Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Liquidity Management Procedures and Investment Management Procedures, 62588-62590 [2021-24529]
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Federal Register / Vol. 86, No. 215 / Wednesday, November 10, 2021 / Notices
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.
VI. Conclusion
It is therefore ordered, pursuant to
Section 19(b)(2) of the Act,56 that the
proposed rule change, as modified by
Amendment Nos. 1, 2, and 3 (SR–
CBOE–2021–029), be, and hereby is,
approved on an accelerated basis.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.57
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021–24531 Filed 11–9–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–93523; File No. SR–ICEEU–
2021–020]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change Relating to
Amendments to the ICE Clear Europe
Liquidity Management Procedures and
Investment Management Procedures
November 4, 2021.
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 October
22, 2021, 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. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
khammond on DSKJM1Z7X2PROD with NOTICES
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The principal purpose of the
proposed amendments is for ICE Clear
Europe to amend its Liquidity
Management Procedures and Investment
Management Procedures to make certain
clarifications and updates.
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
56 Id.
57 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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(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 its Liquidity Management
Procedures to (i) reflect that cash
substitution requests may be as a source
of payment obligations relevant to
liquidity management, (ii) include
certain additional procedures and
requirements for the Clearing House
with respect to adding new accounts or
amending existing accounts with
counterparties and (iii) clarify how
intraday collateral is being monitored.
ICE Clear Europe also proposes to
amend its Investment Management
Procedures to (i) add additional detail
with respect to Maximum Issuer/
Counterparty Concentration Limits in
respect of reverse repurchase
agreements and (ii) add additional
concentration limits for investment of
customer funds of FCM/BD Clearing
Members.
I. Liquidity Management Procedures
The list of payment obligations
relating to liquidity management would
be revised to reflect explicitly that any
cash substitution requests by Clearing
Members would be a source of payment
obligations. The amendment does not
reflect a change in any Clearing House
practice or source of obligations but is
intended to make the list more
comprehensive.
A new section relating to special
considerations for account opening
would be added. The amendments
would provide that when the Clearing
House is adding new accounts or
amending existing accounts with
counterparties, the Treasury Department
would advise the Legal and Compliance
Departments in accordance with
relevant departmental procedures to
ensure that relevant banking agreements
are modified, any side or acknowledge
letters are obtained and any required
regulatory submissions are timely made,
as appropriate. Such scenarios would
include the opening of new accounts for
futures customer funds in accordance
with CFTC § 1.20(g).
Provisions relating to haircutting of
non-cash collateral and cash collateral
in currencies other than the required
currency would be amended to correct
the reference to the Credit Risk team
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Fmt 4703
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(not the Clearing Risk team) that
monitors the price of such assets. The
amendments would also state that the
price of such assets would be monitored
during the day against the applied
haircuts, as a clarification that reflects
current practice. The statement that the
Credit Risk team would call for
additional IM in the event of a shortfall
in the value of the collateral held would
be removed as unnecessary to be in the
Liquidity Management Procedures as
that is addressed in other existing
Clearing House policies.
Other technical, typographical and
formatting edits would be made.
II. Investment Management Procedures
In the Table of Authorised
Investments and Concentration Limits
for Cash from CMs and from Skin In The
Game (the ‘‘Table’’), the Maximum
Issuer/Counterparty Concentration
Limits applicable to reverse repurchase
agreements would be revised to clarify
that the numerical concentration limits
are based on total cash balance per
counterparty group, consistent with
existing practice. Additionally, a
footnote would be added to such section
to provide that breaches of those issuer
limits for reverse repurchase agreements
solely due to valuation differences or
operational failure/error will not be
considered as a breach of policy. Such
updates are to provide additional detail
about existing practices in order to
provide clarification and are not
intended to reflect any change such
practices.
The Table would also be updated to
add an additional concentration limits
for FCM customer funds. Specifically,
with respect to reverse repurchase
agreements, the Maximum Issuer/
Counterparty Concentration Limits
would be 25% of total FCM customer
cash balance per counterparty group.
The amendment is intended to
document an existing limitation based
on CFTC Rule 1.25.
(b) Statutory Basis
ICE Clear Europe believes that the
amendments to the Liquidity
Management Procedures and the
Investment Management Procedures are
consistent with the requirements of
Section 17A of the Act 3 and the
regulations thereunder applicable to it.
