Self-Regulatory Organizations; LCH SA; Notice of Filing and Immediate Effectiveness of Proposed Rule Change, as Modified by Amendment No. 1, Relating to the CDSClear Fee Grid for 2023, 4271-4275 [2023-01276]
Download as PDF
<![CDATA[
Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
warranting a permanent SPXPM
Program. The Exchange believes that,
for the period that P.M.-settled SPX
options have been in operation as pilot
programs, they have provided investors
with a desirable product with which to
trade and wishes to permanently offer
this product to investors. Furthermore,
during the pilot period, the Exchange
has not observed any significant adverse
market effects nor identified any
regulatory concerns as a result of the
SPXPM Program, and, as such, the
continuation of the SPXPM Program as
a pilot, including the gathering,
submission and review of the pilot
reports and data, is no longer
necessary—a permanent SPXPM
Program will allow the Exchange to
otherwise allocate time and resources to
other industry initiatives.
The Exchange further does not believe
that making the SPXPM Program
permanent will impose any burden on
intermarket competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because it
applies to a class of options listed only
for trading on Cboe Options. The
Exchange notes that other exchanges are
free to and do offer competing products.
To the extent that the permanent
offering and continued trading of
SPXPM options may make Cboe Options
a more attractive marketplace to market
participants at other exchanges, such
market participants may elect to become
Cboe Options market participants.
tkelley on DSK125TN23PROD with NOTICES
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the Exchange consents, the Commission
will:
A. by order approve or disapprove
such proposed rule change, or
B. institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
VerDate Sep<11>2014
19:17 Jan 23, 2023
Jkt 259001
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–
CBOE–2023–005 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CBOE–2023–005. 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–2023–005, and
should be submitted on or before
February 14, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.46
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01260 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
46
PO 00000
17 CFR 200.30–3(a)(12).
Frm 00121
Fmt 4703
Sfmt 4703
4271
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96700; File No. SR–LCH
SA–2023–002]
Self-Regulatory Organizations; LCH
SA; Notice of Filing and Immediate
Effectiveness of Proposed Rule
Change, as Modified by Amendment
No. 1, Relating to the CDSClear Fee
Grid for 2023
January 18, 2023.
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 January 5,
2023, Banque Centrale de
Compensation, which conducts
business under the name LCH SA (‘‘LCH
SA’’), filed with the Securities and
Exchange Commission (‘‘Commission’’
or ‘‘SEC’’) the proposed rule change
described in Items I, II and III below,
which Items have been prepared
primarily by LCH SA. LCH SA filed the
proposed rule change pursuant to
Section 19(b)(3)(A) of the Act,3 and Rule
19b–4(f)(2) 4 thereunder, so that the
proposal was effective upon filing with
the Commission. On January 13, 2023,
LCH SA filed Amendment No. 1 to the
proposed rule change, which replaced
and superseded in its entirety the
original filing.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
(a) On January 5, 2023, Banque
Centrale de Compensation, which
conducts business under the name LCH
SA (‘‘LCH SA’’), filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–LCH SA–2023–002
(‘‘Proposed Rule Change’’) pursuant to
Section 19(b) of the Securities Exchange
Act of 1934 (‘‘Act’’) and Rule 19b–
4 thereunder in order to modify and
update the current CDSClear fee grid to
be effective early January 2023. This
Amendment No. 1 to the Proposed Rule
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)(2).
5 Amendment No. 1 amends Exhibit 1A to correct
a non-substantive formatting error and adds further
explanation and justification to Part II(b), statutory
basis. Amendment No. 1 also submits an exhibit to
the proposed rule change as an Exhibit 3. In a
separate correspondence that accompanies
Amendment No. 1, LCH SA requests confidential
treatment for this Exhibit 3.
2 17
E:\FR\FM\24JAN1.SGM
24JAN1
4272
Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
Change,6 will replace and supersede
entirety the original filing.
The text of the Proposed Rule Change
is in Exhibit 5 [sic].7
The implementation of the Proposed
Rule Change will be contingent on LCH
SA’s receipt of all necessary regulatory
approvals.
(b) Not applicable.
(c) Not applicable.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission,
LCH SA 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. LCH SA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of these 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 fee
changes is for LCH SA to reflect the
ongoing development and new product
scope of the CDSClear service 8 with the
objective to meet clearing members and
clients’ expectations on the clearing
offer.
As specified in Exhibit 5 [sic], LCH
SA is proposing to amend the CDSClear
fee grid for 2023 as follows.
(1) Clearing Fees for Sovereign Index
and Single Name CDS Activity
tkelley on DSK125TN23PROD with NOTICES
LCH SA CDSClear currently offers an
Unlimited Tariff for General Members
that covers all self-clearing Corporate
and Financials CDS Index and Single
Names activity for a Financial Group of
a Clearing Member for an annual fixed
fee of Ö1,350,000 (no variable fees).
6 Available on LCH SA website: Proposed Rule
Changes | LCH Group (https://www.lch.com/
resources/rulebooks/proposed-rule-changes).
7 All capitalized terms not defined herein have
the same definition as in the CDS Clearing Rule
Book, Supplement or Procedures, as applicable.
