Self-Regulatory Organizations; ICE Clear Europe Limited; Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, Relating to Amendments to the Clearing Membership Policy and Clearing Membership Procedures, 59547-59550 [2023-18551]
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Federal Register / Vol. 88, No. 166 / Tuesday, August 29, 2023 / Notices
II. Docketed Proceeding(s)
section by
telephone for advice on filing
alternatives.
INFORMATION CONTACT
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
ddrumheller on DSK120RN23PROD with NOTICES1
I. Introduction
II. Docketed Proceeding(s)
I. Introduction
The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the Market Dominant or
the Competitive product list, or the
modification of an existing product
currently appearing on the Market
Dominant or the Competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3011.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern Market Dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3030, and 39
CFR part 3040, subpart B. For request(s)
that the Postal Service states concern
Competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3035, and
39 CFR part 3040, subpart B. Comment
deadline(s) for each request appear in
section II.
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
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1. Docket No(s).: MC2023–237 and
CP2023–240; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 6 to Competitive Product List
and Notice of Filing Materials Under
Seal; Filing Acceptance Date: August 22,
2023; Filing Authority: 39 U.S.C. 3642,
39 CFR 3040.130 through 3040.135, and
39 CFR 3035.105; Public Representative:
Christopher C. Mohr; Comments Due:
August 30, 2023.
2. Docket No(s).: MC2023–239 and
CP2023–242; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 32 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: August 22, 2023; Filing Authority:
39 U.S.C. 3642, 39 CFR 3040.130
through 3040.135, and 39 CFR 3035.105;
Public Representative: Kenneth R.
Moeller; Comments Due: August 30,
2023.
3. Docket No(s).: MC2023–240 and
CP2023–243; Filing Title: USPS Request
to Add Priority Mail Contract 785 to
Competitive Product List and Notice of
Filing Materials Under Seal; Filing
Acceptance Date: August 22, 2023;
Filing Authority: 39 U.S.C. 3642, 39 CFR
3040.130 through 3040.135, and 39 CFR
3035.105; Public Representative:
Kenneth R. Moeller; Comments Due:
August 30, 2023.
4. Docket No(s).: MC2023–241 and
CP2023–244; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 33 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: August 22, 2023; Filing Authority:
39 U.S.C. 3642, 39 CFR 3040.130
through 3040.135, and 39 CFR 3035.105;
Public Representative: Jennaca D.
Upperman; Comments Due: August 30,
2023.
5. Docket No(s).: MC2023–242 and
CP2023–245; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 34 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: August 22, 2023; Filing Authority:
39 U.S.C. 3642, 39 CFR 3040.130
through 3040.135, and 39 CFR 3035.105;
Public Representative: Jennaca D.
Upperman; Comments Due: August 30,
2023.
6. Docket No(s).: MC2023–243 and
CP2023–246; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 35 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: August 22, 2023; Filing Authority:
39 U.S.C. 3642, 39 CFR 3040.130
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59547
through 3040.135, and 39 CFR 3035.105;
Public Representative: Gregory S.
Stanton; Comments Due: August 30,
2023.
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2023–18548 Filed 8–28–23; 8:45 am]
BILLING CODE 7710–FW–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–98207; File No. SR–ICEEU–
2023–022]
Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing
of Proposed Rule Change, as Modified
by Amendment No. 1, Relating to
Amendments to the Clearing
Membership Policy and Clearing
Membership Procedures
August 23, 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 August 8,
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. On August 22, 2023, ICE
Clear Europe filed Amendment No. 1 to
the proposed rule change to make
certain changes to the Exhibits 5A and
5B.3 The Commission is publishing this
notice to solicit comments on the
proposed rule change, as modified by
Amendment No. 1 (hereafter ‘‘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 (i) modify its Clearing
Membership Policy (‘‘Policy’’) 4 to
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 amends the Exhibit 5A and
Exhibit 5B to correctly reflect the addition of the
Document Handling subsection to each document’s
Table of Contents. The proposed rule change
includes an Exhibit 4A and Exhibit 4B. Exhibit 4A
shows the change that Amendment No. 1 makes to
Exhibit 5A, and Exhibit 4B does the same with
respect to attit 5B.
