Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Relating to Amendments to the ICE Clear Europe Delivery Procedures, 17374-17376 [2022-06384]
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17374
Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices
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–CBOE–2021–071 on the subject line.
jspears on DSK121TN23PROD with NOTICES1
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–2021–071. 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–2021–071 and
should be submitted by April 18, 2022.
Rebuttal comments should be submitted
by May 2, 2022.
V. Accelerated Approval of Proposed
Rule Change, as Modified by
Amendment No. 2
The Commission finds good cause for
approving the proposed rule change, as
amended by Amendment No. 2, prior to
the 30th day after the date of
publication of notice in the Federal
Register. Amendment No. 2 provided
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technical and conforming changes to the
rule text to reflect CBOE rules recently
adopted by the Exchange.99 Amendment
No. 2 also provided additional detail on
several aspects of the proposal,
including the impact of the recently
adopted modified holiday trading
schedule 100 on Curb and notifications
relating to catastrophic error reviews.
The Exchange also further discussed
why it may be appropriate to resume
trading during GTH and Curb after a
trading halt and clarified the application
of CBOE Rule 5.22 during Curb. As
described above, the Commission
believes that Amendment No. 2 does not
change the substance of the proposed
rule change, but merely adds detail and
clarification to several items of the
proposal and makes necessary
conforming changes to reflect the
recently approved modified holiday
trading schedule, as well as makes
necessary updates to its proposed
rules.101 Accordingly, the Commission
finds good cause for approving the
proposed rule change, as amended, on
an accelerated basis, pursuant to Section
19(b)(2) of the Act.102
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,103 that the
proposed rule change, as modified by
Amendment No. 2 (SR–CBOE–2021–
071) be, and hereby is, approved on an
accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.104
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–06383 Filed 3–25–22; 8:45 am]
BILLING CODE 8011–01–P
99 See Securities Exchange Act Release Nos.
94253 (February 15, 2022), 87 FR 9729 (February
22, 2022) (SR–CBOE–2021–068) (Order Granting
Approval of a Proposed Rule Change to Adopt a
Modified Trading Schedule for Holidays)
(‘‘Modified Holiday Trading Schedule Order’’);
93799 (December 16, 2021), 86 FR 72654 (December
22, 2021) (SR–CBOE–2021–074) (Notice of Filing
and Immediate Effectiveness of a Proposed Rule
Change to Make Juneteenth National Independence
Day a Holiday of the Exchange); and 93646
(November 22, 2021), 86 FR 67777 (November 29,
2021) (SR–CBOE–2021–067) (Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
to Add a Held Order Instruction). The Exchange
also corrected a marking error in the text of CBOE
Rule 5.71(b)(2).
100 See Modified Holiday Trading Schedule
Order, supra note 99.
101 See supra note 99.
102 15 U.S.C. 78s(b)(2).
103 Id.
104 17 CFR 200.30–3(a)(12).
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94485; File No. SR–ICEEU–
2022–007]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change, as Modified by
Amendment No. 1, Relating to
Amendments to the ICE Clear Europe
Delivery Procedures
March 22, 2022.
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 March 8,
2022, 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) thereunder,4 such that the
proposed rule change was immediately
effective upon filing with the
Commission. On March 16, 2022, ICE
Clear Europe filed Amendment No. 1 to
the proposed rule change to make
certain clarifications about the purpose
of and statutory basis for the proposed
rule changes.5 The Commission is
publishing this notice to solicit
comments on the proposed rule change,
as modified by Amendment No. 1
(hereafter 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 (‘‘Delivery Procedures’’ or
‘‘Procedures’’) to amend Part CC thereof
(‘‘Part CC’’) to revise certain timingrelated delivery specifications
applicable to Midland West Texas
Intermediate American Gulf Coast
Crude Oil Futures (‘‘Midland WTI
Contracts’’).6
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).
5 In Amendment No. 1, ICEEU expanded the
description of the expected effect of the proposed
changes as well as the basis for the proposed
changes under the relevant law; however, the
substance of the proposal is unchanged.
6 Capitalized terms used but not defined herein
have the meanings specified in the Delivery
Procedures or, if not defined therein, the ICE Clear
Europe Clearing Rules.
2 17
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Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices
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
jspears on DSK121TN23PROD with NOTICES1
(a) Purpose
ICE Clear Europe is proposing to
amend Part CC of the Delivery
Procedures to revise certain delivery
specifications applicable to Midland
WTI Contracts. Specifically, with
respect to Exchange for Physicals
(EFPs), the amendments would extend
the deadline for EFPs to be reported to
any time after the close of trading until
13:00 CT/19:00 LPT on the next
Business Day following the Last Trading
Day instead of (09:00 CT/15:00 LPT).
This change would expand the
availability of the reporting deadline to
all EFPs, and not just those that are
executed on the Last Trading Day. The
Clearing House has determined that this
adjustment reflects the Clearing House’s
current practice. Conforming timing
updates would also be made to the
Delivery Timetable.
