Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 62413 

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 Securities Exchange Act Release No. 93097 

(September 21, 2021), 86 FR 53358 (September 27, 

2021) (Order Approving File No. SR–FINRA–2021– 

015). Other exchanges, including Cboe, 

subsequently filed copycat rule filings to align their 

continuing education rules with those of FINRA. 

See Securities Exchange Act Release No. 94513 

(March 24, 2022), 87 FR 18446 (March 30, 2022), 

(SR–CBOE–2022–012). 

6The FSAWP is a waiver program for eligible 

individuals who have left a member firm to work 

for a foreign or domestic financial services affiliate 

of a member firm. FINRA stopped accepting new 

participants for the FSAWP beginning on March 15, 

2022; however, individuals who were already 

participating in the FSAWP prior to that date had 

the option of continuing in the FSAWP. 

7See Rule 3.33.01. If such individuals elect to 

participate, they would be required to complete 

their initial annual content by the end of 2022 (i.e., 

by the end of the calendar year in which the 

proposed rule change is implemented). In addition, 

if such individuals elect to participate, their initial 

participation period would be adjusted based on the 

date that their registration was terminated. 

8See Securities Exchange Act Release No. 97184 

(March 22, 2023), 88 FR 18359 (March 28, 2023) 

(SR–FINRA–2023–005). 

9To reflect the availability of the Second 

Enrollment Period, FINRA Rule 1240.01 clarifies 

that for all Look-Back Individuals who elect to 

participate in the MQP, their participation period 

would also be for a period of five years following 

the termination of their registration categories, as 

with other MQP participants. 

This Notice will be published in the 

Federal Register. 

Erica A. Barker, 

Secretary. 

[FR Doc. 2023–19527 Filed 9–8–23; 8:45 am] 

BILLING CODE 7710–FW–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98288; File No. SR–CBOE– 

2023–042] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Rules 

Relating to the Continuing Education 

for Registered Persons as Provided 

Under Exchange Rule 3.33.01 

September 5, 2023. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on August 

23, 2023, Cboe Exchange, Inc. (the 

‘‘Exchange,’’ ‘‘Cboe Options,’’ or 

‘‘Cboe’’) 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 as a ‘‘non-controversial’’ 

proposed rule change 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. proposes to 

amend its rules relating to the 

Continuing Education for Registered 

Persons as provided under Exchange 

Rule 3.33.01. 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 the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The proposed rule change amends 

Exchange Rule 3.33.01 to provide 

eligible individuals another opportunity 

to elect to participate in the Maintaining 

Qualifications Program (‘‘MQP’’). 

In 2021, the Financial Industry 

Regulatory Authority, Inc. (‘‘FINRA’’) 

implemented rule changes, which 

amended FINRA’s Continuing 

Education (‘‘CE’’) Program requirements 

to, among other things, provide eligible 

individuals who terminate any of their 

representative or principal registration 

categories the option of maintaining 

their qualification for any terminated 

registration categories by completing 

annual continuing education through a 

new program, the MQP.5 Under FINRA 

Rule 1240.01, the MQP designated a 

look-back provision that, subject to 

specified conditions, extended the 

option to participate in the MQP to 

individuals who: (1) were registered as 

a representative or principal within two 

years immediately prior to March 15, 

2022 (the implementation date of the 

MQP); and (2) individuals who were 

participating in the Financial Services 

Affiliate Waiver Program (‘‘FSAWP’’) 6

under FINRA Rule 1210.09 (Waiver of 

Examinations for Individuals Working 

for a Financial Services Industry 

Affiliate of a Member) immediately 

prior to March 15, 2022 (collectively, 

‘‘Look-Back Individuals’’). 

In response to FINRA’s rule changes 

and to facilitate compliance with the 

Exchange’s CE Program requirements by 

members of multiple exchanges, the 

Exchange implemented rule changes to 

align with FINRA’s CE Program and 

adopted Exchange Rules 3.33(c), 

3.33.01, and 3.33.02. Such rules, among 

other things, provide eligible 

individuals who terminate any of their 

representative or principal registrations 

the option of maintaining their 

qualification for any of the terminated 

registrations by completing continuing 

education through the MQP. Further, 

Exchange Rule 3.33.01 includes a lookback provision that, subject to specified 

conditions, extends the option for 

maintaining qualifications following a 

registration category termination to (i) 

individuals who have been registered as 

a representative or principal within two 

years immediately preceding March 15, 

2022, and (ii) individuals who have 

been participants of the FSAWP 

immediately preceding March 15, 2022 

implementation (i.e., Look-Back 

Individuals). With respect to the 

FSAWP, the Exchange made the lookback provision available to individuals 

who are participants in the Exchange’s 

FSAWP or the FSA waiver programs of 

Exchange’s affiliate, Cboe C2 Exchange, 

Inc. (‘‘C2 Options’’), and/or FINRA 

immediately preceding March 15, 2022. 

