[Federal Register: June 25, 2007 (Volume 72, Number 121)]
[Notices]
[Page 34674]
[DOCID:fr25jn07-52]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RP07-489-000]

Tuscarora Gas Transmission Company; Notice of Proposed Changes in
FERC Gas Tariff

June 15, 2007.
    Take notice that on June 13, 2007, Tuscarora Gas Transmission
Company (Tuscarora) tendered for filing as part of its FERC Gas Tariff,
Original Volume No. 1, the following tariff sheets to become effective
July 16, 2007:

First Revised Sheet No. 101,
Second Revised Sheet No. 102,
First Revised Sheet No. 108,
First Revised Sheet No. 110,
First Revised Sheet No. 111,
Second Revised Sheet No. 112,
First Revised Sheet No. 116,
Second Revised Sheet No. 117

    Tuscarora states that a copy of this filing has been served on
Tuscarora's jurisdictional customers and interested state regulatory
agencies.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211 and 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed in accordance with the provisions of
Section 154.210 of the Commission's regulations (18 CFR 154.210).
Anyone filing an intervention or protest must serve a copy of that
document on the Applicant. Anyone filing an intervention or protest on
or before the intervention or protest date need not serve motions to
intervene or protests on persons other than the Applicant.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov.
 Persons unable to file electronically should submit an

original and 14 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426.
    This filing is accessible on-line at http://www.ferc.gov, using the

``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive e-mail
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please e-mail
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For

TTY, call<PHONE_NUMBER>.

Kimberly D. Bose,
Secretary.
[FR Doc. E7-12186 Filed 6-22-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 50 (Wednesday, March 14, 2012)]
[Notices]
[Pages 15174-15179]
[FR Doc No: 2012-6105]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-66538; File No. SR-ICEEU-2012-03]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Order Granting Accelerated Approval of Proposed Rule
Change To Revise Rules Related to Certain Operational Changes Relating
to Timing, Effectiveness and Operation of Transfer Orders for Purposes
of Compliance With Non-U.S. Legislation

March 8, 2012.
    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 6, 2012, ICE Clear Europe Limited (``ICE Clear Europe'') 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 primarily by ICE Clear Europe. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons and to approve the proposed rule change
on an accelerated basis.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    ICE Clear Europe is in regular communication with representatives
of its Clearing Members, as that term is defined in the Rules of ICE
Clear Europe \3\ (``Rules'') in relation to the operation of clearing
processes and arrangements. From time-to-time, ICE Clear Europe must
amend its Rules with reference to its home country and home region
regulation. These changes follow recent amendments and changes to home
country and home region regulation. Following consultation with its
applicable home country regulators ICE Clear Europe has published these
proposed rule changes, has carried out a public consultation process in
respect of all of the changes described below, and has presented and
agreed to the changes described below with its Clearing Members. These
changes seek to clarify the timing and operation of various clearing
processes, for existing clearing activities. Specifically, ICE Clear
Europe is making changes to Part 12 of its Rules, which set out how
certain transfer, clearing and settlement orders are treated for
purposes of non-U.S. insolvency legislation, namely the U.K. Financial
Markets and Insolvency (Settlement Finality) Regulations 1999 (the
``U.K. Settlement Finality Rules'') and the EU Settlement Finality
Directive (Directive 98/26/EC) (together with the U.K. Settlement
Finality Rules, the ``Settlement Finality Legislation''). These
proposed changes reflect changes to ICE Clear Europe's clearing and
payment systems that have been proposed following designation by U.K.
authorities as a ``designated system'' for purposes of such
legislation; the proposed changes follow various meetings and
discussions with the relevant U.K. authorities. These changes were
published in ICE Clear Europe circular no. C11/169 on November 25,
2011, available at: https://www.theice.com/publicdocs/clear_europe/circulars/C11169_att1.pdf.
---------------------------------------------------------------------------

    \3\ See ICE Clear Europe Rule 101. The Rules are available on-
line at: https://www.theice.com/Rulebook.shtml?clearEuropeRulebook=.
All capitalized terms not defined herein are defined in the Rules.
---------------------------------------------------------------------------

