Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to Clearing Member Charges and Rates of Return on Cash and Collateral in Relation to Margin Deposits and Guaranty Fund Contributions for All Clearing Member House and Customer Accounts, 752-754 [2020-00032]
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752
Federal Register / Vol. 85, No. 4 / Tuesday, January 7, 2020 / Notices
A. Background
Partial Calls and the Call Lottery
An issuer of a Security may be
allowed under the terms of the issue to
call a portion of the par value of the
issue outstanding for redemption at
certain times during the life of the issue,
i.e., a Partial Call.6 In such case, some
investors may have all or a portion of
their position redeemed by the issuer,
while others may not have any portion
of their position redeemed.
When an issuer initiates a Partial Call,
DTC’s Procedures require the trustee for
the issue to publish notice of such event
or mail notice of the event, including
the specific amount to be redeemed, to
the registered holders.7 After DTC
receives or collects notice of the Partial
Call, DTC creates an announcement
through its redemptions service,8 and
preliminary call notice information is
made available to Participants.9
Under DTC’s Procedures set forth in
the Redemptions Guide relating to a
Partial Call, DTC allocates the called
Securities among Participants that hold
the applicable Security by means of an
impartial lottery, based upon
Participants’ net long positions as of the
close of business on the day prior to the
publication of the call notice.10 Upon
performing the call lottery, DTC reports
the results to Participants.11
Odd Lots
An odd lot occurs when a Participant
holds a position in a Security that is not
within the stated increments of the
Security, i.e., the par value at which,
pursuant to the terms of the issue, the
Security can be purchased and traded.
For example, a bond contract for a
Security may provide that all purchases
must be made in authorized
denominations equal to a multiple of
$5,000, the minimum incremental
value. Therefore, any amount held by a
Participant that is not a multiple of
$5,000, such as a position with a value
of $5,001, would be an odd lot.12 DTC
6 See
id. at 19.
id.
8 DTC’s redemptions service includes
announcing, collecting, allocating, and reporting
redemption and maturity payments on behalf of its
Participants holding Eligible Securities. See id. at 7.
9 See id. at 19.
10 See id.
11 See id. at 21.
12 An odd lot position may be created, for
example, as a result of a beneficial holder’s account
at a Participant being split into two accounts as a
result of divorce or the administration of the estate
of the beneficial holder. If the division of the assets
in the beneficial holder’s account at the Participant
ultimately results in a portion of the beneficial
holder’s position in the subject Security being
transferred to another Participant, and the
remaining balance of the Security in the beneficial
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7 See
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states that running the lottery with the
odd lot position intact could result in
another Participant being driven into an
odd lot position.13
B. Proposed Change
DTC proposes to amend its
Redemptions Guide to revise its call
lottery process such that, for issues
where the incremental value is $5,000
or less, Participants with odd lot
positions would have their positions
adjusted down to the nearest value that
is divisible by the minimum
incremental value for purposes of the
lottery. However, the Participant would
continue to hold the Securities reduced
from its position for this purpose in its
Account. Thus, the Participant with the
initial odd lot for issues where the
incremental value is $5,000 or less
would continue to maintain an odd lot
position after the lottery is run, and no
new odd lot positions would be created.
In addition, a copyright date in the
text of the Redemptions Guide is
currently shown as 1999–2014. DTC
proposes to revise the text of the
Redemptions Guide to reflect a
copyright date of 1999–2019.
III. Discussion and Commission
Findings
Section 19(b)(2)(C) of the Act 14
directs the Commission to approve a
proposed rule change of a selfregulatory organization if it finds that
such proposed rule change is consistent
with the requirements of the Act and
rules and regulations thereunder
applicable to such organization. After
carefully considering the proposed rule
change, the Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to DTC. In particular, the
Commission finds that the proposed
rule change is consistent with Section
17A(b)(3)(F) of the Act.15
Section 17A(b)(3)(F) of the Act
requires that the rules of a clearing
agency be designed to, among other
things, promote the prompt and
accurate clearance and settlement of
securities transactions and assure the
safeguarding of securities and funds
which are in the custody or control of
holder’s account at the Participant that held the full
position prior to the split is not in a par value
amount that is a multiple of the authorized
denomination, then an odd lot amount could be
created in the Participant’s DTC account.
