Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Delivery Procedures, 24689-24691 [2021-09643]
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Federal Register / Vol. 86, No. 87 / Friday, May 7, 2021 / Notices
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:
[FR Doc. 2021–09646 Filed 5–6–21; 8:45 am]
Electronic Comments
BILLING CODE 8011–01–P
• 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–
NASDAQ–2021–025 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–NASDAQ–2021–025. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–NASDAQ–2021–025 and
should be submitted on or before May
28, 2021.
VerDate Sep<11>2014
19:55 May 06, 2021
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
Jkt 253001
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–91740; File No. SR–ICEEU–
2021–011]
24689
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. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments to the ICE Clear Europe
Delivery Procedures
May 3, 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 April 28,
2021, ICE Clear Europe Limited (‘‘ICE
Clear Europe’’ or the ‘‘Clearing House’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule changes described in
Items I, II and III below, which Items
have been prepared primarily by ICE
Clear Europe. ICE Clear Europe filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act 3 and Rule
19b–4(f)(4)(ii) 4 thereunder, such that
the proposed rule was immediately
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The principal purpose of the
proposed amendments is for ICE Clear
Europe to amend its Delivery
Procedures (the ‘‘Delivery Procedures’’)
in connection with the addition of
delivery terms relating to the Ice
Deliverable UK Emissions Contracts.5
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICE
Clear Europe included statements
concerning the purpose of and basis for
19 17
CFR 200.30–3(a)(12).
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)(4)(ii).
5 Capitalized terms used but not defined herein
have the meaning specified in the ICE Clear Europe
Clearing Rules (the ‘‘Rules’’).
1 15
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Fmt 4703
Sfmt 4703
ICE Clear Europe is proposing to
amend its Delivery Procedures to add a
new Part A1 regarding delivery
procedures relating to a new ICE
Deliverable UK Emissions Futures
Contracts (‘‘ICE Deliverable UK
Emissions Contracts’’), which include
ICE Futures UKA Auction Contracts,
ICE Futures UKA Futures Contracts and
ICE Futures UKA Daily Contracts, that
would be traded on ICE Futures Europe
and cleared by ICE Clear Europe.
Proposed Part A1 would set out the
delivery specifications and procedures
for deliveries under the ICE Deliverable
UK Emissions Contracts.
Proposed Part A1 would apply to ICE
Deliverable UK Emissions Contracts
which go to physical delivery on the
expiry date and provides that deliveries
under ICE Deliverable UK Emissions
Contracts are effected upon (i) in the
case of Seller effecting delivery, the
completion of the transfer of the
relevant UK Carbon Emissions
Allowances, or ‘‘UKAs’’, from the
relevant Nominating Holding Account
of the Seller to the relevant Nominating
Holding Account of the Clearing House,
and (ii) in the case of the Buyer taking
delivery, the completion of the transfer
of the relevant UKAs from the
Nominating Holding Account of the
Clearing House to the relevant
Nominating Holding Account of the
Buyer. Such delivery takes place during
the Delivery Period for the relevant
Emissions Contracts in accordance with
the ICE Futures Europe Rules. UKAs to
be delivered must conform to the
specifications in ICE Futures Europe
Rules and the registry through which
delivery may be made.
Proposed Part A1 would address
certain the responsibilities of the
Clearing House and relevant parties for
delivery under the ICE Deliverable UK
Emissions Contracts. Routine delivery of
ICE UKA Auction Contracts would be
based on submission of delivery
intentions via the Clearing House ECS
system.
Proposed Part A1 would further
specify the pricing for delivery under
E:\FR\FM\07MYN1.SGM
07MYN1
24690
Federal Register / Vol. 86, No. 87 / Friday, May 7, 2021 / Notices
the ICE Deliverable UK Emissions
Contracts and the method for
calculation of invoices. The
amendments would include delivery
timetables, which would distinguish
between ICE UKA Futures Contracts, the
ICE UKA Daily Futures Contracts and
the ICE UKA Auction Contracts. The
timetables would each include a
detailed timeframe for submission of
Registry Account Details, submission of
delivery intentions, submission of
Transfer Requests to the relevant
registry, payment and release of delivery
Margin (if relevant), payment and other
matters. Delivery timetables would also
be set out for late and failed deliveries.