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.\4\
---------------------------------------------------------------------------

    \4\ The Commission has modified the text of the summaries
prepared by ICE Clear Europe.
---------------------------------------------------------------------------

(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    The principal purpose of the proposed rule change is for applicable
provisions of the Rules to be updated to reflect technical details
relating to the treatment of certain transfer, clearing

and settlement orders for purposes of the Settlement Finality
Legislation.
    The Rule changes affect Part 12 of the ICE Clear Europe Rules. In
general, the rule changes create specific rules regarding: The creation
of various Transfer Orders, which include certain Clearing Orders, and
Settlement Orders (each as defined for purposes of the Rules); the
times at which such orders become irrevocable; the manner by which non-
irrevocable Transfer Orders may be varied; and the manner by which
Transfer Orders may be satisfied. Finally, certain definitions found in
Part 12 of the Rules are amended to account for the Settlement Finality
Legislation, and to correspond to other changes to Part 12. Each of
these changes is described in detail as follows.
    Part 12 of the ICE Clear Europe Rules sets forth Rules that are
designed to comply with the Settlement Finality Legislation. In order
to update those rules to comply with the Settlement Finality
Legislation, Rule 1202 is modified to change the manner by which
immediate and automatic entry of various Payment Transfer Orders
occurs.
    In this regard, various changes are made to Rule 1202.
    Rule 1202(a)(i) gives rise to a Payment Transfer Order at any time
that a Contract is formed by virtue of the operation of ICE Clear
Europe Rule 401. Under the rule changes, such Open Offer Payment
Transfer Orders are renamed ``New Contract Payment Transfer Orders''.
Rule 1202(a)(i) is also modified to exclude energy contracts arising
under Rule 401(a)(vii), and any CDS Contract arising pursuant to Rule
401(a)(x) pursuant to a Bilateral CDS Transaction submitted for Weekly
Clearing.
    Rule 1202(a)(ii) gives rise to a Payment Transfer Order upon the
Clearing House sending an instruction pursuant to Rule 302. Such
Payment Transfer Orders are renamed ``Debit Payment Transfer Orders.''
    Rule 1202(a)(iii) gives rise to a Payment Transfer Order if and
when the Clearing House sends an instruction by means of an electronic,
telephone or other message means to an Approved Financial Institution
to transfer a sum of money from a Clearing House Account to an account
of the Clearing House at the Concentration Bank. Under The rule
changes, such Payment Transfer Orders are renamed ``AFI-CB Payment
Transfer Orders.''
    Rule 1202(a)(iv) creates a Payment Transfer Order where the
Clearing House sends an instruction by means of an electronic,
telephone or other message means to a Concentration Bank to transfer a
sum of money from an account of the Clearing House at the Concentration
Bank to a Clearing House Account. Under the rule changes, such Payment
Transfer Orders are renamed ``CB-AFI Payment Transfer Orders.''
    Rule 1202(a)(v) gives rise to a Payment Transfer Order in the event
that the Clearing House receives a notification pursuant to Rule
1205(b). This form of Payment Transfer Order is called an
``Insufficient Funds Payment Transfer Order.'' Under the rule changes,
Rule 1202(a)(v) is deleted, as are other references to Insufficient
Funds Payment Transfer Orders that exist elsewhere in Part 12.
    Rule 1202(e) sets forth the scope of Payment Transfer Orders. Under
(i) in that Rule, in the case of an Open Offer Payment Transfer Order,
the Payment Transfer Order applies and has effect in the amount due to
or from the Clearing House pursuant to the Contract Terms as a result
of the Contract to which the confirmation referred to in Rule
1202(a)(i) relates arising. For any CDS Contract arising as a result of