13 DTC states that odd lot positions are more
difficult to trade due to the terms of the issue
requiring trades to be made only in multiples of the
incremental value. Supra note 3, at 4.
14 15 U.S.C. 78s(b)(2)(C).
15 15 U.S.C. 78q–1(b)(3)(F).
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the clearing agency or for which it is
responsible.16
As described above, the proposal
would prevent the creation of new odd
lot positions during the lottery process
for issues where the incremental value
is $5,000 or less, which would facilitate
the allocation of positions that are more
amenable to trading for transactions that
are processed and settled through DTC’s
system. Therefore, the proposal should
promote the prompt and accurate
clearance and settlement of securities
transactions that are processed and
settled through DTC’s system.
IV. Conclusion
On the basis of the foregoing, the
Commission finds that the proposed
rule change is consistent with the
requirements of the Act and, in
particular, with the requirements of
Section 17A of the Act 17 and the rules
and regulations promulgated
thereunder.
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act 18 that
proposed rule change SR–DTC–2019–
009, be, and hereby is, approved.19
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–00031 Filed 1–6–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87880; File No. SR–ICEEU–
2019–029]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Changes Relating to
Clearing Member Charges and Rates of
Return on Cash and Collateral in
Relation to Margin Deposits and
Guaranty Fund Contributions for All
Clearing Member House and Customer
Accounts
January 2, 2020.
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 December
16 Id.
17 15
U.S.C. 78q–1.
U.S.C. 78s(b)(2).
19 In approving the proposed rule change, the
Commission considered the proposals’ impact on
efficiency, competition, and capital formation. 15
U.S.C. 78c(f).
20 17 CFR 200.30–3(a)(12).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
18 15
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Federal Register / Vol. 85, No. 4 / Tuesday, January 7, 2020 / Notices
20, 2019, ICE Clear Europe Limited
(‘‘ICE Clear Europe’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
changes described in Items I, II and III
below, which Items have been primarily
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)(2) 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.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The principal purpose of the
proposed rule change is to revise
Clearing Member Charges and Rates of
Return on cash and collateral in relation
to margin deposits and Guaranty Fund
contributions for all Clearing Member
House and Customer Accounts. The
revisions do not involve any changes to
the ICE Clear Europe Clearing Rules or
Procedures.5
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
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) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission or Advance Notice
(a) Purpose
The purpose of the proposed rule
changes are for ICE Clear Europe to: (i)
Reduce the Rate of Return paid to
Clearing Members on cash balances; and
(ii) increase the charges levied on
Clearing Members in relation to
collateral in respect of margin deposits
and Guaranty Fund contributions.
Attached [sic] as Exhibit 5 are the
tables listing the new Clearing Member
Cash
Charges and Rates of Return that will be
included in a Circular in advance of the
effective date. The new Clearing
Member Charges and Rates of Return are
expected to come into effect on January
1, 2020. The proposed revisions to the
Clearing Member Charges and Rates of
Return are set forth in Exhibit 5 hereto,
and described in detail as follows.
Currently, ICEU pays a rate of return
on cash deposited by Clearing Members
in respect of margin deposits and
Guaranty Fund contributions referred to
as the ICE Deposit Rate (‘‘IDR’’). IDR is
calculated daily and applied to cash
balances held at the close of business on
the previous business day in respect of
three currencies, U.S. Dollar, Euro and
Pound Sterling. It is calculated as
follows: The net income earned on cash
deposits (positive or negative) less a
charge of 12.5 basis points (out of which
the Clearing House shall cover external
investment management expenses).
ICEU proposes to increase this charge to
15 basis points.
ICEU also proposes to increase the
Clearing House charges for Collateral
and Triparty Collateral as per Exhibit 5.
Collateral
Triparty collateral
Clearing House pays
IDR.
Clearing House pays
IDR.
Clearing House pays
IDR.
Clearing House pays
IDR minus 15 bps.
Clearing House pays
IDR minus 15 bps.
