[Federal Register Volume 76, Number 85 (Tuesday, May 3, 2011)]
[Proposed Rules]
[Pages 24837-24840]
[FR Doc No: 2011-10665]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2011-0044]
RIN 1625-AA11

Regulated Navigation Area; Columbus Day Weekend, Biscayne Bay,
Miami, FL

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes to establish a permanent regulated
navigation area (RNA) on Biscayne Bay in Miami, Florida. The RNA would
be enforced annually on the Saturday and Sunday of the second week in
October (Columbus Day weekend). It would include all waters within one
nautical mile of the center of the Intracoastal Waterway between
Featherbed Bank and the Rickenbacker Causeway Bridge. All vessels
within the RNA would be: Required to transit the regulated navigation
area at no more than 15 knots; subject to control by the Coast Guard;
and required to follow the instructions of all law enforcement vessels
in the area. This RNA is necessary to ensure the safe transit of
vessels and to protect the marine environment.

DATES: Comments and related material must be received by the Coast
Guard on or before July 14, 2011. Requests for public meetings must be
received by the Coast Guard on or before June 14, 2011.

ADDRESSES: You may submit comments identified by docket number USCG-
2011-0044 using any one of the following methods:

    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590-0001.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is<PHONE_NUMBER>.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or e-mail Lieutenant Paul A. Steiner, Sector Miami
Prevention Department, Coast Guard; telephone<PHONE_NUMBER>, e-mail
<EMAIL_ADDRESS>If you have questions on viewing or submitting
material to the docket, call Renee V. Wright, Program Manager, Docket
Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided.

Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2011-0044), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online (via http://www.regulations.gov) or by fax, mail, or hand
delivery, but please use only one of these means. If you submit a
comment online via http://www.regulations.gov, it will be considered
received by the Coast Guard when you successfully transmit the comment.
If you fax, hand deliver, or mail your comment, it will be considered
as having been received by the Coast Guard when it is received at the
Docket Management Facility. We recommend that you include your name and
a mailing address, an e-mail address, or a telephone number in the body
of your document so that we can contact you if we have questions
regarding your submission.
    To submit your comment online, go to http://www.regulations.gov,
click on the ``submit a comment'' box, which will then become
highlighted in blue. In the ``Document Type'' drop down menu select
``Proposed Rule'' and insert ``USCG-2011-0044'' in the ``Keyword'' box.
Click ``Search'' then click on the balloon shape in the ``Actions''
column. If you submit your comments by mail or hand delivery, submit
them in an unbound format, no larger than 8\1/2\ by 11 inches, suitable
for copying and electronic filing. If you submit comments by mail and
would like to know that they reached the Facility, please enclose a
stamped, self-addressed postcard or envelope. We will consider all
comments and material received during the comment period and may change
the rule based on your comments.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
click on the ``read comments'' box, which will then become highlighted
in blue. In the ``Keyword'' box insert ``USCG-2011-0044'' and click
``Search.'' Click the ``Open Docket Folder'' in the ``Actions'' column.
You may also visit the Docket Management Facility in Room W12-140 on
the ground floor of the Department of Transportation West Building,
1200 New Jersey, Avenue, SE., Washington, DC 20590, between 9 a.m. and
5 p.m., Monday through Friday, except Federal holidays. We have an
agreement with the Department of Transportation to use the Docket
Management Facility.

Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for a public meeting on or before June 14, 2011 using one of
the four methods specified under ADDRESSES. Please explain why you
believe a public meeting would be beneficial. If we determine that one
would aid this rulemaking, we will hold one at a time and place
announced by a later notice in the Federal Register.

Basis and Purpose

    The legal basis for the proposed rule is the Coast Guard's
authority to establish regulated navigation areas (RNAs) and limited
access areas: 33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701, 3306, 3703;
50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L.
107-295, 116 Stat. 2064; Department of Homeland Security Delegation No.
0170.1.
    The purpose of the proposed rule is to ensure the safe transit of
vessels in the area and to protect all persons, vessels, and the marine
environment.