Trade Date Clearing, this will be the Initial Payment. In the case of a
Credit/Debit Payment Transfer Order, AFI-CB Payment Transfer Order or
CB-AFI Payment Transfer Order, the Payment Transfer Order applies and
has effect in the amount specified in the relevant instruction referred
to in Rule 1202(a). This Rule is amended to specify the change in name
from ``Open Offer Payment Transfer Order'' to ``New Contract Payment
Transfer Order.'' No substantive change is made to Rule 1202(e).
    Rule 1202(b) sets forth the circumstances under which a Securities
Transfer Order arises. Under Rule 1202(b)(i), a Position Transfer
Order, which is a form of Securities Transfer Order, arises only if
both of the Clearing Members are Participants. Under the rule changes,
Rule 1202(b)(i)(A) is modified such that the Securities Transfer Order
arises if the Clearing House, the relevant Market, and the two Clearing
Members involved have already agreed to a transfer, assignment or
novation of Contracts from one Clearing Member to another pursuant to
Rule 408(a)(i). Rule 1202(b)(i)(a) is modified to include parenthetical
text that both Clearing Members must be Participants for purposes of
this Rule 1202(b)(i). This change is not substantive. Rule
1202(b)(i)(B) permits a Securities Transfer Order to arise if the
Clearing House has declared an Event of Default under Rule 901 and any
Contracts to which a Defaulter is party are proposed to be transferred
from the Defaulter to another Clearing Member pursuant to the Clearing
House's powers under Rule 902, Rule 903 or otherwise. Rule
1202(b)(i)(B) is modified to specify that the Clearing Member to whom
the Defaulter's position is being transferred must be a Participant for
purposes of the creation of a Securities Transfer Order. The scope of
Position Transfer Orders under Rule 1202(f) is unchanged: each Position
Transfer Order applies and has effect in respect of the Contracts to be
transferred, assigned or novated.
    Additional means of creating Securities Transfer Orders are added
at Rules 1202(b)(ii) through (b)(vi). These Securities Transfer Orders
are new to Part 12 of the Rules.
    Under Rule 1202(b)(ii) a ``Collateral Transfer Order'' arises if
and when the Clearing House accepts, through the ICE Systems, that a
Clearing Member has validly requested either the transfer of Non-Cash
Collateral to the order of the Clearing House, or a transfer to that
Clearing Member or to its order of Non-Cash Collateral. Under Rule
1202(g), a Collateral Transfer Order applies and has effect in respect
of the Non-Cash Collateral to be transferred to or to the order of the
Clearing House or Clearing Member.
    Under Rule 1202(b)(iii), a Securities Transfer Order arises when
the Clearing House has received full, complete and correct information
in relation to an ICE OTC Block Transaction or ICE Futures Europe Block
Transaction from the relevant Market. Such Securities Transfer Orders
are designated ``Energy Block Clearing Orders.'' In accordance with
Rule 1202(h) Energy Block Clearing Orders apply and have effect in
respect of the ICE OTC Transaction or ICE Futures Europe Transaction in
question and any resulting Energy Contract.
    A Securities Transfer Order arises under Rule 1202(b)(iv) in
respect of a Bilateral CDS Transaction submitted for Weekly Clearing if
the Clearing House provides a report of such transaction to a Clearing
Member after it has checked whether a Bilateral CDS Transaction
submitted for Clearing is consistent with the records submitted by
another Clearing Member and with the records in Deriv/SERV. Such a
Securities Transfer Order is designated a ``Weekly CDS Clearing
Order.''
    Under Rule 1202(b)(v), a Securities Transfer Order arises in
respect of a Bilateral CDS Transaction that is submitted for Trade Date
Clearing if the Clearing House issues an acceptance notice in
accordance with Rule 401(a)(ix) to a Clearing Member through the ICE
System. Such a Securities Transfer Order is designated a ``Trade Date
CDS Clearing Order.'' Trade Date

