Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change, Security-Based Swap Submission, or Advance Notice Relating to ICC's Treasury Operations Policies and Procedures, 21911-21913 [2020-08211]
Download as PDF
<![CDATA[
Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Notices
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o Cynthia Roscoe, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: April 15, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice
[FR Doc. 2020–08337 Filed 4–17–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–88633; File No. SR–ICC–
2020–006]
Self-Regulatory Organizations; ICE
Clear Credit LLC; Notice of Filing of
Proposed Rule Change, SecurityBased Swap Submission, or Advance
Notice Relating to ICC’s Treasury
Operations Policies and Procedures
April 14, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 1 and
Rule 19b–4 2 notice is hereby given that
on April 8, 2020, ICE Clear Credit LLC
(‘‘ICC’’) filed with the Securities and
Exchange Commission the proposed
rule change, security-based swap
submission, or advance notice as
described in Items I, II and III below,
which Items have been prepared by ICC.
The Commission is publishing this
notice to solicit comments on the
proposed rule change, security-based
swap submission, or advance notice
from interested persons.
jbell on DSKJLSW7X2PROD with NOTICES
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change, Security-Based Swap
Submission, or Advance Notice
The principal purpose of the
proposed rule change is to revise the
ICC Treasury Operations Policies and
Procedures (‘‘Treasury Policy’’). These
revisions do not require any changes to
the ICC Clearing Rules (the ‘‘Rules’’).
1 15
2 17
U.S.C. 78s(b)(1).
CFR 240.19b–4.
VerDate Sep<11>2014
18:34 Apr 17, 2020
Jkt 250001
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice
In its filing with the Commission, ICC
included statements concerning the
purpose of and basis for the proposed
rule change, security-based swap
submission, or advance notice and
discussed any comments it received on
the proposed rule change, securitybased swap submission, or advance
notice. The text of these statements may
be examined at the places specified in
Item IV below. ICC has prepared
summaries, set forth in sections (A), (B),
and (C) below, of the most significant
aspects of these statements.
(a) Purpose
ICC proposes to revise its Treasury
Policy. Specifically, ICC proposes
clarification changes related to ICC’s
approval process for new banking
relationships, ICC’s minimum criteria
applicable to settlement banks, and
ICC’s backup settlement banks. ICC
believes that such revisions will
facilitate the prompt and accurate
clearance and settlement of securities
transactions and derivative agreements,
contracts, and transactions for which it
is responsible. ICC proposes to make
such changes effective following
Commission approval of the proposed
rule change. The proposed revisions are
described in detail as follows.
ICC proposes amendments to the
‘‘Direct Settlement’’ section of the ICC
Treasury Policy. With respect to
banking relationships, ICC proposes to
clarify that approval of the Credit
Review Subcommittee of the Participant
Review Committee (‘‘CRS’’) is required
before ICC may begin using the bank’s
services. The CRS is comprised of ICC
staff, including the ICC President, ICC
Chief Operating Officer, and
representatives from various
departments, and is tasked with
counterparty review responsibilities.
Further, ICC proposes to set forth the
minimum criteria applicable to ICC’s
settlement banks in the Treasury Policy,
which includes criteria related to
regulation and supervision, completion
of required documentation to allow ICC
to assess financial stability and credit/
counterparty risk, and operational
capability, among others. With respect
to settlement banks, ICC maintains one
primary banking relationship and two
backup banking relationships.
Currently, the Treasury Policy notes
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
21911
ICC’s primary banking relationship and
one backup banking relationship. The
proposed changes incorporate reference
to the second backup banking
relationship, which was inadvertently
excluded and does not represent a new
banking relationship.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act 3
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; to assure the
safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible; and to comply with the
provisions of the Act and the rules and
regulations thereunder. ICC believes
that the proposed rule change is
consistent with the requirements of the
Act and the rules and regulations
thereunder applicable to ICC, in
particular, to Section 17(A)(b)(3)(F),4
because ICC believes that the proposed
rule change will promote the prompt
and accurate clearance and settlement of
securities transactions, derivatives
agreements, contracts, and transactions,
and contribute to the safeguarding of
securities and funds associated with
security-based swap transactions in
ICC’s custody or control, or for which
ICC is responsible. The proposed
changes clarify ICC’s approval process
for new banking relationships, ICC’s
minimum criteria for its settlement
banks, and ICC’s backup settlement
banks. The clarifications related to the
approval process for new banking
relationships and the minimum criteria
for ICC’s settlement banks ensure that
ICC has clear and comprehensive
procedures for approving new banking
relationships and is following its
process for review and approval of new
banking relationships. The
incorporation of the second backup
banking relationship corrects an
omission to ensure that ICC’s policies
and procedures clearly and accurately
document ICC’s banking relationships.