8 Self-Regulatory Organizations; LCH SA; Order
Approving Proposed Rule Change Relating to the
Clearing of Markit iTraxx® Australia Indices and
the Associated Single-Name Constituents and
Remediation of WWR Margin Instability, Exchange
Act Release No. 34–95503 (August 16, 2022); 87 FR
51471 (August 22, 2022) (SR–LCH SA–2022–004);
Self-Regulatory Organizations; LCH SA; Notice of
Filing of Amendment No. 2 and Order Granting
Accelerated Approval of Proposed Rule Change, as
Modified by Amendment No. 2, Relating to
Providing Clearing Services for Additional Index
and Single Name Credit Default Swaps, Exchange
Act Release No. 34–96468 (Dec. 8, 2022); 87 FR
76519 (Dec. 14, 2022) (SR–LCH SA–2022–007).
VerDate Sep<11>2014
19:17 Jan 23, 2023
Jkt 259001
As the scope of products covered by
the Unlimited Tariff for General
Members does not include Sovereign
Single Names CDS, the proposed change
introduces a distinct fixed fee of
Ö180,000 per annum 9 for General
Members to cover all self-clearing
Sovereign Single Names CDS activity for
a Financial Group of a Clearing Member.
General Members can opt-in for this
tariff or pay variable fees to clear
Sovereign Single Name CDS as per the
current fee grid.
As per the existing fee grid, CDSClear
offers a full discount of Sovereign Single
Names variable fees for one calendar
year from the launch date of this
initiative. This initiative launched on
December 14, 2022. As such, LCH SA
proposes to amend the fee grid to clarify
the full extent of this discount (i.e., from
December 14, 2022 up to and including
December 14, 2023).
LCH SA proposes to authorize
General Members to switch between the
annual fixed fee tariff and the variable
fees for Sovereign Single Name CDS no
more than once per year, such change to
be effective from the start of the next
month following a 15 business days’
notice period.
(2) General Members’ Introductory
Tariff
General Members under the
Introductory Tariff pay an annual
Membership and clearing fixed fee to
cover all self-clearing Corporate,
Financials and Sovereign Index and
Single Names activity of:
• Ö200,000 if the total annual gross
notional cleared is under Ö10bn.
• Ö400,000 if the total annual gross
notional cleared is over Ö10bn.
Besides, currently:
• Where the total annual gross
notional cleared by a General Member
under the Introductory Tariff reaches
Ö10bn in any calendar year, then no
further fixed fees are payable that year
and the General Member will
automatically be invoiced at the higher
tariff of Ö400,000 for the following year.
• Where the total annual gross
notional cleared by a General Member
under the Introductory Tariff on the
higher tariff of Ö400,000 falls below
Ö10bn in any calendar year, the General
Member will automatically be invoiced
at the lower tariff of Ö200,000 for the
following year.
The General Members’ Introductory
Tariff is charged monthly at one-twelfth
of the total per month.
Under the proposal, rather than
having a dividing threshold of Ö10bn in
9 This annual fixed fee of Ö180,000 will be
divided by twelve and be charged monthly,
equaling Ö15,000 per month.
PO 00000
Frm 00122
Fmt 4703
Sfmt 4703
total annual gross notional cleared, all
General Members automatically would
be charged the higher tariff, and rebated
a certain amount if their gross notional
clearing activity does not cross the
Ö10bn threshold at the end of the year.
As proposed, General Members under
the Introductory Tariff would be
charged an annual Membership and
clearing fee of Ö400,000 for any given
calendar year (one-twelfth being
charged each month) but those having
cleared less than Ö10bn in that year
would get a rebate in their last bill for
the year such that their annual
Membership and clearing fee amount
would revert to Ö200,000.
(3) Select Members’ Tariff
Select Members currently pay an
annual membership and clearing fixed
fee to cover all self-clearing Corporate,
Financials and Sovereign Index and
Single Names activity of:
• Ö250,000 if the total annual gross
notional cleared is under Ö20bn.
• Ö450,000 if the total annual gross
notional cleared is over Ö20bn.
With the proposed change, the
threshold would be lowered to Ö10
billion from Ö20 billion. Select Members
would pay an annual Membership and
clearing fixed fee to cover all selfclearing Corporate, Financials and
Sovereign Index and Single Names
activity of:
• Ö250,000 if the total annual gross
notional cleared is under Ö10bn.
• Ö450,000 if the total annual gross
notional cleared is over Ö10bn.
Currently, where the total annual
gross notional cleared by a Select
Member reaches Ö20bn in any calendar
year, then no further fixed fees are
payable that year and the Select Member
will automatically be invoiced at the
higher tariff of Ö450,000 for the
following year. Also under the present
rules, where the total annual gross
notional cleared by a Select Member on
the higher tariff of Ö450,000 falls below
Ö20bn in any calendar year, the Select
Member will automatically be invoiced
at the lower tariff of Ö250,000 for the
following year. As with the General
Members’ Introductory Tariff, the Select
Members’ Tariff is charged monthly at
one-twelfth of the total per month.
