[Federal Register Volume 88, Number 17 (Thursday, January 26, 2023)]
[Notices]
[Pages 5048-5050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01515]


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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96722; File No. SR-ICEEU-2023-001]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing and Immediate Effectiveness of Proposed Rule Change Relating 
to Amendments to Clearing Fees for ICE Futures Europe Gilt Futures and 
Options and Euribor Options Contracts

January 20, 2023.
    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 January 9, 2023, 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)(2) 
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.
---------------------------------------------------------------------------

    \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. 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 changes to certain of its clearing fees for ICE 
Futures Europe Gilt Futures and Options and Euribor Options 
contracts.\5\
---------------------------------------------------------------------------

    \5\ 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 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 increase certain clearing fees for 
ICE Futures Europe (``IFEU'') Gilt Futures and Options and Euribor 
Options contracts. The fee changes are intended to provide revenue to 
support the further development of IFEU's Gilt markets and bring fees 
related to these contracts in line with the fees of other government 
bond futures and options traded on other Exchanges. For Euribor 
options, the changes would be made to align fees with existing ICE 
Clear Europe clearing fees for the underlying Euribor futures.\6\ The 
amendments do not otherwise change the terms and conditions of the 
relevant contract.
---------------------------------------------------------------------------

    \6\ IFEU is contemporaneously increasing certain trading fees 
relating to these contracts, and is expected to announce such 
increases by circular in advance of implementation.
---------------------------------------------------------------------------

    Fees with respect to the Gilt contracts have not been changed since 
2017. The fee increases are intended to align fees for the Gilt 
contracts more closely with those of government bond futures and 
options traded on other exchanges. In addition, there is only limited 
open interest in certain Gilt contracts (particularly the short, medium 
and ultra-long contracts). The proposed fee increases (together with 
planned increases in trading fees at IFEU) are intended to provide 
revenue to support additional business development activity with 
respect to these contracts, including funding liquidity provider and 
other incentives that may be adopted in the future. In ICE Clear 
Europe's experience with similar contracts, such incentives will likely 
be needed in order to generate additional market activity and liquidity 
in contacts with limited existing open interest.
    With respect to Euribor options, the Clearing House proposes to 
increase the clearing fees to align with the underlying Euribor futures 
contracts. ICE Clear Europe believes that the changes will eliminate an 
unnecessary distinction between the cost of trading futures and 
options. ICE Clear Europe notes that clearing fees with respect to 
these contracts have not changed since ICE Clear Europe commenced 
clearing them in 2014.
    The fee tables below set forth the proposed clearing fee changes. 
The proposed new fees are intended to come into effect on February 1, 
2023, subject to regulatory approval. ICE Clear Europe intends, 
together with IFEU, to publish a Circular to inform market participants 
of the changes in advance of such proposed effective date.
Gilt Futures and Options Proposed Exchange and Clearing Fees
    Below is a table showing the existing and proposed clearing fees 
and a table showing the proposed amended Exchange and Clearing fees.
---------------------------------------------------------------------------

    \7\ Clearing fees applicable to deliveries would be unchanged. 
Fee information for deliveries is included in the table for 
completeness.
    \8\ Clearing fees applicable to futures contracts and futures/
basis block transactions would be unchanged. Fee information for 
these contracts is included for completeness.

[[Page 5049]]



------------------------------------------------------------------------
                                             Existing      Proposed new
                                           clearing fee    clearing fee
------------------------------------------------------------------------
Contract--Short, Medium, Long and Ultra-
 Long Gilts:
    Futures Contracts...................            0.20            0.24
    Futures Basis/Block.................            0.20            0.24
    Futures Block with Delayed                      0.34            0.36
     Publication........................
    Deliveries..........................            2.50        \7\ 2.50
    Options Contracts (Long Gilt only)..            0.20            0.24
    Options Block (Long Gilt only)......            0.20            0.24
    Options Block with Delayed                      0.34            0.36
     Publication (Long Gilt only).......
    Option Exercise (Long Gilt only)....            0.20            0.33
Contract--Euribor[supreg]:
    Futures Contracts...................            0.20        \8\ 0.20
    Futures Basis/Block.................            0.20            0.20
    Futures Block with Delayed                      0.34            0.36
     Publication........................
    Cash Settlement.....................            0.25            0.28
    Options Contracts...................            0.18            0.20
    Options Block.......................            0.18            0.20
    Options Block with Delayed                      0.34            0.36
     Publication........................
    Option Exercise.....................            0.25            0.28
------------------------------------------------------------------------