The proposed updates thus ensure that
the documentation of ICC’s Treasury
Policy remains up-to-date, transparent,
and focused on clearly articulating the
policies and procedures used to support
ICC’s treasury functions, which
promotes the prompt and accurate
clearance and settlement of securities
transactions, derivatives agreements,
contracts, and transactions and
3 15
U.S.C. 78q–1(b)(3)(F).
4 Id.
E:\FR\FM\20APN1.SGM
20APN1
jbell on DSKJLSW7X2PROD with NOTICES
21912
Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Notices
contributes to the safeguarding of
securities and funds which are in the
custody or control of ICC or for which
it is responsible. As such, the proposed
rule change is designed to promote the
prompt and accurate clearance and
settlement of securities transactions,
derivatives agreements, contracts, and
transactions and to contribute to the
safeguarding of securities and funds
associated with security-based swap
transactions in ICC’s custody or control,
or for which ICC is responsible within
the meaning of Section 17A(b)(3)(F) of
the Act.5
In addition, the proposed rule change
is consistent with the relevant
requirements of Rule 17Ad–22.6 Rule
17Ad–22(b)(3) 7 requires ICC to
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to maintain
sufficient financial resources to
withstand, at a minimum, a default by
the two CP families to which it has the
largest exposures in extreme but
plausible market conditions. The
proposed changes enhance ICC’s ability
to manage its financial resources,
including by clearly articulating its
approval process for new banking
relationships and the minimum criteria
applicable to ICC’s settlement banks.
