Document ID: SEC-2015-0543-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe Ltd.
Posted Date: 2015-03-31T04:00Z

[Federal Register Volume 80, Number 61 (Tuesday, March 31, 2015)]
[Notices]
[Pages 17124-17125]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07248]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74583; File No. SR-ICEEU-2015-008]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Clearance of New Natural Gas Futures Contracts

March 25, 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 March 18, 2015, ICE Clear Europe Limited (``ICE Clear Europe'') 
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. The Commission 
is publishing this notice to solicit comments on the proposed rule 
change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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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 the 
ICE Clear Europe Delivery Procedures with respect to the settlement of 
certain European natural gas futures contracts that are currently 
traded or will be traded on the ICE Endex 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. 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. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the rule amendments is to modify the ICE Clear 
Europe Delivery Procedures in connection with the launch by the ICE 
Endex market of certain new natural gas futures contracts that will be 
cleared by ICE Clear Europe, namely the ICE Endex TTF Natural Gas Daily 
Futures Contracts, ICE Endex Gaspool Natural Gas Daily Futures 
Contracts, ICE Endex NCG Natural Gas Daily Futures Contracts and ICE 
Endex ZTP Natural Gas Daily Futures Contracts (the ``New Futures 
Contracts''). These contracts are daily versions of existing monthly 
natural gas futures contracts traded on ICE Endex and cleared by ICE 
Clear Europe. ICE Clear Europe also proposes to make clarifying and 
conforming amendments for certain existing natural gas contracts that 
are covered by the Delivery Procedures. ICE Clear Europe does not 
otherwise propose to amend its clearing rules or procedures in 
connection with the New Futures Contracts.
    The amendments adopt new subparts of Parts E, F, G and H of the 
Delivery Procedures, applicable to the ICE Endex TTF Natural Gas Daily 
Futures Contracts, ICE Endex Gaspool Natural Gas Daily Futures 
Contracts, ICE Endex NCG Natural Gas Daily Futures Contracts and ICE 
Endex ZTP Natural Gas Daily Futures Contracts, respectively. The 
amendments add references, as appropriate, to the New Futures Contracts 
in the applicable Parts of the Delivery Procedures. The amendments 
provide, among other matters, specifications for delivery of natural 
gas under a New Futures Contract, including relevant definitions and a 
detailed delivery timetable for the contracts. The amendments also 
address invoicing and payment for delivery. The amendments provide for 
calculation by ICE Clear Europe of buyer's and seller's security to 
cover delivery obligations and related liabilities, costs or charges, 
as well as procedures to address failed deliveries. The revised 
procedures also set out various documentation requirements for the 
relevant parties. In addition, changes are made to paragraph 5.1 of the 
Delivery Procedures to include the New Futures Contracts in the list of 
contracts for which parties may nominate transferors and transferees to 
make and take delivery.
    Other changes are made throughout the Delivery Procedures to 
conform the names of certain contracts to those used in the relevant 
exchange rules, including for the ICE Endex Gaspool Natural Gas Futures 
Contract, ICE Endex NCG Natural Gas Futures Contract and ICE Endex ZTP 
Natural Gas Futures Contract. (Related changes and clarifications to 
defined terms have also been made.) Throughout relevant Parts of the 
Delivery Procedures, references to the ``HIT report'' have been 
replaced with the ``MPFE report'' (which is the current form of futures 
expiry report indicating positions that have gone to expiry). Certain 
drafting clarifications to the term ``Invoice Period'' have been made 
in the Delivery Procedures.
    Changes have also made to the settlement timetable for existing ICE 
Futures UK Natural Gas Daily Futures in paragraph 5.2 of Part D and the 
delivery documentation requirements table in paragraph 8.1 of Part D 
(including as to the timetable and documentation for nominations of 
transferors and transferees). Parallel and conforming changes have been 
made in Parts E through H for other existing natural gas contracts. The 
existing Schedule of Forms and Reports appended to the Delivery 
Procedures has been removed as obsolete and unnecessary.
2. Statutory Basis
    ICE Clear Europe believes that the changes described herein are 
consistent with the requirements of Section 17A of the Act \3\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22,\4\ 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.\5\ The New Futures Contracts have similar

[[Page 17125]]

characteristics to other ICE Endex natural gas contracts currently 
cleared by ICE Clear Europe, and ICE Clear Europe believes that its 
existing financial resources, risk management, systems and operational 
arrangements are sufficient to support clearing of such products (and 
address physical delivery under such contracts). The other changes set 
forth in the proposed amendments are generally intended to conform and 
clarify various provisions of the Delivery Procedures for natural gas 
contracts, and are also consistent with the prompt and accurate 
clearance and settlement of derivative agreements, contracts and 
transactions.
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    \3\ 15 U.S.C. 78q-1.
    \4\ 17 CFR 240.17Ad-22.
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
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    Specifically, ICE Clear Europe believes that it will be able to 
manage the risks associated with acceptance of the New Futures 
Contracts for clearing and physical delivery in such contracts. The New 
Futures Contracts present a similar risk profile to other ICE Endex 
contracts currently 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 New Futures Contracts 
and related deliveries.
    Similarly, ICE Clear Europe has established appropriate standards 
for determining the eligibility of contracts submitted to it for 
clearing, and ICE Clear Europe believes that its existing systems are 
appropriately scalable to handle the New Futures Contracts, which are 
generally similar from an operational perspective to the other ICE 
Endex power 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 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 would 
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 principally in connection with 
the listing of new contracts for trading on the ICE Endex market. ICE 
Clear Europe believes that such contracts will provide additional 
opportunities for interested market participants to engage in trading 
activity relating to the relevant underlying gas markets. 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) \6\ of the Act and Rule 19b-4(f)(4)(ii) \7\ 
thereunder because it effects a change in an existing service of a 
registered clearing agency that primarily affects the clearing 
operations of the clearing agency with respect to products that are not 
securities, including futures that are not security futures, swaps that 
are not security-based swaps or mixed swaps, and forwards that are not 
security forwards, and does not significantly affect any securities 
clearing operations of the clearing agency or any rights or obligations 
of the clearing agency with respect to securities clearing or persons 
using such securities-clearing service. 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.
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    \6\ 15 U.S.C. 78s(b)(3)(A).
    \7\ 17 CFR 240.19b-4(f)(4)(ii).
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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-2015-008 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-2015-008. 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/notices/Notices.shtml?regulatoryFilings.
    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-2015-008 
and should be submitted on or before April 21, 2015.
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    \8\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\8\
Brent J. Fields,
Secretary.
[FR Doc. 2015-07248 Filed 3-30-15; 8:45 am]
BILLING CODE 8011-01-P