4 Capitalized terms used but not defined herein
have the meanings specified in the Policy and
Procedures or, if not defined therein, the ICE Clear
Europe Clearing Rules.
2 17
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Federal Register / Vol. 88, No. 166 / Tuesday, August 29, 2023 / Notices
update certain monitoring and
document review procedures and to
make certain drafting clarifications and
(ii) amend its Clearing Membership
Procedures (‘‘Procedures’’) to clarify the
Clearing House’s discretion with respect
to certain requirements and to add
notification requirements, among other
changes. The updates would also make
certain other non-substantive
amendments.
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
ddrumheller on DSK120RN23PROD with NOTICES1
I. Clearing Membership Policy
In the discussion of the purpose of the
Policy, the amendments would change
an incorrect reference to ‘‘model
documents’’ to ‘‘parameter documents’’
(reflecting that relevant parameters will
be set out in parameter documents).
Further changes would clarify that
Clearing Members are required to notify
the Clearing House promptly when
there is any change to its business
which would have an impact on
meeting the membership criteria.
Additionally, the monitoring of
membership criteria would be revised to
reflect that the Clearing House conducts
ongoing (rather than only quarterly or
other periodic) monitoring of
compliance with membership criteria.
Ongoing monitoring for this purpose
consists of continuous monitoring and
additional trigger-based reviews,
including relating to credit and AML/
KYC risk and to daily operational
matters (such as margin calls).
References to quarterly reviews of
financial position through Audited
Annual Accounts, quarterly review of
financial information, quarterly updates
of the Counterparty Rating System
(‘‘CRS’’), and the requirement to
maintain a watch list would be removed
(as such matters relate to credit issues
that are addressed in the Clearing
House’s Counterparty Credit Risk
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Policy,5 and do not need to be
referenced in this policy). A cross
reference to the Clearing Membership
Procedures and the Counterparty Credit
Risk Policy for monitoring information
would also be removed as unnecessary.
The amendments would also update
document governance requirements,
consistent with other ICE Clear Europe
policies.6 Document review would be
conducted by the document owner or
relevant staff, with approval of the head
of department (or their delegate) and the
Chief Risk Officer (or their delegate).
The amendments would specify that
document review, at a minimum, would
encompass regulatory compliance,
documentation and purpose,
implementation, use and open items
from prior reviews. The results of the
review would be reported to the
Executive Risk Committee (and in
certain cases, to the Model Oversight
Committee). The document owner
would aim to remediate any findings,
complete internal governance and
obtain regulatory approvals (as
applicable) before the next annual
review. The amendments would also
state explicitly that changes to the
Policy would need to be approved in
accordance with the Clearing House
governance process and take effect after
completion of all necessary internal and
regulatory approvals.
Certain other non-substantive
typographical and similar corrections
would also be made in the Policy, such
as using the correct name of the Clearing
Membership Policy.
II. Clearing Membership Procedures
ICE Clear Europe is proposing to
amend its Clearing Membership
Procedures to make certain
clarifications and updates, including for
consistency with the amendments to the
Policy described above. Under the
discussion of the application process,
the amendments would specifically
require notifications by Clearing
Members of changes to their business
that may impact the membership
criteria, consistent with the change to
the Policy described above.
Additionally, under the diligence
5 See Exchange Act Release No. 34–97169 (SR–
ICEEU–2023–004) (March 20, 2023), 88 FR 17886
(March 24, 2023).
6 See, e.g., The Counterparty Credit Risk Policy
and Procedures as described in Exchange Act
Release No. 34–97169, SR ICEEU–2023–004 (March
20, 2023) 88 FR 17886 (March 24, 2023); the
Investment Management Procedures as described in
Exchange Act Release No. 34–97528, SR ICEEU–
2023–009 (May 19, 2023) 88 FR 33949 (May 25,
2023); the Futures and Options Default
Management Policy as described in Exchange Act
Release No. 34–97383, SR ICEEU–2023–012 (Apr.