CDS Clearing Orders and Weekly CDS Clearing Orders are together
designated as ``CDS Clearing Orders.'' Under Rule 1202(i), each CDS
Clearing Order shall apply and have effect in respect of the Bilateral
CDS Transaction in question and any resulting CDS Contract.
    Under Rule 1202(b)(vi), a ``CDS Physical Settlement Order'' arises
in one of two situations. Under Rule 1202(b)(vi)(A), a CDS Physical
Settlement Order arises if the Clearing House is provided with a copy
of a notice delivered by a Matched CDS Buyer to a Matched CDS Seller in
a Matched Pair of a Notice of Physical Settlement in respect of Matched
CDS Contracts, where the Notice of Physical Settlement specifies an
instrument to be delivered that is an SFD Security. Under Rule
1202(b)(vi)(B), a CDS Physical Settlement Order will arise when the
Clearing House is provided with a copy of a notice delivered by a
Matched CDS Buyer to a Matched CDS Seller in a Matched Pair of a NOPS
Amendment Notice in respect of Matched CDS Contracts, where the NOPS
Amendment Notice specifies an instrument to be delivered that is an SFD
Security but where the Notice of Physical Settlement (including, as
amended by any previous NOPS Amendment Notice) had specified an
instrument that is not an SFD Security as the instrument that was to be
delivered. Since CDS Physical Settlement Orders, as described in Rule
1202(b)(vi), arise in respect of Matched Pairs, then, correspondingly,
under Rule 1202(j), two separate CDS Physical Settlement Orders apply
and have effect separately in respect of each of the CDS Contracts in
the Matched Pair that are subject to a physical settlement obligation,
and the instrument to be delivered pursuant thereto.
    Rule 1202(k) sets forth the scope of each Transfer Order in respect
of the persons against whom such Transfer Order has effect. In this
respect, Existing Rule 1202(g) (now renumbered Rule 1202(k)) is
unchanged in respect of New Contract Payment Transfer Orders, Credit/
Debit Payment Transfer Orders, AFI-CB Payment Transfer Orders or CB-AFI
Payment Transfer Orders. This Rule is, however, amended to specify the
change in name from ``Open Offer Payment Transfer Order'' to ``New
Contract Payment Transfer Order.''
    Rule 1202(k) is also amended to set forth the scope (in respect of
the persons against whom such Transfer Order has effect) of Collateral
Transfer Orders, Energy Block Clearing Transfer Orders, CDS Clearing
Orders, and CDS Physical Settlement Orders. Each of Rules 1202(k)(v)
through (viii) is new text.
    Under Rule 1202(k)(v), a Collateral Transfer Order has effect
against and between each of the following Persons: (A) The Clearing
Member that is the transferor of the Non-Cash Collateral in question;
(B) any Custodian of the Clearing Member or the Clearing House; and (C)
the Clearing House.
    Under Rule 1202(k)(vi), in the case of an Energy Block Clearing
Order, such Energy Block Clearing Order has effect against and between
each of the following Persons: (A) each Clearing Member that has
submitted or confirmed details of the ICE OTC Block Transaction or ICE
Futures Europe Block Transaction; (B) any Affiliate of the Clearing
Member that was party to an ICE OTC Block Transaction or ICE Futures
Europe Block Transaction and which is an Indirect Participant (if any);
and (C) the Clearing House.
    Under Rule 1202(k)(vii), a CDS Clearing Order has effect against
and between the following Persons: (A) Each Clearing Member that has
submitted or confirmed details of the Bilateral CDS Transaction; (B)
any Affiliate of a Clearing Member that is or was party to a Bilateral
CDS Transaction and which is an Indirect Participant (if any); and (C)
the Clearing House.
    Under Rule 1202(k)(viii), a CDS Physical Settlement Order will have
effect against and between the following Persons: (A) Each Clearing
Member in the Matched Pair; and (B) the Clearing House.
    In order to ensure that Intermediary Financial Institutions are
also subject to any Transfer Order, new Rule 1202(l) sets forth that
where a Transfer Order applies to an Approved Financial Institution, it
also applies to and is effective against any Intermediary Financial
Institution used by that Approved Financial Institution.
    Rule 1203 sets forth the time(s) at which a Transfer Order becomes
irrevocable. With respect to Credit/Debit Payment Transfer Orders, AFI-
CB Payment Transfer Orders, and CB-AFI Payment Transfer Orders, no
substantial change is made: Rules 1203(a) through (c) specify that such
Transfer Orders become irrevocable at the time that the specified party
sends a message confirming that the relevant payment will be made.
These Rules are amended solely to add, in each case, that such Transfer
Orders also become irrevocable at the time that the specified party
sends a message confirming that the relevant payment has been made.
    Under Rule 1203(d) as it read prior to amendment, an Open Offer
Payment Transfer Order becomes irrevocable upon an Approved Financial
Institution sending specified form of message confirming that the
relevant payment will be made. This Rule is amended to specify the
change in name from Open Offer Payment Transfer Order to New Contract
Payment Transfer Order, and to specify that such Transfer Order becomes
irrevocable when the specified party sends a specified form of message
confirming that amount to which the New Contract Payment Transfer Order
relates (as specified in Rule 1202(e)(i), described above) will be or
has been made.
    Rule 1203(e) sets forth when a Position Transfer Order becomes
irrevocable. Under that Rule, prior to amendment, a Position Transfer
Order would become irrevocable at the time when the definitive record
of the long or short position of the Clearing Member (that is the
assignee, transferee or person that assumes rights, liabilities and
obligations pursuant to a novation) is updated as a result of a
successful position transfer clearing run in the ICE Systems to reflect
the transfer of Contracts given effect pursuant to the Position
Transfer Order. This Rule is amended to change the designation from
``long or short position'' to the defined term ``Open Contract
Position,'' and it is also amended to ensure that the definitive record
referenced may be updated to show assignment or novation in addition to
transfer of Contracts which are given effect pursuant to the Position
Transfer Order.
    Rules 1203(f) through (j) set forth the irrevocability standards
for Collateral Transfer Orders, Energy Block Transfer Orders, CDS
Clearing Orders, and CDS Physical Settlement Orders. Rules 1203(f)
through (j) are new rule text.
    Under Rule 1203(f), a Collateral Transfer Order becomes irrevocable
at the earlier of two times: either when the Clearing House receives
the Non-Cash Collateral, or when any related securities transfer order
(which relates to the same subject matter as the Collateral Transfer
Order but which a securities transfer order in a designated system for
purposes of the Settlement Finality Legislation which is not the
Designated System) becomes irrevocable.
    Under Rule 1203(g), an Energy Block Clearing Order becomes
irrevocable at the time that the Clearing House becomes party to
resulting Contracts with the Clearing Members in question, pursuant to
Rule 401(a)(iii) or (iv).
    Under Rule 1203(h), a CDS Clearing Order shall become irrevocable
when the time specified pursuant to the Procedures occurs for the
acceptance of the resulting CDS Contracts in question, pursuant to Rule
401(a)(x).

