Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ICC's Fee Schedules, 16592-16594 [2024-04794]
Download as PDF
<![CDATA[
16592
Federal Register / Vol. 89, No. 46 / Thursday, March 7, 2024 / Notices
POSTAL REGULATORY COMMISSION
[Docket No. CP2023–103]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: March 11,
2024.
SUMMARY:
Submit comments
electronically via the Commission’s
Filing Online system at https://
www.prc.gov. Those who cannot submit
comments electronically should contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section by
telephone for advice on filing
alternatives.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
khammond on DSKJM1Z7X2PROD with NOTICES
1. Docket No(s).: CP2023–103; Filing
Title: USPS Notice of Amendment to
Priority Mail and Parcel Select Contract
8, Filed Under Seal; Filing Acceptance
Date: March 1, 2024; Filing Authority:
39 CFR 3035.105; Public Representative:
Arif Hafiz; Comments Due: March 11,
2024.
This Notice will be published in the
Federal Register.
[FR Doc. 2024–04874 Filed 3–6–24; 8:45 am]
I. Introduction
BILLING CODE 7710–FW–P
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the Market Dominant or
the Competitive product list, or the
modification of an existing product
currently appearing on the Market
Dominant or the Competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
16:13 Mar 06, 2024
II. Docketed Proceeding(s)
Eric A. Barker,
Secretary.
I. Introduction
II. Docketed Proceeding(s)
VerDate Sep<11>2014
with the requirements of 39 CFR
3011.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern Market Dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3030, and 39
CFR part 3040, subpart B. For request(s)
that the Postal Service states concern
Competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3035, and
39 CFR part 3040, subpart B. Comment
deadline(s) for each request appear in
section II.
Jkt 262001
SECURITIES AND EXCHANGE
COMMISSION
Sunshine Act Meetings
FEDERAL REGISTER CITATION OF PREVIOUS
ANNOUNCEMENT: 89 FR 15622, March 7,
2024.
PREVIOUSLY ANNOUNCED TIME AND DATE OF
THE MEETING: Thursday, March 7, 2024
at 2 p.m.
The Closed
Meeting scheduled for Thursday, March
7, 2024 at 2 p.m., has been cancelled.
CONTACT PERSON FOR MORE INFORMATION:
For further information; please contact
Vanessa A. Countryman from the Office
of the Secretary at (202) 551–5400.
CHANGES IN THE MEETING:
(Authority: 5 U.S.C. 552b)
Dated: March 5, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024–05044 Filed 3–5–24; 4:15 pm]
BILLING CODE 8011–01–P
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
PO 00000
Frm 00072
Fmt 4703
Sfmt 4703
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–99652; File No. SR–ICC–
2024–002)
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Relating to ICC’s Fee
Schedules
March 1, 2024
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 February
26, 2024, ICE Clear Credit LLC (‘‘ICE
Clear Credit’’ or ‘‘ICC’’) filed with the
Securities and Exchange Commission
the proposed rule change as described
in Items I, II and III below, which Items
have been prepared primarily by ICC.
ICC filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the
Act 3 and Rule 19b–4(f)(2) thereunder,4
such that the proposed rule change was
immediately effective upon filing with
the Commission. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The principal purpose of the
proposed rule change is to modify ICC’s
fee schedules to implement reduced fees
for credit default index swaptions
(‘‘Index Options’’) until further notice.
These revisions do not require any
changes to the ICC 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, ICC
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. ICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
(a) Purpose
The proposed changes are intended to
modify ICE Clear Credit’s fee schedules
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 15 U.S.C. 78s(b)(3)(A).
4 17 CFR 240.19b–4(f)(2).
2 17
E:\FR\FM\07MRN1.SGM
07MRN1
Federal Register / Vol. 89, No. 46 / Thursday, March 7, 2024 / Notices
khammond on DSKJM1Z7X2PROD with NOTICES
to implement reduced fees for Index
Options 5 until further notice. ICE Clear
Credit maintains a Clearing Participant
(‘‘CP’’) fee schedule 6 and client fee
schedule 7 (collectively, the ‘‘fee
schedules’’) that are publicly available
on its website, which ICE Clear Credit
proposes to update. Clearing fees are
due by CPs in accordance with the
transaction category (i.e., proprietary CP
transactions or transactions on behalf of
the CP’s clients) product, amount and
currency set out in the fee schedules
and subject to any incentive program
described in the fee schedules. The
proposed changes to the fee schedules
are set forth in Exhibit 5A and Exhibit
5B and described in detail as follows.
