Document ID: SEC-2023-0696-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe Ltd.
Posted Date: 2023-06-29T04:00Z

[Federal Register Volume 88, Number 124 (Thursday, June 29, 2023)]
[Notices]
[Pages 42114-42116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13791]

[[Page 42114]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97789; File No. SR-ICEEU-2023-016]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments FTSE 100 Index Contracts and SARON Futures Contracts

June 22, 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 June 9, 2023, ICE Clear Europe Limited filed with the Securities and 
Exchange Commission (``Commission'') the proposed rule changes 
described in Items I, II and III below, which Items have been prepared 
by ICE Clear Europe. ICE Clear Europe filed the proposed rule change 
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(2) 
thereunder,\4\ such that the proposed rule change was immediately 
effective upon filing with the Commission. The Commission is publishing 
this notice to solicit comments on the proposed rule change from 
interested persons.
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    \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).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing 
House'') proposes to amend certain clearing transaction fees for FTSE 
100 index contracts and SARON futures contracts (the ``Contracts'').\5\
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in the IFEU Equity Index Contracts and SARON 
Futures or, if not defined therein, the ICE Clear Europe Clearing 
Rules.
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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 increase certain clearing fees for 
specified ICE Futures Europe (``IFEU'') contracts, specifically the ICE 
Futures Europe FTSE 100 Futures and Options Contracts, FTSE 100 
Dividend Index Futures Contracts (collectively the ``Equity Index 
Contracts'') and Three-Month SARON[supreg] Index Futures Contracts (the 
``SARON Futures.'') The proposed fee changes are set forth in the 
following tables:

------------------------------------------------------------------------
                                             Existing      Proposed new
                                           clearing fee    clearing fee
                                             ([pound]/       ([pound]/
                                             contract)       contract)
------------------------------------------------------------------------
             CONTRACT--FTSE 100 Futures and Options Contract
------------------------------------------------------------------------
Outrights/Basis.........................            0.24            0.27
Block...................................            0.29            0.33
Block with Delayed Publication..........            0.33            0.35
Cash Settlement fee (Futures)...........            0.35            0.40
Exercise/Assignment fee (Options).......            0.35            0.40
Block fee cap (Options).................           2,080           2,350
Block fee cap with Delayed Publication             2,800           3,100
 (Options)..............................
Exercise/Assignment fee cap (Options)...           2,400           2,700
FTSE 100 Trade at Index Close Published.            0.28            0.31
FTSE 100 Trade at Index Close Delayed               0.35            0.38
 Published..............................
------------------------------------------------------------------------
           CONTRACT--FTSE 100 Dividend Index Futures Contract
------------------------------------------------------------------------
Outrights/Basis.........................            0.24            0.27
Block...................................            0.29            0.33
Block with Delayed Publication..........            0.33            0.35
Cash Settlement fee.....................            0.35            0.40
------------------------------------------------------------------------
                      CONTRACT--SARON Index Futures
------------------------------------------------------------------------
Outrights/Basis.........................            0.40            0.48
Block...................................            0.40            0.48
Block with Delayed Publication..........            0.56            0.68
Cash Settlement fee.....................            0.50            0.60
------------------------------------------------------------------------

    The proposed fee changes are intended to become operative on July 
1, 2023, subject to regulatory approval.
    The proposed increases in clearing fees for the Equity Index 
Contracts are intended to provide additional revenue to support the 
ongoing investments by ICE Clear Europe in developing clearing for 
derivative products on FTSE indexes, including the Equity Index 
Contracts. The amendments are also intended to bring fees into line 
with the fees of similar equity index contracts traded on other 
European exchanges, which have increased in 2023.
    The proposed increases in fees for SARON Futures are intended to 
provide additional revenue to support ongoing clearing of the SARON 
Futures, including to support marketing and business development 
efforts relating to Swiss franc denominated interest rate derivatives 
in light of the continued evolution of European markets as a result of 
ongoing regulatory changes under EU law and other factors.

