78428 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

46 15 U.S.C. 78q–1(b)(3)(F). 

47 Id. 

48 Id. 

49 17 CFR 240.17Ad–22(e)(5). 

50 Id. 

51 17 CFR 240.17Ad–22(e)(23)(i) and (ii). 

52 Id. 

53 Id. 

54 15 U.S.C. 78q–1. 

55 15 U.S.C. 78s(b)(2). 

56 In approving the Proposed Rule Change, the 

Commission considered its impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 

57 17 CFR 200.30–3(a)(12). 

1See Letter from Hester Serafini, President, ICE 

Clear Europe, to Vanessa Countryman, Secretary, 

Commission, dated Aug. 10, 2023. 

2 15 U.S.C. 78q–1. 

3See Notice of Withdrawal Request, infra at note 

4, 88 FR at 63176. 

4Securities Exchange Act Release No. 98339 

(Sept. 8, 2023), 88 FR 63173 (Sept. 14, 2023) (File 

No. 4–809) (‘‘Notice of Withdrawal Request’’). 

Accordingly, the Proposed Rule Change 

should help NSCC to continue 

providing prompt and accurate 

clearance and settlement of securities 

transactions, consistent with section 

17A(b)(3)(F) of the Act.46

Moreover, because the Proposed Rule 

Change would continue to ensure that 

NSCC collects sufficient margin from 

members, it should also help minimize 

the likelihood that NSCC would have to 

access the Clearing Fund, thereby 

limiting non-defaulting members’ 

exposure to mutualized losses. By 

helping to limit the exposure of NSCC’s 

non-defaulting members to mutualized 

losses, the Proposed Rule Change 

should help NSCC assure the 

safeguarding of securities and funds 

which are in its custody or control, 

consistent with section 17A(b)(3)(F) of 

the Act.47

Finally, the proposed clarifying 

changes should help to ensure that 

NSCC’s Rules are clear to members. 

When members better understand their 

rights and obligations regarding the 

Rules, members are more likely to act in 

accordance with the Rules, which 

should promote the prompt and 

accurate clearance and settlement of 

securities transactions. As such, the 

proposed clarifying changes are 

consistent with section 17A(b)(3)(F) of 

the Act.48

B. Consistency With Rule 17Ad–22(e)(5) 

Rule 17Ad–22(e)(5) under the Act 49

requires, in part, a covered clearing 

agency to establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed to 

set and enforce appropriately 

conservative haircuts and concentration 

limits if the covered clearing agency 

requires collateral to manage its or its 

participants’ credit exposure. As 

described in Part II supra, the proposed 

changes to move the collateral haircuts 

and concentration limits from NSCC’s 

Rules should provide NSCC with more 

flexibility to respond to changing 

market conditions because adjustments 

to the haircuts and concentration limits 

would no longer require a rule change. 

By being able to make appropriate and 

timely adjustments to the haircuts and 

concentration limits, NSCC would have 

the flexibility to respond to changing 

market conditions more promptly. 

Specifically, NSCC would have the 

ability to promptly set and enforce 

conservative collateral haircuts and 

concentration limits that are reflective 

of the current market conditions. In this 

way, the proposed changes to move the 

collateral haircuts and concentration 

limits from the Rules to the website 

should help NSCC set and enforce 

appropriately conservative collateral 

haircuts and concentration limits, 

consistent with the requirements of Rule 

17Ad–22(e)(5) under the Act.50

C. Consistency With Rule 17Ad– 

22(e)(23) 