ICE Clear Credit proposes to make such
changes effective March 1, 2024,
following the completion of the
applicable regulatory review process
(the ‘‘Effective Date’’). ICE Clear Credit
proposes to implement a 50% fee
discount and to maintain the reduced
fees for the clearing of Index Options
until further action is taken by ICE Clear
Credit and the Board to remove the
reduced fees and return the Index
Option fees to their regular rates, subject
to the completion of all necessary
regulatory processes. If and when the
Board takes such action to return the
Index Option fees to their regular rates,
ICE Clear Credit will provide the
marketplace 30 calendar days advance
notice of the fee change on the fee
schedules posted on ICE Clear Credit’s
website, which will indicate that the
Index Option fees will return to their
regular rate and the effective date of
such change, subject to the completion
of all necessary regulatory processes.
The amended CP fee schedule would
reduce Index Option fees to $1.5/
million or Ö1.5/million until further
notice. Under the current CP fee
schedule, Index Option fees are $3/
million or Ö3/million, subject to an
incentive program that provides a tiered
discount schedule based on U.S. Dollar
5 Pursuant to an Index Option, one party (the
‘‘Swaption Buyer’’) has the right (but not the
obligation) to cause the other party (the ‘‘Swaption
Seller’’) to enter into an index credit default swap
transaction at a pre-determined strike price on a
specified expiration date on specified terms. In the
case of Index Options that may be cleared by ICE
Clear Credit, the underlying index credit default
swap is limited to certain CDX and iTraxx index
credit default swaps that are accepted for clearing
by ICE Clear Credit, and which would be
automatically cleared by ICE Clear Credit upon
exercise of the Index Option by the Swaption Buyer
in accordance with its terms.
6 CP fee details available at: https://www.ice.com/
publicdocs/clear_credit/ICE_Clear_Credit_Fees_
Clearing_Participant.pdf.
7 Client fee details available at: https://
www.ice.com/publicdocs/clear_credit/ICE_Clear_
Credit_Fees.pdf. As specified, all fees are charged
directly to a client’s CP.
VerDate Sep<11>2014
16:13 Mar 06, 2024
Jkt 262001
equivalent, non-discounted Index
Option fees billed since the start of the
year.8 ICE Clear Credit also discounted
CP Index Option fees for: (i) a portion
of 2021, which expired at the end of
calendar year 2021; 9 (ii) a portion of
2022, which expired at the end of
calendar year 2022; 10 and (iii) a portion
of 2023, which expired at the end of
calendar year 2023.11 Under the
proposed changes, in addition to
updating the fee table, ICE Clear Credit
would include a footnote to indicate
that the listed fees of $1.5/million or
Ö1.5/million reflect a discount from ICE
Clear Credit’s regular CP Index Options
fees of $3/million or Ö3/million and that
such discounted rates are applicable
from the Effective Date until ICE Clear
Credit provides 30 calendar days
advance notice on the fee schedule
posted on ICE Clear Credit’s website
indicating that the CP Index Option fees
will return to their regular rate and the
effective date of such change, subject to
the completion of all necessary
regulatory processes.
The amended client fee schedule
would also reduce Index Option fees to
$2/million or Ö2/million until further
notice.12 Under the current client fee
schedule, Index Option fees are $4/
million or Ö4/million. ICE Clear Credit
also discounted client Index Option fees
for: (i) a portion of 2021, which expired
at the end of calendar year 2021; 13 a
portion of 2022, which expired at the
end of calendar year 2022; 14 and a
portion of 2023, which expired at the
end of calendar year 2023.15 Under the
proposed changes, in addition to
updating the fee table, ICE Clear Credit
would include a footnote to indicate
that the listed fees of $2/million or Ö2/
million reflect a discount from ICE Clear
Credit’s regular client Index Option fees
of $4/million or Ö4/million and that
8 SEC Release No. 34–90524 (November 27, 2020)
(notice), 85 FR 78157 (December 3, 2020) (SR–ICC–
2020–013).
9 SEC Release No. 34–91922 (May 18, 2021)
(notice), 86 FR 27938 (May 24, 2021) (SR–ICC–
2021–014).
10 SEC Release No. 34–94330 (February 28, 2022)
(notice), (87 FR 12508 (March 4, 2022) (SR–ICC–
2022–001).
