Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Relating to Amendments to the Wind Down Framework and Plan, 60001-60005 [2023-18676]
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Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Notices
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are filed with the Commission, and all
written communications relating to the
advance notice 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
self-regulatory organization.
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–OCC–2023–801 and
should be submitted on or before
September 20, 2023.
V. Date of Timing for Commission
Action
Section 806(e)(1)(G) of the Clearing
Supervision Act provides that OCC may
implement the changes if it has not
received an objection to the proposed
changes within 60 days of the later of (i)
the date that the Commission receives
an advance notice or (ii) the date that
any additional information requested by
the Commission is received,84 unless
extended as described below.
Pursuant to Section 806(e)(1)(H) of the
Clearing Supervision Act, the
Commission may extend the review
period of an advance notice for an
additional 60 days, if the changes
proposed in the advance notice raise
novel or complex issues, subject to the
Commission providing the clearing
agency with prompt written notice of
the extension.85
Here, as the Commission has not
requested any additional information,
the date that is 60 days after OCC filed
the advance notice with the
Commission is October 9, 2023.
However, the Commission finds the
issues raised by the advance notice
complex because OCC proposes changes
that touch on a core aspect of the link
between infrastructures supporting the
options and spot markets represented in
the Accord as well as requiring the
estimation of risk arising out of exercise
and assignment activity as compared to
the risk arising out of other activity
cleared by NSCC. Further, the proposal
84 12
85 12
U.S.C. 5465(e)(1)(G).
U.S.C. 5465(e)(1)(H).
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involves changes to OCC’s liquidity
stress testing framework. The
Commission also finds the issues raised
by the advance notice novel because the
proposal represents a material change to
the structure to the default management
practices defined in the Accord.
Therefore, the Commission finds it
appropriate to extend the review period
of the advance notice for an additional
60 days under Section 806(e)(1)(H) of
the Clearing Supervision Act.86
Accordingly, the Commission,
pursuant to Section 806(e)(1)(H) of the
Clearing Supervision Act,87 extends the
review period for an additional 60 days
so that the Commission shall have until
December 8, 2023 to issue an objection
or non-objection to advance notice SR–
OCC–2023–801.
All submissions should refer to File
Number SR–OCC–2023–801 and should
be submitted on or before September 20,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.88
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–18672 Filed 8–29–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98217; File No. SR–ICEEU–
2023–011]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change, as Modified
by Amendment No. 1, Relating to
Amendments to the Wind Down
Framework and Plan
August 24, 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
11, 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 primarily prepared by ICE
Clear Europe. On August 22, 2023, ICE
Clear Europe filed Amendment No. 1 to
the proposed rule change to make
certain changes to the Exhibit 5.3 The
86 Id.
87 Id.
88 17 CFR 200.30–3(a)(91) and 17 CFR 200.30–
3(a)(94).
1 15 U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Amendment No. 1 updates the Exhibit 5 to
correct the presentation of three of the proposed
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60001
Commission is publishing this notice to
solicit comments on the proposed rule
change, as modified by Amendment No.
1 (hereafter ‘‘the proposed rule
change’’), from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
ICE Clear Europe proposes to amend
its Wind Down Framework and Plan (to
be renamed the ‘‘Wind Down Plan’’)
(the ‘‘Plan’’) 4 to address the operation of
a wind-down planning committee,
update certain procedures and make
certain other clarifications relating to
the potential winding down for the
Clearing House.
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 its Wind Down Framework and
Plan to make certain updates and
enhancements. The proposed changes
would rename the plan as the ‘‘Wind
Down Plan’’ and make conforming
changes throughout. The amendments
would remove the Overview section and
the Context section as those sections
contain background information that is
not necessary to the Plan as well as
certain unnecessary references to
regulatory requirements and particular
regulators in certain jurisdictions. A
new executive summary section would
restate the purposes and objectives of
the Plan as setting out relevant
information, steps to take and options
available with respect to winding down
the business and compliance with all
relevant regulatory obligations with
changes to the Wind Down Framework and Plan
that were filed with the Commission on August 11,
2023. The proposed rule change includes an Exhibit
4. Exhibit 4 shows the change that Amendment No.
1 makes to the Exhibit 5.
4 Capitalized terms used but not defined herein
have the meanings specified in the Wind Down
Framework and Plan or, if not defined therein, the
ICE Clear Europe Clearing Rules.
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respect to wind-down. The amendment
would remove as unnecessary a nonexclusive description of certain
circumstances that might necessitate
wind-down and a statement of the
benefits of the successful operation of
the Clearing House’s Recovery Plan. A
reference to certain specific approval
requirements under EMIR that are no
longer applicable to ICE Clear Europe
has been removed, and reference to
other EMIR requirements would be
clarified to refer to such legislation as
on-shored in the United Kingdom under
applicable legislation following the
withdrawal of the United Kingdom from
the European Union.
