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, 60665-60667 [2021-23919]
Download as PDF
<![CDATA[
Federal Register / Vol. 86, No. 210 / Wednesday, November 3, 2021 / Notices
A proposed rule change filed under
Rule 19b–4(f)(6) 17 normally does not
become operative prior to 30 days after
the date of the filing. However, Rule
19b–4(f)(6)(iii) 18 permits the
Commission to designate a shorter time
if such action is consistent with the
protection of investors and the public
interest. The Exchange has asked the
Commission to waive the 30-day
operative delay so that the proposal may
become operative immediately upon
filing. The Exchange states that waiver
of the 30-day operative delay will allow
it to extend the Program prior to its
expiration on November 1, 2021, and
maintain the status quo, thereby
reducing market disruption. The
Commission believes that waiving the
30-day operative delay is consistent
with the protection of investors and the
public interest as it will allow the
Program to continue uninterrupted,
thereby avoiding investor confusion that
could result from a temporary
interruption in the Program.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposed rule change as
operative upon filing.19
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
IV. Solicitation of Comments
khammond on DSKJM1Z7X2PROD with NOTICES
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:
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
17 17 CFR 240.19b–4(f)(6).
18 17 CFR 240.19b–4(f)(6)(iii).
19 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
VerDate Sep<11>2014
17:01 Nov 02, 2021
Jkt 256001
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–
CBOE–2021–063 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–CBOE–2021–063. 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–CBOE–2021–063 and
should be submitted on or before
November 24, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
J. Matthew DeLesDernier,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93443; File No. SR–ICEEU–
2021–019]
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
October 28, 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 October
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) thereunder,4 such that the
proposed rule change was immediately
effective upon filing with the
Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
(a) The principal purpose of the
proposed amendments is for ICE Clear
Europe to amend its amend Part GG of
its Delivery Procedures to update
certain documentation, timing and other
requirements relating the delivery under
ICE Futures Abu Dhabi Murban Crude
Oil Futures Contracts (‘‘Murban Crude
Oil Futures Contracts’’).
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.
[FR Doc. 2021–23931 Filed 11–2–21; 8:45 am]
1 15
BILLING CODE 8011–01–P
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).
2 17
20 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00053
Fmt 4703
Sfmt 4703
60665
E:\FR\FM\03NON1.SGM
03NON1
60666
Federal Register / Vol. 86, No. 210 / Wednesday, November 3, 2021 / Notices
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
khammond on DSKJM1Z7X2PROD with NOTICES
(a) Purpose
ICE Clear Europe is proposing to
amend Part GG of its Delivery
Procedures to clarify certain delivery
specifications relating to Murban Crude
Oil Futures Contracts. The proposed
changes are intended to reflect, and be
consistent with, the relevant contract
terms under ICE Futures Abu Dhabi
rules (and certain amendments being
made thereto). Specifically, as described
in detail below, the proposed
amendments would be made to the
following sections: (i) The delivery
timetable in paragraph 3, (ii) the
delivery vessel nomination table in
paragraph 4, and (iii) the delivery
documentation summary in paragraph
5. Other non-substantive typographical
and similar corrections would also be
made.
Delivery Timetable
The process for Delivery Range
Determinations would be amended to
provide a procedure in which a Buyer
may request a change to the agreed
Delivery Range, subject to the approval
of the Clearing House and the Terminal
Operator in their discretion by a
specified time in advance of the original
and modified Delivery Ranges.
Additionally, the changes would clarify
that the Terminal Operator may agree
with the Buyer to the early loading of
Murban Crude Oil into the Buyer’s
Vessel provided that any such early
loading would not take place earlier
than the first Terminal Loading Day of
the delivery month (in addition to the
existing requirement that early loading
not take place earlier than 48 hours
prior to the first day of the agreed
Delivery Range).
The proposed amendments would
also provide that on the Document
Receipt Day, if the Seller is unable to
provide the Clearing House (with copy
to the Buyer) by the required delivery
time with certain specified
documentation, it would be required to
provide a Letter of Indemnity in favor of
the Buyer and the Buyer would be
required to make payment against the
Letter of Indemnity (instead of the Letter
of Indemnity being required only if the
Buyer elected to make payment against
it). Further detail would be added
regarding the Buyer’s ability to request
that any such Letter of Indemnity be
countersigned by the Seller’s bank,
including providing a deadline by
which the request must be made. The
request would also need to specify the
reasons for such request and may not be
VerDate Sep<11>2014
17:01 Nov 02, 2021
Jkt 256001
based on frivolous or vexatious reasons.