    Under Rule 1203(i), a CDS Physical Settlement Order shall become
irrevocable at the earliest of three times: first, when the Matched CDS
Buyer in the Matched Pair has submitted irrevocable instructions to a
securities system, depository, nominee or custodian for the transfer of
securities to or to the account of the Matched CDS Seller; second, at
the time at which the instrument subject to physical settlement is
delivered or assigned or at which physical settlement obligations are
otherwise discharged; or third, if the Matched CDS Buyer or Matched CDS
Seller has (in the absence of any Matching Reversal Notice or not later
than one Business Day after any Matching Reversal Notice) given notice
to the Clearing House in accordance with Rule 1511 or the Procedures
(as applicable) that the relevant Matched Pair have settled the
relevant Matched CDS Contracts.
    Rule 1204 sets forth the rules regarding cancellation and variation
of Transfer Orders. The following amendments are made to Rule 1204 to
correspond to the amendments noted above.
    Rule 1204(a)(i) provides a residual category of rules for
determination of cancellation. That residual category is where the
Transfer Order in question is affected by manifest or proven error.
While Rule 1204(a)(i) is new text, it generally tracks the
circumstances permitting cancellation of Transfer Orders found in Rule
1206 (as the same is written prior to amendment). Rule 1206 is now
deleted, as cancellation and variation of Transfer Orders is
consolidated into Rule 1204.
    Rule 1204(a)(ii) through (v) set forth cancellation and variation
rules for New Contract Payment Transfer Orders, Credit/Debit Payment
Transfer Orders, Position Transfer Orders, Weekly CDS Clearing Orders,
CDS Clearing Orders, Physical Settlement Orders, or Energy Block
Clearing Orders.
    Under Rule 1204(a)(ii), New Contract Payment Transfer Orders,
Credit/Debit Payment Transfer Orders, or Position Transfer Orders may
be cancelled or varied if they are void ab initio pursuant to Rule 403,
avoided pursuant to Rule 404, or amended as a result of the Clearing
House exercising its discretion pursuant to Rule 104 or otherwise
pursuant to the Rules.
    Without prejudice to the generality of Rule 1204(a)(i), Rule
1204(a)(iii) sets forth that cancellation or variation, in the case of
a Weekly CDS Clearing Order, may occur if an error or omission is noted
by or notified to the Clearing House prior to the Acceptance Time or
the data relating to any Bilateral CDS Transaction to which the Weekly
CDS Clearing Order relates is otherwise capable of being amended in
accordance with the Procedures. Rule 1204(a)(iii) is new text.
    Under Rule 1204(a)(iv), variation or cancellation may occur, in the
case of a CDS Physical Settlement Order, if a NOPS Amendment Notice is
validly delivered by the Matched CDS Buyer in accordance with Rule 1505
and Rule 1509. Rule 1204(a)(iv) is new text.
    Without prejudice to the generality of Rule 1204(a)(i), (ii) or
(iii), under Rule 1204(a)(v), variation or cancellation may occur, in
the case of an Energy Block Clearing Order or CDS Clearing Order, if
such Order relates to a Transaction which is not eligible for Clearing
or which is not accepted for Clearing by the Clearing House. Rule
1204(a)(v) is new text.
    Under Rule 1204(b) prior to amendment, neither the validity nor the
irrevocability of any Transfer Order would of itself be affected by any
event described in Rule 1204(a) occurring. This Rule is amended to
ensure that it is subject to new Rules 1205(d), (f), and (g) relating
to termination of Transfer Orders. Rules 1205(d), (f), and (g) are
described below.
    Rule 1204(c) states that the terms of all Transfer Orders that have