According to the proposal, not only
would the total annual gross notional
cleared threshold be halved, but also
Select Members automatically would be
charged the higher tariff, and rebated a
certain amount if their gross notional
clearing activity does not cross the
newly lowered Ö10bn threshold at the
end of the year. Select Members would
be charged an annual membership and
clearing fee of Ö450,000 for any given
E:\FR\FM\24JAN1.SGM
24JAN1
Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
calendar year (one twelfth being charged
each month) but those having cleared
less than Ö10bn in that year would get
a rebate in their last bill for the year
such that their annual Membership and
clearing fee amount to Ö250,000.
fee programme offered to existing and
new clearing members (CCP Switch
Programme), a proposed rule change
that was recently filed with and given
immediate effectiveness by the SEC.10
(4) CCP Switch Programme
The proposals to the CDSClear fee
grid are intended to reflect the incentive
The proposed CDSClear fee grid
would introduce a High Turnover Fee
(5) High Turnover Fee Plan
4273
Plan (HTFP) for Clients and Select
Members.
Currently, CDSClear Clearing
Members are charged a variable fee on
their client clearing flows per Ö/$
million of gross notional cleared, as
follows:
VARIABLE FEE—CLIENT CLEARING
[Per million gross notional cleared]
EUR indices
EUR single
names
Credit index
options—EUR
indices
U.S. indices
U.S. single
names
Credit index
option—U.S.
Indices
Ö4
Ö12
Ö4
$5
$17
$4
Similarly, Select Members are charged
a variable fee on their House flows per
EUR/USD million of gross notional
cleared defined as follows:
VARIABLE FEE—SELECT MEMBERS SELF-CLEARING
tkelley on DSK125TN23PROD with NOTICES
[Per million gross notional cleared]
EUR indices
EUR single
names
Credit index
options—EUR
indices
U.S. indices
U.S. single
names
Credit index
option—U.S.
indices
Ö4
Ö10
Ö10
$5
$13
$10
Under the proposal, the HTFP
introduction would establish a variable
fee grid based on notional in order to
make it more attractive for new Select
Members as well as new buy-side
clients to select CDSClear as their CCP
and/or CDSClear existing Select
Members, and clients to clear more by
decreasing the marginal variable fee past
predefined notional thresholds as
detailed below, and in Exhibit 5 [sic].
The HTFP thus provides Select
Members and Clients with the same
type of incentive to clear more volumes
than the Unlimited Tariff offers to
General Members, under which they
pay an annual fixed fee of Ö1.35m that
covers all self-clearing Corporate and
Financial Index and Single Names
activity as well as Sovereign Index
activity for all entities part of the
Financial Group of a given Clearing
Member. As a result, the HTFP doesn’t
need to be offered to the General
Members.
The buckets would apply to the actual
notional cleared in a given calendar year
distinctly for Euro denominated Indices,
US Dollar denominated Indices, Euro
denominated Single Names and US
Dollar denominated Single Names only.
10 Self-Regulatory Organizations; LCH SA; Notice
of Filing and Immediate Effectiveness of Proposed
Rule Change, as Modified by Amendment No. 1,
Relating to the CDSClear CCP Switch Programme,
Exchange Act Release No. Release No. 34–95808
(September 16, 2022); 87 FR 57931 (September 22,
2022) (SR–LCH SA–2022–005).
VerDate Sep<11>2014
19:17 Jan 23, 2023
Jkt 259001
PO 00000
Frm 00123
Fmt 4703
Sfmt 4703
E:\FR\FM\24JAN1.SGM
24JAN1
4274
Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
USSNl~l
EUR Index(€)
5,000,000,000 10,000,000,000 20,000,000,000
7
12
2
40,000,000,000
0
4
60,000,000,000 120,000,000,000 240,0001000,p()O
1
2
3
480,0001000,000
0
Notional Bucket
fee/mm Bucket
Notional Bucket
fee/mm Bucket
(7) Extension of the Fee Holiday Period
for Options Cleared by Clients and
Maintenance of the EEP Usage Free of
Charge in 2023
LCH SA is proposing to renew the fee
holiday 11 for Client clearing Options in
2023 as well as to maintain for 2023 the
Electronic Exercise Platform (EEP) usage
free of charge, both to promote and
encourage option clearing take-up.
tkelley on DSK125TN23PROD with NOTICES
0
17
fee/mm Bucket
(6) LSOC Account Structure Fees
Today, LCH SA did not have any
futures commission merchant (FCM)
using its clearing services but in view of
a first FCM to join the CDSClear service
in the coming months, it is proposed to
not charge any account structure fees for
Legally Segregated, Operationally
Commingled (LSOC) account structures.
(b) Statutory Basis
Section 17A(b)(3)(D) of the Act
requires that the rules of a clearing
agency provide for the equitable
allocation of reasonable dues, fees, and
other charges among its participants.12
LCH SA believes that this proposed
rule change concerning its clearing fee
changes is consistent with the
requirements of Section 17A of the
11 Self-Regulatory Organizations; LCH SA; Notice
of Filing and Immediate Effectiveness of Proposed
Rule Change Relating to the Amendments of the
CDSClear Fee Grid, Release No. 34–90862 (Jan. 6,
2021), 86 FR 2468 (Jan. 12, 2021), File No. SR–LCH
SA–2020–007.
12 15 U.S.C. 78q–1(b)(3)(D).
19:17 Jan 23, 2023
480,000,000,000
0
0
Finally, the HTFP would exclude
from the determination of the total
cleared notional:
• the notional cleared for which a
CCP Switch credit note was used to zero
out the clearing fees; and
• the notional cleared part of a CCP
Switch that thus did not attract any
clearing fees.