26, 2023) 88 FR 27539 (May 2, 2023).
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process, the amendments would clarify
that the applicant would be required to
provide sufficient evidence, details and
information as required by the Rules.
The proposed amendment would also
state that the membership team would
ensure that all applicants would be
added to the applicable schedule of
insured entities by the ICE Group
insurer.
The amendments would remove a
provision that the Product Risk
Committee would be notified of new
applications, after approval of an
application by the Executive Risk
Committee. ICE Clear Europe does not
believe notification of applications to
the Product Risk Committee is necessary
in light of the duties and functions of
those committees. The proposed
amendments would also clarify that the
Circular confirming approval is issued
once the application is approved. In
addition, the amendments would make
non-substantive clarifications
concerning the requirement for Clearing
Members to respond in a timely manner
to any additional information requested
by the Clearing House.
The proposed changes would also
clarify and make consistent throughout
the Procedures certain provisions
relating to decisions that may be taken
or requirements that may be imposed by
the Clearing House in its discretion.
Specifically, the amendments would
clarify ICE Clear Europe’s absolute legal
discretion in making certain
determinations, imposing additional
requirements and granting exceptions
relating to the minimum capital
requirement, acceptability of
subordinated loans, acceptability of
controller guarantee, requirements for
additional cash or collateral and the size
of additional guaranty fund
assessments. The amendments would
similarly clarify that the Clearing House
will define the maximum period
between in-depth counterparty reviews
and the threshold for taking further
action on negative changes in Clearing
Member financial condition in its
absolute discretion. ICE Clear Europe
does not believe these amendments
change its existing authority, but rather
state more explicitly the scope of its
discretion, which remains subject to the
Rules and applicable law.
The discussion of document
governance and oversight in the Policy
and Procedures would be replaced with
a new Document Governance and
Exception Handling section that is
substantially the same as that described
above for the Policy, and is consistent
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with other Clearing House policies
recently adopted or modified. 7
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(b) Statutory Basis
ICE Clear Europe believes that the
proposed amendments to the Clearing
Membership Policy and Procedures are
consistent with the requirements of
section 17A of the Act 8 and the
regulations thereunder applicable to it.
In particular, section 17A(b)(3)(F) of the
Act 9 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 Policy and Procedures are
intended to update and more clearly
document the Clearing House’s
procedures for reviewing applications
for clearing membership, criteria for
membership, and on-going monitoring
of membership of ICE Clear Europe. The
amendments update the Policy to better
reflect the ongoing monitoring of
Clearing Members and to update
document governance processes. The
amendments to the Procedures clarify
the discretion that ICE Clear Europe has
to make certain determinations, clarify
certain notification requirements, and
make other drafting improvements. 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 requirements of
section 17A(b)(3)(F).10 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).11
The amendments to the Procedures
are also consistent with relevant
7 See, e.g., The Counterparty Credit Risk Policy
and Procedures as described in Exchange Act
Release No. 34–97169, SR ICEEU–2023–004 (March
20, 2023) 88 FR 17886 (March 24, 2023); the
Investment Management Procedures as described in
Exchange Act Release No. 34–97528, SR ICEEU–
2023–009 (May 19, 2023) 88 FR 33949 (May 25,
2023); the Futures and Options Default
Management Policy as described in Exchange Act
Release No. 34–97383, SR ICEEU–2023–012 (Apr.
26, 2023) 88 FR 27539 (May 2, 2023).
8 15 U.S.C. 78q–1.
9 15 U.S.C. 78q–1(b)(3)(F).
10 15 U.S.C. 78q–1(b)(3)(F).
11 15 U.S.C. 78q–1(b)(3)(F).
