Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Clearing Membership Procedures, 56110-56112 [2022-19676]
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Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
respondents, and thus, a corresponding
estimated burden of zero hours for new
respondents. Thus, the total compliance
burden per year is approximately 5,640
burden hours (2,350 hours + 3,290
hours).
The retention period for the
recordkeeping requirement for the
information, reports and records
required under Rule 17h–1T is not less
than three years. There is no specific
retention period or recordkeeping
requirement for Rule 17h–2T. The
collection of information is mandatory.
All information obtained by the
Commission pursuant to the provisions
of Rules 17h–1T and 17h–2T from a
broker or dealer concerning a material
associated person is deemed
confidential information for the
purposes of section 24(b) of the
Exchange Act.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
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 by October 13, 2022. (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Comments must be submitted to OMB
within 30 days of this notice.
Dated: September 7, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–19673 Filed 9–12–22; 8:45 am]
jspears on DSK121TN23PROD with NOTICES
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95683; File No. SR–ICEEU–
2022–010]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change Relating to
Amendments to the ICE Clear Europe
Clearing Membership Procedures
September 7, 2022.
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 August
30, 2022, 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.
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 modify its Clearing
Membership Procedures (‘‘Clearing
Membership Procedures’’ or
‘‘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 Clearing Membership
Procedures to make certain
clarifications and enhancements to
remove certain provisions that are
duplicative of the Clearing House’s
Counterparty Credit Risk Policy and
1 15
2 17
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17:30 Sep 12, 2022
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00123
Fmt 4703
Sfmt 4703
Counterparty Credit Risk Procedures,3
to more clearly document certain
practices and to make certain nonsubstantive changes to improve clarity
and readability.
The section describing the purpose of
the Procedures would add a defined
term referencing the Clearing House’s
Clearing Rules. Conforming changes
would be made to each reference to the
‘‘Clearing Rules’’ appearing in the
remainder of the Procedures.
The section describing the application
process would update the names of
certain departments responsible for
reviewing Clearing Membership
applications as follows: such
applications (i) would be reviewed by
the Credit and Clearing Risk department
(this change does not represent a change
in departments, rather, it is an inclusion
of the relevant department names rather
than stating ‘‘Risk’’ generally) and (ii)
are subject to the approval of the
Executive Risk Committee (rather than
simply the ‘‘Committee’’), which would
also be known as ‘‘the Committee or
‘‘ERC’’ in shorthand in the Procedures.
Conforming changes would be made in
the remainder of the Procedures.
A paragraph which provided that the
Clearing Risk Department would
conduct a credit review which may
include a credit check and assessments
based on the Clearing House’s
Counterparty Ratings System would be
removed as the credit review is covered
by the Counterparty Credit Risk Policy
and Procedures.
The proposed amendments would
provide that the list of Approved
Jurisdiction for applicants (those
jurisdictions for which additional legal
and regulatory analysis is not required)
would be maintained by the legal
department, rather than in the Clearing
Membership Parameters. This change
reflects current practice as the list of
Approved Jurisdictions is currently
maintained by the legal department.
Further, in order to consolidate
information and because the legal
department is placed to provide
guidance on Approved Jurisdictions, the
Clearing Membership Procedures would
reflect that such list would be
maintained by the legal department
only.
The subsection discussing
termination of Clearing Membership by
ICE Clear Europe would be updated to
remove a sentence which provided that
the Board is required to approve the
issuance of a Termination Notice against
3 The Counterparty Credit Risk Policy and
Procedures are described in Exchange Act Release
No. 34–93880, SR ICEEU–2021–15 (Dec. 30, 2021)
87 FR 513 (Jan. 5, 2022).
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Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
a Clearing Member. There is no such
requirement under the Rules, and
accordingly the amendments would
bring the Procedures into line with the
Rules and the scope of authority
currently delegated by the Board and
does not represent a change in existing
practice or procedures as they relate to
Termination Notices. Action by the
Clearing House to terminate a member
under Rule 209 would be subject to the
existing general governance provisions
of the Rules, including Rule 114. Rule
114(a) allows the Clearing House to
delegate authority to its Board,
Chairman, President or any other
Director or employee. Although ICE
Clear Europe would expect that a
decision to issue a Termination Notice
against a Clearing Member would likely
be made by the Board, the Clearing
House’s existing Delegation of Authority
to its President implemented pursuant
to Rule 114(a) could potentially apply to
issuance of a Termination Notice in
certain emergency scenarios including
situations where time is of the essence
for the interests of the Clearing House
and its Clearing Members. In such cases
and pursuant to the specifications
included in the Delegation of Authority,
the President may be authorized to issue
a Termination Notice. Accordingly, the
proposed update will conform the
Clearing Membership Procedures to
reflect the Clearing House’s existing
authority under the Rules and
Delegation of Authority to issue
Termination Notice in respect of
Clearing Members.
