Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the Finance Procedures, 78169-78171 [2022-27650]
Download as PDF
<![CDATA[
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
necessary or appropriate in furtherance
of the purposes of the Act. In fact, the
Exchange believes that the proposal will
have a positive effect on competition
because, by providing Entering Firms
additional means to monitor and control
risk, the proposed rule will increase
confidence in the proper functioning of
the markets. The Exchange believes the
proposed additional Pre-Trade Risk
Controls will assist Entering Firms in
managing their financial exposure
which, in turn, could enhance the
integrity of trading on the securities
markets and help to assure the stability
of the financial system. As a result, the
level of competition should increase as
public confidence in the markets is
solidified.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 22 and Rule
19b–4(f)(6) thereunder.23 Because the
proposed rule change does not: (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
prior to 30 days from the date on which
it was filed, or such shorter time as the
Commission may designate, if
consistent with the protection of
investors and the public interest, the
proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act and Rule 19b–4(f)(6)(iii)
thereunder.24
At any time within 60 days of the
filing of such 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
lotter on DSK11XQN23PROD with NOTICES1
22 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
24 17 CFR 240.19b–4(f)(6)(iii). In addition, Rule
19b–4(f)(6) requires a self-regulatory organization to
give the Commission written notice of its intent to
file 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.
23 17
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
under Section 19(b)(2)(B) 25 of the Act to
determine whether the proposed rule
change should be approved or
disapproved.
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–
NYSEARCA–2022–82 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–NYSEARCA–2022–82. 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–NYSEARCA–2022–82 and
25 15
PO 00000
U.S.C. 78s(b)(2)(B).
Frm 00128
Fmt 4703
Sfmt 4703
78169
should be submitted on or before
January 11, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.26
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–27651 Filed 12–20–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96503; File No. SR–ICEEU–
2022–026]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments to the Finance
Procedures
December 15, 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 December
6, 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) 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
ICE Clear Europe Limited (‘‘ICE Clear
Europe’’ or the ‘‘Clearing House’’)
proposes to amend its Finance
Procedures in order to align the timing
at which monthly interest payments and
monthly transaction fees are processed.
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
26 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4).
1 15
E:\FR\FM\21DEN1.SGM
21DEN1
78170
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
ICE Clear Europe is proposing to
amend its Finance Procedures to align
the timing for payment of the return on
cash margin and Guaranty Fund
deposits of Clearing Members with that
for payment of monthly transaction fees.
Under existing Finance Procedures
paragraph 6.1(i)(vi), transaction fees are
payable through the overnight payment
call or return by the fifth Business Day
after the end of each month. ICE Clear
Europe is proposing to amend Finance
Procedures paragraph 6.1(i)(iv) to
provide that interest on margin and
Guaranty Fund contributions will be
credited by the fifth Business Day after
the end of each month, rather than the
fourth Business Day after the end of
each month. ICE Clear Europe proposes
to implement the change on or about
December 14, 2022.
ICE Clear Europe believes that
processing interest and transaction fees
on the same day as part of the same net
overnight payment calculation will
reduce the number and size of overall
cash flows and thus improve overall
payment efficiency. The change will
also reduce unnecessary potential
liquidity demands on the Clearing
House and Clearing Members to the
extent of offsetting interest and
transaction fees and reduce the risk to
the Clearing House of a failure or default
in payment of transaction fees by a
Clearing Member after payment by the
Clearing House of interest. ICE Clear
Europe believes that the benefits of
improving payment efficiency in this
manner will be more significant in the
current rising interest rate environment,
as increases in ICE Clear Europe’s ICE
Deposit Rate have resulted in an
increase in monthly interest payments
due from ICE Clear Europe to Clearing
Members.
lotter on DSK11XQN23PROD with NOTICES1
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the Finance
Procedures are consistent with the
requirements of Section 17A 5 of the Act
and the regulations thereunder
5 15
U.S.C. 78q–1.
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
applicable to it. In particular, Section
17A(b)(3)(D) of the Act 6 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 proposal is a
reasonable and appropriate change to
the timing of payment of return on cash
margin and Guaranty Fund
contributions, in order to enhance
overall settlement efficiency. This is
particularly so, in ICE Clear Europe’s
view, in light of the current interest rate
environment which has led to increases
in the ICE Deposit Rate. The amendment
also reduces liquidity demands and
reduces the risk of a payment failure or
default with respect to the payment of
transaction fees. 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.7
The proposed amendments are also
consistent with the requirements of
Section 17A(b)(3)(F) of the Act 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.’’ 8 As
noted above, the Finance Procedures, as
proposed to be amended, would apply
to all Clearing Members and the
amendments would not otherwise the
rights or obligations of the Clearing
House or Clearing Members with respect
to the payment of transaction fees or the
payment of interest on cash margin and
Guaranty Fund contributions. Section
17A(b)(3)(F) also requires that the ‘‘[t]he
rules of a clearing agency [. . .] are
designed to promote the prompt and
accurate clearance and settlement of
securities transactions and, to the extent
applicable, derivative agreements,
contracts and transactions, to assure the
safeguarding of securities or funds
which are in the custody or control of
the clearing agency or for which it is
responsible . . . and, in general, to
protect investors and the public
interest.’’ 9 As set forth above, ICE Clear
Europe believes the amendments will
enhance payment efficiency and reduce
payment risks. As such, the
amendments, in ICE Clear Europe’s
view, would be consistent with prompt
and accurate clearance and settlement,
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78q–1(b)(3)(D).
