Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to Amendments of the Investment Management Procedures, 20200-20202 [2023-07006]
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Federal Register / Vol. 88, No. 65 / Wednesday, April 5, 2023 / Notices
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.
The proposal shall not take effect
until all regulatory actions required
with respect to the proposal are
completed.
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–
OCC–2023–003 on the subject line.
lotter on DSK11XQN23PROD with NOTICES1
Paper Comments
• Send paper comments in triplicate
to Vanessa Countryman, Secretary,
Securities and Exchange Commission,
100 F Street NE, Washington, DC
20549–1090.
All submissions should refer to File
Number SR–OCC–2023–003. 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
filing also will be available for
inspection and copying at the principal
office of OCC and on OCC’s website at
https://www.theocc.com/Company-
VerDate Sep<11>2014
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Information/Documents-and-Archives/
By-Laws-and-Rules.
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–OCC–2023–003 and should
be submitted on or before April 26,
2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.20
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–07004 Filed 4–4–23; 8:45 am]
BILLING CODE 8011–01–P
investments made with amounts held by
the Clearing House as regulatory capital.
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
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–97224; File No. SR–ICEEU–
2023–009]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change Relating to
Amendments of the Investment
Management Procedures
March 30, 2023.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 23,
2023, ICE Clear Europe Limited (‘‘ICE
Clear Europe’’ or the ‘‘Clearing House’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule changes described in
Items I, II and III below, which Items
have been primarily prepared 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
ICE Clear Europe Limited (‘‘ICE Clear
Europe’’ or the ‘‘Clearing House’’)
proposes to modify its Investment
Management Procedures 3 (the
‘‘Investment Management Procedures’’
or the ‘‘Procedures’’) to change the
maximum maturities for certain
20 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 Capitalized terms used but not defined herein
have the meanings specified in the ICE Clear
Europe Clearing Rules and the Investment
Management Procedures.
1 15
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
ICE Clear Europe is proposing to
amend the Investment Management
Procedures in the Table of Authorised
Investments and Concentration Limits
for ICEU’s Regulatory Capital (the
‘‘Table’’) to change the maximum
maturity of certain investments in
sovereign and government agency
bonds. In particular, the maximum
maturity on the purchase of U.S.
Sovereign Bonds, UK Sovereign Bonds,
EU Sovereign Bonds, U.S. Government
Agency Bonds, UK Government Agency
Bonds, and EU Government Agency
Bonds would be amended from 90 days
to 13 months. The amendments would
align the maximum maturity for such
investments with the existing maximum
maturity for permitted investments in
the same instrument that are made with
cash provided by Clearing Members
(‘‘CMs’’) (e.g., as margin or guaranty
fund contribution) and the Clearing
House’s own contribution to the
guaranty fund. By extending the
maximum maturity, ICE Clear Europe
would have the flexibility to invest its
regulatory capital in longer term
sovereign and government bonds. ICE
Clear Europe believes that such
flexibility is important in light of
current and expected market conditions,
including to assist ICE Clear Europe in
avoiding having to invest or reinvest in
shorter duration instruments during
potential periods of market volatility,
such as those that may arise in
connection with U.S. debt ceiling
developments.
(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the
Investment Management Procedures are
consistent with the requirements of
E:\FR\FM\05APN1.SGM
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lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 88, No. 65 / Wednesday, April 5, 2023 / Notices
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.