Look-Back Individuals who elected to 

participate in the new MQP were 

required to make such election by 

March 15, 2022 (the implementation 

date of the MQP).7

FINRA recently submitted a proposal 

related to its CE Program (the ‘‘FINRA 

Rule Change’’).8 The proposal set forth 

changes to FINRA Rule 1240.01, which 

provide Look-Back Individuals a second 

opportunity to elect to participate in the 

MQP (the ‘‘Second Enrollment 

Period’’).9 In addition, the proposed rule 


ddrumheller on DSK120RN23PROD with NOTICES1
62414 Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 

10Look-Back Individuals were able to notify 

FINRA of their election to participate in the MQP 

through their FinPro accounts. 

11According to FINRA, this may have been a 

result of the timing of FINRA’s announcements 

relating to the MQP, which coincided with the 

holiday season and the transition to the New Year. 

Further, given that Look-Back Individuals were out 

of the industry at the time of these announcements, 

it was unlikely that they would have learned of the 

MQP, or the First Enrollment Period, through 

informal communication channels. 

12The current rule text also provides that if LookBack Individuals elect to participate in the MQP, 

the Exchange shall adjust their participation period 

by deducting from that period the amount of time 

that has lapsed between the date that such persons 

terminated their registration categories and March 

15, 2022. To reflect the availability of the Second 

Enrollment Period, the proposed rule change 

clarifies that for all Look-Back Individuals who 

elect to participate in the MQP, their participation 

period would also be for a period of five years 

following the termination of their registration 

categories, as with other MQP participants. See 

supra note 9. 

13Look-Back Individuals who elect to enroll in 

the MQP during the Second Enrollment Period 

would also need to pay the annual program fee of 

$100 for both 2022 and 2023 at the time of their 

enrollment. 

14 15 U.S.C. 78f(b). 

15 15 U.S.C. 78f(b)(5). 

16 Id. 

change requires that Look-Back 

Individuals who elect to participate in 

the MQP during the Second Enrollment 

Period complete any prescribed 2022 

and 2023 MQP content by March 31, 

2024. In the FINRA Rule Change, FINRA 

noted that in Regulatory Notice 21–41 

(November 17, 2021), it announced that 

Look-Back Individuals who wanted to 

take part in the MQP were required to 

make their election between January 31, 

2022, and March 15, 2022 (the ‘‘First 

Enrollment Period’’). In addition to the 

announcement in Regulatory Notice 21– 

41, FINRA notified the Look-Back 

Individuals about the MQP and the First 

Enrollment Period via two separate 

mailings of postcards to their home 

addresses and communications through 

their FINRA Financial Professional 

Gateway (‘‘FinPro’’) accounts.10

In the FINRA Rule Change, FINRA 

further noted that shortly after the First 

Enrollment Period had ended, a number 

of Look-Back Individuals contacted 

FINRA and indicated that they had only 

recently become aware of the MQP. 

FINRA noted that it also received 

anecdotal information that a number of 

these individuals may not have learned 

of the MQP, or the First Enrollment 

Period, in a timely manner, or at all, due 

to communication and operational 

issues.11 In addition, the original sixweek enrollment period may not have 

provided Look-Back Individuals with 

sufficient time to evaluate whether they 

should participate in the MQP. For 

these reasons, FINRA recently amended 

its rules to provide Look-Back 

Individuals a second opportunity to 

elect to participate in the MQP. 

For similar reasons and to facilitate 

compliance with the Exchange’s CE 

Program requirements by members of 

multiple exchanges, the Exchange is 

also proposing to amend its rules (i.e., 

Exchange Rule 3.33.01) to provide LookBack Individuals with a Second 

Enrollment Period. The Exchange also 

understands that other exchanges have 

or will propose similar amendments 

based on FINRA’s rule changes. The 

Second Enrollment Period will be 

between the effective date of this filing, 

and December 31, 2023.12 In addition, 

the proposed rule change requires that 

Look-Back Individuals who elect to 

participate in the MQP during the 

Second Enrollment Period complete any 

prescribed 2022 and 2023 MQP content 

by March 31, 2024.13

The Exchange proposes to revise 

Exchange Rule 3.33.01 to state that 

persons eligible under Exchange Rule 

3.33.01 shall make their election to 

participate in the continuing education 

program under Exchange Rule 3.33(c) by 

either (1) March 15, 2022; or (2) between 

the effective date of this filing, and 

December 31, 2023. 