8 15 U.S.C. 78q–1(b)(3)(F).
9 15 U.S.C. 78q–1(b)(3)(F).
would not adversely affect the
safeguarding of securities and funds
which are in the custody or control of
ICE Clear Europe or for which it is
responsible, and generally would be
consistent with the public interest in the
sound operation of the Clearing House.
As a result, the amendments are
consistent with the requirements 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 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 Finance Procedures
are intended to reduce the number of
cash flows, improve payment efficiency
and to reduce the (low) risk of payment
failure with respect to transaction fees,
by changing the interest payment date to
be consistent to that of the transaction
fee payment date. The amendments
would not otherwise change the rights
or obligations of market participants.
ICE Clear Europe does not believe the
amendments would adversely affect
competition among Clearing Members,
materially affect the cost of clearing,
adversely affect access to clearing in the
new contracts for Clearing Members or
their customers, or otherwise adversely
affect competition in clearing services.
Accordingly, ICE Clear Europe does not
believe that the amendments would
impose any impact or burden on
competition that is not appropriate in
furtherance of the purpose of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed amendments have not been
solicited or received by ICE Clear
Europe. ICE Clear Europe will notify the
Commission of any comments received
with respect to the proposed rule
change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and paragraph (f) of Rule
19b–4 12 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
6 15
7 15
PO 00000
Frm 00129
Fmt 4703
Sfmt 4703
10 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78s(b)(3)(A).
12 17 CFR 240.19b–4(f).
11 15
E:\FR\FM\21DEN1.SGM
21DEN1
Federal Register / Vol. 87, No. 244 / Wednesday, December 21, 2022 / Notices
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:
lotter on DSK11XQN23PROD with NOTICES1
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–2022–026 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–2022–026. 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
VerDate Sep<11>2014
19:56 Dec 20, 2022
Jkt 259001
to File Number SR–ICEEU–2022–026
and should be submitted on or before
January 11, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022–27650 Filed 12–20–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96502; File No. SR–BOX–
2022–31]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend IM–8050–3 To
Establish Functionality That Will Reject
Market Maker Quotes When Those
Quotes Would Otherwise Lock or
Cross the National Best Bid or Offer
December 15, 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 December
6, 2022, BOX Exchange LLC (‘‘BOX’’ or
‘‘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
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend IM–
8050–3 to establish functionality that
will reject Market Maker 3 quotes when
those quotes would otherwise lock or
cross the National Best Bid or Offer
(‘‘NBBO’’).4 The text of the proposed
rule change is available from the
principal office of the Exchange, at the
Commission’s Public Reference Room
and also on the Exchange’s internet
website at https://
rules.boxexchange.com/rulefilings.
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Market Makers make markets in options
contracts traded on the Exchange and are vested
with the rights and responsibilities specified in the
BOX Rule 8000 Series. See BOX Rule 100(a)(31).
4 NBBO is defined as the national best bid or
offer. See BOX Rule 100(a)(34).
1 15
PO 00000
Frm 00130
Fmt 4703
Sfmt 4703
78171
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 these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The purpose of the proposed rule
change is to amend Rule IM–8050–3 to
establish functionality that will
automatically reject a Market Maker
quote that would otherwise lock or cross
the NBBO.
Background
Currently, all Market Maker quotes
received on BOX after the opening of
the market will not execute against a
resting order or quote on the BOX
Book.5 However, if there is no BOX
Book for a particular option or if the
BOX Book is inferior to the NBBO, a
Market Maker quote could display at a
price that locks or crosses the NBBO.6
This proposal is designed to prevent
such occurrences. The following
examples demonstrate the current
functionality and interaction of Market
Maker quotes, defined as a bid and offer,
with the BOX Book depending on
whether the BOX Book is on the NBBO:
Example 1: Assume that the BOX
Book in an option is $1.00 bid and
offered at $1.10, hereinafter expressed
as 1.00/1.10, and the NBBO is 1.00/1.10.
A Market Maker quote of 1.10/1.20
would remove liquidity from the BOX
5 See
BOX Rule IM–8050–3(a).
Exchange has policies and procedures in
place to ensure Participant compliance with Rule
15020 (Locked and Crossed Markets). Rule 15020
provides that, absent an exception, Participants
shall reasonably avoid displaying, and shall not
engage in a pattern or practice of displaying, any
Quotations that lock or cross a Protected Quotation.