The proposed changes to the
Investment Management Procedures are
designed to align the maximum
maturity for certain investments made
with ICE Clear Europe’s regulatory
capital with the maximum maturity for
investments of other funds by the
Clearing House (specifically, cash
provided by Clearing Members and the
Clearing House’s own contribution to
the guaranty fund). Although regulatory
capital serves a different purpose from
default resources, ICE Clear Europe
believes that the same principles of
capital preservation and maintaining
high levels of liquidity are appropriate
for all cash managed by the Clearing
House. The current maximum
maturities for investments in sovereign
and government bonds for regulatory
capital creates an unnecessary
limitation compared to Clearing
Member cash and the Clearing House
guaranty fund contributions. The
current limitation may subject
regulatory capital investments to shortterm volatility and reinvestment risk
that could be avoided in appropriate
cases through having the flexibility to
invest in longer dated, but still high
quality and liquid, instruments. ICE
Clear Europe does not believe it is
necessary for the maximum maturity for
investments of its regulatory capital to
be more restrictive than for its other
investments of cash. ICE Clear Europe
believes that, as with investments of
Clearing Member cash and Clearing
House guaranty fund contributions,
investments in qualifying sovereign and
agency bonds with an up-to 13 month
maturity would nonetheless have
acceptable credit, market and liquidity
risks that can be managed by the
Clearing House. Moreover, the Clearing
House would then have the same tools
and ability to manage its regulatory
capital as it would its CM cash and
Clearing House guaranty fund
contributions. (In addition, the general
investment consideration under the
existing Procedures that investments
have a variety of maturity dates would
continue to apply.) Having a consistent
set of investment and maturity
requirements would also simplify the
Clearing House investment process.
Accordingly, ICE Clear Europe believes
that the Investment Management
Procedures, as amended, are consistent
with the safeguarding of funds and
securities in the custody or control of
the clearing agency or for which it is
responsible. For the same reasons, the
amendments are also consistent with
the protection of investors and the
public interest. As such, ICE Clear
Europe believes the amendments are
consistent with the requirements of
Section 17A(b)(3)(F) of the Act.6
Rule 17A–22(e)(16) requires a covered
clearing agency to ‘‘establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to, as applicable
[. . .] safeguard its own and its
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.’’ 7 As discussed above,
the amendments to the Investment
Management Procedures are intended to
align the maximum maturities for
certain investments made with ICE
Clear Europe’s own regulatory capital
with the maximum maturities for
investments in the same assets when
made with Clearing Member cash or the
Clearing House’s own contribution to
the guaranty fund. ICE Clear Europe
does not believe it is necessary to
distinguish between the two types of
investments in terms of maximum
maturity. As revised, the Procedures
will limit investment of Clearing House
cash of all varieties to instruments with
minimal credit, market and liquidity
risks, consistent with the manner in
which Clearing Member cash and
Clearing House guaranty fund
contributions are currently invested. As
such, the revised Investment
Management Procedures would
continue to help enable the Clearing
House to safeguard such assets and
minimize the risk of loss and delay in
access to such assets, consistent with
the requirements of Rule 17Ad–
22(e)(16).8
Rule 17Ad–22(e)(15) requires a
covered clearing agency to ‘‘establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to, as applicable
[. . .] hold liquid net assets funded by
U.S.C. 78q–1(b)(3)(F).
CFR 240.17Ad–22(e)(16).
8 17 CFR 240.17Ad–22(e)(16).
equity [. . .] which [. . .] shall be of
high quality and sufficiently liquid to
allow the covered clearing agency to
meet its current and projected operating
expenses under a range of scenarios,
including in adverse market
conditions.’’ 9 As set forth above, ICE
Clear Europe believes the revisions to
the maximum maturity for investments
of its own capital will result in
investments in assets with minimal
credit, market and liquidity risks,
consistent with other investments made
by the Clearing House. The current
investment profile is conservative,
allowing for investment only in the
highest rated securities, and this would
not be affected by the proposed changes.
For similar reasons, ICE Clear Europe
believes that under the revised
Investment Management Procedures,
such investments of its capital will be
of sufficient high quality and liquidity
to permit the Clearing House to meet its
operating expenses, even in adverse
market conditions. As a result, in ICE
Clear Europe’s view, the amendments
are consistent with the requirements of
Rule 17Ad–22(e)(15).10
(B) Clearing Agency’s Statement on
Burden on Competition
ICE Clear Europe does not believe the
proposed amendments would have any
impact, or impose any burden, on
competition not necessary or
appropriate in furtherance of the
purposes of the Act. The changes are
being proposed in order to update the
Investment Management Procedures to
align maturity requirements for
investment of the Clearing House’s
capital. The amendments are not
intended to impose new requirements
on Clearing Members, and will not
affect the investment of cash provided
by 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 amendment has not been
6 15
4 15
U.S.C. 78q–1.
