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, 53355-53358 [2021-20817]
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lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 184 / Monday, September 27, 2021 / Notices
information to review a plan’s eligibility
for SFA, priority group status (if
applicable), and amount of requested
SFA. PBGC estimates that over the next
3 years an annual average of 60 plan
sponsors will file applications for SFA
with an average annual hour burden of
600 hours and an average annual cost
burden of $1,800,000.
Under § 4262.16(i), a plan sponsor of
a plan that has received SFA must file
an Annual Statement of Compliance
with the restrictions and conditions
under section 4262 of ERISA and part
4262 once every year through 2051.
PBGC needs the information in the
Annual Statement of Compliance to
ensure that a plan is compliant with the
imposed restrictions and conditions.
PBGC estimates that over the next 3
years an annual average of 49 plan
sponsors will file Annual Statements of
Compliance with an average annual
hour burden of 98 hours and an average
annual cost burden of $117,600.
Under § 4262.15(c), a plan sponsor of
a plan with benefits that were
suspended under sections 305(e)(9) or
4245(a) of ERISA must issue notices of
reinstatement to participants and
beneficiaries whose benefits were
suspended and are being reinstated.
Participants and beneficiaries need the
notice of reinstatement to better
understand the calculation and timing
of their reinstated benefits and, if
applicable, make-up payments. PBGC
estimates that over the next 3 years an
average of 11 plans per year will be
required to send notices to participants
with suspended benefits. PBGC
estimates that these notices will impose
an average annual hour burden of 22
hours and average annual cost burden of
$22,667.
Finally, under § 4262.16(d), (f), and
(h) a plan sponsor must file a request for
a determination from PBGC for approval
for an exception under certain
circumstances for SFA conditions under
§ 4262.16 relating to reductions in
contributions, transfers or mergers, and
settlement of withdrawal liability. PBGC
needs the information required for a
request for determination to determine
whether to approve an exception from
the specified condition of receiving
SFA. PBGC estimates that beginning in
2023, PBGC will receive an average of
2.2 requests per year for determinations.
PBGC estimates an average annual hour
burden of 2.53 hours and average
annual cost burden of $6,333.
The estimated aggregate average
annual hour burden for the next 3 years
for the information collection in part
4262 is 723 hours for employer and
fund office administrative, clerical, and
supervisory time. The estimated
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aggregate average annual cost burden for
the next three years for the information
collection request in part 4262 is
$1,946,600, for approximately 4,867
contract hours assuming an average
hourly rate of $400 for work done by
outside actuaries and attorneys. The
actual hour burden and cost burden per
plan will vary depending on plan size
and other factors.
The collection of information under
the regulation has been approved by
OMB under control number 1212–0074
(expires January 31, 2022). PBGC
intends to request that OMB extend its
approval for 3 years. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
PBGC is soliciting public comments
to—
• Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
• Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the
methodologies and assumptions used;
• Enhance the quality, utility, and
clarity of the information to be
collected; and
• Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g. permitting electronic submission of
responses.
MATTERS TO BE CONSIDERED:
Commissioners, Counsel to the
Commissioners, the Secretary to the
Commission, and recording secretaries
will attend the closed meeting. Certain
staff members who have an interest in
the matters also may be present.
In the event that the time, date, or
location of this meeting changes, an
announcement of the change, along with
the new time, date, and/or place of the
meeting will be posted on the
Commission’s website at https://
www.sec.gov.
The General Counsel of the
Commission, or his designee, has
certified that, in his opinion, one or
more of the exemptions set forth in 5
U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B)
and (10) and 17 CFR 200.402(a)(3),
(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and
(a)(10), permit consideration of the
scheduled matters at the closed meeting.
The subject matter of the closed
meeting will consist of the following
topics:
Institution and settlement of
injunctive actions;
Institution and settlement of
administrative proceedings;
Resolution of litigation claims; and
Other matters relating to examinations
and enforcement proceedings.
At times, changes in Commission
priorities require alterations in the
scheduling of meeting agenda items that
may consist of adjudicatory,
examination, litigation, or regulatory
matters.
Issued in Washington, DC, by:
Hilary Duke,
Assistant General Counsel for Regulatory
Affairs, Pension Benefit Guaranty
Corporation.
Dated: September 22, 2021.