VerDate Sep<11>2014
5
60,00010001000 120,000,000,000 240,000,000,000
4
2
3
Notional Bucket
Jkt 259001
Act 13 and the rules and regulations
thereunder applicable to it, and in
particular provides for the equitable
allocation of reasonable fees, dues, and
other charges among clearing members
and market participants by ensuring that
clearing members and clients pay
reasonable fees and dues for the services
provided by LCH SA, within the
meaning of Section 17A(b)(3)(D) of the
Act.14
In order to take into account the new
product scope of the clearing services
offered by CDSClear, including, for
example, Markit iTraxx® Australia
Indices and the Associated Single-Name
Constituents, as well as the iTraxx Asia
ex Japan Index, the Markit CDX
Emerging Markets Index and the single
name credit default swaps (‘‘CDS’’) that
comprise each index, LCH SA is
proposing to introduce a fixed fee tariff
covering all self-clearing Sovereign
Single Names CDS activity carried out
by a Financial Group of a Clearing
Member. The fixed fee amount was
reasonably determined by LCH SA on
the basis of the expected General
Members’ cleared volumes, examining
both the Sovereign Single Name CDS
cleared notional by other Credit CCPs as
well as the outstanding bilateral
notional of Sovereign Single Name CDS
available to clear.
This proposed additional tariff for
Sovereign Single Name CDS does not
impact the existing tariffs applicable to
existing clearing services (i.e., the
General Members’ Unlimited tariff for
Corporates and Financials Index and
Single Names the General Members’
Unlimited tariff for Options as well as
the General Members’ Introductory
tariffs for Indices, Single Names and
13 15
14 15
PO 00000
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(D).
Frm 00124
Fmt 4703
Sfmt 4703
0
Options). The proposed additional tariff
also provides General Members more
optionality to manage their cost of
clearing Sovereign Single Name CDS by
offering a similar choice of tariffs to the
existing ones for Corporates and
Financials Index and Single Names or
for Options.
For both General Members under the
Introductory Tariff and Select Members,
LCH SA is proposing to adjust the way
it collects the fixed fee amount in a
transparent manner that is equally
applicable to ensure that those Clearing
Members are charged the relevant fixed
fee amount depending on their total
notional cleared for the calendar year in
which they cleared such notional.
Additionally, for Select Members,
LCH SA is proposing to lower by half
the threshold amount which determines
the amount of the annual clearing fixed
fee to cover all self-clearing Corporate,
Financials and Sovereign Index and
Single Names activity, thus impacting
the rebate that may be granted.
LCH SA believes that implementing
such adjustments made to avoid General
Members under the Introductory Tariff
paying more than Select Members for
the same notional cleared whilst
General Members have more obligations
than Select Members is consistent with
the requirements of Section 17A of the
Act 15 and the regulations thereunder
applicable to it, and in particular
provides for the equitable allocation of
reasonable fees, dues, and other charges
among clearing members and market
participants by ensuring that Members
pay reasonable fees and dues for the
services provided by LCH SA, within
the meaning of Section 17A(b)(3)(D) of
the Act.16
15 15
16 15
E:\FR\FM\24JAN1.SGM
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(D).
24JAN1
EN24JA23.252</GPH>
USlndextS}
Federal Register / Vol. 88, No. 15 / Tuesday, January 24, 2023 / Notices
tkelley on DSK125TN23PROD with NOTICES
LCH SA has determined that the
proposed fees associated to the High
Turnover Fee Plan are reasonable and
appropriate to charge to offer and
maintain CDSClear clearing services. In
particular, LCH SA believes that the
volume-based discounts have been set
up at an appropriate level, given the
costs and expenses to LCH SA in
providing such services. LCH SA also
considers that the introduction of the
High Turnover Fee Plan is designed to
be more appropriate and attractive for
Select Members and Clients in order to
promote the clearing activity. As a
reminder, the current fee grid already
includes an Unlimited Tariff for General
Members which also implies a
decreasing marginal clearing fee rate as
cleared notional increases, and thus
promotes the clearing activity even
further than the HTFP as it applies to all
entities part of the Financial Group of a
given Clearing Member.
Finally, LCH SA believes that the
renewal of the fee holiday for options
clearing fees for Clients in 2023 will
contribute to growing the options client
clearing activity. As a result, LCH SA
considers that the introduction of the
High Turnover Fee Plan as well as the
renewal of the fee holiday for Clients
clearing Options are also consistent
with the prompt and accurate clearance
in accordance with Section 17A(b)(3)(F)
of the Exchange Act.17
Furthermore, LCH SA has determined
that not charging any account structure
fees for Legally Segregated,
Operationally Commingled (LSOC)
account structures is consistent with the
absence of charge for account structure
fees for a Clearing Member’s main Gross
Omnibus Segregated Account (GOSA),
and as such guarantees equal
applicability of fees to any category of
market participant wishing to access the
CDSClear clearing service.
For all the reasons stated above, LCH
SA believes that the Proposed Rule
Change is consistent with the
requirements of Section 17A(b)(3)(D) of
the Act.18
B. Clearing Agency’s Statement on
Burden on Competition.
