Document ID: SEC-2020-0451-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe Ltd.
Posted Date: 2020-03-26T04:00Z

[Federal Register Volume 85, Number 59 (Thursday, March 26, 2020)]
[Notices]
[Pages 17139-17140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06295]

[[Page 17139]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88433; File No. SR-ICEEU-2020-004]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to the Finance Procedures (the ``Finance Procedures'')

March 20, 2020.
    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 March 19, 2020, 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 and II 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)(6) \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)(6).
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    ICE Clear Europe Limited is proposing to amend the cash instruction 
deadline for USD set out in Section 6.1(e) of the Finance Procedures to 
be 11:45 Eastern time, rather than 16:45 London time, as set out in 
Exhibit 5.\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
    The purpose of the proposed amendment is to amend the cash 
instruction deadline for USD cash in Section 6.1(e) of the Finance 
Procedures to be 11:45 Eastern time instead of 16:45 London time. Under 
most circumstances, 11:45 Eastern time is the same as 16:45 London 
time. However, ICE Clear Europe is proposing the amendment to avoid an 
unintended change in the applicable deadline as a result of the 
different start dates for daylight savings time in the United States 
and the United Kingdom. In the absence of the amendment, the temporary 
change in time difference between the US and UK would cause the 
deadline to move to 12:45 Eastern time for the period until summer time 
commences in the UK.
    The change would thus allow ICE Clear Europe to maintain its 
current (Eastern time) deadline for USD instructions regardless of any 
change in the time difference between local time in London and local 
time in New York in connection with differences in dates for daylight 
saving time in the US and UK. In ICE Clear Europe's view, the 11:45 
a.m. deadline for USD cash instructions facilitates ICE Clear Europe's 
ongoing USD cash management and investment activities, particularly in 
circumstances where the market may be volatile.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed rule change is 
consistent with the requirements of Section 17A of the Act \6\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22.\7\ In particular, Section 17A(b)(3)(F) of the Act \8\ 
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 amendments would facilitate continued regular 
settlement operations between the Clearing House and its Clearing 
Members in USD by avoiding an unintended change in the USD instruction 
deadline as a result of temporary changes in the time difference 
between the US and the UK. The amendments would also facilitate ICE 
Clear Europe's ongoing USD cash management and investment activities, 
and help ensure that, particularly during times of market volatility, 
the Clearing House would continue to have the operational capacity to 
effect settlements with each Clearing Member. As such, the amendment 
would promote the prompt and accurate clearance and settlement of 
transactions. By facilitating the Clearing House's investment and cash 
management activities, the amendments are also consistent with the 
safeguarding of securities and funds in the custody or control of the 
Clearing House or for which it is responsible, and will generally 
further the protection of investors and the public interest.
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    \6\ 15 U.S.C. 78q-1.
    \7\ 17 CFR 240.17Ad-22.
    \8\ 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 amendment would have 
any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purpose of the Act. The amendments 
are being proposed to maintain the usual USD cash instruction (Eastern 
time) deadline notwithstanding temporary changes in the time difference 
between the US and UK. As a result, ICE Clear Europe does not believe 
the amendments would adversely affect competition among Clearing 
Members, materially affect the cost of clearing, adversely affect 
access to clearing in Contracts for Clearing Members or their 
customers, or otherwise adversely affect competition in 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 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.

III. Date of Effectiveness of the Proposed Rule Change

    Because the foregoing proposed rule change does not: (i) 
Significantly affect the protection of investors or the public

[[Page 17140]]

interest; (ii) impose any significant burden on competition; and (iii) 
become operative for 30 days from the date on which it was filed, or 
such shorter time as the Commission may designate if consistent with 
the protection of investors and the public interest, provided that ICE 
Clear Europe has given the Commission written notice of its intent to 
file the proposed rule change at least five business days prior to the 
date of filing of the proposed rule change or such shorter time as 
designated by the Commission, it has become effective pursuant to 
Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\9\
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    \9\ ICE Clear Europe has requested that the Commission waive the 
five-day pre-filing requirement and the 30-day delayed operative 
date under Rule 19b-4(f)(6)(iii) so that the proposed rule change 
may become effective and operative upon filing with the Commission, 
which the Commission has done. Moreover, for purposes only of these 
waivers, the Commission has considered the proposed rule change's 
impact on efficiency, competition, and capital formation. See 15 
U.S.C. 78c(f).
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    Because the Commission believes that the proposed rule change would 
merely maintain the usual USD cash instruction deadline notwithstanding 
temporary changes in the time difference between the US and UK, it 
would promote the prompt and accurate clearance and settlement of 
transactions by facilitating the ICEEU's investment and cash management 
activities and be consistent with the obligation to safeguard 
securities and funds in the custody or control of ICEEU or for which it 
is responsible, and would generally further the protection of investors 
and the public interest. Further, the Commission does not believe that 
the proposed rule change would impose any new requirements on clearing 
members it would not burden competition.
    Additionally, because such a temporary change in time difference is 
currently in effect, and will last until March 27, 2020, the Commission 
believes that prompt implementation of the proposal change is necessary 
and appropriate and that a 30-day delay would serve no purpose. 
Further, the Commission believes that any delay in the operation of the 
proposed rule change would be inconsistent with the goal of maintaining 
the certainty of the current cash deadlines. Therefore, the Commission 
believes that waiving the 30-day operative delay is consistent with the 
protection of investors and the public interest and designates the 
proposed rule change as operative upon filing.\10\
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    \10\ For these same reasons, the Commission waives the five-day 
pre-filing requirement.
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    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. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

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-2020-004 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-2020-004. 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://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-2020-004 and should be 
submitted on or before April 16, 2020.
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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. 2020-06295 Filed 3-25-20; 8:45 am]
 BILLING CODE 8011-01-P