11 SEC Release No. 34–96707 (January 19, 2023)
(notice), (88 FR 4868 (January 25, 2023) (SR–ICC–
2023–001).
12 The client fee schedule applies to transactions
cleared on behalf of CP’s clients, and the specified
fees are directly charged to, and collected from, the
applicable client’s CP.
13 SEC Release No. 34–91922 (May 18, 2021)
(notice), 86 FR 27938 (May 24, 2021) (SR–ICC–
2021–014).
14 SEC Release No. 34–94330 (February 28, 2022)
(notice), (87 FR 12508 (March 4, 2022) (SR–ICC–
2022–001).
15 SEC Release No. 34–96707 (January 19, 2023)
(notice), 88 FR 4868 (January 25, 2023) (SR–ICC–
2023–001).
PO 00000
Frm 00073
Fmt 4703
Sfmt 4703
16593
such discounted rates are applicable
from the Effective Date until ICE Clear
Credit provides 30 calendar days
advance notice on the fee schedule
posted on ICE Clear Credit’s website
indicating that the client Index Option
fees will return to their regular rate and
the effective date of such change,
subject to the completion of all
necessary regulatory processes.
(b) Statutory Basis
ICE Clear Credit believes that the
proposed rule change is consistent with
the requirements of the Act, including
Section 17A of the Act 16 and the
regulations thereunder applicable to it.
More specifically, the proposed rule
change establishes or changes a member
due, fee or other charge imposed by ICE
Clear Credit under Section
19(b)(3)(A)(ii) of the Act 17 and Rule
19b–4(f)(2) 18 thereunder. ICE Clear
Credit believes the proposed rule
change is consistent with the
requirements of the Act and the rules
and regulations thereunder applicable to
ICE Clear Credit, in particular, to
Section 17A(b)(3)(D),19 which requires
that the rules of the clearing agency
provide for the equitable allocation of
reasonable dues, fees, and other charges
among its participants.
ICE Clear Credit believes that the
proposed discounts in the fee schedules
have been set at an appropriate level. In
determining the appropriate discount
level, ICE Clear Credit considered
factors such as volume, revenue, and
market participation in the clearing
service, including based on different fee
levels. ICE Clear Credit also considered
costs and expenses in offering clearing
of Index Options, taking into account
the investments that ICE Clear Credit
has made in clearing such products and
the level of investment and
development needed for this clearing
service at this time. In ICE Clear Credit’s
view, the fees are reasonable as the
discounts correspond with anticipated
volumes, costs and expenses, and
revenues, and they consider current and
past market activity as well as
anticipated market activity with respect
to clearing Index Options at ICE Clear
Credit.20 Furthermore, the proposed
discounts are in line with past Index
Option incentive programs that ICE
Clear Credit offered, which similarly
reduced Index Option fees without any
further action required by CPs or the
16 15
U.S.C. 78q–1.
U.S.C. 78s(b)(3)(A)(ii).
18 17 CFR 240.19b–4(f)(2).
19 15 U.S.C. 78q–1(b)(3)(D).
20 Supporting detail and additional data,
including clearing statistics for Index Options is
included in confidential Exhibit 3.
17 15
E:\FR\FM\07MRN1.SGM
07MRN1
16594
Federal Register / Vol. 89, No. 46 / Thursday, March 7, 2024 / Notices
CPs clients. Under the proposed
changes, the same discounted rate (i.e.,
50%) from ICE Clear Credit’s regular
Index Option fees would apply to both
CP proprietary transactions and
transactions cleared on behalf of the
CP’s clients. These reduced fees are
designed to incentivize the clearing of
Index Options by CPs and the CPs
clients to grow this clearing service.
Moreover, the proposed fee changes
will apply equally to all market
participants clearing Index Options. The
reduced fees for Index Options will be
effective until further notice and shall
apply to all CPs. ICE Clear Credit’s fee
schedules will continue to be
transparent and to apply equally to
market participants clearing indexes,
single names, and Index Options at ICE
Clear Credit. Therefore, the proposed
rule change provides for the equitable
allocation of reasonable dues, fees and
other charges among participants,
within the meaning of Section
17A(b)(3)(D) of the Act.21 ICE Clear
Credit therefore believes that the
proposed rule change is consistent with
the requirements of Section 17A of the
Act 22 and the regulations thereunder
applicable to it and is appropriately
filed pursuant to Section 19(b)(3)(A) of
the Act 23 and paragraph (f)(2) of Rule
19b–4 24 thereunder.
khammond on DSKJM1Z7X2PROD with NOTICES
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Credit does not believe the
proposed rule change would have any
impact, or impose any burden, on
competition. As discussed above, the
proposed changes modify ICE Clear
Credit’s fee schedules to reduce fees for
Index Options and will apply uniformly
across all market participants. The
implementation of such changes does
not preclude other market participants
from offering such instruments for
clearing or offering incentive programs.