5 15 U.S.C. 78q–1(b)(3)(F).
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20201
9 17
CFR 240.17Ad–22(e)(15)(B).
CFR 240.17Ad–22(e)(15)(B).
10 17
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20202
Federal Register / Vol. 88, No. 65 / Wednesday, April 5, 2023 / Notices
solicited or received by ICE Clear
Europe. ICE Clear Europe will notify the
Commission of any comments received
with respect to the proposed rule
change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
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:
lotter on DSK11XQN23PROD with NOTICES1
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–2023–009 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–ICEEU–2023–009. 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
VerDate Sep<11>2014
17:44 Apr 04, 2023
Jkt 259001
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Europe and on ICE
Clear Europe’s website at https://
www.theice.com/clear-europe/
regulation.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICEEU–2023–009
and should be submitted on or before
April 26, 2023.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.11
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–07006 Filed 4–4–23; 8:45 am]
requests made after that date, but might
not be able to accommodate them. More
information about the meeting,
including call-in information, can be
found at https://www.state.gov/virtuallistening-session-following-the-16thround-of-negotiations-to-modernize-thecolumbia-river-treaty-regime/ or by
emailing the email address listed above.
Questions can be submitted in advance
at ColumbiaRiverTreaty@state.gov for
consideration.
Authority: 22 U.S.C. 2651a, 2656; 5
U.S.C. 552.
Jennifer L. Savage,
Director, Office of Canadian Affairs,
Department of State.
[FR Doc. 2023–07000 Filed 4–4–23; 8:45 am]
BILLING CODE 4710–29–P
DEPARTMENT OF STATE
[Public Notice 11871]
Exchange Visitor Program
Notice of Temporary Waiver
and Modification of Certain Regulatory
Requirements.
BILLING CODE 8011–01–P
ACTION:
DEPARTMENT OF STATE
SUMMARY:
[Public Notice 12036]
Listening Session on Modernizing the
Columbia River Treaty Regime
ACTION:
Notice of meeting.
The Department of State will
hold a virtual listening session, on April
19, 2023, to discuss the modernization
of the Columbia River Treaty (CRT)
regime.
DATES: The session will be held on
Wednesday, April 19, 2023, from 8
p.m.–9:30 p.m. ET (5 p.m.–6:30 p.m.
PT).
ADDRESSES: The session will be held
virtually.
FOR FURTHER INFORMATION CONTACT:
Office of Canadian Affairs, Department
of State, (202) 647–2170,
ColumbiaRiverTreaty@state.gov.
SUPPLEMENTARY INFORMATION: This
listening session is part of the
Department’s public engagement on the
modernization of the CRT regime. (Per
22 U.S.C. 2651a and 2656) The session
is open to the public. To register, go to:
https://statedept.zoomgov.com/webinar/
register/WN_XKI6Hk8TRnn8xOAnHPA-g. Requests for reasonable
accommodation should be made to the
email listed above, on or before April 9,
2023. The Department will consider
SUMMARY:
11 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00085
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In accordance with the
General Provisions of the Exchange
Visitor Program regulations, the
Department’s Assistant Secretary for
Educational and Cultural Affairs waives
and modifies certain regulatory
requirements with respect to a
temporary educational and cultural
exchange program established pursuant
to an arrangement between the
Government of the United States of
America and the Government of
Ukraine. This arrangement allows the
Department to extend Special Student
Relief to eligible Ukrainian students in
the United States on J–1 visas to help
mitigate the adverse impact on them
resulting from the full-scale Russian
invasion of Ukraine that began on
February 24, 2022.
