Quiero saber acerca de...

Federal Register / Vol. 86, No. 1 / Monday, January 4, 2021 / Notices SECURITIES AND EXCHANGE
COMMISSION
Release No. 3490806; File No. SRICEEU
2020018

Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to Amendments to the ICE Clear Europe CDS Procedures and CDS Default Management Policy December 28, 2020.

Pursuant to Section 19b1 of the Securities Exchange Act of 1934
Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on December 14, 2020, 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 Agencys 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 CDS Procedures the CDS Procedures or the Procedures to update the requirements for a Clearing Member to be approved to be a CDS CommitteeEligible Clearing Member for purposes of the CDS Default Committee, as well as certain other updates and clarifications, and to modify its CDS
Default Management Policy the CDS
Default Management Policy or Policy to make corresponding updates to the requirements for a Clearing Member to be eligible to serve on the CDS Default Committee, as well as to provide more detail with respect to review and testing of its default procedures, remove appendices and make certain other updates and clarifications to be consistent with other ICE Clear Europe policies.
II. Clearing Agencys 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 1 15
2 17

U.S.C. 78sb1.
CFR 240.19b4.

VerDate Sep<11>2014

17:28 Dec 31, 2020

Jkt 253001

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 Agencys Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change, Security-Based Swap Submission or Advance Notice a Purpose ICE Clear Europe is proposing to amend its CDS Procedures as to the following: i The requirements for a Clearing Member to be approved to be a CDS Committee-Eligible Clearing Member, ii the courses of action for the Clearing House if a CDS CommitteeEligible Clearing Member is unable to take part in the CDS Default Committee for the Relevant CDS Default Committee Period for which it is due to take part, iii the confidentiality obligations of CDS Default Committee Members and CDS Default Committee Participants and the limitations on liability applicable to such persons, iv timing requirements with respect to the submission of CDS
Trade Particulars and v various drafting clarifications and improvements. ICE Clear Europe is also proposing to update the CDS Default Management Policy which would provide further detail with respect to the requirements for a Clearing Member to be Committee-Eligible for purposes of serving on the CDS Default Committee, and to make various drafting clarifications and improvements, as consistent with the proposed updates to the Procedures.
I. CDS Procedures General Drafting Clarifications and Improvements The amendments to the Procedures would clarify that the term CDS
Committee-Eligible Clearing Members must be approved in accordance with paragraph 5.2 of the Procedures and continue to meet the criteria of such Paragraph. As described below, paragraph 5.2, as proposed to be amended, would specify in detail the requirements for a Clearing Member to be approved to be a CDS CommitteeEligible Clearing Member.
Submission and Acceptance of CDS
Contracts The amendments would revise paragraph 4.4 of the Procedures, which describes the timing requirements for submitting CDS Trade Particulars, to clarify that with respect to CDS Trade Particulars submitted after 6:00 p.m. on a Business Day or on a day that is not a Business Day, unless a revocation
PO 00000

Frm 00121

Fmt 4703

Sfmt 4703

169

right exists and is exercised or unless otherwise stated in circular, among other existing exceptions, such CDS
Trade Particulars would be deemed to have been submitted at 8:00 a.m. on the following Business Day. Furthermore, the Procedures would provide that if the Trade Date specified in the CDS Trade Particulars is not a Business Day, then the relevant CDS Trade Particulars would be rejected. This reflects current Clearing House practice.
CDS Default Committee The amendments to the Procedures in paragraph 5 would update the requirements for a Clearing Member to be approved to be a CDS CommitteeEligible Clearing Member. Pursuant to paragraph 5.2, as proposed to be amended, the Clearing Member would need to meet the following conditions in order to be eligible: a In the event that it has one or more Affiliates that are CDS Clearing Members, it has the longest period of membership of the Clearing House among such Affiliates;
b it has a London-based CDS trading desk; and c it is deemed appropriate to be a CDS Default Committee Member by the Clearing House at its discretion. The Clearing House would maintain a list of all CDS Committee-Eligible Clearing Members. The procedure for maintaining the CDS Default Committee Participant List including adding CDS
Clearing Members to, removing CDS
Clearing Members from or changing the order of Clearing Members on the CDS
Default Committee Participant List would be determined from time to time by the Clearing House at its discretion.
Certain such matters would be addressed in further detail in the Policy, as discussed below. CDS Clearing Members would be able to provide information of relevance to the Clearing House with respect to their own inclusion or omission or order on the list, but such information would not be binding on the Clearing House.
Additionally, the Procedures would state that ICE Clear Europe may also share the CDS Default Committee Participant List with any other clearing organization.
Amendments to paragraph 5.3 would add that if a CDS Committee-Eligible Clearing Member considers that it is unable to take part in the CDS Default Committee for the Relevant CDS Default Committee Period for which it is due to take part, it may request to postpone its participation for that period. ICE Clear Europe could, at its discretion, approve such request and, if so, the following events would take place: a That CDS
Committee-Eligible Clearing Member would be listed so as to take part in the
E:FRFM04JAN1.SGM

04JAN1