Vanessa A. Countryman,
Secretary.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
[FR Doc. 2021–20967 Filed 9–23–21; 11:15 am]
BILLING CODE 8011–01–P
[FR Doc. 2021–20893 Filed 9–24–21; 8:45 am]
BILLING CODE 7709–02–P
SECURITIES AND EXCHANGE
COMMISSION
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93095; File No. SR–ICEEU–
2021–017]
Sunshine Act Meetings
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
10:00 a.m. on
Wednesday, September 29, 2021.
PLACE: The meeting will be held via
remote means and/or at the
Commission’s headquarters, 100 F
Street NE, Washington, DC 20549.
STATUS: This meeting will be closed to
the public.
TIME AND DATE:
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September 21, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
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Federal Register / Vol. 86, No. 184 / Monday, September 27, 2021 / Notices
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on
September 15, 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’’)
relating to German natural gas futures
contracts traded on the ICE Endex
market in connection with the merger of
two existing natural gas market areas in
Germany, operated by NetConnect
Germany GmbH & Co. and NetConnect
Germany Management GmbH (together
‘‘NCG’’) and GASPOOL Balancing
Services GmbH (‘‘GASPOOL’’), with the
resulting combined market area to be
called the ‘Trading Hub Europe’
(‘‘THE’’). The German market area
merger is currently planned to take
effect on October 1, 2021 (at which time
the amendments discussed herein
would take effect).
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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.
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(a).
4 17 CFR 240.19b–4(f)(4)(ii).
2 17
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(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
In connection with the merger of the
market areas of the German gas
transmission system operators with
GASPOOL and NCG, ICE Clear Europe
is proposing certain amendments to its
Delivery Procedures relating to German
natural gas futures contracts traded on
ICE Endex, in order to be consistent
with related changes made by the
exchange and to give effect to the
German market merger. As has been
announced by ICE Endex,5 the existing
German GASPOOL Natural Gas Futures
Contract will cease to be listed with the
September 2021 contract month, and the
existing German NCG Natural Gas
Futures Contract will continue to trade
on ICE Endex and will be renamed the
German THE Natural Gas Futures
Contract. Accordingly, ICE Clear Europe
is proposing to delete the content of Part
G of the Delivery Procedures (relating to
the ICE Endex GASPOOL Natural Gas
Futures Contracts) and replace it with
‘‘[NOT USED]’’. The amendments
would also remove the reference to ICE
Endex GASPOOL Natural Gas Futures
Contracts in section 5.1. ICE Clear
Europe is also proposing to amend Part
H of its Delivery Procedures to reflect
the change of the contract name to ICE
Endex German THE Natural Gas Futures
instead of ICE Endex NCG Natural Gas
Futures Contracts and make certain
other amendments related to the merger
of market areas as discussed herein. All
references to ICE Endex NCG Natural
Gas Futures Contracts in the Delivery
Procedures would be replaced with
references to ICE Endex German THE
Natural Gas Futures Contracts and
references to NCG Rules would be
replaced with references to THE Rules.
In connection with the above,
multiple additional conforming
amendments would be made throughout
Part H to reference relevant THE terms,
documents and systems reflecting the
combined German gas market operation.
Specifically, references to the term
‘‘NCG’’ would be deleted and replaced
with the term ‘‘THE’’, which would be
defined specifically to be Trading Hub
Europe GmbH domiciled in Ratingen
and Berlin, the operator of the market
area cooperation between all gas
network owners in Germany known as
‘‘THE’’ or any successor thereto.
References to the term, ‘‘NCG’s
Communication Facilities’’ would be
5 See ICE Endex Circulars E21/026, E20/039 and
E21/014, available at https://www.theice.com/
endex/circulars.
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replaced with references to ‘‘THE’s
Communication Facilities’’. This term
would reference THE’s electronic
facility, which includes any electronic
facility which enables the submission of
a Trade Nomination to THE through the
portal, any web-based communication
channel including the related
functionality and connected systems
provided by THE, ‘‘Communications
Systems’’ within the meaning of the
THE Rules, and access to information
concerning the submitted Trade
Nominations, and any successor system
thereto.
The term, ‘‘THE Balancing Group
Contract’’, which means the THE’s
Balancing Group Contract Terms and
Conditions, would be added.
