Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to the Amendments of the CDSClear Fee Grid, 2468-2472 [2021-00348]
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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
registered investment company
involved; and (c) the proposed
transaction is consistent with the
general purposes of the Act. Rule 17d–
1(b) under the Act provides that in
passing upon an application filed under
the rule, the Commission will consider
whether the participation of the
registered investment company in a
joint enterprise, joint arrangement or
profit sharing plan on the basis
proposed is consistent with the
provisions, policies and purposes of the
Act and the extent to which such
participation is on a basis different from
or less advantageous than that of the
other participants.
For the Commission, by the Division of
Investment Management, under delegated
authority.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–00330 Filed 1–11–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
The text of the proposed rule change
has been annexed as Exhibit 5 [sic].
[Release No. 34–90862; File No. SR–LCH
SA–2020–007]
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
Self-Regulatory Organizations; LCH
SA; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change Relating to the Amendments
of the CDSClear Fee Grid
January 6, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder 2
notice is hereby given that on December
31, 2020, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change described in
Items I, II, and III below, which Items
have been prepared by LCH SA. LCH SA
filed the proposed rule change pursuant
to Section 19(b)(3)(A) of the Act,3 and
Rule 19b–4(f)(2) 4 thereunder, so that the
proposed rule change was effective
upon filing with the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change is to review
and modify the current CDSClear fee
grid applied by LCH SA.
In its filing with the Commission,
LCH SA 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. LCH SA 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
1. Purpose
The purpose of the proposed fee
changes is for LCH SA CDSClear to
revise the (i) fees under the Unlimited
Tariff for General Members,5 (ii) fees for
Corporates and Financials Index and
Single Name CDS under the
Introductory Tariff for both General and
Select Members, (iii) fees set up for the
Options clearing service for both
General and Select Members and Clients
as well and introduce (iv) new fee
conditions for Affiliates clearing as
client.
LCH SA is currently applying the
below fee grid for CDSClear members:
CURRENT SELF-CLEARING TARIFF FOR CORPORATES AND FINANCIALS INDEX AND SINGLE NAME CDS
Self-clearing/variable fees
Membership
Annual fixed fee
EUR
indices
General Member—Unlimited
Tariff.
Ö 1,300,000 .................................
No Variable Fee
General Member—Introductory Tariff.
Ö200,000 if the total annual
gross notional cleared is under
Ö15 billion.
Ö3.5 Per million
gross notional
cleared.
Ö10 Per million
gross notional
cleared.
$4.5 Per million
gross notional
cleared.
$13 Per million
gross notional
cleared.
Ö400,000 if the total annual
gross notional cleared is over
Ö15 billion.
Ö250,000 if the total annual
gross notional cleared is under
Ö25 billion.
Ö450,000 if the total annual
gross notional cleared is over
Ö25 billion.
Ö3.5 Per million
gross notional
cleared.
Ö4 Per million
gross notional
cleared.
Ö10 Per million
gross notional
cleared.
Ö10 Per million
gross notional
cleared.
$4.5 Per million
gross notional
cleared.
$5 Per million
gross notional
cleared.
$13 Per million
gross notional
cleared.
$13 Per million
gross notional
cleared.
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Select Member ..
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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3 15
4 17
Jkt 253001
PO 00000
EUR
single names
USD
single names
Covers all self-clearing Corporate
and Financials Index and Single Name activity for a Clearing Member and its affiliates.
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00089
USD
indices
Fmt 4703
Cap on total annual self-clearing
fees (fixed + variable) of EUR
1,300,000 after which all further trades cleared in the calendar year are subject to a fee
holiday.
5 All capitalized terms not defined herein have
the same definition as the CDSClearing Rule Book,
Supplement or Procedures, as applicable.
Sfmt 4703
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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
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OPTIONS TARIFF INCLUDING FEE REBATE
General Member
Introductory Tariff ..................................................
Cover only one legal entity (no affiliate coverage). In-year switches are not permitted.
Clearing Fees ................................................
$15
Ö15
Ö 150k
Ö 375k
Floor on clearing fees .............................
Cap on Clearing fees .............................
Unlimited Tariff ......................................................
per million of option notional on US Indices.
per million of option notional on European Indices.
Per calendar year (no pro-rating).
Per calendar year (no pro-rating).
Cover all affiliates of a given Clearing Member Group Cover all clearing fees for Credit Option House activity for
both iTraxx and CDX.NA underlying index families. Excludes any potential future EEP usage fees. In-year
switches are not permitted.
Fixed fee (annual) ..........................................
Ö 375k Per
calendar year
(no pro-rating).
Discounted Rates * ........................................
Ö 150k if notionals cleared strictly above Ö6bn but equal to or below Ö13.5bn Ö 75k if notionals cleared strictly
above Ö13.5bn.
Ö 30k
Onboarding Fees ..................................................
(both Introductory & unlimited) .............................
One-off fee per Legal Entity under the Introductory tariff or per Clearing Member Group under
Unlimited tariff waived until 30-Apr-2020.
Select Member
Introductory Tariff ..................................................
Cover only one legal entity (no affiliate coverage)
In-year switches are not permitted.
Clearing Fees ................................................
$ 18
Ö 18
Ö 400k
Cap on Clearing fees .............................
Unlimited Tariff ......................................................
Cover all affiliates of a given Clearing Member Group. Cover all clearing fees for Credit Option House activity for
both iTraxx and CDX.NA underlying index families. Excludes any potential future EEP usage fees. In-year
switches are not permitted.
