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Federal Register / Vol. 86, No. 104 / Wednesday, June 2, 2021 / Notices with post-default Porting Notices, as discussed herein.
This proposal results in a number of proposed changes. In Rule 101, the definition of Default Portability Preference definition would be deleted. The related concept of NonTransfer Positions in Rule 101 would be deleted as this defined term would no longer be used following removal of the Default Portability Preference concept. A new definition of Porting Notice which refers to a post-default indication of a porting preference would be introduced in Rule 101, with a cross-reference to the existing definition of that term in the Standard Terms Annex.
In Rule 904, which addresses procedures for post-default transfer of contracts and margin, various changes are proposed to implement the remove of Default Portability Preferences.
Specifically, changes are proposed to Rules 904g and 904j to remove the references to Default Portability Preference and instead refer to the process around the use of Porting Notices. Rule 904g would be amended to state that consent to become a Transferee Clearing Member can only be evidenced in a Porting Notice where that Clearing Member has countersigned the notice or otherwise agreed in writing. This clarifies that simply being named by a customer as a potential Transferee Clearing Member is insufficient. The changes proposed at Rules 904m, 904p, 904u and 904w reflect the deletion of the definition of Default Portability Preference.
Related changes are proposed in Rule 907d, which relates to the Clearing Houses ability to rely on certain information provided to it. References to Default Portability Preference and NonTransfer Positions have been deleted.
Instead, in connection with porting the Clearing House will be entitled to rely on any information provided to it by a defaulter prior to declaration of default in respect of Contracts, Customer-CM
Transactions, Margin and the Accounts in which Contracts and Margin were recorded or which relate to particular Customers or particular groups of Customers. This would allow the Clearing House to continue to be able to act efficiently in default scenarios, and be able to rely on more of the relevant information available to it in relation to the Defaulter. Amendments would also clarify that the Clearing House has no obligation to inquire of any person as to any Porting Notice.
The CDS Standard Terms paragraph 6, F&O Standard Terms paragraph 6
and FX Standard Terms paragraph 6
would be amended to remove references
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to Default Portability Preferences and include reference to Porting Notices.

Commodity EFRP definition which is not otherwise used would be deleted.

b. Introducing Consistency to the Definitions Relating to Energy Transactions A series of amendments are proposed to certain definitions relating to Energy transactions, simplifying and making such terms consistent with certain amendments previously made to definitions for other F&O Products.4
Consistent with such prior amendments, in Rule 101, the Energy definition would be shortened to refer to the term Market rather than naming all specific ICE markets. New definitions would be introduced for Energy Matched Transaction referencing an energy transaction conducted on a Market and a revised definition of Energy Transaction would be added covering an Energy Matched Transaction or an Energy Block Transaction meeting specified criteria.
The changes are consistent with the approach used in the definitions of Financials & Softs Matched Transaction and Financials & Softs Transactions.
The introduction to the General Contract Terms would similarly be amended to remove references to named ICE markets and instead use the more generic term relevant Market.

d. Amendments to Product Termination Rules Rule 105 would be amended to shorten the termination period generally from four months to one month for a service withdrawal for a product in circumstances in which there is no open interest in the relevant Set.
In such circumstances, in ICE Clear Europes view, a longer termination period is unnecessary, since no action is required by Clearing Members to close out their positions. Proposed amendments would also clarify that where a product termination occurs following actions of the relevant exchange e.g., a de-listing, the notice period required under the exchanges rules would instead apply and the exchange would be responsible for providing such notice.

c. EFRP Exchange for Related Position Definition Amendments Several changes to the Rules are proposed to address more clearly exchange for related position transactions referred to as EFRPs under applicable Market rules, including to revise defined terms and clarify that such transactions are available on exchanges for products other than soft commodities.
In Rule 101, a new EFRP definition would be added, to be defined using a similar structure to that for EFP and EFS
transactions. Also in Rule 101, in the EFS definition would be clarified to refer only to exchange for swaps or similar transactions under Market Rules and to remove an existing reference to exchange for related positions, which would now be covered by the EFRP
definition. In the Financials & Softs Block Transaction definition, reference to Soft Commodity EFRPs would be widened to include all EFRPs under all Market Rules, as Soft Commodity EFRPs are specific to ICE Futures Europe. This would be in line with the definitions for EFP and EFS
transactions. Accordingly, the Soft 4 See Exchange Act Release No. 3487275 File No. SRICEEU2019020 Oct. 10, 2019, 84 FR
55649 Oct. 17, 2019 changes to definitions using the term Market.

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e. Amendments to the Termination Rules for Clearing Members Amendments are proposed to Rule 209d to facilitate membership terminations in the context of a corporate group reorganization where a new Clearing Member that is an Affiliate will be receiving the terminating Clearing Members Open Contract Positions. The amendment would establish an exception to the requirement for terminating Clearing Members to immediately upon service of a Termination Notice pay to the Clearing House Assessment Contributions equal to three times the required relevant guaranty fund contribution. In ICE Clear Europes view, such an exception is warranted since all positions would be received by an affiliated Clearing Member in good standing that would remain liable with respect to any obligations arising from or related to the holding of such positions under the Rules including as to future Assessment Contributions.
Rule 209d would be further amended to clarify that references in the Clearing Rules to Assessment Contributions being called or to Guaranty Fund Contributions being replenished or applied, where the Clearing Member has provided Permitted Cover to the Clearing House whether under Rule 209d or prior to the Clearing Member serving its termination notice or the Termination Date, would be interpreted as a reference to that Permitted Cover being applied. The new reference to Permitted Cover which has been provided prior to the serving of a termination notice or a Termination Date would clarify that, as is currently intended, the Cover
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