Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the Rate of Return on Euro Cash Margin and Guaranty Fund Deposits, 67735-67736 [2022-24414]
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Federal Register / Vol. 87, No. 216 / Wednesday, November 9, 2022 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.30
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–24413 Filed 11–8–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96226; File No. SR–ICEEU–
2022–021]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments to the Rate of Return on
Euro Cash Margin and Guaranty Fund
Deposits
November 3, 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 October
25, 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)(2) 4 thereunder, 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
khammond on DSKJM1Z7X2PROD with NOTICES
The principal purpose of the
proposed amendments is for ICE Clear
Europe to amend the rate of return paid
by the Clearing House on Euro (‘‘EUR’’)
cash margin and Guaranty Fund
deposits. The proposed amendments do
not involve any changes to the ICE Clear
Europe Clearing Rules or Procedures.5
30 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
5 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
Europe Clearing Rules.
1 15
VerDate Sep<11>2014
17:09 Nov 08, 2022
Jkt 259001
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
The purpose of the proposed rule
changes is for ICE Clear Europe to its
rate of return paid on EUR cash margin
and Guaranty Fund deposits applicable
to all Clearing Members for house and
customer accounts. ICE Clear Europe
pays a rate of return on cash deposited
by Clearing Members in respect of
margin and Guaranty Fund
requirements referred to as the ICE
Deposit Rate (the ‘‘IDR’’). The IDR is
calculated daily and applied to cash
balances held at the close of business on
the previous business day in respect of
US Dollar (‘‘USD’’), EUR and Pound
Sterling (‘‘GBP’’) deposits. The IDR is
calculated as the net income earned on
cash deposits in the relevant currency
(positive or negative) less a charge or
spread.
ICE Clear Europe is proposing to
reduce the spread for EUR balances
from 25 bps to 15 bps. The spread for
USD balances and GBP balances would
remain unchanged at 15 bps and 12 bps
respectively. ICE Clear Europe has
determined that in light of current
financial market conditions, including
central bank rates for Euro deposits and
repo rates available in the market, it is
appropriate to increase the net IDR on
EUR balances (through a lower spread).
ICE Clear Europe believes the change
would better align the relative costs and
benefits of using EUR to cover margin
and Guaranty Fund obligations with
otherwise available market rates and
facilitate the Clearing House’s ability to
maintain adequate EUR balances for
liquidity management purposes.
(b) Statutory Basis
ICE Clear Europe believes that the
proposed rule changes are consistent
with the requirements of the Act,
including Section 17A of the Act 6 and
6 15
PO 00000
U.S.C. 78q–1.
Frm 00067
Fmt 4703
Sfmt 4703
67735
regulations thereunder applicable to it.
In particular, Section 17A(b)(3)(D) of the
Act 7 requires that ‘‘[t]he rules of the
clearing agency provide for the
equitable allocation of reasonable dues,
fees and other charges among its
participants’’. ICE Clear Europe believes
that the IDR, as proposed to be
amended, would be reasonable and
appropriate in light of current market
conditions, including available repo
rates and central bank rates for EUR
deposits available in the market. The
proposed modifications would apply to
all Clearing Members and other market
participants who hold cash balances in
EUR. Further, ICE Clear Europe has
determined that the revised spread
would better align the relative costs and
benefits of using EUR with otherwise
available market rates for EUR balances
and thereby facilitate the Clearing
House’s liquidity management with
regard to EUR balances. As such, in ICE
Clear Europe’s view, the amendments
are consistent with the equitable
allocation of reasonable dues, fees and
other charges among its Clearing
Members and other market participants,
within the meaning of Section
17A(b)(3)(D) of the Act.8
The proposed amendments are also
consistent with the requirements of
Section 17A(b)(3)(F) of the Act 9 which
requires, among other things, that ‘‘[t]he
rules of a clearing agency [. . .] are not
designed to permit unfair
discrimination in the admission of
participants or among participants in
the use of the clearing agency’’. As
noted above, the EUR spread, as
proposed to be amended, would apply
on a currency level and would apply to
all Clearing Members. The amendments
would not otherwise change the ability
of Clearing Members to post EUR in
satisfaction of their obligations. As a
result, the amendments would not result
in any unfair discrimination among
Clearing Members in their use of the
Clearing House, within the meaning of
Section 17A(b)(3)(F) of the Act.10
(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
purpose of the Act. Although ICE Clear
Europe is revising a certain spread
applied to the IDR, as set forth herein,
it believes such changes are appropriate
7 15
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78q–1(b)(3)(D).
