Notice2023-13791
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to Amendments FTSE 100 Index Contracts and SARON Futures Contracts
Primary source
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Published
June 29, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 124 (Thursday, June 29, 2023)</title>
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[Federal Register Volume 88, Number 124 (Thursday, June 29, 2023)]
[Notices]
[Pages 42114-42116]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13791]
[[Page 42114]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97789; File No. SR-ICEEU-2023-016]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments FTSE 100 Index Contracts and SARON Futures Contracts
June 22, 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 June 9, 2023, ICE Clear Europe Limited 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 Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to amend certain clearing transaction fees for FTSE
100 index contracts and SARON futures contracts (the ``Contracts'').\5\
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\5\ Capitalized terms used but not defined herein have the
meanings specified in the IFEU Equity Index Contracts and SARON
Futures 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'') contracts, specifically the ICE
Futures Europe FTSE 100 Futures and Options Contracts, FTSE 100
Dividend Index Futures Contracts (collectively the ``Equity Index
Contracts'') and Three-Month SARON[supreg] Index Futures Contracts (the
``SARON Futures.'') The proposed fee changes are set forth in the
following tables:
------------------------------------------------------------------------
Existing Proposed new
clearing fee clearing fee
([pound]/ ([pound]/
contract) contract)
------------------------------------------------------------------------
CONTRACT--FTSE 100 Futures and Options Contract
------------------------------------------------------------------------
Outrights/Basis......................... 0.24 0.27
Block................................... 0.29 0.33
Block with Delayed Publication.......... 0.33 0.35
Cash Settlement fee (Futures)........... 0.35 0.40
Exercise/Assignment fee (Options)....... 0.35 0.40
Block fee cap (Options)................. 2,080 2,350
Block fee cap with Delayed Publication 2,800 3,100
(Options)..............................
Exercise/Assignment fee cap (Options)... 2,400 2,700
FTSE 100 Trade at Index Close Published. 0.28 0.31
FTSE 100 Trade at Index Close Delayed 0.35 0.38
Published..............................
------------------------------------------------------------------------
CONTRACT--FTSE 100 Dividend Index Futures Contract
------------------------------------------------------------------------
Outrights/Basis......................... 0.24 0.27
Block................................... 0.29 0.33
Block with Delayed Publication.......... 0.33 0.35
Cash Settlement fee..................... 0.35 0.40
------------------------------------------------------------------------
CONTRACT--SARON Index Futures
------------------------------------------------------------------------
Outrights/Basis......................... 0.40 0.48
Block................................... 0.40 0.48
Block with Delayed Publication.......... 0.56 0.68
Cash Settlement fee..................... 0.50 0.60
------------------------------------------------------------------------
The proposed fee changes are intended to become operative on July
1, 2023, subject to regulatory approval.
The proposed increases in clearing fees for the Equity Index
Contracts are intended to provide additional revenue to support the
ongoing investments by ICE Clear Europe in developing clearing for
derivative products on FTSE indexes, including the Equity Index
Contracts. The amendments are also intended to bring fees into line
with the fees of similar equity index contracts traded on other
European exchanges, which have increased in 2023.
The proposed increases in fees for SARON Futures are intended to
provide additional revenue to support ongoing clearing of the SARON
Futures, including to support marketing and business development
efforts relating to Swiss franc denominated interest rate derivatives
in light of the continued evolution of European markets as a result of
ongoing regulatory changes under EU law and other factors.
[[Page 42115]]
The amendments to the fees for both Equity Index Contracts and
SARON Futures will also generally provide additional revenue to support
Clearing House investments that enhance the services provided to market
participants, including through new clearing technology to augment the
existing clearing platform, reduce systems risk, and add additional
regulatory reporting related to MIFID and other regulations. Fee
increases also reflect the current inflationary macroeconomic
environment.
(b) Statutory Basis
ICE Clear Europe believes that the proposed fee amendments for the
Equity Index Contracts and SARON 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 Contracts. 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. ICE Clear Europe has determined that the increased clearing
fees are appropriate to support continued investments in clearing
operations. Specifically, the increased fees for the Equity Index
Contracts would support ongoing development of clearing of derivatives
on FTSE indices, and will be consistent with fees for other contract
for similar equity index futures contracts traded on other exchanges.
The increased fees for the SARON Futures would facilitate ongoing
market and business development with respect to that contract. ICE
Clear Europe has further determined that the increased fees would be
commensurate with the size and nature 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
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).
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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 Contracts 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 House, within the meaning of Section 17A(b)(3)(F) of the
Act.\10\
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\9\ 15 U.S.C. 78q-1(b)(3)(F).
\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 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
operations and infrastructure to support clearing activities for these
and other contracts. 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 Contracts. ICE 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 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 have not been
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any written comments received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change, Security-Based
Swap Submission and Advance Notice 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#3042455c551d535f5d5d555e4443704355531e575f46"><span class="__cf_email__" data-cfemail="780a0d141d551b1715151d160c0b380b1d1b561f170e">[email protected]</span></a>. Please include
file number SR-ICEEU-2023-016 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-2023-016. 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
[[Page 42116]]
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>.
Do not include personal identifiable information in submissions;
you should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-ICEEU-2023-016 and
should be submitted on or before July 20, 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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J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 2023-13791 Filed 6-28-23; 8:45 am]
BILLING CODE 8011-01-P
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