The subsection discussing the
minimum capital requirements that the
Clearing House requires of Clearing
Members would be updated to remove
a reference to data sources used to
determine a Clearing Member’s Capital.
Such matters are addressed in the
Counterparty Credit Risk Policy and
Procedures and do not need to be
addressed in the Clearing Membership
Procedures. Additionally, the
amendments clarify that certain
additional risk-based requirements that
may be imposed under the CDS
Procedures would apply only to CDS
Clearing Members in accordance with
the terms of the CDS Procedures. This
update does not represent a change to
the Clearing Membership Procedures
and is intended to reflect that the
Clearing Membership Procedures align
with the CDS Procedures.
The subsection discussing
contributions to the Guaranty Fund for
CDS and F&O would be updated to
clarify that the Clearing Membership
applications would be required to make
Guaranty Fund contributions as
specified by the F&O Guaranty Fund
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17:30 Sep 12, 2022
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Policy and Section 5 of the CDS Risk
Policy. The change is intended to
update references to the correct F&O
and CDS policies and does not represent
a change in substantive requirements.
A subsection discussing the Clearing
House’s margin-to-capital ratio
requirement would be removed as
unnecessary because such requirement
is addressed in greater detail in the
Clearing House’s Counterparty Credit
Risk Policy and Procedures.
In the section discussing on-going
monitoring of the Clearing Members by
the Clearing House, a sentence which
cross-referenced the Counterparty Credit
Risk Policy would be removed as
unnecessary.
The proposed amendments would
provide that the Clearing House’s
periodic counterparty review includes
know-your-customer and anti-money
laundering assessments. This
amendment is intended to reflect
current practice.
A subsection referencing the Clearing
House’s Quarterly Counterparty Rating
System Report would be removed as the
topic is discussed in greater detail in the
Counterparty Credit Risk Policy and
Procedures.
A subsection discussing the
information the Clearing House requires
that Clearing Members provide through
the Annual Member Return (AMR)
would be updated to expressly include
updated Clearing Member information.
AMR is an annual process by which ICE
Clear Europe requests Clearing Members
to provide and confirm certain
information related to their clearing
membership; AMR is a means for the
Clearing House to ensure that it has upto-date information about Clearing
Members. The proposed change is
intended to inform Clearing Members
that information requested as part of
AMR will include updated Clearing
Member information, which may
include, for example, a change of a
Clearing Member’s registered or
operational address, its legal entity
name, etc.
Other non-substantive typographical
and similar drafting clarifications and
updates would be made throughout the
Procedures to improve readability and
correct grammatical errors.
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the Clearing
Membership Procedures are consistent
with the requirements of Section 17A of
the Act 4 and the regulations thereunder
applicable to it. In particular, Section
4 15
PO 00000
U.S.C. 78q–1.
Frm 00124
Fmt 4703
Sfmt 4703
56111
17A(b)(3)(F) of the Act 5 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 Clearing
Membership Procedures are intended to
update and more clearly document the
Clearing House’s procedures for
reviewing applications for clearing
membership, variations of membership
permissions and on-going monitoring
and termination of membership of ICEU.
The amendments remove certain
overlapping or duplicative information
that is addressed in more detail in the
Clearing House’s Counterparty Credit
Risk Policy and Procedures. In ICE Clear
Europe’s view the amendments would
thus facilitate the clearing membership
process, and related risk management by
the Clearing House. The amendments
would therefore facilitate the prompt
and accurate clearing of cleared
contracts and protect investors and the
public interest in the sound operations
of the Clearing House, consistent with
the requirement s of Section
17A(b)(3)(F).6 Further, the amendments
will not affect the safeguarding of
securities and funds in the custody or
control of the Clearing House or for
which it is responsible, within the
meaning Section 17A(b)(3)(F).7
The amendments to the Procedures
are also consistent with relevant
provisions of Rule 17Ad–22.8 Rule
17Ad–22(e)(18) provides that ‘‘[e]ach
covered clearing agency shall establish,
implement, maintain and enforce
written policies and procedures
reasonable designed to, as applicable
[. . .] establish objective, risk-based and
publicly disclosed criteria for
participation, which permit fair and
open access by direct . . . participants
. . . require participants to have
sufficient financial resources and robust
operational capacity to meet obligations
arising from participation in the clearing
agency, and monitor compliance with
such participation requirements on an
ongoing basis’’.9 As set forth above, the
amendments to the Clearing
Membership Procedures are intended to
clarify and enhance the Clearing
5 15
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(F).