The Exchange also proposes to amend 

Exchange Rule 3.33.01 to state that 

eligible persons who elect to participate 

in the continuing education program 

between the effective date of this filing, 

and December 31, 2023, must complete 

any prescribed 2022 and 2023 

continuing education content by March 

31, 2024. 

Finally, the Exchange proposes to 

amend Exchange Rule 3.33.01 to remove 

reference to waivers relied upon under 

Exchange Rule 3.30.09 or C2 Options 

Chapter 3, Section B, as there were no 

participants in the Exchange’s FSAWP 

or the FSA waiver programs of 

Exchange’s affiliate, C2 Options, 

immediately preceding March 15, 2022. 

The Exchange proposes to amend 

Exchange Rule 3.33.01 to clarify that 

anyone participating in the FINRA 

FSAWP immediately preceding March 

15, 2022 would still be eligible to 

participate in the MQP, provided 

conditions in Exchange Rule 3.33(c) are 

met. 

2. Statutory Basis 

The Exchange believes the proposed 

rule change is consistent with the 

Securities Exchange Act of 1934 (the 

‘‘Act’’) and the rules and regulations 

thereunder applicable to the Exchange 

and, in particular, the requirements of 

section 6(b) of the Act.14 Specifically, 

the Exchange believes the proposed rule 

change is consistent with the section 

6(b)(5) 15 requirements that the rules of 

an exchange be designed to prevent 

fraudulent and manipulative acts and 

practices, to promote just and equitable 

principles of trade, to foster cooperation 

and coordination with persons engaged 

in regulating, clearing, settling, 

processing information with respect to, 

and facilitating transactions in 

securities, to remove impediments to 

and perfect the mechanism of a free and 

open market and a national market 

system, and, in general, to protect 

investors and the public interest. 

Additionally, the Exchange believes the 

proposed rule change is consistent with 

the section 6(b)(5) 16 requirement that 

the rules of an exchange not be designed 

to permit unfair discrimination between 

customers, issuers, brokers, or dealers. 

The Exchange believes that providing 

Look-Back Individuals a second 

opportunity to elect to participate in the 

MQP is warranted because participation 

in the MQP would reduce unnecessary 

impediments to requalification for these 

individuals without diminishing 

investor protection. In addition, the 

proposed rule change is consistent with 

other goals, such as the promotion of 

diversity and inclusion in the securities 

industry by attracting and retaining a 

broader and diverse group of 

professionals. The MQP also allows the 

industry to retain expertise from skilled 

individuals, providing investors with 

the advantage of greater experience 

among the individuals working in the 

industry. The Exchange believes that 

providing Look-Back Individuals a 

second opportunity to elect to 

participate in the MQP will further 

these goals and objectives. 

Further, the Exchange believes the 

proposed amendments reduce the 

possibility of a significant regulatory 

gap between Exchange and FINRA rules, 

providing more uniform standards 

across the securities industry. The 

Exchange believes that the proposed 

rule change will bring consistency and 

uniformity with FINRA’s recently 

amended CE Program, which will, in 

turn, assist TPHs and their associated 

persons in complying with these rules 

and improve regulatory efficiency. The 

proposed rule changes make ministerial 

changes to the Exchange’s continuing 

education rules to align them with the 

continuing education rules of FINRA 

and other exchanges as discussed above, 

in order to prevent unnecessary 

regulatory burdens and to promote 

efficient administration of the rules. 

Finally, the Exchange believes the 

proposed amendments to remove 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 62415 

17 15 U.S.C. 78s(b)(3)(A)(iii). 

18 17 CFR 240.19b–4(f)(6). 

19 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

20 17 CFR 240.19b–4(f)(6). 

21 17 CFR 240.19b–4(f)(6)(iii). 

22For purposes only of waiving the 30-day 

operative delay, the Commission has considered the 

proposed rule change’s impact on efficiency, 

competition, and capital formation. See 15 U.S.C. 

78c(f). 

23 15 U.S.C. 78s(b)(2)(B). 

reference to waivers relied upon under 

Exchange Rule 3.30.09 or C2 Options 

Chapter 3, Section B will add clarity to 

the Cboe Options Rules and remove 

redundant language, as there were no 

participants in the Exchange’s FSAWP 

or the FSA waiver programs of 

Exchange’s affiliate, C2 Options, 

immediately preceding March 15, 2022. 

