Notice2023-08308
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
Primary source
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Published
April 20, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 76 (Thursday, April 20, 2023)</title>
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[Federal Register Volume 88, Number 76 (Thursday, April 20, 2023)]
[Notices]
[Pages 24457-24458]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-08308]
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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)
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Futures Contract........................ 0.57 0.60
EFP/EFS/Block........................... 1.20 1.26
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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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>) or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#6a181f060f47090507070f041e192a190f09440d051c"><span class="__cf_email__" data-cfemail="bdcfc8d1d890ded2d0d0d8d3c9cefdced8de93dad2cb">[email protected]</span></a>. Please include
File Number SR-ICEEU-2023-008 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-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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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 <a href="https://www.theice.com/notices/Notices.shtml?regulatoryFilings">https://www.theice.com/notices/Notices.shtml?regulatoryFilings</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-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
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