Such changes ensure financial health
and the ability to fulfill obligations by
ICC’s banking relationships, which
promotes and strengthens ICC’s own
financial condition and supports ICC’s
ability to maintain sufficient financial
resources to withstand, at a minimum,
a default by the two CP families to
which it has the largest exposures in
extreme but plausible market
conditions, consistent with the
requirements of Rule 17Ad–22(b)(3).8
Rule 17Ad–22(d)(3) 9 requires ICC to
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to hold assets in a
manner that minimizes risk of loss or of
delay in its access to them and to invest
assets in instruments with minimal
credit, market, and liquidity risks. The
proposed changes strengthen ICC’s
ability to safeguard assets and limit the
potential for loss or delay in access to
such assets by ensuring that ICC has
clear and comprehensive procedures
that describe the minimum criteria
applicable to ICC’s settlement banks and
the approval process for new banking
relationships. ICC believes that having
policies and procedures that clearly and
accurately document ICC’s treasury
functions are an important component
to the effectiveness of ICC’s treasury
operations, which promote ICC’s ability
to hold assets in a manner that
minimizes risk of loss or of delay in its
access to them and to invest assets in
instruments with minimal credit,
market, and liquidity risks. Such
changes are therefore reasonably
designed to meet the requirements of
Rule 17Ad–22(d)(3).10
Rule 17Ad–22(d)(5) 11 requires ICC to
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to employ money
settlement arrangements that eliminate
or strictly limit ICC’s settlement bank
risks and require funds transfers to ICC
to be final when effected. The proposed
changes enhance ICC’s ability to manage
and limit its credit and liquidity risk
arising from its settlement banks,
including by establishing the minimum
criteria applicable to ICC’s settlement
banks, including criteria related to
regulation and supervision, completion
of required documentation to allow ICC
to assess financial stability and credit/
counterparty risk, and operational
capability, among others, and by
clarifying that approval of the CRS is
required before ICC may begin using the
bank’s services, consistent with the
requirements of Rule 17Ad–22(d)(5).12
Rule 17Ad–22(d)(8) 13 requires ICC to
establish, implement, maintain and
enforce written policies and procedures
reasonably designed to have governance
arrangements that are clear and
transparent to fulfill the public interest
requirements in Section 17A of the
Act 14 applicable to clearing agencies, to
support the objectives of owners and
participants, and to promote the
effectiveness of ICC’s risk management
procedures. The proposed revisions
allow for feedback from, and
notification to, the CRS, which is
comprised of ICC staff, including the
ICC President, ICC Chief Operating
Officer, and representatives from
various departments, prior to using the
bank’s services. These governance
arrangements are clear and transparent,
such that information relating to the
assignment of responsibilities and the
requisite involvement of ICC personnel
is clearly documented, and also promote
the effectiveness of ICC’s risk
management procedures by detailing the
responsibilities of relevant stakeholders
in the review and approval of new
5 Id.
10 Id.
6 17
11 17
CFR 240.17Ad–22.
7 17 CFR 240.17Ad–22(b)(3).
8 Id.
9 17 CFR 240.17Ad–22(d)(3).
VerDate Sep<11>2014
18:34 Apr 17, 2020
CFR 240.17Ad–22(d)(5).
12 Id.
13 17
14 15
Jkt 250001
PO 00000
CFR 240.17Ad–22(d)(8).
U.S.C. 78q–1.
Frm 00091
Fmt 4703
Sfmt 4703
banking relationships, consistent with
the requirements of Rule 17Ad–
22(d)(8).15
(B) Clearing Agency’s Statement on
Burden on Competition
ICC does not believe the proposed
rule change would have any impact, or
impose any burden, on competition.
The proposed changes to ICC’s Treasury
Policy will apply uniformly across all
market participants. Therefore, ICC does
not believe the proposed rule change
imposes any burden on competition that
is inappropriate in furtherance of the
purposes of the Act.
(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change, Security-Based Swap
Submission, or Advance Notice
Received From Members, Participants or
Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice
and Timing for Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) By order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change, 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 (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2020–006 on the subject line.
15 17
E:\FR\FM\20APN1.SGM
CFR 240.17Ad–22(d)(8).
20APN1
Federal Register / Vol. 85, No. 76 / Monday, April 20, 2020 / Notices
Paper Comments
SMALL BUSINESS ADMINISTRATION
Send paper comments in triplicate to
Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
[Docket No. SBA–2020–0014]
All submissions should refer to File
Number SR–ICC–2020–006. 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change, security-based swap
submission, or advance notice that are
filed with the Commission, and all
written communications relating to the
proposed rule change, security-based
swap submission, or advance notice
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 Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/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–ICC–2020–006 and
should be submitted on or before May
11, 2020.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.16
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–08211 Filed 4–17–20; 8:45 am]
jbell on DSKJLSW7X2PROD with NOTICES
BILLING CODE 8011–01–P
16 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
18:34 Apr 17, 2020
Jkt 250001
Class Waiver of the Nonmanufacturer
Rule
U.S. Small Business
Administration.
ACTION: Notice of intent to waive the
Nonmanufacturer Rule for diabetic test
strips.
AGENCY:
The U.S. Small Business
Administration (SBA) is considering
granting a request for a class waiver of
the Nonmanufacturer Rule (NMR) for
diabetic test stripes under North
American Industry Classification
(NAICS) code 325413 and Product
Service Code (PSC) 6515. If granted, the
class waiver would allow otherwise
qualified regular dealers to supply the
waived item on certain small business
contracts, regardless of the business size
of the manufacturer.
DATES: Comments and source
information must be submitted by May
20, 2020.
ADDRESSES: You may submit comments
and source information via the Federal
Rulemaking Portal at https://
www.regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at https://www.regulations.gov,
please submit the information to Carol
Hulme, Attorney Advisor, Office of
Government Contracting, U.S. Small
Business Administration, 409 Third
Street SW, 8th Floor, Washington, DC
20416. Highlight the information that
you consider to be CBI and explain why
you believe this information should be
held confidential. SBA will review the
information and make a final
determination as to whether the
information will be published.
FOR FURTHER INFORMATION CONTACT:
Carol Hulme, Attorney Advisor, by
telephone at 202–205–6347; or by email
at Carol-Ann.Hulme@sba.gov.