The summary of the Plan would be
revised to provide that in considering
exiting of contractual obligations in the
case of wind-down, the Clearing House
would also consider other services that
it may be providing (including intragroup services). The discussion of the
structure of the Plan would remove as
unnecessary a statement that the Plan
reflects feedback that was received from
certain regulators. A reference to
consultation with other relevant
stakeholders before making final
decisions in connection with execution
of the Plan would be revised to state
that such consultation is likely rather
than necessary in all cases, to reflect
that different forms and extents of
consultation with particular
stakeholders may be appropriate for
different circumstances and proposed
actions. The proposed amendments
would move into the summary a section
relating to the execution of the plan,
which discusses the establishment and
responsibilities of the Wind Down
Planning Committee. The amendments
would describe the potential
membership of the committee, which
would be considered to include a chair
by a non-executive director and senior
officers and other advisors as
appropriate.
In the discussion of planning options,
certain non-substantive clarifications
would be made as to the choice between
transfer of clearing to another CCP or
termination of clearing. References to
‘‘Continuing CDS Rule Provisions’’
applying, including in lieu of Rule
105(c) of the Clearing Rules, in the
context of CDS product category
termination would be removed as such
provisions have been previously deleted
from the Rules. The discussion of
analysis, consultation and planning
would update the composition of the
Planning Committee (as discussed
above) and clarify that the impact of
plans on stakeholders other than
members should be considered. The
amendments would also clarify that in
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considering alternative CCPs, the
committee would consider such matters
as jurisdictional complications,
materially differing membership
requirements and the factoring of
relevant regulatory processes into the
proposed timelines. The amendments
would remove a consideration as to
whether members would accept a
particular contract not being available
for clearing at the time of transfer, as the
Clearing House believes transfer would
likely not be feasible in that scenario.
Similarly, for the termination option,
the amendments would add a reference
to consideration of whether regulators
would likely accept the termination and
the timeline for the related regulatory
process.
The amendments would also state
that the Clearing House would assess
the impact of services received and
provided and describe certain of the
factors that are relevant, including
timing and cost. The amendments
would also state an assumption that ICE
Clear Europe can continue to call and
receive margin and otherwise operate
during the wind-down period. However,
the amended Plan would acknowledge
that in the event of an unplanned
disruption from a Clearing Member
default, or in the event of a material
nondefault event or loss, revised
timelines and other actions may be
required.
The amendments would make a
number of clarifications to the
discussion of execution plans in the
context of the transfer of F&O clearing.
Changes to the list of assumptions and
activities of the Execution Plans as well
as timelines for transfer would note
jurisdictional considerations and the
fact that ICE Clear Europe currently
clears a diverse profile of products
(which may necessitate transfer of
different products to different
alternative CCPs). In this regard, the
amendments would remove an
assumption that there would be a
maximum of two recipient clearing
house for situations. In the situation
where the transferee clearing house does
not clear a relevant contract, and
development of such clearing is not
possible within an acceptable
timeframe, the amendments would
remove a statement suggesting that
transfer would be delayed until clearing
is available. ICE Clear Europe does not
believe such a delay would be feasible,
and accordingly the relevant positions
in that contract would be terminated.
References to the novation agreement to
be used in a transfer would be amended
to address transfer of related collateral
in addition to positions. Similarly, the
amended Plan would, in the scenario of
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a transfer to another clearing house,
address the testing of collateral
migration (in addition to position
migration) and provide for the transfer
of all relevant collateral (not only
margin) to the recipient clearing house,
in addition to the clearing members
positions. Additional changes would
update references to Clearing House
position management and other systems
such as FEC and ECS (or successors to
such systems). The anticipated timeline
for the transfer of F&O markets clearing
to recipient clearing houses would be
revised to be approximately six months
(instead of no more than six months), in
recognition of the difficulty of
predicting a maximum timeline. In
addition, the Clearing House has
acknowledged that the timeline may be
affected because the diverse product
groups currently cleared, may need to
involve more than one recipient clearing
house in a transfer. Amendments would
make other minor non-substantive
changes.
In the context of termination, the
amendments would clarify certain
arrangements around notice to Clearing
Members, consistent with the Rules.
The amendments would contemplate a
Withdrawal Date to be designated by the
Clearing House pursuant to the Rules,
rather than assuming a period of 5
months, to allow for more flexibility for
the timeframe to reflect the particular
circumstances of the termination. (In
ICE Clear Europe’s view, the time period
will not necessarily be exactly five
months, and that time period would
better be described as an
approximation.) The proposed
amendments would also adopt a revised
maturity profile for different product
groups based on expiration date. The
maturity profile may be materially
different between product groups; thus
it is appropriate for the Plan to consider
the profile based on the relevant group.
The amendments would revise
percentage of the total open contracts
expected to wind down naturally via an
expiration date within three months
from 35% to 30% based on the revised
maturity profile. The changes would
also clarify that new trades would be
accepted until the Withdrawal Date,
with the expectation that they serve to
reduce risk and reduce open interest.
