Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Delivery Procedures, 6349-6351 [2023-01880]
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Federal Register / Vol. 88, No. 20 / Tuesday, January 31, 2023 / Notices
thereof.26 For these reasons, the
Commission believes that waiver of the
30-day operative delay for this proposal
is consistent with the protection of
investors and the public interest.
Accordingly, the Commission hereby
waives the 30-day operative delay and
designates the proposal operative upon
filing.27
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. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
khammond on DSKJM1Z7X2PROD with NOTICES
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–
FINRA–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–FINRA–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
26 See SR–FINRA–2020–015, 85 FR at 31833; see
also SR–FINRA–2020–027, 85 FR at 55712.
27 For purposes only of waiving the 30-day
operative delay, the Commission has considered the
proposed rule change’s impact on efficiency,
competition, and capital formation. See 15 U.S.C.
78c(f).
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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
filing also will be available for
inspection and copying at the principal
office of FINRA. 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–FINRA–
2023–001 and should be submitted on
or before February 21, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.28
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023–01878 Filed 1–30–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–96749; File No. SR–ICEEU–
2023–002]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments to the ICE Clear Europe
Delivery Procedures
January 25, 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
12, 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)(4)(ii) thereunder,4 such that the
proposed rule change was immediately
effective upon filing with the
Commission. The Commission is
28 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(4)(ii).
1 15
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6349
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
ICE Clear Europe Limited (‘‘ICE Clear
Europe’’ or the ‘‘Clearing House’’)
proposes to amend its Delivery
Procedures (‘‘Delivery Procedures’’) to
make certain clarifications and updates.
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, ICE
Clear Europe included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. ICE
Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C)
below, of the most significant aspects of
such statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
The amendments to Part A, which
applies to ICE Endex Deliverable EU
Emissions Contracts, would reflect that,
as provided in ICE Endex’s Circular
E22/012,5 ICE Endex will delist
Aviation Emissions Allowance or
‘‘EUAA’’ Futures Contracts following
the expiry of the December 2022
contract month and, commencing with
the January 2023 contract month,
EUAAs would become eligible for
delivery under the existing ICE Endex
Carbon Emissions Allowance or ‘‘EUA’’
daily and monthly Contracts.6
Conforming changes would be made in
Part A, including to remove references
to ‘‘ICE Endex EUAA Futures Contracts’’
and to reflect that EUAAs may be
delivered under the delivery
specifications applicable to the EUA
daily and monthly contracts (through an
amendment to the term Carbon
Emission Allowance Contract and
related changes in the delivery
timetable). Certain related drafting
amendments would be made in Part A
to reflect such updates including the
removal of related definitions and other
terms (for example, the removal of the
5 ICE Endex Circular E22/012 is available at the
following website: https://www.theice.com/
publicdocs/endex/circulars/E22012.pdf.
6 Accordingly, the amendments to Part A will
become operative following expiry of the December
2022 contract month.
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Federal Register / Vol. 88, No. 20 / Tuesday, January 31, 2023 / Notices
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definitions of ‘‘Allowance Type’’ and
‘‘Aviation Emissions Allowance
Contract’’) which would no longer be
applicable.
The definition for the term
‘‘Communication Link’’ would be
included in Part A in place of the crossreference to the definition assigned in
the ICE Endex Rules. The amendments
provide that ‘‘Communication Link’’
means the electronic exchange of
messages or notifications by which
Buyers and Sellers communicate with
the Registry, and/or by which the
Registry communicates with the
European Union Transaction Log which
is necessary to facilitate a Transfer
Request. This update is intended to
improve clarity. The definition of
‘‘Emissions Directive’’ would be
amended to include a reference to the
most recent relevant EU directive,
Directive 2018/410 of the European
Parliament and of the European Council
of 14 March 2018. The amendments also
amend the definition of the term
‘‘Transfer Request’’ to mean a request to
affect a transfer of an EUA and/or EUAA
submitted by a Seller to the Registry as
required by the Registry Regulations,
relevant applicable law and otherwise
in accordance with the ICE Clear Europe
Rules and ICE Endex Rules. Previously,
such definition crossed-referenced a
definition of ‘‘Allowance Transfer
Request’’ which was not defined in the
Delivery Procedures. Separate
definitions of ‘‘Aviation Emissions
Allowance Transfer Request’’ and
‘‘Carbon Emissions Allowance Transfer
Request’’ would be removed as
unnecessary given the revised definition
of Transfer Request. Certain other nonsubstantive drafting clarifications would
be made.