Ö 400k
Fixed fee (annual) ..........................................
Discounted Rates * ........................................
per million of option notional on US Indices.
per million of option notional on European Indices.
Per calendar year (no pro-rating).
Per calendar year (no pro-rating).
Ö 150k if notionals cleared strictly above Ö6bn but equal to or below Ö13.5bn Ö 75k if notionals cleared strictly
above Ö13.5bn.
Ö 30k
Onboarding Fees (both Introductory & unlimited)
One-off fee per Legal Entity under the Introductory tariff or per Clearing Member Group under
Unlimited tariff waived until 30-Apr-2020.
* Cumulative conditions for the Fee rebate:
(i) Application to the Unlimited Tariff only;
(ii) Application to all Clearing Members registering to the Index Swaptions clearing service (registration letter or application file signature date); and
(iii) Index Swaptions notional cleared for the determination of the discount rate to be observed from the regulatory effective date of the rebate.
Client
Clearing Fees ........................................................
$ 20
Ö 20
khammond on DSKJM1Z7X2PROD with NOTICES
As specified in the new fee grid
attached under Exhibit 5 [sic], LCH SA
is proposing to amend the CDSClear fee
grid from January 1st, 2021.
The proposed fee changes are driven
by the evolution of the CDSClear
business and arrangements.
—for the Index and Single Names: The
fee change reflects a transition to a
more matured phase of development
of the CDSClear service, and
—for the Options fee grid: The intent is
to adjust the fee conditions and rebate
to the new competitive environment
as well as encourage the development
of options clearing by clients,
—for Affiliates clearing as client, the
need to take into consideration the
evolution of the corporate structure of
dealers and the use of multiple legal
entities.
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per million of option notional on US Indices.
per million of option notional on European Indices.
(1) Change the Fees Under the
Unlimited Tariff for General Members
CDSClear currently offers an
Unlimited Tariff for General Members
that covers all self-clearing Corporate
and Financials CDS Index and Single
Names activity for a Financial Group of
a Clearing Member for an annual fixed
fee of Ö1,300,000 (no variable fees).
The proposed change consists in
increasing the annual fixed fee amount
to Ö1,350,000 per year from January 1,
2021.
(2) Change the Fees Under the
Introductory Tariff for Both General and
Select Members
(a) For General Members
As specified in the new LCH SA
CDSClear fee grid attached below in
Exhibit 5 [sic], from January 1, 2021, the
annual fixed fee under the Introductory
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
Tariff will be set for General Members
to Ö200,000 if the total annual gross
notional cleared is under Ö10bn (vs
Ö15bn today) and to Ö400,000 per year
when clearing more than Ö10bn (vs
Ö15bn today).
LCH SA is also proposing to remove
the previous annual cap on total annual
fees (fixed + variable) of Ö1,300,000
under the Introductory Tariff for
General Members.
The variable fees remain the same as
the current ones.
(b) For Select Members
From January 1, 2021, the annual
fixed fee under the Introductory Tariff
will be set for Select Members to
Ö250,000 if the total annual gross
notional cleared is under Ö20bn (vs
Ö25bn today) and to Ö450,000 per year
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12JAN1
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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Notices
for Select Members when clearing more
than Ö20bn (vs Ö25bn today).
The variable fees remain the same as
the current ones.
a Financial Group of a Clearing Member
in 2021 for the first two Clearing
Members clearing Options for at least
one Client by 31 July 2021.
(3) Revise the Fees Set Up For the
Options Clearing Service for Both
General and Select Members as Well as
Clients
(d) Options Clearing Fees for Clients
The Options clearing fee grid for
Clients is proposed to include the
following changes:
• Clients variable clearing fees for
Options decreased from Ö20/$20 to
Ö5/$5 per million of option notional
cleared
• Fee holiday for Clients clearing
Options in 2021
(a) Options Unlimited Tariff for General
and Select Members
From January 1, 2021, the annual
fixed fee covering all clearing fees for
Credit Index Options House activity for
all Affiliates of a given Financial Group
of a Clearing Member is proposed to
change from a two tier discount (the
first one if the notional cleared is
strictly above Ö6bn and the second one
if the notional cleared is strictly above
Ö13.5bn) to a single discount if the
notional cleared is strictly above Ö15bn.
The fixed fee would in the new fee grid
then be reduced from Ö375,000 to
Ö115,000 (no prorating) for General
Members and from Ö400,000 to
Ö115,000 (no prorating) for Select
Members compared to Ö150k and Ö75k
for the two tiers currently.
khammond on DSKJM1Z7X2PROD with NOTICES
(b) Options Introductory Tariff for
General and Select Members
The current Options Introductory
Tariff for both General and Select
Members covers only the legal entity
that is registering to the service.
The Options Introductory Tariff for a
General Member is proposed to be based
on the annual floor and conditions
below:
• Floor of Ö115,000 for a single entity
(vs Ö150,000 today per entity)
• Floor of Ö150,000 for 2 entities of the
same Financial Group of a Clearing
Member
• Floor of Ö190,000 for 3 or more
entities of the same Financial Group
of a Clearing Member
• Removal of the annual cap of
Ö375,000 on Options clearing fees
• Reduction of variable fees from Ö15/
$15 to Ö8/$8 per million of option
notional cleared.
