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lotter on DSK11XQN23PROD with NOTICES1

Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices accordance with the contract terms and the requirements of the CREST central securities depository, as well as the express allocation of the costs of such steps to the Clearing Member who failed to make delivery. New paragraph 2.1 in amended Part U would address ICE
Clear Europes procedure to address the Sellers partial delivery of available Gilts and the resulting partial settlement between the Buying Clearing Member and the Selling Clearing Member. ICE
Clear Europe represents that these proposed provisions are intended to reflect existing practices and to provide consistency with the corresponding provisions of the Delivery Procedures for other contracts, including Part Z
Equity Futures/Options.
In Part Z, the proposed rule change would make various updates to reference the correct settlement facilities and relevant settlement details and settlement procedures for Equity Futures/Options Contracts. Specifically, the proposed rule change would amend paragraph 1.4 Deliverable Equities to clarify the treatment of corporate events relating to underlying securities by reference to the relevant Exchange corporate action policy and the relevant contract terms. The proposed rule change also would amend the provisions in paragraph 2.3 Partialling and paragraph 3 Failed Settlements and Non-Delivery of Stock to clarify the processes for dealing with partial deliveries and failed deliveries, including the steps that ICE Clear Europe may take to facilitate delivery, the rights and responsibilities of the buying clearing member with respect to onward deliveries under other contracts, and the allocation of costs to clearing members. The proposed rule change would amend paragraph 2.4 Daylight Indicator to clarify that ICE Clear Europe may in its discretion decide to accept, or not to accept, any request for daylight settlement. In paragraph 3.1
Buying In Summary Timetable, the proposed rule change would make various drafting clarifications and improvements.
In Part FF ICE Futures New York Harbour Ultra Low Sulphur Diesel Futures, ICE Futures Europe New York Harbour Ultra Low Sulphur Heating Oil Futures, the proposed rule change would amend the first table with respect to the receipt of documents by ICE Clear Europe by removing the statement that in the event of non-availability of any of the listed delivery documents, Seller may substitute a letter of indemnity in favor of the Buyer.
Finally, the proposed rule change would make various drafting clarifications, typographical corrections,
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and updates to defined terms and crossreferences throughout the Delivery Procedures.
E. CDS Procedures i. List of Eligible Single Name Reference Entities The proposed rule change would amend paragraph 11.4 of the CDS
Procedures Modifications to List of Eligible Single Name Reference Entities. Paragraph 11.4 gives ICE Clear Europe the ability to make certain modifications to its list of Eligible Single Name Reference Entities, subject to consultation with the CDS Product Risk Committee. Currently, upon making any such modifications, ICE
Clear Europe must give notice by Circular. The proposed rule change would amend this provision such that upon making any changes, ICE Clear Europe would be required to update certain relevant information relating to CDS Contracts on its website, rather than giving notice by Circular of such actions. ICE Clear Europe represents that it discusses changes to the list of eligible reference entities prior to implementation with the Trading Advisory Group, which has weekly meetings to which trader representatives of CDS Clearing Members are invited.
Members of the Trading Advisory Group are also notified by email of changes to reference obligations. In addition, ICE
Clear Europe represents that its Operations Working Group discusses changes to clearing reference obligations prior to implementation, and the Operations Working Group has weekly meetings to which operational personnel of CDS Clearing Members are invited. Once agreed, ICE Clear Europe would reflect the changes on the cleared product website on the date they are made eligible or modified, in accordance with amended paragraph 11.4. Given these procedures, ICE Clear Europe believes that CDS Clearing Members will have sufficient information about changes in reference obligations and that the current requirement of a circular is unnecessary.
ii. Allow Clearing Members To Nominate Affiliates ICE Clear Europe proposes to amend paragraph 4.4f of the CDS Procedures by adding a new sentence to specify that a CDS Clearing Member could designate an Affiliate that is also a CDS Clearing Member to accept CDS Contracts in lieu of the designating Clearing Member for CDS Contracts arising as a result of the existing CDS end-of-day pricing process pursuant to Rule 401axi. Similarly, the proposed rule change would amend
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paragraph 11.5 of the CDS Procedures Self-referencing CDS to allow a CDS
Clearing Member to designate an Affiliate to accept transactions arising out of the existing auction process to be used in the case of self-referencing CDS
transactions. ICE Clear Europe represents that this change reflects existing practice for CDS Clearing Members, as documented in certain arrangements between ICE Clear Europe and certain CDS Clearing Members allowing this to take place, but was unintentionally omitted from the CDS
Procedures.31
iii. CDS Clearing Member Sign-Off of Weekly Cycles The proposed rule change would amend Section 3 of the CDS Procedures regarding margin. Specifically, ICE Clear Europe proposes to add a new paragraph 3.5 to the CDS Procedures to require CDS Clearing Members to provide sign-off via email on weekly cycles by a specified time and day. This change would document existing operational processes.32
F. Membership Procedures i. Deadlines for Financial Statements The proposed rule change would amend the summary table at paragraph 4.2 of the Membership Procedures to extend the deadline for submitting financial statements from 30 to 45 days after the relevant period so that the deadline aligns with other regulatory reporting deadlines, such as the UKs Financial Conduct Authority FCA
deadlines.
ii. Adjustments to Clearing Member Capital Requirements The proposed rule change would make a number of changes to the Membership Procedures to implement the Basel III standard for Clearing Member capital. First, the proposed rule change would amend paragraph 3.3.
Paragraph 3.3 provides a definition of the term Capital with respect to a Non-FCM/BD Clearing Member. This definition currently provides that capital, as a general matter, includes fully-paid ordinary and preference share capital, retained reserves and, for some purposes and subject to limits, subordinated debt that is perpetual or repayable on 5 years or more notice. The proposed rule change would amend this definition to instead provide that capital, as a general matter, includes fully-paid ordinary and preference share capital, retained reserves and, for some purposes and subject to limits, 31 Notice, 32 Notice,
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