ICE Clear Credit does not believe these
amendments would affect the costs of
clearing or the ability of market
participants to access clearing.
Therefore, ICE Clear Credit does not
believe the proposed rule change
imposes any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
21 15
U.S.C. 78q–1(b)(3)(D).
U.S.C. 78q–1.
23 15 U.S.C. 78s(b)(3)(A).
24 17 CFR 240.19b–4(f)(2).
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICE Clear Credit
will notify the Commission of any
written comments received by ICE Clear
Credit.
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 25 and paragraph (f) of Rule
19b–4 26 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.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.27
J. Matthew DeLesDernier,
Deputy Secretary.
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–
ICC–2024–002 on the subject line.
SECURITIES AND EXCHANGE
COMMISSION
Paper Comments
Send paper comments in triplicate to
Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to file
number SR–ICC–2024–002. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
22 15
VerDate Sep<11>2014
16:13 Mar 06, 2024
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 Credit and on ICE Clear Credit’s
website at https://www.ice.com/clearcredit/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–ICC–2024–002 and
should be submitted on or before March
28, 2024.
[FR Doc. 2024–04794 Filed 3–6–24; 8:45 am]
BILLING CODE 8011–01–P
[Release No. 34–99658; File No. SR–
NYSEAMER–2024–13]
Self-Regulatory Organizations; NYSE
American LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend the NYSE
American Options Fee Schedule
March 1, 2024.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on February
22, 2024, NYSE American LLC (‘‘NYSE
American’’ or the ‘‘Exchange’’) 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 self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
27 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
25 15
26 17
Jkt 262001
PO 00000
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(2).
Frm 00074
Fmt 4703
Sfmt 4703
E:\FR\FM\07MRN1.SGM
07MRN1
]]>Agencies
[Federal Register Volume 89, Number 46 (Thursday, March 7, 2024)]
[Notices]
[Pages 16592-16594]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-04794]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-99652; File No. SR-ICC-2024-002)
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
ICC's Fee Schedules
March 1, 2024
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 February 26, 2024, ICE Clear Credit LLC (``ICE Clear Credit'' or
``ICC'') filed with the Securities and Exchange Commission the proposed
rule change as described in Items I, II and III below, which Items have
been prepared primarily by ICC. ICC filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed rule change is to modify
ICC's fee schedules to implement reduced fees for credit default index
swaptions (``Index Options'') until further notice. These revisions do
not require any changes to the ICC 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, ICC 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. ICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
The proposed changes are intended to modify ICE Clear Credit's fee
schedules
[[Page 16593]]
to implement reduced fees for Index Options \5\ until further notice.
ICE Clear Credit maintains a Clearing Participant (``CP'') fee schedule
\6\ and client fee schedule \7\ (collectively, the ``fee schedules'')
that are publicly available on its website, which ICE Clear Credit
proposes to update. Clearing fees are due by CPs in accordance with the
transaction category (i.e., proprietary CP transactions or transactions
on behalf of the CP's clients) product, amount and currency set out in
the fee schedules and subject to any incentive program described in the
fee schedules. The proposed changes to the fee schedules are set forth
in Exhibit 5A and Exhibit 5B and described in detail as follows. ICE
Clear Credit proposes to make such changes effective March 1, 2024,
following the completion of the applicable regulatory review process
(the ``Effective Date''). ICE Clear Credit proposes to implement a 50%
fee discount and to maintain the reduced fees for the clearing of Index
Options until further action is taken by ICE Clear Credit and the Board
to remove the reduced fees and return the Index Option fees to their
regular rates, subject to the completion of all necessary regulatory
processes. If and when the Board takes such action to return the Index
Option fees to their regular rates, ICE Clear Credit will provide the
marketplace 30 calendar days advance notice of the fee change on the
fee schedules posted on ICE Clear Credit's website, which will indicate
that the Index Option fees will return to their regular rate and the
effective date of such change, subject to the completion of all
necessary regulatory processes.