Section 17A(b)(3)(I) of the Act
requires that the rules of a clearing
agency not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.19
LCH SA does not believe that the
Proposed Rule Change would impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act because LCH
SA is offering the possibility for
CDSClear members and clients to obtain
a more appropriate and flexible access
to the clearing services. The Proposed
Rule Change would not affect the ability
of Clearing Members or other market
participants generally to engage in
cleared transactions or to access clearing
services.
Additionally, the clearing fee
conditions would remain transparent
and equally applicable to any category
of market participant wishing to access
the CDSClear clearing service for the
extensive scope of products offered,
including those that are not mandatory
for clearing.
Further, as explained above, LCH SA
believes that the fee rates would be
maintained at an appropriate level,
given the costs and expenses to LCH SA
in offering the relevant clearing services.
C. Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. LCH SA will
notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change
has become effective upon filing
pursuant to Section 19(b)(3)(A) 20 of the
Act and Rule 19b–4(f)(2) 21 thereunder
because it establishes a fee or other
charge imposed by LCH SA on its
Clearing Members. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such proposed 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:
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(D).
19 15 U.S.C. 78q–1(b)(3)(I).
18 15
VerDate Sep<11>2014
19:17 Jan 23, 2023
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–
LCH SA–2023–002 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–LCH SA–2023–002. 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 LCH SA and on LCH SA’s
website at: https://www.lch.com/
resources/rulebooks/proposed-rulechanges. 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–LCH
SA–2023–002 and should be submitted
on or before February 14, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.22
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01276 Filed 1–23–23; 8:45 am]
BILLING CODE 8011–01–P
17 15
U.S.C. 78s(b)(3)(A).
21 17 CFR 240.19b–4(f)(2).
20 15
Jkt 259001
PO 00000
Frm 00125
Fmt 4703
Sfmt 9990
4275
22 17
E:\FR\FM\24JAN1.SGM
CFR 200.30–3(a)(12).
24JAN1
]]>Agencies
[Federal Register Volume 88, Number 15 (Tuesday, January 24, 2023)]
[Notices]
[Pages 4271-4275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01276]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96700; File No. SR-LCH SA-2023-002]
Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change, as Modified by
Amendment No. 1, Relating to the CDSClear Fee Grid for 2023
January 18, 2023.
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 January 5, 2023, Banque Centrale de Compensation, which conducts
business under the name LCH SA (``LCH SA''), filed with the Securities
and Exchange Commission (``Commission'' or ``SEC'') the proposed rule
change described in Items I, II and III below, which Items have been
prepared primarily by LCH SA. LCH SA filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act,\3\ and Rule 19b-4(f)(2) \4\
thereunder, so that the proposal was effective upon filing with the
Commission. On January 13, 2023, LCH SA filed Amendment No. 1 to the
proposed rule change, which replaced and superseded in its entirety the
original filing.\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)(2).
\5\ Amendment No. 1 amends Exhibit 1A to correct a non-
substantive formatting error and adds further explanation and
justification to Part II(b), statutory basis. Amendment No. 1 also
submits an exhibit to the proposed rule change as an Exhibit 3. In a
separate correspondence that accompanies Amendment No. 1, LCH SA
requests confidential treatment for this Exhibit 3.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
(a) On January 5, 2023, Banque Centrale de Compensation, which
conducts business under the name LCH SA (``LCH SA''), filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change SR-LCH SA-2023-002 (``Proposed Rule Change'') pursuant to
Section 19(b) of the Securities Exchange Act of 1934 (``Act'') and Rule
19b-4 thereunder in order to modify and update the current CDSClear fee
grid to be effective early January 2023. This Amendment No. 1 to the
Proposed Rule
[[Page 4272]]
Change,\6\ will replace and supersede entirety the original filing.
---------------------------------------------------------------------------
\6\ Available on LCH SA website: Proposed Rule Changes [verbar]
LCH Group (https://www.lch.com/resources/rulebooks/proposed-rule-changes).
---------------------------------------------------------------------------
The text of the Proposed Rule Change is in Exhibit 5 [sic].\7\
---------------------------------------------------------------------------
\7\ All capitalized terms not defined herein have the same
definition as in the CDS Clearing Rule Book, Supplement or
Procedures, as applicable.
---------------------------------------------------------------------------
The implementation of the Proposed Rule Change will be contingent
on LCH SA's receipt of all necessary regulatory approvals.
(b) Not applicable.
(c) Not applicable.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, LCH SA 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. LCH SA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of these 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 fee changes is for LCH SA to reflect
the ongoing development and new product scope of the CDSClear service
\8\ with the objective to meet clearing members and clients'
expectations on the clearing offer.
---------------------------------------------------------------------------
\8\ Self-Regulatory Organizations; LCH SA; Order Approving
Proposed Rule Change Relating to the Clearing of Markit
iTraxx[supreg] Australia Indices and the Associated Single-Name
Constituents and Remediation of WWR Margin Instability, Exchange Act
Release No. 34-95503 (August 16, 2022); 87 FR 51471 (August 22,
2022) (SR-LCH SA-2022-004); Self-Regulatory Organizations; LCH SA;
Notice of Filing of Amendment No. 2 and Order Granting Accelerated
Approval of Proposed Rule Change, as Modified by Amendment No. 2,
Relating to Providing Clearing Services for Additional Index and
Single Name Credit Default Swaps, Exchange Act Release No. 34-96468
(Dec. 8, 2022); 87 FR 76519 (Dec. 14, 2022) (SR-LCH SA-2022-007).