(b) Statutory Basis
    ICE Clear Europe believes that the proposed rule changes are 
consistent with the requirements of the Act, including Section 17A of 
the Act \9\ and regulations thereunder applicable to it. In particular, 
Section 17A(b)(3)(D) of the Act \10\ requires that ``[t]he rules of the 
clearing agency provide for the equitable allocation of reasonable 
dues, fees and other charges among its participants.'' ICE Clear Europe 
believes that its clearing fees, as proposed to be amended, would be 
reasonable and appropriate for the relevant Contracts. ICE Clear 
Europe's fees are imposed at the product level on a per transaction 
basis (as are the applicable Exchange fees), and would be generally 
applicable to market participants trading in the contracts. As set 
forth above, ICE Clear Europe is proposing to increase clearing fees 
for the relevant Gilt contracts in order to support further development 
of trading and liquidity in those contracts, in light of the lack of 
current open interest. ICE Clear Europe believes the higher fees will 
facilitate funding of liquidity and other incentives that will support 
the contract. The amended fees will also be consistent with the fees 
applicable to government bond futures contracts traded at other 
exchanges. ICE Clear Europe has determined that the increased fees 
would provide an appropriate balance between the costs of clearing for 
market participants and the expenses incurred by ICE Clear Europe in 
offering clearing of the relevant contracts, and permit greater support 
by ICE Clear Europe of clearing such products. As such, in ICE Clear 
Europe's view, the amendments are consistent with the equitable 
allocation of reasonable dues, fees and other charges among its 
Clearing Members and other market participants, within the meaning of 
Section 17A(b)(3)(D) of the Act.\11\
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 78q-1.
    \10\ 15 U.S.C. 78q-1(b)(3)(D).
    \11\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

    The proposed amendments are also consistent with the requirements 
of Section 17A(b)(3)(F) of the Act \12\ which requires, among other 
things, that ``[t]he rules of a clearing agency [. . .] are not 
designed to permit unfair discrimination in the admission of 
participants or among participants in the use of the clearing agency.'' 
As noted above, the fees, as proposed to be amended, would apply on a 
per transaction and would apply to market participants generally. 
Although ICE Clear Europe may use revenue from additional fees to 
support liquidity and other incentive arrangements for Gilt contracts, 
ICE Clear Europe believes that any such incentives that may be adopted 
will be appropriately tailored to support additional trading and 
liquidity in the contracts. As a result, the amendments would not 
result in any unfair discrimination among Clearing Members in their use 
of the Clearing House, within the meaning of Section 17A(b)(3)(F) of 
the Act.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78q-1(b)(3)(F).
    \13\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

(B) Clearing Agency'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 ICE 
Clear Europe is increasing certain clearing fees, as set forth herein, 
it believes such changes are appropriate to reflect the costs and 
expenses incurred by the Clearing House in clearing the relevant 
Contracts and are consistent with other contracts cleared at the 
Clearing House and similar contracts cleared on other venues. The 
amendments would also support appropriate liquidity and other incentive 
arrangements to further develop trading. ICE Clear Europe does not 
believe that the amendments would adversely affect the ability of 
Clearing Members or other market participants generally to access 
clearing services for the Contracts. Further, since the revised fees 
will be the base rate applicable to all Clearing Members and market 
participants that clear the products, ICE Clear Europe believes that 
the amendments would not otherwise affect competition among Clearing 
Members, adversely affect the market for clearing services or limit 
market participants' choices for obtaining clearing services. As a 
result, ICE Clear Europe does not believe the amendments would have any 
impact or impose any burden on competition that is not necessary or 
appropriate in furtherance of the purposes 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)

[[Page 5050]]

of the Act \14\ and paragraph (f) of Rule 19b-4 \15\ 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.
---------------------------------------------------------------------------

    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and 
arguments concerning the foregoing, including whether the proposed rule 
change, security-based swap submission or advance notice 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-2023-001 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-2023-001. 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 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-2023-001 and should be 
submitted on or before February 16, 2023.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\16\
---------------------------------------------------------------------------

    \16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------


Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-01515 Filed 1-25-23; 8:45 am]
BILLING CODE 8011-01-P