7 15 U.S.C. 78q–1(b)(3)(F).
8 17 CFR 240.17 Ad–22.
9 17 CFR 240.17 Ad–22(e)(18).
6 15
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Federal Register / Vol. 87, No. 176 / Tuesday, September 13, 2022 / Notices
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House’s procedures as they relate to
Clearing Membership application and
monitoring processes. The amendments
do not substantively change the
requirements for membership or the
related Rules, but rather update the
Procedures to reflect the Clearing
House’s current practices, avoid
duplication of other Clearing House
policies (specifically the Counterparty
Credit Risk Policy and Procedures) and
make other updates to improve clarity
and readability. The amendments will
facilitate the Clearing House’s ability to
implement and monitor its participation
requirements. In ICE Clear Europe’s
view, the amendments are therefore
consistent with the requirements of Rule
17Ad–22(e)(18).10
Rule 17Ad–22(e)(2) further provides
that ‘‘[e]ach covered clearing agency
shall establish, implement, maintain
and enforce written policies and
procedures reasonable designed to, as
applicable [. . .] provide for governance
arrangements that are (i) clear and
transparent, (ii) clearly prioritize the
safety and efficiency of the covered
clearing agency; and (iii) support the
public interest requirement in Section
17A of the Act’’ 11 among other
requirements. As set forth above, the
amendments clarify the governance
arrangements around the termination of
clearing membership status under Rule
209, to remove a requirement that
terminations be approved by the Board.
Such a requirement is not provided in
the Rules, and accordingly the
amendments would make the
Procedures consistent with the
governance procedures of the Rules,
including Rule 114. As such, in ICE
Clear Europe’s view, the amendments
are consistent with the requirements of
Rule 17Ad–22(e)(2).12
(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 amendments
are being adopted to update and clarify
the Clearing Membership Procedures,
which relates to the Clearing House’s
internal processes for implementation
and ongoing monitoring of its
membership requirements. No
substantive changes are being made to
the membership requirements
themselves or the Rules. Accordingly,
ICE Clear Europe does not believe the
10 17
CFR 240.17Ad–22(e)(18).
11 17 CFR 240.17Ad–22(e)(2).
12 17 CFR 240.17Ad–22(e)(2).
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17:30 Sep 12, 2022
Jkt 256001
amendments would affect the costs of
clearing, the ability of market
participants to access clearing, or the
market for clearing services 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
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–2022–010 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–2022–010. 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
PO 00000
Frm 00125
Fmt 4703
Sfmt 4703
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 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–
2022–010 and should be submitted on
or before October 4, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022–19676 Filed 9–12–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95700; File No. SR–NYSE–
2022–40]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing and Immediate Effectiveness of
Proposed Rule Change To Transfer the
Services and Fees Related to
Colocation
September 7, 2022.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on August
24, 2022, New York Stock Exchange
LLC (‘‘NYSE’’ or the ‘‘Exchange’’) filed
with the Securities and Exchange
13 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 15 U.S.C. 78a.
3 17 CFR 240.19b–4.
1 15
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]]>Agencies
[Federal Register Volume 87, Number 176 (Tuesday, September 13, 2022)]
[Notices]
[Pages 56110-56112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-19676]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95683; File No. SR-ICEEU-2022-010]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change Relating to Amendments to the ICE
Clear Europe Clearing Membership Procedures
September 7, 2022.
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 August 30, 2022, 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 modify its Clearing Membership Procedures (``Clearing
Membership Procedures'' or ``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 Clearing Membership
Procedures to make certain clarifications and enhancements to remove
certain provisions that are duplicative of the Clearing House's
Counterparty Credit Risk Policy and Counterparty Credit Risk
Procedures,\3\ to more clearly document certain practices and to make
certain non-substantive changes to improve clarity and readability.
---------------------------------------------------------------------------
\3\ The Counterparty Credit Risk Policy and Procedures are
described in Exchange Act Release No. 34-93880, SR ICEEU-2021-15
(Dec. 30, 2021) 87 FR 513 (Jan. 5, 2022).
---------------------------------------------------------------------------
The section describing the purpose of the Procedures would add a
defined term referencing the Clearing House's Clearing Rules.
Conforming changes would be made to each reference to the ``Clearing
Rules'' appearing in the remainder of the Procedures.