SUPPLEMENTARY INFORMATION: Sections
8(a)(17) and 46 of the Small Business
Act (Act), 15 U.S.C. 637(a)(17) and 657s,
and SBA’s implementing regulations,
found at 13 CFR 121.406(b), require that
recipients of Federal supply contracts
provide the product of a small business
manufacturer or processor if the
recipient of the set-aside contract is not
the actual manufacturer or processor of
the product, This requirement is
commonly referred to as the
Nonmanufacturer Rule (NMR). 13 CFR
121.406(b). The NMR applies to a
contract issued as a small business setaside (except as stated below); a servicedisabled veteran-owned small business
SUMMARY:
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
21913
(SDVOSB) set-aside or sole-source
contract; a Historically Underutilized
Business Zone (HUBZone) set-aside or
sole source contract; a women-owned
small business (WOSB) or economically
disadvantaged women-owned small
business (EDWOSB) set-aside or sole
source contract; or 8(a) set-aside or sole
source contract; a partial set-aside; or a
set-aside of an order against a multiple
award contract. The NMR does not
apply to small business set-aside
acquisitions with an estimated value
between the micro-purchase threshold
and the simplified acquisition
threshold.
Sections 8(a)(17)(B)(iv)(II) and
46(a)(4)(B) of the Act authorize SBA to
waive the NMR for a ‘‘class of products’’
for which there are no small business
manufacturers or processors available to
participate in the Federal market. The
SBA defines ‘‘class of products’’ based
on a combination of (1) the six-digit
NAICS code, (2) the four-digit PSC, and
(3) a description of the class of products.
A waiver would not have any effect on
the requirements in 13 CFR
121.406(b)(1)(i) through (iii) or on
requirements external to the Act that
involve domestic sources of supply,
such as the Buy American Act, 41
U.S.C. 8301–8305, or the Trade
Agreements Act, 19 U.S.C. 2501 et. seq.
As implemented in SBA’s regulations
at 13 CFR 121.1202(c), in order to be
considered available to participate in
the Federal market for a class of
products, a small business manufacturer
must have submitted a proposal for a
contract solicitation or been awarded a
contract to supply the class of products
within the last 24 months.
SBA has received a request for a class
waiver for diabetic testing strips. The
applicable NAICS Code is 325413 and
the PSC is 6515 as there are no small
businesses that manufacturer this
product. A search of the Federal
marketplace revealed there are no small
business manufacturers that can
manufacture and supply this product to
the Federal government.
SBA invites the public to comment on
this pending request to waive the NMR
for diabetic testing strips. The public
may comment or provide source
information on any small business
manufacturers of this class of products
that are available to participate in the
Federal market. The public comment
period will run for 30 days after the date
of publication in the Federal Register.
More information on the NMR and
class waivers can be found at https://
www.sba.gov/contracting/contracting-
E:\FR\FM\20APN1.SGM
20APN1
]]>Agencies
[Federal Register Volume 85, Number 76 (Monday, April 20, 2020)]
[Notices]
[Pages 21911-21913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08211]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-88633; File No. SR-ICC-2020-006]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice Relating to ICC's Treasury Operations Policies and
Procedures
April 14, 2020.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
\1\ and Rule 19b-4 \2\ notice is hereby given that on April 8, 2020,
ICE Clear Credit LLC (``ICC'') filed with the Securities and Exchange
Commission the proposed rule change, security-based swap submission, or
advance notice as described in Items I, II and III below, which Items
have been prepared by ICC. The Commission is publishing this notice to
solicit comments on the proposed rule change, security-based swap
submission, or advance notice from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice
The principal purpose of the proposed rule change is to revise the
ICC Treasury Operations Policies and Procedures (``Treasury Policy'').
These revisions do not require any changes to the ICC Clearing Rules
(the ``Rules'').
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice
In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change,
security-based swap submission, or advance notice and discussed any
comments it received on the proposed rule change, security-based swap
submission, or advance notice. The text of these statements may be
examined at the places specified in Item IV below. ICC has prepared
summaries, set forth in sections (A), (B), and (C) below, of the most
significant aspects of these statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice
(a) Purpose
ICC proposes to revise its Treasury Policy. Specifically, ICC
proposes clarification changes related to ICC's approval process for
new banking relationships, ICC's minimum criteria applicable to
settlement banks, and ICC's backup settlement banks. ICC believes that
such revisions will facilitate the prompt and accurate clearance and
settlement of securities transactions and derivative agreements,
contracts, and transactions for which it is responsible. ICC proposes
to make such changes effective following Commission approval of the
proposed rule change. The proposed revisions are described in detail as
follows.
