Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments Part O of Its Delivery Procedures, 54685-54687 [2023-17211]
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Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Notices
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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–ISE–2023–13 and should be
submitted on or before September 1,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.90
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–17208 Filed 8–10–23; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–98072; File No. SR–ICEEU–
2023–017]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
and Immediate Effectiveness of
Proposed Rule Change Relating to
Amendments Part O of Its Delivery
Procedures
lotter on DSK11XQN23PROD with NOTICES1
August 7, 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 July 26,
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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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 Part O of its Delivery
Procedures 5 (for Financials and Softs
Cocoa Contracts) to provide for use of a
new Softs Delivery Platform, make
certain changes to the delivery timetable
and delivery documentation, and
address certain matters relating to
allocation and the conversion of lots.
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
SECURITIES AND EXCHANGE
COMMISSION
90 17
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.
(a) Purpose
ICE Clear Europe is proposing to
amend Part O of its Delivery Procedures
to amend certain delivery specifications
for ICE Futures Europe Financials and
Softs Cocoa Futures Contracts (‘‘Cocoa
Contracts’’) to reflect the
implementation of a new Softs
Deliveries Platform to be used for
deliveries under the Contract. A
conforming change would also be made
3 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(4)(ii).
5 Capitalized terms used but not defined herein
have the meanings specified in the Delivery
Procedures or, if not defined therein, the ICE Clear
Europe Clearing Rules.
4 17
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54685
in the introductory section of the
Delivery Procedures. Certain other
provisions in Part O relating to the
delivery timetable and allocation and
conversion of lots would also be
amended, as described herein, in
connection with the implementation of
the Softs Delivery Platform.
In the General Provisions section of
the Delivery Procedures, in paragraph
21, references to the new Softs Delivery
Platform as the electronic system used
for making and taking delivery under
cocoa contracts would be added
(alongside the existing Guardian system,
which will continue to be used for
deliveries under coffee contracts). The
amendments would also remove an
incorrect reference to bonds (for which
neither Guardian nor the new Softs
Delivery Platform is used).
The proposed amendments in Part O
of the Delivery Procedures would
replace relevant references to the
Guardian delivery system throughout
Part O with the new Softs Delivery
Platform and otherwise remove
references to the Guardian delivery
system, such that transfers of warrants
would be made through the Softs
Delivery Platform and applicable
delivery notices and other specified
delivery documentation relevant to
Sellers and Buyers would be provided
or made available through the Softs
Delivery Platform.
Procedures for allocations of cocoa,
including notifications and reports
relating to allocations would be
reorganized and consolidated into a
single provision for simplicity and
clarity. As proposed to be revised,
reports relating to allocation details
would be made available to both Sellers
and Buyers through the Clearing House
MFT system.
The amendments also update the
content of reports made available to
Seller and Buyer to remove general
references to ‘‘delivery details’’
throughout Part O, as the relevant
information is provided in the specific
referenced reports provided through the
Softs Delivery Platform. The names of
certain reports would also be updated
throughout Part O, specifically with
references to final account sale reports
changed to account sale reports and
references to final invoice reports
changed to Buyers invoice reports.
The timing for certain notifications
related to the conversion of lots would
be moved from by 16:00 LPT (in the
case of certain directions by the Clearing
House) and after 16:00 LPT (in the case
of the availability of conversion details
for Sellers), to after 10:00 LPT in both
scenarios. The amendments would also
remove an incorrect reference about
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54686
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Notices
lotter on DSK11XQN23PROD with NOTICES1
converting bulk delivery units into large
delivery units. The amendments would
change the system used to send Sellers
and Buyers information relating to LDU
Conversion Notices from Guardian to
MFT. With respect to certain notices to
be provided by Sellers in response to a
direction by the Clearing House to
convert bulk or large delivery units,
references to the use of Guardian (or a
successor system) would be removed as
unnecessary in light of the introduction
of the Softs Delivery Platform. In the
provisions relating to BDU conversion
notices, the reference in the left column
to ‘‘Extension to Conversion’’ would be
deleted, as it is not necessary and does
not relate to the 16:00 deadline.
The amendments also update the
summary of required delivery
documentation. Specifically,
amendments would clarify that invoices
and account sales statements would be
provided through MFT. References to
provisional invoices in the case of
conversion would be removed as
unnecessary in light of other reports
made available to Buyer and Sellers. A
reference to warrant delivery
instructions report would be removed as
outdated in light of the manner in
which delivery is made under the
contract.
