[Federal Register Volume 87, Number 118 (Tuesday, June 21, 2022)]
[Notices]
[Pages 36892-36894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13152]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-95104; File No. SR-ICEEU-2022-012]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to Part H of the ICE Clear Europe Delivery Procedures

June 14, 2022.
    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, 2022, 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 primarily 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)(4)(ii) 
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)(4)(ii).
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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 Part H of its Delivery Procedures 
(``Delivery Procedures'' or ``Procedures'') to correct a drafting 
inconsistency.

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)

[[Page 36893]]

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 amend Part H of the Delivery 
Procedures, which addresses delivery under the monthly ICE Endex German 
THE Natural Gas futures contract (``Monthly Contract''), and daily 
futures contract with respect to the same underlying commodity (``Daily 
Contract'') to correct an inconsistency in the delivery timetable for 
routine deliveries of Daily Contracts. Currently, the delivery 
timetable in Section 5.2 provides that for Daily Contracts Exchange for 
Physicals (``EFPs'') and Exchange for Swaps (``EFSs'') may be posted up 
to one hour following the cessation of trading. This is inconsistent 
with existing Section 2.6, which provides that with respect to Daily 
Contracts, EFPs and EFSs may be posted up to thirty minutes following 
the cessation of trading. The proposed amendment would change the 
delivery timetable to be consistent with Section 2.6, which sets forth 
the correct deadline.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendment to the 
Delivery Procedures is consistent with the requirements of Section 17A 
of the Act \5\ and the regulations thereunder applicable to it. In 
particular, Section 17A(b)(3)(F) of the Act \6\ requires, among other 
things, that the rules of a clearing agency be designed to promote the 
prompt and accurate clearance and settlement of securities transactions 
and, to the extent applicable, derivative agreements, contracts, and 
transactions, the safeguarding of securities and funds in the custody 
or control of the clearing agency or for which it is responsible, and 
the protection of investors and the public interest.
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    \5\ 15 U.S.C. 78q-1.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    As discussed above, the amendment would modify Part H of the 
Delivery Procedures in order to correct an inconsistency regarding the 
deadline for submission of EFPs and EFSs with respect to Daily 
Contracts. In ICE Clear Europe's view the amendment would thus 
facilitate the clearing membership process, and related risk management 
by the Clearing House. The amendments would therefore facilitate the 
prompt and accurate clearing of cleared contracts and protect investors 
and the public interest in the sound operations of the Clearing House, 
consistent with the requirements of Section 17A(b)(3)(F).\7\ Further, 
the amendments will not affect the safeguarding of securities and funds 
in the custody or control of the Clearing House or for which it is 
responsible, within the meaning Section 17A(b)(3)(F).\8\
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    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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    The proposed amendment is also consistent with relevant provisions 
of Rule 17Ad-22.\9\ Rule 17Ad-22(e)(10) \10\ provides that, ``[e]ach 
covered clearing agency shall establish, implement, maintain and 
enforce written policies and procedures reasonable designed to, as 
applicable [. . .] establish and maintain transparent written standards 
that state its obligations with respect to the delivery of physical 
instruments, and establish and maintain operational practices that 
identify, monitor and manage the risks associated with such physical 
deliveries.'' The proposed amendment, which would correct an 
inconsistency regarding the deadline for submission of EFPs and EFSs 
with respect to Daily Contracts, would not otherwise change the 
delivery terms and conditions for the Daily Contracts or otherwise 
affect the ICE Clear Europe's existing financial resources, risk 
management, systems and operational arrangements supporting delivery. 
The amendment thus appropriately clarifies the role and 
responsibilities of the Clearing House and Clearing Members with 
respect to physical delivery. As a result, ICE Clear Europe believes 
the amendment is consistent with the requirements of Rule 17Ad-
22(e)(10).\11\
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    \9\ 17 CFR 240.17 Ad-22.
    \10\ 17 CFR 240.17Ad-22(e)(10).
    \11\ 17 CFR 240.17Ad-22(e)(10).
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(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed amendment would have 
any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The proposed 
amendment to the Delivery Procedures is intended to correct an 
inconsistency in the delivery timetable for routine deliveries of Daily 
Contracts. ICE Clear Europe does not believe that the amendment would 
adversely affect competition among Clearing Members, materially affect 
the cost of clearing, adversely affect access to clearing for Clearing 
Members or their customers, or otherwise adversely affect competition 
in clearing services. Accordingly, ICE Clear Europe does not believe 
that the amendment 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 \12\ and paragraph (f) of Rule 19b-4 \13\ 
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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    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 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

     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-2022-012 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-2022-012. 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

[[Page 36894]]

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-2022-012 and should be submitted 
on or before July 12, 2022.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
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    \14\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-13152 Filed 6-17-22; 8:45 am]
BILLING CODE 8011-01-P