DATES: This action was effective on
August 18, 2022, and will remain in
effect until October 23, 2023, unless the
U.S. Government unilaterally ends the
arrangement early or the U.S.
Government and the Government of
Ukraine together extend its termination
date. The Department will publish a
document in the Federal Register if the
termination date is changed.
FOR FURTHER INFORMATION CONTACT:
Nicole Elkon, Deputy Assistant
Secretary, Private Sector Exchange at
2200 C Street NW, SA–5, 5th Floor,
Washington, DC 20522 or via email at
JExchanges@state.gov. or phone (2020
826–4364.
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]]>Agencies
[Federal Register Volume 88, Number 65 (Wednesday, April 5, 2023)]
[Notices]
[Pages 20200-20202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07006]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-97224; File No. SR-ICEEU-2023-009]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change Relating to Amendments of the
Investment Management Procedures
March 30, 2023.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on March 23, 2023, ICE Clear Europe Limited (``ICE Clear Europe'' or
the ``Clearing House'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule changes described in
Items I, II and III below, which Items have been primarily prepared 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
ICE Clear Europe Limited (``ICE Clear Europe'' or the ``Clearing
House'') proposes to modify its Investment Management Procedures \3\
(the ``Investment Management Procedures'' or the ``Procedures'') to
change the maximum maturities for certain investments made with amounts
held by the Clearing House as regulatory capital.
---------------------------------------------------------------------------
\3\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Clearing Rules and the
Investment Management Procedures.
---------------------------------------------------------------------------
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 the Investment Management
Procedures in the Table of Authorised Investments and Concentration
Limits for ICEU's Regulatory Capital (the ``Table'') to change the
maximum maturity of certain investments in sovereign and government
agency bonds. In particular, the maximum maturity on the purchase of
U.S. Sovereign Bonds, UK Sovereign Bonds, EU Sovereign Bonds, U.S.
Government Agency Bonds, UK Government Agency Bonds, and EU Government
Agency Bonds would be amended from 90 days to 13 months. The amendments
would align the maximum maturity for such investments with the existing
maximum maturity for permitted investments in the same instrument that
are made with cash provided by Clearing Members (``CMs'') (e.g., as
margin or guaranty fund contribution) and the Clearing House's own
contribution to the guaranty fund. By extending the maximum maturity,
ICE Clear Europe would have the flexibility to invest its regulatory
capital in longer term sovereign and government bonds. ICE Clear Europe
believes that such flexibility is important in light of current and
expected market conditions, including to assist ICE Clear Europe in
avoiding having to invest or reinvest in shorter duration instruments
during potential periods of market volatility, such as those that may
arise in connection with U.S. debt ceiling developments.
(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Investment Management Procedures are consistent with the requirements
of
[[Page 20201]]
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.
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78q-1.
\5\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The proposed changes to the Investment Management Procedures are
designed to align the maximum maturity for certain investments made
with ICE Clear Europe's regulatory capital with the maximum maturity
for investments of other funds by the Clearing House (specifically,
cash provided by Clearing Members and the Clearing House's own
contribution to the guaranty fund). Although regulatory capital serves
a different purpose from default resources, ICE Clear Europe believes
that the same principles of capital preservation and maintaining high
levels of liquidity are appropriate for all cash managed by the
Clearing House. The current maximum maturities for investments in
sovereign and government bonds for regulatory capital creates an
unnecessary limitation compared to Clearing Member cash and the
Clearing House guaranty fund contributions. The current limitation may
subject regulatory capital investments to short-term volatility and
reinvestment risk that could be avoided in appropriate cases through
having the flexibility to invest in longer dated, but still high
quality and liquid, instruments. ICE Clear Europe does not believe it
is necessary for the maximum maturity for investments of its regulatory
capital to be more restrictive than for its other investments of cash.
