
[Federal Register Volume 80, Number 61 (Tuesday, March 31, 2015)]
[Notices]
[Pages 17119-17121]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-07258]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-74577; File No. SR-ICEEU-2015-006]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to FATCA Requirements

March 25, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on March 13, 2015, ICE Clear Europe Limited (``ICE Clear Europe'' or 
``Clearing House'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change described in Items I, II and 
III below, which Items have been prepared by ICE Clear Europe. ICE 
Clear Europe filed the proposed rule change pursuant to Section 
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(4)(i) \4\ thereunder, so 
that the proposed rule change 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 rule change is to amend the 
ICE Clear Europe Finance Procedures in order to address certain 
reporting and information requirements relating to Sections 1471 
through 1474 of the U.S.

[[Page 17120]]

Internal Revenue Code \5\ and U.S. Treasury regulations and other 
guidance thereunder (commonly known as the Foreign Account Tax 
Compliance Act, or ``FATCA'') and related provisions under U.K. law and 
similar legislation, regulations or guidance enacted in any 
jurisdiction which seeks to implement similar tax reporting and/or 
withholding tax regimes.
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    \5\ 26 U.S.C. 1471-1474.
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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.

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

(i) Purpose
    The purpose of the proposed rule change is for ICE Clear Europe to 
adopt amendments to its Finance Procedures in order to clarify certain 
informational and tax form requirements applicable to its Clearing 
Members in connection with FATCA (and other similar laws). 
Specifically, the amendments add a new paragraph 6.1(j) to the Finance 
Procedures, which states that Clearing Members are required to provide 
to the Clearing House information, and to complete tax forms, as may be 
required by the Clearing House in order to comply with its obligations 
relating to FATCA, including obligations under intergovernmental 
arrangements between U.K. and U.S. authorities with respect to FATCA 
compliance and implementing regulations and guidance in the U.K. The 
amendments also clarify that ICE Clear Europe's status under FATCA and 
such agreements and implementing regulations (including ICE Clear 
Europe's registration with the U.S. Internal Revenue Service for a 
Global Intermediary Identification Number for FATCA reporting purposes) 
is not intended to have any effect on ICE Clear Europe's status for the 
purposes of any other applicable law, or any of the rights or 
obligations of ICE Clear Europe or any Clearing Member or customer 
provided for under the Rules and Procedures and relevant member 
agreements.
(ii) Statutory Basis
    FATCA was enacted on March 18, 2010, as part of the Hiring 
Incentives to Restore Employment Act, and became effective, subject to 
transition rules, on January 1, 2013. The U.S. Treasury Department 
finalized and issued various implementing regulations (``FATCA 
Regulations'') \6\ on January 17, 2013. FATCA's intent is to curb tax 
evasion by U.S. citizens and residents through their use of offshore 
bank accounts. FATCA generally requires foreign financial institutions 
(``FFIs'') \7\ to become ``participating FIs'' by entering into 
agreements with the Internal Revenue Service (``IRS''), under which the 
FFI is required to report to the IRS information on U.S. persons and 
entities that have accounts with the FFI. Failure to enter into such an 
agreement would result in withholding taxes on certain payments to the 
FFI. As an alternative to FFIs entering into individual agreements with 
the IRS, the U.S. Treasury Department provided another means of 
complying with FATCA for FFIs which are resident in Non-U.S. 
jurisdictions that enter into intergovernmental agreements (``IGAs'') 
with the United States. Generally, such a jurisdiction (``FATCA 
Partner'') would pass laws to eliminate the conflicts of law issues 
that would otherwise make it difficult for FFIs in its jurisdiction to 
collect the information required under FATCA and transfer this 
information, directly or indirectly, to the United States. An FFI 
resident in a FATCA Partner jurisdiction would be required to transmit 
FATCA reporting to its local competent tax authority (which in turn 
would transmit the information to the IRS), or the FFI would be 
authorized or required to transmit FATCA reporting directly to the 
IRS.\8\
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    \6\ Regulations Relating to Information Reporting by Foreign 
Financial Institutions and Withholding on Certain Payments to 
Foreign Financial Institutions and Other Foreign Entities, 78 FR 
5874 (Apr. 15, 2013).
    \7\ Non-U.S. financial institutions are referred to as ``foreign 
financial institutions'' or ``FFIs'' in the FATCA Regulations.
    \8\ For a more complete discussion of the background of FATCA, 
as well as certain rules and procedures previously adopted by ICE 
Clear Europe relating to FATCA compliance, see Exchange Act Release 
No. 34-70283 (August 29, 2013), 78 FR 54713 (Sept. 5, 2013) (File 
No. SR-ICEEU-2013-08).
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    The U.K. has entered into an IGA with the United States, and U.K. 
tax authorities have adopted implementing regulations (and related 
guidance) with respect to FATCA compliance for U.K. entities.\9\ Under 
the U.K. implementing regulations and guidance, central counterparties 
such as ICE Clear Europe may be treated as FFIs for purposes of FATCA 
compliance. In connection with those regulations, and ICE Clear 
Europe's potential obligations under them as a central counterparty, 
ICE Clear Europe has proposed the amendments to the Finance Procedures 
to require its Clearing Members to provide necessary information and 
relevant tax forms to the Clearing House. In addition, for added 
clarity and to avoid any potential legal uncertainty arising from the 
treatment of central counterparties under the U.K. implementing 
regulations for FATCA purposes, the amendments also provide that ICE 
Clear Europe's FATCA status is not intended to otherwise affect its 
status under other laws, or to affect the rights and obligations of the 
Clearing House, its Clearing Members or other market participants.
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    \9\ See International Tax Compliance (United States of America) 
Regulations 2014 (SI 2014/1506); Implementation of The International 
Tax Compliance (United States of America) Regulations 2014, HM 
Revenue & Customs Guidance Notes (Aug. 28, 2014).
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    ICE Clear Europe believes that the proposed rule change is 
consistent with the requirements of Section 17A of the Securities 
Exchange Act of 1934 (the ``Act'') \10\ and the regulations thereunder 
applicable to it. 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. Specifically, the proposed rule change is intended to 
facilitate compliance by ICE Clear Europe with its potential 
obligations under FATCA and under the related implementing regulations 
and guidance in the U.K. and thus further the tax compliance goals of 
the FATCA regime. In ICE Clear Europe's view, the amendments are 
therefore consistent with the protection of investors and the public 
interest, and the requirements of Section 17A(b)(3)(F) of the Act.
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    \10\ 15 U.S.C. 78q-1.
    \11\ 15 U.S.C. 78q-1(b)(3)(F).
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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