Proposed Part A1 would also detail
limitation of liability for the Clearing
House. The Clearing House would not
be liable as a result of the performance
or non-performance of any Auction
Seller, Auction Monitor, Administrator,
GG ETS Regulator, Governmental
Authority, Registry or UK Transaction
Log, the validity of any UKA for
purposes of meeting the requirements of
the Scheme, any act or omission of any
operator the Registry or UK Transaction
Log or Authorised Representative of any
other party, among other matters.
In addition, Proposed Part A1 would
address the posting of EFPs and EFSs in
respect of the ICE UKA Futures
Contracts. Finally, Proposed Part A1
would also address an alternative
delivery procedure in the event of a
transfer request failure relating to ICE
Deliverable UK Emissions Contracts
other than the ICE UKA Auction
Contract, pursuant to which a Clearing
Member may seek agreement of the
Clearing House to make or take delivery
beyond the point of failure on terms
other than those required under ICE
Futures Europe Rules.
of Clearing Members and the Clearing
House. ICE Clear Europe believes that
its financial resources, risk
management, systems and operational
arrangements are sufficient to support
clearing of such contract (and to address
physical delivery under such contract)
and to manage the risks associated with
such contract. As a result, in ICE Clear
Europe’s view, the amendments would
be consistent with the prompt and
accurate clearance and settlement of the
Contract as set out in the proposed
Delivery Procedures amendments, and
the protection of investors and the
public interest consistent with the
requirements of Section 17A(b)(3)(F) of
the Act.7 (In ICE Clear Europe’s view,
the amendments would not affect the
safeguarding of funds or securities in
the custody or control of the clearing
agency or for which it is responsible,
within the meaning of Section
17A(b)(3)(F).8)
In addition, Rule 17Ad–22(e)(10) 9
requires that each covered clearing
agency establish and maintain
transparent written standards that state
its obligations with respect to the
delivery of physical instruments, and
establish and maintain operational
practices that identify, monitor and
manage the risks associated with such
physical deliveries. As discussed above,
the amendments to the Delivery
Procedures relating to the delivery and
settlement under the ICE Deliverable UK
Emissions Contracts and ICE Futures
Europe exchange contract terms would
set out the obligations and roles of
Clearing Members and the Clearing
House. The amendments would also
adopt relevant procedures for such
deliveries, which would facilitate
identifying, monitoring and managing
risks associated with delivery.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act 6
requires, among other things, that the
rules of a clearing agency be designed to
promote the prompt and accurate
clearance and settlement of securities
transactions and, to the extent
applicable, derivative agreements,
contracts, and transactions, the
safeguarding of securities and funds in
the custody or control of the clearing
agency or for which it is responsible,
and the protection of investors and the
public interest. The proposed
amendments are designed to facilitate
the clearing of a new physically settled
UK emissions contracts that are being
launched for trading by the ICE Futures
Europe exchange. The amendments
would set out the obligations and roles
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed rule changes would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The changes are
being proposed in order to update the
Delivery Procedures in connection with
the listing of the ICE Deliverable UK
Emissions Contracts on the ICE Futures
Europe market. ICE Clear Europe
believes that such contracts would
provide opportunities for interested
market participants to engage in trading
activity in the UK emissions market. ICE
Clear Europe does not believe the
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(F).
9 17 CFR 240.17Ad–22(e)(10).
U.S.C. 78q–1(b)(3)(F).
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19:55 May 06, 2021
Jkt 253001
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed amendments have not been
solicited or received by ICE Clear
Europe. ICE Clear Europe will notify the
Commission of any comments received
with respect to the proposed rule
change.
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 10 and paragraph (f) of Rule
19b–4 11 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
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–
ICEEU–2021–011 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICEEU–2021–011. This file
number should be included on the
7 15
8 15
6 15
amendments would adversely affect
competition among Clearing Members,
materially affect the cost of clearing,
adversely affect access to clearing in
Contracts for Clearing Members or their
customers, or otherwise adversely affect
competition in clearing services.
Accordingly, ICE Clear Europe does not
believe that the amendments would
impose any impact or burden on
competition that is not appropriate in
furtherance of the purpose of the Act.