ICE Clear Europe believes that, as with investments of Clearing Member
cash and Clearing House guaranty fund contributions, investments in
qualifying sovereign and agency bonds with an up-to 13 month maturity
would nonetheless have acceptable credit, market and liquidity risks
that can be managed by the Clearing House. Moreover, the Clearing House
would then have the same tools and ability to manage its regulatory
capital as it would its CM cash and Clearing House guaranty fund
contributions. (In addition, the general investment consideration under
the existing Procedures that investments have a variety of maturity
dates would continue to apply.) Having a consistent set of investment
and maturity requirements would also simplify the Clearing House
investment process. Accordingly, ICE Clear Europe believes that the
Investment Management Procedures, as amended, are consistent with the
safeguarding of funds and securities in the custody or control of the
clearing agency or for which it is responsible. For the same reasons,
the amendments are also consistent with the protection of investors and
the public interest. As such, ICE Clear Europe believes the amendments
are consistent with the requirements of Section 17A(b)(3)(F) of the
Act.\6\
---------------------------------------------------------------------------
\6\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Rule 17A-22(e)(16) requires a covered clearing agency to
``establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable [. . .] safeguard its
own and its 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.'' \7\ As discussed above,
the amendments to the Investment Management Procedures are intended to
align the maximum maturities for certain investments made with ICE
Clear Europe's own regulatory capital with the maximum maturities for
investments in the same assets when made with Clearing Member cash or
the Clearing House's own contribution to the guaranty fund. ICE Clear
Europe does not believe it is necessary to distinguish between the two
types of investments in terms of maximum maturity. As revised, the
Procedures will limit investment of Clearing House cash of all
varieties to instruments with minimal credit, market and liquidity
risks, consistent with the manner in which Clearing Member cash and
Clearing House guaranty fund contributions are currently invested. As
such, the revised Investment Management Procedures would continue to
help enable the Clearing House to safeguard such assets and minimize
the risk of loss and delay in access to such assets, consistent with
the requirements of Rule 17Ad-22(e)(16).\8\
---------------------------------------------------------------------------
\7\ 17 CFR 240.17Ad-22(e)(16).
\8\ 17 CFR 240.17Ad-22(e)(16).
---------------------------------------------------------------------------
Rule 17Ad-22(e)(15) requires a covered clearing agency to
``establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable [. . .] hold liquid
net assets funded by equity [. . .] which [. . .] shall be of high
quality and sufficiently liquid to allow the covered clearing agency to
meet its current and projected operating expenses under a range of
scenarios, including in adverse market conditions.'' \9\ As set forth
above, ICE Clear Europe believes the revisions to the maximum maturity
for investments of its own capital will result in investments in assets
with minimal credit, market and liquidity risks, consistent with other
investments made by the Clearing House. The current investment profile
is conservative, allowing for investment only in the highest rated
securities, and this would not be affected by the proposed changes. For
similar reasons, ICE Clear Europe believes that under the revised
Investment Management Procedures, such investments of its capital will
be of sufficient high quality and liquidity to permit the Clearing
House to meet its operating expenses, even in adverse market
conditions. As a result, in ICE Clear Europe's view, the amendments are
consistent with the requirements of Rule 17Ad-22(e)(15).\10\
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\9\ 17 CFR 240.17Ad-22(e)(15)(B).
\10\ 17 CFR 240.17Ad-22(e)(15)(B).
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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 changes are
being proposed in order to update the Investment Management Procedures
to align maturity requirements for investment of the Clearing House's
capital. The amendments are not intended to impose new requirements on
Clearing Members, and will not affect the investment of cash provided
by 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 amendment has not been
[[Page 20202]]
solicited or received by ICE Clear Europe. ICE Clear Europe will notify
the Commission of any comments received with respect to the proposed
rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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-2023-009 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-ICEEU-2023-009. 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-2023-009 and should be
submitted on or before April 26, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\11\
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\11\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-07006 Filed 4-4-23; 8:45 am]
BILLING CODE 8011-01-P
