Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Partial Amendment No. 1, Relating to ICC's Fee Schedule, 78157-78159 [2020-26595]

Download as PDF Federal Register / Vol. 85, No. 233 / Thursday, December 3, 2020 / Notices 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 LCH SA and on LCH SA’s website at: https://www.lch.com/ resources/rulesand-regulations/ proposed-rule-changes-0. 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–LCH SA–2020–005 and should be submitted on or before December 24, 2020. khammond on DSKJM1Z7X2PROD with NOTICES V. Accelerated Approval of the Proposed Rule Change, as Modified by Partial Amendment No. 1 The Commission finds good cause, pursuant to Section 19(b)(2) of the Act,25 to approve the proposed rule change prior to the 30th day after the date of publication of Partial Amendment No. 1 in the Federal Register. As discussed above, Partial Amendment No. 1 amends the Reference Guide: CDS Margin Framework to reflect all of the changes discussed in this Order. By updating the Reference Guide: CDS Margin Framework to reflect all of the changes being made, Partial Amendment No. 1 ensures that the exhibit 5C accurately reflects all intended rule changes and is designed, in general, to protect investors and the public interest, consistent with Section 17A(b)(3)(F) of the Act. Accordingly, the Commission finds good cause for approving the proposed rule change, as modified by Partial Amendment No. 1, on an accelerated basis, pursuant to Section 19(b)(2) of the Exchange Act.26 VI. 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 25 15 26 15 U.S.C. 78s(b)(2). U.S.C. 78s(b)(2). VerDate Sep<11>2014 19:48 Dec 02, 2020 Jkt 253001 Section 17A(b)(3)(F) of the Act 27 and Rule 17Ad–22(e)(6)(i) thereunder.28 It is therefore ordered pursuant to Section 19(b)(2) of the Act 29 that the proposed rule change, as modified by Partial Amendment No. 1 (SR–LCH SA– 2020–005), be, and hereby is, approved.30 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.31 J. Matthew DeLesDernier, Assistant Secretary. 78157 77) was deemed to have been approved by the Commission. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.5 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–26596 Filed 12–2–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [FR Doc. 2020–26597 Filed 12–2–20; 8:45 am] BILLING CODE 8011–01–P [Release No. 34–90524; File No. SR–ICC– 2020–013] SECURITIES AND EXCHANGE COMMISSION Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Partial Amendment No. 1, Relating to ICC’s Fee Schedule [Release No. 34–90526; File No. SR–NYSE– 2020–77] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Deemed Approval of a Proposed Rule Change To Adopt Rule 8.601 (Active Proxy Portfolio Shares) and Rule 8.900 (Managed Portfolio Shares), Amend the Preamble to Rule 8P, and Amend Section 302.00 of the Listed Company Manual November 27, 2020. On September 22, 2020, New York Stock Exchange LLC filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt Rule 8.601 (Active Proxy Portfolio Shares) and Rule 8.900 (Managed Portfolio Shares), amend the preamble to Rule 8P, and amend Section 302.00 of the Listed Company Manual to accommodate the listing of Active Proxy Portfolio Shares and Managed Portfolio Shares. The proposed rule change was published for comment in the Federal Register on October 9, 2020.3 The Commission received no comment letters on the proposed rule change. As of November 23, 2020, pursuant to Section 19(b)(2)(D) of the Act,4 the proposed rule change (SR–NYSE–2020– U.S.C. 78q–1(b)(3)(F). CFR 240.17Ad–22(e)(6)(i). 29 15 U.S.C. 78s(b)(2). 30 In approving the proposed rule change, the Commission considered the proposal’s impact on efficiency, competition, and capital formation. 15 U.S.C. 78c(f). 31 17 CFR 200.30–3(a)(12). 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 See Securities Exchange Act Release No. 90091 (Oct. 5, 2020), 85 FR 64194. 4 15 U.S.C. 78s(b)(2)(D). November 27, 2020. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 1 and Rule 19b–4,2 notice is hereby given that on November 16, 2020, ICE Clear Credit LLC (‘‘ICC’’) filed with the Securities and Exchange Commission the proposed rule change as described in Items I, II, and III below, which Items have been prepared primarily by ICC. On November 25, 2020, ICC filed Partial Amendment No. 1 to the proposed rule change.3 ICC filed the proposed rule change pursuant Section 19(b)(3)(A) of the Act 4 and Rule 19b–4(f)(2) thereunder,5 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, as modified by Partial Amendment No. 1 (hereinafter 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 modify ICC’s fee schedule to introduce two credit default index swaption (‘‘Index Swaption’’) volume incentive programs. 27 15 28 17 PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 5 17 CFR 200.30–3(a)(12). U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. 3 In Partial Amendment No. 1 to the proposed rule change, ICC provided additional details and analyses surrounding the proposed rule change in the form of a confidential Exhibit 3. Partial Amendment No. 1 did not make any changes to the substance of the filing or the text of the proposed rule change. 4 15 U.S.C. 78s(b)(3)(A). 5 17 CFR 240.19b–4(f)(2). 