The Options Introductory Tariff for a
Select Member is proposed to be based
on the conditions below:
• Reduction of variable fees from Ö18/
$18 to Ö10/$10 per million of option
notional cleared
• Removal of the annual cap on Options
clearing fees of Ö400,000
(c) Options Clearing Members (General
Members Under Unlimited or
Introductory)
LCH SA is proposing an up to
Ö200,000 fee rebate limited to the total
amount of Options clearing fees paid by
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(4) Introduction of New Fee Conditions
for Affiliates Clearing as Client
As specified in the new LCH SA
CDSClear options fee grid attached
below in Exhibit 5 [sic], LCH SA
CDSClear is proposing to offer a full
rebate on client clearing variable fees for
Affiliates of a Clearing Member that is
clearing as client of that Clearing
Member under the following conditions:
• The Clearing Member is a General
Member under the Unlimited Tariff,
• The Affiliate is a legal entity part of
the same Financial Group as the
Clearing Member,
• The rebate applies to 1 trade
account per Affiliate and for all clearing
services for which the Clearing Member
is under the Unlimited Tariff (i.e. Index
& Single Names and/or Options),
• The rebate cannot apply to any
account opened for CCM Indirect
Clients, and
• A fixed annual account fee of
Ö100,000 is charged per Affiliate of a
Clearing Member onboarded as a Client
and benefiting from the full rebate on
variable fees.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges.6
LCH SA believes that its clearing fee
change proposal is consistent with the
requirements of Section 17A of the Act 7
and the regulations thereunder
applicable to it, and in particular
provides for the equitable allocation of
reasonable fees, dues, and other charges
among clearing members and market
participants by ensuring that clearing
members and clients pay reasonable fees
and dues for the services provided by
LCH SA, within the meaning of Section
17A(b)(3)(D) of the Act.
With respect to the change of the
Index and Single Name CDS Unlimited
6 15
7 15
PO 00000
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78q–1.
Frm 00091
Fmt 4703
Sfmt 4703
Tariff for General Members, LCH SA has
determined in consultation with its
clearing members that the slight
increase in the annual fixed fee amount
for General Members covering their
Index and Single Name CDS selfclearing activity is reasonable and
appropriate as the CDSClear business is
now reaching a more mature stage in its
development and the likelihood to
onboard new General Members under
the Unlimited Tariff is small or even
negligible given the structure of the CDS
market and the limited number of
market makers in this space.
With respect to the Index and Single
Names CDS Introductory Tariffs for both
General and Select Members, both the
annual fixed fee and the variable fees
remain the same. The removal of the cap
as well as the lowering of the notional
thresholds aim at reflecting the fact that
market participants are now more
familiar with the CDSClear service as
well as their own activity in the Credit
Derivatives space:
—the removal of the cap which was
struck at the level of the fixed fee
under the Unlimited Tariff
incentivizes Clearing Members to
select the most appropriate tariff for
them at the start of the year.
—the lowering of the notional
thresholds would constitute an
increase of fees for the Members
which have cleared less than the
current threshold but more than the
new one. No member is in that
situation.
The main change in the fee grid of the
Options clearing service is the decrease
of the variable fees for General and
Select Members as well as Clients in
order to make clearing of options more
attractive for all, and in particular for
clients to begin clearing options.
Besides, and after discussing with its
Clearing Members, LCH SA has elected
to maintain a similar volume-based
discount fee structure for its Options
Unlimited Tariff for both General and
Select Members in which the cost of
clearing options decreases as more
volumes are cleared. The increase of the
notional threshold as well as of the
decrease of the discount percentage are
reflective of the growth of the Option
clearing service over the last year which
now is more broadly used by LCH SA
Clearing Members and which justifies
the increase of total fees paid by the
Clearing Members having selected this
scheme.
Consequently, the General Member
Introductory Tariff has been redesigned
to be more appropriate for smaller
Options trading members: In particular,
the decrease of the annual floor, the
E:\FR\FM\12JAN1.SGM
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introduction of 2 new levels of annual
floor depending on the number of legal
entities of a given Financial Group of a
Clearing Member joining the service as
well as the removal of the cap are meant
to ease the introduction of new
members to the Options clearing
service.
Changes following the same
principles and rationale have also been
made to the Select Members Options fee
grid to ensure a consistent access
between the 2 membership tiers.
Lastly, and in order to incentivize the
development of Options Client clearing,
LCH SA is proposing to provide the first
2 Clearing Members clearing options on
behalf of at least one of their clients, and
before 31 July 2021, with a one-off fee
rebate equal to the total amount of
Options clearing fees paid in 2021,
capped at Ö200,000, in order to mitigate
the cost associated with the systems
developments required to enable clients
to access the LCH SA Options clearing
service. The rationale to limit the
number of Clearing Members eligible to
this one-off rebate to the first two
clearing an option trade on behalf of
clients is twofold:
—Further incentivize competition
between the Clearing Members which
have an interest in building client
clearing capabilities for options by
offering a rebate substantial enough to
cover some of the build costs that will
be incurred by the Clearing Members.
—Mitigate financial risk for LCH SA by
predefining the maximum amount of
rebate it could have to pay back to its
Clearing Members as well as the
amount of the rebate they would get,
thus maintaining the attractiveness of
the rebate for them. All clearing
members will have the same
opportunity to equally benefit from
the proposed incentive rebate
according to the specified conditions.