not become irrevocable shall each be subject to a condition (which, if
not satisfied, shall enable the Clearing House to exercise its rights
under Rule 1204) that the circumstances described above in Rule 1204(a)
have not occurred. Rule 1204(c) is new text.
    Rule 1204(d) describes the procedure for Transfer Order Variation.
Under that Rule, if any of the circumstances described in Rule 1204(a)
has occurred, then the amount payable, Contracts to be transferred or
to arise or SFD Securities or Non-Cash Collateral to be delivered
pursuant to the affected Transfer Order may at the discretion of ICE
Clear Europe be increased, decreased or otherwise varied (as necessary)
to reflect payments, transfers, Contracts, assignments, novations, SFD
Securities, Non-Cash Collateral or deliveries that would have been
required under specified circumstances. Specifically, the variation
permitted by ICE Clear Europe is that which would have been required:
(i) In the case of Rule 1204(a)(i) applying, had there been no error;
(ii) in the case of Rule 1204(a)(ii)(A), Rule 1204(a)(ii)(B) or Rule
1204(a)(v) applying as described above, had no Contract or Transaction
ever arisen or occurred; (iii) in the case of Rule 1204(a)(ii)(C)
applying as described above, had the Contract always been subject to
such amended terms as are agreed or determined; (iv) in the case of
Rule 1204(a)(iii) applying as described above, had the details of the
Bilateral CDS Transaction always been corrected or amended as permitted
in accordance with the Procedures; or (v) in the case of Rule
1204(a)(iv) applying as described above, and the NOPS Amendment Notice
specifies an instrument to be delivered that is an SFD Security, as if
the Notice of Physical Settlement had been originally issued as amended
pursuant to the NOPS Amendment Notice. This text replaces the earlier
procedure for variation by ICE Clear Europe, which permitted variation
to amounts that would have been required, in the case of the
application of Rule 1204(a)(i) or (ii), had no Contract or Transaction
ever arisen or occurred, and in the case of application of Rule
1204(a)(iii), had the Contract always been subject to such amended
terms as are agreed or determined.
    Rule 1204(e) is unchanged in that a Transfer Order Variation may be
effected only by the Clearing House delivering a notice of amendment of
an existing Transfer Order to all affected Participants. However, the
rule amendments clarify that valid delivery of a NOPS Amendment Notice
in accordance with Rules 1505 and 1509 by a Matched CDS Buyer in a
Matched Pair is deemed to constitute notice by the Clearing House for
purposes of Rule 1204(e) in respect of a Transfer Order Variation to a
CDS Physical Settlement Order, if the NOPS Amendment Notice specifies
an instrument to be delivered that is an SFD Security.
    Rule 1204(f) replaces former Rule 1206(a) relating to cancellation
of Transfer Orders in lieu of Variation. Under Rule 1204(f), if any of
the circumstances described in Rule 1204(a) has occurred, then the
Transfer Order in question may at the discretion of the Clearing House
alternatively be cancelled. Any such cancellation may under Rule
1204(f) be effected by the Clearing House serving a notice of
cancellation on all affected Participants. Rule 1204(f) also clarifies
that in respect of an Energy Block Clearing Order or CDS Clearing
Order, such notice shall be deemed to have been given if the Clearing
House (or, in the case of an Energy Block Clearing Order, any Market)
rejects a Transaction for Clearing.
    Under Rule 1204(g), which is new text, a CDS Physical Settlement
Order shall be cancelled immediately and automatically if and when a
copy is provided to the Clearing House of a validly delivered NOPS
Amendment