In particular, Section 17A(b)(3)(F) of the
Act 4 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
3 15
4 15
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
E:\FR\FM\10NON1.SGM
10NON1
khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 86, No. 215 / Wednesday, November 10, 2021 / Notices
applicable, derivative agreements,
contracts, and transactions, the
safeguarding of securities and funds in
the custody or control of the clearing
agency or for which it is responsible,
and the protection of investors and the
public interest.
The proposed amendments to the
Liquidity Management Procedures and
the Investment Management Procedures
are designed to update certain of the
Clearing House’s practices with respect
to the management of liquidity and
investments, respectively. The proposed
updates to the Liquidity Management
Procedures would more clearly certain
practices relating to monitoring of
collateral prices and enhance certain
account opening procedures. The
proposed updates to the Investment
Management Procedures would clarify
certain concentration limits relating to
investments of assets provided by
Clearing Members. The proposed
amendments thus enhance the overall
risk management of the Clearing House
and promote the accuracy and stability
of the Clearing House’s policies and
procedures and the prompt and accurate
clearance and settlement of cleared
contracts. The proposed amendments to
the Liquidity Management Procedures
and the Investment Management
Procedures are thus also generally
consistent with the protection of
investors and the public interest in the
safe operation of the Clearing House.
The updates to each of the Liquidity
Management Procedures and the
Investment Management Procedures
will also facilitate safe management of
the cash held by the Clearing House
from Clearing Member’s and their
customers, and thus enhance 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).5
The proposed revisions to the
Liquidity Management Procedures and
the Investment Management Procedures
are also consistent with relevant
provisions of Rule 17Ad–22. Rule
17Ad–22(e)(3)(i) 6 requires clearing
agencies to maintain a sound risk
management framework that identifies,
measures, monitors and manages the
range of risks that it faces. As described
above, the proposed updates to the
Liquidity Management Procedures are
intended to more clearly document and
enhance certain policies, practices and
considerations for monitoring and
reviewing liquidity risks. The proposed
updates to the Investment Management
Procedures would provide further
description with respect to the Clearing
House’s investments, as described
above, particularly with respect to
concentration limits applicable to
reverse repurchase agreements. The
proposed amendments would thus
strengthen the management of potential
counterparty investment risks, and risk
management more generally. In ICE
Clear Europe’s view, the amendments
are therefore consistent with the
requirements of Rule 17Ad–22(e)(3)(i).7
Rule 17A–22(e)(16) requires clearing
agencies to safeguard their own and
their ‘‘participants’ assets, minimize the
risk of loss and delay in access to these
assets, and invest such assets in
instruments with minimal credit,
market and liquidity risks.’’ 8 As
discussed above, the amendments to the
Liquidity Management Procedures are
intended to enhance account opening
procedures, which will facilitate
protection of assets of Clearing Members
and their customers provided to the
Clearing House. The proposed updates
to the Investment Management
Procedures would clarify Maximum
Issuer/Counterparty Concentration
Limits applied in connection with the
investment of assets of Clearing
Members and their customers. As such,
the revised Liquidity Management
Procedures and Investment Management
Procedures will help enable the Clearing
House to safeguard such assets and
minimize the risk of loss from liquidity
and investment risks, consistent with
the requirements of Rule 17Ad–
22(e)(16).9
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed documents would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The changes are
being proposed in order to update the
Liquidity Management Procedures and
the Investment Management Procedures
to provide clarifications and additional
details where necessary in order to
reflect existing practices and are not
intended to impose new requirements
on Clearing Members. The terms of
clearing are not otherwise changing. ICE
Clear Europe does not believe that
proposed amendments would adversely
affect competition among Clearing
Members or other market participants or
affect the ability of market participants
to access clearing generally. Therefore,
7 17
CFR 240.17 Ad–22(e)(3)(i).
CFR 240.17Ad–22(e)(16).
9 17 CFR 240.17Ad–22(e)(16).
5 15
U.S.C. 78q–1(b)(3)(F).
6 17 CFR 240.17 Ad–22(e)(3)(i).
VerDate Sep<11>2014
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8 17
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62589
ICE Clear Europe 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 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 written comments
received with respect to the proposed
rule change and adoption.