The term, ‘‘THE Rules’’, would
replace the term ‘‘NetConnect Germany
(NCG) Rules’’, and would mean the
Electricity and Gas Supply Act, the Gas
Network Access rules and THE
Balancing Group Contract, and any
manuals, procedures, practices and
directions of THE supporting its
operation.
A new Section 3.2 would be added to
state explicitly that the Transmission
System, THE and THE’s Communication
Facilities constitute ‘‘Delivery
Facilities’’ for the purposes of Rule 101
of the Rules. The limitations on liability
would also be expanded and clarified to
provide that neither the Buyer nor the
Seller nor their Transferees or
Transferors would have any claim
against the Clearing House for losses
resulting from (a) actions taken by the
Clearing House pursuant to the THE
Rules or (b) technical issues, the
condition or operation of or the
performance of the Transmission
System, THE or THE’s Communication
Facilities except as otherwise expressly
provided in the ICE Endex Rules
(expanding upon more limited
references in the current procedure to
the Transmission System or NCG).
The Delivery Timetable for routine
deliveries set out in section 5 would be
updated such that the submission of
delivery intentions for the ICE Endex
German THE Natural Gas Futures and
the nomination of the Transferor/
Transferee must be made by 11:30 CET
instead of 13:00 CET.
A note would also be added stating
that the delivery timetables for routine
and failed deliveries could be altered
without notice at the discretion of the
Clearing House, consistent with other
existing provisions of Parts G and H,
and clarifying that such modifications
could be made in the event of technical
issues or other conditions relating to
THE, among other reasons.
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Federal Register / Vol. 86, No. 184 / Monday, September 27, 2021 / Notices
(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 intended to update the
Delivery Procedures to reflect changes
in the trading of natural gas futures
contracts on ICE Endex in light of the
merger of the market areas of the
German gas transmission system
operators with GASPOOL and NCG. The
resulting ICE Endex German THE
Natural Gas Futures Contract will
continue to be cleared by the Clearing
House in the substantially same manner
as the current NCG contract, with
modifications to reflect the merger of
the underlying gas market, and will be
supported by ICE Clear Europe’s
existing financial resources, risk
management, systems and operational
arrangements. Accordingly, ICE Clear
Europe believes that its financial
resources, risk management, systems
and operational arrangements are
sufficient to support clearing of such
contracts and to manage the risks
associated with such contracts. As a
result, in ICE Clear Europe’s view, the
amendments would be consistent with
the prompt and accurate clearance and
settlement of the contracts, 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 would incorporate into
the Delivery Procedures the
6 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(F).
8 15 U.S.C. 78q–1(b)(3)(F).
9 17 CFR 240.17Ad–22(e)(10).
7 15
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amendments necessary to address the
merger of the market areas of the
German gas transmission system
operators with GASPOOL and NCG into
THE. The resulting ICE Endex German
THE Futures Contract will continue to
be cleared in substantially the same
manner as the current NCG contract,
supported by ICE Clear Europe’s
existing financial resources, risk
management, systems and operational
arrangements. The amendments would
also remove Part G and related
references related to the GASPOOL
contracts that will no longer be traded
on ICE Endex as a result of the
underlying market merger. As a result,
ICE Clear Europe believes the
amendments are consistent with the
requirements of Rule 17Ad–22(e)(10).10
of the Act 11 and paragraph (f) of Rule
19b–4 12 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.
(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 merger of the market areas of the
German gas transmission system
operators with GASPOOL and NCG. The
terms of clearing are not otherwise
changing. 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 the new 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.
Electronic Comments
(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)
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, security-based swap submission
or advance notice is consistent with the
Act. Comments may be submitted by
any of the following methods:
• 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–2021–017 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–2021–017. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s website at https://
11 15
10 17
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CFR 240.17Ad–22(e)(10).
