Self-Regulatory Organizations; ICE Clear Europe Limited (“ICE Clear Europe”); Notice of Filing and Immediate Effectiveness of Proposed Rule Changes Relating to Amendments to Delivery Fees on UK Electricity Futures Contracts and Amendments to Clearing Fees of Certain Natural Gas Spot and Natural Gas Daily Futures Contracts, 44948-44950 [2020-16022]
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44948
Federal Register / Vol. 85, No. 143 / Friday, July 24, 2020 / Notices
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://
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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
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SECURITIES AND EXCHANGE
COMMISSION
CONTACT PERSON FOR MORE INFORMATION:
ICE Clear Europe Limited (‘‘ICE Clear
Europe’’) proposes rule changes relating
to (i) amendments to delivery fees on
UK electricity futures contracts and (ii)
amendments to clearing fees of certain
natural gas spot and natural gas daily
futures contracts. The proposed
amendments do not involve any
changes to the ICE Clear Europe
Clearing Rules or Procedures.5
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
Dated: July 22, 2020.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2020–16217 Filed 7–22–20; 4:15 pm]
BILLING CODE 8011–01–P
[Release No. 34–89351; File No. SR–ICEEU–
2020–011]
Self-Regulatory Organizations; ICE
Clear Europe Limited (‘‘ICE Clear
Europe’’); Notice of Filing and
Immediate Effectiveness of Proposed
Rule Changes Relating to
Amendments to Delivery Fees on UK
Electricity Futures Contracts and
Amendments to Clearing Fees of
Certain Natural Gas Spot and Natural
Gas Daily Futures Contracts
July 20, 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 July 15,
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.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
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 (i)
reduce the delivery fees associated with
UK electricity futures to better reflect
the actual variable cost charged by the
transmission system operator through
Elexon; 6 and (ii) increase exchange and
clearing fees in combination with
removing the cash settlement and
delivery charges for a number of natural
gas spot and natural gas daily futures
contracts. Attached as Exhibit 5 is an
attachment containing tables listing the
new fee schedules and a Circular in
advance of the proposed effective date.
The new fees are intended to come into
effect on 01 August 2020 subject to
regulatory approval. The proposed
revisions to the fees are described in
detail as follows.
The fee currently charged for the
delivery of the UK electricity futures
cleared by ICE Clear Europe
(GBP0.00450/MWh) is nine times higher
than the actual variable costs for the
delivery service provided by the
transmissions system operator through
Elexon (GBP0.00050/MWh).
Accordingly, ICE Clear Europe is
proposing to decrease the delivery fee
for the following products:
Product name
Product name
Type
Trading venue
(MIC)
Clearing venue
UBL ................
UPL ................
UK Base Electricity Future (Gregorian) .................................
UK Peak Electricity Future (Gregorian) .................................
Daily Future ...........................
Daily Future ...........................
IFEU ...............
IFEU ...............
ICEU.
ICEU.
jbell on DSKJLSW7X2PROD with NOTICES
Please see fee schedule and proposed
change below:
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 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.
6 Elexon is known as the balance and settlement
code company for the UK electricity market and is
2 17
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20:45 Jul 23, 2020
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PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
responsible for processing payments between
generators and suppliers after comparing the
amount they said they would consume with actual
volumes (https://www.elexon.co.uk/).
E:\FR\FM\24JYN1.SGM
24JYN1
44949
Federal Register / Vol. 85, No. 143 / Friday, July 24, 2020 / Notices
Fee type
Trade type
Exchange fee ..................
Clearing fee .....................
Exchange fee ..................
Clearing fee .....................
Cash settlement ..............
Deliveries .........................
EFP/EFS/Block ...............
EFP/EFS/Block ...............
Futures ............................
Futures ............................
.........................................
.........................................
The proposed changes to ICE Clear
Europe’s exchange and clearing fees in
combination with removing the cash
Current fee
Proposed fee
0.00050
0.00450
0.00150
0.00350
n/a
0.00450.
0.00050
0.00450
0.00150
0.00350
n/a
0.00050
Currency
GBP
GBP
GBP
GBP
GBP
GBP
UoM
.................................
.................................
.................................
.................................
.................................
.................................
MWh.
MWh.
MWh.
MWh.
MWh.
MWh.
settlement and delivery charges will
apply to the following products:
Product name
Product name
Type
Trading venue
(MIC)
Clearing venue
TFE ................
NBD ...............
EZH ................
EZL ................
ETT ................
ENB ...............
Dutch TTF Gas Daily Futures ................................................
UK Natural Gas Daily Future .................................................