Further, the Exchange believes that the 

amendments to clarify that anyone 

participating in the FINRA FSAWP 

immediately preceding March 15, 2022 

would still be eligible to participate in 

the MQP, provided conditions in 

Exchange Rule 3.33(c) are met, ensures 

consistency and uniformity with 

FINRA’s recently amended CE Program, 

which, as noted above, will in turn 

assist TPHs and their associated persons 

in complying with these rules and 

improve regulatory efficiency. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. The 

Exchange believes that the proposed 

rule changes which are, in all material 

respects, based upon and substantially 

similar to, recent rule changes adopted 

by FINRA, will reduce the regulatory 

burden placed on market participants 

engaged in trading activities across 

different markets. The Exchange 

believes that the harmonization of the 

CE Program requirements across the 

various markets will reduce burdens on 

competition by removing impediments 

to participation in the national market 

system and promoting competition 

among participants across the multiple 

national securities exchanges. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Cboe has filed the proposed rule 

change pursuant to section 19(b)(3)(A) 

of the Act 17 and Rule 19b–4(f)(6) 

thereunder.18 Because the proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative prior to 30 days from the date 

on which it was filed, or such shorter 

time as the Commission may designate, 

if consistent with the protection of 

investors and the public interest, the 

proposed rule change has become 

effective pursuant to section 19(b)(3)(A) 

of the Act and Rule 19b–4(f)(6)(iii) 

thereunder.19

A proposed rule change filed under 

Rule 19b–4(f)(6) 20 normally does not 

become operative prior to 30 days after 

the date of the filing. However, pursuant 

to Rule 19b–4(f)(6)(iii),21 the 

Commission may designate a shorter 

time if such action is consistent with the 

protection of investors and the public 

interest. The Exchange has asked the 

Commission to waive the 30-day 

operative delay so that the proposal may 

become operative immediately upon 

filing. Cboe has indicated that the 

immediate operation of the proposed 

rule change is appropriate because it 

would allow the Exchange to implement 

the proposed changes to its continuing 

education rules without delay, thereby 

eliminating the possibility of a 

significant regulatory gap between the 

FINRA rules and the Exchange rules, 

providing more uniform standards 

across the securities industry, and 

helping to avoid confusion for Exchange 

members that are also FINRA members. 

Cboe also noted that FINRA plans to 

conduct additional public outreach 

efforts to promote awareness of the MQP 

and the availability of the Second 

Enrollment Period among Look-Back 

Individuals. Therefore, Cboe indicated 

that the immediate operation of the 

proposed rule change is also appropriate 

because it would help to further notify 

Look-Back Individuals of their options 

and provide additional time for them to 

consider whether they wish to 

participate in the MQP before the 

December 31, 2023 deadline. For these 

reasons, the Commission believes that 

waiver of the 30-day operative delay for 

this proposal is consistent with the 

protection of investors and the public 

interest. Accordingly, the Commission 

hereby waives the 30-day operative 

delay and designates the proposal 

operative upon filing.22

At any time within 60 days of the 

filing of such proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

under section 19(b)(2)(B) 23 of the Act to 

determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CBOE–2023–042 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–CBOE–2023–042. 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 (http://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 filing 


ddrumheller on DSK120RN23PROD with NOTICES1
62416 Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 

24 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). 

4 17 CFR 240.19b–4(f)(2). 

5Self-Regulatory Organizations; LCH SA; Order 

Approving Proposed Rule Change Relating to 

Triparty Collateral Mechanism; Securities Exchange 

Act Release No. 34–98009 (July 27, 2023); 88 FR 

50923 (August 2, 2023) (File No. SR–LCH SA– 

2023–004). 

6All capitalized terms not defined herein shall 

have the same definition as in the Rule Book or 

Procedures, as applicable. 

7https://my.euroclear.com/dam/EB/ 

Tariff%20information/MA0007_General_Fees.pdf 

(See Collateral management fees, p. 11). 

8See Self-Regulatory Organizations; LCH SA; 

Order Approving Proposed Rule Change Relating to 

Triparty Collateral Mechanism; Securities Exchange 

Act Release No. 34–98009 (July 27, 2023); 88 FR 

50923 (August 2, 2023) (File No. SR–LCH SA– 

2023–004). 

9 15 U.S.C. 78q–1. 

10 15 U.S.C. 78q–1(b)(D)(3). 

11https://my.euroclear.com/dam/EB/ 

Tariff%20information/MA0007_General_Fees.pdf 

(See Collateral management fees, p. 11). 

also will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. 