1 15 E:\FR\FM\03DEN1.SGM 03DEN1 78158 Federal Register / Vol. 85, No. 233 / Thursday, December 3, 2020 / Notices These revisions do not require any changes to the ICC 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, ICC 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. ICC has prepared summaries, set forth in sections (A), (B), and (C) below, of the most significant aspects of these statements. (A) Clearing Agency’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change khammond on DSKJM1Z7X2PROD with NOTICES (a) Purpose The proposed changes are intended to modify ICE Clear Credit’s fee schedule to introduce two Index Swaption volume incentive programs for house origin Index Swaption transactions. Pursuant to an Index Swaption, one party (the ‘‘Swaption Buyer’’) has the right (but not the obligation) to cause the other party (the ‘‘Swaption Seller’’) to enter into an index credit default swap transaction at a pre-determined strike price on a specified expiration date on specified terms.6 In the case of Index Swaptions that may be cleared by ICC, the underlying index credit default swap is limited to certain CDX and iTraxx Europe index credit default swaps that are accepted for clearing by ICC, and which would be automatically cleared by ICC upon exercise of the Index Swaption by the Swaption Buyer in accordance with its terms.7 The proposed changes are described in detail as follows. ICC maintains a Clearing Participant (‘‘CP’’) fee schedule 8 that is publicly available on its website, which ICC proposes to update in connection with the proposed volume incentive 6 ICC previously filed with the Commission changes to certain other policies and procedures related to clearing Index Swaptions (the ‘‘Swaption Rule Filings’’). See the Swaption Rule Filings for additional details. SEC Release No. 34–87297 (October 15, 2019) (approval), 84 FR 56270 (October 21, 2019) (SR–ICC–2019–007); SEC Release No. 34– 89142 (June 24, 2020) (approval), 85 FR 39226 (June 30, 2020) (SR–ICC–2020–002); SEC Release No. 34– 89436 (July 31, 2020) (approval), 85 FR 47827 (August 6, 2020) (SR–ICC–2020–008); SEC Release No. 34–89948 (September 22, 2020) (approval), 85 FR 60845 (September 28, 2020) (SR–ICC–2020– 010). 7 Index Swaptions are also referred to herein and in the Swaption Rule Filings as ‘‘index options’’ or ‘‘index CDS options’’, or in similar terms. 8 CP fee details available at: https:// www.theice.com/publicdocs/clear_credit/ICE_ Clear_Credit_Fees_Clearing_Participant.pdf. VerDate Sep<11>2014 19:48 Dec 02, 2020 Jkt 253001 programs. Currently, clearing fees are due by CPs in accordance with the product, amount and currency set out in the fee schedule. ICC proposes to amend this fee schedule to include details on the volume incentive programs, subject to any regulatory review or approval process. ICC previously filed with the Commission the relevant clearing fees for Index Swaptions 9 and further proposes to amend the CP fee schedule to introduce the volume incentive programs for house origin Index Swaption transactions. Under the amended fee schedule, the proposed Standard Program automatically, and without further action by CPs, applies to CPs and provides a tiered discount schedule based on USD equivalent, nondiscounted Index Swaption fees billed since the start of the year (‘‘Billed Fees’’). The first 300,000 of Billed Fees are not discounted, a 10% discount is provided for the second 300,000 of Billed Fees, a 20% discount is provided for the third 300,000 of Billed Fees, and a 30% discount is provided for all cleared Index Swaptions above that level. As an alternative to the Standard Program, CPs may elect to participate in the annual Prepaid Program. For calendar year 2021, the proposed Prepaid Program election deadline is January 25, 2021 and requires an upfront payment of $750,000 by February 1, 2021. Index Swaption fees are $2/million or Ö2/million, and the upfront payment is applied toward the first $750,000 of Index Swaption clearing fees due in 2021. The discount or prepaid fee schedule would be applied at the time of invoice. (b) Statutory Basis ICC believes that the proposed rule change is consistent with the requirements of the Act, including Section 17A of the Act 10 and the regulations thereunder applicable to it. More specifically, the proposed rule change establishes or changes a member due, fee or other charge imposed by ICC under Section 19(b)(3)(A)(ii) of the Act 11 and Rule 19b–4(f)(2) 12 thereunder. ICC believes the proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to ICC, in particular, to Section 17A(b)(3)(D),13 which requires that the rules of the clearing agency provide for 9 SEC Release No. 34–90299 (October 30, 2020) (notice), 85 FR 70700 (November 5, 2020) (SR–ICC– 2020–012). 10 15 U.S.C. 78q–1. 11 15 U.S.C. 78s(b)(3)(A)(ii). 12 17 CFR 240.19b–4(f)(2). 13 15 U.S.C. 78q–1(b)(3)(D). PO 00000 Frm 00046 Fmt 4703 Sfmt 4703 the equitable allocation of reasonable dues, fees, and other charges among its participants. ICC believes that the proposed fee discounts for house origin Index Swaption transactions have been set at an appropriate level. In ICC’s view, the proposed fees are reasonable under each proposed volume incentive program as the discounts correspond with anticipated volumes, costs and expenses, and revenues under each program, and they consider current market activity as well as anticipated market activity with respect to clearing house origin Index Swaption transactions at ICC. Namely, in determining the appropriate discount level and program structure, ICC discussed the proposed volume incentive programs with its Board (who approved the programs and discounts) and took into account factors such as anticipated volume, revenue, expenses, and CP market participation in this clearing service, including based on different fee levels. More specifically, the proposed discounts are associated with anticipated volumes via the tiered discount schedule in the Standard Program and the