(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 6
and the regulations thereunder
applicable to it. In particular, Section
17A(b)(3)(F) of the Act 7 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
public interest. The proposed changes to
the Delivery Procedures are designed to
revise ICE Clear Europe’s delivery
arrangements relating to Cocoa
Contracts to reflect the implementation
and use of the new Softs Delivery
Platform for delivery under such
contracts. As part of the implementation
of the Softs Delivery Platform, the
delivery timetable and provisions
relating to allocation and conversion of
lots would be amended for clarity, to
update the systems used for notice and
to remove unnecessary provisions.
Notably, the amendments would replace
references to use of existing Guardian
system with references to use of the
Softs Delivery Platform or MFT system,
as appropriate. In connection with the
implementation of the Softs Delivery
Platform, the amendments revise and
simplify the process for allocations and
conversion of lots by the Clearing House
and certain related delivery notification
and delivery documentation
requirements. The contracts will
otherwise continue to be cleared by ICE
Clear Europe in the same manner as
they are currently. In ICE Clear Europe’s
view, the amendments are thus
consistent with the prompt and accurate
clearance and settlement of cleared
contracts and the protection of investors
and the public interest. (ICE Clear
Europe would not expect the
amendments to affect the safeguarding
of securities and funds in ICE Clear
Europe’s custody or control or for which
it is responsible). Accordingly, the
amendments satisfy the requirements of
Section 17A(b)(3)(F).8
In addition, Rule 17Ad–22(e)(10) 9
requires that each covered clearing
agency ‘‘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 clarify
the delivery specifications for Cocoa
Contracts to reference the new Softs
Delivery Platform. The amendments
would also make consistent with the
new Softs Delivery Platform certain
obligations of the Clearing House and
Buyers and Sellers in the delivery
process, including with respect to
allocations and conversions and related
notifications. The amendments would
not otherwise change the manner in
which the contracts are cleared or in
which delivery is made, as supported by
ICE Clear Europe’s existing financial
resources, risk management, systems
and operational arrangements. The
amendments thus clarify the role and
responsibilities of the Clearing House
and Clearing Members with respect to
delivery. As a result, ICE Clear Europe
believes the amendments are consistent
with the requirements of Rule 17Ad–
22(e)(10).10
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(10).
10 17 CFR 240.17Ad–22(e)(10).
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed amendments would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The amendments
are being adopted to update and clarify
the delivery specifications in the
Delivery Procedures in connection with
Cocoa Contracts, principally with
respect to the use of the Softs Delivery
Platform. ICE Clear Europe does not
expect that the proposed changes will
adversely affect access to clearing or the
ability of Clearing Members, their
customers or other market participants
to continue to clear contracts. ICE Clear
Europe also does not believe the
amendments would materially affect the
cost of clearing or otherwise impact
competition among Clearing Members
or other market participants or limit
market participants’ choices for
selecting clearing services. Accordingly,
ICE Clear Europe does not believe the
amendments would impose any burden
on competition not necessary or
appropriate in furtherance of the
purpose of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed amendments have not been
solicited or received by ICE Clear
Europe. ICE Clear Europe will notify the
Commission of any written comments
received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section 19(b)(3)(A)
of the Act 11 and paragraph (f) of Rule
19b–4 12 thereunder. At any time within
60 days of the filing of the proposed rule
change, the Commission summarily may
temporarily suspend such rule change if
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.
8 15
9 17
6 15
U.S.C. 78q–1.
7 15 U.S.C. 78q–1(b)(3)(F).
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12 17
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U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
11AUN1
Federal Register / Vol. 88, No. 154 / Friday, August 11, 2023 / Notices
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICEEU–2023–017 on the subject line.
Paper Comments
lotter on DSK11XQN23PROD with NOTICES1
• 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–2023–017. 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.
Do not include personal identifiable
information in submissions; you should
submit only information that you wish
to make available publicly. We may
redact in part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–ICEEU–2023–017
and should be submitted on or before
September 1, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–17211 Filed 8–10–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98073; File No. SR–BOX–
2023–21]
Self-Regulatory Organizations; BOX
Exchange LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend Rule 5020
(Criteria for Underlying Securities) To
Accelerate the Listing of Options on
Certain IPOs
August 7, 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 August 3,
2023, BOX Exchange LLC (‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
BOX Rule 5020 (Criteria for Underlying
Securities) to permit an underlying
security having a market capitalization
of at least $3 billion based upon the
offering price of its initial public
offering, to be listed and traded starting
on or after the second business day
following the initial public offering day.
The text of the proposed rule change is
available from the principal office of the
Exchange, at the Commission’s Public
Reference Room and also on the
Exchange’s internet website at https://
rules.boxexchange.com/rulefilings.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
13 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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54687
and discussed any comments it received
on the proposed rule change. The text
of these statements may be examined at
the places specified in Item IV below.