Discussion of Proposed Rule

    The proposed rule would designate an RNA encompassing all waters
within one nautical mile of the center of the Intracoastal Waterway
from Featherbed Bank extending 14 nautical miles north to the
Rickenbacker Causeway Bridge. The RNA would be enforced daily from
12:01 p.m. until 11:59 p.m. on the Saturday and Sunday of the second
week in October (Columbus Day weekend) each year. All vessels within
the regulated navigation area would be: (1) Required to transit the
area at no more than 15 knots; (2) subject to control by the Coast
Guard; and (3) required to follow the instructions of all law
enforcement vessels in the area.
    The RNA is necessary to ensure the safety of the public. The close
proximity of numerous vessels transiting that portion of the
Intracoastal Waterway encompassed within the proposed RNA during
Columbus Day weekend poses a hazardous condition. The RNA would result
in the transiting of vessels at a safer speed, thereby significantly
reducing the threat of vessel collisions. Requiring vessels within the
RNA to transit at no more than 15 knots would also enable law
enforcement officials to identify, respond to, query, and stop
operators who may pose a hazard to other vessels in the area. Nothing
in this regulation would alleviate vessels or operators from complying
with all other Federal, state, and local laws in the area, including
manatee slow speed zones.

Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on 13 of these statutes or executive orders.

Executive Order 12866 and Executive Order 13563

    This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, as
supplemented by Executive Order 13563, and does not require an
assessment of potential costs and benefits under section 6(a)(3) of
that Order. The Office of Management and Budget has not reviewed it
under that Order.
    The economic impact of this rule is not significant for the
following reasons: (1) The proposed RNA would be in effect for only two
days each year; (2) although during the enforcement period vessels
would be required to transit the area at no more than 15 knots, be
subject to control by the Coast Guard, and be required to follow the
instructions of all law enforcement vessels in the area, the RNA does
not prohibit vessels from transiting the area; (3) vessels could still
operate in surrounding waters that are not encompassed within the RNA
without the restrictions imposed by the RNA; and (4) advance
notification of the RNA's enforcement would be made to the local
maritime community via Local Notice to Mariners and Broadcast Notice to
Mariners.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. This rule may affect the following entities,
some of which may be small entities: the owners or operators of vessels
intending to transit the RNA on the Saturday and Sunday of the second
week in October (Columbus Day weekend). For the reasons discussed in
the Regulatory Planning and Review section above, this proposed rule
would not have a significant economic impact on a substantial number of
small entities.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
rule would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please contact Lieutenant Paul A. Steiner,
Sector Miami Prevention Department, Coast Guard; telephone 305-535-
8724, e-mail<EMAIL_ADDRESS>The Coast Guard will not
retaliate against small entities that question or complain about this
proposed rule or any policy or action of the Coast Guard.

Collection of Information

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this proposed rule
under that Order and have determined that it does not have implications
for federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. Though this proposed rule would not result in such an
expenditure, we do discuss the effects of this rule elsewhere in this
preamble.

Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or

adopted by voluntary consensus standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is one of a
category of actions that do not individually or cumulatively have a
significant effect on the human environment. A preliminary
environmental analysis checklist supporting this determination is
available in the docket where indicated under ADDRESSES. This proposed
rule involves establishing an RNA, as described in paragraph 34(g) of
the Instruction. We seek any comments or information that may lead to
the discovery of a significant environmental impact from this proposed
rule.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

    1. The authority citation for part 165 continues to read as
follows:

    Authority:  33 U.S.C. 1226, 1231; 46 U.S.C. Chapter 701, 3306,
3703; 50 U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, 160.5; Pub.
L. 107-295, 116 Stat. 2064; Department of Homeland Security
Delegation No. 0170.1.

    2. Add 33 CFR 165.779 to read as follows:

Sec.  165.779  Regulated Navigation Area; Columbus Day Weekend,
Biscayne Bay, Miami, FL.