The amendments would provide
additional clarifications about the
process of terminating an open position
at a Withdrawal Date, in accordance
with the Rules. The amendments will
also clarify the process by which
clearing members can close out open
positions themselves prior to the
Withdrawal Date, as well as clarify that
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all related margin (and not merely
initial margin) would be returned at
contract termination, consistent with
the Rules and Procedures. With respect
to the timeline for termination, the
amendments would clarify that the
anticipated timeline is approximately
(rather than exactly) five months,
reflecting the fact that the actual
timeline may depend on the particular
positions of Clearing Members at the
time. As discussed above, the
amendments would note that a differing
maturity profile for contracts may
require a different approach or timeline
by product group (even though the
termination process is common across
all maturities and product groups).
Conforming and clarifying changes
would be made to the lists of
assumptions and activities and the
timeline in this section.
Similar clarifications would be made
to sections of the Plan relating to
transfer and/or termination of the CDS
clearing business. These would include
references to consideration of
jurisdictional issues, recognition that in
the case of transfer an alternative CCP
may have different membership
requirements, recognition of the
regulatory and new product approval
processes that may apply, clarification
that termination through rebilateralisation may (rather than will)
occur if an alternative CCP is not
available in an acceptable timeframe,
clarification that in certain transfer
scenarios backloading of terminated
contracts once a new CCP is ready could
(rather than would) be done, and
clarification that all relevant collateral
(and not just margin) will be transferred
to recipient clearing house, among
others. The amendments would also
revise the expected timeline for a
transfer to be approximately 6 months,
rather than no more than six months, in
recognition of the difficulty of
predicting a maximum timeline. The
amendments would note that the
timeline is likely to be affected by
whether the open positions can be
transferred to a single clearing house, or
whether a transfer to multiple clearing
houses would be required. In several
places, the timeline for termination,
wind-down or re-bilateralisation of CDS
clearing would similarly be described as
approximately five months rather than
exactly five months. In the discussion of
continuation of CDS clearing services
until the time of termination, a
clarification would be made that such
clearing would continue on the basis of
reducing open interest (as opposed to
reducing volume).
In the discussion of terminating
service arrangements, the notice
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timeline would be revised to be
approximately (rather than exactly) 6
months and also to state that
appropriate notice would be given for
termination of employee contracts. The
amendments would note that the list of
relevant services and contracts is a
summary, and that the Clearing House
maintains a more complete inventory of
this service arrangements that should be
referenced in wind-down planning. As
amended, the Plan would also note that
IT services and licenses are largely
provided by other ICE Clear Europe
affiliates and that IT services provided
by third parties generally are not
expected to have a material impact to
wind-down planning. The changes to
the summary table would consolidate
the treatment of several clearing services
agreements with different affiliated ICE
markets into a single category for
consistency. The amendments would
also clarify that exit provisions
regarding the use of buildings and
building facilities provided by affiliates
are not part of intra-group agreements,
but would rather be managed by the
relevant boards and management of the
entities involved. Other changes would
include the addition of the Clearing and
Settlement Services Agreement with
Intercontinental Exchange Holdings, the
replacement of Dutch National Bank
with European Central Bank to reflect
the use of the latter as a concentration
bank, the change in reference to the
‘‘relevant ICE Exchanges,’’ and the
change in the Clearing and Settlement
Services Agreements notice time period
from 12 months to 24 months. Certain
non-substantive drafting clarifications
would also be made.
ICE Clear Europe has also proposed to
update the description of the Clearing
House’s current liquidity profile in
order to be consistent with (and
explicitly reference) the Clearing
House’s current Liquidity and
Investment Management Policy.
(Relevant sections of the Liquidity and
Investment Policy define the objective
and key strategy for the investment of
Cash. As per the policy, ICE Clear
Europe aims to only invest in cash or
highly liquid financial instruments with
minimal market and credit risk and
which are capable of being liquidated
quickly and with minimal losses).
Among other changes, the amendments
would clarify that collateral held as cash
from Clearing Members should be
immediately accessible or available at
short notice, with the vast majority of
funds being invested in high-quality
short-term instruments in accordance.
(Specific references to a maximum
maturity and weighted average life
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60003
would be removed). Outright purchases
should be limited to high quality and
liquid government debt that can be
liquidated on short notice in the
secondary market. Amendments would
also address availability of non-cash
assets for liquidity needs, consistent
with liquidity policies, and reference
the Clearing House’s liquidity stress
testing.
Consistent with the changes discussed
above, the overall conclusions for the
Plan would be revised to reflect that the
lengthiest time anticipated for winddown would be approximately (rather
than exactly) six months. Additionally,
the proposed amendments would note
that this estimate could be affected by
various external factors, including the
potential need to transfer positions to
multiple clearing venues given the
Clearing House’s product scope, which
could be more complicated (and take
more time) than a transfer to a single
venue. The impact of regulatory
approvals and processes could also
affect the timeline.
The discussion of governance and
oversight in the Plan would be replaced
with a new Document Governance and
Exception Handling section that is
consistent with other Clearing House
policies recently adopted or modified.5
This section would describe the
responsibilities for the document
owners in accordance with ICEU’s
governance processes, as well as breach
management, exception handling, and
document governance.
The proposed changes also make a
number of non-substantive changes to
the Plan throughout such as formatting
and typographical and similar
corrections.