Clearing House charges 8.33 [7.5]
basis points.
Clearing House charges 8.33 [7.5]
basis points.
Clearing House charges 8.33 [7.5]
basis points.
Clearing House charges 10.33
[9.5] basis points.
Clearing House charges 10.33
[9.5] basis points.
Clearing House charges 8.33 [7.5]
basis points.
Clearing House charges 8.33 [7.5]
basis points.
Clearing House charges 8.33 [7.5]
basis points.
Clearing House charges 10.33
[9.5] basis points.
Clearing House charges 10.33
[9.5] basis points.
Clearing House pays
IDR minus 20 bps.
Clearing House charges
[12.5] basis points.
Clearing House charges
[12.5] basis points.
Margin Deposits
House and Affiliate Accounts (‘‘H’’, ‘‘F’’ and
‘‘R’’).
Segregated Customer Accounts (‘‘C’’, ‘‘E’’,
‘‘K’’, ‘‘S’’, ‘‘T’’, ‘‘W’’ and ‘‘Z’’).
Standard Omnibus Indirect Customer Accounts (O’’, ‘‘P’’, ‘‘X’’ and ‘‘Y’’).
Gross Omnibus Indirect Customer Accounts
(‘‘A’’ and ‘‘B’’).
Individually Segregated Operationally Comingled (‘‘ISOC’’) Account (‘‘I’’ and ‘‘J’’ Account).
Individually Segregated Sponsored Account
(‘‘Sponsored Principal’’).
13.33
13.33
Guaranty Fund
All Clearing Members .....................................
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(b) Statutory Basis
ICE Clear Europe believes that the
proposed rule changes are consistent
with the requirements of the Act,
including Section 17A of the Act 6 and
regulations thereunder applicable to it.
More specifically ICE Clear Europe has
determined that imposing such Charges
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
5 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
Europe Clearing Rules.
4 17
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Clearing House pays
IDR.
Clearing House charges 8.33 [7.5]
basis points.
and Rates of Return uniformly across all
market participants thus provides for
the equitable allocation of reasonable
dues, fees, and other charges among its
Clearing Members, within the meaning
of Section 17A(b)(3)(D) of the Act.7 As
such, the proposed changes are
appropriately filed pursuant to Section
6 15
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(D). Under this provision,
‘‘[a] clearing agency shall not be registered unless
the Commission determines that—(D) The rules of
the clearing agency provide for the equitable
7 15
PO 00000
Frm 00085
Fmt 4703
Sfmt 4703
N/A.
19(b)(3)(A) 8 of the Act and paragraph
(f)(2) of Rule 19b–49 thereunder.
(B) Self-Regulatory Organization’s
Statement on Burden on Competition
ICE Clear Europe does not believe the
proposed rule changes would have any
impact, or impose any burden, on
competition not necessary or
allocation of reasonable dues, fees, and other
charges among its participants.’’
8 15 U.S.C 78s(b)(3)(A).
9 17 CFR 240.19b–4(f)(2).
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07JAN1
754
Federal Register / Vol. 85, No. 4 / Tuesday, January 7, 2020 / Notices
appropriate in furtherance of the
purpose of the Act because the changes
to the Clearing Member Charges and
Rates of Return will apply uniformly
across all market participants. ICE Clear
Europe does not believe that the
amendments would adversely affect the
ability of such Clearing Members or
other market participants generally to
engage in cleared transactions or to
access clearing.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
Written comments relating to the
proposed changes to the rules have not
been solicited or received. ICE Clear
Europe will notify the Commission of
any written comments received by ICE
Clear Europe.
III. Date of Effectiveness of the
Proposed Rule Change, Security-Based
Swap Submission and Advance Notice
and Timing for Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 10 of the Act and paragraph
(f) of Rule 19b–4 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.
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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, security-based swap submission
or advance notice is consistent with the
Act. Comments may be submitted by
any of the following methods:
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 website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change, security-based swap submission
or advance notice that are filed with the
Commission, and all written
communications relating to the
proposed rule change, security-based
swap submission or advance notice
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 website 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 website at https://
www.theice.com/clear-europe/
regulation.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICEEU–2019–029
and should be submitted on or before
January 28, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–00032 Filed 1–6–20; 8:45 am]
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICEEU–2019–029 on the subject line.
