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lotter on DSK11XQN23PROD with NOTICES1

Federal Register / Vol. 86, No. 117 / Tuesday, June 22, 2021 / Notices obligations require similar levels of services and infrastructure.
With respect to the specific elements of ICE Trade Vaults fee structure, the Commission notes the following. First, the fixed component of ICE Trade Vaults fees would be consistent with the applicant recovering the fixed costs investment associated with setting up and maintaining a user account, while the variable component would be consistent with the applicant recovering marginal costs of operation, i.e., costs that increase with the provision of SDR
services to the user. Second, the Commission believes that the lower minimum maintenance fee that ICE
Trade Vault imposes on third party reporters is consistent with third party reporters and their non-user clients placing a lower burden on ICE Trade Vaults staff, resources, and systems.
Non-users would not require ICE Trade Vault to incur onboarding costs and costs associated with the maintenance of user accounts. To the extent that third party reporters are more efficient users of ICE Trade Vaults reporting infrastructure than other categories of users, ICE Trade Vault could anticipate lower costs associated with trade messages reported by third party reporters on behalf of their non-User clients.
Third, the Commission believes the differentiation in fees between third party reporters and execution agents is consistent with ICE Trade Vaults approach of attributing fees to entities that are directly involved in trade execution and is fair, reasonable, and not unreasonably discriminatory.132 In the case of an execution agent, ICE
Trade Vault states that such an entity is directly involved in the execution of the transaction reported to ICE Trade Vault.
As such, the execution agent is directly assessed fees as any other entity that is directly involved in the execution of a transaction, whereas the underlying funds are not charged a fee. In contrast, a third party reporter is not directly involved with the execution of the reported transaction and simply provides a service to counterparties that are directly involved with execution of the reported transaction and also have an obligation to report. Therefore, ICE
Trade Vault assesses a fee to a third party reporter for each of the underlying reporting parties on whose behalf the third party reporter reports the trades to ICE Trade Vault. ICE Trade Vault further states that it will create an invoice for 132 For example, the minimum monthly fee due from a third party reporter submitting data for two accounts would be $400, while the minimum due from an execution agent submitting data for two accounts would be $375.

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each of underlying reporting party as if the underlying reporting party were a user. The Commission understands that such an arrangement allows ICE Trade Vault to collect fees from the underlying reporting parties.133
Fourth, the Commission believes that the fees that ICE Trade Vault charges a clearing agency, while different than those imposed on other types of users, are fair, reasonable, and not unreasonably discriminatory. Because of their central role in many security-based swap transactions and their provision of netting and compression services to members clearing agency users are directly involved in, and report a significant number of security-based swaps.134 To support this category of users, ICE Trade Vault has to incur additional costs to handle large volumes of transactions generated over a short period of time.
Taking into account the above, the Commission believes that the ITV
Application sets fees at levels that are fair and reasonable and not unreasonably discriminatory.
E. Recordkeeping 1. Summary of ICE Trade Vaults Application According to ICE Trade Vault, users access ICE Trade Vault through a webbased front-end that requires user systems to a satisfy the minimum computing system and web browser requirements specified in the ICE Trade Vault Technical Guides; b support HTTP 1.1 and 128-bit or stronger SSL
data encryption; and c the most recent version of Chrome.135 Trade information submitted to ICE Trade Vault is saved in a non-rewriteable, non-erasable format, to a redundant, local database and a remote disaster recovery database in near real-time; the database of trade information submitted to ICE Trade Vault is backed-up to tape daily with tapes moved offsite weekly.136
Counterparties individual trade data records remain available to users at no charge for online access through ICE
Trade Vault from the date of submission until five years after expiration of the trade last day of delivery or settlement 133 See
ITV Pricing Schedule, Ex. M.1.
Regulation SBSR Adopting Release, 81 FR
at 53630 the Commission estimating that there will be approximately 760,000 reportable events per year that are clearing transactions or life cycle events associated with clearing transactions.
135 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 2; see also Swap Data Repository Rulebook, Security-Based Swap Data Reporting Annex, Ex. HH.2, sec. 3.7.
136 See Swap Data Repository Rulebook, SecurityBased Swap Data Reporting Annex, Ex. HH.2, sec.
7.1; see also Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 3.

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as defined for each product.137 After the initial five-year period, counterparties trade data will be stored off-line and remain available upon a three-day advance request to ICE Trade Vault, until ten years from the termination date.138 According to ICE
Trade Vault, users will retain unimpaired access to their online and archived trade data.139 However, if a user or its regulator requests or requires archived trade information from ICE
Trade Vault to be delivered other than via the web-based front-end or the application programming interface API or in a non-standard format, such user may be required, in accordance with the ICE Trade Vault schedule of fees and charges, to reimburse ICE Trade Vault for its reasonable expenses in producing data in response to such request or requirement as such expenses are incurred.140 Similarly, ICE Trade Vault may require a user to pay all reasonable expenses associated with producing records relating to its transactions pursuant to a court order or other legal process, as those expenses are incurred by ICE Trade Vault, whether such production is required at the instance of such user or at the instance of another party with authority to compel ICE
Trade Vault to produce such records.141
2. Discussion Rule 13n5b4 of the Exchange Act requires an SDR to maintain transaction data and related identifying information for not less than five years after the SBS
expires and historical positions for not less than five years in a place and format that is readily accessible and usable to the Commission and other persons with authority to access or view such information and in an electronic format that is non-rewriteable and nonerasable.142 Rule 13n7 requires an SDR
to make and keep current books and records relating to its business for at least five years, and for the first two years, keep such records in a place that is immediately available to representatives of the Commission for inspection and examination.143 In addition, Rule 13n5b8 requires an SDR to make and keep current a plan to ensure that the transaction data and
134 See
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137 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 3.
138 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 3.
139 See id.
140 See id.; see also Swap Data Repository Rulebook, Security-Based Swap Data Reporting Annex, Ex. HH.2, sec. 7.1.
141 See id.
142 17 CFR 240.13n5b4.
143 17 CFR 240.13n7.

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