Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 86399 

45 17 CFR 200.30–3(a)(12), (59). 

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

2 17 CFR 240.19b–4. 

3Self-Regulatory Organizations; ICE Clear Credit 

LLC; Notice of Filing of Proposed Rule Change 

Relating to the Clearance of Additional Credit 

Default Swap Contracts; Exchange Act Release No. 

98833 (Nov. 1, 2023), 88 FR 76870 (Nov. 7, 2023) 

(File No. SR–ICC–2023–014) (‘‘Notice’’). 

4 15 U.S.C. 78s(b)(2)(C). 

5 15 U.S.C. 78q–1(b)(3)(F). 

6 17 CFR 240.17Ad–22(e)(1). 

7 15 U.S.C. 78q–1(b)(3)(F). 

8 15 U.S.C. 78q–1(b)(3)(F). 

9 15 U.S.C. 78q–1(b)(3)(F). 

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 the filing 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–PHLX–2023–54 and should be 

submitted on or before January 3, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.45

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27274 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99115; File No. SR–ICC– 

2023–014] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Approving 

Proposed Rule Change Relating to the 

Clearance of Additional Credit Default 

Swap Contracts 

December 7, 2023. 

I. Introduction 

On October 25, 2023, ICE Clear Credit 

LLC (‘‘ICC’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to section 

19(b)(2) of the Securities Exchange Act 

of 1934 (the ‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

clear additional credit default swap 

(‘‘CDS’’) contracts. The proposed rule 

change was published for comment in 

the Federal Register on November 7, 

2023.3 The Commission did not receive 

comments regarding the proposed rule 

change. For the reasons discussed 

below, the Commission is approving the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

ICC is registered with the Commission 

as a clearing agency for the purpose of 

clearing CDS contracts. Chapter 26 of 

ICC’s Rulebook covers the CDS contracts 

that ICC clears, with each subchapter of 

Chapter 26 defining the characteristics 

and additional Rules applicable to the 

various specific categories of CDS 

contracts that ICC clears. Among other 

CDS contracts, ICC currently clears 

Standard Emerging Market Sovereign 

Single Name CDS (‘‘SES’’) contracts. 

The purpose of the proposed rule 

change is to amend ICC’s rules to permit 

ICC to clear additional SES contracts, 

specifically, SES contracts on the 

Kingdom of Morocco and the Federal 

Republic of Nigeria. 

To carry out this change, the proposed 

rule change would amend Subchapter 

26D of Chapter 26. In Rule 26D–102 

(Definitions), ‘‘Eligible SES Reference 

Entities,’’ the proposed rule change 

would add the Kingdom of Morocco and 

the Federal Republic of Nigeria to the 

list of specific Eligible SES Reference 

Entities to be cleared by ICC. 

As discussed below, these additional 

SES contracts have terms consistent 

with the other SES contracts that ICC is 

already clearing. Likewise, to clear these 

additional contracts, ICC will be able to 

rely on its existing Risk Management 

Framework and other policies and 

procedures without making any 

changes. 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act requires 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if it finds that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

the organization.4 For the reasons given 

below, the proposed rule change is 

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

the Act 5 and Rule 17Ad–22(e)(1) 

thereunder.6

a. Consistency With Section 17A(b)(3)(F) 

of the Act 

Section 17A(b)(3)(F) of the Act 

requires, among other things, that the 

rules of ICC be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and 

transactions.7

The proposed rule change is 

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

the Act.8 The terms and conditions of 

the additional SES contracts proposed 

for clearing are substantially similar to 

the terms and conditions of the other 

contracts listed in Subchapter 26D of 

ICC’s Rules, all of which ICC currently 

clears, with the key difference being the 

underlying reference obligations. The 

underlying reference obligations will be 

issuances by the Kingdom of Morocco 

and the Federal Republic of Nigeria. 

A review of the Notice and ICC’s 

Rules, policies, and procedures shows 

that ICC would be able to clear the 

additional SES contracts pursuant to its 

existing clearing arrangements and 

related financial safeguards, protections, 

and risk management procedures. 

Furthermore, a review of data on 

volume, open interest, and the number 

of ICC Clearing Participants (‘‘CPs’’) that 

currently trade in the SES contracts, as 

well as certain model parameters for the 

additional contracts, show that ICC’s 

rules, policies, and procedures are 

reasonably designed to price and 

measure the potential risk presented by 

the additional SES contracts, collect 

financial resources in proportion to 

such risk, and liquidate the additional 

contracts in the event of a CP default. 