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the Plan are
consistent with the requirements of
Section 17A of the Securities Exchange
Act of 1934 6 (‘‘Act’’) 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
5 See, e.g., The Counterparty Credit Risk Policy
and Procedures as described in Exchange Act
Release No. 34–97169, SR ICEEU–2023–004 (March
20, 2023) 88 FR 17886 (March 24, 2023); the
Investment Management Procedures as described in
Exchange Act Release No. 34–97528, SR ICEEU–
2023–009 (May 19, 2023) 88 FR 33949 (May 25,
2023; the Futures and Options Default Management
Policy as described in Exchange Act Release No.
34–97383, SR ICEEU–2023–012 (Apr. 26, 2023) 88
FR 27539 (May 2, 2023).
6 15 U.S.C. 78q–1.
7 15 U.S.C. 78q–1(b)(3)(F).
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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 Plan are intended to update and
clarify the Plan, including to address
more clearly the operation of the
planning committee. The amendments
would also update expected procedures
relating to transfer or termination of the
F&O and CDS clearing businesses,
respectively, in order to provide
appropriate flexibility and better take
into account certain characteristics of
the products cleared. The amendments
will help the Clearing House facilitate
an orderly transition or shut-down of a
clearing business in the event it is
unable to continue operations. 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.8
Rule 17Ad–22(e)(2) provides that
‘‘[e]ach covered clearing agency shall
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to, as applicable
[. . .] provide for governance
arrangements that are clear and
transparent’’ 9 and ‘‘[s]pecify clear and
direct lines of responsibility.’’ 10 The
amendments to the Plan would more
clearly state the responsibilities of the
Clearing House’s planning committee,
management and the Board in relation
to the Plan. In ICE Clear Europe’s view,
the amendments are therefore consistent
with the requirements of Rule 17Ad–
22(e)(2).11
The proposed amendments are also
consistent with Rule 17Ad–22(e)(17)(i),
which provides that ‘‘[e]ach covered
clearing agency shall establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to, as applicable
[. . .] manage the covered clearing
agency’s operational risks by identifying
the plausible sources of operational risk,
both internal and external, and
mitigating their impact through the use
of appropriate systems, policies,
8 15
U.S.C. 78q–1(b)(3)(F).
CFR 240.17 Ad–22(e)(2)(i).
10 17 CFR 240.17 Ad–22(e)(2)(v).
11 17 CFR 240.17 Ad–22(e)(2).
procedures, and controls.’’ 12 As
discussed above, the amendments
update and clarify various aspects of the
wind-down Plan to enhance the
planning process and take into account
the characteristics of the cleared
products in planning procedures for
transfer or termination. These
amendments are intended to help
mitigate the impact to market
participants of a potential wind-down.
In ICE Clear Europe’s view, the
amendments are therefore consistent
with the requirements of Rule 17Ad–
22(e)(17)(i).).13
(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 are being adopted to
update and clarify the Plan, all of which
relate to the Clearing House’s processes
for the wind down of the Clearing
House in the unlikely event that the
recovery plan does not succeed in
restoring normal operations after
significant loss events or the Clearing
House decides for business reasons it no
longer wishes to operate. ICE Clear
Europe does not believe the
amendments would affect in the
ordinary course of business the costs of
clearing, the ability of market
participants to access clearing, or the
market for clearing services generally.
Therefore, ICE Clear Europe does not
believe the proposed rule change
imposes any burden on competition that
is inappropriate 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 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
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
9 17
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13 17
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CFR 240.17 Ad–22(e)(17)(i).
CFR 240.17 Ad–22(e)(17)(i).
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to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) by order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml) or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
ICEEU–2023–011 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–2023–011. 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
a.m. and 3 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
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publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–ICEEU–2023–011
and should be submitted on or before
September 20, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–18676 Filed 8–29–23; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98216; File No. SR–CBOE–
2023–041]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Rules in
Connection With the Number of Legs
of a Complex Order That May Be
Entered on a Single Order Ticket at the
Time of Systemization
August 24, 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 August
17, 2023, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal pursuant to
Section 19(b)(3)(A)(iii) of the Act 3 and
Rule 19b–4(f)(6) thereunder.4 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
Cboe Exchange, Inc. (the ‘‘Exchange’’
or ‘‘Cboe Options’’) proposes to amend
its Rules in connection with the number
of legs of a complex order that may be
entered on a single order ticket at the
time of systemization. The text of the
proposed rule change is provided in
Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
14 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)(iii).
4 17 CFR 240.19b–4(f)(6).
1 15
VerDate Sep<11>2014
17:31 Aug 29, 2023
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
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
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange 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 proposes to amend its
Rules in connection with the number of
legs of a complex order that may be
entered on a single order ticket at the
time of systemization, for certain
complex order types.