9 15 U.S.C. 78q–1(b)(3)(F).
10 15 U.S.C. 78q–1(b)(3)(F).
8 15
E:\FR\FM\09NON1.SGM
09NON1
67736
Federal Register / Vol. 87, No. 216 / Wednesday, November 9, 2022 / Notices
to align the costs and benefits of using
EUR with otherwise available market
rates for EUR balances, thereby
facilitating the Clearing House’s ability
to maintain EUR balances for liquidity
management purposes. Further, as
discussed above, the change to the
spread would be applied equally to all
Clearing Members who deposit cash
balances in EUR. ICE Clear Europe does
not believe that the amendments would
adversely affect the ability of such
Clearing Members or other market
participants generally to access clearing
services. Further, ICE Clear Europe
believes that the amendments would not
otherwise affect competition among
Clearing Members, adversely affect the
market for clearing services or limit
market participants’ choices for
obtaining clearing services. As a result,
ICE Clear Europe does not believe the
amendments would have any impact or
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes 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)(2) 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.
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–2022–021 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–2022–021. 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–2022–021
and should be submitted on or before
November 30, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–24414 Filed 11–8–22; 8:45 am]
BILLING CODE 8011–01–P
11 15
12 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
VerDate Sep<11>2014
17:09 Nov 08, 2022
13 17
Jkt 259001
PO 00000
Fmt 4703
[Release No. 34–96222; File No. SR–CBOE–
2022–054]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the Operation
of its SPXPM Pilot Program
November 3, 2022.
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
24, 2022, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) 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 ‘‘noncontroversial’’ 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 Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to extend
the operation of its SPXPM pilot
program. The text of the proposed rule
change is provided below. (additions are
italicized; deletions are [bracketed])
*
*
*
*
*
Rules of Cboe Exchange, Inc.
*
*
*
Sfmt 4703
*
*
Rule 4.13. Series of Index Options
*
*
*
*
*
Interpretations and Policies
.01–.12 No change.
.13 In addition to A.M.-settled S&P 500
Stock Index (‘‘SPX’’) options approved for
trading on the Exchange pursuant to Rule
4.13, the Exchange may also list options on
SPX whose exercise settlement value is
derived from closing prices on the last
trading day prior to expiration (P.M.-settled
third Friday-of-the-month SPX options
series). The Exchange may also list options
on the Mini-SPX Index (‘‘XSP’’) and MiniRUT Index (‘‘MRUT’’) whose exercise
settlement value is derived from closing
prices on the last trading day prior to
expiration (‘‘P.M.-settled’’). P.M.-settled third
Friday-of-the-month SPX options series and
P.M.-settled XSP and MRUT options will be
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).
Frm 00068
SECURITIES AND EXCHANGE
COMMISSION
E:\FR\FM\09NON1.SGM
09NON1
]]>Agencies
[Federal Register Volume 87, Number 216 (Wednesday, November 9, 2022)]
[Notices]
[Pages 67735-67736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24414]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96226; File No. SR-ICEEU-2022-021]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the Rate of Return on Euro Cash Margin and Guaranty
Fund Deposits
November 3, 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 October 25, 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)(2) \4\
thereunder, 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)(2).
---------------------------------------------------------------------------
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 the rate of return paid by the Clearing House on Euro
(``EUR'') cash margin and Guaranty Fund deposits. The proposed
amendments do not involve any changes to the ICE Clear Europe Clearing
Rules or Procedures.\5\
---------------------------------------------------------------------------
\5\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Clearing Rules.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
The purpose of the proposed rule changes is for ICE Clear Europe to
its rate of return paid on EUR cash margin and Guaranty Fund deposits
applicable to all Clearing Members for house and customer accounts. ICE
Clear Europe pays a rate of return on cash deposited by Clearing
Members in respect of margin and Guaranty Fund requirements referred to
as the ICE Deposit Rate (the ``IDR''). The IDR is calculated daily and
applied to cash balances held at the close of business on the previous
business day in respect of US Dollar (``USD''), EUR and Pound Sterling
(``GBP'') deposits. The IDR is calculated as the net income earned on
cash deposits in the relevant currency (positive or negative) less a
charge or spread.
