Document ID: SEC-2021-0215-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe, Ltd.
Posted Date: 2021-02-12T05:00Z

[Federal Register Volume 86, Number 28 (Friday, February 12, 2021)]
[Notices]
[Pages 9416-9418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-02858]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91076; File No. SR-ICEEU-2021-001]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to Clearing Fees for ICE Futures Europe Three Month Swiss 
Average Rate Overnight (SARON[supreg]) Index Futures Contract

February 8, 2021.
    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 February 1, 2021, ICE Clear Europe Limited (``ICE Clear Europe'') 
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. 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\ so that the proposal 
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'') proposes rule 
changes relating to amendments to clearing fees for ICE Futures Europe 
Three Month Swiss Average Rate Overnight (SARON[supreg]) Index futures 
contract (``Three Month SARON''). The proposed amendments do not 
involve any changes to the ICE Clear Europe Clearing Rules or 
Procedures.\5\
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in 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. 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
    The purpose of the proposed rule changes is for ICE Clear Europe to 
reduce the clearing fees for Three Month SARON in line with the changes 
to the notional size of the contract, which the Exchange is proposing 
to decrease in size by a factor of four. (Equivalent reductions in the 
trading fee are being proposed by the Exchange.)
    As there is no current Open Interest in the Three Month SARON 
contract, the proposed change to the notional size of the contract is 
being made to help simplify the transition of Open Interest from the 
existing ICE Futures Europe Three Month Euroswiss futures contract 
(``Three Month Euroswiss''), which references Three Month Swiss Franc 
LIBOR, to the Three Month SARON contract which references the Swiss 
Average Overnight Rate. Currently, Three Month SARON is four times 
larger in notional size than Three Month Euroswiss so this proposed 
change will enable the transition of Open Interest on a one to one 
futures contract basis. As the contract size of the Three Month SARON 
contract is reducing by a factor of 4, so the trading and clearing fees 
will reduce by the same amount. Attached [sic] as Exhibit 5 is an 
attachment containing tables listing the new fee schedules and a 
Circular in advance of the proposed effective date. The new fees are 
intended to come into effect on 01 March 2021 subject to regulatory 
approval. The proposed revisions to the fees are described in detail as 
follows.

[[Page 9417]]

[GRAPHIC] [TIFF OMITTED] TN12FE21.000

(b) Statutory Basis
    ICE Clear Europe believes that the proposed rule changes are 
consistent with the requirements of the Act, including Section 17A of 
the Act \6\ and regulations thereunder applicable to it. ICE Clear 
Europe's fees are imposed at the product level on a per transaction 
basis (as are the applicable Exchange fees). As a result, the fees 
apply equally to all market participants who trade/clear the Contracts. 
ICE Clear Europe has determined that the reduced fees are commensurate 
with the reduction in the notional size of the contract and will 
provide an appropriate balance between the costs of clearing, and 
expenses incurred by ICE Clear Europe. 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,\7\ and further do not unfairly discriminate among such 
participants in their use of the Clearing House, within the meaning of 
Section 17A(b)(3)(F) 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). Under this provision, ``[a] 
clearing agency shall not be registered unless the Commission 
determines that--(D) The rules of the clearing agency provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its participants.''
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed rule changes would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purpose of the Act. As discussed 
above, because fees are imposed on a per transaction basis at the 
product level, the changes to the fees are applied equally to all those 
market participants who trade and/or clear the Contracts. The 
amendments with respect to the SARON contract will not result in higher 
fees for particular Clearing Members as they are decreasing in line 
with the size of the contract and therefore ICE Clear Europe believes 
that the new fees would be set at an appropriate level to better 
reflect the cost that the Clearing House takes on by facilitating the 
relevant clearing services. ICE Clear Europe 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 all 
Clearing Members that clear the products, ICE Clear Europe 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.

(C) Self-Regulatory Organization's Statement on Comments on the 
Proposed Rule Change Received From Members, Participants or Others

    Written comments relating to the proposed changes to the rules have 
not been solicited or received. ICE Clear Europe will notify the 
Commission of any written comments received by ICE Clear Europe.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) \9\ of the Act and paragraph (f) of Rule 19b-4 \10\ 
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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    \9\ 15 U.S.C. 78s(b)(3)(A).
    \10\ 17 CFR 240.19b-4(f)(2).
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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 rule-comments@sec.gov. Please include 
File Number SR-ICEEU-2021-001 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-2021-001. 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 10:00 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://

[[Page 9418]]

www.theice.com/notices/Notices.shtml?regulatoryFilings.
    All comments received will be posted without change. Persons 
submitting comments are cautioned that we do not redact or edit 
personal identifying information from comment submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File Number SR-ICEEU-2021-001 and should be 
submitted on or before March 5, 2021.
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    \11\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-02858 Filed 2-11-21; 8:45 am]
BILLING CODE 8011-01-P