[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]
-----------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
[[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\
---------------------------------------------------------------------------
\6\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Clearing Rules.
---------------------------------------------------------------------------
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:
---------------------------------------------------------------------------
\7\ ICE Futures Europe is also changing certain exchange fees
with respect to the IFEU Products at the same time.
---------------------------------------------------------------------------
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
(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.
---------------------------------------------------------------------------
\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 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:
[[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\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-20017 Filed 9-16-19; 8:45 am]
BILLING CODE 8011-01-P