Notice specifying an instrument for delivery which is not an SFD
Security.
    Rule 1204(h) replaces former Rule 1206(b) relating to the ability
of ICE Clear Europe to take steps giving rise to a new Transfer Order
of opposite effect to an existing Transfer Order that is subject to the
events of Rule 1204(a). Rule 1204(h) retains the ability of the
Clearing House to take steps giving rise to a new Transfer Order of
opposite effect to an existing Transfer Order or part thereof if any of
the events described in Rule 1204(a) occur. However, the Rule as
amended states that no Transfer Order Variation shall preclude the
cancellation of a Transfer Order in any circumstances in which a
Transfer Order may alternatively be cancelled by the Clearing House,
and also that the ability of the Clearing House to cancel a Transfer
Order shall not preclude a Transfer Order Variation from taking effect.
    Rule 1205 sets forth the provisions for termination (satisfaction)
of Transfer Orders. Rules 1205(a) and (b), which are formerly
designated Rules 1207(a) and (b), are unchanged, except that the term
``terminate'' is replaced with ``be satisfied'' to denote the
satisfaction (rather than ``termination'') of such Orders. Also, the
provisions of Rule 1205(b) are modified to clarify that each Position
Transfer Order shall be satisfied immediately and automatically at the
same time that it becomes irrevocable under Rule 1203 (whereupon all
Contracts to which the Transfer Order in question relates will have
been transferred, assigned or novated pursuant to the Rules).
    Rules 1205(c) through (g) describe satisfaction of Collateral
Transfer Orders, CDS Clearing Orders, Energy Block Clearing Orders, CDS
Physical Settlement Orders, Credit/Debit Payment Transfer Orders, and
New Contract Payment Transfer Orders.
    Rule 1205(c) sets out the procedures for satisfaction of Collateral
Transfer Orders. This Rule comprises new text. Under the Rule, each
Collateral Transfer Order shall be satisfied immediately and
automatically at the later of two times: either when the Clearing House
receives the Non-Cash Collateral in its account, or when the definitive
record of the Permitted Cover transferred by the Clearing Member that
is the transferor is updated in the ICE Systems to reflect the
successful transfer of Non-Cash Collateral to or to the order of the
Clearing House pursuant to the Collateral Transfer Order.
    Under Rule 1205(d), the procedures for satisfaction of CDS Clearing
Orders or Energy Block Clearing Orders are set forth. Rule 1205(d) is
new. Under this Rule, CDS Clearing Orders or Energy Block Clearing
Orders are satisfied immediately and automatically at the same time
that the relevant resulting Contracts arise under Rule 401(a).
    The satisfaction of CDS Physical Settlement Orders is described in
new Rule 1205(e). Under that Rule, a CDS Physical Settlement Order is
satisfied immediately and automatically at the time when ICE Clear
Europe updates its records of the relevant CDS Contracts in the ICE
Systems to reflect that either physical delivery of the security in
question has been completed or the delivery obligations of the parties
under the relevant CDS Contracts have otherwise been discharged or
settled.
    Rule 1205(f) amends and replaces prior Rule 1207(c). Under Rule
1207(c), if a Credit/Debit Payment Transfer Order or Insufficient Funds
Payment Transfer Order becomes irrevocable in respect of the same
obligation to which an Open Offer Payment Transfer Order relates, the
Open Offer Payment Transfer Order shall automatically be terminated and
shall not become irrevocable. Under Rule 1205(f) as it is amended, the
reference to Insufficient Funds Payment Transfer Order is deleted, the
term Open Offer Payment Transfer Order is renamed New Contract Payment
Transfer Order, and the term ``terminated'' is replaced with
``satisfied.'' Further, the amendment acknowledges that New Contract
Payment Transfer Orders will generally terminate in accordance with
Rule 1205(f) when standard clearing and payment processes apply.
    Under Rule 1205(g), a New Contract Payment Transfer Order relating
to an Energy Contract shall be satisfied immediately and automatically
if and at the point that the relevant Energy Transaction or Contract is
transferred or allocated to another Clearing Member pursuant to Rule
401(a)(viii) or Rule 408(a)(ii). This replaces former Rule 1207(d),
under which an Open Offer Payment Transfer Order is terminated
immediately and automatically if and at the point that the relevant
Transaction is transferred or allocated to another Clearing Member
pursuant to Rule 401(a)(viii) or Rule 408(a)(ii).
    ICE Clear Europe has engaged in a public consultation process in
relation to all the changes, pursuant to the Circulars referred to
above, and as required under U.K. legislation. ICE Clear Europe has
received no opposing views or comments in relation to the proposed rule
amendments.