PO 00000
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Fmt 4703
Sfmt 4703
10 15
11 17
E:\FR\FM\07MYN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
07MYN1
Federal Register / Vol. 86, No. 87 / Friday, May 7, 2021 / Notices
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s website at https://
www.theice.com/clear-europe/
regulation.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICEEU–2021–011
and should be submitted on or before
May 28, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.12
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–09643 Filed 5–6–21; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of one or more persons that have been
determined to be subject to specific
prohibitions based on OFAC’s
SUMMARY:
determination that one or more
applicable legal criteria were satisfied.
See SUPPLEMENTARY INFORMATION
section for effective date(s).
DATES:
FOR FURTHER INFORMATION CONTACT:
OFAC: Andrea Gacki, Director, tel.:
202–622–2490; Associate Director for
Global Targeting, tel.: 202–622–2420;
Assistant Director for Licensing, tel.:
202–622–2480; Assistant Director for
Regulatory Affairs, tel.: 202–622–4855;
or the Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
The Specially Designated Nationals
and Blocked Persons List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website (www.treasury.gov/ofac).
Notice of OFAC Action[s]
On April 15, 2021, OFAC determined
that the following persons shall be
subject to the prohibitions of Directive
1 under the relevant sanctions authority
listed below as of June 14, 2021.
Entities
1. CENTRAL BANK OF THE RUSSIAN
FEDERATION.
Pursuant to sections 1(a)(iv), 1(d), and 8 of
Executive Order 14024 of April 15, 2021,
‘‘Blocking Property with Respect to Specified
Harmful Foreign Activities of the
Government of the Russian Federation,’’ 86
FR 20249, (‘‘E.O. 14024’’) the entity is
determined to be a political subdivision,
agency, or instrumentality of the Government
of the Russian Federation and shall be
subject to the prohibitions of Directive 1
under E.O. 14024.
2. MINISTRY OF FINANCE OF THE
RUSSIAN FEDERATION.
Pursuant to sections 1(a)(iv), 1(d), and 8 of
E.O. 14024, the entity is determined to be a
political subdivision, agency, or
instrumentality of the Government of the
Russian Federation and shall be subject to
the prohibitions of Directive 1 under E.O.
14024.
3. NATIONAL WEALTH FUND OF THE
RUSSIAN FEDERATION.
Pursuant to sections 1(a)(iv), 1(d), and 8 of
E.O. 14024, the entity is determined to be a
political subdivision, agency, or
instrumentality of the Government of the
Russian Federation and shall be subject to
the prohibitions of Directive 1 under E.O.
14024.
Dated: April 15, 2021.
Bradley T. Smith,
Acting Director, Office of Foreign Assets
Control, U.S. Department of the Treasury.
[FR Doc. 2021–09647 Filed 5–6–21; 8:45 am]
12 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
19:55 May 06, 2021
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24691
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Notice of OFAC Sanctions Actions
Office of Foreign Assets
Control, Treasury.
ACTION: Notice.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is publishing the names
of one or more persons that have been
removed from OFAC’s Specially
Designated Nationals and Blocked
Persons List (SDN List). Their property
and interests in property are no longer
blocked, and U.S. persons are no longer
generally prohibited from engaging in
transactions with them.
DATES: See SUPPLEMENTARY INFORMATION
section for effective date(s).
FOR FURTHER INFORMATION CONTACT:
OFAC: Andrea Gacki, Director, tel.:
202–622–2480; Associate Director for
Global Targeting, tel.: 202–622–2420;
Assistant Director for Licensing, tel.:
202–622–2480; Assistant Director for
Regulatory Affairs, tel.: 202–622–4855;
or the Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Electronic Availability
The SDN List and additional
information concerning OFAC sanctions
programs are available on OFAC’s
website. (https://www.treasury.gov/
ofac).
Notice of OFAC Actions
On August 28, 2003, the President
issued Executive Order 13315 (the
‘‘Order’’) pursuant to the International
Emergency Economic Powers Act, 50
U.S.C. 1701 et seq., the National
Emergencies Act, 50 U.S.C. 1601 et seq.,
section 5 of the United Nations
Participation Act, as amended, 22 U.S.C.