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12 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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Federal Register / Vol. 86, No. 184 / Monday, September 27, 2021 / Notices
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–2021–017
and should be submitted on or before
October 18, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–20817 Filed 9–24–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93097; File No. SR–FINRA–
2021–015]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Order Approving a
Proposed Rule Change To Amend
FINRA Rules 1210 (Registration
Requirements) and 1240 (Continuing
Education Requirements)
September 21, 2021.
lotter on DSK11XQN23PROD with NOTICES1
I. Introduction
On June 3, 2021, the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) filed with the Securities and
Exchange Commission (‘‘SEC’’ or
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Exchange Act’’) 1 and Rule
19b–4 thereunder,2 a proposed rule
change to amend FINRA Rules 1240
(Continuing Education Requirements)
and 1210 (Registration Requirements)
to, among other things, (1) require that
the Regulatory Element of FINRA’s
continuing education program for
registered persons of FINRA members
(‘‘CE Program’’) be tailored to each
registration category and completed
annually rather than every three years
and (2) provide a way for individuals to
maintain their qualifications following
the termination of registration through
continuing education. The proposed
rule change was published for comment
in the Federal Register on June 24,
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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2021.3 On July 23, 2021, FINRA
consented to extend until September 22,
2021, the time period in which the
Commission must approve the proposed
rule change, disapprove the proposed
rule change, or institute proceedings to
determine whether to approve or
disapprove the proposed rule change.4
On August 12, 2021, FINRA responded
to the comment letters received in
response to the Notice.5 This order
approves the proposed rule change.
II. Description of the Proposed Rule
Change
A. Background
As discussed in the Notice, FINRA’s
CE Program is codified under Rule 1240.
The CE Program currently requires
registered persons to complete
continuing education consisting of a
Regulatory Element and a Firm
Element.6 The Regulatory Element,
which is administered by FINRA,
focuses on regulatory requirements and
industry standards,7 while the Firm
Element is provided by each firm and
focuses on, among other things,
securities products, services and
strategies the firm offers, firm policies,
and industry trends.8 FINRA is
proposing to amend Rule 1240 and
make conforming amendments to Rule
1210 to modify aspects of both the
Regulatory Element and the Firm
Element.9
3 See Exchange Act Release No. 92183 (Jun. 15,
2021), 86 FR 33427 (Jun. 24, 2021) (File No. SR–
FINRA–2021–015) (‘‘Notice’’).
4 See letter from Afshin Atabaki, Special Advisor
and Associate General Counsel, FINRA, to Edward
Schellhorn, Special Counsel, Division of Trading
and Markets, Commission, dated July 23, 2021. This
letter is available at https://www.finra.org/sites/
default/files/2021-07/SR-FINRA-2021-015Extension1.pdf.
5 See letter from Afshin Atabaki, Special Advisor
and Associate General Counsel, FINRA, to Vanessa
Countryman, Secretary, Commission, dated August
12, 2021, 2021 (‘‘FINRA Letter’’). The FINRA Letter
is available at https://www.sec.gov/comments/srfinra-2021-015/srfinra2021015-9135950247347.pdf.
6 See FINRA Rule 1240. See also FINRA Rule
1210.07 (All Registered Persons Must Satisfy the
Regulatory Element of Continuing Education).
7 FINRA’s website describes the Regulatory
Element as being focused on compliance,
regulatory, ethical and sales practice standards.
According to FINRA, its content is derived from
industry rules and regulations, and accepted
standards and practices in the industry. Moreover,
participants must demonstrate proficiency in order
to satisfy the continuing education requirements.
See https://www.finra.org/registration-exams-ce/
continuing-education#regulatory.
8 See Notice, 86 FR at 33428.
9 FINRA stated that the proposed rule change was
developed in close consultation with the Securities
Industry/Regulatory Council (‘‘CE Council’’) and
discussions with stakeholders, including the North
American Securities Administrators Association
(‘‘NASAA’’). Specifically, FINRA stated that the
proposed changes to the CE Program are based in
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In addition, FINRA stated in the
Notice that it and the CE Council also
plan to enhance the CE Program in other
ways that do not require changes to
FINRA’s rules.10 Among other things,
FINRA and the CE Council will work
together to incorporate a variety of
instructional formats (including a
mobile-compatible format) and provide
firms with advance notice of Regulatory
Element topics as well as additional
resources and guidance to help firms
develop effective Firm Element training
programs.11
B. Transition to an Annual Regulatory
Element for Each Registration Category
Currently, FINRA Rule 1240(a)
initially requires a registered person to
complete the applicable Regulatory
Element within 120 days after the
person’s second registration anniversary
date and, thereafter, within 120 days
after every third registration anniversary
date.12 FINRA’s proposed rule change
would amend FINRA Rule 1240(a) and
Rule 1210.07 to require registered
persons to complete the Regulatory
Element of the CE Program annually by
December 31. Firms, however, would
have the flexibility to require their
registered persons to complete the
Regulatory Element sooner than
December 31, which would allow firms
to coordinate the timing of the
Regulatory Element with other training
requirements, including the Firm
Element.13 Similarly, the proposed rule
change would preserve FINRA’s ability
to extend the time by which a registered
person must complete the Regulatory
Element for good cause shown if
requested in writing and with
supporting documentation.14 Consistent
part on the CE Council’s September 2019
recommendations to enhance the CE Program. See
Notice, 86 FR at 33429.