Rule 17Ad–22(e)(23)(i) and (ii) 51

under the Act requires each covered 

clearing agency to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to, 

among other things, publicly disclose all 

relevant rules and material procedures; 

and provide sufficient information to 

enable participants to identify and 

evaluate the risks, fees, and other 

material costs they incur by 

participating in the covered clearing 

agency. Based on its review of the 

record, and for the reasons described 

below, the Commission finds that the 

proposed changes, taken together, are 

consistent with the requirements of Rule 

17Ad–22(e)(23)(i) and (ii).52

By adopting rules that require NSCC 

to provide prior notice through public 

disclosures on its website relating to 

information on collateral haircuts and 

concentration limits, NSCC’s Rules 

would support the communication of 

information that its members may use to 

identify and evaluate the haircuts and 

concentration limits resulting from 

NSCC’s processes. As such, the 

Proposed Rule Change is consistent 

with publicly disclosing all relevant 

rules and material procedures; and 

providing sufficient information to 

enable participants to identify and 

evaluate the risks, fees, and other 

material costs incurred with 

participation in the covered clearing 

agency. The Commission finds, 

therefore, that the Proposed Rule 

Change is consistent with the 

requirements of Rule 17Ad–22(e)(23)(i) 

and (ii) under the Act.53

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Change is consistent with the 

requirements of the Act and in 

particular with the requirements of 

section 17A of the Act 54 and the rules 

and regulations promulgated 

thereunder. 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act 55 that 

proposed rule change SR–NSCC–2023– 

009, be, and hereby is, approved.56

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.57

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25104 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98902; File No. 4–809] 

Order Granting ICE Clear Europe 

Limited’s Request To Withdraw From 

Registration as a Clearing Agency 

November 9, 2023. 

I. Introduction 

On August 10, 2023, ICE Clear Europe 

Limited (‘‘ICE Clear Europe’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a written 

request (the ‘‘Written Request’’) 1 to 

withdraw from registration as a clearing 

agency under section 17A of the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’).2 ICE Clear Europe also 

requested the withdrawal of an 

exemption related to the clearance and 

settlement of certain futures and options 

contracts.3 The Commission published 

notice of ICE Clear Europe’s request in 

the Federal Register on September 14, 

2023, to solicit comments from 

interested persons.4 The Commission 

received no comments regarding the 

request. For the reasons discussed 

below, the Commission is granting ICE 

Clear Europe’s requests and requiring 

ICE Clear Europe to retain and produce 

upon request certain records. 

II. Discussion and Commission 

Findings 

ICE Clear Europe is registered with 

the Commission as a clearing agency 

under section 17A of the Exchange Act 

solely for the purpose of clearing 


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Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78429 

5See 15 U.S.C. 78q–1. Pursuant to section 17A(l) 

of the Exchange Act, ICE Clear Europe became 

‘‘deemed registered’’ as a clearing agency as part of 

its CDS Business. See Amendment to Rule Filing 

Requirements for Dually-Registered Clearing 

Agencies, Securities Exchange Act Release No. 

69284 (Apr. 3, 2013), 78 FR 21046, 21047 & n.20 

(Apr. 9, 2013) (File No. S7–29–11). ‘‘Clearing 

agency’’ is defined in section 3(a)(23)(A) of the 

Exchange Act as, in relevant part, ‘‘any person who 

acts as an intermediary in making payments or 

deliveries or both in connection with transactions 

in securities or who provides facilities for 

comparison of data respecting the terms of 

settlement of securities transactions, to reduce the 

number of settlements of securities transactions, or 

for the allocation of securities settlement 

responsibilities.’’ 15 U.S.C. 78c(a)(23)(A). 

6See UK Financial Services and Markets Act of 

2000 c. 8, available at https://

www.legislation.gov.uk/ukpga/2000/8/contents. 

7See Regulation (EU) No 648/2012 of the 

European Parliament and of the Council of 4 July 

2012 on OTC derivatives, central counterparties and 

trade repositories. 

8See 7 U.S.C. 7a–1. 

9See Federal Act on Financial Market 

Infrastructures and Market Conduct in Securities 

and Derivatives Trading of 19 June 2015. 

10See Abu Dhabi Global Market Financial 

Services and Markets Regulations 2015, available at 

https://en.adgm.thomsonreuters.com/rulebook/ 

financial-services-and-markets-regulations-2015-0. 