(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.

(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 been
solicited by ICE Clear Europe pursuant to public consultation processes
in the circulars referred to above. No comments have been received. The
time period for the public consultation has closed so ICE Clear Europe
does not expect to receive any further written comments as a result of
this process. ICE Clear Europe will notify the Commission of any
written comments received by ICE Clear Europe.

III. 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<EMAIL_ADDRESS>Please include File Number
SR-ICEEU-2012-03 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2012-03. 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 Section, 100 F Street NE., Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 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/publicdocs/regulatory_filings/ICE_Clear_Europe_Settlement_Finality_Rule_Filing.pdf.
    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-2012-03
and should be submitted on or before April 4, 2012.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    Section 19(b) of the Act \5\ directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to such
organization. The Commission finds that the proposed rule change is
consistent with the requirements of the Act, in particular the
requirements of Section 17A of the Act,\6\ and the rules and
regulations thereunder applicable to ICE Clear Europe. Specifically,
the Commission finds that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act,\7\ which requires, among other things,
that the rules of a registered clearing agency be designed to promote
the prompt and accurate clearance and settlement of derivative
agreements, contracts, and transactions because it will contribute to
ICE Clear Europe ensuring settlement finality of certain transfer,
clearing, and settlement orders under the Settlement Finality
Legislation.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b).
    \6\ 15 U.S.C. 78q-1. In approving this proposed rule change, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    ICE Clear Europe has requested that the Commission approve the
proposed rule change on an accelerated basis for good cause shown. The
Commission finds good cause for accelerating approval because these
changes are required pursuant to the Settlement Finality Legislation.
Specifically, these changes reflect modifications to ICE Clear Europe's
clearing and payment systems that have been proposed following
designation by U.K. authorities as a ``designated system'' for purposes
of such legislation; the proposed changes follow various meetings and
discussions with the relevant U.K. authorities. If ICE Clear Europe
does not make the changes described in this rule proposal, ICE Clear
Europe may be in contravention of home country and home region
legislation.

V. Conclusion

    It is therefore ordered pursuant to Section 19(b)(2) of the Act
that the proposed rule change (SR-ICEEU-2012-03) be, and hereby is,
approved on an accelerated basis.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\8\
---------------------------------------------------------------------------

    \8\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Kevin O'Neill,
Deputy Secretary.
[FR Doc. 2012-6105 Filed 3-13-12; 8:45 am]
BILLING CODE 8011-01-P