10 See Notice, 86 FR at 33428.
11 See id.
12 See FINRA Rule 1240(a)(1).
13 See Notice, 86 FR at 33429. FINRA also stated
that individuals who would be registering as a
representative or principal for the first time on or
after the implementation date of the proposed rule
change would be required to complete their initial
Regulatory Element for that registration category in
the next calendar year following their registration.
In addition, subject to specified conditions,
individuals who would be reregistering as a
representative or principal on or after the
implementation date of the proposed rule change
would also be required to complete their initial
Regulatory Element for that registration category in
the next calendar year following their reregistration.
See id. at 33429.
14 See proposed Rule 1240(a)(2). See also Notice,
86 FR at 33429. FINRA may also grant conditional
examination waivers requiring individuals to
complete the Regulatory Element by a specified
date. Non-registered individuals who are
participating in the Financial Services Affiliate
Waiver Program (‘‘FSAWP’’) under Rule 1210.09
E:\FR\FM\27SEN1.SGM
27SEN1
]]>Agencies
[Federal Register Volume 86, Number 184 (Monday, September 27, 2021)]
[Notices]
[Pages 53355-53358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20817]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93095; File No. SR-ICEEU-2021-017]
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
September 21, 2021.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
[[Page 53356]]
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 15, 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.
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\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).
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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'')
relating to German natural gas futures contracts traded on the ICE
Endex market in connection with the merger of two existing natural gas
market areas in Germany, operated by NetConnect Germany GmbH & Co. and
NetConnect Germany Management GmbH (together ``NCG'') and GASPOOL
Balancing Services GmbH (``GASPOOL''), with the resulting combined
market area to be called the `Trading Hub Europe' (``THE''). The German
market area merger is currently planned to take effect on October 1,
2021 (at which time the amendments discussed herein would take effect).
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
In connection with the merger of the market areas of the German gas
transmission system operators with GASPOOL and NCG, ICE Clear Europe is
proposing certain amendments to its Delivery Procedures relating to
German natural gas futures contracts traded on ICE Endex, in order to
be consistent with related changes made by the exchange and to give
effect to the German market merger. As has been announced by ICE
Endex,\5\ the existing German GASPOOL Natural Gas Futures Contract will
cease to be listed with the September 2021 contract month, and the
existing German NCG Natural Gas Futures Contract will continue to trade
on ICE Endex and will be renamed the German THE Natural Gas Futures
Contract. Accordingly, ICE Clear Europe is proposing to delete the
content of Part G of the Delivery Procedures (relating to the ICE Endex
GASPOOL Natural Gas Futures Contracts) and replace it with ``[NOT
USED]''. The amendments would also remove the reference to ICE Endex
GASPOOL Natural Gas Futures Contracts in section 5.1. ICE Clear Europe
is also proposing to amend Part H of its Delivery Procedures to reflect
the change of the contract name to ICE Endex German THE Natural Gas
Futures instead of ICE Endex NCG Natural Gas Futures Contracts and make
certain other amendments related to the merger of market areas as
discussed herein. All references to ICE Endex NCG Natural Gas Futures
Contracts in the Delivery Procedures would be replaced with references
to ICE Endex German THE Natural Gas Futures Contracts and references to
NCG Rules would be replaced with references to THE Rules.
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\5\ See ICE Endex Circulars E21/026, E20/039 and E21/014,
available at https://www.theice.com/endex/circulars.
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In connection with the above, multiple additional conforming
amendments would be made throughout Part H to reference relevant THE
terms, documents and systems reflecting the combined German gas market
operation. Specifically, references to the term ``NCG'' would be
deleted and replaced with the term ``THE'', which would be defined
specifically to be Trading Hub Europe GmbH domiciled in Ratingen and
Berlin, the operator of the market area cooperation between all gas
network owners in Germany known as ``THE'' or any successor thereto.