Belgian ZTP Gas Spot ...........................................................
Belgian ZTPL Gas Spot .........................................................
TTF Gas Spot .........................................................................
UK OCM Gas Spot .................................................................
Daily Future ...........................
Daily Future ...........................
Spot ........................................
Spot ........................................
Spot ........................................
Spot ........................................
NDEX .............
IFEU ...............
NDXS .............
NDXS .............
NDXS .............
NDCM ............
ICEU.
ICEU.
ICEU.
ICEU.
ICEU.
ICEU.
The proposal, which follows
consultation with market participants,
involves removing the cash settlement
and delivery charges for these contracts
and increasing the exchange and
clearing fees (whilst maintaining the
existing ratio between execution and
clearing).
The table below sets out the current
fees:
Current Fees
Fees
Trade type
NDXS
NDXS
NDCM
NDCM
08–18
18–08
08–18
18–08
NDEX
IFEU
EUR/MWh
Exchange fee ........
Clearing fee ..........
Exchange fee ........
Clearing fee ..........
Cash settlement ....
Deliveries ..............
EFP/EFS/Block .....
EFP/EFS/Block .....
Futures ..................
Futures ..................
...............................
...............................
0.00038
0.00337
0.00113
0.00262
n/a
0.00200
n/a
n/a
0.00113
0.00262
n/a
n/a
GBPp/therm
n/a
n/a
0.00375
0.00750
n/a
n/a
n/a
n/a
0.00100
0.00200
n/a
n/a
n/a
n/a
0.00300
0.00600
n/a
n/a
0.00025
0.00225
0.00080
0.00170
0.00050
0.00500
The table below sets out the proposed
changes to the fees (with changes in
italics for ease of review):
Proposed Fees
Fees
Trade type
NDXS
NDXS
NDCM
NDCM
08–18
18–08
08–18
18–08
NDEX
IFEU
EUR/MWh
jbell on DSKJLSW7X2PROD with NOTICES
Exchange fee ........
Clearing fee ..........
Exchange fee ........
Clearing fee ..........
Cash settlement ....
Deliveries ..............
EFP/EFS/Block .....
EFP/EFS/Block .....
Futures ..................
Futures ..................
...............................
...............................
0.00125
0.01125
0.00417
0.00833
n/a
n/a
Please note that the fees on the
website are in GBP/lot (=1,000 therms),
whilst the fees in the filing are equal to
1/10 of this as are expressed in GBPp
(pence)/therm.
n/a
n/a
0.00417
0.00833
n/a
n/a
GBPp/therm
n/a
n/a
0.00833
0.01667
n/a
n/a
(b) Statutory Basis
ICE Clear Europe believes that the
proposed rule changes are consistent
with the requirements of the Act,
n/a
n/a
0.00167
0.00333
n/a
n/a
20:45 Jul 23, 2020
Jkt 250001
PO 00000
Frm 00102
Fmt 4703
Sfmt 4703
0.00050
0.00450
0.00170
0.00330
n/a
n/a
including Section 17A of the Act 7 and
regulations thereunder applicable to it.
ICE Clear Europe’s fees are imposed at
the product level on a per transaction
7 15
VerDate Sep<11>2014
n/a
n/a
0.00333
0.00667
n/a
n/a
E:\FR\FM\24JYN1.SGM
U.S.C. 78q–1.
24JYN1
44950
Federal Register / Vol. 85, No. 143 / Friday, July 24, 2020 / Notices
basis (as are the applicable Exchange
fees). As a result, the fees apply equally
to all market participants who trade/
clear the Contracts. ICE Clear Europe
believes that the changes in fees
provides appropriate incentives and
rewards to market participants for the
use of the Clearing House’s clearing
services for the Contracts. ICE Clear
Europe believes that the current
delivery fee in relation to UK electricity
contracts could better reflect the actual
variable cost charged by the
transmission system operator through
Elexon, and therefore plans to reduce
the delivery fee. Following consultation
with market participants, ICE Clear
Europe also believes that the current
fees in relation to the natural gas
products should be increased, 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 fees are
relatively modest in size. ICE Clear
Europe has determined that the revised
fees will provide a more appropriate
balance between the costs of clearing
and expenses incurred by ICE Clear
Europe. 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,8 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.9
jbell on DSKJLSW7X2PROD with NOTICES
(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 changes to the fees are applied
equally to all those market participants
who trade and/or clear the Contracts.
Although the amendments with respect
to the natural gas contracts may result
in higher fees for particular Clearing
Members because of the higher fee on
specific products, ICE Clear Europe
believes that the new fees would be set
at an appropriate level to better reflect
the cost that the Clearing House takes on
8 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.’’