Timing for EFP Reporting
The amendments to Parts D (which
apply to ICE Futures UK NBP Natural
Gas Daily Futures), F (which applies to
ICE Endex Dutch TTF Natural Gas Daily
Futures), and EE (which applies to ICE
Endex Austrian CEGH VTP Natural Gas
Daily Futures) are intended to address
inconsistencies regarding the timing of
reporting of Exchange for Physicals
(EFP) and Exchange for Swaps (EFS)
transactions related to certain contracts.
The amendments to Part D would
correct Section 2.5(b) to state that ICE
Futures UK NBP Natural Gas Daily
Futures cease trading at 17:00 hours on
the Business Day prior to the Delivery
Day, to be consistent with exchange
rules. The amendments to Part D would
provide in Section 2.6 that for ICE
Futures UK NBP Natural Gas Daily
Futures, in accordance with the ICE
Clear Europe Clearing Rules, EFPs and
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EFSs may be posted up to 30 minutes
following the cessation of trading. (The
change thus eliminates an inconsistency
with exchange rules.) Such timing
update would also be reflected in the
delivery table for the same contracts in
Section 5.2. In the delivery timetable for
ICE Endex Dutch TTF Natural Gas Daily
Futures in Section 6.2 of Part F, the
amendments would clarify that EFPs
and EFS may be posted up to 30
minutes following the cessation of
trading (in order to make the timetable
consistent with paragraph 3.6 of Part F).
The amendments would also update the
delivery timetable for ICE Endex
Austrian CEGH VTP Natural Gas Daily
Futures in Section 8 of Part EE such that
the time specified in such table reflects
the narrative which provides that EFPs
and EFSs may be posted up to 30
minutes following the cessation of
trading.
Changes to Naming Conventions
To apply consistency to the contract
names of certain natural gas futures
contracts, the Clearing House would
change the name of ‘‘TTF Natural Gas
Futures’’ to ‘‘Dutch TTF Natural Gas
Futures’’, ‘‘TTF Natural Gas Daily
Futures’’ to ‘‘Dutch TTF Natural Gas
Daily Futures’’, ‘‘TTF Natural Gas
Working Days Next Week’’ to ‘‘Dutch
TTF Natural Gas Working Days Next
Week, ‘‘UK Natural Gas Futures’’ to ‘‘UK
NBP Natural Gas Futures’’, ‘‘UK Natural
Gas Daily Futures’’ to ‘‘UK NBP Natural
Gas Daily Futures’’, ‘‘UK Natural Gas
(EUR/MWh) Futures’’ to ‘‘UK NBP
Natural Gas (EUR/MWh) Futures’’,
‘‘PSV Natural Gas Futures’’ to ‘‘Italian
PSV Natural Gas’’, ‘‘ICE Endex VTP
Natural Gas Futures’’ and ‘‘CEGH
Austrian VTP Natural Gas Futures’’ to
‘‘ICE Endex Austrian CEGH VTP Natural
Gas Futures’’, ‘‘ICE Endex VTP Natural
Gas Daily Future’’ to ‘‘ICE Endex
Austrian CEGH VTP Natural Gas Daily
Futures, and ‘‘ICE Endex PEG Natural
Gas Futures’’ to ‘‘ICE Endex French PEG
Natural Gas Futures’’. Such changes
would be made where relevant in Parts
D (which applies to UK natural gas
futures contracts), F (which applies to
ICE Endex Dutch natural gas futures),
AA (which applies to Italian natural gas
futures), EE (which applies to Austrian
natural gas futures), and HH (which
applies to the French natural gas
futures) of the Delivery Procedures.
Paragraphs 5 and 13 of the introductory
section to the Delivery Procedures
would also be updated to reflect the
name changes.