The section describing the application process would update the
names of certain departments responsible for reviewing Clearing
Membership applications as follows: such applications (i) would be
reviewed by the Credit and Clearing Risk department (this change does
not represent a change in departments, rather, it is an inclusion of
the relevant department names rather than stating ``Risk'' generally)
and (ii) are subject to the approval of the Executive Risk Committee
(rather than simply the ``Committee''), which would also be known as
``the Committee or ``ERC'' in shorthand in the Procedures. Conforming
changes would be made in the remainder of the Procedures.
A paragraph which provided that the Clearing Risk Department would
conduct a credit review which may include a credit check and
assessments based on the Clearing House's Counterparty Ratings System
would be removed as the credit review is covered by the Counterparty
Credit Risk Policy and Procedures.
The proposed amendments would provide that the list of Approved
Jurisdiction for applicants (those jurisdictions for which additional
legal and regulatory analysis is not required) would be maintained by
the legal department, rather than in the Clearing Membership
Parameters. This change reflects current practice as the list of
Approved Jurisdictions is currently maintained by the legal department.
Further, in order to consolidate information and because the legal
department is placed to provide guidance on Approved Jurisdictions, the
Clearing Membership Procedures would reflect that such list would be
maintained by the legal department only.
The subsection discussing termination of Clearing Membership by ICE
Clear Europe would be updated to remove a sentence which provided that
the Board is required to approve the issuance of a Termination Notice
against
[[Page 56111]]
a Clearing Member. There is no such requirement under the Rules, and
accordingly the amendments would bring the Procedures into line with
the Rules and the scope of authority currently delegated by the Board
and does not represent a change in existing practice or procedures as
they relate to Termination Notices. Action by the Clearing House to
terminate a member under Rule 209 would be subject to the existing
general governance provisions of the Rules, including Rule 114. Rule
114(a) allows the Clearing House to delegate authority to its Board,
Chairman, President or any other Director or employee. Although ICE
Clear Europe would expect that a decision to issue a Termination Notice
against a Clearing Member would likely be made by the Board, the
Clearing House's existing Delegation of Authority to its President
implemented pursuant to Rule 114(a) could potentially apply to issuance
of a Termination Notice in certain emergency scenarios including
situations where time is of the essence for the interests of the
Clearing House and its Clearing Members. In such cases and pursuant to
the specifications included in the Delegation of Authority, the
President may be authorized to issue a Termination Notice. Accordingly,
the proposed update will conform the Clearing Membership Procedures to
reflect the Clearing House's existing authority under the Rules and
Delegation of Authority to issue Termination Notice in respect of
Clearing Members.
The subsection discussing the minimum capital requirements that the
Clearing House requires of Clearing Members would be updated to remove
a reference to data sources used to determine a Clearing Member's
Capital. Such matters are addressed in the Counterparty Credit Risk
Policy and Procedures and do not need to be addressed in the Clearing
Membership Procedures. Additionally, the amendments clarify that
certain additional risk-based requirements that may be imposed under
the CDS Procedures would apply only to CDS Clearing Members in
accordance with the terms of the CDS Procedures. This update does not
represent a change to the Clearing Membership Procedures and is
intended to reflect that the Clearing Membership Procedures align with
the CDS Procedures.
The subsection discussing contributions to the Guaranty Fund for
CDS and F&O would be updated to clarify that the Clearing Membership
applications would be required to make Guaranty Fund contributions as
specified by the F&O Guaranty Fund Policy and Section 5 of the CDS Risk
Policy. The change is intended to update references to the correct F&O
and CDS policies and does not represent a change in substantive
requirements.
A subsection discussing the Clearing House's margin-to-capital
ratio requirement would be removed as unnecessary because such
requirement is addressed in greater detail in the Clearing House's
Counterparty Credit Risk Policy and Procedures.
In the section discussing on-going monitoring of the Clearing
Members by the Clearing House, a sentence which cross-referenced the
Counterparty Credit Risk Policy would be removed as unnecessary.
The proposed amendments would provide that the Clearing House's
periodic counterparty review includes know-your-customer and anti-money
laundering assessments. This amendment is intended to reflect current
practice.
A subsection referencing the Clearing House's Quarterly
Counterparty Rating System Report would be removed as the topic is
discussed in greater detail in the Counterparty Credit Risk Policy and
Procedures.
A subsection discussing the information the Clearing House requires
that Clearing Members provide through the Annual Member Return (AMR)
would be updated to expressly include updated Clearing Member
information. AMR is an annual process by which ICE Clear Europe
requests Clearing Members to provide and confirm certain information
related to their clearing membership; AMR is a means for the Clearing
House to ensure that it has up-to-date information about Clearing
Members. The proposed change is intended to inform Clearing Members
that information requested as part of AMR will include updated Clearing
Member information, which may include, for example, a change of a
Clearing Member's registered or operational address, its legal entity
name, etc.