III. Date of Effectiveness of the
Proposed Rule Change, Security-Based
Swap Submission and 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 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–
ICEEU–2021–020 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–2021–020. 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
E:\FR\FM\10NON1.SGM
10NON1
62590
Federal Register / Vol. 86, No. 215 / Wednesday, November 10, 2021 / Notices
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–
2021–020 and should be submitted on
or before December 1, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021–24529 Filed 11–9–21; 8:45 am]
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #17260 and #17261;
Kentucky Disaster Number KY–00086]
Administrative Declaration of a
Disaster for the Commonwealth of
Kentucky
Small Business Administration.
Notice.
AGENCY:
ACTION:
This is a notice of an
Administrative declaration of a disaster
for the Commonwealth of Kentucky
dated 11/03/2021.
Incident: Severe Flash Flooding.
Incident Period: 07/29/2021 through
07/30/2021.
DATES: Issued on 11/03/2021.
Physical Loan Application Deadline
Date: 01/03/2022.
Economic Injury (EIDL) Loan
Application Deadline Date: 08/03/2022.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
10 17
CFR 200.30–3(a)(12).
VerDate Sep<11>2014
16:41 Nov 09, 2021
Jkt 256001
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street SW, Suite 6050,
Washington, DC 20416, (202) 205–6734.
SUPPLEMENTARY INFORMATION: Notice is
hereby given that as a result of the
Administrator’s disaster declaration,
applications for disaster loans may be
filed at the address listed above or other
locally announced locations.
The following areas have been
determined to be adversely affected by
the disaster:
Primary Counties: Nicholas
Contiguous Counties:
Kentucky: Bath, Bourbon, Fleming,
Harrison, Montgomery, Robertson
The Interest Rates are:
Percent
For Physical Damage:
Homeowners with Credit Available Elsewhere ......................
Homeowners without Credit
Available Elsewhere ..............
Businesses with Credit Available Elsewhere ......................
Businesses without Credit
Available Elsewhere ..............
Non-Profit Organizations with
Credit Available Elsewhere ...
Non-Profit Organizations without Credit Available Elsewhere .....................................
For Economic Injury:
Businesses & Small Agricultural
Cooperatives without Credit
Available Elsewhere ..............
Non-Profit Organizations without Credit Available Elsewhere .....................................
3.125
1.563
5.710
2.855
2.000
individuals to the Performance Review
Board for Career and Non-Career Senior
Executive Service members:
Erin M. Barclay, Coordinator for
Democratic Renewal, Office of the
Undersecretary for Civilian Security,
Democracy and Human Rights,
Department of State;
Hilary Batjer Johnson, Deputy
Coordinator, Bureau of
Counterterrorism, Department of State;
Jane Rhee, Deputy Assistant
Secretary, International Organization
Affairs, Department of State;
Keith A. Jones, Chief Information
Officer, Information Resource
Management; Department of State
Kerry Neal, Managing Director,
Comptroller and Global Financial
Services, Department of State;
Roger Carstens, Special Envoy, Office
of the Special Presidential Envoy for
Hostage Affairs, Department of State;
Shawn M. Pompian, Assistant Legal
Adviser, Office of the Legal Adviser,
Department of State.
and,
Sherry Hannah, Deputy Director,
Bureau of Budget & Planning,
Department of State.
Erica Spriggs,
Division Director, Executive Services and
Performance Management, Department of
State.
[FR Doc. 2021–24552 Filed 11–9–21; 8:45 am]
BILLING CODE 4710–15–P
2.000
DEPARTMENT OF STATE
[Public Notice: 11578]
2.855
Notice of Determinations; Culturally
Significant Objects Being Imported for
2.000 Exhibition—Determinations:
‘‘Fashioning an Empire: Safavid
The number assigned to this disaster
Textiles From the Museum of Islamic
for physical damage is 17260 6 and for
Art, Doha’’ Exhibition
economic injury is 17261 0.
SUMMARY: Notice is hereby given of the
The State which received an EIDL
following determinations: I hereby
Declaration # is Kentucky.
determine that certain objects being
(Catalog of Federal Domestic Assistance
imported from abroad pursuant to an
Number 59008)
agreement with their foreign owner or
Isabella Guzman,
custodian for temporary display in the
Administrator.
exhibition ‘‘Fashioning an Empire:
[FR Doc. 2021–24560 Filed 11–9–21; 8:45 am]
Safavid Textiles from the Museum of
Islamic Art, Doha’’ at the Arthur M.
