[Federal Register Volume 80, Number 218 (Thursday, November 12, 2015)]
[Notices]
[Pages 70039-70042]
[FR Doc No: 2015-28689]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-76372; File No. SR-NYSEARCA-2015-105]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Provide That the
Co-Location Services Offered by the Exchange Include 40 Gigabit
Internet Protocol Network Connections in the Exchange's Data Center and
To Amend the Exchange's Price List To Implement Fees for the New
Services

November 5, 2015.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that, on October 28, 2015, NYSE Arca, Inc. (the ``Exchange'' or
``NYSE Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The Exchange proposes to change its rules to provide that the co-
location services offered by the Exchange include 40 gigabit (``Gb'')
Internet protocol (``IP'') network connections in the Exchange's data
center. The Exchange proposes to amend the NYSE Arca Options Fee
Schedule (the ``Options Fee Schedule'') and, through its wholly owned
subsidiary NYSE Arca Equities, Inc. (``NYSE Arca Equities''), the NYSE
Arca Equities Schedule of Fees and Charges for Exchange Services (the
``Equities Fee Schedule'' and, together with the Options Fee Schedule,
the ``Fee Schedules'') to implement fees for the new service. The text
of the proposed rule change is available on the Exchange's Web site at
www.nyse.com, at the principal office of the Exchange, and at the
Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization
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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to change its rules to provide that the co-
location \4\ services offered by the Exchange include 40 Gb IP network
connections in the Exchange's data center. The Exchange proposes to
amend the Fee Schedules to implement fees for the new service
effective.
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    \4\ The Exchange initially filed rule changes relating to its
co-location services with the Securities and Exchange Commission
(``Commission'') in 2010. See Securities Exchange Act Release No.
63275 (November 8, 2010), 75 FR 70048 (November 16, 2010) (SR-
NYSEArca-2010-100) (the ``Original Co-location Filing''). The
Exchange operates a data center in Mahwah, New Jersey (the ``data
center'') from which it provides co-location services to Users.
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    Currently, the Exchange's co-location services offer Users \5\
access to two local area networks available in the data center: The IP
network and the Liquidity Center Network (``LCN'').\6\ IP

network access is currently available in 1 and 10 Gb capacities. The
Exchange also offers 1, 10, and 40 Gb LCN network access and LCN 10 Gb
LX network access.\7\
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    \5\ For purposes of the Exchange's co-location services, a
``User'' means any market participant that requests to receive co-
location services directly from the Exchange. See Securities
Exchange Act Release No. 76010 (September 29, 2015), 80 FR 60197
(October 5, 2015) (SR-NYSEArca-2015-82). As specified in the Fee
Schedules, a User that incurs co-location fees for a particular co-
location service pursuant thereto would not be subject to co-
location fees for the same co-location service charged by the
Exchange's affiliates New York Stock Exchange LLC and NYSE MKT LLC.
See Securities Exchange Act Release No. 70173 (August 13, 2013), 78
FR 50459 (August 19, 2013) (SR-NYSEArca-2013-80).
    \6\ See Original Co-location Filing, at 70049 and Securities
Exchange Act Release No. 74219 (February 6, 2015), 80 FR 7899
(February 12, 2015) (SR-NYSEArca-2015-03) (notice of filing and
immediate effectiveness of proposed rule change to include IP
network connections).
    \7\ See Original Co-location Filing, at 70050 and Securities
Exchange Act Release No. 70887 (November 15, 2013), 78 FR 69897
(November 21, 2013) (SR-NYSEArca-2013-123) (notice of filing and
immediate effectiveness of proposed rule change to include LCN 10 Gb
LX connection).
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    The IP network and LCN provide Users with access to the Exchange's
trading and execution systems and to the Exchange's proprietary market
data products. The IP network also provides Users with access to away
market data products. There is greater latency in the transmission of
data between Users and the Exchange for the IP Network than for the
LCN. The IP network provides Users that do not need the lower latency
of the LCN with a less costly data center network option. Having
another data center network also provides Users with the option to
create redundancy in their infrastructure.
    The proposed rule change would allow Users to purchase 40 Gb IP
network connections in the data center. The offering of a 40 Gb IP
network connection in addition to the existing 1 and 10 Gb IP network
connections would provide a User more choices regarding the bandwidth
of its IP network connections, allowing it to select the option that
best corresponds to its needs and is most cost-effective for that User.
    The 40 Gb IP network connection is expected to be available no
later than April 15, 2016. The Exchange will announce the date that the
40 Gb IP network connection will be available through a customer
notice.
    The Exchange proposes to establish the following fees for 40 Gb IP
network connections:

------------------------------------------------------------------------
        Type of service            Description        Amount of charge
------------------------------------------------------------------------
IP Network Access.............  40 Gb circuit....  $10,000 per
                                                    connection initial
                                                    charge plus $17,000
                                                    monthly per
                                                    connection.
------------------------------------------------------------------------