    (a) Regulated Area. The regulated navigation area encompasses all
waters in Biscayne Bay between Featherbed Bank and the Rickenbacker
Causeway Bridge contained within an imaginary line connecting the
following points: beginning at Point 1 in position 25[deg] 44'49'' N,
80[deg] 12'02'' W; thence southwest to Point 2 in position 25[deg]
31'21'' N, 80[deg] 15'28'' W; thence southeast to Point 3 in position
25[deg] 30'53'' N, 80[deg] 13'20'' W; thence northeast to Point 4 in
position 25[deg] 43'57'' N, 80[deg] 10'01'' W; thence back to origin.
All coordinates are North American Datum 1983.
    (b) Definition. The term ``designated representative'' means Coast
Guard Patrol Commanders, including Coast Guard coxswains, petty
officers, and other officers operating Coast Guard vessels, and
Federal, state, and local officers designated by or assisting the
Captain of the Port Miami in the enforcement of the regulated area.
    (c) Regulations. (1) During each enforcement period, all vessels
within the regulated area are required to transit at no more than 15
knots, are subject to control by the Coast Guard, and must follow the
instructions of designated representatives.
    (2) At least 48 hours prior to each enforcement period, the Coast
Guard will provide notice of the regulated area through advanced notice
via Local Notice to Mariners and Broadcast Notice to Mariners.
    (d) Enforcement Period. This rule will be enforced daily from 12:01
p.m. until 11:59 p.m. on the Saturday and Sunday of the second week in
October (Columbus Day weekend) each year.

    Dated: April 7, 2011.
William D. Baumgartner,
Rear Admiral, U.S. Coast Guard, Commander, Seventh Coast Guard
District.
[FR Doc. 2011-10665 Filed 5-2-11; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 81, Number 95 (Tuesday, May 17, 2016)]
[Notices]
[Pages 30575-30577]
[FR Doc No: 2016-11539]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-77809; File No. SR-ICEEU-2016-006]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Accounts Categories for Positions of Clearing Member
Affiliates

