[Federal Register Volume 87, Number 219 (Tuesday, November 15, 2022)]
[Notices]
[Pages 68556-68558]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24768]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96274; File No. SR-ICEEU-2022-022]


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

November 8, 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 October 28, 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) 
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).
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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 GG of its Delivery Procedures to update 
certain documentation, timing and other requirements relating to 
delivery under ICE Futures Abu Dhabi Murban Crude Oil Futures Contracts 
(``Murban Crude Oil Futures Contracts'').

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 amend Part GG of its Delivery 
Procedures to clarify certain delivery specifications relating to 
Murban Crude Oil Futures Contracts. The proposed changes include 
amendments to the delivery timetable in respect of delivery of Murban 
Crude Oil Futures Contracts to modify certain time periods to be more 
consistent with underlying cash markets, at the request of market 
participants, and to make other drafting clarifications and 
improvements. Specifically, the amendments would extend the date by 
which Buyers would be required to send the Clearing House and Seller 
Delivery Range Nomination Form stating the Buyer's preferred three-
delay delivery range from the 5th calendar day of the month preceding 
the Delivery Period (or the following day if such 5th calendar day is 
not a Clearing Day) to the 25th calendar day prior to the first 
calendar day of the delivery month. In practice, the change will extend 
the deadline up to two days. In light of this extension, ICE Clear 
Europe does not believe it is necessary to provide a further extension 
if the relevant day is not a Clearing Day. The amendments would also 
move the deadline to 14:00 LPT on the relevant day rather than 16:00 
LPT. Such amendments are intended to align the deadline with that 
specified for the cash market in the Abu Dhabi National Oil Company's 
(ADNOC's) General Terms and Conditions for the Sale of Crude Oil/
Condensate and Liquefied Petroleum Gas (the ``ADNOC's GTCs'').\5\ 
Market participants have requested these changes to reduce the 
operational burden on Buyers of having different deadlines for the 
Murban Crude Oil Futures Contracts and the cash market. The timing 
updates would also be reflected in the delivery documentation summary.
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    \5\ ADNOC's General Terms and Conditions for the Sale of Crude 
Oil/Condensate and Liquefied Petroleum Gas is available at the 
following link: https://www.adnoc.ae/-/media/adnoc-v2/files/adnoc_crude-and-lpg_gtcs_january-2020-edition-final_v1.ashx?la=en&hash=C9551678CC5CBBBAB30DFE83A495800E8AD540A1.
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    The Clearing House also proposes to amend the delivery timetable to 
change the timing the finalization of the loading programme for the 
Delivery Period and the delivery range determination to the 15th 
calendar day prior to the first calendar day of the Delivery Month and 
the 15th calendar day prior to the first calendar cay of the Delivery 
Month +1

[[Page 68557]]

Clearing Day, respectively. Such amendments are also intended to align 
such timing with the timing specified in ADNOC's GTCs for the cash 
market. Such updates are also intended to ease the delivery operational 
burden on Sellers by harmonizing the delivery specifications applicable 
to Murban Crude Oil Futures Contracts under Part GG of the Delivery 
Procedure's with the requirements of ADNOC's GTCs in the cash market.
    The amendments would also make certain drafting corrections and 
clarifications. An incorrect reference in the delivery timetable to 
delivery range nomination under Section 4 of Part GG has been removed 
and a correct reference to vessel nomination has been added in the 
appropriate section of the delivery timetable. Additionally, the 
amendments would add to the portion of the delivery timetable that 
discusses finalization of the delivery range determination that the 
Terminal Operator would be able to shorten the delivery range from 
three consecutive Terminal Loading Days to two consecutive Terminal 
Loading Days at any time, provided that the Terminal Operator gives 
notice to the Buyer, Seller and the Clearing House. This change is 
consistent with the existing contractual specifications of the Murban 
Crude Oil Futures Contracts.
    Minor updates would be made to Section 4 of Part GG. The title 
preceding the table in such section would be changed from ``ICE Murban 
Crude Oil Delivery Vessel Nomination Table'' to ``ICE Murban Crude Oil 
Vessel Nomination Table'', for consistency with other documentation. 
Information regarding Clearing Days would also be removed from the 
section as unnecessary since such deadlines are calculated using 
calendar days and not Clearing Days.
    Other typographical and similar corrections would be made 
throughout Part GG.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments to Part GG 
of the Delivery Procedures 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)(F) of the Act \7\ 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. 
As discussed above, the proposed changes to Part GG of the Delivery 
Procedures are designed to more closely align the timing for certain 
delivery-related documentation and processes relating to Murban Crude 
Oil Futures Contracts with the underlying cash market terms and 
conditions. Other updates would be made to improve clarity and 
readability. The amendments do not otherwise change the terms and 
conditions of Murban Crude Oil Futures Contracts, and the contracts 
will continue to be cleared by ICE Clear Europe in the same manner as 
they are currently. In ICE Clear Europe's view, the amendments are thus 
consistent with the prompt and accurate clearance and settlement of 
cleared contracts and the protection of investors and the public 
interest. (ICE Clear Europe would not expect the amendments to affect 
the safeguarding of securities and funds in ICE Clear Europe's custody 
or control or for which it is responsible). Accordingly, the amendments 
satisfy the requirements of Section 17A(b)(3)(F).\8\
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    \6\ 15 U.S.C. 78q-1.
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
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    In addition, Rule 17Ad-22(e)(10) \9\ requires that each covered 
clearing agency ``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.'' As discussed above, the amendments would clarify certain 
delivery specifications for Murban Crude Oil Futures Contracts relating 
to the determination of delivery ranges and certain other documentation 
and timing matters, consistent with the ADNOC's GTCs. The amendments 
would not otherwise change the manner in which the contracts are 
cleared or in which delivery is made, as supported by ICE Clear 
Europe's existing financial resources, risk management, systems and 
operational arrangements. The amendments thus appropriately clarify the 
role and responsibilities of the Clearing House and Clearing Members 
with respect to physical delivery. As a result, ICE Clear Europe 
believes the amendments are consistent with the requirements of Rule 
17Ad-22(e)(10).\10\
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    \9\ 17 CFR 240.17Ad-22(e)(10).
    \10\ 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 amendments would 
have any impact, or impose any burden, on competition not necessary or 
appropriate in furtherance of the purposes of the Act. The amendments 
are being adopted to update and clarify the delivery specifications in 
Part GG of the Delivery Procedures in connection with Murban Crude Oil 
Futures Contracts, and will not otherwise affect the contract. ICE 
Clear Europe does not expect that the proposed changes will adversely 
affect access to clearing or the ability of Clearing Members, their 
customers or other market participants to continue to clear contracts. 
ICE Clear Europe also does not believe the amendments would materially 
affect the cost of clearing or otherwise impact competition among 
Clearing Members or other market participants or limit market 
participants' choices for selecting clearing services. Accordingly, ICE 
Clear Europe does not believe the amendments would impose any burden on 
competition not necessary or 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 \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.

[[Page 68558]]

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-2022-022 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-2022-022. 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-2022-022 and should be 
submitted on or before December 6, 2022.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-24768 Filed 11-14-22; 8:45 am]
BILLING CODE 8011-01-P