    By comparison, the 1 Gb IP network connection costs $2,500 per
connection initial charge plus $2,500 monthly per connection and the 10
Gb IP network connection costs $10,000 per connection initial charge
plus $10,000 monthly per connection. The 40 Gb LCN circuit costs
$15,000 per connection initial charge plus $20,000 monthly per
connection.
    As is the case with all Exchange co-location arrangements, (i)
neither a User nor any of the User's customers would be permitted to
submit orders directly to the Exchange unless such User or customer is
a member organization, a Sponsored Participant or an agent thereof
(e.g., a service bureau providing order entry services); (ii) use of
the co-location services proposed herein would be completely voluntary
and available to all Users on a non-discriminatory basis; \8\ and (iii)
a User would only incur one charge for the particular co-location
service described herein, regardless of whether the User connects only
to the Exchange or to the Exchange and one or both of its
affiliates.\9\
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    \8\ As is currently the case, Users that receive co-location
services from the Exchange will not receive any means of access to
the Exchange's trading and execution systems that is separate from,
or superior to, that of other Users. In this regard, all orders sent
to the Exchange enter the Exchange's trading and execution systems
through the same order gateway, regardless of whether the sender is
co-located in the data center or not. In addition, co-located Users
do not receive any market data or data service product that is not
available to all Users, although Users that receive co-location
services normally would expect reduced latencies in sending orders
to, and receiving market data from, the Exchange.
    \9\ See SR-NYSEArca-2013-80, supra note 5 at 50459. The
Exchange's affiliates have also submitted the same proposed rule
change to propose the changes described herein. See SR-NYSE-2015-54
and SR-NYSEMKT-2015-90.
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    The proposed change is not otherwise intended to address any other
issues relating to co-location services and/or related fees, and the
Exchange is not aware of any problems that Users would have in
complying with the proposed change.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Sections 6(b)(5) of the Act,\11\ in particular, because
it is designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to, and
perfect the mechanisms of, a free and open market and a national market
system and, in general, to protect investors and the public interest
and because it is not designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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    \10\ 15 U.S.C. 78f(b).
    \11\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed 40 Gb IP network connection
is not designed to permit unfair discrimination between customers,
issuers, brokers, or dealers because it would make a service available
to Users that require the increased IP network bandwidth, but Users
that do not require the increased bandwidth could continue to request
an existing lower-bandwidth IP network connection. Users that require
lower latency levels may utilize LCN connections.
    The Exchange believes that the proposed service would remove
impediments to, and perfect the mechanisms of, a free and open market
and a national market system and, in general, protect investors and the
public interest because the offering of a 40 Gb IP network connection
in addition to the existing 1 and 10 Gb IP network connections would
provide a User more choices regarding the bandwidth of its IP network
connections, allowing it to select the option that best corresponds to
its needs and is most cost-effective for that User.
    The Exchange also believes that the proposed rule change is
consistent with Section 6(b)(4) of the Act,\12\ in particular, because
it provides for the equitable allocation of reasonable dues, fees, and
other charges among its member organizations, issuers and other persons
using its facilities and does not unfairly discriminate between
customers, issuers, brokers or dealers.
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    \12\ 15 U.S.C. 78f(b)(4).
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    Overall, the Exchange believes that the proposed fees for the
proposed 40 Gb IP network connection are reasonable because the
Exchange proposes to offer the service as a convenience to Users, but
in doing so will incur certain costs, including costs related to the
data center facility, hardware and equipment and costs related to
personnel required for initial installation and ongoing monitoring,

support and maintenance of such service.
    The Exchange further believes that the proposed change is
reasonable because the proposed fees directly relate to the level of
services provided by the Exchange and, in turn, received by the User.
In this regard, the fees proposed for 40 Gb IP network connections are
higher than, for example, the fees for 10 Gb IP network connections
because costs for the initial purchase and ongoing maintenance of the
40 IP network connections are generally higher than those of the lower-
bandwidth connections. However, these costs are not anticipated to be
four times higher than the existing 10 Gb IP network connection. The
Exchange therefore notes that while the proposed bandwidth of the 40 Gb
IP network connection is four times greater than the existing 10 Gb IP
connection, the proposed fees for the 40 Gb IP network connection are
significantly less than four times the fees for the 10 Gb IP
connection. Specifically, the proposed initial charge of $10,000 is the
same as the initial charge for the existing 10 Gb IP network connection
and the proposed monthly recurring charge of $17,000 is less than
double the $10,000 monthly charge for the existing 10 Gb IP network
connection. The Exchange believes that this supports a finding that the
proposed pricing is reasonable because the Exchange anticipates
realizing efficiencies as customers adopt higher-bandwidth connections,
and, in turn, reflecting such efficiencies in the pricing for such
connections.
    As with fees for existing co-location services, the fees proposed
herein would be charged only to those Users that voluntarily select the
40 Gb IP network connection, which would be available to all Users.
Accordingly, the Exchange believes that the proposed change is
equitable and not unfairly discriminatory because it will result in
fees being charged only to Users that voluntarily select to receive the
corresponding services and because those services will be available to
all Users. Furthermore, the Exchange believes that the services and
fees proposed herein are not unfairly discriminatory and are equitably
allocated because, in addition to the services being completely
voluntary, they are available to all Users on an equal basis (i.e., the
same products and services are available to all Users). All Users that
voluntarily select the proposed 40 Gb IP network service will be
charged the same amount for the service.
    For the reasons above, the proposed change would not unfairly
discriminate between or among market participants that are otherwise
capable of satisfying any applicable co-location fees, requirements,
terms and conditions established from time to time by the Exchange.
    Finally, the Exchange believes that it is subject to significant
competitive forces, as described below in the Exchange's statement
regarding the burden on competition.
    For these reasons, the Exchange believes that the proposal is
consistent with the Act.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\13\ the Exchange
believes that the proposed rule change will not impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because, in addition to the proposed service being
completely voluntary, it will be available to all Users on an equal
basis (i.e. the same products and services are available to all Users).
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    \13\ 15 U.S.C. 78f(b)(8).
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    The Exchange believes that allowing Users to purchase 40 Gb IP
network connections will not impose any burden on competition that is
not necessary or appropriate in furtherance of the purposes of the Act
because such service will be available to Users that require the
increased IP network bandwidth, but Users that do not require the
increased bandwidth could continue to request an existing lower-
bandwidth IP network connection. The offering of a 40 Gb IP network
connection in addition to the existing 1 and 10 Gb IP network
connections would provide a User more choices regarding the bandwidth
of its IP network connections, allowing it to select the option that
best corresponds to its needs and is most cost-effective for that User.
In addition, the Exchange believes that the proposed change will
enhance competition, in that The NASDAQ Stock Market LLC (``NASDAQ'')
similarly makes a 40 Gb fiber connection available to users of its co-
location facilities.\14\
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    \14\ See NASDAQ Rule 7034 for a description of NASDAQ's co-
location services.
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    Finally, the Exchange notes that it operates in a highly
competitive market in which market participants can readily favor
competing venues if they deem fee levels at a particular venue to be
excessive. In such an environment, the Exchange must continually
review, and consider adjusting, its services and related fees and
credits to remain competitive with other exchanges. For the reasons
described above, the Exchange believes that the proposed rule change
reflects this competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \15\ and Rule 19b-4(f)(6) thereunder.\16\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
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, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act and Rule 19b-
4(f)(6)(iii) thereunder.
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    \15\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \16\ 17 CFR 240.19b-4(f)(6).
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    A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest.
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    \17\ 17 CFR 240.19b-4(f)(6).
    \18\ 17 CFR 240.19b-4(f)(6)(iii).
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    At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \19\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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    \19\ 15 U.S.C. 78s(b)(2)(B).
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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_ADDRESS>Please include
File No. SR-NYSEARCA-2015-105 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 No. SR-NYSEARCA-2015-105. 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 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 filing also will be available
for inspection and copying at the principal office of the Exchange. 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 No. SR-NYSEARCA-2015-105, and should
be submitted on or before December 3, 2015.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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    \20\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-28689 Filed 11-10-15; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 162 (Tuesday, August 21, 2018)]
[Notices]
[Page 42340]
[FR Doc No: 2018-17958]