---------------------------------------------------------------------------
As specified in Exhibit 5 [sic], LCH SA is proposing to amend the
CDSClear fee grid for 2023 as follows.
(1) Clearing Fees for Sovereign Index and Single Name CDS Activity
LCH SA CDSClear currently offers an Unlimited Tariff for General
Members that covers all self-clearing Corporate and Financials CDS
Index and Single Names activity for a Financial Group of a Clearing
Member for an annual fixed fee of [euro]1,350,000 (no variable fees).
As the scope of products covered by the Unlimited Tariff for
General Members does not include Sovereign Single Names CDS, the
proposed change introduces a distinct fixed fee of [euro]180,000 per
annum \9\ for General Members to cover all self-clearing Sovereign
Single Names CDS activity for a Financial Group of a Clearing Member.
General Members can opt-in for this tariff or pay variable fees to
clear Sovereign Single Name CDS as per the current fee grid.
---------------------------------------------------------------------------
\9\ This annual fixed fee of [euro]180,000 will be divided by
twelve and be charged monthly, equaling [euro]15,000 per month.
---------------------------------------------------------------------------
As per the existing fee grid, CDSClear offers a full discount of
Sovereign Single Names variable fees for one calendar year from the
launch date of this initiative. This initiative launched on December
14, 2022. As such, LCH SA proposes to amend the fee grid to clarify the
full extent of this discount (i.e., from December 14, 2022 up to and
including December 14, 2023).
LCH SA proposes to authorize General Members to switch between the
annual fixed fee tariff and the variable fees for Sovereign Single Name
CDS no more than once per year, such change to be effective from the
start of the next month following a 15 business days' notice period.
(2) General Members' Introductory Tariff
General Members under the Introductory Tariff pay an annual
Membership and clearing fixed fee to cover all self-clearing Corporate,
Financials and Sovereign Index and Single Names activity of:
[euro]200,000 if the total annual gross notional cleared
is under [euro]10bn.
[euro]400,000 if the total annual gross notional cleared
is over [euro]10bn.
Besides, currently:
Where the total annual gross notional cleared by a General
Member under the Introductory Tariff reaches [euro]10bn in any calendar
year, then no further fixed fees are payable that year and the General
Member will automatically be invoiced at the higher tariff of
[euro]400,000 for the following year.
Where the total annual gross notional cleared by a General
Member under the Introductory Tariff on the higher tariff of
[euro]400,000 falls below [euro]10bn in any calendar year, the General
Member will automatically be invoiced at the lower tariff of
[euro]200,000 for the following year.
The General Members' Introductory Tariff is charged monthly at one-
twelfth of the total per month.
Under the proposal, rather than having a dividing threshold of
[euro]10bn in total annual gross notional cleared, all General Members
automatically would be charged the higher tariff, and rebated a certain
amount if their gross notional clearing activity does not cross the
[euro]10bn threshold at the end of the year. As proposed, General
Members under the Introductory Tariff would be charged an annual
Membership and clearing fee of [euro]400,000 for any given calendar
year (one-twelfth being charged each month) but those having cleared
less than [euro]10bn in that year would get a rebate in their last bill
for the year such that their annual Membership and clearing fee amount
would revert to [euro]200,000.
(3) Select Members' Tariff
Select Members currently pay an annual membership and clearing
fixed fee to cover all self-clearing Corporate, Financials and
Sovereign Index and Single Names activity of:
[euro]250,000 if the total annual gross notional cleared
is under [euro]20bn.
[euro]450,000 if the total annual gross notional cleared
is over [euro]20bn.
With the proposed change, the threshold would be lowered to
[euro]10 billion from [euro]20 billion. Select Members would pay an
annual Membership and clearing fixed fee to cover all self-clearing
Corporate, Financials and Sovereign Index and Single Names activity of:
[euro]250,000 if the total annual gross notional cleared
is under [euro]10bn.
[euro]450,000 if the total annual gross notional cleared
is over [euro]10bn.
Currently, where the total annual gross notional cleared by a
Select Member reaches [euro]20bn in any calendar year, then no further
fixed fees are payable that year and the Select Member will
automatically be invoiced at the higher tariff of [euro]450,000 for the
following year. Also under the present rules, where the total annual
gross notional cleared by a Select Member on the higher tariff of
[euro]450,000 falls below [euro]20bn in any calendar year, the Select
Member will automatically be invoiced at the lower tariff of
[euro]250,000 for the following year. As with the General Members'
Introductory Tariff, the Select Members' Tariff is charged monthly at
one-twelfth of the total per month.
According to the proposal, not only would the total annual gross
notional cleared threshold be halved, but also Select Members
automatically would be charged the higher tariff, and rebated a certain
amount if their gross notional clearing activity does not cross the
newly lowered [euro]10bn threshold at the end of the year. Select
Members would be charged an annual membership and clearing fee of
[euro]450,000 for any given
[[Page 4273]]
calendar year (one twelfth being charged each month) but those having
cleared less than [euro]10bn in that year would get a rebate in their
last bill for the year such that their annual Membership and clearing
fee amount to [euro]250,000.