ICE Clear Europe is proposing to reduce the spread for EUR balances
from 25 bps to 15 bps. The spread for USD balances and GBP balances
would remain unchanged at 15 bps and 12 bps respectively. ICE Clear
Europe has determined that in light of current financial market
conditions, including central bank rates for Euro deposits and repo
rates available in the market, it is appropriate to increase the net
IDR on EUR balances (through a lower spread). ICE Clear Europe believes
the change would better align the relative costs and benefits of using
EUR to cover margin and Guaranty Fund obligations with otherwise
available market rates and facilitate the Clearing House's ability to
maintain adequate EUR balances for liquidity management purposes.
(b) Statutory Basis
ICE Clear Europe believes that the proposed rule changes are
consistent with the requirements of the Act, including Section 17A of
the Act \6\ and regulations thereunder applicable to it. In particular,
Section 17A(b)(3)(D) of the Act \7\ requires that ``[t]he rules of the
clearing agency provide for the equitable allocation of reasonable
dues, fees and other charges among its participants''. ICE Clear Europe
believes that the IDR, as proposed to be amended, would be reasonable
and appropriate in light of current market conditions, including
available repo rates and central bank rates for EUR deposits available
in the market. The proposed modifications would apply to all Clearing
Members and other market participants who hold cash balances in EUR.
Further, ICE Clear Europe has determined that the revised spread would
better align the relative costs and benefits of using EUR with
otherwise available market rates for EUR balances and thereby
facilitate the Clearing House's liquidity management with regard to EUR
balances. As such, in ICE Clear Europe's view, the amendments are
consistent with the equitable allocation of reasonable dues, fees and
other charges among its Clearing Members and other market participants,
within the meaning of Section 17A(b)(3)(D) of the Act.\8\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1.
\7\ 15 U.S.C. 78q-1(b)(3)(D).
\8\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
The proposed amendments are also consistent with the requirements
of Section 17A(b)(3)(F) of the Act \9\ which requires, among other
things, that ``[t]he rules of a clearing agency [. . .] are not
designed to permit unfair discrimination in the admission of
participants or among participants in the use of the clearing agency''.
As noted above, the EUR spread, as proposed to be amended, would apply
on a currency level and would apply to all Clearing Members. The
amendments would not otherwise change the ability of Clearing Members
to post EUR in satisfaction of their obligations. As a result, the
amendments would not result in any unfair discrimination among Clearing
Members in their use of the Clearing House, within the meaning of
Section 17A(b)(3)(F) of the Act.\10\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1(b)(3)(F).
\10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
(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 purpose of the Act. Although ICE
Clear Europe is revising a certain spread applied to the IDR, as set
forth herein, it believes such changes are appropriate
[[Page 67736]]
to align the costs and benefits of using EUR with otherwise available
market rates for EUR balances, thereby facilitating the Clearing
House's ability to maintain EUR balances for liquidity management
purposes. Further, as discussed above, the change to the spread would
be applied equally to all Clearing Members who deposit cash balances in
EUR. ICE Clear Europe does not believe that the amendments would
adversely affect the ability of such Clearing Members or other market
participants generally to access clearing services. Further, ICE Clear
Europe believes that the amendments would not otherwise affect
competition among Clearing Members, adversely affect the market for
clearing services or limit market participants' choices for obtaining
clearing services. As a result, ICE Clear Europe does not believe the
amendments would have any impact or impose any burden on competition
that is not necessary or appropriate in furtherance of the purposes 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)(2) 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.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
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-2022-021 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-2022-021. 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-2022-021 and should be
submitted on or before November 30, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-24414 Filed 11-8-22; 8:45 am]
BILLING CODE 8011-01-P
