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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices
D. Delivery Procedures
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i. Anti-Money Laundering The proposed rule change would add new paragraph 1.1d to the Delivery Procedures to obligate Clearing Members to conduct appropriate antimoney laundering due diligence for any transferors and transferees and provide relevant documentation to ICE Clear Europe and/or the Clearing Member.
The proposed amendments to paragraphs 5.4 and 5.5 of the Delivery Procedures would add language to clarify that transferors and transferees that are customers would be bound by the F&O Standard Terms, including with respect to delivery of information, and also to clarify that transferors and transferees are not customers of ICE
Clear Europe for purposes of relevant anti-money laundering laws and other Applicable Law.
ii. Updates to ICE Clear Europe Systems The proposed rule change would add new definitions in the Delivery Procedures to ECS, MFT, ICE
FEC, and MPFE to ensure there are consistent references to ICE Clear Europe systems in the various Amended Documents. The proposed rule change would define the term ECS to mean the extensible clearing system that provides functionality for position maintenance including close-outs, options exercise and delivery, in addition to cash and collateral management for the Clearing House or any successor system. The proposed rule change would define the term MFT to mean the managed file transfer system through which the Clearing House provides access to all clearing reports and data files. The proposed rule change would define the term ICE FEC to mean the single user interface used by the Clearing House, offering functions to view and manage trades, transfers, allocations and claims. The proposed rule change also would define the term MPFE to mean the futures expiry report generated by the Clearing House.
Similarly, the proposed rule change would remove existing references to the legacy ICE System Crystal throughout the Delivery Procedures and replace them with new references to ECS, MFT, and ICE FEC, which are the systems that ICE Clear Europe now uses. Similarly, the proposed rule change would delete Delivery Documentation Summaries and form references throughout the Delivery Procedures where ECS has replaced the manual submission of forms to ICE
Clear Europe. Specifically, these changes would be made in Part B ICE
Gasoil Futures, Part D ICE Futures UK

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Natural Gas Contracts, Part F ICE
Endex TTF Natural Gas Contracts, Part G ICE Endex Gaspool Natural Gas Contracts, Part H ICE Endex NCG
Natural Gas, Part I ICE Endex ZTP
Natural Gas Contracts, Part N ICE
Deliverable US Emissions Contracts, Part Q Financials & Softs White Sugar Contracts, Part U Financials & Softs Gilt Contract and Part Z Equity Futures/Options.
iii. Other Updates ICE Clear Europe proposes changes to the Delivery Procedures to update various operational practices and to make other updates and drafting improvements.
The proposed rule change would add a new paragraph 7 to the Delivery Procedures to reference the alternative delivery procedure for Emission Contracts as set out in paragraph 7 of Part A of the Delivery Procedures ICE
Endex Deliverable EU Emissions Contracts. Subsequent paragraphs would be renumbered and conforming amendments to cross-references would be made.
The proposed rule change would amend Part A ICE Endex Deliverable EU Emissions Contracts of the Delivery Procedures to change existing references to Account, which is no longer a defined term in the Delivery Procedures, to the defined term Registry Account.
The proposed rule change would amend the defined term Contract Date. Under the current definition, Contract Date means, for an ICE Endex EUA, an individual Business Day on which a trading commences, b trading ceases, and c the Delivery Period commences for those trades executed on that Business Day. The proposed rule change would delete clause c of the current definition because ICE Clear Europe found it was redundant in light of clauses a and b. ICE Clear Europe represents that the term Contract Date is only used in connection with daily contracts, and in that context, only one daily contract is available at a time, and so the date on which trading commences and trading ceases sufficiently defines the Contract Date.
The proposed rule change also would delete Section 9.3 ICE EUA and EUAA
Auction Contracts, because Part A no longer references auction contracts.
The proposed rule change would also amend paragraph 7 Emissions Alternative Delivery Procedure EADP in Part A following the entry into an EADP Agreement i.e., an agreement to adopt an EADP by a Clearing Member and ICE Clear Europe.
In such event, paragraph 7.3 currently provides that the existing Contract
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would be liquidated on the basis of the Exchange Delivery Settlement Price.
Under paragraph 7.3 as revised, the existing Contract would no longer be liquidated, but instead would be dealt with in the manner specified in the EADP. If the existing Contract were to be liquidated under the EADP, this would be done on the basis of the Exchange Delivery Settlement Price.
Delivery under the EADP Agreement would be subject to the requirements set out in the entirety of paragraph 7
instead of just paragraph 7.3. The proposed rule change also would amend paragraph 7.5 with respect to the timing and process for addressing a Failed Delivery. Current paragraph 7.5
provides that in the event that the Clearing Member and ICE Clear Europe are unable to enter into an EADP
Agreement or effect delivery under EADP by the close of business on the Business Day following the day of the Failed Delivery, ICE Clear Europe will refer the matter to ICE Endex and Invoice Back affected Contracts and may itself, begin disciplinary proceedings, levy a fine, call additional Margin or declare an Event of Default. The proposed amendments to paragraph 7.5
would provide that the Clearing Member and ICE Clear Europe would have a reasonable period of time after the Failed Delivery to enter into an EADP Agreement or effect delivery under the EADP, rather than by the close of business on the Business Day following the day of the Failed Delivery, before ICE Clear Europe may refer the matter to the relevant exchange. The proposed amendments to paragraph 7.5
also would provide that ICE Clear Europe will consider in its discretion what other reasonable next steps it should take, if any. As an example, ICE
Clear Europe may decide to take one of the currently listed actions, but would not be limited by such list and would not be required to Invoice Back affected Contracts.
The proposed rule change would delete Part M ICE Endex German Power Futures, because these contracts have been delisted from the relevant exchange. The proposed rule change also would delete outdated references to ICE OTC Contracts in Part N ICE
Deliverable US Emissions Contracts Bilateral Delivery, as revised.
In Part U Financials & Softs Gilt Contracts, the proposed rule change would add a new paragraph 2 Failed Settlement and Non-Delivery of Stock to establish a procedure to address the Sellers non-delivery of securities under a Financials & Softs Gilt Contract, including the actions ICE Clear Europe may take to promote settlement in
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