(4) CCP Switch Programme
The proposals to the CDSClear fee grid are intended to reflect the
incentive fee programme offered to existing and new clearing members
(CCP Switch Programme), a proposed rule change that was recently filed
with and given immediate effectiveness by the SEC.\10\
---------------------------------------------------------------------------
\10\ Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change, as Modified by
Amendment No. 1, Relating to the CDSClear CCP Switch Programme,
Exchange Act Release No. Release No. 34-95808 (September 16, 2022);
87 FR 57931 (September 22, 2022) (SR-LCH SA-2022-005).
---------------------------------------------------------------------------
(5) High Turnover Fee Plan
The proposed CDSClear fee grid would introduce a High Turnover Fee
Plan (HTFP) for Clients and Select Members.
Currently, CDSClear Clearing Members are charged a variable fee on
their client clearing flows per [euro]/$ million of gross notional
cleared, as follows:
Variable Fee--Client Clearing
[Per million gross notional cleared]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit index Credit index
EUR indices EUR single options--EUR U.S. indices U.S. single option--U.S.
names indices names Indices
--------------------------------------------------------------------------------------------------------------------------------------------------------
[euro]4 [euro]12 [euro]4 $5 $17 $4
--------------------------------------------------------------------------------------------------------------------------------------------------------
Similarly, Select Members are charged a variable fee on their House
flows per EUR/USD million of gross notional cleared defined as follows:
Variable Fee--Select Members Self-Clearing
[Per million gross notional cleared]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit index Credit index
EUR indices EUR single options--EUR U.S. indices U.S. single option--U.S.
names indices names indices
--------------------------------------------------------------------------------------------------------------------------------------------------------
[euro]4 [euro]10 [euro]10 $5 $13 $10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Under the proposal, the HTFP introduction would establish a
variable fee grid based on notional in order to make it more attractive
for new Select Members as well as new buy-side clients to select
CDSClear as their CCP and/or CDSClear existing Select Members, and
clients to clear more by decreasing the marginal variable fee past
predefined notional thresholds as detailed below, and in Exhibit 5
[sic]. The HTFP thus provides Select Members and Clients with the same
type of incentive to clear more volumes than the Unlimited Tariff
offers to General Members, under which they pay an annual fixed fee of
[euro]1.35m that covers all self-clearing Corporate and Financial Index
and Single Names activity as well as Sovereign Index activity for all
entities part of the Financial Group of a given Clearing Member. As a
result, the HTFP doesn't need to be offered to the General Members.
The buckets would apply to the actual notional cleared in a given
calendar year distinctly for Euro denominated Indices, US Dollar
denominated Indices, Euro denominated Single Names and US Dollar
denominated Single Names only.
[[Page 4274]]
[GRAPHIC] [TIFF OMITTED] TN24JA23.252
Finally, the HTFP would exclude from the determination of the total
cleared notional:
the notional cleared for which a CCP Switch credit note
was used to zero out the clearing fees; and
the notional cleared part of a CCP Switch that thus did
not attract any clearing fees.
(6) LSOC Account Structure Fees
Today, LCH SA did not have any futures commission merchant (FCM)
using its clearing services but in view of a first FCM to join the
CDSClear service in the coming months, it is proposed to not charge any
account structure fees for Legally Segregated, Operationally Commingled
(LSOC) account structures.
(7) Extension of the Fee Holiday Period for Options Cleared by Clients
and Maintenance of the EEP Usage Free of Charge in 2023
LCH SA is proposing to renew the fee holiday \11\ for Client
clearing Options in 2023 as well as to maintain for 2023 the Electronic
Exercise Platform (EEP) usage free of charge, both to promote and
encourage option clearing take-up.
---------------------------------------------------------------------------
\11\ Self-Regulatory Organizations; LCH SA; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Relating to the
Amendments of the CDSClear Fee Grid, Release No. 34-90862 (Jan. 6,
2021), 86 FR 2468 (Jan. 12, 2021), File No. SR-LCH SA-2020-007.
---------------------------------------------------------------------------
(b) Statutory Basis
Section 17A(b)(3)(D) of the Act requires that the rules of a
clearing agency provide for the equitable allocation of reasonable
dues, fees, and other charges among its participants.\12\
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
LCH SA believes that this proposed rule change concerning its
clearing fee changes is consistent with the requirements of Section 17A
of the Act \13\ and the rules and regulations thereunder applicable to
it, and in particular provides for the equitable allocation of
reasonable fees, dues, and other charges among clearing members and
market participants by ensuring that clearing members and clients pay
reasonable fees and dues for the services provided by LCH SA, within
the meaning of Section 17A(b)(3)(D) of the Act.\14\
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1.
\14\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
In order to take into account the new product scope of the clearing
services offered by CDSClear, including, for example, Markit
iTraxx[supreg] Australia Indices and the Associated Single-Name
Constituents, as well as the iTraxx Asia ex Japan Index, the Markit CDX
Emerging Markets Index and the single name credit default swaps
(``CDS'') that comprise each index, LCH SA is proposing to introduce a
fixed fee tariff covering all self-clearing Sovereign Single Names CDS
activity carried out by a Financial Group of a Clearing Member. The
fixed fee amount was reasonably determined by LCH SA on the basis of
the expected General Members' cleared volumes, examining both the
Sovereign Single Name CDS cleared notional by other Credit CCPs as well
as the outstanding bilateral notional of Sovereign Single Name CDS
available to clear.