May 11, 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 April 28 2016, ICE Clear Europe Limited (``ICE Clear Europe'' or
``Clearing House'') 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 proposal pursuant to Section 19(b)(3)(A) of the
Act,\3\ and Rule 19b-4(f)(i) \4\ thereunder, so that the proposal was
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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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)(i).
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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 changes is to clarify the
account categories to be used for positions of affiliates of Clearing
Members.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change. 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
    ICE Clear Europe submits proposed amendments to its Clearing
Procedures to clarify the account categories in which positions of
affiliates of Clearing Members are to be maintained, in light of
applicable US and EU regulatory requirements. ICE Clear Europe does not
propose to amend its Rules in connection with these changes.
    Under CFTC rules, the positions of an affiliate of an FCM are
considered ``proprietary'' for purposes of segregation requirements and
thus cannot be held in a customer account.\5\ As a result, FCMs,
including FCM/BD Clearing Members, have historically carried such
positions in their proprietary accounts. However, under the European
Market Infrastructure Regulation (``EMIR''),\6\ when applicable to ICE
Clear Europe, a clearing member will be required to treat an affiliate
as a client \7\ for various purposes, and accordingly positions of the
affiliate should be held in a separate account from the proprietary
positions of the clearing member.\8\ Accordingly, ICE Clear Europe
proposes to establish new position-keeping accounts for use by FCM/BD
Clearing Members for positions of their affiliates, which will be
separate from the clearing member's own positions (and thus satisfy the
EMIR requirement) but at the same time will not be customer accounts
for purposes of applicable CFTC requirements. Although it is expected
that these accounts will at present be principally relevant to F&O
Contracts of affiliates of FCM/BD Clearing Members, the accounts would
also be used for CDS Contracts of such persons, as and when ICE Clear
Europe accepts such contracts cleared through FCM/BD Clearing Members.
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    \5\ See, e.g., 17 CFR 1.3(y), 17 CFR 1.20(e)(2).
    \6\ Regulation (EU) No 648/2012 of the European Parliament and
of the Council of 4 July 2012 on OTC derivatives, central
counterparties and trade repositories, as well as various
implementing regulations and technical standards.
    \7\ EMIR Article 2(15). EMIR defines ``client'' as ``an
undertaking with a contractual relationship with a clearing member
of a CCP which enables that undertaking to clear its transactions
with that CCP,'' which suggests that an affiliate can be a client of
a clearing member. This understanding of a client is supported in
other EU legislation such as MiFID (see Directive 2004/39/EC of the
European Parliament and of the Council on 21 April 2004 on markets
in financial instruments amending Council Directives 85/611/EEC and
93/6/EEC and Directive 2000/12/EC of the European Parliament and of
the Council and repealing Council Directive 93/22/EEC), and in UK
case law where affiliates have consistently been treated as clients
to whom regulatory obligations were owed. See Re Lehman Brothers
International (Europe) (in administration) [2012] UKSC 6.
    \8\ EMIR Article 39(4).
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    Specifically, ICE Clear Europe proposes to amend paragraph 2.3(b)
of the Clearing Procedures to establish new position-keeping accounts,
labeled the ``F'' and ``R'' accounts, which will be required to be used
for all positions of affiliates of FCM/BD Clearing Members. The ``F''
account will use a gross margin model (for positions in contracts
margined on a gross basis under the Rules and Procedures); the ``R''
account will use a net margin model (for positions in contracts
margined on a net basis under the Rules and Procedures). Both accounts
will be treated as separate Proprietary Accounts for purposes of the
Rules (and accordingly the accounts will not constitute Customer
Accounts of the FCM/BD Clearing Member). New paragraph 2.3(f) has been
added to provide a definition of ``affiliate'' for this purpose, based
on the relevant definitions of proprietary accounts under CFTC rules.
    Paragraph 2.3 has also been revised to clarify the treatment of
positions of affiliates of Non-FCM/BD Clearing Members. New paragraph
2.3(f) also includes a definition of ``affiliate'' for this purpose,
based on the EMIR definition of ``group.'' Conforming changes have been
made to paragraph 2.3(b)(4) to use such definition. Additional
clarifications have been made in paragraph 2.3(b)(5) as to the use by
certain Non-FCM/BD Clearing Members of the ``T'' and ``K'' accounts (as
separate Segregated Customer Omnibus Accounts for F&O or Segregated
TTFCA Customer Omnibus Accounts for F&O) and of the ``F'' and ``R''
accounts as available for holding positions of their affiliates.
Paragraph 2.3(c) has been revised to clarify that the Clearing House
may establish additional position-keeping accounts for a Clearing
Member to facilitate separate tracking of positions for each exchange
non-clearing member for which the Clearing Member provides services.
The revisions also clarify the treatment of such position-keeping
accounts for exchange members as customer or proprietary, consistent
with the requirements of the Rules and Clearing Procedures and
applicable law.
    Amendments to paragraph 3.1(a) of the Clearing Procedures provide
for the margining of the ``F'' and ``R'' accounts of FCM/BD Clearing
members as separate Proprietary Accounts. The summary table following
paragraph 3.2 of the Clearing Procedures has been amended to conform to
the other changes made in the Clearing Procedures.
2. Statutory Basis
    ICE Clear Europe believes that the proposed amendments to the
Clearing Procedures are consistent with the requirements of Section 17A
of the Act \9\ and the regulations thereunder applicable to it.\10\
Section 17A(b)(3)(F) of the Act \11\ 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, to assure the safeguarding of securities and funds which
are in the custody or control of the clearing agency or for which it is
responsible and to protect investors and the public interest.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1.
    \10\ 17 CFR 240.17Ad-22.
    \11\ 15 U.S.C. 78q-1(b)(3)(F).
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    The amendments are designed to clarify the treatment of positions
of affiliates of Clearing Members in light of applicable legal and
regulatory requirements. Specifically, for FCM/BD Clearing Members, the
amendments establish separate accounts in which such positions must be
held, in a manner that is consistent with both CFTC and EMIR
requirements. Such accounts will allow positions of affiliates to be
held separately from the Clearing Member's positions, consistent with
the EMIR requirements, but will be treated as Proprietary Accounts
under the Rules and Procedures, consistent with CFTC rules. The
amendments also clarify the treatment of positions of affiliates of
Non-FCM/BD Clearing Members, consistent with EMIR requirements.
Overall, in ICE Clear Europe's view, the amendments will enhance its
ability (and that of its Clearing Members) to track positions of
Clearing Member affiliates and comply with relevant regulatory
obligations. As a result, in ICE Clear Europe's view, the amendments
will promote the prompt and accurate clearance and settlement of
derivative transactions, are consistent with the safeguarding of funds
and securities in the custody or control of ICE Clear Europe, and
generally further the public interest. The amendments are therefore
consistent with the requirements of Section 17A(b)(3)(F) of the Act
\12\ and the regulations thereunder.\13\
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    \12\ 15 U.S.C. 78q-1(b)(3)(F).
    \13\ 17 CFR 240.17Ad-22.