---------------------------------------------------------------------------
\5\ Pursuant to an Index Option, one party (the ``Swaption
Buyer'') has the right (but not the obligation) to cause the other
party (the ``Swaption Seller'') to enter into an index credit
default swap transaction at a pre-determined strike price on a
specified expiration date on specified terms. In the case of Index
Options that may be cleared by ICE Clear Credit, the underlying
index credit default swap is limited to certain CDX and iTraxx index
credit default swaps that are accepted for clearing by ICE Clear
Credit, and which would be automatically cleared by ICE Clear Credit
upon exercise of the Index Option by the Swaption Buyer in
accordance with its terms.
\6\ CP fee details available at: https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Fees_Clearing_Participant.pdf.
\7\ Client fee details available at: https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Fees.pdf. As specified, all
fees are charged directly to a client's CP.
---------------------------------------------------------------------------
The amended CP fee schedule would reduce Index Option fees to $1.5/
million or [euro]1.5/million until further notice. Under the current CP
fee schedule, Index Option fees are $3/million or [euro]3/million,
subject to an incentive program that provides a tiered discount
schedule based on U.S. Dollar equivalent, non-discounted Index Option
fees billed since the start of the year.\8\ ICE Clear Credit also
discounted CP Index Option fees for: (i) a portion of 2021, which
expired at the end of calendar year 2021; \9\ (ii) a portion of 2022,
which expired at the end of calendar year 2022; \10\ and (iii) a
portion of 2023, which expired at the end of calendar year 2023.\11\
Under the proposed changes, in addition to updating the fee table, ICE
Clear Credit would include a footnote to indicate that the listed fees
of $1.5/million or [euro]1.5/million reflect a discount from ICE Clear
Credit's regular CP Index Options fees of $3/million or [euro]3/million
and that such discounted rates are applicable from the Effective Date
until ICE Clear Credit provides 30 calendar days advance notice on the
fee schedule posted on ICE Clear Credit's website indicating that the
CP Index Option fees will return to their regular rate and the
effective date of such change, subject to the completion of all
necessary regulatory processes.
---------------------------------------------------------------------------
\8\ SEC Release No. 34-90524 (November 27, 2020) (notice), 85 FR
78157 (December 3, 2020) (SR-ICC-2020-013).
\9\ SEC Release No. 34-91922 (May 18, 2021) (notice), 86 FR
27938 (May 24, 2021) (SR-ICC-2021-014).
\10\ SEC Release No. 34-94330 (February 28, 2022) (notice), (87
FR 12508 (March 4, 2022) (SR-ICC-2022-001).
\11\ SEC Release No. 34-96707 (January 19, 2023) (notice), (88
FR 4868 (January 25, 2023) (SR-ICC-2023-001).
---------------------------------------------------------------------------
The amended client fee schedule would also reduce Index Option fees
to $2/million or [euro]2/million until further notice.\12\ Under the
current client fee schedule, Index Option fees are $4/million or
[euro]4/million. ICE Clear Credit also discounted client Index Option
fees for: (i) a portion of 2021, which expired at the end of calendar
year 2021; \13\ a portion of 2022, which expired at the end of calendar
year 2022; \14\ and a portion of 2023, which expired at the end of
calendar year 2023.\15\ Under the proposed changes, in addition to
updating the fee table, ICE Clear Credit would include a footnote to
indicate that the listed fees of $2/million or [euro]2/million reflect
a discount from ICE Clear Credit's regular client Index Option fees of
$4/million or [euro]4/million and that such discounted rates are
applicable from the Effective Date until ICE Clear Credit provides 30
calendar days advance notice on the fee schedule posted on ICE Clear
Credit's website indicating that the client Index Option fees will
return to their regular rate and the effective date of such change,
subject to the completion of all necessary regulatory processes.
---------------------------------------------------------------------------
\12\ The client fee schedule applies to transactions cleared on
behalf of CP's clients, and the specified fees are directly charged
to, and collected from, the applicable client's CP.
\13\ SEC Release No. 34-91922 (May 18, 2021) (notice), 86 FR
27938 (May 24, 2021) (SR-ICC-2021-014).
\14\ SEC Release No. 34-94330 (February 28, 2022) (notice), (87
FR 12508 (March 4, 2022) (SR-ICC-2022-001).
\15\ SEC Release No. 34-96707 (January 19, 2023) (notice), 88 FR
4868 (January 25, 2023) (SR-ICC-2023-001).