All submissions should refer to File 

Number SR–CBOE–2023–042 and 

should be submitted on or before 

October 2, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–19471 Filed 9–8–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98284; File No. SR–LCH 

SA–2023–006] 

Self-Regulatory Organizations; LCH 

SA; Notice of Filing and Immediate 

Effectiveness of Proposed Rule 

Change Relating to Triparty Collateral 

Mechanism Fee Changes 

September 5, 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 

23, 2023, Banque Centrale de 

Compensation, which conducts 

business under the name LCH SA (‘‘LCH 

SA’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

the proposed rule change (‘‘Proposed 

Rule Change’’) described in Items I, II 

and III below, which Items have been 

primarily prepared by LCH SA. LCH SA 

filed the proposal pursuant to section 

19(b)(3)(A) of the Act,3 and Rule 19b– 

4(f)(2) 4 thereunder, so that the proposal 

was 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 

LCH SA is proposing to amend the 

current fee grid (‘‘Fee Grid’’) for LCH SA 

CDSClear (the ‘‘Proposed Rule Change’’) 

as part of the extension of the Triparty 

Collateral mechanism to CDSClear 

service filed with the Commission.5 The 

text of the Proposed Rule Change has 

been annexed hereto as Exhibit 5 [sic]. 

No amendments to the LCH SA CDS 

Clearing Rule Book (‘‘Rule Book’’) or the 

CDS Clearing Procedures (‘‘Procedures’’) 

are required to effect these changes.6

The text of the Proposed Rule Change 

has been annexed as Exhibit 5 [sic]. 

The implementation of the Proposed 

Rule Change will be contingent on LCH 

SA’s receipt of all necessary regulatory 

approvals, including the approval by the 

Commission of the Proposed Rule 

Change described herein. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, 

LCH SA 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. LCH 

SA 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 

1. Purpose 

The purpose of the Proposed Rule 

Change is for LCH SA to extend to 

CDSClear the Fee Grid currently 

applicable to the Triparty Collateral 

mechanism for the Non-U.S. Business. 

As part of the process to further 

enhance its triparty collateral solution 

with Euroclear Bank and Euroclear 

France 7 and to align the triparty 

collateral service offering across LCH 

SA clearing services, to include 

CDSClear, LCH SA is proposing to adopt 

the Fee Grid upon filing with the SEC, 

following the Commission’s order 

approving the proposed rule change 

relating to the Triparty Collateral 

mechanism.8

LCH SA is proposing to adopt for 

CDSClear the following triparty fees 

currently applicable to the LCH SA 

Non-U.S. Business: 

—For Government Securities from 

Austria, Belgium, Finland, France, 

Germany, Italy, Netherlands, Portugal 

and Spain, the applicable fee is 

9.5bps; 

—For Supranational entities and 

Agencies, the applicable fee is 

11.5bps 

LCH SA will reflect this change by 

amending the footnote applicable to 

triparty collateral fees in the Fee Grid to 

state the triparty collateral fees are also 

applicable to CDSClear. Specifically, the 

amended footnote will state: 

‘‘** Effective 1 April 2023 for 

EquityClear, CommodityClear, 

RepoClear and ÖGCPlus (House & 

Clients activities). Effective 23 August 

2023 for CDSClear.’’ The applicable Fee 

Grid has been annexed as Exhibit 5 [sic]. 

No amendments to the Rule Book or 

Procedures are required for these 

changes to become effective. 

2. Statutory Basis 

LCH SA believes that the Proposed 

Rule Change is consistent with the 

requirements of section 17A of the Act 9

and the regulations thereunder. section 

17A(b)(3)(D) of the Act 10 requires that 

the rules of a clearing agency provide 

for the equitable allocation of reasonable 

dues, fees, and other charges among 

Clearing Members and market 

participants by ensuring that Clearing 

Members and clients pay reasonable 

fees and dues for the services provided 

by LCH SA, within the meaning of 

section 17A(b)(3)(D) of the Act. 

The wider offering of eligible 

collateral through the triparty collateral 

solution with the relevant proposed 

applicable fees will provide greater 

collateral optimization opportunities for 

LCH SA Clearing Members. In addition, 

the spread between the triparty 

collateral solution and the bilateral Full 

Transfer of Title deposit option will be 

1.5bps and is consistent with the 

Euroclear Triparty service paid by 

Clearing Members.11 LCH SA does not 

anticipate the Proposed Rule Change to 

result in any material increase in 

Clearing Members fees and expenses or 

result in any material changes to 

CDSClear revenue. 

For these reasons, LCH SA believes 

that the Proposed Rule Change is 


ddrumheller on DSK120RN23PROD with NOTICES1