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SECURITIES AND EXCHANGE COMMISSION

[Securities Exchange Act of 1934; Release No. 34-83856/August 15, 2018]

Order Granting Petition for Review and Scheduling Filing of
Statements

In the Matter of Financial Industry Regulatory Authority, Inc.
For an Order Granting the Approval of Proposed Rule Change to Adopt
FINRA Rule 1113 (Restriction Pertaining to New Member Applications)
and to Amend the FINRA Rule 9520 Series (Eligibility Proceedings)
(File No. SR-FINRA-2010-056)

    This matter comes before the Securities and Exchange Commission
(``Commission'') on petition to review the approval, pursuant to
delegated authority, of the Financial Industry Regulatory Authority,
Inc. (``FINRA'') proposed rule change to adopt FINRA Rule 1113
(Restriction Pertaining to New Member Applications) and to amend the
FINRA Rule 9520 Series (Eligibility Proceedings).
    On November 15, 2010, the Commission issued a notice of filing of
the proposed rule change filed with the Commission pursuant to Section
19(b)(1) of the Securities Exchange Act of 1934 (``Exchange Act'') \1\
and Rule 19b-4 \2\ thereunder.\3\ The proposed rule change was
published for comment in the Federal Register on November 22, 2010.\4\
On February 18, 2011, after consideration of the record for the
proposed rule change, the Division of Trading and Markets
(``Division''), pursuant to delegated authority,\5\ approved the
proposed rule change (``Approval Order'').\6\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Exchange Act Release No. 63316 (Nov. 15, 2010), 75 FR
71166 (Nov. 22, 2010) (File No. SR-FINRA-2010-056).
    \4\ See Id.
    \5\ 17 CFR 200.30 3(a)(12).
    \6\ See Exchange Act Release No. 63933 (Feb. 18, 2011), 76 FR
10629 (Feb. 25, 2011).
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    On March 4, 2011, pursuant to Commission Rule of Practice 430,\7\
Manuel P. Asensio (``Asensio'') filed a petition for review of the
Approval Order. Pursuant to Commission Rule of Practice 431(e), the
Approval Order was stayed by the filing with the Commission of a notice
of intention to petition for review.\8\ Pursuant to Rule 431 of the
Rules of Practice,\9\ the petition for review of the Approval Order is
granted. Further, the Commission hereby establishes that any party to
the action or other person may file a written statement in support of
or in opposition to the Approval Order on or before September 5.
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    \7\ 17 CFR 201.430.
    \8\ 17 CFR 201.431(e).
    \9\ 17 CFR 201.431.
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    For the reasons stated above, it is hereby:
    Ordered that Asensio's petition for review of the Division's action
to approve the proposed rule change by delegated authority be Granted;
and
    It is further Ordered that any party or other person may file a
statement in support of or in opposition to the action made pursuant to
delegated authority on or before September 5.
    It is further Ordered that the Approval Order shall remain stayed
pending further order by the Commission.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-17958 Filed 8-20-18; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 47 (Monday, March 13, 2017)]
[Notices]
[Pages 13533-13535]
[FR Doc No: 2017-04813]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IC-32526; File No. 812-14624]

Jeffrey LLC; Notice of Application

March 7, 2017.
AGENCY: Securities and Exchange Commission (``Commission'').

ACTION: Notice of application for an order under section 6(c) of the
Investment Company Act of 1940 (the ``Act'') for an exemption from all
provisions of the Act and all rules and regulations thereunder.

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Summary of Application: Applicant requests an order for an exemption
from all provisions of the Act and all rules and regulations
thereunder, as Applicant is a private investment company wholly owned
and controlled by a single family.

Applicant: Jeffrey LLC (``Applicant'').

Filing Dates: The application was filed on March 11, 2016 and amended
on September 2, 2016, December 14, 2016, and February 9, 2017.

Hearing or Notification of Hearing: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving applicant with a copy of the request, personally
or by mail. Hearing requests should be received by the Commission by
5:30 p.m. on April 3, 2017, and should be accompanied by proof of
service on applicant, in the form of an affidavit or, for lawyers, a
certificate of service. Hearing requests should state the nature of the
writer's interest, the reason for the request, and the issues
contested. Persons who wish to be notified of a hearing may request
notification by writing to the Commission's Secretary.

ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
St. NE., Washington, DC 20549-1090. Applicant: Jeffrey LLC, 100 East
Broad Street, Suite 1700, Columbus, OH 43215.

FOR FURTHER INFORMATION CONTACT: James D. McGinnis, Senior Counsel, at
(202) 551-3025, or Holly Hunter-Ceci, Acting Assistant Chief Counsel,
at<PHONE_NUMBER> (Chief Counsel's Office, Division of Investment
Management).

SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or for an
applicant using the Company name box, at http://www.sec.gov/search/search.htm or by calling<PHONE_NUMBER>.