Finally, the introduction of a specific
fee structure (full variable fee rebate
plus fixed account charge) for Affiliates
of a given Financial Group of a Clearing
Member clearing as Clients of such
Clearing Member and under a set of predefined conditions aims at offering
Financial Groups of Clearing Members
under the General Membership
Unlimited Tariff additional, fairlypriced ways for their Affiliates to gain
access to LCH SA CDSClear service.
LCH SA CDSClear has thus
determined that the proposed new fee
structure is more appropriate and takes
into account the expected volume of
transactions. All the clearing fee
conditions remain transparent and
equally applicable to any market
participant wishing to access the
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CDSClear clearing service for both Index
& Single Names as well as Options.
For all the reasons stated above, LCH
SA believes that the proposed fee rates
are reasonable and have been set up at
an appropriate level so that LCH SA can
provide the CDSClear services.
B. Clearing Agency’s Statement on
Burden on Competition
Section 17A(b)(3)(I) of the Act
requires that the rules of a clearing
agency not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.8
LCH SA does not believe that the
proposed rule change would impose any
burden on competition that are not
necessary or appropriate in furtherance
of the purposes of the Act because LCH
SA is offering the possibility for
CDSClear members and clients to get a
more attractive access to the clearing
services. It does not affect the ability of
such Clearing Members or other market
participants generally to engage in
cleared transactions or to access clearing
services especially to the clearing of
credit index swaptions that remains not
mandatory.
Additionally, the proposed volumebased discount scheme for the Options
Unlimited Tariff will be available to any
Financial Group of a Clearing Member
using CDSClear services.
Similarly, the proposed Index and
Single Names Unlimited Tariff will be
available to any Financial Group
including an entity registered as a
General Member of the CDSClear
service.
The annual fixed fee increase does not
impact any competition between
General and Select Members as the
choice of membership tier made by a
Clearing Member is mainly driven by
the material differences in the
obligations of a General Member versus
those of a Select Member (in terms of
price contribution and auction bidding
notably) which are reflected in the
tariffs available for each tier.
The rebate offered on client clearing
fees for Affiliates of a General Member
under the Unlimited Tariff relies on the
fact that should such Affiliate join as a
Clearing Member his fees would be
covered by the fixed fee of the
Unlimited Tariff whereas this wouldn’t
the [sic] case for Select Members.
More broadly, none of the proposed
changes impacts competition between
General and Select Members as they
have been designed consistently across
both tiers or are more extensions of
existing features of the current fee grid.
8 15
PO 00000
U.S.C. 78q–1(b)(3)(I).
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Further, as explained above, LCH SA
believes that the fee rates have been set
up at an appropriate level given the
costs and expenses to LCH SA in
offering the relevant clearing services.
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 but a consultation
has been conducted with and verbal
feedback sought from CDSClear
members. No comment or question has
been received following this
consultation. LCH SA will notify the
Commission of any subsequent written
comments received by LCH SA.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A)9 [sic] of
the Act and Rule 19b–4(f)(2)10 [sic]
thereunder because it establishes a fee
or other charge imposed by LCH SA on
its Clearing Members. 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
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
LCH SA–2020–007 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–LCH SA–2020–007. 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
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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 LCH SA and on LCH SA’s
website at: https://www.lch.com/
resources/rulebooks/proposed-rulechanges. 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–2020–007 and should be submitted
on or before February 2, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–00348 Filed 1–11–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–90861; File No. SR–ICEEU–
2020–018]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Partial Amendment No. 1 To
Proposed Rule Change Relating to
Amendments to the ICE Clear Europe
CDS Procedures and CDS Default
Management Policy
khammond on DSKJM1Z7X2PROD with NOTICES
January 6, 2021.
On December 14, 2020, ICE Clear
Europe Limited (‘‘ICE Clear Europe’’ or
the ‘‘Clearing House’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
9 17
CFR 200.30–3(a)(12).
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17:09 Jan 11, 2021
Jkt 253001
of 1934 (‘‘Act’’),1 and Rule 19b–4
thereunder,2 a proposed rule change to
modify its CDS Procedures and CDS
Default Management Policy related to its
CDS Default Committee. The proposed
rule change was published for comment
in the Federal Register on January 4,
2021.3 On December 31, 2020, ICE Clear
Europe filed Partial Amendment No. 1
to the proposed rule change. Pursuant to
Section 19(b)(1) of the Act 4 and Rule
19b–4 thereunder,5 the Commission is
publishing notice of this Partial
Amendment No. 1 to the proposed rule
change as described in Item I below,
which has been prepared primarily by
ICE Clear Europe. The Commission is
publishing this notice to solicit
comment on Partial Amendment No. 1
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Partial Amendment No. 1 to
the Proposed Rule Change
ICE Clear Europe submits this partial
amendment (‘‘Partial Amendment No.
1’’) to its previously submitted proposed
rule changes (the ‘‘Initial Filing’’) to
modify its CDS Procedures (the ‘‘CDS
Procedures’’ or the ‘‘Procedures’’) 6 to
update the requirements for a Clearing
Member to be approved to be a CDS
Committee-Eligible Clearing Member for
purposes of the CDS Default Committee,
as well as certain other updates and
clarifications, and to modify its CDS
Default Management Policy (the ‘‘CDS
Default Management Policy’’ or
‘‘Policy’’) to make corresponding
updates to the requirements for a
Clearing Member to be eligible to serve
on the CDS Default Committee, as well
as to provide more detail with respect
to review and testing of its default
procedures, remove appendices and
make certain other updates and
clarifications to be consistent with other
ICE Clear Europe policies. Partial
Amendment No. 1 is intended to amend
Item 3(a) of the Initial Filing to add an
explanation as to the circumstances
pursuant to which ICE Clear Europe
may permit a CDS Committee-Eligible
Clearing Member to postpone
participation in the CDS Default
Committee for a Relevant CDS Default
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Self-Regulatory Organizations; ICE Clear Europe
Limited; Notice of Filing of Proposed Rule Change
Relating to Amendments to the ICE Clear Europe
CDS Procedures and CDS Default Management
Policy, Securities Exchange Act Release No. 90806
(December 28, 2020), 86 FR 169 (January 4, 2021)
(SR–ICEEU–2020–018).