BILLING CODE 8026–03–P
Sackler Gallery, Smithsonian
Institution, Washington, District of
Columbia, and at possible additional
DEPARTMENT OF STATE
exhibitions or venues yet to be
[Public Notice: 11575]
determined, are of cultural significance,
and, further, that their temporary
Department of State Performance
exhibition or display within the United
Review Board Members
States as aforementioned is in the
In accordance with section 4314(c)(4) national interest. I have ordered that
of 5 United States Code, the Department Public Notice of these determinations be
of State has appointed the following
published in the Federal Register.
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]]>Agencies
[Federal Register Volume 86, Number 215 (Wednesday, November 10, 2021)]
[Notices]
[Pages 62588-62590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24529]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-93523; File No. SR-ICEEU-2021-020]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change Relating to Amendments to the ICE
Clear Europe Liquidity Management Procedures and Investment Management
Procedures
November 4, 2021.
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 October 22, 2021, 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. 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.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed amendments is for ICE Clear
Europe to amend its Liquidity Management Procedures and Investment
Management Procedures to make certain clarifications and updates.
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 its Liquidity Management
Procedures to (i) reflect that cash substitution requests may be as a
source of payment obligations relevant to liquidity management, (ii)
include certain additional procedures and requirements for the Clearing
House with respect to adding new accounts or amending existing accounts
with counterparties and (iii) clarify how intraday collateral is being
monitored. ICE Clear Europe also proposes to amend its Investment
Management Procedures to (i) add additional detail with respect to
Maximum Issuer/Counterparty Concentration Limits in respect of reverse
repurchase agreements and (ii) add additional concentration limits for
investment of customer funds of FCM/BD Clearing Members.
I. Liquidity Management Procedures
The list of payment obligations relating to liquidity management
would be revised to reflect explicitly that any cash substitution
requests by Clearing Members would be a source of payment obligations.
The amendment does not reflect a change in any Clearing House practice
or source of obligations but is intended to make the list more
comprehensive.
A new section relating to special considerations for account
opening would be added. The amendments would provide that when the
Clearing House is adding new accounts or amending existing accounts
with counterparties, the Treasury Department would advise the Legal and
Compliance Departments in accordance with relevant departmental
procedures to ensure that relevant banking agreements are modified, any
side or acknowledge letters are obtained and any required regulatory
submissions are timely made, as appropriate. Such scenarios would
include the opening of new accounts for futures customer funds in
accordance with CFTC Sec. 1.20(g).
Provisions relating to haircutting of non-cash collateral and cash
collateral in currencies other than the required currency would be
amended to correct the reference to the Credit Risk team (not the
Clearing Risk team) that monitors the price of such assets. The
amendments would also state that the price of such assets would be
monitored during the day against the applied haircuts, as a
clarification that reflects current practice. The statement that the
Credit Risk team would call for additional IM in the event of a
shortfall in the value of the collateral held would be removed as
unnecessary to be in the Liquidity Management Procedures as that is
addressed in other existing Clearing House policies.
Other technical, typographical and formatting edits would be made.
II. Investment Management Procedures
In the Table of Authorised Investments and Concentration Limits for
Cash from CMs and from Skin In The Game (the ``Table''), the Maximum
Issuer/Counterparty Concentration Limits applicable to reverse
repurchase agreements would be revised to clarify that the numerical
concentration limits are based on total cash balance per counterparty
group, consistent with existing practice. Additionally, a footnote
would be added to such section to provide that breaches of those issuer
limits for reverse repurchase agreements solely due to valuation
differences or operational failure/error will not be considered as a
breach of policy. Such updates are to provide additional detail about
existing practices in order to provide clarification and are not
intended to reflect any change such practices.
The Table would also be updated to add an additional concentration
limits for FCM customer funds. Specifically, with respect to reverse
repurchase agreements, the Maximum Issuer/Counterparty Concentration
Limits would be 25% of total FCM customer cash balance per counterparty
group. The amendment is intended to document an existing limitation
based on CFTC Rule 1.25.
(b) Statutory Basis
ICE Clear Europe believes that the amendments to the Liquidity
Management Procedures and the Investment Management Procedures are
consistent with the requirements of Section 17A of the Act \3\ and the
regulations thereunder applicable to it. In particular, Section
17A(b)(3)(F) of the Act \4\ 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
[[Page 62589]]
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.