Applicant's Representations

    1. Applicant is a Delaware limited liability company. Applicant's
managing member is The Jeffrey Company, an Ohio corporation (``TJC'').
All of the outstanding shares of capital stock of TJC are owned by
trusts for descendants of Joseph A. Jeffrey (1836-1928) (``J.A.
Jeffrey''). Approximately 50% of the units of membership interest in
Applicant (``units'') are owned by TJC as the managing member, with the
remaining units being owned by trusts for descendants of J.A. Jeffrey.
100% of Applicant's units are owned directly or indirectly by trusts
for descendants of J.A. Jeffrey.
    2. J.A. Jeffrey created the Joseph A. Jeffrey Trust (the ``Trust'')
on May 6, 1914, for the benefit of his descendants, and transferred
virtually all of the TJC shares to the Trust. TJC was founded to
manufacture the world's first coal-mining machines. TJC sold its
operating assets to Dresser Industries in 1974 and became a pure
investment enterprise. TJC thereafter relied on an exception from the
definition of investment company pursuant to Section 3(c)(1) of the
Investment Company Act of 1940, as amended (the ``Act''). In 2002, the
Trust was divided into separate trusts, one for each current income
beneficiary (each an ``Individual Trust''), but still operating
pursuant to the terms of the instrument establishing the Trust. In
2009, in connection with the formation of Applicant, TJC contributed
marketable securities to Applicant in exchange for 100% of the units in
Applicant, and immediately distributed the non-managing member units to
TJC's shareholders. In 2010 and then again in 2011, TJC distributed
marketable securities to its shareholders, who in turn contributed
those securities to Applicant in exchange for additional units in
Applicant.
    3. TJC contributed to Applicant, as of December 31, 2016, 100% of
TJC's marketable securities and other assets (excluding its managing
member units in Applicant and any assets associated with TJC's deferred
compensation plans) in exchange for additional managing member units in
Applicant.\1\ Applicant states that the number of additional units in
Applicant issued to TJC as of December 31, 2016 was based on relative
fair market value at that time. As a result of the contribution,
Applicant holds essentially all of the family enterprise's investment
assets.
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    \1\ As a result of such contribution, virtually all of TJC's
assets consist of the managing member units in Applicant, which
Applicant has determined are not securities. Applicant has stated
that, as such, TJC itself can no longer rely on Section 3(c)(1) of
the Act and does require the relief requested by the application.
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    4. On January 17, 2017, the Trust terminated pursuant to its terms,
and the assets of each Individual Trust (substantially all of which
consist of units in Applicant and shares of TJC) became distributable
to the then-current

income beneficiary of such Individual Trust, after all outstanding
expenses and claims are satisfied. Upon the distribution of such
assets, Applicant will be owned 100% by descendants of J.A. Jeffrey,
either directly or through TJC.
    5. Applicant represents that, to date, Applicant has met the
requirements of Section 3(c)(1) of the Act. Applicant has 62 non-
managing members, each of which is an Individual Trust, plus TJC as its
sole managing member. Forty-eight of the 62 Individual Trusts are
beneficial owners within the meaning of the Act, having made
investments into Applicant in exchange for units in 2010 and 2011. The
remaining fourteen Individual Trusts received their non-managing member
units in Applicant involuntarily, after the 2011 investments were made
and pursuant to the operation of the Trust, in accordance with Rule 3c-
6 under the Act. These fourteen Individual Trusts collectively stepped
into the shoes of five former Individual Trusts that had made
investments into Applicant in 2010 and 2011. Thus, the 62 Individual
Trusts today represent 53 beneficial owners.\2\
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    \2\ Applicant states that TJC, as the sole managing member of
the Applicant, is not treated as a beneficial owner by Applicant
pursuant to guidance from the staff of the Division of Investment
Management at the Commission.
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    6. Applicant will limit its security holders to ``family clients,''
as defined under Rule 202(a)(11)(G)-1 (the ``Family Office Rule'')
under the Investment Advisers Act of 1940 (the ``Advisers Act''), with
J.A. Jeffrey being the ``common ancestor'' for this purpose (``Family
Clients''). Applicant further does not intend to offer to key employees
or their entities the opportunity to invest in Applicant unless a key
employee is also a ``family member,'' as defined under the Family
Office Rule (a ``Family Member''). Thus, Applicant's owners will
consist of a subset of Family Clients.
    7. Applicant would like to offer to such subset of Family Clients
the opportunity to invest in Applicant (subject to securities law
compliance, including complying with applicable federal and state
exemptions from registration of its securities). Applicant states that
the 100 beneficial owner limitation of Section 3(c)(1) of the Act
potentially would cause family friction by denying to many Family
Members the opportunity to invest in Applicant. Applicant states that,
as of the date of the Application, there are approximately 350 Family
Members.
    8. Units in Applicant have not been and will not be offered or sold
to the public. Under Applicant's limited liability company agreement,
sales or other transfers of units for value to any purchaser, other
than to Applicant itself, are prohibited. Transfers for value to
existing members or other Family Clients are prohibited.\3\ Applicant
states that, as a result, a market will never develop for units in
Applicant. Applicant states that the only exit strategies available to
a Family Client will be to surrender units for redemption by Applicant
at fair market value \4\ or to gift or contribute units to other Family
Clients.
---------------------------------------------------------------------------

    \3\ Applicant allows a very limited exception for estate
planning transfers for value, such as installment sales to a grantor
trust. Any such transfers will be made only to Family Clients.
Additionally, investors are permitted to pledge units as collateral
for a loan, but only if the pledge documents require, in lieu of
foreclosure or other enforcement action in the event of a default,
that the pledged units be redeemed by Applicant prior to any
transfer of economic or voting rights. In the event that units are
pledged, the party to which such units are pledged shall not receive
direct economic benefit from the units nor can such party directly
or indirectly vote the units.
    \4\ Investors are permitted to redeem their units in Applicant
at the end of each calendar quarter.
---------------------------------------------------------------------------