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Delisting of Belgian ZTP Natural Gas
Contracts
Part I of the Delivery Procedures
(which applied to ICE Endex ZTP
Natural Gas Futures Contracts) would be
deleted in its entirety as such contracts
are no longer listed for trading at ICE
Endex. Similarly, Part J would be
amended to remove all references to ICE
Endex Spot Market ZTP Natural Gas
Spot Contracts and ICE Endex Spot
Market ZTPL Natural Gas Spot
Contracts, which are also no longer
listed for trading at ICE Endex.
Corresponding changes would be made
in paragraph 5 of the introductory
section of the Delivery Procedures and
in the Table of Contents.
Delivery Timetable for Deliverable US
Emissions Contracts
The amendments would revise the
delivery timetable in Part N (which
applies to ICE Deliverable US Emissions
Contracts) to remove unnecessary
provisions in the final row relating to
confirmation of delivery on the Delivery
Day. The relevant obligations relating to
confirmation of delivery are already
covered in the preceding rows of the
timetable. The remaining language in
that row would be removed in order to
avoid any incorrect implication that
delivery could be made following the
relevant Delivery Day. The amendments
do not change the terms and conditions
of the relevant contract.
Other Updates
Updates to the table of contents and
various section headings would be made
to conform to changes described above.
A conforming reference to the ICE
Endex Austrian CEGH VTP Natural Gas
Daily Futures Contract would be added
in paragraph 5.1 (such reference had
previously been omitted).
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the Delivery
Procedures are consistent with the
requirements of Section 17A of the Act 7
and the regulations thereunder
applicable to it. In particular, Section
17A(b)(3)(F) of the Act 8 requires, among
other things, that the rules of a clearing
agency be designed to promote the
prompt and accurate clearance and
settlement of securities transactions
and, to the extent applicable, derivative
agreements, contracts, and transactions,
the safeguarding of securities and funds
in the custody or control of the clearing
agency or for which it is responsible,
and the protection of investors and the
7 15
8 15
E:\FR\FM\31JAN1.SGM
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
31JAN1
Federal Register / Vol. 88, No. 20 / Tuesday, January 31, 2023 / Notices
public interest. The proposed changes
are intended to make a number of
updates and clarifications to the
Delivery Procedures for physically
settled F&O Contracts. The amendments
remove from the Delivery Procedures
certain contracts that have been delisted
by the relevant exchange. The
amendments also clarify the deadline
for submission of EFPs, EFSs for certain
contracts and update relevant naming
conventions, and remove duplicative
information, among other clarifications
and drafting updates. The amendments
would not otherwise affect the manner
in which such contracts are cleared and
settled. Accordingly, ICE Clear Europe
believes that the Delivery Procedures, as
amended, are sufficient to support
clearing of such contracts and to manage
the risks associated with such contracts.
As a result, in ICE Clear Europe’s view,
the amendments would be consistent
with the prompt and accurate clearance
and settlement of the contracts, the
safeguarding of funds or securities in
the custody or control of the clearing
agency or for which it is responsible,
and the protection of investors and the
public interest, consistent with the
requirements of Section 17A(b)(3)(F) of
the Act.9
In addition, Rule 17Ad–22(e)(10) 10
provides that ‘‘[e]ach covered clearing
agency shall establish, implement,
maintain and enforce written policies
and procedures reasonable designed to,
as applicable [. . .] establish and
maintain transparent written standards
that state its obligations with respect to
the delivery of physical instruments,
and establish and maintain operational
practices that identify, monitor and
manage the risks associated with such
physical deliveries.’’ As discussed
above, the amendments would amend
the delivery specifications to make
certain updates and clarifications, and
to remove provisions relating to delisted
contracts. As amended, the Delivery
Procedures appropriately set out the
role and responsibilities of the Clearing
House and Clearing Members with
respect to physical delivery. As a result,
ICE Clear Europe believes the
amendments are consistent with the
requirements of Rule 17Ad–22(e)(10).11
khammond on DSKJM1Z7X2PROD with NOTICES
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed amendments would have any
impact, or impose any burden, on
competition not necessary or
U.S.C. 78q–1(b)(3)(F).
10 17 CFR 240.17Ad–22(e)(10).