9 15 U.S.C. 78q–1(b)(3)(F).
VerDate Sep<11>2014
20:45 Jul 23, 2020
Jkt 250001
by facilitating the relevant clearing
services. 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 fees will apply to all
Clearing Members that clear the
products, 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) 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.
IV. Solicitation of Comments
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICEEU–2020–011. 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–2020–011
and should be submitted on or before
August 14, 2020.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Assistant Secretary.
Electronic Comments
[FR Doc. 2020–16022 Filed 7–23–20; 8:45 am]
• 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–2020–011 on the subject line.
BILLING CODE 8011–01–P
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
PO 00000
10 15
11 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00103
Fmt 4703
Sfmt 9990
12 17
E:\FR\FM\24JYN1.SGM
CFR 200.30–3(a)(12).
24JYN1
]]>Agencies
[Federal Register Volume 85, Number 143 (Friday, July 24, 2020)]
[Notices]
[Pages 44948-44950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16022]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-89351; File No. SR-ICEEU-2020-011]
Self-Regulatory Organizations; ICE Clear Europe Limited (``ICE
Clear Europe''); Notice of Filing and Immediate Effectiveness of
Proposed Rule Changes Relating to Amendments to Delivery Fees on UK
Electricity Futures Contracts and Amendments to Clearing Fees of
Certain Natural Gas Spot and Natural Gas Daily Futures Contracts
July 20, 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 July 15, 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 (i) amendments to delivery fees on UK electricity
futures contracts and (ii) amendments to clearing fees of certain
natural gas spot and natural gas daily futures contracts. The proposed
amendments 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
(i) reduce the delivery fees associated with UK electricity futures to
better reflect the actual variable cost charged by the transmission
system operator through Elexon; \6\ and (ii) increase exchange and
clearing fees in combination with removing the cash settlement and
delivery charges for a number of natural gas spot and natural gas daily
futures contracts. Attached as Exhibit 5 is an attachment containing
tables listing the new fee schedules and a Circular in advance of the
proposed effective date. The new fees are intended to come into effect
on 01 August 2020 subject to regulatory approval. The proposed
revisions to the fees are described in detail as follows.
---------------------------------------------------------------------------
\6\ Elexon is known as the balance and settlement code company
for the UK electricity market and is responsible for processing
payments between generators and suppliers after comparing the amount
they said they would consume with actual volumes (https://www.elexon.co.uk/).
---------------------------------------------------------------------------
The fee currently charged for the delivery of the UK electricity
futures cleared by ICE Clear Europe (GBP0.00450/MWh) is nine times
higher than the actual variable costs for the delivery service provided
by the transmissions system operator through Elexon (GBP0.00050/MWh).
Accordingly, ICE Clear Europe is proposing to decrease the delivery fee
for the following products:
----------------------------------------------------------------------------------------------------------------
Trading venue
Product name Product name Type (MIC) Clearing venue
----------------------------------------------------------------------------------------------------------------
UBL............................ UK Base Electricity Daily Future..... IFEU............. ICEU.
Future (Gregorian).
UPL............................ UK Peak Electricity Daily Future..... IFEU............. ICEU.
Future (Gregorian).
----------------------------------------------------------------------------------------------------------------
Please see fee schedule and proposed change below:
[[Page 44949]]
----------------------------------------------------------------------------------------------------------------
Fee type Trade type Current fee Proposed fee Currency UoM
----------------------------------------------------------------------------------------------------------------
Exchange fee................. EFP/EFS/Block.. 0.00050 0.00050 GBP............ MWh.
Clearing fee................. EFP/EFS/Block.. 0.00450 0.00450 GBP............ MWh.
Exchange fee................. Futures........ 0.00150 0.00150 GBP............ MWh.
Clearing fee................. Futures........ 0.00350 0.00350 GBP............ MWh.
Cash settlement.............. ............... n/a n/a GBP............ MWh.
Deliveries................... ............... 0.00450. 0.00050 GBP............ MWh.
----------------------------------------------------------------------------------------------------------------
The proposed changes to ICE Clear Europe's exchange and clearing
fees in combination with removing the cash settlement and delivery
charges will apply to the following products:
----------------------------------------------------------------------------------------------------------------
Trading venue
Product name Product name Type (MIC) Clearing venue
----------------------------------------------------------------------------------------------------------------
TFE............................ Dutch TTF Gas Daily Daily Future..... NDEX............. ICEU.
Futures.
NBD............................ UK Natural Gas Daily Daily Future..... IFEU............. ICEU.
