Notice2022-05596
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Delivery Procedures
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 17, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 52 (Thursday, March 17, 2022)</title>
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[Federal Register Volume 87, Number 52 (Thursday, March 17, 2022)]
[Notices]
[Pages 15277-15279]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-05596]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94404; File No. SR-ICEEU-2022-006]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the ICE Clear Europe Delivery Procedures
March 11, 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 March 7, 2022, 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 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)(4)(ii)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. The Commission is publishing
this notice to solicit
[[Page 15278]]
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 amend Part H of its Delivery Procedures (``Delivery
Procedures'' or ``Procedures'') to cover ICE Endex German THE Natural
Gas Daily Futures Contracts (the ``Contracts''), natural gas futures
contracts that will be traded on ICE Endex and cleared by ICE Clear
Europe. The proposed updates would also make certain conforming changes
elsewhere in the Delivery Procedures.
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 H of the Delivery
Procedures, which currently addresses delivery under ICE Endex German
THE Natural Gas Futures Contracts (the ``Monthly Contract''), to also
include the Contracts, which are a daily futures contract with respect
to the same underlying commodity. The amendments would also make
certain conforming changes elsewhere in the Delivery Procedures. The
amended Delivery Procedures would provide the delivery specifications
and processes related to delivery under the Contracts. Other minor
drafting clarifications and updates would also be made.
The amendments would provide that for the Contracts, the price at
which the contract is delivered is the Exchange Delivery Settlement
Price (EDSP) for the Business Day immediately prior to the calendar day
on which the Delivery Day for the Contracts commences in accordance
with ICE Endex Rules.
The amendments would state the cessation of trading for the
Contracts; specifically, the Contracts cease trading at 18:00 hours on
the Business Day which is one Business Day prior to the Delivery Day,
in accordance with ICE Endex Rules.
With respect to Exchange for Physicals (EFPs) and Exchange for
Swaps (EFSs), the amendments would provide that, for the Contracts,
EFPs and EFSs may be posted up to thirty minutes following the
cessation of trading.
In the delivery timetable for routine deliveries of the current
Monthly Contract, a minor correction would be made regarding timing
specifications related to the nomination of a Transferor or Transferee.
The related MPFE report to be made available to Clearing Members would
be made available after (and not by) 12:30 CET.
A new delivery timetable would be added for routine deliveries
under the Contracts and failed delivery under the Contracts. The
routine delivery timetable would set out, among other matters,
deadlines for submissions of delivery intentions and nominations and
other notifications, provision of buyer's and seller's security,
confirmation of delivery and payment. The timetable relating to failed
deliveries would address, among other matters, additional margin
requirements and invoicing of payments for failed deliveries.
In the delivery documentation summary timetable for the current
Monthly Contract, a minor correction would be made regarding timing of
the confirmation report. When available, a copy of such report must be
provided by Buyers and Sellers to the relevant Transferor(s) and
Transferee(s) by 12:30 CET (not 14:00 CET).
A new delivery documentation summary timetable for the Contracts
would be added which describes the certain reports to be made available
to Clearing Members by the Clearing House with respect to the Contracts
and certain other forms, as well as timing specifications.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Delivery Procedures are consistent with the requirements of Section 17A
of the Act \5\ and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(F) of the Act \6\ 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 establish delivery
procedures relating to the Contracts, which will be traded on ICE Endex
and cleared at ICE Clear Europe. The amendments would set out delivery
specifications related to the Contracts, including the settlement
price, delivery timing and delivery documentation, in line with
Delivery Procedures for the Monthly Contract and other types of
deliverable energy futures contracts. Contracts providing for delivery
under Part H will be cleared by the Clearing House in the substantially
same manner as the existing Monthly Contract and other types of
deliverable energy futures contracts and will be supported by ICE Clear
Europe's existing F&O financial resources, risk management, systems and
operational arrangements. Accordingly, ICE Clear Europe believes that
its financial resources, risk management, systems and operational
arrangements are sufficient to support clearing of such contracts and
to manage the risks associated with such contracts. As a result, in ICE
Clear Europe's view, the amendments would be consistent with the prompt
and accurate clearance and settlement of the contracts, and the
protection of investors and the public interest consistent with the
requirements of Section 17A(b)(3)(F) of the Act.\7\ (In ICE Clear
Europe's view, the amendments would not affect the safeguarding of
funds or securities in the custody or control of the clearing agency or
for which it is responsible, within the meaning of Section
17A(b)(3)(F).\8\)
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\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78q-1(b)(3)(F).
\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\ provides that ``[e]ach covered
clearing agency shall establish, implement, maintain and enforce
written policies and procedures reasonable designed to, as applicable
[. . .] 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 modify Part H of the Delivery
Procedures to add procedures applicable to the delivery and settlement
of the Contracts. The procedures would address, among other matters,
delivery specifications for such contracts and certain other
[[Page 15279]]
documentation and timing matters, consistent with the requirements of
the Clearing House. Clearance of the Contracts would otherwise be
supported by ICE Clear Europe's existing financial resources, risk
management, systems and operational arrangements. The amendments thus
appropriately 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 impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
amendments to the Delivery Procedures are intended to establish
procedures applicable to the delivery and settlement of the Contracts
in connection with the listing of such Contracts for trading on the ICE
Endex market. ICE Clear Europe believes that such contracts would
provide opportunities for interested market participants to engage in
trading activity in the relevant German natural gas market. 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 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 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 is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>) or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#592b2c353c743a3634343c372d2a192a3c3a773e362f"><span class="__cf_email__" data-cfemail="b5c7c0d9d098d6dad8d8d0dbc1c6f5c6d0d69bd2dac3">[email protected]</span></a>. Please include
File Number SR-ICEEU-2022-006 on the subject line.
Paper Comments
<bullet> 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-2022-006. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
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 <a href="https://www.theice.com/clear-europe/regulation">https://www.theice.com/clear-europe/regulation</a>.
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-2022-006 and should be
submitted on or before April 7, 2022.
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\13\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2022-05596 Filed 3-16-22; 8:45 am]
BILLING CODE 8011-01-P
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