References to the term, ``NCG's Communication Facilities'' would be
replaced with references to ``THE's Communication Facilities''. This
term would reference THE's electronic facility, which includes any
electronic facility which enables the submission of a Trade Nomination
to THE through the portal, any web-based communication channel
including the related functionality and connected systems provided by
THE, ``Communications Systems'' within the meaning of the THE Rules,
and access to information concerning the submitted Trade Nominations,
and any successor system thereto.
The term, ``THE Balancing Group Contract'', which means the THE's
Balancing Group Contract Terms and Conditions, would be added.
The term, ``THE Rules'', would replace the term ``NetConnect
Germany (NCG) Rules'', and would mean the Electricity and Gas Supply
Act, the Gas Network Access rules and THE Balancing Group Contract, and
any manuals, procedures, practices and directions of THE supporting its
operation.
A new Section 3.2 would be added to state explicitly that the
Transmission System, THE and THE's Communication Facilities constitute
``Delivery Facilities'' for the purposes of Rule 101 of the Rules. The
limitations on liability would also be expanded and clarified to
provide that neither the Buyer nor the Seller nor their Transferees or
Transferors would have any claim against the Clearing House for losses
resulting from (a) actions taken by the Clearing House pursuant to the
THE Rules or (b) technical issues, the condition or operation of or the
performance of the Transmission System, THE or THE's Communication
Facilities except as otherwise expressly provided in the ICE Endex
Rules (expanding upon more limited references in the current procedure
to the Transmission System or NCG).
The Delivery Timetable for routine deliveries set out in section 5
would be updated such that the submission of delivery intentions for
the ICE Endex German THE Natural Gas Futures and the nomination of the
Transferor/Transferee must be made by 11:30 CET instead of 13:00 CET.
A note would also be added stating that the delivery timetables for
routine and failed deliveries could be altered without notice at the
discretion of the Clearing House, consistent with other existing
provisions of Parts G and H, and clarifying that such modifications
could be made in the event of technical issues or other conditions
relating to THE, among other reasons.
[[Page 53357]]
(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 intended to update the Delivery Procedures to reflect
changes in the trading of natural gas futures contracts on ICE Endex in
light of the merger of the market areas of the German gas transmission
system operators with GASPOOL and NCG. The resulting ICE Endex German
THE Natural Gas Futures Contract will continue to be cleared by the
Clearing House in the substantially same manner as the current NCG
contract, with modifications to reflect the merger of the underlying
gas market, and will be supported by ICE Clear Europe's existing
financial resources, risk management, systems and operational
arrangements. Accordingly, ICE Clear Europe believes that its financial
resources, risk management, systems and operational arrangements are
sufficient to support clearing of such contracts and to manage the
risks associated with such contracts. As a result, in ICE Clear
Europe's view, the amendments would be consistent with the prompt and
accurate clearance and settlement of the contracts, 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\)
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\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).
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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 would incorporate into
the Delivery Procedures the amendments necessary to address the merger
of the market areas of the German gas transmission system operators
with GASPOOL and NCG into THE. The resulting ICE Endex German THE
Futures Contract will continue to be cleared in substantially the same
manner as the current NCG contract, supported by ICE Clear Europe's
existing financial resources, risk management, systems and operational
arrangements. The amendments would also remove Part G and related
references related to the GASPOOL contracts that will no longer be
traded on ICE Endex as a result of the underlying market merger. As a
result, ICE Clear Europe believes the amendments are consistent with
the requirements of Rule 17Ad-22(e)(10).\10\
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\9\ 17 CFR 240.17Ad-22(e)(10).
\10\ 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 merger of the market areas of the German gas transmission
system operators with GASPOOL and NCG. The terms of clearing are not
otherwise changing. 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 the
new 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 \11\ and paragraph (f) of Rule 19b-4 \12\
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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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, security-based swap submission or advance notice is consistent
with the Act. Comments may be submitted by any of the following
methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml) or
Send an email to [email protected]. Please include
File Number SR-ICEEU-2021-017 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-2021-017. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Europe and on ICE
Clear Europe's website at https://
[[Page 53358]]
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-2021-017 and should be
submitted on or before October 18, 2021.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-20817 Filed 9-24-21; 8:45 am]
BILLING CODE 8011-01-P
