Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to Clearing Fees for ICE Futures Europe Gilt Futures and Options and Euribor Options Contracts, 5048-5050 [2023-01515]
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5048
Federal Register / Vol. 88, No. 17 / Thursday, January 26, 2023 / Notices
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–BOX–2023–03 and should
be submitted on or before February 16,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–01516 Filed 1–25–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96722; File No. SR–ICEEU–
2023–001]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments to Clearing Fees for ICE
Futures Europe Gilt Futures and
Options and Euribor Options Contracts
January 20, 2023.
lotter on DSK11XQN23PROD with NOTICES1
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 9,
2023, 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) 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 changes to certain of its
clearing fees for ICE Futures Europe Gilt
Futures and Options and Euribor
Options contracts.5
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICE
Clear Europe included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
ICE Clear Europe is proposing to
increase certain clearing fees for ICE
Futures Europe (‘‘IFEU’’) Gilt Futures
and Options and Euribor Options
contracts. The fee changes are intended
to provide revenue to support the
further development of IFEU’s Gilt
markets and bring fees related to these
contracts in line with the fees of other
government bond futures and options
traded on other Exchanges. For Euribor
options, the changes would be made to
align fees with existing ICE Clear
Europe clearing fees for the underlying
3 15
U.S.C. 78s(b)(3)(A).
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.
4 17
18 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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Euribor futures.6 The amendments do
not otherwise change the terms and
conditions of the relevant contract.
Fees with respect to the Gilt contracts
have not been changed since 2017. The
fee increases are intended to align fees
for the Gilt contracts more closely with
those of government bond futures and
options traded on other exchanges. In
addition, there is only limited open
interest in certain Gilt contracts
(particularly the short, medium and
ultra-long contracts). The proposed fee
increases (together with planned
increases in trading fees at IFEU) are
intended to provide revenue to support
additional business development
activity with respect to these contracts,
including funding liquidity provider
and other incentives that may be
adopted in the future. In ICE Clear
Europe’s experience with similar
contracts, such incentives will likely be
needed in order to generate additional
market activity and liquidity in contacts
with limited existing open interest.
With respect to Euribor options, the
Clearing House proposes to increase the
clearing fees to align with the
underlying Euribor futures contracts.
ICE Clear Europe believes that the
changes will eliminate an unnecessary
distinction between the cost of trading
futures and options. ICE Clear Europe
notes that clearing fees with respect to
these contracts have not changed since
ICE Clear Europe commenced clearing
them in 2014.
The fee tables below set forth the
proposed clearing fee changes. The
proposed new fees are intended to come
into effect on February 1, 2023, subject
to regulatory approval. ICE Clear Europe
intends, together with IFEU, to publish
a Circular to inform market participants
of the changes in advance of such
proposed effective date.
Gilt Futures and Options Proposed
Exchange and Clearing Fees
Below is a table showing the existing
and proposed clearing fees and a table
showing the proposed amended
Exchange and Clearing fees.
6 IFEU is contemporaneously increasing certain
trading fees relating to these contracts, and is
expected to announce such increases by circular in
advance of implementation.
7 Clearing fees applicable to deliveries would be
unchanged. Fee information for deliveries is
included in the table for completeness.
8 Clearing fees applicable to futures contracts and
futures/basis block transactions would be
unchanged. Fee information for these contracts is
included for completeness.
E:\FR\FM\26JAN1.SGM
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Federal Register / Vol. 88, No. 17 / Thursday, January 26, 2023 / Notices
Existing
clearing fee
lotter on DSK11XQN23PROD with NOTICES1
Contract—Short, Medium, Long and Ultra-Long Gilts:
Futures Contracts .............................................................................................................................................
Futures Basis/Block ..........................................................................................................................................
Futures Block with Delayed Publication ...........................................................................................................
Deliveries ..........................................................................................................................................................
Options Contracts (Long Gilt only) ...................................................................................................................
Options Block (Long Gilt only) .........................................................................................................................
Options Block with Delayed Publication (Long Gilt only) .................................................................................
Option Exercise (Long Gilt only) ......................................................................................................................
Contract—Euribor®:
Futures Contracts .............................................................................................................................................
Futures Basis/Block ..........................................................................................................................................
Futures Block with Delayed Publication ...........................................................................................................
Cash Settlement ...............................................................................................................................................
