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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices
lotter on DSK11XQN23PROD with NOTICES1

The proposed rule change would amend paragraph 7.2 to clarify that the Commissioner does not have to continue investigating a complaint if the complaint is not an Eligible Complaint.
In addition, the proposed rule change would amend paragraph 7.3 to clarify that the Commissioner would only be required to produce a final response where the complaint is an Eligible Complaint.
The proposed rule change would amend paragraph 7.6 to ensure that the Commissioner has access to all relevant personnel including directors, officers and other persons to whom functions have been outsourced that may be needed for the purposes of the Eligible Complaint. In addition, the proposed rule change would amend paragraph 7.8
to obligate ICE Clear Europe to inform the Complainant of an alternative Commissioner, when one is appointed, within five Business Days of the date of appointment.
The proposed rule change would also amend paragraph 8.1 to state explicitly that ICE Clear Europe is required to consider the Commissioners report and recommendations, in addition to informing the Commissioner of any proposed steps it would take in response to the report and recommendations. In addition, the proposed rule change would also make other non-substantive drafting clarifications in paragraph 8.1, and correct typographical errors in paragraphs 8.2 and 8.3. Lastly, the proposed rule change would amend paragraph 11 to include the Investigator as a person subject to the confidentiality obligations with respect to the complaint, and make certain drafting clarifications.
H. General Contract Terms Similar to certain of the changes to Rules described above, the proposed rule change would amend the introduction to the General Contract Terms by removing references to named ICE markets and, in their place, would use the more generic term relevant Market. The proposed rule change would also add the standard term Amendments to the General Contract Terms to clarify that the terms of any Contract may be amended in the same way as ICE Clear Europe may amend the Rules in accordance with Rule 109
Alteration of Rules, Procedures, Guidance and Circulars.
III. Discussion and Commission Findings Section 19b2C of the Act directs the Commission to approve a proposed rule change of a self-regulatory
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organization if it finds that such proposed rule change is consistent with the requirements of the Act and the rules and regulations thereunder applicable to such organization.36 For the reasons given below, the Commission finds that the proposed rule change is consistent with Sections 17Ab3F, 17Ab3G, and 17Ab3H of the Act,37 and Rules 17Ad22e1, 17Ad22e2i, 17Ad 22e6ii, 17Ad22e10, 17Ad 22e13, 17Ad22e14, 17Ad 22e17i, and 17Ad22e18.38
A. Consistency With Section 17Ab3F of the Act Section 17Ab3F of the Act requires, among other things, that the rules of ICE Clear Europe be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent applicable, derivative agreements, contracts, and transactions, as well as to assure the safeguarding of securities and funds which are in the custody or control of ICE Clear Europe or for which it is responsible.39
As discussed above, the proposed rule change would make a number of clarifications and drafting improvements to the Amended Documents, to ensure that the Amended Documents are clear, consistent, and provide an enforceable legal basis for ICE Clear Europes activities. In the Commissions view, a lack of clarity and consistency in ICE Clear Europes Rules and Procedures could hinder ICE Clear Europes ability to promptly and accurately clear and settle transactions and safeguard securities and funds, by possibly leading to disputes over the terms of transactions. Likewise the Commission believes a lack of enforceable legal basis could undermine the legitimacy and finality of ICE Clear Europes actions in clearing and settling transactions. Thus, the Commission believes the proposed rule change, in general, should help ensure that ICE
Clear Europe is able to promptly and accurately clear and settle transactions and safeguard securities and funds which are in its custody or control or for which it is responsible.
In particular, the Commission believes all of the proposed changes to the Rules, as discussed in Part II.A
above, would help ensure that ICE Clear 36 15

U.S.C. 78sb2C.
U.S.C. 78q1b3F, 15 U.S.C. 78q 1b3G, and 15 U.S.C. 78q1b3H.
38 17 CFR 240.17Ad22e1, 17Ad22e2i, 17Ad22e6ii, 17Ad22e10, 17Ad22e13, 17Ad22e14, 17Ad22e17i, and 17Ad 22e18.
39 15 U.S.C. 78q1b3F.
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Europe is able to promptly and accurately clear and settle transactions and safeguard securities and funds which are in its custody or control or for which it is responsible. For example, the Commission believes the changes to Rule 904 Transfer of Contracts and Margin on a Clearing Member Event of Default, Rule 907 Administrative matters concerning an Event of Default, and to relevant definitions in Rule 101
would enhance ICE Clear Europes default planning and post-default porting processes by providing an EMIR-compliant post-default porting preference structure using Porting Notices that require written consent by the designated Transferee Clearing Member. The Commission further believes that this aspect of the proposed rule change would help facilitate the porting of Customer positions and collateral and the settlement of the transactions resulting from such transfers, which in turn would help to ensure that ICE Clear Europe is able to promptly and accurately clear and settle transactions in the event of a Clearing Members default and safeguard securities and funds which are in its custody or control or for which it is responsible. Similarly, the Commission believes the changes to Rule 901aiv to clarify that the declaration of an Event of Default in respect of one Clearing Member is a circumstance in which ICE Clear Europe can declare an Event of Default in respect of another Clearing Member that is a parent or a subsidiary of such Clearing Member would better enable ICE Clear Credit to invoke such default declaration powers and thereby prevent or reduce losses that could result from affiliate crossdefaults. The Commission further believes that losses from a default could interfere with ICE Clear Europes ability to clear and settle transactions and safeguard securities and funds.
Therefore, the Commission believes that these aspects of the proposed rule change, in facilitating ICE Clear Europes ability to respond to defaults and thereby prevent or reduce losses, would help to ensure that ICE Clear Europe is able to promptly and accurately clear and settle transactions and safeguard securities and funds which are in its custody or control or for which it is responsible. Moreover, the Commission believes the changes to add new Rule 301o, which would allow ICE Clear Europe to request information when needed on account balances of nominated accounts of the Clearing Member at financial institutions, including for the purpose of calling on available cash where the Clearing
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