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B. Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed changes to the Rules
discussed herein would have any adverse impact, or impose any burden,
on competition not necessary or appropriate in furtherance of the
purposes of the Act. The proposed amendments are intended to clarify
the treatment of positions of affiliates of Clearing Member, consistent
with applicable legal requirements. ICE Clear Europe does not believe
the proposed amendments would adversely affect access to clearing by
Clearing Members or their affiliates (or customers), adversely affect
competition among Clearing Members or adversely affect the market for
clearing services or limit market participants' choices for clearing
transactions. Although the proposed amendments may impose additional
compliance costs on Clearing Members, including because of the
requirements to hold affiliate positions in separate accounts that are
separately margined, ICE Clear Europe believes that such costs reflect,
and are appropriate in light of, the legal requirements applicable to
such positions. Although the amendments treat affiliate positions of
FCM/BD Clearing Members and Non-FCM/BD Clearing Members differently in
certain respects, in ICE Clear Europe's view such differences also
result from the different legal frameworks applicable to such Clearing
Members. As a result, ICE Clear Europe does not believe that the
proposed amendments to the Clearing Procedures will impose any burden
on competition not appropriate in furtherance of the purposes of the
Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    ICE Clear Europe has not solicited or received any written comments
with respect to the proposed changes. 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) \14\ of the Act and Rule 19b-4(f)(4)(i) \15\
thereunder. The amendments effect a change in an existing service of a
registered clearing agency that does not adversely affect the
safeguarding of securities or funds in the custody or control of the
clearing agency or for which it is responsible, and does not
significantly affect the respective rights or obligations of the
clearing agency or persons using its clearing service, within the
meaning of Rule 19b-4(f)(4)(i).\16\ As noted above, the amendments
provide for a separate proprietary account to be used for positions of
affiliates of FCM/BD Clearing Members (as opposed to combining such
positions in the same account as the Clearing Member's own positions),
in order to be consistent with both CFTC and EMIR requirements. The
amendments also provide that such accounts will be margined separately.
Certain other clarifications are made with respect to the accounts used
for positions of affiliates of Non-FCM/BD Clearing Members. In ICE
Clear Europe's view, these changes will not adversely affect the
safeguarding of funds or securities in the custody or control of ICE
Clear Europe, from the perspective of Clearing Members or their
affiliates or customers. Although the amendments impose certain
additional requirements on Clearing Members that carry positions on
behalf of their affiliates in terms of the use of a separate account,
ICE Clear Europe also believes that the amendments will not
significantly affect the rights or obligations of ICE Clear Europe or
Clearing Members using its clearing services. As a result, ICE Clear
Europe views these amendments as falling within Rule 19b-
4(f)(4)(i).\17\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(4)(i).
    \16\ 17 CFR 240.19b-4(f)(4)(i).
    \17\ 17 CFR 240.19b-4(f)(4)(i).
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    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.