upfront payment applied toward clearing fees in the Prepaid Program, and are designed to encourage CP market participation to bring increased volume to grow the clearing service while properly compensating ICC for the risks, costs and expenses of clearing house origin Index Swaption transactions. Moreover, the proposed fee changes will apply equally to all market participants clearing house origin Index Swaption transactions. Namely, the Standard Program automatically, and without further action by CPs, applies to all CPs. As an alternative to the Standard Program, any CP may elect to participate in the annual Prepaid Program, which requires election and an upfront payment by specified dates. Therefore, the proposed rule change provides for the equitable allocation of reasonable dues, fees and other charges among participants, within the meaning of Section 17A(b)(3)(D) of the Act.14 ICC therefore believes that the proposed rule change is consistent with the requirements of Section 17A of the Act 15 and the regulations thereunder applicable to it and is appropriately filed pursuant to Section 19(b)(3)(A) of the Act 16 and paragraph (f)(2) of Rule 19b–4 17 thereunder. 14 Id. 15 15 U.S.C. 78q–1. U.S.C. 78s(b)(3)(A). 17 17 CFR 240.19b–4(f)(2). 16 15 E:\FR\FM\03DEN1.SGM 03DEN1 Federal Register / Vol. 85, No. 233 / Thursday, December 3, 2020 / Notices (B) Clearing Agency’s Statement on Burden on Competition ICC does not believe the proposed rule change 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, the proposed changes modify ICC’s fee schedule to introduce two volume incentive programs for house origin Index Swaption transactions and will apply uniformly across all market participants clearing house origin Index Swaption transactions. The implementation of such changes does not preclude other market participants from offering similar incentive programs. Moreover, ICC does not believe that the amendments would adversely affect the ability of market participants to access clearing services. Accordingly, ICC does not believe the amendments impose any burden on competition not necessary or appropriate in furtherance of the purpose of the Act. (C) Clearing Agency’s Statement on Comments on the Proposed Rule Change Received From Members, Participants or Others Written comments relating to the proposed rule change have not been solicited or received. ICC will notify the Commission of any written comments received by ICC. khammond on DSKJM1Z7X2PROD with NOTICES 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) of the Act 18 and paragraph (f) of Rule 19b–4 19 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 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 18 15 19 17 19:48 Dec 02, 2020 Paper Comments Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. All submissions should refer to File Number SR–ICC–2020–013. 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 Credit and on ICE Clear Credit’s website at https:// www.theice.com/clear-credit/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–ICC–2020–013 and should be submitted on or before December 24, 2020. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.20 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–26595 Filed 12–2–20; 8:45 am] BILLING CODE 8011–01–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration [Docket No. FAA–2020–1130; Notice of Availability Docket No. 20–ANE–6] Notice of Availability of Categorical Exclusion and Record of Decision (CATEX/ROD) for Boston Harbor Seaplane Operations, MA Federal Aviation Administration, (FAA), DOT. AGENCY: ACTION: Notice of availability. The FAA, Eastern Service Center is issuing this notice to advise the public of the availability of the Categorical Exclusion/Record of Decision (CATEX/ROD) for the Boston Harbor Seaplane Operations. The FAA reviewed the action and determined it to be categorically excluded from further environmental review. SUMMARY: Mr. Andrew Pieroni, Federal Aviation Administration, Operations Support Group, Eastern Service Center, 1701 Columbia Avenue, College Park, Georgia 30337, (404) 305–5586. FOR FURTHER INFORMATION CONTACT: The Federal Aviation Administration (FAA) proposes to implement a Letter of Agreement (LOA) between Boston Airport Traffic Control Tower (BOS ATCT), Boston Consolidated Terminal Radar Approach Control (A90) and Tailwind Air Service for seaplane operations in the Boston, Massachusetts Inner Harbor. This proposed LOA would ensure standardized, safe and deconflicted seaplane operations in the Boston, Massachusetts Inner Harbor from BOS ATCT operations and allows for efficient airspace operations in the General Edward Lawrence Logan International Airport (BOS) Class B airspace. The proposed VFR handling of seaplane arrivals and departures will enhance safety and minimize delays for aircraft at BOS. The FAA reviewed the action and determined it to be categorically excluded from further environmental review according to FAA Order 1050.1F, Environmental Impacts: Policies and Procedures. The applicable categorical exclusion is § 5–6.S(i.). SUPPLEMENTARY INFORMATION: Issued in College Park, Georgia, on November 24, 2020. Andrew Pieroni, Environmental Protection Specialist, Operations Support Group, Eastern Service Center, Air Traffic Organization. [FR Doc. 2020–26603 Filed 12–2–20; 8:45 am] U.S.C. 78s(b)(3)(A). CFR 240.19b–4(f)(2). VerDate Sep<11>2014 • Send an email to rule-comments@ sec.gov. Please include File Number SR– ICC–2020–013 on the subject line. 78159 20 17 Jkt 253001 PO 00000 CFR 200.30–3(a)(12). Frm 00047 Fmt 4703 Sfmt 9990 BILLING CODE 4910–13–P E:\FR\FM\03DEN1.SGM 03DEN1