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provisions of Rule 17Ad–22.12 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’’.13 As set forth above, the
amendments to the Clearing
Membership Procedures are intended to
clarify and enhance the Clearing
House’s procedures and policies 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 Policy and Procedures
to reflect the Clearing House’s current
practices, and make other updates to
improve clarity, including to state more
clearly the Clearing House’s discretion
to make certain determinations as part
of the application process. 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).14
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’’ 15 among other
requirements. As set forth above, the
amendments update the documentation
governance, review and approval
provisions, in a manner consistent with
other ICE Clear Europe policies and
procedures. As such, in ICE Clear
Europe’s view, the amendments are
consistent with the requirements of Rule
17Ad–22(e)(2).16
12 17
CFR 240.17 Ad–22.
CFR 240.17 Ad–22(e)(18).
14 17 CFR 240.17Ad–22(e)(18).
15 17 CFR 240.17Ad–22(e)(2).
16 17 CFR 240.17Ad–22(e)(2).
13 17
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59549
(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 Policy and
Procedures, which relates to the
Clearing House’s internal processes for
implementation, reviewing and ongoing
monitoring of its membership
requirements and criteria. 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 ability of
an applicant to become a Clearing
Member, 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.
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:
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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–2023–022 on the subject line.
[Release No. 34–98208]
Notice of Intention To Cancel
Registration of Certain Municipal
Advisors Pursuant to Section 15b(c)(3)
of the Securities Exchange Act of 1934
Paper Comments
August 23, 2023.
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
Notice is given that the Securities and
Exchange Commission (the
‘‘Commission’’) intends to issue an
order or orders, pursuant to section
15B(c)(3) of the Securities Exchange Act
of 1934 (the ‘‘Act’’), cancelling the
registrations of the municipal advisors
whose names appear in the attached
Appendix (hereinafter referred to as the
‘‘registrants’’).
Section 15B(c)(3) of the Act provides,
in pertinent part, that if the Commission
finds that any municipal advisor
registered under section 15B is no
longer in existence or has ceased to do
business as a municipal advisor, the
Commission, by order, shall cancel the
registration of such municipal advisor.
The Commission finds that each
registrant listed in the attached
Appendix:
All submissions should refer to file
number SR–ICEEU–2023–022. 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
a.m. and 3 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.
Do not include personal identifiable
information in submissions; you should
submit only information that you wish
to make available publicly. We may
redact in part or withhold entirely from
publication submitted material that is
obscene or subject to copyright
protection. All submissions should refer
to File Number SR–ICEEU–2023–022
and should be submitted on or before
September 19, 2023.
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SECURITIES AND EXCHANGE
COMMISSION
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.17
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023–18551 Filed 8–28–23; 8:45 am]
BILLING CODE 8011–01–P
17 17
CFR 200.30–3(a)(12).
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(i) has not filed any municipal advisor
form submissions with the Commission
through the Commission’s Electronic Data
Gathering and Retrieval (‘‘EDGAR’’) system
since February 2022 (including but not
limited to the annual amendments (form
MA–A) required by 17 CFR 240.15Ba1–
5(a)(1)); and/or
(ii) based on information available from the
Municipal Securities Rulemaking Board (the
‘‘MSRB’’), (a) is not registered as a municipal
advisor with the MSRB under MSRB Rule A–
12(a) and/or (b) does not have an associated
person who is qualified as a municipal
advisor representative under MSRB Rule G–
3(d) and for whom there is a Form MA–I
required by 17 CFR 240.15Ba1–2(b) available
on EDGAR, and/or (c) has not, since February
2022, filed with the MSRB any Form A–12
annual affirmation as required by MSRB Rule
A–12(k); and/or withdrew its registration
from the MSRB without first withdrawing its
registration from the Commission.
Accordingly, the Commission finds
that each of the registrants listed in the
attached Appendix either is no longer in
existence or has ceased to do business
as a municipal advisor.