287c, section 301 of title 3, United
States Code, and in view of United
Nations Security Council Resolution
1483 of May 22, 2003. In the Order, the
President expanded the scope of the
national emergency declared in
Executive Order 13303 of May 22, 2003,
to address the unusual and
extraordinary threat to the national
security and foreign policy of the United
States posed by obstacles to the orderly
reconstruction of Iraq, the restoration
and maintenance of peace and security
in that country, and the development of
political, administrative, and economic
institutions in Iraq. The Order blocks
the property and interests in property
E:\FR\FM\07MYN1.SGM
07MYN1
]]>Agencies
[Federal Register Volume 86, Number 87 (Friday, May 7, 2021)]
[Notices]
[Pages 24689-24691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09643]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-91740; File No. SR-ICEEU-2021-011]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the ICE Clear Europe Delivery Procedures
May 3, 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 April 28, 2021, ICE Clear Europe Limited (``ICE Clear Europe'' or
the ``Clearing House'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule changes described in
Items I, II and III below, which Items have been prepared primarily by
ICE Clear Europe. ICE Clear Europe filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(4)(ii)
\4\ thereunder, such that the proposed rule was immediately effective
upon filing with the Commission. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(a).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed amendments is for ICE Clear
Europe to amend its Delivery Procedures (the ``Delivery Procedures'')
in connection with the addition of delivery terms relating to the Ice
Deliverable UK Emissions Contracts.\5\
---------------------------------------------------------------------------
\5\ Capitalized terms used but not defined herein have the
meaning specified in the ICE Clear Europe Clearing Rules (the
``Rules'').
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change 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. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
ICE Clear Europe is proposing to amend its Delivery Procedures to
add a new Part A1 regarding delivery procedures relating to a new ICE
Deliverable UK Emissions Futures Contracts (``ICE Deliverable UK
Emissions Contracts''), which include ICE Futures UKA Auction
Contracts, ICE Futures UKA Futures Contracts and ICE Futures UKA Daily
Contracts, that would be traded on ICE Futures Europe and cleared by
ICE Clear Europe.
Proposed Part A1 would set out the delivery specifications and
procedures for deliveries under the ICE Deliverable UK Emissions
Contracts.
Proposed Part A1 would apply to ICE Deliverable UK Emissions
Contracts which go to physical delivery on the expiry date and provides
that deliveries under ICE Deliverable UK Emissions Contracts are
effected upon (i) in the case of Seller effecting delivery, the
completion of the transfer of the relevant UK Carbon Emissions
Allowances, or ``UKAs'', from the relevant Nominating Holding Account
of the Seller to the relevant Nominating Holding Account of the
Clearing House, and (ii) in the case of the Buyer taking delivery, the
completion of the transfer of the relevant UKAs from the Nominating
Holding Account of the Clearing House to the relevant Nominating
Holding Account of the Buyer. Such delivery takes place during the
Delivery Period for the relevant Emissions Contracts in accordance with
the ICE Futures Europe Rules. UKAs to be delivered must conform to the
specifications in ICE Futures Europe Rules and the registry through
which delivery may be made.
Proposed Part A1 would address certain the responsibilities of the
Clearing House and relevant parties for delivery under the ICE
Deliverable UK Emissions Contracts. Routine delivery of ICE UKA Auction
Contracts would be based on submission of delivery intentions via the
Clearing House ECS system.
Proposed Part A1 would further specify the pricing for delivery
under
[[Page 24690]]
the ICE Deliverable UK Emissions Contracts and the method for
calculation of invoices. The amendments would include delivery
timetables, which would distinguish between ICE UKA Futures Contracts,
the ICE UKA Daily Futures Contracts and the ICE UKA Auction Contracts.
The timetables would each include a detailed timeframe for submission
of Registry Account Details, submission of delivery intentions,
submission of Transfer Requests to the relevant registry, payment and
release of delivery Margin (if relevant), payment and other matters.
Delivery timetables would also be set out for late and failed
deliveries.