If no notification is received by the
deadline, the Buyer would be deemed to
have agreed to make payment to the
Clearing House against the Letter of
Indemnity regardless of whether it was
countersigned by a bank.
Further, the proposed amendments
would provide that in the event that the
Buyer submits a valid request, the Seller
would be required to have the Letter of
Indemnity countersigned by a bank with
a credit rating equal or greater than the
minimum credit rating score as advised
by ICE Futures Abu Dhabi, unless the
Buyer agrees to an alternative bank and
notifies the Clearing House by a
specified deadline.
Delivery Vessel Nomination Table
The delivery vessel nomination table
would be updated to provide that
nominations must be received on the
fifth calendar day prior to the first day
of the Delivery Range (instead of the
sixth calendar day prior), consistent
with the exchange rules.
Delivery Documentation Summary
With respect to the Delivery
Confirmation Form, the proposed
amendments would remove as
unnecessary a requirement that such
form include the tender(s) against which
it is given. Conforming formatting
updates would also be made.
With respect to the Delivery Range
Nomination Form, the proposed
amendments would add that the Buyer’s
unique reference would be required to
be included in such form. Conforming
formatting updates would also be made.
With respect to the Vessel
Nomination Form, the proposed
amendments would add that
documentary instructions (for example,
a bill of lading mark-up) would be
required to be included in such form.
Conforming formatting updates would
also be made.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act 5
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 changes to
Part GG of the Delivery Procedures are
designed to clarify delivery procedures
relating to Murban Crude Oil Futures
Contracts and ensure consistency with
relevant exchange rules (including
amendments thereto). The amendments
to Part GG would clarify and provide
further detail with the determination of
delivery ranges, indemnity requirements
and certain other aspects as to the
timing and documentation required for
delivery. The amendments do not
otherwise change the terms and
conditions of Murban Crude Oil Futures
Contracts, and the contracts will
continue to be cleared by ICE Clear
Europe in the same manner as they are
currently. In ICE Clear Europe’s view,
the amendments are thus consistent
with the prompt and accurate clearance
and settlement of cleared contracts and
the protection of investors and the
public interest. (ICE Clear Europe would
not expect the amendments to affect the
safeguarding of securities and funds in
ICE Clear Europe’s custody or control or
for which it is responsible).
Accordingly, the amendments satisfy
the requirements of Section
17A(b)(3)(F).6
In addition, Rule 17Ad–22(e)(10) 7
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 clarify
certain delivery specifications for
Murban Crude Oil Futures Contracts
relating to the determination of delivery
ranges, certain indemnity requirements,
and certain other documentation and
timing matters, consistent with the
requirements of the exchange. The
amendments would not otherwise
change the manner in which the
contracts are cleared or in which
delivery is made, as supported by ICE
Clear Europe’s existing financial
resources, risk management, systems
and operational arrangements. The
amendments thus appropriately clarify
the role and responsibilities of the
Clearing House and Clearing Members
with respect to physical delivery. As a
result, ICE Clear Europe believes the
amendments are consistent with the
requirements of Rule 17Ad–22(e)(10).8
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed amendments would have any
6 15
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(10).
8 17 CFR 240.17Ad–22(e)(10).
7 17
5 15
PO 00000
U.S.C. 78q–1(b)(3)(F).
Frm 00054
Fmt 4703
Sfmt 4703
E:\FR\FM\03NON1.SGM
03NON1
Federal Register / Vol. 86, No. 210 / Wednesday, November 3, 2021 / Notices
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The amendments
are being adopted to update and clarify
the delivery specifications in Part GG of
the Delivery Procedures in connection
with Murban Crude Oil Futures
Contracts, and will not otherwise affect
the contract. ICE Clear Europe does not
expect that the proposed changes will
adversely affect access to clearing or the
ability of Clearing Members, their
customers or other market participants
to continue to clear contracts. ICE Clear
Europe also does not believe the
amendments would materially affect the
cost of clearing or otherwise impact
competition among Clearing Members
or other market participants or limit
market participants’ choices for
selecting clearing services. Accordingly,
ICE Clear Europe does not believe the
amendments would impose any burden
on competition not necessary or
appropriate in furtherance of the
purpose of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed 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 9 and paragraph (f) of Rule
19b–4 10 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.
