing of 

these A.M.-settled index options is 

consistent with proposed new Rule 

1101A(d), which recites that the Rules 

of the Options Clearing Corporation 

specify that, unless the Rules of the 

Exchange provide otherwise (which 

Rule 1101A(e) is doing by identifying 

AM-settled index options), the current 

index value used to settle the exercise 

of an index options contract shall be the 

closing index value for the day on 

which the index options contract is 

exercised in accordance with the Rules 

of the Options Clearing Corporation or, 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 52961 

11See also Article XVII of the OCC Bylaws. 

12 15 U.S.C. 78f(b). 

13 15 U.S.C. 78f(b)(5). 

14 15 U.S.C. 78s(b)(3)(A)(iii). 

15 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6) requires a self-regulatory organization to give 

the Commission written notice of its intent to file 

the proposed rule change at least five business days 

prior to the date of filing of the proposed rule 

change, or such shorter time as designated by the 

Commission. The Exchange has satisfied this 

requirement. 

if such day is not a business day, for the 

most recent business day. It is also 

consistent with the existing 

Commentary to Rule 1000A(b)(8) which 

provides that for any series of index 

options the Exchange may, in its 

discretion, provide that the calculation 

of the final index settlement value of 

any index on which options are traded 

at the Exchange will be determined by 

reference to the prices of the constituent 

stocks at a time other than the close of 

trading on the last trading day before 

expiration. 

Deletion of Rule 1044A, Delivery and 

Payment 

Rule 1044A, Delivery and Payment, 

currently provides that in accordance 

with the applicable Rules of the Options 

Clearing Corporation, the settlement of 

index option contracts will be by the 

delivery of the difference between the 

closing index value on the day of 

exercise and the exercise price times the 

index multiplier. The Exchange 

proposes to delete this provision, given 

the proposed amendment to the defined 

term ‘‘closing index value’’ as discussed 

above. The Exchange has not found a 

similar rule on other options exchanges 

and believes it to be unnecessary given 

the definitions of put, call and index 

multiplier, which imply that settlement 

will be by the delivery of the difference 

between the closing index value on the 

day of exercise and the exercise price, 

times the index multiplier. OCC Bylaws 

provide for the calculation of the 

exercise settlement amount by reference 

the [sic] difference between the 

aggregate exercise price and the 

aggregate current index value on the day 

of the exercise.11

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,12 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,13

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest, by 

adding clarity to the rules, correcting 

the description of the manner of 

calculation of the exercise settlement 

amount in the case of early exercise of 

A.M.-settled options to conform with 

OCC rules and processes, and 

conforming index option terminology 

more closely to that used by OCC and 

other exchanges that list index options. 

In addition to correcting the inaccuracy 

regarding early exercise of A.M.-settled 

index options, the proposed rule change 

would result in Exchange index option 

rules that are substantially similar to 

rules that are currently in place on other 

options exchanges as discussed in detail 

above, thereby reducing potential 

investor confusion. The Exchange 

believes that the proposed changes will 

provide greater clarity to members and 

the public regarding the Exchange’s 

index option rules. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe the 

proposed rule change will impose any 

burden on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act, as the added clarity 

and the increased conformity to index 

rules of other options exchanges and 

acknowledgement of OCC rules will 

benefit all market participants trading 

Exchange listed index options. The 

proposed rule change does not affect 

competition in that it conforms the Phlx 

index rulebook to OCC rules and to 

existing market practice, and will apply 

equally to all market participants 

transacting in index options on the 

Exchange. 

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)(iii) of the Act 14 and 

subparagraph (f)(6) of Rule 19b–4 

thereunder.15

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– 

Phlx–2017–89 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–Phlx–2017–89. 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 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. 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 


sradovich on DSK3GMQ082PROD with NOTICES
52962 Federal Register / Vol. 82, No. 219 / Wednesday, November 15, 2017 / Notices 

16 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)(ii). 