[[Page 17121]]

competition not necessary or appropriate in furtherance of the purpose 
of the Act. The proposed rule change imposes certain informational 
requirements on Clearing Members, in order to ensure that ICE Clear 
Europe is in compliance with FATCA and implementing U.K. regulations 
and guidance. The amendments would apply to all Clearing Members. ICE 
Clear Europe does not believe that the amendments would adversely 
affect the ability of Clearing Members or other market participants 
generally to engage in cleared transactions or to access clearing, 
adversely affect competition among Clearing Members, adversely affect 
the market for clearing services or limit market participants' choices 
for clearing transactions. To the extent that compliance with the 
amendments will result in any additional cost for Clearing Member or 
other market participants, ICE Clear Europe believes that such cost 
results from the requirements mandated by FATCA and implementing 
regulations. As a result, ICE Clear Europe does not believe that the 
proposed amendments 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

    Written comments relating to the proposed rule change 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) of the Act \12\ and Rule 19b-4(f)(4)(i).\13\ 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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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(4)(i).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-ICEEU-2015-006 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-2015-006. 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. All comments received will be posted without change; 
the Commission does not edit personal identifying information from 
submissions. You should submit only information that you wish to make 
available publicly. All submissions should refer to File Number SR-
ICEEU-2015-006 and should be submitted on or before April 21, 2015.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-07258 Filed 3-30-15; 8:45 am]
BILLING CODE 8011-01P