    9. TJC is the sole managing member of Applicant. TJC is managed by
a board of directors (the ``Board''). At all times, a majority of Board
directors will be Family Members; provided, however, that if by reason
of the death, disqualification or bona fide resignation of any director
or directors, a majority of the directors are not Family Members, the
vacancy or vacancies will be filled in order to reestablish such
majority within 90 days (consistent with Act Rule 10e-1(a)). The
directors are paid on the basis of fixed fees and expenses, and do not
receive any form of commission or performance-based compensation. None
of the directors is affiliated with Applicant's investment advisers.
All directors are elected annually, thereby providing an opportunity to
evaluate the continued contribution of each director on an annual
basis.
    10. Applicant has no employees of its own. Applicant has a
management agreement with Katahdin Asset Management LLC (the ``Family
Management Co.''). The Family Management Co. conducts the day-to-day
operations of Applicant with the Family Management Co.'s own employees,
subject to the direction of the Board. The Family Management Co. is
wholly owned and controlled by the same individual who is TJC's chief
executive officer, who also is a Family Member. Applicant states that,
because the Family Management Co.'s owner is both a Family Member and a
current income beneficiary of an Individual Trust, the Family
Management Co.'s interests are aligned with those of fellow owners of
Applicant. Applicant states that Applicant, TJC and the Family
Management Co. together function like a cooperative association for the
benefit of the owners.
    11. In addition to the Family Management Co., Applicant relies on
Commission-registered investment advisers in managing its investments,
subject to the oversight of the Board. Applicant states that currently,
substantially all of Applicant's assets are managed by six unrelated
investment advisers, all of which are registered with the Commission.
Applicant states that all investment management fees paid by Applicant
to these investment advisers are based on either a fixed or graduated
fee calculated as a percentage of assets under management. Applicant
further states that Applicant does not pay any performance-based fees.
    12. Applicant states that Applicant has provided detailed quarterly
and annual reports to investors, and held Board meetings with family
guests and frequent meetings with the current income beneficiaries of
the Individual Trusts. The financial statements of Applicant are
audited by a nationally recognized accounting firm annually.

Applicant's Legal Analysis

    1. Applicant is seeking an order pursuant to Section 6(c) of the
Act for an exemption from all of the provisions of the Act and all
rules and regulations thereunder, except as otherwise specified in the
application. Applicant submits that Section 3(c)(1) of the Act
evidences the intention of Congress to exclude ``private'' investment
companies from the scope of the Act. Under Section 6(c) of the Act, the
Commission may exempt any person, security, or transaction from any
provision of the Act, if and to the extent that such exemption is
necessary or appropriate in the public interest and consistent with the
protection of investors and the purposes fairly intended by the policy
and provisions of the Act. Applicant submits that the requested
exemption from all provisions of the Act and all rules and regulations
thereunder (except as otherwise specified in the application) meets
these standards, as Applicant is a private investment company wholly
owned and controlled by a single family.
    2. Applicant states that similarly situated companies typically may
rely on Section 3(c)(1) of the Act for an exclusion from registration
under the Act. Section 3(c)(1) excepts from the definition of
``investment company'' any issuer whose outstanding securities are

beneficially owned by not more than 100 persons and which is not making
and does not presently propose to make a public offering of its
securities. Applicant submits that the descendants of J.A. Jeffrey are
numerous and Applicant does not wish to exclude any Family Member from
investing in Applicant.
    3. Applicant submits that the exemption requested is necessary and
appropriate in the public interest and consistent with the protection
of investors and the purposes fairly intended by the policy and
provisions of the Act. Applicant further submits that the exemption
requested is consistent with relief granted by the Commission to other
private investment companies that have more than 100 beneficial owners
and that are substantially owned and controlled by a single family.
    4. Applicant submits that one of the key purposes of the Act is to
ensure that every investment company properly identifies and mitigates
conflicts of interest and legal, compliance, financial, and operational
risks. Applicant submits that the Board's structure and practice,
including its review of compliance with legal and regulatory
requirements, evaluation of operational risk management processes,
establishment of a Code of Ethics (addressing, among other things,
conflicts of interest) and provision of periodic reports to investors,
are designed to protect Applicant's investors. Applicant submits that
Applicant's ``co-op'' style, where no money is taken off the top for
management (i.e., management does not receive a carried interest or
other share of profits), no performance fees are paid, and management's
incentives otherwise are aligned with clients, provides further
protection. Applicant represents that its efforts to mitigate conflicts
of interest are at least as robust as those the Commission historically
has required in similar exemptive relief.

Applicant's Conditions

    Applicant agrees that the order of the Commission granting the
requested relief shall be subject to the following conditions, which
conditions shall continue for so long as Applicant seeks to rely on
such relief:
    1. Interests in Applicant have not been and will not be offered or
sold to the public. Applicant will neither admit as a new investor, nor
permit the assignment or transfer of any interest in Applicant to, any
individual or entity that is not a Family Client.
    2. Applicant at all times will be controlled by Family Members and/
or ``family entities'' (as defined under the Family Office Rule) that
are Family Clients.
    3. Applicant will not have as an investment adviser any investment
adviser other than (i) a Commission-registered investment adviser, (ii)
a ``family office'' as defined in the Family Office Rule or (iii) an
entity that has obtained an order from the Commission declaring it to
be a person not within the intent of the Advisers Act to the extent
that it cannot satisfy all of the conditions to be a ``family office'',
as defined in the Family Office Rule.
    4. A majority of the Board will consist of Family Members;
provided, however, that if by reason of the death, disqualification or
bona fide resignation of any director or directors, a majority of the
directors are not Family Members, the vacancy or vacancies will be
filled in order to reestablish such majority within 90 days (consistent
with Act Rule 10e-1(a) under the Act).
    5. Applicant will continue to hold annual meetings of its investors
for the purpose of electing Board members and transacting such other
business as may properly come before such meetings.
    6. The Board will meet no less frequently than quarterly to review
Applicant's investment portfolio to review compliance with all
applicable investment restrictions and policies.
    7. Applicant will not knowingly make available to any broker or
dealer registered under the Securities Exchange Act of 1934, as
amended, any financial information concerning Applicant for the purpose
of knowingly enabling such broker or dealer to initiate any regular
trading market in any interests in Applicant.
    8. Applicant will provide each investor in Applicant annual
financial statements audited by an independent public accountant.
    9. Applicant will comply with the provisions set forth in
subparagraphs (A)(i) and (B)(i) of Section 12(d)(1) of the Act as if
Applicant were an investment company relying on the exemption set forth
in Section 3(c)(1) of the Act.

