Notice2022-13043
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments to Part HH of the ICE Clear Europe Delivery Procedures
Primary source
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Published
June 17, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 117 (Friday, June 17, 2022)</title>
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[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Notices]
[Pages 36560-36562]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13043]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95090; File No. SR-ICEEU-2022-013]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to Part HH of the ICE Clear Europe Delivery Procedures
June 13, 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 May 31, 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 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
ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to amend Part HH of its Delivery Procedures
(``Delivery
[[Page 36561]]
Procedures'' or ``Procedures'') to correct a drafting inconsistency.
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 HH of the Delivery
Procedures, which addresses delivery under the monthly ICE Endex French
PEG Natural Gas futures contract (``Monthly Contract''), and daily
futures contract with respect to the same underlying commodity (``Daily
Contract'') to correct an inconsistency in the delivery timetable for
routine deliveries of Daily Contracts. Currently, the delivery
timetable in Section 6.2 provides that for Daily Contracts Exchange for
Physicals (``EFPs'') and Exchange for Swaps (``EFSs'') may be posted up
to one hour following the cessation of trading. This is inconsistent
with existing Section 3.6, which provides that with respect to Daily
Contracts, EFPs and EFSs may be posted up to thirty minutes following
the cessation of trading. The proposed amendment would change the
delivery timetable to be consistent with Section 3.6, which sets forth
the correct deadline.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendment to the
Delivery Procedures is 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.
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\5\ 15 U.S.C. 78q-1.
\6\ 15 U.S.C. 78q-1(b)(3)(F).
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As discussed above, the amendment would modify Part HH of the
Delivery Procedures in order to correct an inconsistency regarding the
deadline for submission of EFPs and EFSs with respect to Daily
Contracts. In ICE Clear Europe's view the amendment would thus
facilitate the clearing membership process, and related risk management
by the Clearing House. The amendments would therefore facilitate the
prompt and accurate clearing of cleared contracts and protect investors
and the public interest in the sound operations of the Clearing House,
consistent with the requirement s of Section 17A(b)(3)(F).\7\ Further,
the amendment will not affect the safeguarding of securities and funds
in the custody or control of the Clearing House or for which it is
responsible, within the meaning Section 17A(b)(3)(F).\8\
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\7\ 15 U.S.C. 78q-1(b)(3)(F).
\8\ 15 U.S.C. 78q-1(b)(3)(F).
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The proposed amendment is also consistent with relevant provisions
of Rule 17Ad-22.\9\ Rule 17Ad-22(e)(10) \10\ 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.'' The proposed amendment, which would correct an
inconsistency regarding the deadline for submission of EFPs and EFSs
with respect to Daily Contracts, would not otherwise change the
delivery terms and conditions for the Daily Contracts or otherwise
affect the ICE Clear Europe's existing financial resources, risk
management, systems and operational arrangements supporting delivery.
The amendment thus appropriately clarifies the role and
responsibilities of the Clearing House and Clearing Members with
respect to physical delivery. As a result, ICE Clear Europe believes
the amendment is consistent with the requirements of Rule 17Ad-
22(e)(10).\11\
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\9\ 17 CFR 240.17Ad-22.
\10\ 17 CFR 240.17Ad-22(e)(10).
\11\ 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 amendment would have
any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
amendment to the Delivery Procedures is intended to correct an
inconsistency in the delivery timetable for routine deliveries of Daily
Contracts. ICE Clear Europe does not believe that the amendment 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 amendment 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 \12\ and paragraph (f) of Rule 19b-4 \13\
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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\12\ 15 U.S.C. 78s(b)(3)(A).
\13\ 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#0f7d7a636a226c6062626a617b7c4f7c6a6c21686079"><span class="__cf_email__" data-cfemail="b4c6c1d8d199d7dbd9d9d1dac0c7f4c7d1d79ad3dbc2">[email protected]</span></a>. Please include
File Number SR-ICEEU-2022-013 on the subject line.
[[Page 36562]]
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-2022-013. 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-2022-013 and should be
submitted on or before July 8, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13043 Filed 6-16-22; 8:45 am]
BILLING CODE 8011-01-P
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