The self-regulatory organization has
prepared summaries, set forth in
Sections A, B, and C below, of the most
significant aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange is proposing a listings
rule change that is substantially similar
in all material respects to the proposal
approved for NYSE American LLC
(‘‘NYSE American’’).3 Specifically, the
Exchange proposes to amend BOX Rule
5020 (Criteria for Underlying Securities)
to permit an underlying security having
a market capitalization of at least $3
billion based upon the offering price of
its initial public offering, to be listed
and traded starting on or after the
second business day following the
initial public offering day. This is a
competitive filing that is based on a
proposal recently submitted by NYSE
American and approved by the
Commission.4
The purpose of the proposed rule
change is to amend Rule 5020 (Criteria
for Underlying Securities) (the ‘‘Rule’’)
as set forth below. Following
discussions with other exchanges and a
cross-section of industry participants
and in coordination with the Listed
Options Market Structure Working
Group (‘‘LOMSWG’’) (collectively, the
‘‘Industry Working Group’’), the
Exchange proposes to modify the
standard set forth in the Rule for the
listing and trading of options on
‘‘covered securities’’ to reduce the time
to market.
Rule 5020(b)(5)(i) sets forth the
guidelines to be considered in
evaluating for option transactions
underlying securities that are ‘‘covered
securities,’’ as defined in Section
18(b)(1)(A) of the Securities Act of 1933
(hereinafter ‘‘covered security’’ or
‘‘covered securities’’).5 Currently, the
Exchange permits the listing of an
option on an underlying covered
3 See Securities Exchange Act Release No. 98013
(July 27, 2023) (Order Approving SR–NYSEAMER–
2023–27).
4 Id.
5 Rule 5020(a) requires that, for underlying
securities to be eligible for option transactions, such
securities must be duly registered and be an ‘‘NMS
stock’’ as defined in Rule 600 of Regulation NMS
under the Act and will be characterized by a
substantial number of outstanding shares which are
widely held and actively traded. See BOX Rules
5020(a)(1) and (2).
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]]>Agencies
[Federal Register Volume 88, Number 154 (Friday, August 11, 2023)]
[Notices]
[Pages 54685-54687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17211]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98072; File No. SR-ICEEU-2023-017]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments Part O of Its Delivery Procedures
August 7, 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 July 26, 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 Part O of its Delivery Procedures \5\ (for
Financials and Softs Cocoa Contracts) to provide for use of a new Softs
Delivery Platform, make certain changes to the delivery timetable and
delivery documentation, and address certain matters relating to
allocation and the conversion of lots.
---------------------------------------------------------------------------
\5\ Capitalized terms used but not defined herein have the
meanings specified in the Delivery Procedures or, if not defined
therein, 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 amend Part O of its Delivery
Procedures to amend certain delivery specifications for ICE Futures
Europe Financials and Softs Cocoa Futures Contracts (``Cocoa
Contracts'') to reflect the implementation of a new Softs Deliveries
Platform to be used for deliveries under the Contract. A conforming
change would also be made in the introductory section of the Delivery
Procedures. Certain other provisions in Part O relating to the delivery
timetable and allocation and conversion of lots would also be amended,
as described herein, in connection with the implementation of the Softs
Delivery Platform.
In the General Provisions section of the Delivery Procedures, in
paragraph 21, references to the new Softs Delivery Platform as the
electronic system used for making and taking delivery under cocoa
contracts would be added (alongside the existing Guardian system, which
will continue to be used for deliveries under coffee contracts). The
amendments would also remove an incorrect reference to bonds (for which
neither Guardian nor the new Softs Delivery Platform is used).
The proposed amendments in Part O of the Delivery Procedures would
replace relevant references to the Guardian delivery system throughout
Part O with the new Softs Delivery Platform and otherwise remove
references to the Guardian delivery system, such that transfers of
warrants would be made through the Softs Delivery Platform and
applicable delivery notices and other specified delivery documentation
relevant to Sellers and Buyers would be provided or made available
through the Softs Delivery Platform.
Procedures for allocations of cocoa, including notifications and
reports relating to allocations would be reorganized and consolidated
into a single provision for simplicity and clarity. As proposed to be
revised, reports relating to allocation details would be made available
to both Sellers and Buyers through the Clearing House MFT system.
The amendments also update the content of reports made available to
Seller and Buyer to remove general references to ``delivery details''
throughout Part O, as the relevant information is provided in the
specific referenced reports provided through the Softs Delivery
Platform. The names of certain reports would also be updated throughout
Part O, specifically with references to final account sale reports
changed to account sale reports and references to final invoice reports
changed to Buyers invoice reports.