Options Contracts .............................................................................................................................................
Options Block ...................................................................................................................................................
Options Block with Delayed Publication ...........................................................................................................
Option Exercise ................................................................................................................................................
(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 9 and
regulations thereunder applicable to it.
In particular, Section 17A(b)(3)(D) of the
Act 10 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 its clearing fees, as proposed to be
amended, would be reasonable and
appropriate for the relevant Contracts.
ICE Clear Europe’s fees are imposed at
the product level on a per transaction
basis (as are the applicable Exchange
fees), and would be generally applicable
to market participants trading in the
contracts. As set forth above, ICE Clear
Europe is proposing to increase clearing
fees for the relevant Gilt contracts in
order to support further development of
trading and liquidity in those contracts,
in light of the lack of current open
interest. ICE Clear Europe believes the
higher fees will facilitate funding of
liquidity and other incentives that will
support the contract. The amended fees
will also be consistent with the fees
applicable to government bond futures
contracts traded at other exchanges. ICE
Clear Europe has determined that the
increased fees would provide an
appropriate balance between the costs of
clearing for market participants and the
expenses incurred by ICE Clear Europe
in offering clearing of the relevant
contracts, and permit greater support by
ICE Clear Europe of clearing such
products. 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.11
The proposed amendments are also
consistent with the requirements of
Section 17A(b)(3)(F) of the Act 12 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 fees, as proposed to be
amended, would apply on a per
transaction and would apply to market
participants generally. Although ICE
Clear Europe may use revenue from
additional fees to support liquidity and
other incentive arrangements for Gilt
contracts, ICE Clear Europe believes that
any such incentives that may be
adopted will be appropriately tailored to
support additional trading and liquidity
in the contracts. 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.13
(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 increasing certain clearing
fees, as set forth herein, it believes such
changes are appropriate to reflect the
costs and expenses incurred by the
11 15
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78q–1(b)(3)(F).
13 15 U.S.C. 78q–1(b)(3)(F).
9 15
U.S.C. 78q–1.
10 15 U.S.C. 78q–1(b)(3)(D).
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Proposed new
clearing fee
0.20
0.20
0.34
2.50
0.20
0.20
0.34
0.20
0.24
0.24
0.36
7 2.50
0.24
0.24
0.36
0.33
0.20
0.20
0.34
0.25
0.18
0.18
0.34
0.25
8 0.20
0.20
0.36
0.28
0.20
0.20
0.36
0.28
Clearing House in clearing the relevant
Contracts and are consistent with other
contracts cleared at the Clearing House
and similar contracts cleared on other
venues. The amendments would also
support appropriate liquidity and other
incentive arrangements to further
develop trading. ICE Clear Europe does
not believe that the amendments would
adversely affect the ability of Clearing
Members or other market participants
generally to access clearing services for
the Contracts. Further, since the revised
fees will be the base rate applicable to
all Clearing Members and market
participants that clear the products, 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 amendment has 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)
E:\FR\FM\26JAN1.SGM
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5050
Federal Register / Vol. 88, No. 17 / Thursday, January 26, 2023 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.5
Sherry R. Haywood,
Assistant Secretary.
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, security-based swap submission
or advance notice is consistent with the
Act. Comments may be submitted by
any of the following methods:
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–2023–001
and should be submitted on or before
February 16, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
Proposed Collection; Comment
Request; Extension: Rule 15c3–1
Electronic Comments
[FR Doc. 2023–01515 Filed 1–25–23; 8:45 am]
• 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–2023–001 on the subject line.
BILLING CODE 8011–01–P
of the Act 14 and paragraph (f) of Rule
19b–4 15 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act.
IV. Solicitation of Comments
lotter on DSK11XQN23PROD with NOTICES1
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICEEU–2023–001. 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://
14 15
15 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
VerDate Sep<11>2014
17:17 Jan 25, 2023
Jkt 259001
Sherry R. Haywood,
Assistant Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96720; File No. SR–MEMX–
2022–32]
Self-Regulatory Organizations; MEMX
LLC; Notice of Withdrawal of a
Proposed Rule Change To Amend the
Exchange’s Fee Schedule To Adopt
Market Data Fees
January 20, 2023.
On November 18, 2022, MEMX LLC
(‘‘MEMX’’) filed with the Securities and
Exchange Commission (‘‘Commission’’),
pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to amend its Fee Schedule to
adopt fees for its market data products.
