[Federal Register Volume 82, Number 37 (Monday, February 27, 2017)]
[Notices]
[Pages 11962-11964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-03731]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-80071; File No. SR-ICEEU-2017-001]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change
Relating to Certain Charges and Rates of Return Applicable to Margin
and Guaranty Fund Deposits
February 21, 2017.
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 February 7, 2017, ICE Clear Europe Limited (``ICE Clear Europe'')
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 changes pursuant to Section 19(b)(3)(A)
of the Act,\3\ and Rule 19b-4(f)(2) thereunder,\4\ so that the proposal
was 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. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The principal purpose of the proposed rule change is for ICE Clear
Europe to modify certain specified charges and rates of return
applicable to
[[Page 11963]]
margin and guaranty fund deposits made by Clearing Members.
II. Self-Regulatory Organization'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. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The purpose of the proposed rule change is for ICE Clear Europe to
modify certain specified charges and rates of return applicable to
margin and guaranty fund deposits made by Clearing Members. (ICE Clear
Europe imposes a charge on Clearing Members for margin and guaranty
fund deposits in the form of securities, and pays a return to Clearing
Members on margin and guaranty fund deposits in the form of cash.) The
amendments will increase the charge on deposits in the form of
securities by 2.5 basis points across all account types, and reduce the
rate of return on deposits in the form of cash by 2.5 basis points, as
a result of an increase in the charge against the ICE Deposit Rate from
5 basis points to 7.5 basis points.\5\ Attached as Exhibit 5 is a
Circular to Clearing Members specifying the revised charges and rates
of return for margin and guaranty fund deposits. (The Circular also
restates certain application and annual fees, which have not been
changed.) The proposed changes allow ICE Clear Europe to continue to
cover its increased costs in relation to its treasury management
activities and ensure that the rates of return offered remain
competitive with other market infrastructures.
---------------------------------------------------------------------------
\5\ Pursuant to a telephone conversation between staff in the
Office of Clearance and Settlement of the Division of Trading and
Markets and outside counsel for ICE Clear Europe, and subsequent
email confirmation, this sentence has been amended by staff from the
Office of Clearance and Settlement to delete language describing the
increase in charges on deposits as being ``in general'' and to
clarify that the reduction in the rate of return results from an
increase in the charge against the ICE Deposit Rate to 7.5 basis
points.
---------------------------------------------------------------------------
2. Statutory Basis
ICE Clear Europe has determined that the charges and rates of
return set forth in the circular are reasonable and appropriate for
margin and guaranty fund deposits. In particular, ICE Clear Europe
believes that the fees and rates of return have been set at an
appropriate level given the costs and expenses to ICE Clear Europe in
accepting, maintaining, holding and investing, as appropriate, such
deposits. The charges and rates of return will apply to all Clearing
Members. ICE Clear Europe believes that imposing such charges and rates
of return 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.\6\ ICE Clear Europe
therefore believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act and regulations thereunder
applicable to it.
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
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 and rates of return have
been set at an appropriate level given the costs and expenses to ICE
Clear Europe in accepting, maintaining, holding and investing, as
appropriate, margin and guaranty fund deposits. 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
charges and rates of return will apply to all 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 and Timing for
Commission Action
The foregoing rule change has become effective upon filing pursuant
to Section 19(b)(3)(A) \7\ of the Act and Rule 19b-4(f)(2) \8\
thereunder because the proposed rule change establishes a fee or other
charge imposed by ICE Clear Europe on its Clearing Members, within the
meaning of Rule 19b-4(f)(2). 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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:
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-2017-001 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-2017-001. 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 Web site (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 Web site viewing and
printing in the Commission's Public
[[Page 11964]]
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 Web site
at https://www.theice.com/clear-europe/regulation#rule-filings.
All comments received will be posted without change; the Commission
does not edit personal identifying information from submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-ICEEU-2017-001
and should be submitted on or before March 20, 2017.
---------------------------------------------------------------------------
\9\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-03731 Filed 2-24-17; 8:45 am]
BILLING CODE 8011-01-P