Document ID: SEC-2021-0272-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe, Ltd.
Posted Date: 2021-02-25T05:00Z

[Federal Register Volume 86, Number 36 (Thursday, February 25, 2021)]
[Notices]
[Pages 11568-11569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03850]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91166; File No. SR-ICEEU-2021-005]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to Part BB of the ICE Clear Europe Delivery Procedures

February 19, 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 12, 2021, ICE Clear Europe Limited (``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 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)(4)(ii) \4\ 
thereunder, 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)(4)(ii).
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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 make certain amendments to Part BB of its Delivery Procedures 
to clarify the delivery specifications relating to Containerised White 
Sugar futures contracts in order to facilitate identification of sugar 
eligible for delivery under the contract.\5\
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in the ICE Clear Europe Clearing Rules (the 
``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 amend Part BB of its Delivery 
Procedures to clarify the delivery specifications relating to 
Containerised White Sugar contracts. The proposed amendments would 
provide that such contracts relate to specified sugar of any origin of 
the crop or production current on the first day of the delivery period 
(instead of referencing the crop at the time of delivery). The change 
would facilitate identification of sugar eligible for delivery under 
the contract.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments to Part BB 
of the Delivery Procedures 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)(F) of the Act \7\ requires, among 
other things, that the rules of a clearing agency be designed to 
promote the prompt and accurate clearance and settlement of securities 
transactions and, to the extent applicable, derivative agreements, 
contracts, and transactions, the safeguarding of securities and funds 
in the custody or control of the clearing agency or for which it is 
responsible, and the protection of investors and the public interest. 
The proposed changes to the Delivery Procedures are designed to 
strengthen ICE Clear Europe's arrangements and delivery procedures 
relating to Containerised White Sugar contracts. The amendments would 
clarify that Containerised White Sugar contracts relate to specified 
sugar of any origin of the crop or production current on the first day 
of the delivery period (rather than at the time of delivery). The 
amendments do not otherwise change the terms and conditions of the 
contracts, and the contracts will continue to be cleared by ICE Clear 
Europe in the same manner as they are currently. In ICE Clear Europe's 
view, the amendments are thus consistent with the prompt and accurate 
clearance and settlement of cleared contracts and the protection of 
investors and the public interest. (ICE Clear Europe would not expect 
the amendments to affect the safeguarding of securities and funds in 
ICE Clear Europe's custody or control or for which it is responsible). 
Accordingly, the amendments satisfy the requirements of Section 
17A(b)(3)(F).\8\
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    \6\ 15 U.S.C. 78q-1.
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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    In addition, Rule 17Ad-22(e)(10) \9\ requires that each covered 
clearing agency ``establish and maintain transparent written standards 
that state its obligations with respect to the delivery of physical 
instruments, and establish and maintain operational practices that 
identify, monitor and manage the risks associated with such physical 
deliveries.'' As discussed above, the amendments would clarify the 
delivery specifications for Containerised White Sugar contracts to 
facilitate identification of sugar eligible for delivery under the 
contracts. The amendments would not otherwise change the manner in 
which the contracts are cleared or in which delivery is made, as 
supported by ICE Clear Europe's existing financial resources, risk 
management, systems and operational arrangements. The amendments thus 
clarify the role and responsibilities of the Clearing House and 
Clearing Members with respect to physical delivery. As a result, ICE 
Clear Europe believes the amendments are consistent with the 
requirements of Rule 17Ad-22(e)(10).\10\
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    \9\ 17 CFR 240.17Ad-22(e)(10).
    \10\ 17 CFR 240.17Ad-22(e)(10).
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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

[[Page 11569]]

impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The amendments 
are being adopted to update and clarify the delivery specifications in 
Part BB of the Delivery Procedures in connection with Containerised 
White Sugar contracts, and will not otherwise affect the contract. ICE 
Clear Europe does not expect that the proposed changes will adversely 
affect access to clearing or the ability of Clearing Members, their 
customers or other market participants to continue to clear contracts. 
ICE Clear Europe also does not believe the amendments would materially 
affect the cost of clearing or otherwise impact competition among 
Clearing Members or other market participants or limit market 
participants' choices for selecting clearing services. Accordingly, ICE 
Clear Europe does not believe the amendments would impose any burden on 
competition not necessary or 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 rule changes 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 amendments.

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 and paragraph (f) of Rule 19b-4 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.

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-2021-005 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-2021-005. 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 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-2021-005 and should be 
submitted on or before March 18, 2021.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\11\
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    \11\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-03850 Filed 2-24-21; 8:45 am]
BILLING CODE 8011-01-P