    For the Commission, by the Division of Investment Management,
under delegated authority.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04813 Filed 3-10-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register: September 22, 2010 (Volume 75, Number 183)]
[Notices]
[Page 57830-57831]
[DOCID:fr22se10-125]

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

DEPARTMENT OF TRANSPORTATION

Pipeline and Hazardous Materials Safety Administration

Office of Hazardous Materials Safety; Notice of Applications for
Modification of Special Permit

AGENCY: Pipeline and Hazardous Materials Safety Administration (PHMSA),
DOT.

ACTION: List of Applications for Modification of Special Permits.

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

SUMMARY: In accordance with the procedures governing the application
for, and the processing of, special permits from the Department of
Transportation's Hazardous Material Regulations (49 CFR Part 107,
Subpart B), notice is hereby given that the Office of Hazardous
Materials Safety has received the applications described herein. This
notice is abbreviated to expedite docketing and public notice. Because
the sections affected, modes of transportation, and the nature of
application have been shown in earlier Federal Register publications,
they are not repeated here. Requests for modification of special
permits (e.g. to provide for additional hazardous materials, packaging
design changes, additional mode of transportation, etc.) are described
in footnotes to the application number. Application numbers with the
suffix ``M'' denote a modification request. These applications have
been separated from the new application for special permits to
facilitate processing.

DATES: Comments must be received on or before October 7, 2010.

ADDRESS COMMENTS TO: Record Center, Pipeline and Hazardous, Materials
Safety Administration, U.S. Department of Transportation, Washington,
DC 20590.
    Comments should refer to the application number and be submitted in
triplicate. If confirmation of receipt of comments is desired, include
a self-addressed stamped postcard showing the special permit number.

FOR FURTHER INFORMATION CONTACT: Copies of the applications are
available for inspection in the Records Center, East Building, PHH-30,
1200 New Jersey Avenue, Southeast, Washington, DC, or at http://
regulations.gov.
    This notice of receipt of applications for modification of special
permit is published in accordance with Part 107 of the Federal
hazardous materials transportation law (49 U.S.C. 5117(b); 49 CFR
1.53(b)).

    Issued in Washington, DC, on September 14, 2010.
Donald Burger,
Chief, Special Permits and Approval Branch.

                                          Modification Special Permits
----------------------------------------------------------------------------------------------------------------
                                                                      Regulation(s)     Nature of special permit
   Application No.          Docket No.             Applicant             affected                thereof
----------------------------------------------------------------------------------------------------------------
7951-M..............  ......................  ConAgra Foods,       49 CFR               To modify the special
                                               Naperville, IL.      173.306(b)(1);       permit to remove the
                                                                    178.33; 175.3.       requirement to carry a
                                                                                copy of the Special
                                                                                Permit on motor
                                                                                vehicles that transport
                                                                                these packages from
                                                                                paragraph 10.
10898-M.............  ......................  Hydac Corporation,   49 CFR 173.302.....  To modify the special
                                               Bethlehem, PA.                            permit to authorize
                                                                                additional accumulators
                                                                                both ASME and PED.
11993-M.............  ......................  Key Safety Systems,  49 CFR               To modify the special
                                               Inc, Lakeland, FL.   173.301(a)(1);       permit to add two new
                                                                    173.302a.            drawings and change the
                                                                                wording to say that all
                                                                                of drawings on file are
                                                                                authorized.
12277-M.............  ......................  ISGEC (Former        49 CFR 173.3;        To modify the special
                                               Grantee Indian       173.304.             permit to authorize a
                                               Sugar and General                         change to paragraph 7
                                               Engineering                               (b)(l) the minimum
                                               Corporation),                             burst pressure to 86.18
                                               Haryana.                                  bar (1250PSIG); change
                                                                                paragraph 7.(2)(l)
                                                                                hydrostatic test
                                                                                pressure 34.74 bar to
                                                                                (500 PSIG) instead of
                                                                                34.74 bar (500); and
                                                                                add a new drawing.
12629-M.............  ......................  TEA Technologies,    49 CFR 173.34(e)...  To modify the special
                                               Inc., Amarillo, TX.                       permit to add the
                                                                                retesting of DOT 107A
                                                                                cylinder (tubes) by
                                                                                means of acoustic
                                                                                emission (AE) and
                                                                                ultrasonic examination
                                                                                (UE) in lieu of
                                                                                hydrostatic testing.
12706-M.............  ......................  RAGASCO Raufoss....  49 CFR 173.34;       To modify the special
                                                                    173.201; 173.301;    permit to add a new
                                                                    173.304.             drawing and to change
                                                                                the Maximum Volume from
                                                                                24 liters to 34 liters
                                                                                in paragraph 7.a(1).
13998-M.............  ......................  3AL Testing Corp.,   49 CFR 172.203(a);   To modify the special
                                               Denver, CO.          172.302a(b)(2),(4)   permit to authorize the
                                                                    (5);                 use of the SPECTRO
                                                                    180.205(f)(g);       xSort for determining
                                                                    180.209(a),(b)(1)    the steel composition
                                                                    (iv).                of 3AA specification
                                                                                cylinders stamped as
                                                                                3A.
14206-M.............  ......................  Digital Wave         49 CFR 180.205.....  To modify the special
                                               Corporation                               permit to authorize the
                                               Centennial, CO.                           use of the SPECTRO
                                                                                xSort for determining
                                                                                the steel composition
                                                                                of 3AA specification
                                                                                cylinders stamped as
                                                                                3A.
14751-M.............  ......................  ExxonMobil, Mont     49 CFR 173.242.....  To modify the special
                                               Belvieu, TX.                              permit to add another
                                                                                drawing; change in
                                                                                HazardousMaterial from
                                                                                Division 4.2 to 4.3;
                                                                                remove in its entirely
                                                                                the maximum capacity:
                                                                                540 gallons (2047
                                                                                liters); and to Tare
                                                                                Mass to 3800lbs.