5 15 U.S.C. 78q–1. 

6 17 CFR 240.17Ad–22. 

7 15 U.S.C. 78q–1(b)(3)(F). 8 17 CFR 240.17Ad–22(e)(10). 

submissions should refer to File 

Number SR–Phlx–2017–89, and should 

be submitted on or before December 6, 

2017. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Eduardo A. Aleman, 

Assistant Secretary. 

[FR Doc. 2017–24656 Filed 11–14–17; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–82041; File No. SR–ICEEU– 

2017–012] 

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 

Delivery Procedures 

November 8, 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 October 

31, 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 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) 4 thereunder, so that 

the proposal was immediately effective 

upon filing with the Commission. The 

Commission is publishing this notice to 

solicit 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 rule change is to implement 

certain amendments and updates to the 

ICE Clear Europe Delivery Procedures 

relating to European emissions and UK 

electricity contracts. 

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. 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 

ICE Clear Europe proposes to 

implement certain amendments and 

updates to the ICE Clear Europe 

Delivery Procedures relating to 

European emissions and UK electricity 

contracts. The proposed amendments 

are designed (i) to update the Delivery 

Procedures relating to deliveries under 

European emissions and UK power 

contracts to be consistent with current 

practice and reflect the use of updated 

delivery forms and processes and (ii) to 

remove certain references to contracts 

no longer traded. 

In Part A of the Delivery Procedures 

(relating to European emissions 

contracts), ICE Clear Europe is 

modifying the timing for submission of 

delivery confirmation forms to be 

consistent with the timing of the 

expiration of the relevant contracts. 

In Part C of the Delivery Procedures 

(relating to UK electricity contracts), ICE 

Clear Europe is removing certain 

references (and related provisions) for 

contracts that are no longer traded. The 

amendments also remove references to a 

pre-delivery authorization process and 

certain reports that are no longer used, 

as well as extend the deadline for 

certain authorization requests, in light 

of updates to ICE Clear Europe systems. 

In addition, the amendments modify the 

timing for submission of certain 

delivery confirmation forms to be 

consistent with the timing of the 

expiration of the relevant contracts. 

(b) Statutory Basis 

ICE Clear Europe believes that the 

proposed amendments 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

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

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. Rule 17Ad–22(e)(10) 8

requires that each covered clearing 

agency shall establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

establish and maintain transparent 

written standards that state its 

obligations with respect to the delivery 

of physical instruments, and establish 

and maintain operational practices that 

identify, monitor, and manage the risks 

associated with such physical 

deliveries. The proposed amendments 

are being made to update and clarify the 

ICE Clear Europe delivery procedures to 

make operational and documentation 

improvements in the delivery 

confirmation and notification processes. 

As a result, in ICE Clear Europe’s view, 

the amendments will facilitate the 

prompt and accurate clearance and 

settlement of cleared transactions, more 

clearly state the obligations of parties 

with respect to deliveries and the 

management of the risks of such 

deliveries, within the meaning of the 

Act and Rule 17Ad–22(e). 

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICE Clear Europe does not believe the 

proposed changes to the rules would 

have any impact, or impose any burden, 

on competition not necessary or 

appropriate in furtherance of the 

purpose of the Act. ICE Clear Europe is 

adopting the amendments the Delivery 

Procedures and Clearing Procedures in 

order to clarify certain aspects of the 

exercise and settlement of equity futures 

and options currently cleared by ICE 

Clear Europe. ICE Clear Europe does not 

believe the adoption of related Delivery 

Procedures and Clearing Procedures 

amendments would materially affect the 

cost of clearing these products, 

adversely affect access to clearing in 

these products for Clearing Members or 

their customers, or otherwise adversely 

affect competition in clearing services. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed changes to the rules have not 

been solicited or received. ICE Clear 

Europe will notify the Commission of 

any written comments received by ICE 

Clear Europe. 


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