4 15 U.S.C. 78s(b)(1)
5 17 CFR 240.19b–4.
6 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
Europe Clearing Rules and the CDS Procedures.
2 17
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
Committee Period for which it is
otherwise due to take part. The text of
the proposed rule changes in the Initial
Filing is unchanged.
As described in the Initial Filing,
amendments to paragraph 5.3 of the
CDS Procedures would add that if a CDS
Committee-Eligible Clearing Member
considers that it is unable to take part
in the CDS Default Committee for the
Relevant CDS Default Committee Period
for which it is due to take part, it may
request to postpone its participation for
that period. ICE Clear Europe could, at
its discretion, approve such request. In
this Partial Amendment No. 1, ICE Clear
Europe is providing the explanation in
the paragraph below to supplement the
description of the amendment to
paragraph 5.3 of the CDS Procedures
that was provided in the Initial Filing.
In general, paragraph 5.3 is intended
to give ICE Clear Europe a degree of
flexibility in responding to a request for
postponement from a Clearing Member,
in light of the difficulty in outlining in
advance all potential scenarios where it
may be appropriate. In ICE Clear
Europe’s view, based on its experience
and discussions with Clearing Members
about service on the committee, an
acceptable excuse would most likely
relate to temporary resource constraints
at the Clearing Member. For example, if
the committee member were already
serving on the default committee of
another clearing house during the
relevant period or if a committee
member otherwise had limited staffing
resources to commit to the committee
during that period, this may be
considered satisfactory. ICE Clear
Europe would expect to discuss the
particular situation with the Clearing
Member in question and would respond
to any request for postponement to let
the Clearing Member know whether its
rationale was satisfactory. ICE Clear
Europe believes this type of flexible
approach is ultimately more favorable to
both the Clearing House and Clearing
Members than having a more rigid rule.
The purpose of the rule change as set
out in Item 3(a) of the Initial Filing is
otherwise unchanged.
II. Date of Effectiveness of the Proposed
Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
E:\FR\FM\12JAN1.SGM
12JAN1
]]>Agencies
[Federal Register Volume 86, Number 7 (Tuesday, January 12, 2021)]
[Notices]
[Pages 2468-2472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00348]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-90862; File No. SR-LCH SA-2020-007]
Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Relating to the
Amendments of the CDSClear Fee Grid
January 6, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder \2\ notice is hereby given that
on December 31, 2020, Banque Centrale de Compensation, which conducts
business under the name LCH SA (``LCH SA''), filed with the Securities
and Exchange Commission (``Commission'') the proposed rule change
described in Items I, II, and III below, which Items have been prepared
by LCH SA. LCH SA filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) \4\ thereunder, so that
the proposed rule change was effective upon filing with the Commission.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change is to review and modify the current
CDSClear fee grid applied by LCH SA.
The text of the proposed rule change has been annexed as Exhibit 5
[sic].
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, LCH SA 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. LCH SA 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
1. Purpose
The purpose of the proposed fee changes is for LCH SA CDSClear to
revise the (i) fees under the Unlimited Tariff for General Members,\5\
(ii) fees for Corporates and Financials Index and Single Name CDS under
the Introductory Tariff for both General and Select Members, (iii) fees
set up for the Options clearing service for both General and Select
Members and Clients as well and introduce (iv) new fee conditions for
Affiliates clearing as client.
---------------------------------------------------------------------------
\5\ All capitalized terms not defined herein have the same
definition as the CDSClearing Rule Book, Supplement or Procedures,
as applicable.
---------------------------------------------------------------------------
LCH SA is currently applying the below fee grid for CDSClear
members:
Current Self-Clearing Tariff for Corporates and Financials Index and Single Name CDS
--------------------------------------------------------------------------------------------------------------------------------------------------------
Self-clearing/variable fees
Membership Annual fixed fee --------------------------------------------------------------------------------
EUR indices EUR single names USD indices USD single names
--------------------------------------------------------------------------------------------------------------------------------------------------------
General Member--Unlimited Tariff [euro] 1,300,000.. No Variable Fee Covers all self-
clearing
Corporate and
Financials Index
and Single Name
activity for a
Clearing Member
and its
affiliates.
---------------------------------------------------------------------------------------------------
General Member--Introductory [euro]200,000 if [euro]3.5 Per [euro]10 Per $4.5 Per million $13 Per million Cap on total
Tariff. the total annual million gross million gross gross notional gross notional annual self-
gross notional notional cleared. notional cleared. cleared. cleared. clearing fees
cleared is under (fixed +
[euro]15 billion. variable) of EUR
1,300,000 after
which all further
trades cleared in
the calendar year
are subject to a
fee holiday.
[euro]400,000 if [euro]3.5 Per [euro]10 Per $4.5 Per million $13 Per million
the total annual million gross million gross gross notional gross notional
gross notional notional cleared. notional cleared. cleared. cleared.
cleared is over
[euro]15 billion.