Notice is also given that any
interested person may, by September 25,
2023 at 5:30 p.m. Eastern Time, submit
to the Commission in writing a request
for a hearing on the cancellation of the
registration of any registrant listed in
the attached Appendix, accompanied by
a statement as to the nature of such
person’s interest, the reason for such
request, and the issues, if any, of fact or
law proposed to be controverted, and
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such person may request to be notified
if the Commission should order a
hearing thereon. Any such
communication should be addressed to
the Commission’s Secretary at the
address below. All comments or
requests received will be posted without
change; the Commission does not edit
personal identifying information from
submissions. You should submit only
information that you wish to make
available publicly.
At any time after September 25, 2023,
the Commission may issue an order or
orders cancelling the registrations of any
or all of the registrants listed in the
attached Appendix, upon the basis of
the information stated above, unless an
order or orders for a hearing on the
cancellation shall be issued upon
request or upon the Commission’s own
motion. Persons who requested a
hearing, or to be advised as to whether
a hearing is ordered, will receive any
notices and orders issued in this matter,
including the date of the hearing (if
ordered) and any postponements
thereof. Any registrant whose
registration is cancelled under delegated
authority may appeal that decision
directly to the Commission in
accordance with Rules 430 and 431 of
the Commission’s rules of practice (17
CFR 201.430 and 431).
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE, Washington, DC 20549.
FOR FURTHER INFORMATION CONTACT:
Mark Elion, Senior Counsel, Office of
Municipal Securities, 100 F Street NE,
Washington, DC 20549, or at (202) 551–
5680.
For the Commission, by the Office of
Municipal Securities, pursuant to delegated
authority.1
Sherry R. Haywood,
Assistant Secretary.
Appendix
Registrant name
Betnun Nathan S ......................
Christen Group, Inc ..................
Southern Cross Financial
Group LLC ............................
TLHocking & Associates LLC ...
OCONNOR & Co SECURITIES, INC ..............................
Capital Alaska LLC ...................
Fray Municipal Securities .........
Massena Associates LLC .........
SUMMERS, CARROLL,
WHISLER LLC ......................
SEC ID No.
867–02495
867–02467
867–02544
867–01054
867–01245
867–02604
867–02064
867–02569
867–01938
[FR Doc. 2023–18552 Filed 8–28–23; 8:45 am]
BILLING CODE 8011–01–P
1 17
E:\FR\FM\29AUN1.SGM
CFR 200.30–3a(a)(1)(ii).
29AUN1
]]>Agencies
[Federal Register Volume 88, Number 166 (Tuesday, August 29, 2023)]
[Notices]
[Pages 59547-59550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18551]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-98207; File No. SR-ICEEU-2023-022]
Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change, as Modified by Amendment No. 1,
Relating to Amendments to the Clearing Membership Policy and Clearing
Membership Procedures
August 23, 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 August 8, 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. On August 22, 2023, ICE Clear Europe filed Amendment
No. 1 to the proposed rule change to make certain changes to the
Exhibits 5A and 5B.\3\ The Commission is publishing this notice to
solicit comments on the proposed rule change, as modified by Amendment
No. 1 (hereafter ``the proposed rule change''), from interested
persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Amendment No. 1 amends the Exhibit 5A and Exhibit 5B to
correctly reflect the addition of the Document Handling subsection
to each document's Table of Contents. The proposed rule change
includes an Exhibit 4A and Exhibit 4B. Exhibit 4A shows the change
that Amendment No. 1 makes to Exhibit 5A, and Exhibit 4B does the
same with respect to attit 5B.
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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 (i) modify its Clearing Membership Policy
(``Policy'') \4\ to
[[Page 59548]]
update certain monitoring and document review procedures and to make
certain drafting clarifications and (ii) amend its Clearing Membership
Procedures (``Procedures'') to clarify the Clearing House's discretion
with respect to certain requirements and to add notification
requirements, among other changes. The updates would also make certain
other non-substantive amendments.
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\4\ Capitalized terms used but not defined herein have the
meanings specified in the Policy and Procedures or, if not defined
therein, the ICE Clear Europe Clearing Rules.