Proposed Part A1 would also detail limitation of liability for the
Clearing House. The Clearing House would not be liable as a result of
the performance or non-performance of any Auction Seller, Auction
Monitor, Administrator, GG ETS Regulator, Governmental Authority,
Registry or UK Transaction Log, the validity of any UKA for purposes of
meeting the requirements of the Scheme, any act or omission of any
operator the Registry or UK Transaction Log or Authorised
Representative of any other party, among other matters.
In addition, Proposed Part A1 would address the posting of EFPs and
EFSs in respect of the ICE UKA Futures Contracts. Finally, Proposed
Part A1 would also address an alternative delivery procedure in the
event of a transfer request failure relating to ICE Deliverable UK
Emissions Contracts other than the ICE UKA Auction Contract, pursuant
to which a Clearing Member may seek agreement of the Clearing House to
make or take delivery beyond the point of failure on terms other than
those required under ICE Futures Europe Rules.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act \6\ requires, among other things,
that the rules of a clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities transactions and,
to the extent applicable, derivative agreements, contracts, and
transactions, the safeguarding of securities and funds in the custody
or control of the clearing agency or for which it is responsible, and
the protection of investors and the public interest. The proposed
amendments are designed to facilitate the clearing of a new physically
settled UK emissions contracts that are being launched for trading by
the ICE Futures Europe exchange. The amendments would set out the
obligations and roles of Clearing Members and the Clearing House. ICE
Clear Europe believes that its financial resources, risk management,
systems and operational arrangements are sufficient to support clearing
of such contract (and to address physical delivery under such contract)
and to manage the risks associated with such contract. As a result, in
ICE Clear Europe's view, the amendments would be consistent with the
prompt and accurate clearance and settlement of the Contract as set out
in the proposed Delivery Procedures amendments, and the protection of
investors and the public interest consistent with the requirements of
Section 17A(b)(3)(F) of the Act.\7\ (In ICE Clear Europe's view, the
amendments would not affect the safeguarding of funds or securities in
the custody or control of the clearing agency or for which it is
responsible, within the meaning of Section 17A(b)(3)(F).\8\)
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 15 U.S.C. 78q-1(b)(3)(F).
\8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
In addition, Rule 17Ad-22(e)(10) \9\ requires that each covered
clearing agency establish and maintain transparent written standards
that state its obligations with respect to the delivery of physical
instruments, and establish and maintain operational practices that
identify, monitor and manage the risks associated with such physical
deliveries. As discussed above, the amendments to the Delivery
Procedures relating to the delivery and settlement under the ICE
Deliverable UK Emissions Contracts and ICE Futures Europe exchange
contract terms would set out the obligations and roles of Clearing
Members and the Clearing House. The amendments would also adopt
relevant procedures for such deliveries, which would facilitate
identifying, monitoring and managing risks associated with delivery.
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\9\ 17 CFR 240.17Ad-22(e)(10).
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(B) Clearing Agency's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed rule changes would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The changes are
being proposed in order to update the Delivery Procedures in connection
with the listing of the ICE Deliverable UK Emissions Contracts on the
ICE Futures Europe market. ICE Clear Europe believes that such
contracts would provide opportunities for interested market
participants to engage in trading activity in the UK emissions market.
ICE Clear Europe does not believe the amendments would adversely affect
competition among Clearing Members, materially affect the cost of
clearing, adversely affect access to clearing in Contracts for Clearing
Members or their customers, or otherwise adversely affect competition
in clearing services. Accordingly, ICE Clear Europe does not believe
that the amendments would impose any impact or burden on competition
that is not 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 amendments have not been
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any comments received with respect to the proposed
rule change.
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 \10\ and paragraph (f) of Rule 19b-4 \11\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
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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-ICEEU-2021-011 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-ICEEU-2021-011. This
file number should be included on the
[[Page 24691]]
subject line if email is used. To help the Commission process and
review your comments more efficiently, please use only one method. The
Commission will post all comments on the Commission's internet website
(https://www.sec.gov/rules/sro.shtml). Copies of the submission, all
subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all
written communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
such filings will also be available for inspection and copying at the
principal office of ICE Clear Europe and on ICE Clear Europe's website
at https://www.theice.com/clear-europe/regulation.
All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICEEU-2021-011 and should be
submitted on or before May 28, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-09643 Filed 5-6-21; 8:45 am]
BILLING CODE 8011-01-P