Select Member................... [euro]250,000 if [euro]4 Per [euro]10 Per $5 Per million $13 Per million
the total annual million gross million gross gross notional gross notional
gross notional notional cleared. notional cleared. cleared. cleared.
cleared is under
[euro]25 billion.
[euro]450,000 if
the total annual
gross notional
cleared is over
[euro]25 billion.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 2469]]
Options Tariff Including Fee Rebate
------------------------------------------------------------------------
------------------------------------------------------------------------
General Member
------------------------------------------------------------------------
Introductory Tariff............ Cover only one legal entity (no
affiliate coverage). In-year switches
are not permitted.
----------------------------------------
Clearing Fees.............. $15 per million of option
notional on US
Indices.
[euro]15 per million of option
notional on European
Indices.
Floor on clearing fees. [euro] 150k Per calendar year (no
pro-rating).
Cap on Clearing fees... [euro] 375k Per calendar year (no
pro-rating).
----------------------------------------
Unlimited Tariff............... Cover all affiliates of a given
Clearing Member Group Cover all
clearing fees for Credit Option House
activity for both iTraxx and CDX.NA
underlying index families. Excludes any
potential future EEP usage fees. In-
year switches are not permitted.
----------------------------------------
Fixed fee (annual)......... [euro] 375k
Per calendar
year (no pro-
rating).
----------------------------------------
Discounted Rates *......... [euro] 150k if notionals cleared
strictly above [euro]6bn but equal to
or below [euro]13.5bn [euro] 75k if
notionals cleared strictly above
[euro]13.5bn.
----------------------------------------
Onboarding Fees................ [euro] 30k One-off fee per Legal
(both Introductory & unlimited) Entity under the
Introductory tariff or
per Clearing Member
Group under Unlimited
tariff waived until 30-
Apr-2020.
------------------------------------------------------------------------
Select Member
------------------------------------------------------------------------
Introductory Tariff............ Cover only one legal entity (no
affiliate coverage)
In-year switches are not permitted.
----------------------------------------
Clearing Fees.............. $ 18 per million of option
notional on US
Indices.
[euro] 18 per million of option
notional on European
Indices.
Cap on Clearing fees... [euro] 400k Per calendar year (no
pro-rating).
----------------------------------------
Unlimited Tariff............... Cover all affiliates of a given
Clearing Member Group. Cover all
clearing fees for Credit Option House
activity for both iTraxx and CDX.NA
underlying index families. Excludes any
potential future EEP usage fees. In-
year switches are not permitted.
----------------------------------------
Fixed fee (annual)......... [euro] 400k Per calendar year (no
pro-rating).
----------------------------------------
Discounted Rates *......... [euro] 150k if notionals cleared
strictly above [euro]6bn but equal to
or below [euro]13.5bn [euro] 75k if
notionals cleared strictly above
[euro]13.5bn.
----------------------------------------
Onboarding Fees (both [euro] 30k One-off fee per Legal
Introductory & unlimited). Entity under the
Introductory tariff or
per Clearing Member
Group under Unlimited
tariff waived until 30-
Apr-2020.
------------------------------------------------------------------------
* Cumulative conditions for the Fee rebate:
(i) Application to the Unlimited Tariff only;.......................
(ii) Application to all Clearing Members registering to the Index
Swaptions clearing service (registration letter or application file
signature date); and.
(iii) Index Swaptions notional cleared for the determination of the
discount rate to be observed from the regulatory effective date of
the rebate..
------------------------------------------------------------------------
Client
------------------------------------------------------------------------
Clearing Fees.................. $ 20 per million of option
notional on US
Indices.
[euro] 20 per million of option
notional on European
Indices.
------------------------------------------------------------------------
As specified in the new fee grid attached under Exhibit 5 [sic],
LCH SA is proposing to amend the CDSClear fee grid from January 1st,
2021.
The proposed fee changes are driven by the evolution of the
CDSClear business and arrangements.
--for the Index and Single Names: The fee change reflects a transition
to a more matured phase of development of the CDSClear service, and
--for the Options fee grid: The intent is to adjust the fee conditions
and rebate to the new competitive environment as well as encourage the
development of options clearing by clients,
--for Affiliates clearing as client, the need to take into
consideration the evolution of the corporate structure of dealers and
the use of multiple legal entities.
(1) Change the Fees Under the Unlimited Tariff for General Members
CDSClear currently offers an Unlimited Tariff for General Members
that covers all self-clearing Corporate and Financials CDS Index and
Single Names activity for a Financial Group of a Clearing Member for an
annual fixed fee of [euro]1,300,000 (no variable fees).
The proposed change consists in increasing the annual fixed fee
amount to [euro]1,350,000 per year from January 1, 2021.
(2) Change the Fees Under the Introductory Tariff for Both General and
Select Members
(a) For General Members
As specified in the new LCH SA CDSClear fee grid attached below in
Exhibit 5 [sic], from January 1, 2021, the annual fixed fee under the
Introductory Tariff will be set for General Members to [euro]200,000 if
the total annual gross notional cleared is under [euro]10bn (vs
[euro]15bn today) and to [euro]400,000 per year when clearing more than
[euro]10bn (vs [euro]15bn today).
LCH SA is also proposing to remove the previous annual cap on total
annual fees (fixed + variable) of [euro]1,300,000 under the
Introductory Tariff for General Members.