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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
I. Clearing Membership Policy
In the discussion of the purpose of the Policy, the amendments
would change an incorrect reference to ``model documents'' to
``parameter documents'' (reflecting that relevant parameters will be
set out in parameter documents). Further changes would clarify that
Clearing Members are required to notify the Clearing House promptly
when there is any change to its business which would have an impact on
meeting the membership criteria. Additionally, the monitoring of
membership criteria would be revised to reflect that the Clearing House
conducts ongoing (rather than only quarterly or other periodic)
monitoring of compliance with membership criteria. Ongoing monitoring
for this purpose consists of continuous monitoring and additional
trigger-based reviews, including relating to credit and AML/KYC risk
and to daily operational matters (such as margin calls). References to
quarterly reviews of financial position through Audited Annual
Accounts, quarterly review of financial information, quarterly updates
of the Counterparty Rating System (``CRS''), and the requirement to
maintain a watch list would be removed (as such matters relate to
credit issues that are addressed in the Clearing House's Counterparty
Credit Risk Policy,\5\ and do not need to be referenced in this
policy). A cross reference to the Clearing Membership Procedures and
the Counterparty Credit Risk Policy for monitoring information would
also be removed as unnecessary.
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\5\ See Exchange Act Release No. 34-97169 (SR-ICEEU-2023-004)
(March 20, 2023), 88 FR 17886 (March 24, 2023).
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The amendments would also update document governance requirements,
consistent with other ICE Clear Europe policies.\6\ Document review
would be conducted by the document owner or relevant staff, with
approval of the head of department (or their delegate) and the Chief
Risk Officer (or their delegate). The amendments would specify that
document review, at a minimum, would encompass regulatory compliance,
documentation and purpose, implementation, use and open items from
prior reviews. The results of the review would be reported to the
Executive Risk Committee (and in certain cases, to the Model Oversight
Committee). The document owner would aim to remediate any findings,
complete internal governance and obtain regulatory approvals (as
applicable) before the next annual review. The amendments would also
state explicitly that changes to the Policy would need to be approved
in accordance with the Clearing House governance process and take
effect after completion of all necessary internal and regulatory
approvals.
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\6\ See, e.g., The Counterparty Credit Risk Policy and
Procedures as described in Exchange Act Release No. 34-97169, SR
ICEEU-2023-004 (March 20, 2023) 88 FR 17886 (March 24, 2023); the
Investment Management Procedures as described in Exchange Act
Release No. 34-97528, SR ICEEU-2023-009 (May 19, 2023) 88 FR 33949
(May 25, 2023); the Futures and Options Default Management Policy as
described in Exchange Act Release No. 34-97383, SR ICEEU-2023-012
(Apr. 26, 2023) 88 FR 27539 (May 2, 2023).
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Certain other non-substantive typographical and similar corrections
would also be made in the Policy, such as using the correct name of the
Clearing Membership Policy.
II. Clearing Membership Procedures
ICE Clear Europe is proposing to amend its Clearing Membership
Procedures to make certain clarifications and updates, including for
consistency with the amendments to the Policy described above. Under
the discussion of the application process, the amendments would
specifically require notifications by Clearing Members of changes to
their business that may impact the membership criteria, consistent with
the change to the Policy described above. Additionally, under the
diligence process, the amendments would clarify that the applicant
would be required to provide sufficient evidence, details and
information as required by the Rules. The proposed amendment would also
state that the membership team would ensure that all applicants would
be added to the applicable schedule of insured entities by the ICE
Group insurer.
The amendments would remove a provision that the Product Risk
Committee would be notified of new applications, after approval of an
application by the Executive Risk Committee. ICE Clear Europe does not
believe notification of applications to the Product Risk Committee is
necessary in light of the duties and functions of those committees. The
proposed amendments would also clarify that the Circular confirming
approval is issued once the application is approved. In addition, the
amendments would make non-substantive clarifications concerning the
requirement for Clearing Members to respond in a timely manner to any
additional information requested by the Clearing House.