---------------------------------------------------------------------------
(b) Statutory Basis
ICE Clear Credit believes that the proposed rule change is
consistent with the requirements of the Act, including Section 17A of
the Act \16\ and the regulations thereunder applicable to it. More
specifically, the proposed rule change establishes or changes a member
due, fee or other charge imposed by ICE Clear Credit under Section
19(b)(3)(A)(ii) of the Act \17\ and Rule 19b-4(f)(2) \18\ thereunder.
ICE Clear Credit believes the proposed rule change is consistent with
the requirements of the Act and the rules and regulations thereunder
applicable to ICE Clear Credit, in particular, to Section
17A(b)(3)(D),\19\ which requires that the rules of the clearing agency
provide for the equitable allocation of reasonable dues, fees, and
other charges among its participants.
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78q-1.
\17\ 15 U.S.C. 78s(b)(3)(A)(ii).
\18\ 17 CFR 240.19b-4(f)(2).
\19\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------
ICE Clear Credit believes that the proposed discounts in the fee
schedules have been set at an appropriate level. In determining the
appropriate discount level, ICE Clear Credit considered factors such as
volume, revenue, and market participation in the clearing service,
including based on different fee levels. ICE Clear Credit also
considered costs and expenses in offering clearing of Index Options,
taking into account the investments that ICE Clear Credit has made in
clearing such products and the level of investment and development
needed for this clearing service at this time. In ICE Clear Credit's
view, the fees are reasonable as the discounts correspond with
anticipated volumes, costs and expenses, and revenues, and they
consider current and past market activity as well as anticipated market
activity with respect to clearing Index Options at ICE Clear
Credit.\20\ Furthermore, the proposed discounts are in line with past
Index Option incentive programs that ICE Clear Credit offered, which
similarly reduced Index Option fees without any further action required
by CPs or the
[[Page 16594]]
CPs clients. Under the proposed changes, the same discounted rate
(i.e., 50%) from ICE Clear Credit's regular Index Option fees would
apply to both CP proprietary transactions and transactions cleared on
behalf of the CP's clients. These reduced fees are designed to
incentivize the clearing of Index Options by CPs and the CPs clients to
grow this clearing service.
---------------------------------------------------------------------------
\20\ Supporting detail and additional data, including clearing
statistics for Index Options is included in confidential Exhibit 3.
---------------------------------------------------------------------------
Moreover, the proposed fee changes will apply equally to all market
participants clearing Index Options. The reduced fees for Index Options
will be effective until further notice and shall apply to all CPs. ICE
Clear Credit's fee schedules will continue to be transparent and to
apply equally to market participants clearing indexes, single names,
and Index Options at ICE Clear Credit. Therefore, the proposed rule
change provides for the equitable allocation of reasonable dues, fees
and other charges among participants, within the meaning of Section
17A(b)(3)(D) of the Act.\21\ ICE Clear Credit therefore believes that
the proposed rule change is consistent with the requirements of Section
17A of the Act \22\ and the regulations thereunder applicable to it and
is appropriately filed pursuant to Section 19(b)(3)(A) of the Act \23\
and paragraph (f)(2) of Rule 19b-4 \24\ thereunder.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78q-1(b)(3)(D).
\22\ 15 U.S.C. 78q-1.
\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
ICE Clear Credit does not believe the proposed rule change would
have any impact, or impose any burden, on competition. As discussed
above, the proposed changes modify ICE Clear Credit's fee schedules to
reduce fees for Index Options and will apply uniformly across all
market participants. The implementation of such changes does not
preclude other market participants from offering such instruments for
clearing or offering incentive programs. ICE Clear Credit does not
believe these amendments would affect the costs of clearing or the
ability of market participants to access clearing. Therefore, ICE Clear
Credit 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 rule change have not been
solicited or received. ICE Clear Credit will notify the Commission of
any written comments received by ICE Clear Credit.
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 \25\ and paragraph (f) of Rule 19b-4 \26\
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.
---------------------------------------------------------------------------
\25\ 15 U.S.C. 78s(b)(3)(A).
\26\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-ICC-2024-002 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to file number SR-ICC-2024-002. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549, on official business days between the hours of 10
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 Credit and
on ICE Clear Credit's website at https://www.ice.com/clear-credit/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-ICC-2024-002 and should
be submitted on or before March 28, 2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
---------------------------------------------------------------------------
\27\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024-04794 Filed 3-6-24; 8:45 am]
BILLING CODE 8011-01-P
