[Federal Register Volume 85, Number 59 (Thursday, March 26, 2020)]
[Notices]
[Pages 17139-17140]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06295]
[[Page 17139]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88433; File No. SR-ICEEU-2020-004]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing and Immediate Effectiveness of Proposed Rule Change Relating
to Amendments to the Finance Procedures (the ``Finance Procedures'')
March 20, 2020.
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 March 19, 2020, 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 and II 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)(6) \4\
thereunder, 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)(6).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
ICE Clear Europe Limited is proposing to amend the cash instruction
deadline for USD set out in Section 6.1(e) of the Finance Procedures to
be 11:45 Eastern time, rather than 16:45 London time, as set out in
Exhibit 5.\5\
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\5\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Clearing Rules (the
``Rules'').
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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
The purpose of the proposed amendment is to amend the cash
instruction deadline for USD cash in Section 6.1(e) of the Finance
Procedures to be 11:45 Eastern time instead of 16:45 London time. Under
most circumstances, 11:45 Eastern time is the same as 16:45 London
time. However, ICE Clear Europe is proposing the amendment to avoid an
unintended change in the applicable deadline as a result of the
different start dates for daylight savings time in the United States
and the United Kingdom. In the absence of the amendment, the temporary
change in time difference between the US and UK would cause the
deadline to move to 12:45 Eastern time for the period until summer time
commences in the UK.
The change would thus allow ICE Clear Europe to maintain its
current (Eastern time) deadline for USD instructions regardless of any
change in the time difference between local time in London and local
time in New York in connection with differences in dates for daylight
saving time in the US and UK. In ICE Clear Europe's view, the 11:45
a.m. deadline for USD cash instructions facilitates ICE Clear Europe's
ongoing USD cash management and investment activities, particularly in
circumstances where the market may be volatile.
(b) Statutory Basis
ICE Clear Europe believes that the proposed rule change is
consistent with the requirements of Section 17A of the Act \6\ and the
regulations thereunder applicable to it, including the standards under
Rule 17Ad-22.\7\ In particular, Section 17A(b)(3)(F) of the Act \8\
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. The proposed amendments would facilitate continued regular
settlement operations between the Clearing House and its Clearing
Members in USD by avoiding an unintended change in the USD instruction
deadline as a result of temporary changes in the time difference
between the US and the UK. The amendments would also facilitate ICE
Clear Europe's ongoing USD cash management and investment activities,
and help ensure that, particularly during times of market volatility,
the Clearing House would continue to have the operational capacity to
effect settlements with each Clearing Member. As such, the amendment
would promote the prompt and accurate clearance and settlement of
transactions. By facilitating the Clearing House's investment and cash
management activities, the amendments are also consistent with the
safeguarding of securities and funds in the custody or control of the
Clearing House or for which it is responsible, and will generally
further the protection of investors and the public interest.
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\6\ 15 U.S.C. 78q-1.
\7\ 17 CFR 240.17Ad-22.
\8\ 15 U.S.C. 78q-1(b)(3)(F).
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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 purpose of the Act. The amendments
are being proposed to maintain the usual USD cash instruction (Eastern
time) deadline notwithstanding temporary changes in the time difference
between the US and UK. As a result, ICE Clear Europe does not believe
the amendments would adversely affect competition among Clearing
Members, materially affect the cost of clearing, adversely affect
access to clearing in Contracts for Clearing Members or their
customers, or otherwise adversely affect competition in clearing
services. Accordingly, ICE Clear Europe does not believe that the
amendments 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 amendments have 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
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
[[Page 17140]]
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate if consistent with
the protection of investors and the public interest, provided that ICE
Clear Europe has given the Commission written notice of its intent to
file the proposed rule change at least five business days prior to the
date of filing of the proposed rule change or such shorter time as
designated by the Commission, it has become effective pursuant to
Section 19(b)(3)(A) of the Act and Rule 19b-4(f)(6) thereunder.\9\
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\9\ ICE Clear Europe has requested that the Commission waive the
five-day pre-filing requirement and the 30-day delayed operative
date under Rule 19b-4(f)(6)(iii) so that the proposed rule change
may become effective and operative upon filing with the Commission,
which the Commission has done. Moreover, for purposes only of these
waivers, the Commission has considered the proposed rule change's
impact on efficiency, competition, and capital formation. See 15
U.S.C. 78c(f).
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Because the Commission believes that the proposed rule change would
merely maintain the usual USD cash instruction deadline notwithstanding
temporary changes in the time difference between the US and UK, it
would promote the prompt and accurate clearance and settlement of
transactions by facilitating the ICEEU's investment and cash management
activities and be consistent with the obligation to safeguard
securities and funds in the custody or control of ICEEU or for which it
is responsible, and would generally further the protection of investors
and the public interest. Further, the Commission does not believe that
the proposed rule change would impose any new requirements on clearing
members it would not burden competition.
Additionally, because such a temporary change in time difference is
currently in effect, and will last until March 27, 2020, the Commission
believes that prompt implementation of the proposal change is necessary
and appropriate and that a 30-day delay would serve no purpose.
Further, the Commission believes that any delay in the operation of the
proposed rule change would be inconsistent with the goal of maintaining
the certainty of the current cash deadlines. Therefore, the Commission
believes that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest and designates the
proposed rule change as operative upon filing.\10\
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\10\ For these same reasons, the Commission waives the five-day
pre-filing requirement.
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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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
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-2020-004 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-2020-004. 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-2020-004 and should be
submitted on or before April 16, 2020.
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\11\ 17 CFR 200.30-3(a)(12).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06295 Filed 3-25-20; 8:45 am]
BILLING CODE 8011-01-P