Specifically, Rule 5.7(f) currently
provides that each order, cancellation
of, or change to an order transmitted to
the Exchange must be ‘‘systematized’’ in
a format approved by the Exchange,
either before it is sent to the Exchange
or upon receipt on the Exchange’s
trading floor. An order is systematized
if (1) the order is sent electronically to
the Exchange or (2) the order that is sent
to the Exchange non-electronically (e.g.,
telephone orders) is input electronically
into the Exchange’s systems
contemporaneously upon receipt on the
Exchange, and prior to representation of
the order. Any proprietary system
approved by the Exchange on the
Exchange’s trading floor that receives
orders is considered an Exchange
system for purposes of this Rule.5
Regarding the systemization of complex
orders, Rule 5.7(f)(4) particularly
provides that complex orders of 16 legs
or less (one leg of which may be for an
underlying security or security future,
as applicable) must be entered on a
single order ticket at time of
systemization. If permitted by the
Exchange, complex orders of more than
16 legs (one leg of which may be for an
underlying security or security future,
as applicable) may be split across
multiple order tickets, if the Trading
5 See
Jkt 259001
PO 00000
Rule 5.7.03.
Frm 00142
Fmt 4703
Sfmt 4703
60005
Permit Holder representing the complex
order uses the fewest order tickets
necessary to systematize the order and
identifies for the Exchange the order
tickets that are part of the same complex
order (in a form and manner prescribed
by the Exchange).
The Exchange notes that it adopted
the 16-leg maximum per order ticket in
2021 as a result of Exchange system
limitations.6 At that time, the Exchange
could only support the processing of up
to 16 legs on a single order ticket for
representation and execution in open
outcry as a complex order. Prior to that,
in 2015, the Exchange had adopted a 12leg maximum per order ticket.7 The
Exchange understands from Trading
Permit Holders (‘‘TPHs’’) that some
orders they receive do have more than
16 legs, and many order entry and
execution systems Floor Broker TPHs
use on the trading floor, including
Silexx,8 can support up to 100 legs. If
a Floor Broker TPH receives a complex
order for more than 16 legs for
execution on the trading floor, it
currently must break up the order into
multiple tickets in accordance with Rule
5.7(f)(4). The Exchange has enhanced its
System to be able to support a greater
number of legs per order ticket on the
trading floor. As such, the Exchange
proposes to amend Rule 5.7(f)(4) to
increase the 16 leg maximum per single
order ticket to a maximum of 100 legs
per single order ticket at time of
systemization, except for those complex
orders designated as Electronic Only,
which will continue to be subject to the
current 16 leg limitation.9
Pursuant to proposed Rule 5.7(f)(4),
complex orders of 100 legs or less (one
6 See Securities Exchange Act Release No. 34–
92116 (June 7, 2021), 86 FR 31361 (June 11, 2021)
(SR–CBOE–2021–036), which implemented the 16
leg per order requirement in current Rule 5.7(f)(4).
7 See Securities Exchange Act Release No. 74169
(January 29, 2015), 80 FR 6145 (February 4, 2015)
(SR–CBOE–2015–011), which implemented the
previous 12 leg per order requirement.
8 Each Floor Broker TPH has a Silexx workstation,
which can be used to systematize orders. Therefore,
each Floor Broker TPH will be able to immediately
comply with the proposed rule change. The Silexx
platform consists of a ‘‘front-end’’ order entry and
management trading platform (also referred to as
the ‘‘Silexx terminal’’) for listed stocks and options
that supports both simple and complex orders, and
a ‘‘back-end’’ platform which provides a connection
to the infrastructure network. From the Silexx
platform (i.e., the collective front-end and back-end
platform), a Silexx user has the capability to, among
other things, send option orders to U.S. options
exchanges and send stock orders to U.S. stock
exchanges (and other trading centers). The Silexx
platform is designed so that a user may enter orders
into the platform to send to an executing broker
(including TPHs) of its choice with connectivity to
the platform, which broker will then send the
orders to Cboe Options (if the broker is a TPH) or
other U.S. exchanges (and trading centers) in
accordance with the user’s instructions.
9 See proposed Rule 5.7(f)(4).
E:\FR\FM\30AUN1.SGM
30AUN1
]]>Agencies
[Federal Register Volume 88, Number 167 (Wednesday, August 30, 2023)]
[Notices]
[Pages 60001-60005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18676]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98217; File No. SR-ICEEU-2023-011]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change, as Modified by Amendment No. 1,
Relating to Amendments to the Wind Down Framework and Plan
August 24, 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 11, 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 primarily prepared by
ICE Clear Europe. On August 22, 2023, ICE Clear Europe filed Amendment
No. 1 to the proposed rule change to make certain changes to the
Exhibit 5.\3\ The Commission is publishing this notice to solicit
comments on the proposed rule change, as modified by Amendment No. 1
(hereafter ``the proposed rule change''), from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 updates the Exhibit 5 to correct the
presentation of three of the proposed changes to the Wind Down
Framework and Plan that were filed with the Commission on August 11,
2023. The proposed rule change includes an Exhibit 4. Exhibit 4
shows the change that Amendment No. 1 makes to the Exhibit 5.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
ICE Clear Europe proposes to amend its Wind Down Framework and Plan
(to be renamed the ``Wind Down Plan'') (the ``Plan'') \4\ to address
the operation of a wind-down planning committee, update certain
procedures and make certain other clarifications relating to the
potential winding down for the Clearing House.