The amendments would also adjust
the deadline for Delivery Confirmation
Forms to 14:00 CT/20:00 LPT on the
Business Day following the Last Trading
Day (rather than 10:00 CT/16:00 LPT).
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the Delivery
Procedures are consistent with the
requirements of Section 17A of the Act 7
and the regulations thereunder
applicable to it. In particular, Section
17A(b)(3)(F) of the Act 8 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
the Delivery Procedures are designed to
amend certain deadlines under the
delivery procedures, for Midland WTI
Contracts, to give Clearing Members
more time to facilitate settlement and
thereby permit more up-to-date
information to be available at the time
of reporting EFPs. The amendments
would not otherwise affect the manner
in which Midland WTI Contracts are
cleared and settled. 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.9 (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).10)
In addition, Rule 17Ad–22(e)(10) 11
provides that ‘‘[e]ach covered clearing
agency shall establish, implement,
maintain and enforce written policies
and procedures reasonable designed to,
as applicable [. . .] 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 amend
certain deadlines under the Delivery
Procedures applicable to the settlement
of Midland WTI Contracts. Clearance of
the Midland WTI Contracts would not
otherwise be affected. 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).12
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed amendments would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The proposed
amendments to the Delivery Procedures
are intended to extend certain deadlines
under the Delivery Procedures
applicable to the delivery of Midland
9 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(F).
11 17 CFR 240.17Ad–22(e)(10).
12 17 CFR 240.17Ad–22(e)(10).
WTI Contracts. 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 and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 13 and paragraph (f) of Rule
19b–4 14 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–2022–007 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
10 15
7 15
8 15
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
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17375
13 15
14 17
E:\FR\FM\28MRN1.SGM
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
28MRN1
17376
Federal Register / Vol. 87, No. 59 / Monday, March 28, 2022 / Notices
All submissions should refer to File
Number SR–ICEEU–2022–007. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
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–2022–007
and should be submitted on or before
April 18, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–06384 Filed 3–25–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
jspears on DSK121TN23PROD with NOTICES1
[Release No. 34–94490; File No. SR–
NYSEArca–2022–13]
Self-Regulatory Organizations; NYSE
Arca, Inc.; Notice of Filing of Proposed
Rule Change To Amend Rule 7.31–
E(h)(3)
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on March 9,
2022, NYSE Arca, Inc. (‘‘NYSE Arca’’ or
the ‘‘Exchange’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I and II
below, which Items have been prepared
by the self-regulatory organization. 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
The Exchange proposes to amend
Rule 7.31–E(h)(3) with respect to
Discretionary Pegged Orders. The
proposed change is available on the
Exchange’s website at www.nyse.com, at
the principal office of the Exchange, 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
self-regulatory organization 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 those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 7.31–E(h)(3) to modify certain
factors relevant to the quote instability
calculation for Discretionary Pegged
Orders. Specifically, the Exchange
proposes to amend Rule 7.31–
E(h)(3)(D)(i)(D)(1)(a), which sets forth
the quote stability coefficients. Under
Rule 7.31–E(h)(3)(D)(i)(D)(3), the
Exchange may modify the quote
stability coefficients at any time, subject
to a filing of a proposed rule change.
The Exchange proposes such changes in
this rule filing.
Discretionary Pegged Orders
March 22, 2022.
19(b)(1) 1
Pursuant to Section
of the
Securities Exchange Act of 1934
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
Rule 7.31–E(h)(3) provides for
Discretionary Pegged Orders, which are
15 17
2 15
1 15
3 17
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U.S.C. 78a.
CFR 240.19b–4.
Frm 00115
Fmt 4703
Sfmt 4703
Pegged Orders 4 that may exercise price
discretion from their working price to a
discretionary price in order to trade
with contra-side orders on the NYSE
Arca Book, except during periods of
quote instability as defined in Rule
7.31–E(h)(3)(D).
Rule 7.31–E(h)(3)(D) provides that the
Exchange uses a quote instability
calculation to assess a security’s ‘‘quote
instability factor,’’ or the probability of
an imminent change to the current PBB
to a lower price or PBO to a higher
price.5 When quoting activity in a
security meets predefined criteria and
the quote instability factor calculated is
greater than the Exchange’s defined
‘‘quote instability threshold,’’ the
Exchange treats the quote as unstable
(‘‘quote instability’’ or a ‘‘crumbling
quote’’).
Rule 7.31–E(h)(3)(D)(i) provides that
the Exchange determines a quote to be
unstable when, among other factors, the
quote instability factor result from the
quote stability calculation is greater
than the quote instability threshold. To
perform the quote stability calculation
and determine the quote instability
factor, the Exchange employs a fixed
formula utilizing the quote stability
coefficients and quote stability variables
set forth in Rule 7.31–
E(h)(3)(D)(i)(D)(1)(a) and Rule 7.31–
E(h)(3)(D)(i)(D)(1)(b), respectively.