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<EMAIL_ADDRESS>Please include
File Number SR-ICEEU-2016-006 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-2016-006. 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-2016-006
and should be submitted on or before June 7, 2016.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\18\
---------------------------------------------------------------------------

    \18\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-11539 Filed 5-16-16; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 224 (Thursday, November 20, 2014)]
[Notices]
[Pages 69166-69168]
[FR Doc No: 2014-27452]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-73607; File No. SR-CME-2014-43]

Self-Regulatory Organizations; Chicago Mercantile Exchange Inc.;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change in
Connection With the Acceptance of USD Malaysian Palm Olein Calendar
(Cleared Only) Contracts for Clearing

November 14, 2014.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given
that, on November 6, 2014, Chicago Mercantile Exchange Inc. (``CME'')
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 CME. CME 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.
---------------------------------------------------------------------------

    \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

    CME is proposing rule changes that are limited to its business as a
derivatives clearing organization (``DCO''). More specifically, the
proposed rule change would add rules related to the acceptance of the
USD Malaysian Palm Olein Calendar (Cleared Only) Contract for clearing.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, CME 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. CME has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of these statements.

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

    CME is registered as a DCO with the Commodity Futures Trading
Commission (``CFTC'') and offers clearing services for many different
futures and swaps products. The proposed rule change that is the
subject of this filing is limited to CME's business as a DCO offering
clearing services for CFTC-regulated swaps products. More specifically,
the proposed rule change is related to CME's initial listing of the USD
Malaysian Palm Olein Calendar Swap (Cleared Only) for clearing.