---------------------------------------------------------------------------
\4\ Capitalized terms used but not defined herein have the
meanings specified in the Wind Down Framework and Plan 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 its Wind Down Framework and
Plan to make certain updates and enhancements. The proposed changes
would rename the plan as the ``Wind Down Plan'' and make conforming
changes throughout. The amendments would remove the Overview section
and the Context section as those sections contain background
information that is not necessary to the Plan as well as certain
unnecessary references to regulatory requirements and particular
regulators in certain jurisdictions. A new executive summary section
would restate the purposes and objectives of the Plan as setting out
relevant information, steps to take and options available with respect
to winding down the business and compliance with all relevant
regulatory obligations with
[[Page 60002]]
respect to wind-down. The amendment would remove as unnecessary a non-
exclusive description of certain circumstances that might necessitate
wind-down and a statement of the benefits of the successful operation
of the Clearing House's Recovery Plan. A reference to certain specific
approval requirements under EMIR that are no longer applicable to ICE
Clear Europe has been removed, and reference to other EMIR requirements
would be clarified to refer to such legislation as on-shored in the
United Kingdom under applicable legislation following the withdrawal of
the United Kingdom from the European Union.
The summary of the Plan would be revised to provide that in
considering exiting of contractual obligations in the case of wind-
down, the Clearing House would also consider other services that it may
be providing (including intra-group services). The discussion of the
structure of the Plan would remove as unnecessary a statement that the
Plan reflects feedback that was received from certain regulators. A
reference to consultation with other relevant stakeholders before
making final decisions in connection with execution of the Plan would
be revised to state that such consultation is likely rather than
necessary in all cases, to reflect that different forms and extents of
consultation with particular stakeholders may be appropriate for
different circumstances and proposed actions. The proposed amendments
would move into the summary a section relating to the execution of the
plan, which discusses the establishment and responsibilities of the
Wind Down Planning Committee. The amendments would describe the
potential membership of the committee, which would be considered to
include a chair by a non-executive director and senior officers and
other advisors as appropriate.
In the discussion of planning options, certain non-substantive
clarifications would be made as to the choice between transfer of
clearing to another CCP or termination of clearing. References to
``Continuing CDS Rule Provisions'' applying, including in lieu of Rule
105(c) of the Clearing Rules, in the context of CDS product category
termination would be removed as such provisions have been previously
deleted from the Rules. The discussion of analysis, consultation and
planning would update the composition of the Planning Committee (as
discussed above) and clarify that the impact of plans on stakeholders
other than members should be considered. The amendments would also
clarify that in considering alternative CCPs, the committee would
consider such matters as jurisdictional complications, materially
differing membership requirements and the factoring of relevant
regulatory processes into the proposed timelines. The amendments would
remove a consideration as to whether members would accept a particular
contract not being available for clearing at the time of transfer, as
the Clearing House believes transfer would likely not be feasible in
that scenario. Similarly, for the termination option, the amendments
would add a reference to consideration of whether regulators would
likely accept the termination and the timeline for the related
regulatory process.
The amendments would also state that the Clearing House would
assess the impact of services received and provided and describe
certain of the factors that are relevant, including timing and cost.
The amendments would also state an assumption that ICE Clear Europe can
continue to call and receive margin and otherwise operate during the
wind-down period. However, the amended Plan would acknowledge that in
the event of an unplanned disruption from a Clearing Member default, or
in the event of a material nondefault event or loss, revised timelines
and other actions may be required.
The amendments would make a number of clarifications to the
discussion of execution plans in the context of the transfer of F&O
clearing. Changes to the list of assumptions and activities of the
Execution Plans as well as timelines for transfer would note
jurisdictional considerations and the fact that ICE Clear Europe
currently clears a diverse profile of products (which may necessitate
transfer of different products to different alternative CCPs). In this
regard, the amendments would remove an assumption that there would be a
maximum of two recipient clearing house for situations. In the
situation where the transferee clearing house does not clear a relevant
contract, and development of such clearing is not possible within an
acceptable timeframe, the amendments would remove a statement
suggesting that transfer would be delayed until clearing is available.
ICE Clear Europe does not believe such a delay would be feasible, and
accordingly the relevant positions in that contract would be
terminated. References to the novation agreement to be used in a
transfer would be amended to address transfer of related collateral in
addition to positions. Similarly, the amended Plan would, in the
scenario of a transfer to another clearing house, address the testing
of collateral migration (in addition to position migration) and provide
for the transfer of all relevant collateral (not only margin) to the
recipient clearing house, in addition to the clearing members
positions. Additional changes would update references to Clearing House
position management and other systems such as FEC and ECS (or
successors to such systems). The anticipated timeline for the transfer
of F&O markets clearing to recipient clearing houses would be revised
to be approximately six months (instead of no more than six months), in
recognition of the difficulty of predicting a maximum timeline. In
addition, the Clearing House has acknowledged that the timeline may be
affected because the diverse product groups currently cleared, may need
to involve more than one recipient clearing house in a transfer.