BILLING CODE 8011–01–P
Paper Comments
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Fees
Schedule
• 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–2019–029. This file
10 15
11 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
16:15 Jan 06, 2020
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–87873; File No. SR–CBOE–
2019–127]
December 31, 2019.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on December
20, 2019, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the Exchange.
The Commission is publishing this
notice to solicit comments on the
proposed rule change from interested
persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to adopt
certain linkage fee codes. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/CBOELegalRegulatory
Home.aspx), at the Exchange’s Office of
the Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange’s Fees Schedule
currently provides for fee codes for
Routing Fees. In particular, the Fees
Schedule currently lists fee codes and
their corresponding transaction fee for
routed Customer orders to other options
exchanges specifically in Exchange
Traded Funds (‘‘ETF’’) and equity
options, and for non-Customer orders
routed in Penny and Non-Penny options
classes. The Exchange notes that in
connection with a recent technology
migration (including the migration of
the Exchange’s billing system to a new
1 15
12 17
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PO 00000
CFR 200.30–3(a)(12).
Frm 00086
Fmt 4703
Sfmt 4703
2 17
E:\FR\FM\07JAN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
07JAN1
]]>Agencies
[Federal Register Volume 85, Number 4 (Tuesday, January 7, 2020)]
[Notices]
[Pages 752-754]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00032]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-87880; File No. SR-ICEEU-2019-029]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Changes Relating
to Clearing Member Charges and Rates of Return on Cash and Collateral
in Relation to Margin Deposits and Guaranty Fund Contributions for All
Clearing Member House and Customer Accounts
January 2, 2020.
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 December
[[Page 753]]
20, 2019, ICE Clear Europe Limited (``ICE Clear Europe'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule changes described in Items I, II and III below, which Items have
been primarily 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)(2) \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.
---------------------------------------------------------------------------
\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)(2).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed rule change is to revise
Clearing Member Charges and Rates of Return on cash and collateral in
relation to margin deposits and Guaranty Fund contributions for all
Clearing Member House and Customer Accounts. The revisions do not
involve any changes to the ICE Clear Europe Clearing Rules or
Procedures.\5\
---------------------------------------------------------------------------
\5\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Clearing Rules.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission or
Advance Notice
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) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission or
Advance Notice
(a) Purpose
The purpose of the proposed rule changes are for ICE Clear Europe
to: (i) Reduce the Rate of Return paid to Clearing Members on cash
balances; and (ii) increase the charges levied on Clearing Members in
relation to collateral in respect of margin deposits and Guaranty Fund
contributions.
Attached [sic] as Exhibit 5 are the tables listing the new Clearing
Member Charges and Rates of Return that will be included in a Circular
in advance of the effective date. The new Clearing Member Charges and
Rates of Return are expected to come into effect on January 1, 2020.
The proposed revisions to the Clearing Member Charges and Rates of
Return are set forth in Exhibit 5 hereto, and described in detail as
follows.
Currently, ICEU pays a rate of return on cash deposited by Clearing
Members in respect of margin deposits and Guaranty Fund contributions
referred to as the ICE Deposit Rate (``IDR''). IDR is calculated daily
and applied to cash balances held at the close of business on the
previous business day in respect of three currencies, U.S. Dollar, Euro
and Pound Sterling. It is calculated as follows: The net income earned
on cash deposits (positive or negative) less a charge of 12.5 basis
points (out of which the Clearing House shall cover external investment
management expenses). ICEU proposes to increase this charge to 15 basis
points.
ICEU also proposes to increase the Clearing House charges for
Collateral and Triparty Collateral as per Exhibit 5.
----------------------------------------------------------------------------------------------------------------
Cash Collateral Triparty collateral
----------------------------------------------------------------------------------------------------------------
Margin Deposits
----------------------------------------------------------------------------------------------------------------
House and Affiliate Accounts (``H'', Clearing House pays IDR Clearing House charges Clearing House charges
``F'' and ``R''). 8.33 [7.5] basis points. 8.33 [7.5] basis
points.
