Document ID: SEC-2023-0440-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: ICE Clear Europe, Ltd.
Posted Date: 2023-04-20T04:00Z

[Federal Register Volume 88, Number 76 (Thursday, April 20, 2023)]
[Notices]
[Pages 24457-24458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08308]

[[Page 24457]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-97311; File No. SR-ICEEU-2023-008]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments of ICE Futures Europe (``IFEU'') Oil Futures Contracts

April 14, 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 April 6, 2023, 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)(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 proposes to amend certain clearing fees for ICE 
Futures Europe (``IFEU'') oil futures contracts.\5\
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    \5\ Capitalized terms used but not defined herein have the 
meanings specified in the IFEU Oil Futures Contracts 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'') oil futures contracts, 
specifically the IFEU Brent Crude Oil, Low Sulphur Gasoil, West Texas 
Intermediate (WTI) Crude Oil, Midland WTI American Gulf Coast, Heating 
Oil and RBOB Gasoline futures contracts (collectively, the ``IFEU Oil 
Futures''). The proposed fee changes are set forth in the following 
table:

------------------------------------------------------------------------
                                             Existing      Proposed new
       Contract--IFEU Oil Futures          clearing fee    clearing fee
                                          (US$/contract)  (US$/contract)
------------------------------------------------------------------------
Futures Contract........................            0.57            0.60
EFP/EFS/Block...........................            1.20            1.26
------------------------------------------------------------------------

    The proposed fee changes are intended to become operative on May 1, 
2023, subject to regulatory approval.
    The current clearing fees for IFEU Oil Futures have not changed 
since Intercontinental Exchange, Inc. acquired the International 
Petroleum Exchange (``IPE'') in 2001. The increases are intended to 
provide additional revenue, which ICE Clear Europe expects to use, 
among other purposes, to support the significant ongoing investments by 
ICE Clear Europe in clearing activities. Such investments include 
increased risk staffing requirements relating to increased market 
complexity, expansion of technology to improve platform capacity and 
reduce systems risk, expansion of reporting capabilities in light of 
regulatory requirements, ongoing development of compliance staff in 
light of increasing market complexity and size, and ongoing enhancement 
of IT and other operational resources to support clearing operations.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments for the IFEU 
Oil 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 IFEU Oil Futures. 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. As set 
forth above, ICE Clear Europe has determined that the increased 
clearing fees are appropriate to support continued investments in 
enhancements to clearing operations, which support the clearing of the 
IFEU Oil Futures as well as other contracts. ICE Clear Europe has 
further determined that the increased fees would be commensurate with 
the size 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 trading and 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).
    \9\ 15 U.S.C. 78q-1(b)(3)(F).
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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 IFEU Oil Futures 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

[[Page 24458]]

House, within the meaning of Section 17A(b)(3)(F) of the Act.\10\
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    \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 
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 and to support continued 
investment in its infrastructure to support clearing activities. 
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 IFEU Oil Futures. 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 market participants generally, 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. 
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 has 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 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, security-based swap submission or advance notice is consistent 
with the Act. Comments may be submitted by any of the following 
methods:

Electronic Comments

     Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml) or
     Send an email to [email protected]. Please include 
File Number SR-ICEEU-2023-008 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-2023-008. 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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change, security-
based swap submission or advance notice 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/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-2023-008 and should be 
submitted on or before May 11, 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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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-08308 Filed 4-19-23; 8:45 am]
BILLING CODE 8011-01-P