Agencies

[Federal Register Volume 85, Number 233 (Thursday, December 3, 2020)]
[Notices]
[Pages 78157-78159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26595]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90524; File No. SR-ICC-2020-013]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing and Immediate Effectiveness of Proposed Rule Change, as Modified 
by Partial Amendment No. 1, Relating to ICC's Fee Schedule

November 27, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
\1\ and Rule 19b-4,\2\ notice is hereby given that on November 16, 
2020, ICE Clear Credit LLC (``ICC'') filed with the Securities and 
Exchange Commission the proposed rule change as described in Items I, 
II, and III below, which Items have been prepared primarily by ICC. On 
November 25, 2020, ICC filed Partial Amendment No. 1 to the proposed 
rule change.\3\ ICC filed the proposed rule change pursuant Section 
19(b)(3)(A) of the Act \4\ and Rule 19b-4(f)(2) thereunder,\5\ 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, as modified by Partial 
Amendment No. 1 (hereinafter the ``proposed rule change''), from 
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Partial Amendment No. 1 to the proposed rule change, ICC 
provided additional details and analyses surrounding the proposed 
rule change in the form of a confidential Exhibit 3. Partial 
Amendment No. 1 did not make any changes to the substance of the 
filing or the text of the proposed rule change.
    \4\ 15 U.S.C. 78s(b)(3)(A).
    \5\ 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 modify 
ICC's fee schedule to introduce two credit default index swaption 
(``Index Swaption'') volume incentive programs.