Segregated Customer Accounts (``C'', Clearing House pays IDR Clearing House charges Clearing House charges
``E'', ``K'', ``S'', ``T'', ``W'' 8.33 [7.5] basis points. 8.33 [7.5] basis
and ``Z''). points.
Standard Omnibus Indirect Customer Clearing House pays IDR Clearing House charges Clearing House charges
Accounts (O'', ``P'', ``X'' and 8.33 [7.5] basis points. 8.33 [7.5] basis
``Y''). points.
Gross Omnibus Indirect Customer Clearing House pays IDR Clearing House charges Clearing House charges
Accounts (``A'' and ``B''). minus 15 bps. 10.33 [9.5] basis 10.33 [9.5] basis
points. points.
Individually Segregated Clearing House pays IDR Clearing House charges Clearing House charges
Operationally Co-mingled (``ISOC'') minus 15 bps. 10.33 [9.5] basis 10.33 [9.5] basis
Account (``I'' and ``J'' Account). points. points.
Individually Segregated Sponsored Clearing House pays IDR Clearing House charges Clearing House charges
Account (``Sponsored Principal''). minus 20 bps. 13.33 [12.5] basis 13.33 [12.5] basis
points. points.
----------------------------------------------------------------------------------------------------------------
Guaranty Fund
----------------------------------------------------------------------------------------------------------------
All Clearing Members................ Clearing House pays IDR Clearing House charges N/A.
8.33 [7.5] basis points.
----------------------------------------------------------------------------------------------------------------
(b) Statutory Basis
ICE Clear Europe believes that the proposed rule changes are
consistent with the requirements of the Act, including Section 17A of
the Act \6\ and regulations thereunder applicable to it. More
specifically ICE Clear Europe has determined that imposing such Charges
and Rates of Return uniformly across all market participants thus
provides for the equitable allocation of reasonable dues, fees, and
other charges among its Clearing Members, within the meaning of Section
17A(b)(3)(D) of the Act.\7\ As such, the proposed changes are
appropriately filed pursuant to Section 19(b)(3)(A) \8\ of the Act and
paragraph (f)(2) of Rule 19b-4\9\ thereunder.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
\7\ 15 U.S.C. 78q-1(b)(3)(D). Under this provision, ``[a]
clearing agency shall not be registered unless the Commission
determines that--(D) The rules of the clearing agency provide for
the equitable allocation of reasonable dues, fees, and other charges
among its participants.''
\8\ 15 U.S.C 78s(b)(3)(A).
\9\ 17 CFR 240.19b-4(f)(2).
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(B) Self-Regulatory Organization's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed rule changes would
have any impact, or impose any burden, on competition not necessary or
[[Page 754]]
appropriate in furtherance of the purpose of the Act because the
changes to the Clearing Member Charges and Rates of Return will apply
uniformly across all market participants. ICE Clear Europe does not
believe that the amendments would adversely affect the ability of such
Clearing Members or other market participants generally to engage in
cleared transactions or to access clearing.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments relating to the proposed changes to the rules have
not been solicited or received. ICE Clear Europe will notify the
Commission of any written comments received by ICE Clear Europe.
III. Date of Effectiveness of the Proposed Rule Change, Security-Based
Swap Submission and Advance Notice and Timing for Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \10\ of the Act and paragraph (f) of Rule 19b-4 \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.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f)(2).
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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, security-based swap submission or advance notice is consistent
with the Act. Comments may be submitted by any of the following
methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml) or
Send an email to [email protected]. Please include
File Number SR-ICEEU-2019-029 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-2019-029. 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 website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change, security-based
swap submission or advance notice that are filed with the Commission,
and all written communications relating to the proposed rule change,
security-based swap submission or advance notice 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 website 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 website at https://www.theice.com/clear-europe/regulation.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICEEU-2019-029 and should be
submitted on or before January 28, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-00032 Filed 1-6-20; 8:45 am]
BILLING CODE 8011-01-P