This should help ensure ICC’s ability to 

maintain the financial resources it needs 

to provide its critical services and 

function as a central counterparty, 

thereby promoting the prompt and 

accurate settlement of the additional 

SES contracts and other credit default 

swap transactions. 

Therefore, clearance of the additional 

SES contracts would promote the 

prompt and accurate clearance and 

settlement of securities transactions, 

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

the Act.9

b. Consistency With Rule 17Ad–22(e)(1) 

Rule 17Ad–22(e)(1) requires ICC to 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to provide for a 

well-founded, clear, transparent, and 

enforceable legal basis for each aspect of 


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86400 Federal Register / Vol. 88, No. 238 / Wednesday, December 13, 2023 / Notices 

10 17 CFR 240.17Ad–22(e)(1). 

11 17 CFR 240.17Ad–22(e)(1). 

12 15 U.S.C. 78q–1(b)(3)(F). 

13 17 CFR 240.17Ad–22(e)(1). 

14 15 U.S.C. 78s(b)(2). 

15 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

16 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Cboe Global Markets U.S. Options Market 

Volume Summary by Month (November 29, 2023), 

available at https://markets.cboe.com/us/options/ 

market_statistics/. 

its activities in all relevant 

jurisdictions.10

The proposed rule change would help 

provide a well-founded, clear, 

transparent, and enforceable legal basis 

for ICC’s clearance of SES contracts on 

the Kingdom of Morocco and the 

Federal Republic of Nigeria. By 

amending Rule 26D–102 to add both the 

Kingdom of Morocco and the Federal 

Republic of Nigeria to the list of specific 

Eligible SES Reference Entities to be 

cleared by ICC, the proposed rule 

change would help to ensure that ICC 

can clear SES contracts on those 

countries pursuant to its existing rules 

in Subchapter 26D. The revised 

Subchapter 26D would provide a wellfounded, clear, transparent, and 

enforceable legal basis for ICC to clear 

these contracts, consistent with the 

requirements of Rule 17Ad–22(e)(1).11

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(b)(3)(F) of the Act 12 and 

Rule 17Ad–22(e)(1) thereunder.13

It is therefore ordered pursuant to 

section 19(b)(2) of the Act 14 that the 

proposed rule change (SR–ICC–2023– 

014), be, and hereby is, approved.15

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–27275 Filed 12–12–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99116; File No. SR–C2– 

2023–024] 

Self-Regulatory Organizations; Cboe 

C2 Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change Relating To Amend Its 

Fees Schedule 

December 7, 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 December 

1, 2023, Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) 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 

Cboe C2 Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘C2’’) proposes to amend 

its Fee Schedule. The text of the 

proposed rule change is in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

options/regulation/rule_filings/ctwo/), 

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 

Fee Schedule, effective December 1, 

2023. 

The Exchange first notes that it 

operates in a highly competitive market 

in which market participants can 

readily direct order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

17 options venues to which market 

participants may direct their order flow. 

Based on publicly available information, 

no single options exchange has more 

than approximately 16% of the market 

share and currently the Exchange 

represents approximately 3% of the 

market share.3 Thus, in such a lowconcentrated and highly competitive 

market, no single options exchange, 

including the Exchange, possesses 

significant pricing power in the 

execution of option order flow. The 

Exchange believes that the ever-shifting 

market share among the exchanges from 

month to month demonstrates that 

market participants can shift order flow 

or discontinue to reduce use of certain 

categories of products, in response to fee 

changes. Accordingly, competitive 

forces constrain the Exchange’s 

transaction fees, and market participants 

can readily trade on competing venues 

if they deem pricing levels at those 

other venues to be more favorable. 

Fee Code Updates 

First, the Exchange proposes to 

amend the transaction fee for Public 

Customer orders in AMC, AMD, AMZN, 

HYG, PLTR, TSLA, and XLF that 

remove liquidity. Currently, public 

customer orders in equity, multiplylisted index, ETF and ETN penny 

options classes (except SPY, AAPL, 

QQQ, IWM and SLV) that remove 

liquidity are assessed a standard 

transaction fee of $0.43 per contract and 

yield fee code ‘‘PC’’. The Exchange 

proposes to remove orders in AMC, 

AMD, AMZN, HYG, PLTR, TSLA, and 

XLF from fee code PC and, instead, 

assess fee code ‘‘SC’’ for Public 

Customer orders in AMC, AMD, AMZN, 

HYG, PLTR, TSLA, and XLF that 

remove liquidity. Fee code SC is 

currently appended to Public Customer 

orders in SPY, AAPL, QQQ, IWM and 


khammond on DSKJM1Z7X2PROD with NOTICES