The proposed changes would also clarify and make consistent
throughout the Procedures certain provisions relating to decisions that
may be taken or requirements that may be imposed by the Clearing House
in its discretion. Specifically, the amendments would clarify ICE Clear
Europe's absolute legal discretion in making certain determinations,
imposing additional requirements and granting exceptions relating to
the minimum capital requirement, acceptability of subordinated loans,
acceptability of controller guarantee, requirements for additional cash
or collateral and the size of additional guaranty fund assessments. The
amendments would similarly clarify that the Clearing House will define
the maximum period between in-depth counterparty reviews and the
threshold for taking further action on negative changes in Clearing
Member financial condition in its absolute discretion. ICE Clear Europe
does not believe these amendments change its existing authority, but
rather state more explicitly the scope of its discretion, which remains
subject to the Rules and applicable law.
The discussion of document governance and oversight in the Policy
and Procedures would be replaced with a new Document Governance and
Exception Handling section that is substantially the same as that
described above for the Policy, and is consistent
[[Page 59549]]
with other Clearing House policies recently adopted or modified.\7\
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\7\ See, e.g., The Counterparty Credit Risk Policy and
Procedures as described in Exchange Act Release No. 34-97169, SR
ICEEU-2023-004 (March 20, 2023) 88 FR 17886 (March 24, 2023); the
Investment Management Procedures as described in Exchange Act
Release No. 34-97528, SR ICEEU-2023-009 (May 19, 2023) 88 FR 33949
(May 25, 2023); the Futures and Options Default Management Policy as
described in Exchange Act Release No. 34-97383, SR ICEEU-2023-012
(Apr. 26, 2023) 88 FR 27539 (May 2, 2023).
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(b) Statutory Basis
ICE Clear Europe believes that the proposed amendments to the
Clearing Membership Policy and Procedures are consistent with the
requirements of section 17A of the Act \8\ and the regulations
thereunder applicable to it. In particular, section 17A(b)(3)(F) of the
Act \9\ 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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\8\ 15 U.S.C. 78q-1.
\9\ 15 U.S.C. 78q-1(b)(3)(F).
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The proposed changes to the Clearing Membership Policy and
Procedures are intended to update and more clearly document the
Clearing House's procedures for reviewing applications for clearing
membership, criteria for membership, and on-going monitoring of
membership of ICE Clear Europe. The amendments update the Policy to
better reflect the ongoing monitoring of Clearing Members and to update
document governance processes. The amendments to the Procedures clarify
the discretion that ICE Clear Europe has to make certain
determinations, clarify certain notification requirements, and make
other drafting improvements. 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 requirements of section
17A(b)(3)(F).\10\ 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).\11\
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\10\ 15 U.S.C. 78q-1(b)(3)(F).
\11\ 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.\12\ 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''.\13\ As set forth above, the amendments to the Clearing
Membership Procedures are intended to clarify and enhance the Clearing
House's procedures and policies 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 Policy and Procedures to reflect the
Clearing House's current practices, and make other updates to improve
clarity, including to state more clearly the Clearing House's
discretion to make certain determinations as part of the application
process. 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).\14\
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\12\ 17 CFR 240.17 Ad-22.
\13\ 17 CFR 240.17 Ad-22(e)(18).
\14\ 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'' \15\ among other requirements. As set forth
above, the amendments update the documentation governance, review and
approval provisions, in a manner consistent with other ICE Clear Europe
policies and procedures. As such, in ICE Clear Europe's view, the
amendments are consistent with the requirements of Rule 17Ad-
22(e)(2).\16\
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\15\ 17 CFR 240.17Ad-22(e)(2).
\16\ 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 Policy
and Procedures, which relates to the Clearing House's internal
processes for implementation, reviewing and ongoing monitoring of its
membership requirements and criteria. 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 ability of an applicant to become a Clearing Member, 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.
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:
[[Page 59550]]
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-2023-022 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-2023-022. 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
a.m. and 3 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.
Do not include personal identifiable information in submissions;
you should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-ICEEU-2023-022 and
should be submitted on or before September 19, 2023.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-18551 Filed 8-28-23; 8:45 am]
BILLING CODE 8011-01-P