11See Cessation of Clearing of CDS Contracts, 

Circular C22/076 (June 30, 2022), available at 

https://www.theice.com/publicdocs/clear_europe/ 

circulars/C22076.pdf (setting Mar. 31, 2023 as the 

Withdrawal Date); Cessation of Clearing of CDS 

Contracts: Postponement of Withdrawal Date, 

Circular C22/109 (Sept. 26, 2022), available at 

https://www.theice.com/publicdocs/clear_europe/ 

circulars/C22109.pdf (postponing Withdrawal Date 

to Oct. 27, 2023 in light of suggestions from CDS 

market participants). 

12See Notice of Withdrawal Request, 88 FR at 

63175. 

13See Notice of Withdrawal Request, 88 FR at 

63175–76. See also 15 U.S.C. 78q–1(l). ICE Clear 

Europe further represents that if an affiliate of ICE 

Clear Europe seeks to clear SBS or another 

securities product, such affiliate would do so after 

registering with the Commission pursuant to the 

process set forth in Commission Rule 17Ab2–1. See 

Notice of Withdrawal Request, 88 FR at 63176. See 

also 17 CFR 240.17Ab2–1. 

14See Notice of Withdrawal Request, 88 FR at 

63176; see also 15 U.S.C. 78s(a)(3). 

15See Notice of Withdrawal Request, 88 FR at 

63176. 

16 15 U.S.C. 78q–1(b) and 17 CFR 240.17Ab2–1. 

17See Order Pursuant to section 17A of the 

Securities Exchange Act of 1934 Granting 

Exemption from the Clearing Agency Registration 

Requirement Under section 17A(b) of the Exchange 

Act for ICE Clear Europe Limited in Connection 

with its Proposal to Clear Contracts Traded on the 

LIFFE Administration and Management Market, 

Exchange Act Release No. 69872 (June 27, 2013), 78 

FR 40220 (July 3, 2013). 

18See Notice of Withdrawal Request, 88 FR at 

63176 n.36. 

19See id.; ICE Clear Europe Rule 207(g). 

20See Notice of Withdrawal Request, 88 FR at 

63176. 

21See Letter from Hester Serafini, President, ICE 

Clear Europe, to Vanessa Countryman, Secretary, 

Securities and Exchange Commission, dated Nov. 7, 

2023 (‘‘Confirmation Letter’’). 

22See Confirmation Letter at 2. 

23See Confirmation Letter at 2; 15 U.S.C. 78q– 

1(l). 

24See Confirmation Letter at 2. 

security-based swaps (‘‘SBS’’).5 ICE 

Clear Europe also is authorized as a 

recognized clearing house under United 

Kingdom (‘‘UK’’) law; 6 recognized as a 

third-country central counterparty 

under the European Market 

Infrastructure Regulation; 7 registered as 

a derivatives clearing organization 

under the Commodity Exchange Act; 8

recognized as a foreign central 

counterparty under the Swiss Financial 

Market Infrastructure Act; 9 and 

recognized as a remote clearing house in 

the Abu Dhabi Global Market.10 ICE 

Clear Europe provides clearing and 

settlement services for two primary 

categories of derivative contracts: (1) 

exchange-traded futures and options 

contracts traded on the ICE Futures 

Europe, ICE Futures U.S., ICE Endex 

and ICE Futures Abu Dhabi markets (the 

‘‘F&O Business’’); and (2) over-thecounter index and single-name credit 

default swap (‘‘CDS’’) contracts (the 

‘‘CDS Business’’). 

In June 2022, by circular published on 

its website, ICE Clear Europe publicly 

announced its intention to terminate its 

CDS Business in 2023, including its 

clearing of SBS.11 In the Written 

Request subsequently filed with the 

Commission, ICE Clear Europe 

represented that it would no longer 

accept CDS contracts for clearing after 

close of business on October 26, 2023, 

and would subsequently terminate and 

settle any open CDS positions.12 ICE 

Clear Europe represented further that it 

would settle all final amounts owed to 

or by each Clearing Member by 

November 7, 2023, and that it will not 

seek to engage in securities clearing 

activity relating to security-based swaps 

in reliance on any deemed registered 

status pursuant to section 17A(l) of the 

Exchange Act.13 ICE Clear Europe 

therefore submitted its request for 

withdrawal of its clearing agency 

registration pursuant to section 19(a)(3) 