khammond on DSKJM1Z7X2PROD with NOTICES
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–2021–019 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–2021–019. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s website at https://
www.theice.com/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–2021–019
and should be submitted on or before
November 24, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–23919 Filed 11–2–21; 8:45 am]
BILLING CODE 8011–01–P
9 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
10 17
VerDate Sep<11>2014
17:01 Nov 02, 2021
11 17
Jkt 256001
PO 00000
Frm 00055
Fmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93453; File No. SR–
CboeEDGX–2021–047]
Self-Regulatory Organizations; Cboe
EDGX Exchange, Inc.; Notice of Filing
and Immediate Effectiveness of a
Proposed Rule Change To Extend the
Pilot Programs in Connection With the
Listing and Trading of P.M.-Settled
Series on Certain Broad-Based Index
Options
October 28, 2021.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on October
25, 2021, Cboe EDGX Exchange, Inc.
(the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(the ‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the Exchange. The Exchange filed the
proposal as a ‘‘non-controversial’’
proposed rule change pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
Cboe EDGX Exchange, Inc. (the
‘‘Exchange’’ or ‘‘EDGX Options’’)
proposes to extend the pilot programs in
connection with the listing and trading
of P.M.-settled series on certain broadbased index options. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://markets.cboe.com/us/
options/regulation/rule_filings/edgx/),
at the Exchange’s Office of the
Secretary, and at the Commission’s
Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A)(iii).
4 17 CFR 240.19b–4(f)(6).
2 17
CFR 200.30–3(a)(12).
Sfmt 4703
60667
E:\FR\FM\03NON1.SGM
03NON1
]]>Agencies
[Federal Register Volume 86, Number 210 (Wednesday, November 3, 2021)]
[Notices]
[Pages 60665-60667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23919]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93443; File No. SR-ICEEU-2021-019]
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
October 28, 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 October 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)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
(a) The principal purpose of the proposed amendments is for ICE
Clear Europe to amend its amend Part GG of its Delivery Procedures to
update certain documentation, timing and other requirements relating
the delivery under ICE Futures Abu Dhabi Murban Crude Oil Futures
Contracts (``Murban Crude Oil Futures Contracts'').
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.
[[Page 60666]]
(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 Part GG of its Delivery
Procedures to clarify certain delivery specifications relating to
Murban Crude Oil Futures Contracts. The proposed changes are intended
to reflect, and be consistent with, the relevant contract terms under
ICE Futures Abu Dhabi rules (and certain amendments being made
thereto). Specifically, as described in detail below, the proposed
amendments would be made to the following sections: (i) The delivery
timetable in paragraph 3, (ii) the delivery vessel nomination table in
paragraph 4, and (iii) the delivery documentation summary in paragraph
5. Other non-substantive typographical and similar corrections would
also be made.
Delivery Timetable
The process for Delivery Range Determinations would be amended to
provide a procedure in which a Buyer may request a change to the agreed
Delivery Range, subject to the approval of the Clearing House and the
Terminal Operator in their discretion by a specified time in advance of
the original and modified Delivery Ranges. Additionally, the changes
would clarify that the Terminal Operator may agree with the Buyer to
the early loading of Murban Crude Oil into the Buyer's Vessel provided
that any such early loading would not take place earlier than the first
Terminal Loading Day of the delivery month (in addition to the existing
requirement that early loading not take place earlier than 48 hours
prior to the first day of the agreed Delivery Range).
The proposed amendments would also provide that on the Document
Receipt Day, if the Seller is unable to provide the Clearing House
(with copy to the Buyer) by the required delivery time with certain
specified documentation, it would be required to provide a Letter of
Indemnity in favor of the Buyer and the Buyer would be required to make
payment against the Letter of Indemnity (instead of the Letter of
Indemnity being required only if the Buyer elected to make payment
against it). Further detail would be added regarding the Buyer's
ability to request that any such Letter of Indemnity be countersigned
by the Seller's bank, including providing a deadline by which the
request must be made. The request would also need to specify the
reasons for such request and may not be based on frivolous or vexatious
reasons. If no notification is received by the deadline, the Buyer
would be deemed to have agreed to make payment to the Clearing House
against the Letter of Indemnity regardless of whether it was
countersigned by a bank.
