[Federal Register Volume 88, Number 36 (Thursday, February 23, 2023)]
[Notices]
[Pages 11488-11490]
[FR Doc No: 2023-03698]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-96943; File No. SR-ICEEU-2023-006]

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

February 16, 2023.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on February 6, 2023, ICE Clear Europe Limited (``ICE Clear Europe'' or
the ``Clearing House'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule changes described in
Items I, II and III below, which Items have been prepared primarily by
ICE Clear Europe. ICE Clear Europe filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and Rule 19b-4(f)(4)(ii)
thereunder,\4\ such that the proposed rule change was immediately
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).

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

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to amend Part Q of its White Sugar Delivery
Procedures to make certain clarifications around the origin of the
deliverable crop and certain matters relating to delivery notifications
and presentation of delivery documents.\5\
---------------------------------------------------------------------------

    \5\ Capitalized terms used but not defined herein have the
meanings specified in the Delivery Procedures or, if not defined
therein, the ICE Clear Europe Clearing Rules.
---------------------------------------------------------------------------

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, ICE Clear Europe included
statements concerning the purpose of and basis for the proposed rule
change and discussed any comments it received on the proposed rule
change. The text of these statements may be examined at the places
specified in Item IV below. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(a) Purpose
    ICE Clear Europe is proposing to amend Part Q of its Delivery
Procedures to clarify certain provisions relating to delivery
specifications for ICE Futures Europe Financial and Softs White Sugar
futures contracts, to be consistent with amendments that have been made
to the contract specifications under exchange rules. The proposed
amendments would provide that deliverable sugar under such contracts
must have been produced in a country included in the list of
deliverable countries of production maintained by the exchange,
consistent with exchange rules. Delivery would have to be made at an
eligible delivery port (as defined in exchange rules as a port located
in one of such countries that meets the requirements in exchange
rules).
    The amendments would update documentation and other requirements
under the delivery timetable. The amendments would clarify the relevant
Tender Day (which is the business day following the Last Trading Day).
The concept of Notice of Tender would be replaced with Delivery
Notification, to be consistent with exchange rules, and the amendments
would clarify that a separate notification must be provided for each
underlying client at each Delivery Port. The contents of the Delivery
Notification and manner of submission would also be specified. The
timing of allocations of white sugar to Buyers (and related
notifications) would be moved from after 10:30 LPT to after 14:00 LPT.
    Consistent with exchange rules, the concept of ``Insufficient
Seller'' would be revised to be a seller in respect of a Delivery Port
for which the minimum lot requirement under exchange rules is not
satisfied (and the concept of non-qualifying port would be removed).
Requirements for Insufficient Sellers to submit revised Delivery
Notifications would be clarified (including that relevant notifications
must be made to and from the Clearing House, instead of the exchange).
The amendments would add that revised Delivery Notifications that do
not meet a minimum Delivery Port lot requirement will be rejected, and
Insufficient Sellers would be required to submit a further revised
Delivery Notification meeting the relevant requirement. Where the
Insufficient Seller fails to do so, the Clearing House will determine
the Deliver Port from which tenders are to be made.
    The amendments would also clarify the delivery documentation to be
provided by the seller, including relevant certifications in accordance
with the contract terms, as well as procedures for rejection of
presented documents. The amendments would also provide that certain
related notifications are to be made to and from the Clearing House
(rather than the exchange), consistent with the role of the Clearing
House in the delivery process.
    Certain typographical corrections and similar non-substantive
drafting clarifications have been made in Part Q.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed amendments to Part Q of
the Delivery Procedures are consistent with the requirements of Section
17A of the Act \6\ and the regulations thereunder applicable to it. In
particular, Section 17A(b)(3)(F) of the Act \7\ requires, among other
things, that the rules of a clearing agency be designed to promote the
prompt and accurate clearance and settlement of securities transactions
and, to the extent applicable, derivative agreements, contracts, and
transactions, the safeguarding of securities and funds in the custody
or control of the clearing agency or for which it is responsible, and
the protection of investors and the public interest. The proposed
changes to the Delivery Procedures are designed to clarify ICE Clear
Europe's arrangements and delivery procedures relating to Financial and
Softs White Sugar futures contracts and ensure consistency with the
relevant contract specifications under exchange rules. Notably, the
amendments would reflect the requirement under exchange rules that
deliverable sugar be produced in one of the countries listed in the
list of deliverable countries of production maintained by the exchange.
In addition, the amendments clarify the timing of allocations by the
Clearing House and certain related delivery notification and delivery
documentation requirements. The contracts will otherwise continue to be
cleared by ICE Clear Europe in the same manner as they are currently.
In ICE Clear Europe's view, the amendments are thus consistent with the
prompt and accurate clearance and settlement of cleared contracts and
the protection of investors and the public interest. (ICE Clear Europe
would not expect the amendments to affect the safeguarding of
securities and funds in ICE Clear Europe's custody or control or for
which it is responsible). Accordingly, the amendments satisfy the
requirements of Section 17A(b)(3)(F).\8\
---------------------------------------------------------------------------

    \6\ 15 U.S.C. 78q-1.
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    In addition, Rule 17Ad-22(e)(10) \9\ requires that each covered
clearing agency ``establish and maintain transparent written standards
that state its obligations with respect to the delivery of physical
instruments, and establish and maintain operational practices that
identify, monitor and manage the risks associated with such physical
deliveries.'' As discussed above, the amendments would clarify the
delivery specifications for Financial and Softs White Sugar futures
contracts. The amendments would also clarify the obligations of the
Clearing House (as opposed to the exchange) in the notification and
delivery documentation process. The amendments would not otherwise
change the manner in which the contracts are cleared or in which
delivery is made, as supported by ICE Clear Europe's existing financial
resources, risk management, systems and operational arrangements. The
amendments thus clarify the role and responsibilities of the Clearing
House and Clearing Members with respect to physical delivery. As a
result, ICE Clear Europe believes the amendments are

consistent with the requirements of Rule 17Ad-22(e)(10).\10\
---------------------------------------------------------------------------

    \9\ 17 CFR 240.17Ad-22(e)(10).
    \10\ 17 CFR 240.17Ad-22(e)(10).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed amendments would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The proposed
amendments are being adopted to update and clarify the delivery
specifications in Part Q of the Delivery Procedures in connection with
White Sugar contracts. ICE Clear Europe does not expect that the
proposed changes will adversely affect access to clearing or the
ability of Clearing Members, their customers or other market
participants to continue to clear contracts. ICE Clear Europe also does
not believe the amendments would materially affect the cost of clearing
or otherwise impact competition among Clearing Members or other market
participants or limit market participants' choices for selecting
clearing services. Accordingly, ICE Clear Europe does not believe the
amendments would impose any burden on competition not necessary or
appropriate in furtherance of the purpose of the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments relating to the proposed 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 and Timing for
Commission Action

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments:

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml) or
     Send an email to [email protected]. Please include
File Number SR-ICEEU-2023-006 on the subject line.

Paper Comments:

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2023-006. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Europe and on ICE
Clear Europe's website at https://www.theice.com/clear-europe/regulation.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICEEU-2023-006 and should be
submitted on or before March 16, 2023.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
---------------------------------------------------------------------------

    \13\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-03698 Filed 2-22-23; 8:45 am]
BILLING CODE 8011-01-P