The variable fees remain the same as the current ones.
(b) For Select Members
From January 1, 2021, the annual fixed fee under the Introductory
Tariff will be set for Select Members to [euro]250,000 if the total
annual gross notional cleared is under [euro]20bn (vs [euro]25bn today)
and to [euro]450,000 per year
[[Page 2470]]
for Select Members when clearing more than [euro]20bn (vs [euro]25bn
today).
The variable fees remain the same as the current ones.
(3) Revise the Fees Set Up For the Options Clearing Service for Both
General and Select Members as Well as Clients
(a) Options Unlimited Tariff for General and Select Members
From January 1, 2021, the annual fixed fee covering all clearing
fees for Credit Index Options House activity for all Affiliates of a
given Financial Group of a Clearing Member is proposed to change from a
two tier discount (the first one if the notional cleared is strictly
above [euro]6bn and the second one if the notional cleared is strictly
above [euro]13.5bn) to a single discount if the notional cleared is
strictly above [euro]15bn. The fixed fee would in the new fee grid then
be reduced from [euro]375,000 to [euro]115,000 (no prorating) for
General Members and from [euro]400,000 to [euro]115,000 (no prorating)
for Select Members compared to [euro]150k and [euro]75k for the two
tiers currently.
(b) Options Introductory Tariff for General and Select Members
The current Options Introductory Tariff for both General and Select
Members covers only the legal entity that is registering to the
service.
The Options Introductory Tariff for a General Member is proposed to
be based on the annual floor and conditions below:
Floor of [euro]115,000 for a single entity (vs [euro]150,000
today per entity)
Floor of [euro]150,000 for 2 entities of the same Financial
Group of a Clearing Member
Floor of [euro]190,000 for 3 or more entities of the same
Financial Group of a Clearing Member
Removal of the annual cap of [euro]375,000 on Options clearing
fees
Reduction of variable fees from [euro]15/$15 to [euro]8/$8 per
million of option notional cleared.
The Options Introductory Tariff for a Select Member is proposed to
be based on the conditions below:
Reduction of variable fees from [euro]18/$18 to [euro]10/$10
per million of option notional cleared
Removal of the annual cap on Options clearing fees of
[euro]400,000
(c) Options Clearing Members (General Members Under Unlimited or
Introductory)
LCH SA is proposing an up to [euro]200,000 fee rebate limited to
the total amount of Options clearing fees paid by a Financial Group of
a Clearing Member in 2021 for the first two Clearing Members clearing
Options for at least one Client by 31 July 2021.
(d) Options Clearing Fees for Clients
The Options clearing fee grid for Clients is proposed to include
the following changes:
Clients variable clearing fees for Options decreased from
[euro]20/$20 to [euro]5/$5 per million of option notional cleared
Fee holiday for Clients clearing Options in 2021
(4) Introduction of New Fee Conditions for Affiliates Clearing as
Client
As specified in the new LCH SA CDSClear options fee grid attached
below in Exhibit 5 [sic], LCH SA CDSClear is proposing to offer a full
rebate on client clearing variable fees for Affiliates of a Clearing
Member that is clearing as client of that Clearing Member under the
following conditions:
The Clearing Member is a General Member under the
Unlimited Tariff,
The Affiliate is a legal entity part of the same Financial
Group as the Clearing Member,
The rebate applies to 1 trade account per Affiliate and
for all clearing services for which the Clearing Member is under the
Unlimited Tariff (i.e. Index & Single Names and/or Options),
The rebate cannot apply to any account opened for CCM
Indirect Clients, and
A fixed annual account fee of [euro]100,000 is charged per
Affiliate of a Clearing Member onboarded as a Client and benefiting
from the full rebate on variable fees.
2. Statutory Basis
Section 17A(b)(3)(D) of the Act requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges.\6\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
LCH SA believes that its clearing fee change proposal is consistent
with the requirements of Section 17A of the Act \7\ and the regulations
thereunder applicable to it, and in particular provides for the
equitable allocation of reasonable fees, dues, and other charges among
clearing members and market participants by ensuring that clearing
members and clients pay reasonable fees and dues for the services
provided by LCH SA, within the meaning of Section 17A(b)(3)(D) of the
Act.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
With respect to the change of the Index and Single Name CDS
Unlimited Tariff for General Members, LCH SA has determined in
consultation with its clearing members that the slight increase in the
annual fixed fee amount for General Members covering their Index and
Single Name CDS self-clearing activity is reasonable and appropriate as
the CDSClear business is now reaching a more mature stage in its
development and the likelihood to onboard new General Members under the
Unlimited Tariff is small or even negligible given the structure of the
CDS market and the limited number of market makers in this space.
With respect to the Index and Single Names CDS Introductory Tariffs
for both General and Select Members, both the annual fixed fee and the
variable fees remain the same. The removal of the cap as well as the
lowering of the notional thresholds aim at reflecting the fact that
market participants are now more familiar with the CDSClear service as
well as their own activity in the Credit Derivatives space:
--the removal of the cap which was struck at the level of the fixed fee
under the Unlimited Tariff incentivizes Clearing Members to select the
most appropriate tariff for them at the start of the year.
--the lowering of the notional thresholds would constitute an increase
of fees for the Members which have cleared less than the current
threshold but more than the new one. No member is in that situation.
The main change in the fee grid of the Options clearing service is
the decrease of the variable fees for General and Select Members as
well as Clients in order to make clearing of options more attractive
for all, and in particular for clients to begin clearing options.