11 17 CFR 240.17Ad–22(e)(10).
appropriate in furtherance of the
purposes of the Act. The proposed
amendments to the Delivery Procedures
are intended to clarify certain delivery
procedures in respect of certain
physically settled energy contracts. The
amendments would not materially
change the rights or obligations of
Clearing Members or other market
participants. ICE Clear Europe does not
believe the amendments would
adversely affect competition among
Clearing Members, materially affect the
cost of clearing, adversely affect access
to clearing in the new contracts for
Clearing Members or their customers, or
otherwise adversely affect competition
in clearing services. Accordingly, ICE
Clear Europe does not believe that the
amendments would impose any impact
or burden on competition that is not
appropriate in furtherance of the
purpose of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed 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)
of the Act 12 and paragraph (f) of Rule
19b-4 13 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
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICEEU–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–ICEEU–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 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–2023–002
and should be submitted on or before
February 21, 2023.
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:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Electronic Comments
J. Matthew DeLesDernier,
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
[FR Doc. 2023–01880 Filed 1–30–23; 8:45 am]
Deputy Secretary.
BILLING CODE 8011–01–P
9 15
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
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CFR 200.30–3(a)(12).
31JAN1
]]>Agencies
[Federal Register Volume 88, Number 20 (Tuesday, January 31, 2023)]
[Notices]
[Pages 6349-6351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01880]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-96749; File No. SR-ICEEU-2023-002]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the ICE Clear Europe Delivery Procedures
January 25, 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 12, 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)(4)(ii)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4)(ii).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to amend its Delivery Procedures (``Delivery
Procedures'') to make certain clarifications and updates.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
The amendments to Part A, which applies to ICE Endex Deliverable EU
Emissions Contracts, would reflect that, as provided in ICE Endex's
Circular E22/012,\5\ ICE Endex will delist Aviation Emissions Allowance
or ``EUAA'' Futures Contracts following the expiry of the December 2022
contract month and, commencing with the January 2023 contract month,
EUAAs would become eligible for delivery under the existing ICE Endex
Carbon Emissions Allowance or ``EUA'' daily and monthly Contracts.\6\
Conforming changes would be made in Part A, including to remove
references to ``ICE Endex EUAA Futures Contracts'' and to reflect that
EUAAs may be delivered under the delivery specifications applicable to
the EUA daily and monthly contracts (through an amendment to the term
Carbon Emission Allowance Contract and related changes in the delivery
timetable). Certain related drafting amendments would be made in Part A
to reflect such updates including the removal of related definitions
and other terms (for example, the removal of the
[[Page 6350]]
definitions of ``Allowance Type'' and ``Aviation Emissions Allowance
Contract'') which would no longer be applicable.
---------------------------------------------------------------------------
\5\ ICE Endex Circular E22/012 is available at the following
website: https://www.theice.com/publicdocs/endex/circulars/E22012.pdf.
\6\ Accordingly, the amendments to Part A will become operative
following expiry of the December 2022 contract month.
---------------------------------------------------------------------------
The definition for the term ``Communication Link'' would be
included in Part A in place of the cross-reference to the definition
assigned in the ICE Endex Rules. The amendments provide that
``Communication Link'' means the electronic exchange of messages or
notifications by which Buyers and Sellers communicate with the
Registry, and/or by which the Registry communicates with the European
Union Transaction Log which is necessary to facilitate a Transfer
Request. This update is intended to improve clarity. The definition of
``Emissions Directive'' would be amended to include a reference to the
most recent relevant EU directive, Directive 2018/410 of the European
Parliament and of the European Council of 14 March 2018. The amendments
also amend the definition of the term ``Transfer Request'' to mean a
request to affect a transfer of an EUA and/or EUAA submitted by a
Seller to the Registry as required by the Registry Regulations,
relevant applicable law and otherwise in accordance with the ICE Clear
Europe Rules and ICE Endex Rules. Previously, such definition crossed-
referenced a definition of ``Allowance Transfer Request'' which was not
defined in the Delivery Procedures. Separate definitions of ``Aviation
Emissions Allowance Transfer Request'' and ``Carbon Emissions Allowance
Transfer Request'' would be removed as unnecessary given the revised
definition of Transfer Request. Certain other non-substantive drafting
clarifications would be made.