[[Page 78158]]

These revisions do not require any changes to the ICC 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, ICC 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. ICC has prepared summaries, set forth in sections (A), 
(B), and (C) below, of the most significant aspects of these 
statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

(a) Purpose
    The proposed changes are intended to modify ICE Clear Credit's fee 
schedule to introduce two Index Swaption volume incentive programs for 
house origin Index Swaption transactions. Pursuant to an Index 
Swaption, one party (the ``Swaption Buyer'') has the right (but not the 
obligation) to cause the other party (the ``Swaption Seller'') to enter 
into an index credit default swap transaction at a pre-determined 
strike price on a specified expiration date on specified terms.\6\ In 
the case of Index Swaptions that may be cleared by ICC, the underlying 
index credit default swap is limited to certain CDX and iTraxx Europe 
index credit default swaps that are accepted for clearing by ICC, and 
which would be automatically cleared by ICC upon exercise of the Index 
Swaption by the Swaption Buyer in accordance with its terms.\7\ The 
proposed changes are described in detail as follows.
---------------------------------------------------------------------------

    \6\ ICC previously filed with the Commission changes to certain 
other policies and procedures related to clearing Index Swaptions 
(the ``Swaption Rule Filings''). See the Swaption Rule Filings for 
additional details. SEC Release No. 34-87297 (October 15, 2019) 
(approval), 84 FR 56270 (October 21, 2019) (SR-ICC-2019-007); SEC 
Release No. 34-89142 (June 24, 2020) (approval), 85 FR 39226 (June 
30, 2020) (SR-ICC-2020-002); SEC Release No. 34-89436 (July 31, 
2020) (approval), 85 FR 47827 (August 6, 2020) (SR-ICC-2020-008); 
SEC Release No. 34-89948 (September 22, 2020) (approval), 85 FR 
60845 (September 28, 2020) (SR-ICC-2020-010).
    \7\ Index Swaptions are also referred to herein and in the 
Swaption Rule Filings as ``index options'' or ``index CDS options'', 
or in similar terms.
---------------------------------------------------------------------------

    ICC maintains a Clearing Participant (``CP'') fee schedule \8\ that 
is publicly available on its website, which ICC proposes to update in 
connection with the proposed volume incentive programs. Currently, 
clearing fees are due by CPs in accordance with the product, amount and 
currency set out in the fee schedule. ICC proposes to amend this fee 
schedule to include details on the volume incentive programs, subject 
to any regulatory review or approval process.
---------------------------------------------------------------------------

    \8\ CP fee details available at: https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Fees_Clearing_Participant.pdf.
---------------------------------------------------------------------------

    ICC previously filed with the Commission the relevant clearing fees 
for Index Swaptions \9\ and further proposes to amend the CP fee 
schedule to introduce the volume incentive programs for house origin 
Index Swaption transactions. Under the amended fee schedule, the 
proposed Standard Program automatically, and without further action by 
CPs, applies to CPs and provides a tiered discount schedule based on 
USD equivalent, non-discounted Index Swaption fees billed since the 
start of the year (``Billed Fees''). The first 300,000 of Billed Fees 
are not discounted, a 10% discount is provided for the second 300,000 
of Billed Fees, a 20% discount is provided for the third 300,000 of 
Billed Fees, and a 30% discount is provided for all cleared Index 
Swaptions above that level. As an alternative to the Standard Program, 
CPs may elect to participate in the annual Prepaid Program. For 
calendar year 2021, the proposed Prepaid Program election deadline is 
January 25, 2021 and requires an upfront payment of $750,000 by 
February 1, 2021. Index Swaption fees are $2/million or [euro]2/
million, and the upfront payment is applied toward the first $750,000 
of Index Swaption clearing fees due in 2021. The discount or prepaid 
fee schedule would be applied at the time of invoice.
---------------------------------------------------------------------------

    \9\ SEC Release No. 34-90299 (October 30, 2020) (notice), 85 FR 
70700 (November 5, 2020) (SR-ICC-2020-012).
---------------------------------------------------------------------------

