Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to Clearing Member Transaction Fees for Certain Equity Derivatives Contracts, Specifically the Fee Caps for the Block Only Standard and Flexible Single Stock Futures and Options (“the Contracts”), 14999-15002 [2020-05241]
Download as PDF
Federal Register / Vol. 85, No. 51 / Monday, March 16, 2020 / Notices
order flow to the Exchange. To the
extent this is achieved, all the
Exchange’s market participants should
benefit from the improved market
quality.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A)(ii) of the Act,29 and Rule
19b–4(f)(2) 30 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. If the Commission
takes such action, the Commission shall
institute proceedings to determine
whether the proposed rule should be
approved or disapproved.
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:
lotter on DSKBCFDHB2PROD with NOTICES
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–
MIAX–2020–05 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–MIAX–2020–05. 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 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 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 the
filing also will be available for
inspection and copying at the principal
office of the Exchange. 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–MIAX–2020–05, and
should be submitted on or before April
6, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.31
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–05235 Filed 3–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88356; File No. SR–ICEEU–
2020–001]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Changes Relating to
Clearing Member Transaction Fees for
Certain Equity Derivatives Contracts,
Specifically the Fee Caps for the Block
Only Standard and Flexible Single
Stock Futures and Options (‘‘the
Contracts’’)
March 10, 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 February
25, 2020, ICE Clear Europe Limited
(‘‘ICE Clear Europe’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
29 15
U.S.C. 78s(b)(3)(A)(ii).
30 17 CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
18:29 Mar 13, 2020
1 15
Jkt 250001
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,
such that the proposed rule change was
immediately 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
ICE Clear Europe Limited (‘‘ICE Clear
Europe’’) proposes rule changes relating
to fees payable by Clearing Members for
certain Equity Derivatives contracts,
specifically the fee caps for the Block
Only Standard and Flexible Single
Stock Futures and Options (‘‘the
Contracts’’). 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
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
(a) Purpose
The purpose of the proposed rule
changes is for ICE Clear Europe to
update certain fees payable by Clearing
Members for certain Equity Derivatives
contracts which are cleared by ICEU
Clear Europe. Specifically, ICE Clear
Europe proposes changing the Clearing
Member fee caps for the Block Only
Standard and Flexible Single Stock
Futures and Options. No changes will
be made to the underlying fee rate per
contract (‘‘RPC’’) for these products.
Attached as Exhibit 5 is the table listing
the new fee caps for the Block Only
Standard and Flexible Single Stock
Futures and Options that will be
included in a Circular in advance of the
proposed effective date. The new
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
31 17
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E:\FR\FM\16MRN1.SGM
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Federal Register / Vol. 85, No. 51 / Monday, March 16, 2020 / Notices
lotter on DSKBCFDHB2PROD with NOTICES
Clearing Member fee caps are intended
to come into effect on 2 March 2020.
The proposed revisions to the Clearing
Member fee caps are described in detail
as follows.
ICE Clear Europe generally imposes
clearing fees for the Contracts on a per
lot basis. However, ICE Clear Europe
also establishes a fee cap applicable to
the clearing for the Contracts, which
limits the maximum clearing fee
payable by a Clearing Member per leg of
a transaction regardless of the size or
number of lots actually cleared. A
similar fee structure (and fee cap)
applies to the trading fee charged by the
relevant exchange on which the
Contracts are listed, which in this case
is ICE Futures Europe (‘‘the Exchange’’
or ‘‘IFEU’’). For example, under the
proposed trading/clearing fees for UK
Standard and Flexible Stock Options,
with an total (i.e. trading plus clearing)
fee cap of £400 and a combined trading/
clearing fee of £0.40 per lot, a market
participant would need to trade/clear
1,000 lots to meet the total fee cap on
a trade by trade basis. Any volume over
VerDate Sep<11>2014
18:29 Mar 13, 2020
Jkt 250001
1,000 lots would not attract any charge
on a trade by trade basis.
ICE Clear Europe is proposing to
increase the Clearing Member fee caps
for the Contracts as discussed below. It
should also be noted that the total
trading/clearing fee caps would remain
extremely low compared to notional
value. For example, the largest trade
that the Exchange observed from
September 2018 to September 2019 in
UK Stock Options in notional terms was
£86.6m and the proposed total fee cap
of £400 represents 0.00046% of this
notional value.
