Document ID: SEC-2016-1043-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe Ltd.
Posted Date: 2016-06-17T04:00Z

[Federal Register Volume 81, Number 117 (Friday, June 17, 2016)]
[Notices]
[Pages 39729-39730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14307]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-78045; File No. SR-ICEEU-2016-008]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating To Clearance of Containerised White Sugar Futures Contracts

June 13, 2016.
    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 June 1, 2016, 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 primarily by ICE Clear Europe. ICE Clear 
Europe filed the proposal pursuant to Section 19(b)(3)(A) of the 
Act,\3\ and Rule 19b-4(f)(4)(ii) \4\ thereunder, so that the proposal 
was effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \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).
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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 change is to modify the ICE Clear 
Europe Delivery Procedures in connection with the launch by the ICE 
Futures Europe market of new containerised white sugar futures 
contracts that will be 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 
Futures Europe market of new containerised white sugar futures 
contracts that will be cleared by ICE Clear Europe (the ``Containerised 
White Sugar Contracts''). ICE Clear Europe does not otherwise propose 
to amend its clearing rules or procedures in connection with the 
Containerised White Sugar Contracts.
    The amendments adopt a new Part BB to the Delivery Procedures, 
applicable to the Containerised White Sugar Contracts. The amendments 
provide, among other matters, specifications for delivery of white 
sugar under a Containerised White Sugar Contract, including relevant 
definitions and a detailed delivery timetable for the contracts. The 
amendments also address invoicing and payment for delivery. The revised 
procedures also set out various documentation requirements for the 
relevant parties, and provide procedures for rejection of delivery 
documentation under applicable contract terms.
2. Statutory Basis
    ICE Clear Europe believes that the changes described herein are 
consistent with the requirements of Section 17A of the Act \5\ and the 
regulations thereunder

[[Page 39730]]

applicable to it, including the standards under Rule 17Ad-22.\6\ 
Specifically, the amendments are consistent with the prompt and 
accurate clearance of and settlement of securities transactions and, to 
the extent applicable, derivative agreements, contracts and 
transactions, the safeguarding of securities and funds in the custody 
or control of ICE Clear Europe or for which it is responsible and the 
protection of investors and the public interest, within the meaning of 
Section 17A(b)(3)(F) of the Act.\7\ The Containerised White Sugar 
Contracts have similar characteristics to other softs futures 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 to address physical delivery under such contracts).
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    \5\ 15 U.S.C. 78q-1.
    \6\ 17 CFR 240.17Ad-22.
    \7\ 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 Containerised White 
Sugar Contracts for clearing and physical delivery in such contracts. 
The Containerised White Sugar Contracts present a similar risk profile 
to other ICE Futures Europe softs 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 Containerised White Sugar Contracts and related 
deliveries. Similarly, ICE Clear Europe believes that its existing 
systems are appropriately scalable to handle the Containerised White 
Sugar Contracts, which are generally similar from an operational 
perspective to other ICE Futures Europe softs contracts currently 
cleared by ICE Clear Europe.
    For the reasons noted above, ICE Clear Europe believes that the 
proposed rule changes are 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 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 to the Delivery Procedures in 
connection with the listing of a new contract, the Containerised White 
Sugar Contracts, for trading on the ICE Futures Europe market. ICE 
Clear Europe believes that such contracts will provide additional 
opportunities for interested market participants to engage in trading 
activity in the sugar market. ICE Clear Europe does not believe the 
adoption of the 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 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.

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) \8\ of the Act and Rule 19b-4(f)(4)(ii) \9\ 
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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    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 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-2016-008 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-2016-008. 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/clear-europe/regulation#rule-filings.
    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-2016-008 
and should be submitted on or before July 8, 2016.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
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    \10\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-14307 Filed 6-16-16; 8:45 am]
 BILLING CODE 8011-01-P