of the Exchange Act, which states that 

a self-regulatory organization may 

‘‘withdraw from registration by filing a 

written notice of withdrawal with the 

Commission,’’ upon such terms and 

conditions as the Commission, by rule, 

deems necessary or appropriate in the 

public interest or for the protection of 

investors.14

ICE Clear Europe also requested the 

withdrawal of an exemption it was 

previously granted related to the 

clearance and settlement of certain 

futures and options contracts.15 In 2013, 

the Commission exempted ICE Clear 

Europe from clearing agency registration 

under section 17A(b) of the Exchange 

Act and Rule 17Ab2–1 16 thereunder in 

connection with ICE Clear Europe’s 

clearing of certain futures and options 

contracts on underlying U.S. equity 

securities (the ‘‘Securities Product 

Exemption’’).17 ICE Clear Europe 

represents that it does not currently 

clear any equity options or single stock 

futures on U.S. securities,18 and that its 

rules are designed to prohibit ICE Clear 

Europe from clearing futures or options 

on underlying U.S. securities for U.S. 

persons.19 ICE Clear Europe believes 

that the Securities Product Exemption 

will not be necessary for ICE Clear 

Europe’s continued operation of the 

F&O Business, and therefore has 

requested that the Commission 

terminate the exemption.20

On November 7, 2023, ICE Clear 

Europe confirmed to the Commission 

that it stopped accepting CDS contracts 

as of close-of-business on October 26, 

2023, closed-out all CDS positions on 

October 27, 2023, returned collateral 

related to CDS positions, and completed 

final settlement of amounts owed to or 

from members related to ICE Clear 

Europe’s CDS Business on November 7, 

2023.21 It also re-confirmed the 

representations in the Written Request 

regarding record-keeping, recordproduction, the settlement of existing 

claims, and the lack of potential for 

future claims against it resulting from its 

CDS Business.22

Based upon the representations made 

by ICE Clear Europe to the Commission, 

the Commission has determined that 

granting ICE Clear Europe’s requests to 

(i) withdraw its clearing agency 

registration and (ii) terminate the 

Securities Product Exemption are 

appropriate. ICE Clear Europe 

represents it is no longer performing 

actions that require registration as a 

clearing agency under section 17A of 

the Exchange Act and will not seek to 

engage in securities clearing activity in 

reliance on any ‘‘deemed registered’’ 

status pursuant to section 17A(l) of the 

Exchange Act.23 In addition, ICE Clear 

Europe has provided specific assurances 

regarding record-keeping, recordproduction, and both the settlement of 

existing, and lack of potential for future, 

claims against it resulting from its CDS 

Business. Specifically, ICE Clear Europe 

confirmed that all known claims against 

it in connection with the CDS Business 

were settled by November 7, 2023, and 

that ICE Clear Europe is not aware of 

any potential future claims against it in 

connection with the CDS Business.24

ICE Clear Europe also confirmed that, 

for a period of five years following its 

withdrawal from registration as a 

clearing agency, it will retain and 

maintain all documents, books, and 


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78430 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 

25See Confirmation Letter at 2. 

26 15 U.S.C. 78s(a)(3). 

27 15 U.S.C. 78q–1(b) 

28 17 CFR 240.17a–1(a), (b), and (c). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4See Exchange Rule 1.5(p). 

5Types of market participants that obtain 

connectivity services from the Exchange but are not 

Members include service bureaus and extranets. 

Service bureaus offer technology-based services to 

other companies for a fee, including order entry 

services to Members, and thus, may access 

application sessions on behalf of one or more 

Members. Extranets offer physical connectivity 

services to Members and non-Members. 

records in accordance with Rules 17a– 

1(a) and (b) under the Exchange Act and 

will furnish such information upon 

request in accordance Rule 17a–1(c) 

under the Exchange Act.25 As noted 

above, no comments were received in 

response to the published notice of ICE 

Clear Europe’s Written Request to 

withdraw from registration as a clearing 

agency, which included ICE Clear 

Europe’s representations regarding 

maintenance of records and record 

production, as well as ICE Clear 

Europe’s representations regarding any 

potential for claims associated with its 

clearing agency registration. As further 

noted above, ICE Clear Europe 

reconfirmed, in writing, the 

representations made in its Written 

Request. 