ICC proposes amendments to the ``Direct Settlement'' section of the
ICC Treasury Policy. With respect to banking relationships, ICC
proposes to clarify that approval of the Credit Review Subcommittee of
the Participant Review Committee (``CRS'') is required before ICC may
begin using the bank's services. The CRS is comprised of ICC staff,
including the ICC President, ICC Chief Operating Officer, and
representatives from various departments, and is tasked with
counterparty review responsibilities. Further, ICC proposes to set
forth the minimum criteria applicable to ICC's settlement banks in the
Treasury Policy, which includes criteria related to regulation and
supervision, completion of required documentation to allow ICC to
assess financial stability and credit/counterparty risk, and
operational capability, among others. With respect to settlement banks,
ICC maintains one primary banking relationship and two backup banking
relationships. Currently, the Treasury Policy notes ICC's primary
banking relationship and one backup banking relationship. The proposed
changes incorporate reference to the second backup banking
relationship, which was inadvertently excluded and does not represent a
new banking relationship.
(b) Statutory Basis
Section 17A(b)(3)(F) of the Act \3\ 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; to assure the safeguarding of securities and funds which
are in the custody or control of the clearing agency or for which it is
responsible; and to comply with the provisions of the Act and the rules
and regulations thereunder. ICC believes that the proposed rule change
is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to ICC, in particular, to Section
17(A)(b)(3)(F),\4\ because ICC believes that the proposed rule change
will promote the prompt and accurate clearance and settlement of
securities transactions, derivatives agreements, contracts, and
transactions, and contribute to the safeguarding of securities and
funds associated with security-based swap transactions in ICC's custody
or control, or for which ICC is responsible. The proposed changes
clarify ICC's approval process for new banking relationships, ICC's
minimum criteria for its settlement banks, and ICC's backup settlement
banks. The clarifications related to the approval process for new
banking relationships and the minimum criteria for ICC's settlement
banks ensure that ICC has clear and comprehensive procedures for
approving new banking relationships and is following its process for
review and approval of new banking relationships. The incorporation of
the second backup banking relationship corrects an omission to ensure
that ICC's policies and procedures clearly and accurately document
ICC's banking relationships. The proposed updates thus ensure that the
documentation of ICC's Treasury Policy remains up-to-date, transparent,
and focused on clearly articulating the policies and procedures used to
support ICC's treasury functions, which promotes the prompt and
accurate clearance and settlement of securities transactions,
derivatives agreements, contracts, and transactions and
[[Page 21912]]
contributes to the safeguarding of securities and funds which are in
the custody or control of ICC or for which it is responsible. As such,
the proposed rule change is designed to promote the prompt and accurate
clearance and settlement of securities transactions, derivatives
agreements, contracts, and transactions and to contribute to the
safeguarding of securities and funds associated with security-based
swap transactions in ICC's custody or control, or for which ICC is
responsible within the meaning of Section 17A(b)(3)(F) of the Act.\5\
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1(b)(3)(F).
\4\ Id.
\5\ Id.
---------------------------------------------------------------------------
In addition, the proposed rule change is consistent with the
relevant requirements of Rule 17Ad-22.\6\ Rule 17Ad-22(b)(3) \7\
requires ICC to establish, implement, maintain and enforce written
policies and procedures reasonably designed to maintain sufficient
financial resources to withstand, at a minimum, a default by the two CP
families to which it has the largest exposures in extreme but plausible
market conditions. The proposed changes enhance ICC's ability to manage
its financial resources, including by clearly articulating its approval
process for new banking relationships and the minimum criteria
applicable to ICC's settlement banks. Such changes ensure financial
health and the ability to fulfill obligations by ICC's banking
relationships, which promotes and strengthens ICC's own financial
condition and supports ICC's ability to maintain sufficient financial
resources to withstand, at a minimum, a default by the two CP families
to which it has the largest exposures in extreme but plausible market
conditions, consistent with the requirements of Rule 17Ad-22(b)(3).\8\
---------------------------------------------------------------------------
\6\ 17 CFR 240.17Ad-22.