The proposed rule change was
immediately effective upon filing with
the Commission pursuant to section
19(b)(3)(A) of the Act.3 The proposed
rule change was published for comment
in the Federal Register on December 7,
2022.4 On January 17, 2023, MEMX
withdrew the proposed rule change
(SR–MEMX–2022–32).
16 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). A proposed rule change
may take effect upon filing with the Commission if
it is designated by the exchange as ‘‘establishing or
changing a due, fee, or other charge imposed by the
self-regulatory organization on any person, whether
or not the person is a member of the self-regulatory
organization.’’ 15 U.S.C. 78s(b)(3)(A)(ii).
4 See Securities Exchange Act Release No. 96430
(December 1, 2022), 87 FR 75083.
1 15
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[FR Doc. 2023–01514 Filed 1–25–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–197, OMB Control No.
3235–0200]
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 15c3–1 (17 CFR
240.15c3–1), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 15c3–1 requires brokers-dealers
to have at all times sufficient liquid
assets to meet their current liabilities,
particularly the claims of customers.
The rule facilitates the monitoring of the
financial condition of broker-dealers by
the Commission and the various selfregulatory organizations. It is estimated
that broker-dealer respondents
registered with the Commission and
subject to the collection of information
requirements of Rule 15c3–1 incur an
aggregate annual time burden of
approximately 70,137 hours to comply
with this rule and an aggregate annual
cost burden of approximately $135,167.
Written comments are invited on: (a)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
5 17
E:\FR\FM\26JAN1.SGM
CFR 200.30–3(a)(12).
26JAN1
]]>Agencies
[Federal Register Volume 88, Number 17 (Thursday, January 26, 2023)]
[Notices]
[Pages 5048-5050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01515]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96722; File No. SR-ICEEU-2023-001]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to Clearing Fees for ICE Futures Europe Gilt Futures and
Options and Euribor Options Contracts
January 20, 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 9, 2023, 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)
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)(2).
---------------------------------------------------------------------------
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 changes to certain of its clearing fees for ICE
Futures Europe Gilt Futures and Options and Euribor Options
contracts.\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
ICE Clear Europe is proposing to increase certain clearing fees for
ICE Futures Europe (``IFEU'') Gilt Futures and Options and Euribor
Options contracts. The fee changes are intended to provide revenue to
support the further development of IFEU's Gilt markets and bring fees
related to these contracts in line with the fees of other government
bond futures and options traded on other Exchanges. For Euribor
options, the changes would be made to align fees with existing ICE
Clear Europe clearing fees for the underlying Euribor futures.\6\ The
amendments do not otherwise change the terms and conditions of the
relevant contract.
---------------------------------------------------------------------------
\6\ IFEU is contemporaneously increasing certain trading fees
relating to these contracts, and is expected to announce such
increases by circular in advance of implementation.
---------------------------------------------------------------------------
Fees with respect to the Gilt contracts have not been changed since
2017. The fee increases are intended to align fees for the Gilt
contracts more closely with those of government bond futures and
options traded on other exchanges. In addition, there is only limited
open interest in certain Gilt contracts (particularly the short, medium
and ultra-long contracts). The proposed fee increases (together with
planned increases in trading fees at IFEU) are intended to provide
revenue to support additional business development activity with
respect to these contracts, including funding liquidity provider and
other incentives that may be adopted in the future. In ICE Clear
Europe's experience with similar contracts, such incentives will likely
be needed in order to generate additional market activity and liquidity
in contacts with limited existing open interest.
With respect to Euribor options, the Clearing House proposes to
increase the clearing fees to align with the underlying Euribor futures
contracts. ICE Clear Europe believes that the changes will eliminate an
unnecessary distinction between the cost of trading futures and
options. ICE Clear Europe notes that clearing fees with respect to
these contracts have not changed since ICE Clear Europe commenced
clearing them in 2014.
The fee tables below set forth the proposed clearing fee changes.
The proposed new fees are intended to come into effect on February 1,
2023, subject to regulatory approval. ICE Clear Europe intends,
together with IFEU, to publish a Circular to inform market participants
of the changes in advance of such proposed effective date.
Gilt Futures and Options Proposed Exchange and Clearing Fees
Below is a table showing the existing and proposed clearing fees
and a table showing the proposed amended Exchange and Clearing fees.