Amendments would make other minor non-substantive changes.
In the context of termination, the amendments would clarify certain
arrangements around notice to Clearing Members, consistent with the
Rules. The amendments would contemplate a Withdrawal Date to be
designated by the Clearing House pursuant to the Rules, rather than
assuming a period of 5 months, to allow for more flexibility for the
timeframe to reflect the particular circumstances of the termination.
(In ICE Clear Europe's view, the time period will not necessarily be
exactly five months, and that time period would better be described as
an approximation.) The proposed amendments would also adopt a revised
maturity profile for different product groups based on expiration date.
The maturity profile may be materially different between product
groups; thus it is appropriate for the Plan to consider the profile
based on the relevant group. The amendments would revise percentage of
the total open contracts expected to wind down naturally via an
expiration date within three months from 35% to 30% based on the
revised maturity profile. The changes would also clarify that new
trades would be accepted until the Withdrawal Date, with the
expectation that they serve to reduce risk and reduce open interest.
The amendments would provide additional clarifications about the
process of terminating an open position at a Withdrawal Date, in
accordance with the Rules. The amendments will also clarify the process
by which clearing members can close out open positions themselves prior
to the Withdrawal Date, as well as clarify that
[[Page 60003]]
all related margin (and not merely initial margin) would be returned at
contract termination, consistent with the Rules and Procedures. With
respect to the timeline for termination, the amendments would clarify
that the anticipated timeline is approximately (rather than exactly)
five months, reflecting the fact that the actual timeline may depend on
the particular positions of Clearing Members at the time. As discussed
above, the amendments would note that a differing maturity profile for
contracts may require a different approach or timeline by product group
(even though the termination process is common across all maturities
and product groups). Conforming and clarifying changes would be made to
the lists of assumptions and activities and the timeline in this
section.
Similar clarifications would be made to sections of the Plan
relating to transfer and/or termination of the CDS clearing business.
These would include references to consideration of jurisdictional
issues, recognition that in the case of transfer an alternative CCP may
have different membership requirements, recognition of the regulatory
and new product approval processes that may apply, clarification that
termination through re-bilateralisation may (rather than will) occur if
an alternative CCP is not available in an acceptable timeframe,
clarification that in certain transfer scenarios backloading of
terminated contracts once a new CCP is ready could (rather than would)
be done, and clarification that all relevant collateral (and not just
margin) will be transferred to recipient clearing house, among others.
The amendments would also revise the expected timeline for a transfer
to be approximately 6 months, rather than no more than six months, in
recognition of the difficulty of predicting a maximum timeline. The
amendments would note that the timeline is likely to be affected by
whether the open positions can be transferred to a single clearing
house, or whether a transfer to multiple clearing houses would be
required. In several places, the timeline for termination, wind-down or
re-bilateralisation of CDS clearing would similarly be described as
approximately five months rather than exactly five months. In the
discussion of continuation of CDS clearing services until the time of
termination, a clarification would be made that such clearing would
continue on the basis of reducing open interest (as opposed to reducing
volume).
In the discussion of terminating service arrangements, the notice
timeline would be revised to be approximately (rather than exactly) 6
months and also to state that appropriate notice would be given for
termination of employee contracts. The amendments would note that the
list of relevant services and contracts is a summary, and that the
Clearing House maintains a more complete inventory of this service
arrangements that should be referenced in wind-down planning. As
amended, the Plan would also note that IT services and licenses are
largely provided by other ICE Clear Europe affiliates and that IT
services provided by third parties generally are not expected to have a
material impact to wind-down planning. The changes to the summary table
would consolidate the treatment of several clearing services agreements
with different affiliated ICE markets into a single category for
consistency. The amendments would also clarify that exit provisions
regarding the use of buildings and building facilities provided by
affiliates are not part of intra-group agreements, but would rather be
managed by the relevant boards and management of the entities involved.
Other changes would include the addition of the Clearing and Settlement
Services Agreement with Intercontinental Exchange Holdings, the
replacement of Dutch National Bank with European Central Bank to
reflect the use of the latter as a concentration bank, the change in
reference to the ``relevant ICE Exchanges,'' and the change in the
Clearing and Settlement Services Agreements notice time period from 12
months to 24 months. Certain non-substantive drafting clarifications
would also be made.
ICE Clear Europe has also proposed to update the description of the
Clearing House's current liquidity profile in order to be consistent
with (and explicitly reference) the Clearing House's current Liquidity
and Investment Management Policy. (Relevant sections of the Liquidity
and Investment Policy define the objective and key strategy for the
investment of Cash. As per the policy, ICE Clear Europe aims to only
invest in cash or highly liquid financial instruments with minimal
market and credit risk and which are capable of being liquidated
quickly and with minimal losses). Among other changes, the amendments
would clarify that collateral held as cash from Clearing Members should
be immediately accessible or available at short notice, with the vast
majority of funds being invested in high-quality short-term instruments
in accordance. (Specific references to a maximum maturity and weighted
average life would be removed). Outright purchases should be limited to
high quality and liquid government debt that can be liquidated on short
notice in the secondary market. Amendments would also address
availability of non-cash assets for liquidity needs, consistent with
liquidity policies, and reference the Clearing House's liquidity stress
testing.