The changes to ICE Clear Europe’s
Clearing Member fee caps for the
Contracts are intended to be consistent
with parallel changes being made by the
relevant exchange on which the
Contracts are listed, namely IFEU. The
Exchange has determined that it would
be appropriate to raise the fee caps
related to exchange fees for the
Contracts, as the existing fee caps are
low in notional terms compared to the
size of trades in the Contracts and do
not reflect the risks and costs that both
the Exchange and the Clearing House
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
take on by facilitating this business.
These changes result from IFEU’s
annual review of fees for all of its Equity
Derivative products and, with regards to
these specific products, the fee caps
have not changed since the predecessor
LIFFE exchange was acquired 6 years
ago as part of ICE’s acquisition of the
New York Stock Exchange. ICE Clear
Europe also notes that in the case of the
UK Standard Stock Options, raising the
fee caps may also incentivise the use of
the Central Limit Order Book instead of
block transactions.
Please find a breakdown of the
existing trading/clearing fee structure
and the proposed new fee structure
below (changes highlighted in red) as
per Exhibit 5. There are two fee
structures for the Contracts, the
difference between them being that if a
Clearing Member meets the applicable
minimum volume threshold it can
choose to have the trade details
published with a 15 minute delay posttrade which involves slightly higher fees
than the standard fees associated with
trades published as soon as they are
matched.
E:\FR\FM\16MRN1.SGM
16MRN1
15001
Federal Register / Vol. 85, No. 51 / Monday, March 16, 2020 / Notices
Fee Cap2
Published
Delayed Published
....C
C1I
Austrian, Belgian,
Czech, Danish, Dutch,
Finnish, French,
German, Hungarian,
Irish, Italian,
Norwegian, Polish,
Portuguese, Spanish,
Swedish, Swiss Single
Stock futures (block
only)
€ 45
Austrian, Belgian,
Danish, Dutch, Finnish,
French, German, Irish,
Italian, Norwegian,
Portuguese, Spanish,
Swedish, Swiss Single
Stock Options (block
only)
€ 50
Canadian, Indian DR,
South Korean DR, Swiss
DR, UK Single Stock
Futures (block only)
£ 50
£ 360
€ 405
lotter on DSKBCFDHB2PROD with NOTICES
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.
ICE Clear Europe’s fees are imposed at
the product level on a per transaction
basis (as are the applicable Exchange
fees). As a result, the fees (and fee caps)
apply equally to all market participants
who trade/clear the Contracts. ICE Clear
U.S.C. 78q–1.
VerDate Sep<11>2014
18:29 Mar 13, 2020
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€
575
N/A
€
£
€
450
€58
€ 500
N/A
€ 60
€ 540
€
600
€ 500
N/A
N/A
£
500
£60
£ 540
£
N/A
£
N/A
€ 450
€
500
£ 450
£
500
Europe continues to believe that the use
of fee caps provides appropriate
incentives and rewards to market
participants for the use of the Clearing
House’s clearing services for the
Contracts. However, as noted above, ICE
Clear Europe has not increased the
applicable fee caps since it began
clearing the Contracts six years ago, and
believes that the current cap levels are
too low, relative to the observed trade
sizes and activity, to properly
compensate ICE Clear Europe for the
risks, costs and expenses of clearing the
Frm 00130
Cl.I
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en -t:
(Q
Cl.I
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€
450
PO 00000
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-~
~ en
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400
(b) Statutory Basis
6 15
~
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w
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....ftl
ftl
~
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'i:
ftl
.c
UK Single Stock Options
(block only)
.....
bO
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....C
.....
Fmt 4703
Sfmt 4703
€ 517
600
450
500
Contracts. ICE Clear Europe believes
that the increases in the fee caps are
modest in size in comparison to
notional volume cleared and are
appropriate to compensate it for offering
clearing services for the Contracts,
taking into account the investments it
has made in providing its clearing
services. ICE Clear Europe has
determined that the revised fee caps
will provide a more appropriate balance
between the costs of clearing and
expenses incurred by ICE Clear Europe
and an appropriate fee structure for
E:\FR\FM\16MRN1.SGM
16MRN1
EN16MR20.000
IC
~
15002
Federal Register / Vol. 85, No. 51 / Monday, March 16, 2020 / Notices
market participants that takes into
account their transaction volume. As
such, in ICE Clear Europe’s view, the
amendments are consistent with the
equitable allocation of reasonable dues,
fees and other charges among its
Clearing Members and other market
participants, within the meaning of
Section 17A(b)(3)(D) of the Act,7 and
further do not unfairly discriminate
among such participants in their use of
the Clearing House, within the meaning
of Section 17A(b)(3)(F) of the Act.8
(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
appropriate in furtherance of the
purpose of the Act. As discussed above,
because fees are imposed on a per
transaction basis at the product level,
the fee caps are applied equally to all
those market participants who trade
and/or clear the Contracts. Although the
amendments may result in higher fees
for particular Clearing Members because
of the higher fee caps, ICE Clear Europe
believes that the new fee caps would be
set at an appropriate level to better
reflect the cost that the Clearing House
takes on by facilitating the relevant
clearing services. Any such higher fees
will also more closely reflect the volume
traded. ICE Clear Europe does not
believe that the amendments would
adversely affect the ability of such
Clearing Members or other market
participants generally to access clearing
services for the Contracts. Further, since
the revised fee caps will apply to all
Clearing Members, ICE Clear Europe
believes that the amendments would not
otherwise affect competition among
Clearing Members, adversely affect the
market for clearing services or limit
market participants’ choices for
obtaining clearing services.