\7\ 17 CFR 240.17Ad-22(b)(3).
\8\ Id.
---------------------------------------------------------------------------
Rule 17Ad-22(d)(3) \9\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to hold assets in a manner that minimizes risk of loss or of
delay in its access to them and to invest assets in instruments with
minimal credit, market, and liquidity risks. The proposed changes
strengthen ICC's ability to safeguard assets and limit the potential
for loss or delay in access to such assets by ensuring that ICC has
clear and comprehensive procedures that describe the minimum criteria
applicable to ICC's settlement banks and the approval process for new
banking relationships. ICC believes that having policies and procedures
that clearly and accurately document ICC's treasury functions are an
important component to the effectiveness of ICC's treasury operations,
which promote ICC's ability to hold assets in a manner that minimizes
risk of loss or of delay in its access to them and to invest assets in
instruments with minimal credit, market, and liquidity risks. Such
changes are therefore reasonably designed to meet the requirements of
Rule 17Ad-22(d)(3).\10\
---------------------------------------------------------------------------
\9\ 17 CFR 240.17Ad-22(d)(3).
\10\ Id.
---------------------------------------------------------------------------
Rule 17Ad-22(d)(5) \11\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to employ money settlement arrangements that eliminate or
strictly limit ICC's settlement bank risks and require funds transfers
to ICC to be final when effected. The proposed changes enhance ICC's
ability to manage and limit its credit and liquidity risk arising from
its settlement banks, including by establishing the minimum criteria
applicable to ICC's settlement banks, including criteria related to
regulation and supervision, completion of required documentation to
allow ICC to assess financial stability and credit/counterparty risk,
and operational capability, among others, and by clarifying that
approval of the CRS is required before ICC may begin using the bank's
services, consistent with the requirements of Rule 17Ad-22(d)(5).\12\
---------------------------------------------------------------------------
\11\ 17 CFR 240.17Ad-22(d)(5).
\12\ Id.
---------------------------------------------------------------------------
Rule 17Ad-22(d)(8) \13\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to have governance arrangements that are clear and transparent
to fulfill the public interest requirements in Section 17A of the Act
\14\ applicable to clearing agencies, to support the objectives of
owners and participants, and to promote the effectiveness of ICC's risk
management procedures. The proposed revisions allow for feedback from,
and notification to, the CRS, which is comprised of ICC staff,
including the ICC President, ICC Chief Operating Officer, and
representatives from various departments, prior to using the bank's
services. These governance arrangements are clear and transparent, such
that information relating to the assignment of responsibilities and the
requisite involvement of ICC personnel is clearly documented, and also
promote the effectiveness of ICC's risk management procedures by
detailing the responsibilities of relevant stakeholders in the review
and approval of new banking relationships, consistent with the
requirements of Rule 17Ad-22(d)(8).\15\
---------------------------------------------------------------------------
\13\ 17 CFR 240.17Ad-22(d)(8).
\14\ 15 U.S.C. 78q-1.
\15\ 17 CFR 240.17Ad-22(d)(8).
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition. The proposed changes to
ICC's Treasury Policy will apply uniformly across all market
participants. Therefore, ICC does not believe the proposed rule change
imposes any burden on competition that is inappropriate in furtherance
of the purposes of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule
Change, Security-Based Swap Submission, or Advance Notice Received From
Members, Participants or Others
Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.
III. Date of Effectiveness of the Proposed Rule Change, Security-Based
Swap Submission, or Advance Notice and Timing for Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change, 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 (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-ICC-2020-006 on the subject line.
[[Page 21913]]
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-ICC-2020-006. 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 (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change, security-based
swap submission, or advance notice that are filed with the Commission,
and all written communications relating to the proposed rule change,
security-based swap submission, or advance notice 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 Credit and on ICE Clear Credit's website
at https://www.theice.com/clear-credit/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-ICC-2020-006 and should be
submitted on or before May 11, 2020.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
---------------------------------------------------------------------------
\16\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-08211 Filed 4-17-20; 8:45 am]
BILLING CODE 8011-01-P