III. Conclusion 

It is therefore ordered, pursuant to 

section 19(a)(3) of the Exchange Act,26

that: 

(1) Effective as of the date of this 

Order, ICE Clear Europe’s registration as 

a clearing agency under section 17A of 

the Exchange Act is withdrawn; 

(2) Effective as of the date of this 

Order, the exemption under section 

17A(b) of the Exchange Act in 

connection with ICE Clear Europe’s 

proposal to clear contracts traded on the 

LIFFE Administration and Management 

Market is terminated; 27 and 

(3) For a period of five years from the 

effective date of withdrawal of 

registration as a clearing agency, ICE 

Clear Europe will maintain all the 

records required to be maintained 

pursuant to Rule 17A–1(a) and (b) 

which are in ICE Clear Europe’s 

possession and will produce such 

records upon the request of any 

representative of the Commission, in 

accordance with Commission Rule 17a– 

1(c).28

By the Commission. 

Sherry Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25218 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98888; File No. SR–MEMX– 

2023–29] 

Self-Regulatory Organizations; MEMX 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend the Exchange’s Fee 

Schedule To Adopt Connectivity and 

Application Session Fees for MEMX 

Options 

November 8, 2023. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on October 

24, 2023, MEMX LLC (‘‘MEMX’’ or the 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (the 

‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing with the 

Commission a proposed rule change to 

amend the Exchange’s fee schedule 

applicable to Members 4 and nonMembers (the ‘‘Fee Schedule’’) pursuant 

to Exchange Rules 15.1(a) and (c) to (i) 

apply the Exchange’s current 

Connectivity and Application Session 

fees to MEMX Options Users, (ii) 

implement a waiver of Connectivity and 

Application Session fees solely related 

to participation on MEMX Options until 

January 1, 2024, and (iii) make an 

organizational change to its existing fee 

schedule for the Exchange’s pre-existing 

equities market (‘‘MEMX Equities’’), in 

order to create a separate fee schedule 

for Connectivity Fees (for both MEMX 

Equities and MEMX Options). The 

Exchange proposes to implement the 

changes to the Fee Schedule pursuant to 

this proposal immediately. The text of 

the proposed rule change is provided in 

Exhibit 5. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

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 

Background 

The Exchange is filing a proposal to 

amend the Fee Schedule to: (i) apply the 

Exchange’s current Connectivity and 

Application Session fees to MEMX 

Options Users, (ii) implement a waiver 

of Connectivity and Application Session 

fees solely related to participation on 

MEMX Options until January 1, 2024, 

and (iii) make an organizational change 

to its existing fee schedule for the 

Exchange’s pre-existing equities market 

(‘‘MEMX Equities’’), in order to create a 

separate fee schedule for Connectivity 

Fees (for both MEMX Equities and 

MEMX Options). The Exchange believes 

that these changes will provide greater 

transparency to Members about how the 

Exchange assesses fees, as well as 

allowing Members to more easily 

validate their bills on a monthly basis. 

The Exchange notes that none of these 

changes amend any existing fee 

applicable to MEMX Equities. The 

Exchange is proposing to implement the 

proposal immediately. 

As set forth below, the Exchange 

believes that its proposal provides a 

great deal of transparency regarding the 

cost of providing connectivity services 

and anticipated revenue and that the 

proposal is consistent with the Act and 

associated guidance. 

(i) Fees for Connectivity to MEMX 

Options 

As noted above, the Exchange is 

proposing to apply the current fees it 

charges to Members and non-Members 5

for physical connectivity to the 

Exchange and for application sessions 

(otherwise known as ‘‘logical ports’’) 

that a Member utilizes in connection 

with their participation on the Exchange 

(together with physical connectivity, 


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