Besides, and after discussing with its Clearing Members, LCH SA has
elected to maintain a similar volume-based discount fee structure for
its Options Unlimited Tariff for both General and Select Members in
which the cost of clearing options decreases as more volumes are
cleared. The increase of the notional threshold as well as of the
decrease of the discount percentage are reflective of the growth of the
Option clearing service over the last year which now is more broadly
used by LCH SA Clearing Members and which justifies the increase of
total fees paid by the Clearing Members having selected this scheme.
Consequently, the General Member Introductory Tariff has been
redesigned to be more appropriate for smaller Options trading members:
In particular, the decrease of the annual floor, the
[[Page 2471]]
introduction of 2 new levels of annual floor depending on the number of
legal entities of a given Financial Group of a Clearing Member joining
the service as well as the removal of the cap are meant to ease the
introduction of new members to the Options clearing service.
Changes following the same principles and rationale have also been
made to the Select Members Options fee grid to ensure a consistent
access between the 2 membership tiers.
Lastly, and in order to incentivize the development of Options
Client clearing, LCH SA is proposing to provide the first 2 Clearing
Members clearing options on behalf of at least one of their clients,
and before 31 July 2021, with a one-off fee rebate equal to the total
amount of Options clearing fees paid in 2021, capped at [euro]200,000,
in order to mitigate the cost associated with the systems developments
required to enable clients to access the LCH SA Options clearing
service. The rationale to limit the number of Clearing Members eligible
to this one-off rebate to the first two clearing an option trade on
behalf of clients is twofold:
--Further incentivize competition between the Clearing Members which
have an interest in building client clearing capabilities for options
by offering a rebate substantial enough to cover some of the build
costs that will be incurred by the Clearing Members.
--Mitigate financial risk for LCH SA by predefining the maximum amount
of rebate it could have to pay back to its Clearing Members as well as
the amount of the rebate they would get, thus maintaining the
attractiveness of the rebate for them. All clearing members will have
the same opportunity to equally benefit from the proposed incentive
rebate according to the specified conditions.
Finally, the introduction of a specific fee structure (full
variable fee rebate plus fixed account charge) for Affiliates of a
given Financial Group of a Clearing Member clearing as Clients of such
Clearing Member and under a set of pre-defined conditions aims at
offering Financial Groups of Clearing Members under the General
Membership Unlimited Tariff additional, fairly-priced ways for their
Affiliates to gain access to LCH SA CDSClear service.
LCH SA CDSClear has thus determined that the proposed new fee
structure is more appropriate and takes into account the expected
volume of transactions. All the clearing fee conditions remain
transparent and equally applicable to any market participant wishing to
access the CDSClear clearing service for both Index & Single Names as
well as Options.
For all the reasons stated above, LCH SA believes that the proposed
fee rates are reasonable and have been set up at an appropriate level
so that LCH SA can provide the CDSClear services.
B. Clearing Agency's Statement on Burden on Competition
Section 17A(b)(3)(I) of the Act requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\8\
---------------------------------------------------------------------------
\8\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------
LCH SA does not believe that the proposed rule change would impose
any burden on competition that are not necessary or appropriate in
furtherance of the purposes of the Act because LCH SA is offering the
possibility for CDSClear members and clients to get a more attractive
access to the clearing services. It does not affect the ability of such
Clearing Members or other market participants generally to engage in
cleared transactions or to access clearing services especially to the
clearing of credit index swaptions that remains not mandatory.
Additionally, the proposed volume-based discount scheme for the
Options Unlimited Tariff will be available to any Financial Group of a
Clearing Member using CDSClear services.
Similarly, the proposed Index and Single Names Unlimited Tariff
will be available to any Financial Group including an entity registered
as a General Member of the CDSClear service.
The annual fixed fee increase does not impact any competition
between General and Select Members as the choice of membership tier
made by a Clearing Member is mainly driven by the material differences
in the obligations of a General Member versus those of a Select Member
(in terms of price contribution and auction bidding notably) which are
reflected in the tariffs available for each tier.
The rebate offered on client clearing fees for Affiliates of a
General Member under the Unlimited Tariff relies on the fact that
should such Affiliate join as a Clearing Member his fees would be
covered by the fixed fee of the Unlimited Tariff whereas this wouldn't
the [sic] case for Select Members.
More broadly, none of the proposed changes impacts competition
between General and Select Members as they have been designed
consistently across both tiers or are more extensions of existing
features of the current fee grid.
Further, as explained above, LCH SA believes that the fee rates
have been set up at an appropriate level given the costs and expenses
to LCH SA in offering the relevant clearing services.
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 but a consultation has been conducted with and
verbal feedback sought from CDSClear members. No comment or question
has been received following this consultation. LCH SA will notify the
Commission of any subsequent written comments received by LCH SA.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A)9 [sic] of the Act and Rule 19b-
4(f)(2)10 [sic] thereunder because it establishes a fee or other charge
imposed by LCH SA on its Clearing Members. 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
Send an email to [email protected]. Please include
File Number SR-LCH SA-2020-007 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-LCH SA-2020-007. 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
[[Page 2472]]
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 LCH SA and on LCH SA's website
at: https://www.lch.com/resources/rulebooks/proposed-rule-changes. 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-2020-007 and should
be submitted on or before February 2, 2021.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-00348 Filed 1-11-21; 8:45 am]
BILLING CODE 8011-01-P