[[Page 42115]]

    The amendments to the fees for both Equity Index Contracts and 
SARON Futures will also generally provide additional revenue to support 
Clearing House investments that enhance the services provided to market 
participants, including through new clearing technology to augment the 
existing clearing platform, reduce systems risk, and add additional 
regulatory reporting related to MIFID and other regulations. Fee 
increases also reflect the current inflationary macroeconomic 
environment.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed fee amendments for the 
Equity Index Contracts and SARON Futures are consistent with the 
requirements of Section 17A of the Act \6\ and the regulations 
thereunder applicable to it. In particular, Section 17A(b)(3)(D) of the 
Act \7\ requires that ``[t]he rules of the clearing agency provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its participants.'' ICE Clear Europe believes that its clearing 
fees, as proposed to be amended, would be reasonable and appropriate 
for the Contracts. ICE Clear Europe's fees are imposed at the product 
level on a per transaction basis (as are the applicable exchange fees), 
and would be generally applicable to market participants trading in the 
contracts. ICE Clear Europe has determined that the increased clearing 
fees are appropriate to support continued investments in clearing 
operations. Specifically, the increased fees for the Equity Index 
Contracts would support ongoing development of clearing of derivatives 
on FTSE indices, and will be consistent with fees for other contract 
for similar equity index futures contracts traded on other exchanges. 
The increased fees for the SARON Futures would facilitate ongoing 
market and business development with respect to that contract. ICE 
Clear Europe has further determined that the increased fees would be 
commensurate with the size and nature of the contracts and would 
provide an appropriate balance between the costs of clearing for market 
participants and the expenses incurred by ICE Clear Europe in offering 
clearing of the relevant contracts, taking into account the investments 
ICE Clear Europe has made and will continue to make in clearing such 
products. As such, in ICE Clear Europe's view, the amendments are 
consistent with the equitable allocation of reasonable dues, fees, and 
other charges among its Clearing Members and other market participants, 
within the meaning of Section 17A(b)(3)(D) of the Act.\8\
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    \6\ 15 U.S.C. 78q-1.
    \7\ 15 U.S.C. 78q-1(b)(3)(D).
    \8\ 15 U.S.C. 78q-1(b)(3)(D).
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    The proposed amendments are also consistent with the requirements 
of Section 17A(b)(3)(F) of the Act \9\ which requires, among other 
things, that the ``rules of a clearing agency [. . .] are not designed 
to permit unfair discrimination in the admission of participants or 
among participants in the use of the clearing agency.'' As noted above, 
the proposed fee changes for the Contracts would apply on a per 
transaction basis and would apply to Clearing Members and market 
participants generally. As a result, the amendments would not result in 
any unfair discrimination among Clearing Members in their use of the 
Clearing House, within the meaning of Section 17A(b)(3)(F) of the 
Act.\10\
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    \9\ 15 U.S.C. 78q-1(b)(3)(F).
    \10\ 15 U.S.C. 78q-1(b)(3)(F).
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(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. Although ICE is 
increasing certain clearing fees, as set forth herein, it believes such 
changes are appropriate to reflect the costs and expenses incurred by 
the Clearing House and to support continued investment in its 
operations and infrastructure to support clearing activities for these 
and other contracts. Further, as discussed above, because fees are 
imposed on a per transaction basis at the product level, the revised 
fees would be applied equally to all Clearing Members and other market 
participants who transact in the Contracts. ICE does not believe that 
the amendments would adversely affect the ability of such Clearing 
Members or other market participants generally to access clearing 
services for the Contracts. Further, since the revised fees will apply 
to market participants generally, ICE believes that the amendments 
would not otherwise affect competition among Clearing Members, 
adversely affect the market for clearing services or limit market 
participants' choices for obtaining clearing services. Accordingly, ICE 
Clear Europe does not believe that the amendments would impose any 
impact or burden on competition that is not appropriate in furtherance 
of the purpose 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 amendment 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, Security-Based 
Swap Submission and Advance Notice and Timing for Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\ 
thereunder. At any time within 60 days of the filing of the proposed 
rule change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
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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 [email protected]. Please include 
file number SR-ICEEU-2023-016 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-2023-016. 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

[[Page 42116]]

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 10:00 a.m. and 3:00 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 publication 
submitted material that is obscene or subject to copyright protection. 
All submissions should refer to File Number SR-ICEEU-2023-016 and 
should be submitted on or before July 20, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(12).
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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023-13791 Filed 6-28-23; 8:45 am]
BILLING CODE 8011-01-P