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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Notices the Commissions Rules of Practice, the burden to demonstrate that a proposed rule change is consistent with the Exchange Act and the rules and regulations issued thereunder . . . is on the self-regulatory organization SRO
that proposed the rule change. 28 The description of a proposed rule change, its purpose and operation, its effect, and a legal analysis of its consistency with applicable requirements must all be sufficiently detailed and specific to support an affirmative Commission finding, and any failure of an SRO to provide this information may result in the Commission not having a sufficient basis to make an affirmative finding that a proposed rule change is consistent with the Exchange Act and the applicable rules and regulations.29 The Commission concludes that, because NYSE Arca has not demonstrated that its proposal is designed to prevent fraudulent and manipulative acts and practices or to protect investors and the public interest, the Exchange has not met its burden to demonstrate that its proposal is consistent with Section 6b5 of the Exchange Act.30 For this reason, the Commission must disapprove the proposal.
IV. Conclusion
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For the reasons set forth above, the Commission does not find, pursuant to Section 19b2 of the Exchange Act,31
that the proposed rule change is consistent with the requirements of the Exchange Act and the rules and regulations thereunder applicable to a national securities exchange, and in particular, with Section 6b5 of the Exchange Act.32
It is therefore ordered, pursuant to Section 19b2 of the Exchange Act, that proposed rule change SR
NYSEArca202056 is disapproved.
manipulation that the proposal raises, as described above.
28 Rule 700b3, Commission Rules of Practice, 17 CFR 201.700b3.
29 See id.
30 In disapproving this proposed rule change, the Commission has considered the proposed rules impact on efficiency, competition, and capital formation. See 15 U.S.C. 78cf. Although the commenter see SIFMA Letter, supra note 14, at 4
asserts that the current Beneficial Holders Rule puts newer and smaller sponsors at an unnecessary disadvantage to larger sponsors having the enterprise-wide scale and distribution reach to gather assets in the months after launch, neither the commenter nor the Exchange has provided data to support this conclusion.
31 15 U.S.C. 78sb2.
32 15 U.S.C. 78fb5.

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For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.33
J. Matthew DeLesDernier, Assistant Secretary.
FR Doc. 202104676 Filed 3521; 8:45 am BILLING CODE 801101P

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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 a Purpose
SECURITIES AND EXCHANGE
COMMISSION
Release No. 3491240; File No. SRICEEU
2021006

Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to the ICE Clear Europe CDS Clearing Stress Testing Policy, CDS End of Day Price Discovery Policy, CDS Risk Model Description and CDS Risk Policy and CDS Parameters Review Procedures March 2, 2021.

Pursuant to Section 19b1 of the Securities Exchange Act of 1934
Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on February 23, 2021, ICE Clear Europe Limited ICE Clear Europe or the Clearing House filed with the Securities and Exchange Commission Commission the proposed rule changes described in Items I, II and III below, which Items have been prepared 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 ICE Clear Europe Limited proposes to modify certain provisions of its CDS
Clearing Stress Testing Policy, CDS End of Day Price Discovery Policy, CDS Risk Model Description and CDS Risk Policy together, the Documents and to adopt a new document titled CDS
Parameters Review Procedures the Parameters Procedures.
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 places specified in Item IV below. ICE
33 17

CFR 200.303a12.
U.S.C. 78sb1.
2 17 CFR 240.19b4.
1 15

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ICE Clear Europe is proposing to amend the Documents and institute the new Parameters Procedures principally to describe more fully certain existing Clearing House practices, as discussed herein. ICE Clear Europe is also proposing to make certain enhancements to CDS stress testing, specifically to incorporate the impact of the COVID19 pandemic into its stress testing framework.
CDS End of Day Price Discovery Policy The amendments to this policy would generally clarify the process to determine prices for a particular instrument when fewer than three Clearing Members have open interest in that instrument, in order to provide more reliable pricing in that scenario.
The amendments would also make minor terminology updates to conform uses of defined terms, correctly reference various ICE Clear Europe personnel and operations and make similar typographical corrections throughout the document and add a new table.
Currently, the CDS End of Day Price Discovery Policy states that if fewer than three CDS Clearing Members have cleared open interest in an instrument, ICE Clear Europe may require all CDS
Clearing Members to provide a price submission for that instrument. ICE
Clear Europe proposes to supplement this concept to provide more flexibility to ensure enough submissions to enable effective determination of reliable endof-day prices and thereby facilitate an accurate and stable variation margin process. Specifically, the amendments are designed to produce more reliable prices by increasing the probability of receiving multiple submissions. As amended, the policy would state that ICE Clear Europe believes that tradeable quotes submitted by CDS Clearing Members are the preferred source of data and should be used where possible and reliable, meaning where there is more than one CDS Clearing Member with which the quote could be crossed.
Where there are not enough CDS
Clearing Members to enable tradeable quotes i.e., quotes at which a member would transact to be crossed with more than one CDS Clearing Member i.e., fewer than three CDS Clearing Members
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