14908-M.............  ......................  Conocophillips       49 CFR 173.302(f)..  To reissue the special
                                               Alaska, Inc.,                             permit originally
                                               Anchorage, AK.                            issued on an emergency
                                                                                basis authorizing the
                                                                                transportation in
                                                                                commerce of compressed
                                                                                oxygen without rigid
                                                                                outer packaging when no
                                                                                other means of
                                                                                transportation exist.
14953-M.............  ......................  Applied              49 CFR               To modify the special
                                               Laboratories,        173.306(a)(3)(v).    permit to remove the
                                               Inc., Columbus, IN.                       requirement that a copy
                                                                                of the special permit
                                                                                to be carried aboard
                                                                                motor vehicles or rail
                                                                                freight used to
                                                                                transport packages.
14966-M.............  ......................  Vulcore Industrial   49 CFR 173.302 and   To modify the special
                                               LLC, Fort Wayne,     180.205.             permit to authorize a
                                               WI.                                       removable protective
                                                                                cover made of fire and
                                                                                water resistant
                                                                                materials to be applied
                                                                                around the cylinders
                                                                                for providing
                                                                                additional protection
                                                                                for the cylinders.
14996-M.............  ......................  Skydance             49 CFR 172.101       To reissued the special
                                               Helicopters of       Column (9B),         permit that was
                                               Northern Nevada,     172.204(c)(3),       originally issued as an
                                               Inc., Minden, NV.    173.27(b)(2) and     Emergency special
                                                                    175.30(a)(1).        permit to a permanent
                                                                                special and to
                                                                                authorize the addition
                                                                                of Division 2.1; 2.2;
                                                                                and 4.2; and Class 3;
                                                                                8; and 9 hazardous
                                                                                materials.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2010-23451 Filed 9-21-10; 8:45 am]
BILLING CODE 4909-60-M


   UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

        ANN ARBOR, MI 48105

April 10, 2007

         OFFICE OF

AIR AND RADIATION

MEMORANDUM

SUBJECT:	Lawnmower Aging Records – Round #2

FROM:	Cheryl Caffrey, Assessment and Standards Division

TO:		Docket EPA-HQ-OAR-2004-0008

The attached file contains maintenance records taken for round two of
lawnmower aging, for 10 lawnmowers and one garden tractor, performed at
Fox Auto Parts in Michigan.


[Federal Register Volume 85, Number 143 (Friday, July 24, 2020)]
[Notices]
[Pages 44948-44950]
[FR Doc No: 2020-16022]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89351; File No. SR-ICEEU-2020-011]

Self-Regulatory Organizations; ICE Clear Europe Limited (``ICE
Clear Europe''); Notice of Filing and Immediate Effectiveness of
Proposed Rule Changes Relating to Amendments to Delivery Fees on UK
Electricity Futures Contracts and Amendments to Clearing Fees of
Certain Natural Gas Spot and Natural Gas Daily Futures Contracts

July 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 July 15, 2020, 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 primarily prepared 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) \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.
---------------------------------------------------------------------------

    \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'') proposes rule
changes relating to (i) amendments to delivery fees on UK electricity
futures contracts and (ii) amendments to clearing fees of certain
natural gas spot and natural gas daily futures contracts. The proposed
amendments do not involve any changes to the ICE Clear Europe Clearing
Rules or Procedures.\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. 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 rule changes is for ICE Clear Europe to
(i) reduce the delivery fees associated with UK electricity futures to
better reflect the actual variable cost charged by the transmission
system operator through Elexon; \6\ and (ii) increase exchange and
clearing fees in combination with removing the cash settlement and
delivery charges for a number of natural gas spot and natural gas daily
futures contracts. Attached as Exhibit 5 is an attachment containing
tables listing the new fee schedules and a Circular in advance of the
proposed effective date. The new fees are intended to come into effect
on 01 August 2020 subject to regulatory approval. The proposed
revisions to the fees are described in detail as follows.
---------------------------------------------------------------------------

    \6\ Elexon is known as the balance and settlement code company
for the UK electricity market and is responsible for processing
payments between generators and suppliers after comparing the amount
they said they would consume with actual volumes (https://www.elexon.co.uk/).
---------------------------------------------------------------------------

    The fee currently charged for the delivery of the UK electricity
futures cleared by ICE Clear Europe (GBP0.00450/MWh) is nine times
higher than the actual variable costs for the delivery service provided
by the transmissions system operator through Elexon (GBP0.00050/MWh).
Accordingly, ICE Clear Europe is proposing to decrease the delivery fee
for the following products:

----------------------------------------------------------------------------------------------------------------
                                                                              Trading venue
          Product name                Product name              Type              (MIC)          Clearing venue
----------------------------------------------------------------------------------------------------------------
UBL............................  UK Base Electricity     Daily Future.....  IFEU.............  ICEU.
                                  Future (Gregorian).
UPL............................  UK Peak Electricity     Daily Future.....  IFEU.............  ICEU.
                                  Future (Gregorian).
----------------------------------------------------------------------------------------------------------------

    Please see fee schedule and proposed change below:

----------------------------------------------------------------------------------------------------------------
           Fee type               Trade type      Current fee    Proposed fee       Currency           UoM
----------------------------------------------------------------------------------------------------------------
Exchange fee.................  EFP/EFS/Block..         0.00050         0.00050  GBP............  MWh.
Clearing fee.................  EFP/EFS/Block..         0.00450         0.00450  GBP............  MWh.
Exchange fee.................  Futures........         0.00150         0.00150  GBP............  MWh.
Clearing fee.................  Futures........         0.00350         0.00350  GBP............  MWh.
Cash settlement..............  ...............             n/a             n/a  GBP............  MWh.
Deliveries...................  ...............        0.00450.         0.00050  GBP............  MWh.
----------------------------------------------------------------------------------------------------------------

    The proposed changes to ICE Clear Europe's exchange and clearing
fees in combination with removing the cash settlement and delivery
charges will apply to the following products:

----------------------------------------------------------------------------------------------------------------
                                                                              Trading venue
          Product name                Product name              Type              (MIC)          Clearing venue
----------------------------------------------------------------------------------------------------------------
TFE............................  Dutch TTF Gas Daily     Daily Future.....  NDEX.............  ICEU.
                                  Futures.
NBD............................  UK Natural Gas Daily    Daily Future.....  IFEU.............  ICEU.
                                  Future.
EZH............................  Belgian ZTP Gas Spot..  Spot.............  NDXS.............  ICEU.
EZL............................  Belgian ZTPL Gas Spot.  Spot.............  NDXS.............  ICEU.
ETT............................  TTF Gas Spot..........  Spot.............  NDXS.............  ICEU.
ENB............................  UK OCM Gas Spot.......  Spot.............  NDCM.............  ICEU.
----------------------------------------------------------------------------------------------------------------

    The proposal, which follows consultation with market participants,
involves removing the cash settlement and delivery charges for these
contracts and increasing the exchange and clearing fees (whilst
maintaining the existing ratio between execution and clearing).
    The table below sets out the current fees:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Current Fees
                                                         -----------------------------------------------------------------------------------------------
               Fees                      Trade type                            NDXS            NDXS            NDCM            NDCM
                                                               NDEX      ----------------------------------------------------------------      IFEU
                                                                               08-18           18-08           08-18           18-08
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           EUR/MWh
                                                         GBPp/therm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exchange fee......................  EFP/EFS/Block.......         0.00038             n/a             n/a             n/a             n/a         0.00025
Clearing fee......................  EFP/EFS/Block.......         0.00337             n/a             n/a             n/a             n/a         0.00225
Exchange fee......................  Futures.............         0.00113         0.00113         0.00375         0.00100         0.00300         0.00080
Clearing fee......................  Futures.............         0.00262         0.00262         0.00750         0.00200         0.00600         0.00170
Cash settlement...................  ....................             n/a             n/a             n/a             n/a             n/a         0.00050
Deliveries........................  ....................         0.00200             n/a             n/a             n/a             n/a         0.00500
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The table below sets out the proposed changes to the fees (with
changes in italics for ease of review):

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Proposed Fees
                                                         -----------------------------------------------------------------------------------------------
               Fees                      Trade type                            NDXS            NDXS            NDCM            NDCM
                                                               NDEX      ----------------------------------------------------------------      IFEU
                                                                               08-18           18-08           08-18           18-08
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           EUR/MWh
                                                         GBPp/therm
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exchange fee......................  EFP/EFS/Block.......         0.00125             n/a             n/a             n/a             n/a         0.00050
Clearing fee......................  EFP/EFS/Block.......         0.01125             n/a             n/a             n/a             n/a         0.00450
Exchange fee......................  Futures.............         0.00417         0.00417         0.00833         0.00167         0.00333         0.00170
Clearing fee......................  Futures.............         0.00833         0.00833         0.01667         0.00333         0.00667         0.00330
Cash settlement...................  ....................             n/a             n/a             n/a             n/a             n/a             n/a
Deliveries........................  ....................             n/a             n/a             n/a             n/a             n/a             n/a
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Please note that the fees on the website are in GBP/lot (=1,000
therms), whilst the fees in the filing are equal to 1/10 of this as are
expressed in GBPp (pence)/therm.
(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 \7\ and regulations thereunder applicable to it. ICE Clear
Europe's fees are imposed at the product level on a per transaction

basis (as are the applicable Exchange fees). As a result, the fees
apply equally to all market participants who trade/clear the Contracts.
ICE Clear Europe believes that the changes in fees provides appropriate
incentives and rewards to market participants for the use of the
Clearing House's clearing services for the Contracts. ICE Clear Europe
believes that the current delivery fee in relation to UK electricity
contracts could better reflect the actual variable cost charged by the
transmission system operator through Elexon, and therefore plans to
reduce the delivery fee. Following consultation with market
participants, ICE Clear Europe also believes that the current fees in
relation to the natural gas products should be increased, to properly
compensate ICE Clear Europe for the risks, costs and expenses of
clearing the Contracts. ICE Clear Europe believes that the increases in
the fees are relatively modest in size. ICE Clear Europe has determined
that the revised fees will provide a more appropriate balance between
the costs of clearing and expenses incurred by ICE Clear Europe. 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,\8\ and further do not
unfairly discriminate among such participants in their use of the
Clearing House, within the meaning of Section 17A(b)(3)(F) of the
Act.\9\
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1.
    \8\ 15 U.S.C. 78q-1(b)(3)(D). Under this provision, ``[a]
clearing agency shall not be registered unless the Commission
determines that--(D) The rules of the clearing agency provide for
the equitable allocation of reasonable dues, fees, and other charges
among its participants.''
    \9\ 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. As discussed
above, because fees are imposed on a per transaction basis at the
product level, the changes to the fees are applied equally to all those
market participants who trade and/or clear the Contracts. Although the
amendments with respect to the natural gas contracts may result in
higher fees for particular Clearing Members because of the higher fee
on specific products, ICE Clear Europe believes that the new fees would
be set at an appropriate level to better reflect the cost that the
Clearing House takes on by facilitating the relevant clearing services.
ICE Clear Europe does not believe that the amendments would adversely
affect the ability of such Clearing Members or other market
participants generally to access clearing services for the Contracts.
Further, since the revised fees will apply to all Clearing Members 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.

(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 pursuant to Section
19(b)(3)(A) \10\ of the Act and paragraph (f) of Rule 19b-4 \11\
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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    \10\ 15 U.S.C. 78s(b)(3)(A).
    \11\ 17 CFR 240.19b-4(f)(2).
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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, 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_ADDRESS>Please include
File Number SR-ICEEU-2020-011 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-2020-011. 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/notices/Notices.shtml?regulatoryFilings. 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-2020-011 and should be submitted on or before August 14, 2020.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-16022 Filed 7-23-20; 8:45 am]
BILLING CODE 8011-01-P