---------------------------------------------------------------------------
\3\ 15 U.S.C. 78q-1.
\4\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The proposed amendments to the Liquidity Management Procedures and
the Investment Management Procedures are designed to update certain of
the Clearing House's practices with respect to the management of
liquidity and investments, respectively. The proposed updates to the
Liquidity Management Procedures would more clearly certain practices
relating to monitoring of collateral prices and enhance certain account
opening procedures. The proposed updates to the Investment Management
Procedures would clarify certain concentration limits relating to
investments of assets provided by Clearing Members. The proposed
amendments thus enhance the overall risk management of the Clearing
House and promote the accuracy and stability of the Clearing House's
policies and procedures and the prompt and accurate clearance and
settlement of cleared contracts. The proposed amendments to the
Liquidity Management Procedures and the Investment Management
Procedures are thus also generally consistent with the protection of
investors and the public interest in the safe operation of the Clearing
House. The updates to each of the Liquidity Management Procedures and
the Investment Management Procedures will also facilitate safe
management of the cash held by the Clearing House from Clearing
Member's and their customers, and thus enhance 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).\5\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The proposed revisions to the Liquidity Management Procedures and
the Investment Management Procedures are also consistent with relevant
provisions of Rule 17Ad-22. Rule 17Ad-22(e)(3)(i) \6\ requires clearing
agencies to maintain a sound risk management framework that identifies,
measures, monitors and manages the range of risks that it faces. As
described above, the proposed updates to the Liquidity Management
Procedures are intended to more clearly document and enhance certain
policies, practices and considerations for monitoring and reviewing
liquidity risks. The proposed updates to the Investment Management
Procedures would provide further description with respect to the
Clearing House's investments, as described above, particularly with
respect to concentration limits applicable to reverse repurchase
agreements. The proposed amendments would thus strengthen the
management of potential counterparty investment risks, and risk
management more generally. In ICE Clear Europe's view, the amendments
are therefore consistent with the requirements of Rule 17Ad-
22(e)(3)(i).\7\
---------------------------------------------------------------------------
\6\ 17 CFR 240.17 Ad-22(e)(3)(i).
\7\ 17 CFR 240.17 Ad-22(e)(3)(i).
---------------------------------------------------------------------------
Rule 17A-22(e)(16) requires clearing agencies to safeguard their
own and their ``participants' assets, minimize the risk of loss and
delay in access to these assets, and invest such assets in instruments
with minimal credit, market and liquidity risks.'' \8\ As discussed
above, the amendments to the Liquidity Management Procedures are
intended to enhance account opening procedures, which will facilitate
protection of assets of Clearing Members and their customers provided
to the Clearing House. The proposed updates to the Investment
Management Procedures would clarify Maximum Issuer/Counterparty
Concentration Limits applied in connection with the investment of
assets of Clearing Members and their customers. As such, the revised
Liquidity Management Procedures and Investment Management Procedures
will help enable the Clearing House to safeguard such assets and
minimize the risk of loss from liquidity and investment risks,
consistent with the requirements of Rule 17Ad-22(e)(16).\9\
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\8\ 17 CFR 240.17Ad-22(e)(16).
\9\ 17 CFR 240.17Ad-22(e)(16).
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(B) Clearing Agency's Statement on Burden on Competition
ICE Clear Europe does not believe the proposed documents would have
any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purposes of the Act. The changes are
being proposed in order to update the Liquidity Management Procedures
and the Investment Management Procedures to provide clarifications and
additional details where necessary in order to reflect existing
practices and are not intended to impose new requirements on Clearing
Members. The terms of clearing are not otherwise changing. ICE Clear
Europe does not believe that proposed amendments would adversely affect
competition among Clearing Members or other market participants or
affect the ability of market participants to access clearing generally.
Therefore, ICE Clear Europe 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
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 written comments received with respect to the
proposed rule change and adoption.
III. Date of Effectiveness of the Proposed Rule Change, Security-Based
Swap Submission and 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 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-ICEEU-2021-020 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-2021-020. 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
[[Page 62590]]
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-2021-020 and should be
submitted on or before December 1, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2021-24529 Filed 11-9-21; 8:45 am]
BILLING CODE 8011-01-P