Further, the proposed amendments would provide that in the event
that the Buyer submits a valid request, the Seller would be required to
have the Letter of Indemnity countersigned by a bank with a credit
rating equal or greater than the minimum credit rating score as advised
by ICE Futures Abu Dhabi, unless the Buyer agrees to an alternative
bank and notifies the Clearing House by a specified deadline.
Delivery Vessel Nomination Table
The delivery vessel nomination table would be updated to provide
that nominations must be received on the fifth calendar day prior to
the first day of the Delivery Range (instead of the sixth calendar day
prior), consistent with the exchange rules.
Delivery Documentation Summary
With respect to the Delivery Confirmation Form, the proposed
amendments would remove as unnecessary a requirement that such form
include the tender(s) against which it is given. Conforming formatting
updates would also be made.
With respect to the Delivery Range Nomination Form, the proposed
amendments would add that the Buyer's unique reference would be
required to be included in such form. Conforming formatting updates
would also be made.
With respect to the Vessel Nomination Form, the proposed amendments
would add that documentary instructions (for example, a bill of lading
mark-up) would be required to be included in such form. Conforming
formatting updates would also be made.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act \5\ 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
changes to Part GG of the Delivery Procedures are designed to clarify
delivery procedures relating to Murban Crude Oil Futures Contracts and
ensure consistency with relevant exchange rules (including amendments
thereto). The amendments to Part GG would clarify and provide further
detail with the determination of delivery ranges, indemnity
requirements and certain other aspects as to the timing and
documentation required for delivery. The amendments do not otherwise
change the terms and conditions of Murban Crude Oil Futures Contracts,
and the contracts will continue to be cleared by ICE Clear Europe in
the same manner as they are currently. In ICE Clear Europe's view, the
amendments are thus consistent with the prompt and accurate clearance
and settlement of cleared contracts and the protection of investors and
the public interest. (ICE Clear Europe would not expect the amendments
to affect the safeguarding of securities and funds in ICE Clear
Europe's custody or control or for which it is responsible).
Accordingly, the amendments satisfy the requirements of Section
17A(b)(3)(F).\6\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1(b)(3)(F).
\6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
In addition, Rule 17Ad-22(e)(10) \7\ 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 clarify certain
delivery specifications for Murban Crude Oil Futures Contracts relating
to the determination of delivery ranges, certain indemnity
requirements, and certain other documentation and timing matters,
consistent with the requirements of the exchange. The amendments would
not otherwise change the manner in which the contracts are cleared or
in which delivery is made, as supported by ICE Clear Europe's existing
financial resources, risk management, systems and operational
arrangements. The amendments thus appropriately clarify the role and
responsibilities of the Clearing House and Clearing Members with
respect to physical delivery. As a result, ICE Clear Europe believes
the amendments are consistent with the requirements of Rule 17Ad-
22(e)(10).\8\
---------------------------------------------------------------------------
\7\ 17 CFR 240.17Ad-22(e)(10).
\8\ 17 CFR 240.17Ad-22(e)(10).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed amendments would
have any
[[Page 60667]]
impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The amendments
are being adopted to update and clarify the delivery specifications in
Part GG of the Delivery Procedures in connection with Murban Crude Oil
Futures Contracts, and will not otherwise affect the contract. ICE
Clear Europe does not expect that the proposed changes will adversely
affect access to clearing or the ability of Clearing Members, their
customers or other market participants to continue to clear contracts.
ICE Clear Europe also does not believe the amendments would materially
affect the cost of clearing or otherwise impact competition among
Clearing Members or other market participants or limit market
participants' choices for selecting clearing services. Accordingly, ICE
Clear Europe does not believe the amendments would impose any burden on
competition not necessary or appropriate in furtherance of the purpose
of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed 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 \9\ and paragraph (f) of Rule 19b-4 \10\
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.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(3)(A).
\10\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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-2021-019 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-2021-019. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Europe and on ICE
Clear Europe's website at https://www.theice.com/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-2021-019 and should be
submitted on or before November 24, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
---------------------------------------------------------------------------
\11\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-23919 Filed 11-2-21; 8:45 am]
BILLING CODE 8011-01-P