This proposed additional tariff for Sovereign Single Name CDS does
not impact the existing tariffs applicable to existing clearing
services (i.e., the General Members' Unlimited tariff for Corporates
and Financials Index and Single Names the General Members' Unlimited
tariff for Options as well as the General Members' Introductory tariffs
for Indices, Single Names and Options). The proposed additional tariff
also provides General Members more optionality to manage their cost of
clearing Sovereign Single Name CDS by offering a similar choice of
tariffs to the existing ones for Corporates and Financials Index and
Single Names or for Options.
For both General Members under the Introductory Tariff and Select
Members, LCH SA is proposing to adjust the way it collects the fixed
fee amount in a transparent manner that is equally applicable to ensure
that those Clearing Members are charged the relevant fixed fee amount
depending on their total notional cleared for the calendar year in
which they cleared such notional.
Additionally, for Select Members, LCH SA is proposing to lower by
half the threshold amount which determines the amount of the annual
clearing fixed fee to cover all self-clearing Corporate, Financials and
Sovereign Index and Single Names activity, thus impacting the rebate
that may be granted.
LCH SA believes that implementing such adjustments made to avoid
General Members under the Introductory Tariff paying more than Select
Members for the same notional cleared whilst General Members have more
obligations than Select Members is consistent with the requirements of
Section 17A of the Act \15\ and the regulations thereunder applicable
to it, and in particular provides for the equitable allocation of
reasonable fees, dues, and other charges among clearing members and
market participants by ensuring that Members pay reasonable fees and
dues for the services provided by LCH SA, within the meaning of Section
17A(b)(3)(D) of the Act.\16\
---------------------------------------------------------------------------
\15\ 15 U.S.C. 78q-1.
\16\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
[[Page 4275]]
LCH SA has determined that the proposed fees associated to the High
Turnover Fee Plan are reasonable and appropriate to charge to offer and
maintain CDSClear clearing services. In particular, LCH SA believes
that the volume-based discounts have been set up at an appropriate
level, given the costs and expenses to LCH SA in providing such
services. LCH SA also considers that the introduction of the High
Turnover Fee Plan is designed to be more appropriate and attractive for
Select Members and Clients in order to promote the clearing activity.
As a reminder, the current fee grid already includes an Unlimited
Tariff for General Members which also implies a decreasing marginal
clearing fee rate as cleared notional increases, and thus promotes the
clearing activity even further than the HTFP as it applies to all
entities part of the Financial Group of a given Clearing Member.
Finally, LCH SA believes that the renewal of the fee holiday for
options clearing fees for Clients in 2023 will contribute to growing
the options client clearing activity. As a result, LCH SA considers
that the introduction of the High Turnover Fee Plan as well as the
renewal of the fee holiday for Clients clearing Options are also
consistent with the prompt and accurate clearance in accordance with
Section 17A(b)(3)(F) of the Exchange Act.\17\
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Furthermore, LCH SA has determined that not charging any account
structure fees for Legally Segregated, Operationally Commingled (LSOC)
account structures is consistent with the absence of charge for account
structure fees for a Clearing Member's main Gross Omnibus Segregated
Account (GOSA), and as such guarantees equal applicability of fees to
any category of market participant wishing to access the CDSClear
clearing service.
For all the reasons stated above, LCH SA believes that the Proposed
Rule Change is consistent with the requirements of Section 17A(b)(3)(D)
of the Act.\18\
---------------------------------------------------------------------------
\18\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
B. Clearing Agency's Statement on Burden on Competition.
Section 17A(b)(3)(I) of the Act requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.\19\
---------------------------------------------------------------------------
\19\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------
LCH SA does not believe that the Proposed Rule Change would impose
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act because LCH SA is offering the
possibility for CDSClear members and clients to obtain a more
appropriate and flexible access to the clearing services. The Proposed
Rule Change would not affect the ability of Clearing Members or other
market participants generally to engage in cleared transactions or to
access clearing services.
Additionally, the clearing fee conditions would remain transparent
and equally applicable to any category of market participant wishing to
access the CDSClear clearing service for the extensive scope of
products offered, including those that are not mandatory for clearing.
Further, as explained above, LCH SA believes that the fee rates
would be maintained at an appropriate level, given the costs and
expenses to LCH SA in offering the relevant clearing services.
C. Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed rule change have not been
solicited or received. LCH SA will notify the Commission of any written
comments received by LCH SA.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing proposed rule change has become effective upon filing
pursuant to Section 19(b)(3)(A) \20\ of the Act and Rule 19b-4(f)(2)
\21\ thereunder because it establishes a fee or other charge imposed by
LCH SA on its Clearing Members. At any time within 60 days of the
filing of the proposed rule change, the Commission summarily may
temporarily suspend such proposed 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.
---------------------------------------------------------------------------
\20\ 15 U.S.C. 78s(b)(3)(A).
\21\ 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-LCH SA-2023-002 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-LCH SA-2023-002. 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 LCH SA and on LCH SA's website
at: https://www.lch.com/resources/rulebooks/proposed-rule-changes. 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-LCH SA-2023-002 and should
be submitted on or before February 14, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
---------------------------------------------------------------------------
\22\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01276 Filed 1-23-23; 8:45 am]
BILLING CODE 8011-01-P