Proposed Rule Change
The Exchange proposes to update the
quote stability coefficients used in the
quote instability calculation, which
have not been modified since Rule 7.31–
E(h)(3) was adopted.6 The proposed
changes are intended to update the
quote stability coefficients so that they
are based on current market data and
better calibrated to function on an
exchange without an intentional delay
mechanism and with deeper liquidity
4 A Pegged Order is a Limit Order that does not
route with a working price that is pegged to a
dynamic reference price. If the designated reference
price is higher (lower) than the limit price of a
Pegged Order to buy (sell), the working price will
be the limit price of the order. See Rule 7.31–E(h).
5 NYSE Arca Rule 1.1 defines PBB as the highest
Protected Bid and PBO as the lowest Protected
Offer. Rule 1.1 also provides that ‘‘PBBO’’ means
the Best Protected Bid and the Best Protected Offer.
6 The Exchange adopted Rule 7.31–E(h)(3)
governing Discretionary Pegged Orders in 2016 but
has not yet announced the implementation of the
order type. See Securities Exchange Act Release No.
78181 (June 28, 2016), 81 FR 43297 (July 1, 2016)
(SR–NYSEArca–2016–44) (Notice of Filing of
Amendment No. 1, and Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified
by Amendment No. 1, to Add a New Discretionary
Pegged Order). Accordingly, the current quote
stability coefficients have not been in operation on
the Exchange.
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]]>Agencies
[Federal Register Volume 87, Number 59 (Monday, March 28, 2022)]
[Notices]
[Pages 17374-17376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06384]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94485; File No. SR-ICEEU-2022-007]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change, as
Modified by Amendment No. 1, Relating to Amendments to the ICE Clear
Europe Delivery Procedures
March 22, 2022.
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 March 8, 2022, 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)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. On March 16, 2022, ICE Clear
Europe filed Amendment No. 1 to the proposed rule change to make
certain clarifications about the purpose of and statutory basis for the
proposed rule changes.\5\ The Commission is publishing this notice to
solicit comments on the proposed rule change, as modified by Amendment
No. 1 (hereafter 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).
\5\ In Amendment No. 1, ICEEU expanded the description of the
expected effect of the proposed changes as well as the basis for the
proposed changes under the relevant law; however, the substance of
the proposal is unchanged.
---------------------------------------------------------------------------
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 (``Delivery Procedures'' or
``Procedures'') to amend Part CC thereof (``Part CC'') to revise
certain timing-related delivery specifications applicable to Midland
West Texas Intermediate American Gulf Coast Crude Oil Futures
(``Midland WTI Contracts'').\6\
---------------------------------------------------------------------------
\6\ Capitalized terms used but not defined herein have the
meanings specified in the Delivery Procedures or, if not defined
therein, the ICE Clear Europe Clearing Rules.
---------------------------------------------------------------------------
[[Page 17375]]
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 Part CC of the Delivery
Procedures to revise certain delivery specifications applicable to
Midland WTI Contracts. Specifically, with respect to Exchange for
Physicals (EFPs), the amendments would extend the deadline for EFPs to
be reported to any time after the close of trading until 13:00 CT/19:00
LPT on the next Business Day following the Last Trading Day instead of
(09:00 CT/15:00 LPT). This change would expand the availability of the
reporting deadline to all EFPs, and not just those that are executed on
the Last Trading Day. The Clearing House has determined that this
adjustment reflects the Clearing House's current practice. Conforming
timing updates would also be made to the Delivery Timetable.
The amendments would also adjust the deadline for Delivery
Confirmation Forms to 14:00 CT/20:00 LPT on the Business Day following
the Last Trading Day (rather than 10:00 CT/16:00 LPT).
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Delivery Procedures are consistent with the requirements of Section 17A
of the Act \7\ and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(F) of the Act \8\ 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 the Delivery Procedures are designed to amend certain
deadlines under the delivery procedures, for Midland WTI Contracts, to
give Clearing Members more time to facilitate settlement and thereby
permit more up-to-date information to be available at the time of
reporting EFPs. The amendments would not otherwise affect the manner in
which Midland WTI Contracts are cleared and settled. 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.\9\ (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).\10\)
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78q-1.
\8\ 15 U.S.C. 78q-1(b)(3)(F).
\9\ 15 U.S.C. 78q-1(b)(3)(F).
\10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
In addition, Rule 17Ad-22(e)(10) \11\ provides that ``[e]ach
covered clearing agency shall establish, implement, maintain and
enforce written policies and procedures reasonable designed to, as
applicable [. . .] 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 amend certain
deadlines under the Delivery Procedures applicable to the settlement of
Midland WTI Contracts. Clearance of the Midland WTI Contracts would not
otherwise be affected. 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).\12\
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\11\ 17 CFR 240.17Ad-22(e)(10).
\12\ 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 amendments would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
amendments to the Delivery Procedures are intended to extend certain
deadlines under the Delivery Procedures applicable to the delivery of
Midland WTI Contracts. 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 and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \13\ and paragraph (f) of Rule 19b-4 \14\
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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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 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-2022-007 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
[[Page 17376]]
All submissions should refer to File Number SR-ICEEU-2022-007. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use 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-2022-007 and should be
submitted on or before April 18, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06384 Filed 3-25-22; 8:45 am]
BILLING CODE 8011-01-P