Timing for EFP Reporting
The amendments to Parts D (which apply to ICE Futures UK NBP
Natural Gas Daily Futures), F (which applies to ICE Endex Dutch TTF
Natural Gas Daily Futures), and EE (which applies to ICE Endex Austrian
CEGH VTP Natural Gas Daily Futures) are intended to address
inconsistencies regarding the timing of reporting of Exchange for
Physicals (EFP) and Exchange for Swaps (EFS) transactions related to
certain contracts. The amendments to Part D would correct Section
2.5(b) to state that ICE Futures UK NBP Natural Gas Daily Futures cease
trading at 17:00 hours on the Business Day prior to the Delivery Day,
to be consistent with exchange rules. The amendments to Part D would
provide in Section 2.6 that for ICE Futures UK NBP Natural Gas Daily
Futures, in accordance with the ICE Clear Europe Clearing Rules, EFPs
and EFSs may be posted up to 30 minutes following the cessation of
trading. (The change thus eliminates an inconsistency with exchange
rules.) Such timing update would also be reflected in the delivery
table for the same contracts in Section 5.2. In the delivery timetable
for ICE Endex Dutch TTF Natural Gas Daily Futures in Section 6.2 of
Part F, the amendments would clarify that EFPs and EFS may be posted up
to 30 minutes following the cessation of trading (in order to make the
timetable consistent with paragraph 3.6 of Part F). The amendments
would also update the delivery timetable for ICE Endex Austrian CEGH
VTP Natural Gas Daily Futures in Section 8 of Part EE such that the
time specified in such table reflects the narrative which provides that
EFPs and EFSs may be posted up to 30 minutes following the cessation of
trading.
Changes to Naming Conventions
To apply consistency to the contract names of certain natural gas
futures contracts, the Clearing House would change the name of ``TTF
Natural Gas Futures'' to ``Dutch TTF Natural Gas Futures'', ``TTF
Natural Gas Daily Futures'' to ``Dutch TTF Natural Gas Daily Futures'',
``TTF Natural Gas Working Days Next Week'' to ``Dutch TTF Natural Gas
Working Days Next Week, ``UK Natural Gas Futures'' to ``UK NBP Natural
Gas Futures'', ``UK Natural Gas Daily Futures'' to ``UK NBP Natural Gas
Daily Futures'', ``UK Natural Gas (EUR/MWh) Futures'' to ``UK NBP
Natural Gas (EUR/MWh) Futures'', ``PSV Natural Gas Futures'' to
``Italian PSV Natural Gas'', ``ICE Endex VTP Natural Gas Futures'' and
``CEGH Austrian VTP Natural Gas Futures'' to ``ICE Endex Austrian CEGH
VTP Natural Gas Futures'', ``ICE Endex VTP Natural Gas Daily Future''
to ``ICE Endex Austrian CEGH VTP Natural Gas Daily Futures, and ``ICE
Endex PEG Natural Gas Futures'' to ``ICE Endex French PEG Natural Gas
Futures''. Such changes would be made where relevant in Parts D (which
applies to UK natural gas futures contracts), F (which applies to ICE
Endex Dutch natural gas futures), AA (which applies to Italian natural
gas futures), EE (which applies to Austrian natural gas futures), and
HH (which applies to the French natural gas futures) of the Delivery
Procedures. Paragraphs 5 and 13 of the introductory section to the
Delivery Procedures would also be updated to reflect the name changes.
Delisting of Belgian ZTP Natural Gas Contracts
Part I of the Delivery Procedures (which applied to ICE Endex ZTP
Natural Gas Futures Contracts) would be deleted in its entirety as such
contracts are no longer listed for trading at ICE Endex. Similarly,
Part J would be amended to remove all references to ICE Endex Spot
Market ZTP Natural Gas Spot Contracts and ICE Endex Spot Market ZTPL
Natural Gas Spot Contracts, which are also no longer listed for trading
at ICE Endex. Corresponding changes would be made in paragraph 5 of the
introductory section of the Delivery Procedures and in the Table of
Contents.
