Document ID: SEC-2022-0180-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe, Ltd.
Posted Date: 2022-02-04T05:00Z

[Federal Register Volume 87, Number 24 (Friday, February 4, 2022)]
[Notices]
[Pages 6630-6633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02313]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94101; File No. SR-ICEEU-2022-001]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to the Clearing Fees for ICE Futures Europe FTSE 100 
Index Futures and Options, FTSE 100 Dividend Index Futures and the 
Clearing Fee Caps for FTSE 100 Index Options

January 31, 2022.
    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 January 19, 2022, ICE Clear Europe Limited

[[Page 6631]]

(``ICE Clear Europe'' or the ``Clearing House'') 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 primarily 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

    The principal purpose of the proposed amendments is for ICE Clear 
Europe to amend the clearing fees for ICE Futures Europe FTSE 100 Index 
Futures and Options, FTSE 100 Dividend Index Futures and the clearing 
fee caps for FTSE 100 Index Options. 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 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
    The purpose of the proposed rule changes is for ICE Clear Europe to 
amend the clearing fees for FTSE 100 Index Futures and Options and the 
FTSE 100 Dividend Index Futures (the ``Contracts'') and to amend the 
clearing fee caps that are currently applied to FTSE 100 Index Options 
block trades.
    Following review, and in consultation with ICE Futures Europe (the 
exchange on which the Contracts are traded), ICE Clear Europe proposes 
to increase the clearing fees for the FTSE 100 Index derivatives to 
support the additional development of the Contracts, noting that the 
last time the fees were reviewed was in January 2019 for the FTSE 100 
Index Futures and the FTSE 100 Dividend Index Futures, and in October 
2019 for the FTSE 100 Index Options. The decision to amend fees has 
been made in conjunction with ICE Futures Europe, and accordingly the 
fee tables below and in Exhibit 5 also include for information purposes 
the proposed exchange fee changes. The proposed new fees are intended 
to come into effect on 1 February 2022, subject to regulatory approval, 
and ICE Clear Europe intends to publish a Circular to inform market 
participants of the changes to the fee schedule in advance of such 
proposed effective date. The proposed revisions to the fees are 
described in further detail below.
FTSE 100 Futures and Options Proposed Transaction Fees
    The Clearing House is proposing the increases noted below to the 
FTSE 100 Index Futures and Option clearing transaction fees associated 
with Screen, Block/Basis and Block with Delayed Publication. In 
addition, the Clearing House proposes to increase the fee caps that are 
currently applied to FTSE 100 Index Options block trades. Below is a 
table showing the current clearing fees and a table showing the 
proposed amended clearing fees.
    Contract Levies for FTSE 100 Index Futures and Options:
    Current Fees:
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    \6\ Including FTSE 100 Index Futures Trade at Index Close (FTSE 
TIC).
    \7\ Including FTSE 100 Index Futures Trade at Index Close (FTSE 
TIC).

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                                                                                  Fee  ([pound])
                         Contract levies                         -----------------------------------------------
                                                                     Exchange        Clearing          Total
----------------------------------------------------------------------------------------------------------------
Outrights/Basis.................................................            0.09            0.21            0.30
Block...........................................................            0.04            0.26            0.30
Block with Delayed Publication..................................            0.05            0.30            0.35
Cash Settlement fee (Futures) \6\...............................            0.00            0.30            0.30
Exercise/Assignment fee (Options)...............................            0.00            0.30            0.30
Block fee cap (Options).........................................             220           1,980           2,200
Block fee cap with Delayed Publication (Options)................             300           2,700           3,000
Exercise/Assignment fee cap (Options)...........................            0.00           2,200           2,200
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    Proposed Fees:

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                                                                                  Fee  ([pound])
                         Contract levies                         -----------------------------------------------
                                                                     Exchange        Clearing          Total
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Outrights/Basis.................................................            0.11            0.24            0.35
Block...........................................................            0.06            0.29            0.35
Block with Delayed Publication..................................            0.07            0.33            0.40
Cash Settlement fee (Futures) \7\...............................            0.00            0.35            0.35
Exercise/Assignment fee (Options)...............................            0.00            0.35            0.35
Block fee cap (Options).........................................             320           2,080           2,400
Block fee cap with Delayed Publication (Options)................             400           2,800           3,200
Exercise/Assignment fee cap (Options)...........................            0.00           2,400           2,400
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[[Page 6632]]

FTSE 100 Dividend Futures Proposed Transaction Fees
    The Clearing House is proposing the increases noted below to the 
FTSE 100 Dividend Futures clearing transaction fees associated with 
Screen, Block/Basis and Block with Delayed Publication and with cash 
settlement. Below is a table showing the current clearing fees and a 
table showing the proposed amended clearing fees.
    Contract Levies for FTSE 100 Dividend Index Futures:
    Current Fees:

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                                                                                  Fee  ([pound])
                         Contract levies                         -----------------------------------------------
                                                                     Exchange        Clearing          Total
----------------------------------------------------------------------------------------------------------------
Outrights/Basis.................................................            0.09            0.21            0.30
Block...........................................................            0.04            0.26            0.30
Block with Delayed Publication..................................            0.05            0.35            0.40
Cash Settlement fee.............................................            0.00            0.30            0.30
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    Proposed Fees:

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                                                                                  Fee  ([pound])
                         Contract levies                         -----------------------------------------------
                                                                     Exchange        Clearing          Total
----------------------------------------------------------------------------------------------------------------
Outrights/Basis.................................................            0.11            0.24            0.35
Block...........................................................            0.06            0.29            0.35
Block with Delayed Publication..................................            0.07            0.33            0.40
Cash Settlement fee.............................................            0.00            0.35            0.35
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(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 \8\ and regulations thereunder applicable to it. In particular, 
Section 17A(b)(3)(D) of the Act \9\ 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 relevant Contracts. 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, as 
proposed to be modified, would apply to all market participants who 
trade and clear the Contracts. ICE Clear Europe has determined that the 
increased fees would be commensurate with the size of the contract 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 in clearing such products. 
Exhibit 3 includes a quantitative analysis of the impact of the 
proposed fee changes. 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.\10\
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    \8\ 15 U.S.C. 78q-1.
    \9\ 15 U.S.C. 78q-1(b)(3)(D).
    \10\ 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 \11\ which requires, among other 
things, that ``[t]he 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 fees, as proposed to be amended, would apply on a 
per transaction and would apply to all Clearing Members. 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.\12\
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    \11\ 15 U.S.C. 78q-1(b)(3)(F).
    \12\ 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 rule changes would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purpose of the Act. Although ICE 
Clear Europe 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 in clearing the relevant 
Contracts. Further, 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 Clearing Members who trade and/or clear the 
Contracts. 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. As a result, ICE Clear Europe 
does not believe the amendments would have any impact or impose any 
burden on competition that is not necessary or appropriate in 
furtherance of the purposes 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 amendments have not been 
solicited or received by ICE Clear Europe. ICE Clear Europe will notify 
the Commission of any comments received with respect to the proposed 
rule change.

[[Page 6633]]

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) of the Act \13\ and paragraph (f)(2) of Rule 19b-4 \14\ 
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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    \13\ 15 U.S.C. 78s(b)(3)(A).
    \14\ 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 [email protected]. Please include 
File Number SR-ICEEU-2022-001 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-2022-001. 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, security-based swap submission or advance notice 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.
    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-2022-001 and should be 
submitted on or before February 25, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\15\
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    \15\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-02313 Filed 2-3-22; 8:45 am]
BILLING CODE 8011-01-P