    The USD Malaysian Palm Olein Calendar Swaps would fit within a
subset of one or more groups, categories, types, or classes of CFTC-
regulated swaps that CME already accepts for clearing. For example, CME
currently accepts for clearing physical-commodity calendar swaps that
financially-settle to a commercially-acceptable, publicly-accessible
and timely disseminated price series including the following: CME USD
Malaysian Crude Palm Oil Calendar Swap (CPC); CBOT Wheat Calendar Swap
(WCS); CBOT Corn Calendar Swap (CCS); CBOT Soybean Calendar Swap (SNS);
and the CBOT KC HRW Wheat Calendar Swap (KWS).
    The proposed new rules include a new product Chapter 204B in the
CME rulebook. New rule 204B00 would specify that the USD Malaysian Palm
Olein Calendar Swaps listed by CME would be for clearing-only, would be
available only to ``eligible contract participants'' as defined in
Section 1a(18) of the Commodity Exchange Act, and would be subject to
the applicable provisions of the CME rulebook. New Rule 204B01 would
lay out the various contract specifications of the USD Malaysian Palm
Olein Calendar Swaps including, the unit of clearing, hours for
clearing entry, minimum price increments, months cleared, position
limits, last day of clearing, and liquidation during the delivery
month. The proposed contracts would be liquidated by cash settlement as
set forth in proposed Rule 204B02. Clearing members holding open
positions in USD Malaysian Palm Olein Calendar Swaps at the time of
termination of clearing would be required to make payment to and
receive payment through CME in accordance with normal variation
settlement procedures based on a settlement price equal to the final
settlement price (as described in Rule 204B03.). As specified in
proposed Rule 204B03, the final settlement price for the contracts
would be determined through use of a third party service provider,
i.e., the cumulative average of each Thomson Reuters ``Malaysia RBD
Palm Olein'' third forward month closing time assessment for each
business day of the contract month. Rule 204B04 specifies that daily
settlement prices shall be generated each business day the CME is open
using the most recent available Thomson Reuters values. Under proposed
rule 204B05, the final settlement day for the proposed contracts would
be on the last CME business day of the swap contract month. Under
proposed rule 204B06, all disputes between interested parties may be
settled by CME arbitration. Finally, proposed new rule 204B07 sets out
CME's disclaimer regarding limitations of liability.
    The changes that are described in this filing are limited to
listing the new USD Malaysian Palm Olein Calendar Swaps. The proposed
changes are therefore limited to CME's business as a DCO clearing
products under the exclusive jurisdiction of the CFTC and do not impact
CME's security-based swap clearing business in any way. The changes
will be effective on filing. CME notes that it has also certified the
proposed rule change that is the subject of this filing to its primary
regulator, the Commodity Futures Trading Commission (``CFTC''), in a
separate filing, CME Submission No. 14-254. The text of the CME
proposed rule amendments is attached, with additions underlined and
deletions in brackets.
    CME believes the proposed rule change is consistent with the
requirements of the Act including Section 17A of the Act.\5\ CME is
proposing the amendments to facilitate the listing of a new clearing-
only physical-commodity calendar swap that financially-settles to a
commercially-acceptable, publicly-accessible and timely disseminated
price series. The addition of this new derivative product is designed
to promote the prompt and accurate clearance and settlement of
securities transactions and, to the extent applicable, derivatives
agreements, contracts, and transactions, to assure the safeguarding of
securities and funds which are in the custody or control of the
clearing agency or for which it is responsible, and, in general, to
protect investors and the public interest consistent with Section
17A(b)(3)(F) of the Act.\6\
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Furthermore, the proposed changes are limited in their effect to
products offered under CME's authority to act as a DCO. The products
that are the subject of this filing are under the exclusive
jurisdiction of the CFTC. As such, the proposed CME changes are limited
to CME's activities as a DCO clearing swaps that are not security-based
swaps, futures that are not security futures and forwards that are not
security forwards. CME notes that the policies of the CFTC with respect
to administering the Commodity Exchange Act are comparable to a number
of the policies underlying the Act, such as promoting market
transparency for over-the-counter derivatives markets, promoting the
prompt and accurate clearance of transactions and protecting investors
and the public interest.
    Because the proposed changes are limited in their effect to
products offered under CME's authority to act as a DCO, the proposed
changes are properly classified as effecting a change in an existing
service of CME that:
    (a) Primarily affects the clearing operations of CME 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
    (b) does not significantly affect any securities clearing
operations of CME or any rights or obligations of CME with respect to
securities clearing or persons using such securities-clearing service.
    As such, the changes are therefore consistent with the requirements
of Section 17A of the Act \7\ and are properly filed under Section
19(b)(3)(A) \8\ and Rule 19b-4(f)(4)(ii) \9\ thereunder.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78s(b)(3)(A).
    \9\ 17 CFR 240.19b-4(f)(4)(ii).
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B. Self-Regulatory Organization's Statement on Burden on Competition

    CME does not believe that the proposed rule change will have any
impact, or impose any burden, on competition. The proposed amendments
CME would simply facilitate the listing of a new clearing-only
physical-commodity calendar swap. Further, the changes are limited to
CME's derivatives clearing business and, as such, do not affect the
security-based swap clearing activities of CME in any way and therefore
would not impose any burden on competition that is inappropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants or Others

    CME has not solicited, and does not intend to solicit, comments
regarding this proposed rule change. CME has not received any
unsolicited written comments from interested parties.

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) \10\ of the Act and Rule 19b-4(f)(4)(ii) \11\
thereunder. 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.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------

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<EMAIL_ADDRESS>Please include
File Number SR-CME-2014-43 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-CME-2014-43. 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 will also be available
for inspection and copying at the principal office of CME and on CME's
Web site at http://www.cmegroup.com/market-regulation/rule-filings.html.
    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-CME-2014-43
and should be submitted on or before December 11, 2014.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------

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

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27452 Filed 11-19-14; 8:45 am]
BILLING CODE 8011-01-P