Consistent with the changes discussed above, the overall
conclusions for the Plan would be revised to reflect that the
lengthiest time anticipated for wind-down would be approximately
(rather than exactly) six months. Additionally, the proposed amendments
would note that this estimate could be affected by various external
factors, including the potential need to transfer positions to multiple
clearing venues given the Clearing House's product scope, which could
be more complicated (and take more time) than a transfer to a single
venue. The impact of regulatory approvals and processes could also
affect the timeline.
The discussion of governance and oversight in the Plan would be
replaced with a new Document Governance and Exception Handling section
that is consistent with other Clearing House policies recently adopted
or modified.\5\ This section would describe the responsibilities for
the document owners in accordance with ICEU's governance processes, as
well as breach management, exception handling, and document governance.
---------------------------------------------------------------------------
\5\ See, e.g., The Counterparty Credit Risk Policy and
Procedures as described in Exchange Act Release No. 34-97169, SR
ICEEU-2023-004 (March 20, 2023) 88 FR 17886 (March 24, 2023); the
Investment Management Procedures as described in Exchange Act
Release No. 34-97528, SR ICEEU-2023-009 (May 19, 2023) 88 FR 33949
(May 25, 2023; the Futures and Options Default Management Policy as
described in Exchange Act Release No. 34-97383, SR ICEEU-2023-012
(Apr. 26, 2023) 88 FR 27539 (May 2, 2023).
---------------------------------------------------------------------------
The proposed changes also make a number of non-substantive changes
to the Plan throughout such as formatting and typographical and similar
corrections.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the Plan
are consistent with the requirements of Section 17A of the Securities
Exchange Act of 1934 \6\ (``Act'') 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
[[Page 60004]]
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 Plan are intended to update and
clarify the Plan, including to address more clearly the operation of
the planning committee. The amendments would also update expected
procedures relating to transfer or termination of the F&O and CDS
clearing businesses, respectively, in order to provide appropriate
flexibility and better take into account certain characteristics of the
products cleared. The amendments will help the Clearing House
facilitate an orderly transition or shut-down of a clearing business in
the event it is unable to continue operations. 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.\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).
---------------------------------------------------------------------------
Rule 17Ad-22(e)(2) provides that ``[e]ach covered clearing agency
shall establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable [. . .] provide for
governance arrangements that are clear and transparent'' \9\ and
``[s]pecify clear and direct lines of responsibility.'' \10\ The
amendments to the Plan would more clearly state the responsibilities of
the Clearing House's planning committee, management and the Board in
relation to the Plan. In ICE Clear Europe's view, the amendments are
therefore consistent with the requirements of Rule 17Ad-22(e)(2).\11\
---------------------------------------------------------------------------
\9\ 17 CFR 240.17 Ad-22(e)(2)(i).
\10\ 17 CFR 240.17 Ad-22(e)(2)(v).
\11\ 17 CFR 240.17 Ad-22(e)(2).
---------------------------------------------------------------------------
The proposed amendments are also consistent with Rule 17Ad-
22(e)(17)(i), which provides that ``[e]ach covered clearing agency
shall establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable [. . .] manage the
covered clearing agency's operational risks by identifying the
plausible sources of operational risk, both internal and external, and
mitigating their impact through the use of appropriate systems,
policies, procedures, and controls.'' \12\ As discussed above, the
amendments update and clarify various aspects of the wind-down Plan to
enhance the planning process and take into account the characteristics
of the cleared products in planning procedures for transfer or
termination. These amendments are intended to help mitigate the impact
to market participants of a potential wind-down. In ICE Clear Europe's
view, the amendments are therefore consistent with the requirements of
Rule 17Ad-22(e)(17)(i).).\13\
---------------------------------------------------------------------------
\12\ 17 CFR 240.17 Ad-22(e)(17)(i).
\13\ 17 CFR 240.17 Ad-22(e)(17)(i).
---------------------------------------------------------------------------
(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 are being adopted to update and clarify the Plan, all of
which relate to the Clearing House's processes for the wind down of the
Clearing House in the unlikely event that the recovery plan does not
succeed in restoring normal operations after significant loss events or
the Clearing House decides for business reasons it no longer wishes to
operate. ICE Clear Europe does not believe the amendments would affect
in the ordinary course of business the costs of clearing, the ability
of market participants to access clearing, or the market for clearing
services generally. Therefore, ICE Clear Europe does not believe the
proposed rule change imposes any burden on competition that is
inappropriate 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 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
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, 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-2023-011 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-2023-011. 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
a.m. and 3 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
[[Page 60005]]
publication submitted material that is obscene or subject to copyright
protection. All submissions should refer to File Number SR-ICEEU-2023-
011 and should be submitted on or before September 20, 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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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-18676 Filed 8-29-23; 8:45 am]
BILLING CODE 8011-01-P