(b) Statutory Basis
    ICC believes that the proposed rule change is consistent with the 
requirements of the Act, including Section 17A of the Act \10\ and the 
regulations thereunder applicable to it. More specifically, the 
proposed rule change establishes or changes a member due, fee or other 
charge imposed by ICC under Section 19(b)(3)(A)(ii) of the Act \11\ and 
Rule 19b-4(f)(2) \12\ thereunder. ICC believes the proposed rule change 
is consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to ICC, in particular, to Section 
17A(b)(3)(D),\13\ which requires that the rules of the clearing agency 
provide for the equitable allocation of reasonable dues, fees, and 
other charges among its participants.
---------------------------------------------------------------------------

    \10\ 15 U.S.C. 78q-1.
    \11\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \12\ 17 CFR 240.19b-4(f)(2).
    \13\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

    ICC believes that the proposed fee discounts for house origin Index 
Swaption transactions have been set at an appropriate level. In ICC's 
view, the proposed fees are reasonable under each proposed volume 
incentive program as the discounts correspond with anticipated volumes, 
costs and expenses, and revenues under each program, and they consider 
current market activity as well as anticipated market activity with 
respect to clearing house origin Index Swaption transactions at ICC. 
Namely, in determining the appropriate discount level and program 
structure, ICC discussed the proposed volume incentive programs with 
its Board (who approved the programs and discounts) and took into 
account factors such as anticipated volume, revenue, expenses, and CP 
market participation in this clearing service, including based on 
different fee levels. More specifically, the proposed discounts are 
associated with anticipated volumes via the tiered discount schedule in 
the Standard Program and the upfront payment applied toward clearing 
fees in the Prepaid Program, and are designed to encourage CP market 
participation to bring increased volume to grow the clearing service 
while properly compensating ICC for the risks, costs and expenses of 
clearing house origin Index Swaption transactions.
    Moreover, the proposed fee changes will apply equally to all market 
participants clearing house origin Index Swaption transactions. Namely, 
the Standard Program automatically, and without further action by CPs, 
applies to all CPs. As an alternative to the Standard Program, any CP 
may elect to participate in the annual Prepaid Program, which requires 
election and an upfront payment by specified dates. Therefore, the 
proposed rule change provides for the equitable allocation of 
reasonable dues, fees and other charges among participants, within the 
meaning of Section 17A(b)(3)(D) of the Act.\14\ ICC therefore believes 
that the proposed rule change is consistent with the requirements of 
Section 17A of the Act \15\ and the regulations thereunder applicable 
to it and is appropriately filed pursuant to Section 19(b)(3)(A) of the 
Act \16\ and paragraph (f)(2) of Rule 19b-4 \17\ thereunder.
---------------------------------------------------------------------------

    \14\ Id.
    \15\ 15 U.S.C. 78q-1.
    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(2).

---------------------------------------------------------------------------

[[Page 78159]]

(B) Clearing Agency's Statement on Burden on Competition

    ICC does not believe the proposed rule change 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, the proposed changes modify ICC's fee schedule to introduce two 
volume incentive programs for house origin Index Swaption transactions 
and will apply uniformly across all market participants clearing house 
origin Index Swaption transactions. The implementation of such changes 
does not preclude other market participants from offering similar 
incentive programs. Moreover, ICC does not believe that the amendments 
would adversely affect the ability of market participants to access 
clearing services. Accordingly, ICC does not believe the amendments 
impose any burden on competition not necessary or appropriate in 
furtherance of the purpose of the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants or Others

    Written comments relating to the proposed rule change have not been 
solicited or received. ICC will notify the Commission of any written 
comments received by ICC.

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) of the Act \18\ and paragraph (f) of Rule 19b-4 \19\ 
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.
---------------------------------------------------------------------------

    \18\ 15 U.S.C. 78s(b)(3)(A).
    \19\ 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 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-ICC-2020-013 on the subject line.

Paper Comments

    Send paper comments in triplicate to Secretary, Securities and 
Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-ICC-2020-013. 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 Credit and on ICE 
Clear Credit's website at https://www.theice.com/clear-credit/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-ICC-2020-013 and should be 
submitted on or before December 24, 2020.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-26595 Filed 12-2-20; 8:45 am]
BILLING CODE 8011-01-P
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