---------------------------------------------------------------------------
\7\ Clearing fees applicable to deliveries would be unchanged.
Fee information for deliveries is included in the table for
completeness.
\8\ Clearing fees applicable to futures contracts and futures/
basis block transactions would be unchanged. Fee information for
these contracts is included for completeness.
[[Page 5049]]
------------------------------------------------------------------------
Existing Proposed new
clearing fee clearing fee
------------------------------------------------------------------------
Contract--Short, Medium, Long and Ultra-
Long Gilts:
Futures Contracts................... 0.20 0.24
Futures Basis/Block................. 0.20 0.24
Futures Block with Delayed 0.34 0.36
Publication........................
Deliveries.......................... 2.50 \7\ 2.50
Options Contracts (Long Gilt only).. 0.20 0.24
Options Block (Long Gilt only)...... 0.20 0.24
Options Block with Delayed 0.34 0.36
Publication (Long Gilt only).......
Option Exercise (Long Gilt only).... 0.20 0.33
Contract--Euribor[supreg]:
Futures Contracts................... 0.20 \8\ 0.20
Futures Basis/Block................. 0.20 0.20
Futures Block with Delayed 0.34 0.36
Publication........................
Cash Settlement..................... 0.25 0.28
Options Contracts................... 0.18 0.20
Options Block....................... 0.18 0.20
Options Block with Delayed 0.34 0.36
Publication........................
Option Exercise..................... 0.25 0.28
------------------------------------------------------------------------
(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 \9\ and regulations thereunder applicable to it. In particular,
Section 17A(b)(3)(D) of the Act \10\ 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 its clearing fees, as proposed to be amended, would be
reasonable and appropriate for the relevant Contracts. ICE Clear
Europe's fees are imposed at the product level on a per transaction
basis (as are the applicable Exchange fees), and would be generally
applicable to market participants trading in the contracts. As set
forth above, ICE Clear Europe is proposing to increase clearing fees
for the relevant Gilt contracts in order to support further development
of trading and liquidity in those contracts, in light of the lack of
current open interest. ICE Clear Europe believes the higher fees will
facilitate funding of liquidity and other incentives that will support
the contract. The amended fees will also be consistent with the fees
applicable to government bond futures contracts traded at other
exchanges. ICE Clear Europe has determined that the increased fees
would provide an appropriate balance between the costs of clearing for
market participants and the expenses incurred by ICE Clear Europe in
offering clearing of the relevant contracts, and permit greater support
by ICE Clear Europe of clearing such products. 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.\11\
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1.
\10\ 15 U.S.C. 78q-1(b)(3)(D).
\11\ 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 \12\ 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 fees, as proposed to be amended, would apply on a
per transaction and would apply to market participants generally.
Although ICE Clear Europe may use revenue from additional fees to
support liquidity and other incentive arrangements for Gilt contracts,
ICE Clear Europe believes that any such incentives that may be adopted
will be appropriately tailored to support additional trading and
liquidity in the contracts. 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.\13\
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\12\ 15 U.S.C. 78q-1(b)(3)(F).
\13\ 15 U.S.C. 78q-1(b)(3)(F).
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(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 increasing certain clearing fees, as set forth herein,
it believes such changes are appropriate to reflect the costs and
expenses incurred by the Clearing House in clearing the relevant
Contracts and are consistent with other contracts cleared at the
Clearing House and similar contracts cleared on other venues. The
amendments would also support appropriate liquidity and other incentive
arrangements to further develop trading. ICE Clear Europe does not
believe that the amendments would adversely affect the ability of
Clearing Members or other market participants generally to access
clearing services for the Contracts. Further, since the revised fees
will be the base rate applicable to all Clearing Members and market
participants that clear the products, 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 amendment has 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)
[[Page 5050]]
of the Act \14\ and paragraph (f) of Rule 19b-4 \15\ thereunder. At any
time within 60 days of the filing of the proposed rule change, the
Commission summarily may temporarily suspend such rule change if it
appears to the Commission that such action is necessary or appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the Act.
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\14\ 15 U.S.C. 78s(b)(3)(A).
\15\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, security-based swap submission or advance notice 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-2023-001 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-2023-001. 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-2023-001 and should be
submitted on or before February 16, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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\16\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01515 Filed 1-25-23; 8:45 am]
BILLING CODE 8011-01-P