Future.
EZH............................ Belgian ZTP Gas Spot.. Spot............. NDXS............. ICEU.
EZL............................ Belgian ZTPL Gas Spot. Spot............. NDXS............. ICEU.
ETT............................ TTF Gas Spot.......... Spot............. NDXS............. ICEU.
ENB............................ UK OCM Gas Spot....... Spot............. NDCM............. ICEU.
----------------------------------------------------------------------------------------------------------------
The proposal, which follows consultation with market participants,
involves removing the cash settlement and delivery charges for these
contracts and increasing the exchange and clearing fees (whilst
maintaining the existing ratio between execution and clearing).
The table below sets out the current fees:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Current Fees
-----------------------------------------------------------------------------------------------
Fees Trade type NDXS NDXS NDCM NDCM
NDEX ---------------------------------------------------------------- IFEU
08-18 18-08 08-18 18-08
--------------------------------------------------------------------------------------------------------------------------------------------------------
EUR/MWh
GBPp/therm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exchange fee...................... EFP/EFS/Block....... 0.00038 n/a n/a n/a n/a 0.00025
Clearing fee...................... EFP/EFS/Block....... 0.00337 n/a n/a n/a n/a 0.00225
Exchange fee...................... Futures............. 0.00113 0.00113 0.00375 0.00100 0.00300 0.00080
Clearing fee...................... Futures............. 0.00262 0.00262 0.00750 0.00200 0.00600 0.00170
Cash settlement................... .................... n/a n/a n/a n/a n/a 0.00050
Deliveries........................ .................... 0.00200 n/a n/a n/a n/a 0.00500
--------------------------------------------------------------------------------------------------------------------------------------------------------
The table below sets out the proposed changes to the fees (with
changes in italics for ease of review):
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed Fees
-----------------------------------------------------------------------------------------------
Fees Trade type NDXS NDXS NDCM NDCM
NDEX ---------------------------------------------------------------- IFEU
08-18 18-08 08-18 18-08
--------------------------------------------------------------------------------------------------------------------------------------------------------
EUR/MWh
GBPp/therm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exchange fee...................... EFP/EFS/Block....... 0.00125 n/a n/a n/a n/a 0.00050
Clearing fee...................... EFP/EFS/Block....... 0.01125 n/a n/a n/a n/a 0.00450
Exchange fee...................... Futures............. 0.00417 0.00417 0.00833 0.00167 0.00333 0.00170
Clearing fee...................... Futures............. 0.00833 0.00833 0.01667 0.00333 0.00667 0.00330
Cash settlement................... .................... n/a n/a n/a n/a n/a n/a
Deliveries........................ .................... n/a n/a n/a n/a n/a n/a
--------------------------------------------------------------------------------------------------------------------------------------------------------
Please note that the fees on the website are in GBP/lot (=1,000
therms), whilst the fees in the filing are equal to 1/10 of this as are
expressed in GBPp (pence)/therm.
(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 \7\ and regulations thereunder applicable to it. ICE Clear
Europe's fees are imposed at the product level on a per transaction
[[Page 44950]]
basis (as are the applicable Exchange fees). As a result, the fees
apply equally to all market participants who trade/clear the Contracts.
ICE Clear Europe believes that the changes in fees provides appropriate
incentives and rewards to market participants for the use of the
Clearing House's clearing services for the Contracts. ICE Clear Europe
believes that the current delivery fee in relation to UK electricity
contracts could better reflect the actual variable cost charged by the
transmission system operator through Elexon, and therefore plans to
reduce the delivery fee. Following consultation with market
participants, ICE Clear Europe also believes that the current fees in
relation to the natural gas products should be increased, 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 fees are relatively modest in size. ICE Clear Europe has determined
that the revised fees will provide a more appropriate balance between
the costs of clearing and expenses incurred by ICE Clear Europe. 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,\8\ 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.\9\
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\7\ 15 U.S.C. 78q-1.
\8\ 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.''
\9\ 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 changes to the fees are applied equally to all those
market participants who trade and/or clear the Contracts. Although the
amendments with respect to the natural gas contracts may result in
higher fees for particular Clearing Members because of the higher fee
on specific products, ICE Clear Europe believes that the new fees would
be set at an appropriate level to better reflect the cost that the
Clearing House takes on by facilitating the relevant clearing services.
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 fees will apply to all Clearing Members that
clear the products, 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) \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-2020-011 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-2020-011. 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-2020-011 and should be submitted on or before August 14, 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. 2020-16022 Filed 7-23-20; 8:45 am]
BILLING CODE 8011-01-P