(C) Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants or Others
lotter on DSKBCFDHB2PROD with NOTICES
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.
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. 78q–1(b)(3)(F).
VerDate Sep<11>2014
18:29 Mar 13, 2020
Jkt 250001
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 9 of the Act and paragraph (f)
of Rule 19b–4 10 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.
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 rule-comments@
sec.gov. Please include File Number SR–
ICEEU–2020–001 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–2020–001. 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 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 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
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
10 17
PO 00000
Frm 00131
Fmt 4703
Sfmt 4703
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/notices/
Notices.shtml?regulatoryFilings.
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–2020–001
and should be submitted on or before
April 6, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–05241 Filed 3–13–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
2:00 p.m. on Wednesday,
March 18, 2020.
PLACE: The meeting will be held at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matters of the closed
meeting will consist of the following
topics:
TIME AND DATE:
11 17
E:\FR\FM\16MRN1.SGM
CFR 200.30–3(a)(12).
16MRN1
Agencies
[Federal Register Volume 85, Number 51 (Monday, March 16, 2020)]
[Notices]
[Pages 14999-15002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05241]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88356; File No. SR-ICEEU-2020-001]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Changes Relating
to Clearing Member Transaction Fees for Certain Equity Derivatives
Contracts, Specifically the Fee Caps for the Block Only Standard and
Flexible Single Stock Futures and Options (``the Contracts'')
March 10, 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 February 25, 2020, 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, such that the
proposed rule change was immediately 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
ICE Clear Europe Limited (``ICE Clear Europe'') proposes rule
changes relating to fees payable by Clearing Members for certain Equity
Derivatives contracts, specifically the fee caps for the Block Only
Standard and Flexible Single Stock Futures and Options (``the
Contracts''). 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
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
(a) Purpose
The purpose of the proposed rule changes is for ICE Clear Europe to
update certain fees payable by Clearing Members for certain Equity
Derivatives contracts which are cleared by ICEU Clear Europe.
Specifically, ICE Clear Europe proposes changing the Clearing Member
fee caps for the Block Only Standard and Flexible Single Stock Futures
and Options. No changes will be made to the underlying fee rate per
contract (``RPC'') for these products. Attached as Exhibit 5 is the
table listing the new fee caps for the Block Only Standard and Flexible
Single Stock Futures and Options that will be included in a Circular in
advance of the proposed effective date. The new
[[Page 15000]]
Clearing Member fee caps are intended to come into effect on 2 March
2020. The proposed revisions to the Clearing Member fee caps are
described in detail as follows.
ICE Clear Europe generally imposes clearing fees for the Contracts
on a per lot basis. However, ICE Clear Europe also establishes a fee
cap applicable to the clearing for the Contracts, which limits the
maximum clearing fee payable by a Clearing Member per leg of a
transaction regardless of the size or number of lots actually cleared.
A similar fee structure (and fee cap) applies to the trading fee
charged by the relevant exchange on which the Contracts are listed,
which in this case is ICE Futures Europe (``the Exchange'' or
``IFEU''). For example, under the proposed trading/clearing fees for UK
Standard and Flexible Stock Options, with an total (i.e. trading plus
clearing) fee cap of [pound]400 and a combined trading/clearing fee of
[pound]0.40 per lot, a market participant would need to trade/clear
1,000 lots to meet the total fee cap on a trade by trade basis. Any
volume over 1,000 lots would not attract any charge on a trade by trade
basis.
