Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Notices 60001 

84 12 U.S.C. 5465(e)(1)(G). 

85 12 U.S.C. 5465(e)(1)(H). 

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. 

3Amendment 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. 

4Capitalized 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. 

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 

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 

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 


lotter on DSK11XQN23PROD with NOTICES1
60002 Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Notices 

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 

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 


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Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Notices 60003 

5See, 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). 

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 

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 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 


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60004 Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Notices 

8 15 U.S.C. 78q–1(b)(3)(F). 

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). 

12 17 CFR 240.17 Ad–22(e)(17)(i). 

13 17 CFR 240.17 Ad–22(e)(17)(i). 

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, 

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 

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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Federal Register / Vol. 88, No. 167 / Wednesday, August 30, 2023 / Notices 60005 

14 17 CFR 200.30–3(a)(12). 

1 15 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). 5See Rule 5.7.03. 

6See 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). 7See 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. 8Each 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. 

9See proposed Rule 5.7(f)(4). 

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. 

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 (http://www.cboe.com/ 

AboutCBOE/

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 

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 12- 

leg 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 


lotter on DSK11XQN23PROD with NOTICES1