Other non-substantive typographical and similar drafting
clarifications and updates would be made throughout the Procedures to
improve readability and correct grammatical errors.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Clearing Membership Procedures are consistent with the requirements of
Section 17A of the Act \4\ and the regulations thereunder applicable to
it. In particular, Section 17A(b)(3)(F) of the Act \5\ 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.
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\4\ 15 U.S.C. 78q-1.
\5\ 15 U.S.C. 78q-1(b)(3)(F).
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The proposed changes to the Clearing Membership Procedures are
intended to update and more clearly document the Clearing House's
procedures for reviewing applications for clearing membership,
variations of membership permissions and on-going monitoring and
termination of membership of ICEU. The amendments remove certain
overlapping or duplicative information that is addressed in more detail
in the Clearing House's Counterparty Credit Risk Policy and Procedures.
In ICE Clear Europe's view the amendments would thus facilitate the
clearing membership process, and related risk management by the
Clearing House. The amendments would therefore facilitate the prompt
and accurate clearing of cleared contracts and protect investors and
the public interest in the sound operations of the Clearing House,
consistent with the requirement s of Section 17A(b)(3)(F).\6\ Further,
the amendments will not affect the safeguarding of securities and funds
in the custody or control of the Clearing House or for which it is
responsible, within the meaning Section 17A(b)(3)(F).\7\
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
\7\ 15 U.S.C. 78q-1(b)(3)(F).
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The amendments to the Procedures are also consistent with relevant
provisions of Rule 17Ad-22.\8\ Rule 17Ad-22(e)(18) provides that
``[e]ach covered clearing agency shall establish, implement, maintain
and enforce written policies and procedures reasonable designed to, as
applicable [. . .] establish objective, risk-based and publicly
disclosed criteria for participation, which permit fair and open access
by direct . . . participants . . . require participants to have
sufficient financial resources and robust operational capacity to meet
obligations arising from participation in the clearing agency, and
monitor compliance with such participation requirements on an ongoing
basis''.\9\ As set forth above, the amendments to the Clearing
Membership Procedures are intended to clarify and enhance the Clearing
[[Page 56112]]
House's procedures as they relate to Clearing Membership application
and monitoring processes. The amendments do not substantively change
the requirements for membership or the related Rules, but rather update
the Procedures to reflect the Clearing House's current practices, avoid
duplication of other Clearing House policies (specifically the
Counterparty Credit Risk Policy and Procedures) and make other updates
to improve clarity and readability. The amendments will facilitate the
Clearing House's ability to implement and monitor its participation
requirements. In ICE Clear Europe's view, the amendments are therefore
consistent with the requirements of Rule 17Ad-22(e)(18).\10\
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\8\ 17 CFR 240.17 Ad-22.
\9\ 17 CFR 240.17 Ad-22(e)(18).
\10\ 17 CFR 240.17Ad-22(e)(18).
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Rule 17Ad-22(e)(2) further provides that ``[e]ach covered clearing
agency shall establish, implement, maintain and enforce written
policies and procedures reasonable designed to, as applicable [. . .]
provide for governance arrangements that are (i) clear and transparent,
(ii) clearly prioritize the safety and efficiency of the covered
clearing agency; and (iii) support the public interest requirement in
Section 17A of the Act'' \11\ among other requirements. As set forth
above, the amendments clarify the governance arrangements around the
termination of clearing membership status under Rule 209, to remove a
requirement that terminations be approved by the Board. Such a
requirement is not provided in the Rules, and accordingly the
amendments would make the Procedures consistent with the governance
procedures of the Rules, including Rule 114. As such, in ICE Clear
Europe's view, the amendments are consistent with the requirements of
Rule 17Ad-22(e)(2).\12\
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\11\ 17 CFR 240.17Ad-22(e)(2).
\12\ 17 CFR 240.17Ad-22(e)(2).
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(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 amendments
are being adopted to update and clarify the Clearing Membership
Procedures, which relates to the Clearing House's internal processes
for implementation and ongoing monitoring of its membership
requirements. No substantive changes are being made to the membership
requirements themselves or the Rules. Accordingly, ICE Clear Europe
does not believe the amendments would affect the costs of clearing, the
ability of market participants to access clearing, or the market for
clearing services 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
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-2022-010 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-2022-010. 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 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-2022-010 and should be
submitted on or before October 4, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-19676 Filed 9-12-22; 8:45 am]
BILLING CODE 8011-01-P