ICE Clear Europe is proposing to increase the Clearing Member fee
caps for the Contracts as discussed below. It should also be noted that
the total trading/clearing fee caps would remain extremely low compared
to notional value. For example, the largest trade that the Exchange
observed from September 2018 to September 2019 in UK Stock Options in
notional terms was [pound]86.6m and the proposed total fee cap of
[pound]400 represents 0.00046% of this notional value.
The changes to ICE Clear Europe's Clearing Member fee caps for the
Contracts are intended to be consistent with parallel changes being
made by the relevant exchange on which the Contracts are listed, namely
IFEU. The Exchange has determined that it would be appropriate to raise
the fee caps related to exchange fees for the Contracts, as the
existing fee caps are low in notional terms compared to the size of
trades in the Contracts and do not reflect the risks and costs that
both the Exchange and the Clearing House take on by facilitating this
business. These changes result from IFEU's annual review of fees for
all of its Equity Derivative products and, with regards to these
specific products, the fee caps have not changed since the predecessor
LIFFE exchange was acquired 6 years ago as part of ICE's acquisition of
the New York Stock Exchange. ICE Clear Europe also notes that in the
case of the UK Standard Stock Options, raising the fee caps may also
incentivise the use of the Central Limit Order Book instead of block
transactions.
Please find a breakdown of the existing trading/clearing fee
structure and the proposed new fee structure below (changes highlighted
in red) as per Exhibit 5. There are two fee structures for the
Contracts, the difference between them being that if a Clearing Member
meets the applicable minimum volume threshold it can choose to have the
trade details published with a 15 minute delay post-trade which
involves slightly higher fees than the standard fees associated with
trades published as soon as they are matched.
[[Page 15001]]
[GRAPHIC] [TIFF OMITTED] TN16MR20.000
(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. ICE Clear
Europe's fees are imposed at the product level on a per transaction
basis (as are the applicable Exchange fees). As a result, the fees (and
fee caps) apply equally to all market participants who trade/clear the
Contracts. ICE Clear Europe continues to believe that the use of fee
caps provides appropriate incentives and rewards to market participants
for the use of the Clearing House's clearing services for the
Contracts. However, as noted above, ICE Clear Europe has not increased
the applicable fee caps since it began clearing the Contracts six years
ago, and believes that the current cap levels are too low, relative to
the observed trade sizes and activity, to properly compensate ICE Clear
Europe for the risks, costs and expenses of clearing the Contracts. ICE
Clear Europe believes that the increases in the fee caps are modest in
size in comparison to notional volume cleared and are appropriate to
compensate it for offering clearing services for the Contracts, taking
into account the investments it has made in providing its clearing
services. ICE Clear Europe has determined that the revised fee caps
will provide a more appropriate balance between the costs of clearing
and expenses incurred by ICE Clear Europe and an appropriate fee
structure for
[[Page 15002]]
market participants that takes into account their transaction volume.
As such, in ICE Clear Europe's view, the amendments are consistent with
the equitable allocation of reasonable dues, fees and other charges
among its Clearing Members and other market participants, within the
meaning of Section 17A(b)(3)(D) of the Act,\7\ and further do not
unfairly discriminate among such participants in their use of the
Clearing House, within the meaning of Section 17A(b)(3)(F) of the
Act.\8\
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\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. 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 changes would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purpose of the Act. As discussed
above, because fees are imposed on a per transaction basis at the
product level, the fee caps are applied equally to all those market
participants who trade and/or clear the Contracts. Although the
amendments may result in higher fees for particular Clearing Members
because of the higher fee caps, ICE Clear Europe believes that the new
fee caps would be set at an appropriate level to better reflect the
cost that the Clearing House takes on by facilitating the relevant
clearing services. Any such higher fees will also more closely reflect
the volume traded. ICE Clear Europe does not believe that the
amendments would adversely affect the ability of such Clearing Members
or other market participants generally to access clearing services for
the Contracts. Further, since the revised fee caps will apply to all
Clearing Members, ICE Clear Europe believes that the amendments would
not otherwise affect competition among Clearing Members, adversely
affect the market for clearing services or limit market participants'
choices for obtaining clearing services.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
Written comments relating to the proposed changes to the rules have
not been solicited or received. ICE Clear Europe will notify the
Commission of any written comments received by ICE Clear Europe.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \9\ of the Act and paragraph (f) of Rule 19b-4 \10\
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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\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 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-2020-001 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-2020-001. 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 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 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/notices/Notices.shtml?regulatoryFilings.
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-2020-001 and should be
submitted on or before April 6, 2020.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-05241 Filed 3-13-20; 8:45 am]
BILLING CODE 8011-01-P