Delivery Timetable for Deliverable US Emissions Contracts
The amendments would revise the delivery timetable in Part N (which
applies to ICE Deliverable US Emissions Contracts) to remove
unnecessary provisions in the final row relating to confirmation of
delivery on the Delivery Day. The relevant obligations relating to
confirmation of delivery are already covered in the preceding rows of
the timetable. The remaining language in that row would be removed in
order to avoid any incorrect implication that delivery could be made
following the relevant Delivery Day. The amendments do not change the
terms and conditions of the relevant contract.
Other Updates
Updates to the table of contents and various section headings would
be made to conform to changes described above. A conforming reference
to the ICE Endex Austrian CEGH VTP Natural Gas Daily Futures Contract
would be added in paragraph 5.1 (such reference had previously been
omitted).
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Delivery Procedures are consistent with the requirements of Section 17A
of the Act \7\ and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(F) of the Act \8\ requires, among other
things, that the rules of a clearing agency be designed to promote the
prompt and accurate clearance and settlement of securities transactions
and, to the extent applicable, derivative agreements, contracts, and
transactions, the safeguarding of securities and funds in the custody
or control of the clearing agency or for which it is responsible, and
the protection of investors and the
[[Page 6351]]
public interest. The proposed changes are intended to make a number of
updates and clarifications to the Delivery Procedures for physically
settled F&O Contracts. The amendments remove from the Delivery
Procedures certain contracts that have been delisted by the relevant
exchange. The amendments also clarify the deadline for submission of
EFPs, EFSs for certain contracts and update relevant naming
conventions, and remove duplicative information, among other
clarifications and drafting updates. The amendments would not otherwise
affect the manner in which such contracts are cleared and settled.
Accordingly, ICE Clear Europe believes that the Delivery Procedures, as
amended, are sufficient to support clearing of such contracts and to
manage the risks associated with such contracts. As a result, in ICE
Clear Europe's view, the amendments would be consistent with the prompt
and accurate clearance and settlement of the contracts, the
safeguarding of funds or securities in the custody or control of the
clearing agency or for which it is responsible, and the protection of
investors and the public interest, consistent with the requirements of
Section 17A(b)(3)(F) of the Act.\9\
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\7\ 15 U.S.C. 78q-1.
\8\ 15 U.S.C. 78q-1(b)(3)(F).
\9\ 15 U.S.C. 78q-1(b)(3)(F).
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In addition, Rule 17Ad-22(e)(10) \10\ provides that ``[e]ach
covered clearing agency shall establish, implement, maintain and
enforce written policies and procedures reasonable designed to, as
applicable [. . .] establish and maintain transparent written standards
that state its obligations with respect to the delivery of physical
instruments, and establish and maintain operational practices that
identify, monitor and manage the risks associated with such physical
deliveries.'' As discussed above, the amendments would amend the
delivery specifications to make certain updates and clarifications, and
to remove provisions relating to delisted contracts. As amended, the
Delivery Procedures appropriately set out the role and responsibilities
of the Clearing House and Clearing Members with respect to physical
delivery. As a result, ICE Clear Europe believes the amendments are
consistent with the requirements of Rule 17Ad-22(e)(10).\11\
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\10\ 17 CFR 240.17Ad-22(e)(10).
\11\ 17 CFR 240.17Ad-22(e)(10).
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(B) Clearing Agency's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed amendments would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
amendments to the Delivery Procedures are intended to clarify certain
delivery procedures in respect of certain physically settled energy
contracts. The amendments would not materially change the rights or
obligations of Clearing Members or other market participants. ICE Clear
Europe does not believe the amendments would adversely affect
competition among Clearing Members, materially affect the cost of
clearing, adversely affect access to clearing in the new contracts for
Clearing Members or their customers, or otherwise adversely affect
competition in clearing services. Accordingly, ICE Clear Europe does
not believe that the amendments would impose any impact or burden on
competition that is not appropriate in furtherance of the purpose of
the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed 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) of the Act \12\ and paragraph (f) of Rule 19b-4 \13\
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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml) or
Send an email to [email protected]. Please include
File Number SR-ICEEU-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-ICEEU-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 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-2023-002 and should be
submitted on or before February 21, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-01880 Filed 1-30-23; 8:45 am]
BILLING CODE 8011-01-P