The timing for certain notifications related to the conversion of
lots would be moved from by 16:00 LPT (in the case of certain
directions by the Clearing House) and after 16:00 LPT (in the case of
the availability of conversion details for Sellers), to after 10:00 LPT
in both scenarios. The amendments would also remove an incorrect
reference about
[[Page 54686]]
converting bulk delivery units into large delivery units. The
amendments would change the system used to send Sellers and Buyers
information relating to LDU Conversion Notices from Guardian to MFT.
With respect to certain notices to be provided by Sellers in response
to a direction by the Clearing House to convert bulk or large delivery
units, references to the use of Guardian (or a successor system) would
be removed as unnecessary in light of the introduction of the Softs
Delivery Platform. In the provisions relating to BDU conversion
notices, the reference in the left column to ``Extension to
Conversion'' would be deleted, as it is not necessary and does not
relate to the 16:00 deadline.
The amendments also update the summary of required delivery
documentation. Specifically, amendments would clarify that invoices and
account sales statements would be provided through MFT. References to
provisional invoices in the case of conversion would be removed as
unnecessary in light of other reports made available to Buyer and
Sellers. A reference to warrant delivery instructions report would be
removed as outdated in light of the manner in which delivery is made
under the contract.
(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 \6\ and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(F) of the Act \7\ 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 public interest. The proposed
changes to the Delivery Procedures are designed to revise ICE Clear
Europe's delivery arrangements relating to Cocoa Contracts to reflect
the implementation and use of the new Softs Delivery Platform for
delivery under such contracts. As part of the implementation of the
Softs Delivery Platform, the delivery timetable and provisions relating
to allocation and conversion of lots would be amended for clarity, to
update the systems used for notice and to remove unnecessary
provisions. Notably, the amendments would replace references to use of
existing Guardian system with references to use of the Softs Delivery
Platform or MFT system, as appropriate. In connection with the
implementation of the Softs Delivery Platform, the amendments revise
and simplify the process for allocations and conversion of lots by the
Clearing House and certain related delivery notification and delivery
documentation requirements. The contracts will otherwise continue to be
cleared by ICE Clear Europe in the same manner as they are currently.
In ICE Clear Europe's view, the amendments are thus consistent with the
prompt and accurate clearance and settlement of cleared contracts and
the protection of investors and the public interest. (ICE Clear Europe
would not expect the amendments to affect the safeguarding of
securities and funds in ICE Clear Europe's custody or control or for
which it is responsible). Accordingly, the amendments satisfy the
requirements of Section 17A(b)(3)(F).\8\
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\6\ 15 U.S.C. 78q-1.
\7\ 15 U.S.C. 78q-1(b)(3)(F).
\8\ 15 U.S.C. 78q-1(b)(3)(F).
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In addition, Rule 17Ad-22(e)(10) \9\ requires that each covered
clearing agency ``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 clarify the
delivery specifications for Cocoa Contracts to reference the new Softs
Delivery Platform. The amendments would also make consistent with the
new Softs Delivery Platform certain obligations of the Clearing House
and Buyers and Sellers in the delivery process, including with respect
to allocations and conversions and related notifications. The
amendments would not otherwise change the manner in which the contracts
are cleared or in which delivery is made, as supported by ICE Clear
Europe's existing financial resources, risk management, systems and
operational arrangements. The amendments thus clarify the role and
responsibilities of the Clearing House and Clearing Members with
respect to delivery. As a result, ICE Clear Europe believes the
amendments are consistent with the requirements of Rule 17Ad-
22(e)(10).\10\
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\9\ 17 CFR 240.17Ad-22(e)(10).
\10\ 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 amendments
are being adopted to update and clarify the delivery specifications in
the Delivery Procedures in connection with Cocoa Contracts, principally
with respect to the use of the Softs Delivery Platform. ICE Clear
Europe does not expect that the proposed changes will adversely affect
access to clearing or the ability of Clearing Members, their customers
or other market participants to continue to clear contracts. ICE Clear
Europe also does not believe the amendments would materially affect the
cost of clearing or otherwise impact competition among Clearing Members
or other market participants or limit market participants' choices for
selecting clearing services. Accordingly, ICE Clear Europe does not
believe the amendments would impose any burden on competition not
necessary or appropriate in furtherance of the purpose of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others
Written comments relating to the proposed amendments have not been
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any written comments received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if 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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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 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.
[[Page 54687]]
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-2023-017 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-2023-017. 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.
Do not include personal identifiable information in submissions;
you should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-ICEEU-2023-017 and
should be submitted on or before September 1, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-17211 Filed 8-10-23; 8:45 am]
BILLING CODE 8011-01-P
