[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)]
[Notices]
[Pages 11962-11964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03731]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80071; File No. SR-ICEEU-2017-001]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change 
Relating to Certain Charges and Rates of Return Applicable to Margin 
and Guaranty Fund Deposits

February 21, 2017.
    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 February 7, 2017, ICE Clear Europe Limited (``ICE Clear Europe'') 
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 changes pursuant to Section 19(b)(3)(A) 
of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ so that the proposal 
was effective upon filing with the Commission. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
---------------------------------------------------------------------------

    \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).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The principal purpose of the proposed rule change is for ICE Clear 
Europe to modify certain specified charges and rates of return 
applicable to

[[Page 11963]]

margin and guaranty fund deposits made by Clearing Members.

II. Self-Regulatory Organization'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. 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. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The purpose of the proposed rule change is for ICE Clear Europe to 
modify certain specified charges and rates of return applicable to 
margin and guaranty fund deposits made by Clearing Members. (ICE Clear 
Europe imposes a charge on Clearing Members for margin and guaranty 
fund deposits in the form of securities, and pays a return to Clearing 
Members on margin and guaranty fund deposits in the form of cash.) The 
amendments will increase the charge on deposits in the form of 
securities by 2.5 basis points across all account types, and reduce the 
rate of return on deposits in the form of cash by 2.5 basis points, as 
a result of an increase in the charge against the ICE Deposit Rate from 
5 basis points to 7.5 basis points.\5\ Attached as Exhibit 5 is a 
Circular to Clearing Members specifying the revised charges and rates 
of return for margin and guaranty fund deposits. (The Circular also 
restates certain application and annual fees, which have not been 
changed.) The proposed changes allow ICE Clear Europe to continue to 
cover its increased costs in relation to its treasury management 
activities and ensure that the rates of return offered remain 
competitive with other market infrastructures.
---------------------------------------------------------------------------

    \5\ Pursuant to a telephone conversation between staff in the 
Office of Clearance and Settlement of the Division of Trading and 
Markets and outside counsel for ICE Clear Europe, and subsequent 
email confirmation, this sentence has been amended by staff from the 
Office of Clearance and Settlement to delete language describing the 
increase in charges on deposits as being ``in general'' and to 
clarify that the reduction in the rate of return results from an 
increase in the charge against the ICE Deposit Rate to 7.5 basis 
points.
---------------------------------------------------------------------------

2. Statutory Basis
    ICE Clear Europe has determined that the charges and rates of 
return set forth in the circular are reasonable and appropriate for 
margin and guaranty fund deposits. In particular, ICE Clear Europe 
believes that the fees and rates of return have been set at an 
appropriate level given the costs and expenses to ICE Clear Europe in 
accepting, maintaining, holding and investing, as appropriate, such 
deposits. The charges and rates of return will apply to all Clearing 
Members. ICE Clear Europe believes that imposing such charges and rates 
of return thus provides for the equitable allocation of reasonable 
dues, fees, and other charges among its Clearing Members, within the 
meaning of Section 17A(b)(3)(D) of the Act.\6\ ICE Clear Europe 
therefore believes that the proposed rule change is consistent with the 
requirements of Section 17A of the Act and regulations thereunder 
applicable to it.
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed rule changes would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purpose of the Act. Although the 
changes may result in certain additional costs to Clearing Members, ICE 
Clear Europe believes that the revised fees and rates of return have 
been set at an appropriate level given the costs and expenses to ICE 
Clear Europe in accepting, maintaining, holding and investing, as 
appropriate, margin and guaranty fund deposits. ICE Clear Europe does 
not believe that the amendments would adversely affect the ability of 
such Clearing Members or other market participants generally to engage 
in cleared transactions or to access clearing. Since the revised 
charges and rates of return will apply to all Clearing Members, ICE 
Clear Europe further believes that the fees will not otherwise 
adversely affect competition among Clearing Members, adversely affect 
the market for clearing services, or limit market participants' choices 
for obtaining clearing services.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    Written comments relating to the proposed changes to the rules have 
not been solicited or received. ICE Clear Europe will notify the 
Commission of any written comments received by ICE Clear Europe.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(2) \8\ 
thereunder because the proposed rule change establishes a fee or other 
charge imposed by ICE Clear Europe on its Clearing Members, within the 
meaning of Rule 19b-4(f)(2). 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.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78s(b)(3)(A).
    \8\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to [email protected]. Please include 
File Number SR-ICEEU-2017-001 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-2017-001. 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 Web site (http://www.sec.gov/rules/sro.shtml). 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 Web site viewing and 
printing in the Commission's Public

[[Page 11964]]

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 Web site 
at https://www.theice.com/clear-europe/regulation#rule-filings.
    All comments received will be posted without change; the Commission 
does not edit personal identifying information from submissions. You 
should submit only information that you wish to make available 
publicly. All submissions should refer to File Number SR-ICEEU-2017-001 
and should be submitted on or before March 20, 2017.
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03731 Filed 2-24-17; 8:45 am]
 BILLING CODE 8011-01-P