BOX Exchange surveils for instances where a BOX
Participant, including a Market Maker, displays a
quotation which locks or crosses the NBBO without
taking corrective action in a timely manner.
Additionally, violations of Rule 15020 are subject
to disciplinary action as detailed in the Exchange’s
minor rule violation plan (‘‘MRVP’’). See Rule
12140(d)(12).
6 BOX
E:\FR\FM\21DEN1.SGM
21DEN1
]]>Agencies
[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78169-78171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27650]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96503; File No. SR-ICEEU-2022-026]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the Finance Procedures
December 15, 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 December 6, 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)
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
ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to amend its Finance Procedures in order to align the
timing at which monthly interest payments and monthly transaction fees
are processed.
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
[[Page 78170]]
any comments it received on the proposed rule change. The text of these
statements may be examined at the places specified in Item IV below.
ICE Clear Europe has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
ICE Clear Europe is proposing to amend its Finance Procedures to
align the timing for payment of the return on cash margin and Guaranty
Fund deposits of Clearing Members with that for payment of monthly
transaction fees. Under existing Finance Procedures paragraph
6.1(i)(vi), transaction fees are payable through the overnight payment
call or return by the fifth Business Day after the end of each month.
ICE Clear Europe is proposing to amend Finance Procedures paragraph
6.1(i)(iv) to provide that interest on margin and Guaranty Fund
contributions will be credited by the fifth Business Day after the end
of each month, rather than the fourth Business Day after the end of
each month. ICE Clear Europe proposes to implement the change on or
about December 14, 2022.
ICE Clear Europe believes that processing interest and transaction
fees on the same day as part of the same net overnight payment
calculation will reduce the number and size of overall cash flows and
thus improve overall payment efficiency. The change will also reduce
unnecessary potential liquidity demands on the Clearing House and
Clearing Members to the extent of offsetting interest and transaction
fees and reduce the risk to the Clearing House of a failure or default
in payment of transaction fees by a Clearing Member after payment by
the Clearing House of interest. ICE Clear Europe believes that the
benefits of improving payment efficiency in this manner will be more
significant in the current rising interest rate environment, as
increases in ICE Clear Europe's ICE Deposit Rate have resulted in an
increase in monthly interest payments due from ICE Clear Europe to
Clearing Members.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Finance Procedures are consistent with the requirements of Section 17A
\5\ of the Act and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(D) of the Act \6\ 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 proposal is a reasonable and appropriate
change to the timing of payment of return on cash margin and Guaranty
Fund contributions, in order to enhance overall settlement efficiency.
This is particularly so, in ICE Clear Europe's view, in light of the
current interest rate environment which has led to increases in the ICE
Deposit Rate. The amendment also reduces liquidity demands and reduces
the risk of a payment failure or default with respect to the payment of
transaction fees. 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.\7\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78q-1(b)(3)(D).
\7\ 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 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.'' \8\ As noted above,
the Finance Procedures, as proposed to be amended, would apply to all
Clearing Members and the amendments would not otherwise the rights or
obligations of the Clearing House or Clearing Members with respect to
the payment of transaction fees or the payment of interest on cash
margin and Guaranty Fund contributions. Section 17A(b)(3)(F) also
requires that the ``[t]he rules of a clearing agency [. . .] are
designed to promote the prompt and accurate clearance and settlement of
securities transactions and, to the extent applicable, derivative
agreements, contracts and transactions, to assure the safeguarding of
securities or funds which are in the custody or control of the clearing
agency or for which it is responsible . . . and, in general, to protect
investors and the public interest.'' \9\ As set forth above, ICE Clear
Europe believes the amendments will enhance payment efficiency and
reduce payment risks. As such, the amendments, in ICE Clear Europe's
view, would be consistent with prompt and accurate clearance and
settlement, would not adversely affect the safeguarding of securities
and funds which are in the custody or control of ICE Clear Europe or
for which it is responsible, and generally would be consistent with the
public interest in the sound operation of the Clearing House. As a
result, the amendments are consistent with the requirements of Section
17A(b)(3)(F) of the Act.\10\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
(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 Finance Procedures are intended to reduce the number
of cash flows, improve payment efficiency and to reduce the (low) risk
of payment failure with respect to transaction fees, by changing the
interest payment date to be consistent to that of the transaction fee
payment date. The amendments would not otherwise change the rights or
obligations of market participants. ICE Clear Europe does not believe
the amendments would adversely affect competition among Clearing
Members, materially affect the cost of clearing, adversely affect
access to clearing in the new contracts for Clearing Members or their
customers, or otherwise adversely affect competition in clearing
services. Accordingly, ICE Clear Europe does not believe that the
amendments would impose any impact or burden on competition that is not
appropriate in furtherance of the purpose of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed amendments have not been
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any comments received with respect to the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if
[[Page 78171]]
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).
---------------------------------------------------------------------------
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-2022-026 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-2022-026. 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-2022-026 and should be
submitted on or before January 11, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------
\13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-27650 Filed 12-20-22; 8:45 am]
BILLING CODE 8011-01-P
