[Federal Register Volume 84, Number 180 (Tuesday, September 17, 2019)]
[Notices]
[Pages 48970-48972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20017]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86937; File No. SR-ICEEU-2019-018]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change, as 
Modified by Partial Amendments No. 1 and No. 2, To Adopt Revised 
Clearing Fees

September 11, 2019.
    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 August 30, 2019, ICE Clear Europe Limited (``ICE Clear Europe'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change described in Items I, II and III below, which 
Items have been primarily 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) \4\ thereunder, so that the 
proposed rule change was effective upon filing with the Commission. On 
September 10, 2019, ICE Clear Europe filed Partial Amendment No. 1 and 
Partial Amendment No. 2 to the proposed rule change.\5\ The Commission 
is publishing this notice to solicit comments on the proposed rule 
change, as modified by Partial Amendment No. 1 and Partial Amendment 
No. 2 (hereafter referred to as ``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).
    \5\ ICE Clear Europe filed Partial Amendment No. 1 to provide 
certain additional clarifications and related background 
documentation on the proposed rule change, and ICE Clear Europe 
filed Partial Amendment No. 2 to append a redlined version of the 
proposed fees schedule for the IFEU Products as Exhibit 5 to the 
proposed rule change. Partial Amendment No. 1 and Partial Amendment 
No. 2 did not make any changes to the substance of the filing or the 
text of the proposed rule change.

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[[Page 48971]]

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The principal purpose of the proposed rule change is to revise 
clearing fees applicable to certain ICE Futures Europe Limited 
(``IFEU'') equities and UK energy products (``IFEU Products''). The 
revisions do not involve any changes to the ICE Clear Europe Clearing 
Rules or Procedures.\6\
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    \6\ Capitalized terms used but not defined herein have the 
meanings specified in 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. 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
    The purpose of the proposed rule change is for ICE Clear Europe to 
modify certain clearing fees relating to certain IFEU Products \7\ as 
set out below:
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    \7\ ICE Futures Europe is also changing certain exchange fees 
with respect to the IFEU Products at the same time.
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     IFEU Equities.
    [cir] FTSE 100 Options: The clearing fee will increase from GBP 
0.20 to GBP 0.21 per lot, the exercise/assignment fee is also 
increasing from GBP 0.20 to GBP 0.30, and the fee cap on the exercise 
and assignment fee (published and unpublished) is increasing from GBP 
1,500 to GBP 2,200.
    [cir] FTSE 100 Options (block only): The clearing fee will increase 
from GBP 0.25 to GBP 0.26 per lot and the delayed published clearing 
fee will increase from GBP 0.29 to GBP 0.30 per lot. The clearing fee 
cap for published transactions will increase from GBP 1,350 to GBP 
1,980 and the clearing fee cap for unpublished transactions will 
increase from GBP 1,620 to GBP 2,700. The exercise/assignment fee is 
also increasing from GBP 0.20 to GBP 0.30 and the fee cap on the 
exercise and assignment fee (published and unpublished) is increasing 
from GBP 1,500 to GBP 2,200.
    [cir] FTSE 250 Futures and Options (block only): The clearing fee 
will increase from GBP 0.12 to GBP 0.18 per lot and the delayed 
published clearing fee will increase from GBP 0.13 to GBP 0.27 per lot.
    [cir] FTSE 250 Futures and Options: The clearing fee will increase 
from GBP 0.09 to GBP 0.14 per lot and an exercise/assignment fee of GBP 
0.20 per lot is introduced.
     IFEU UK Electricity Futures: The clearing fee will 
increase from GBP 0.00157 to GBP 0.0035 per lot.
     IFEU UK Electricity Futures (exchange for physical/
exchange for swap/block): The clearing fee will increase from GBP 
0.00202 to GBP 0.0045 per lot.
    Attached [sic] as Exhibit 5 are the circulars listing the new fees 
relating to the IFEU Products and a redlined version of the proposed 
fees schedule for the IFEU Products. The relevant fee schedules 
relating to the IFEU Products will be updated and are available at: 
https://www.theice.com/fees. The new fees are expected to come into 
effect on October 1, 2019, for the IFEU Equities Futures and Options 
products, and on September 2, 2019, for the IFEU UK Electricity Futures 
products.
(b) Statutory Basis
    ICE Clear Europe has determined that the proposed fee changes set 
forth above are reasonable and appropriate. In particular, ICE Clear 
Europe believes that the fees have been set at an appropriate level 
given the costs and expenses to ICE Clear Europe in offering clearing 
of such IFEU Products, taking into account the investments ICE Clear 
Europe has made in clearing the markets for these products. The fees 
will apply to all F&O Clearing Members. ICE Clear Europe believes that 
imposing such charges 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.\8\ ICE Clear 
Europe therefore believes that the proposed rule change is consistent 
with the requirements of Section 17A of the Act \9\ and regulations 
thereunder applicable to it.
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    \8\ 15 U.S.C. 78q-1(b)(3)(D). Under this provision, ``[a] 
clearing agency shall not be registered unless the Commission 
determines that--(D) The rules of the clearing agency provide for 
the equitable allocation of reasonable dues, fees, and other charges 
among its participants.''
    \9\ 15 U.S.C. 78q-1.
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(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 have been set at an 
appropriate level given the costs and expenses to ICE Clear Europe in 
offering clearing of the IFEU Products. 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 fees will 
apply to all F&O 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

    The foregoing rule change has become effective upon filing pursuant 
to Section 19(b)(3)(A) \10\ of the Act and Rule 19b-4(f)(2) \11\ 
thereunder because it establishes a fee or other charge imposed by ICE 
Clear Europe on its Clearing Members. Specifically, the proposed rule 
changes will establish fees to be paid by Clearing Members to ICE Clear 
Europe in connection with the clearing of certain IFEU Products. 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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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
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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:

[[Page 48972]]

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-2019-018 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-2019-018. 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 (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 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 https://www.theice.com/clear-europe/regulation. 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-2019-018 and should be 
submitted on or before October 8, 2019.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-20017 Filed 9-16-19; 8:45 am]
 BILLING CODE 8011-01-P