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Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Release No. 3491114; File No. SRICEEU
2021002

Self-Regulatory Organizations; ICE
Clear Europe Limited; Notice of Filing of Proposed Rule Change Relating to Amendments to the ICE Clear Europe Price Submission Disciplinary Framework February 11, 2021.

Pursuant to Section 19b1 of the Securities Exchange Act of 1934 the Act,1 and Rule 19b4 thereunder,2
notice is hereby given that on February 2, 2021, ICE Clear Europe Limited filed with the Securities and Exchange Commission the proposed rule changes described in Items I, II and III below, which Items have been prepared primarily by ICE Clear Europe. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.

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I. Clearing Agencys Statement of the Terms of Substance of the Proposed Rule Change The principal purpose of the proposed amendments is for ICE Clear Europe to modify its Price Submission Disciplinary Framework to be renamed the Price Submission Disciplinary Procedure, referred to herein as the Procedure to update the review period for the Clearing House when investigating missed price submissions, permit an annual one-time waiver available to Clearing Members in respect of any instance in which a Clearing Member has failed to timely provide submissions for which they hold cleared open interest with the Clearing House a Missed Submission. ICE Clear Europe is also proposing to modify provisions relating to governance and exception handling to conform to other Clearing House procedures and remove unnecessary appendices and make certain other updates and clarifications as discussed herein.
II. Clearing Agencys Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, ICE
Clear Europe included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. ICE
Clear Europe has prepared summaries, 1 15
2 17

U.S.C. 78sb1.
CFR 240.19b4.

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set forth in sections A, B, and C
below, of the most significant aspects of such statements.
A Clearing Agencys Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change a Purpose ICE Clear Europe is proposing to amend its Price Submission Disciplinary Procedure to: i Remove the description of the End of Day Price Discovery Process as unnecessary since it is set forth in the existing CDS End of Day Price Discovery Policy; ii update the process in respect of Missed Submissions to provide that a a Clearing Member may be granted one waiver per product class in a calendar year for a Missed Submission, rather than one waiver over the course of the clearing membership, and b the Clearing House has an additional five days to review a Clearing Members response to an initial Notice of Investigation under Rule 1002b before sending the subsequent Letter of Mindedness under Rule 1002f; iii update governance and exception handling provisions; and iv make various drafting clarifications and improvements.
General Drafting Clarifications and Improvements By way of general drafting clarifications and improvements, the document title would be changed from Price Submission Disciplinary Framework to Price Submission Disciplinary Procedure. Former Section 2.2 End of Day Price Discovery Process and Appendix A would be removed as these matters are covered in the existing CDS End Of Day Price Discovery Policy the Policy, and current Section 2.3 would be renumbered 2.2. A cross-reference to the Policy would be added to Section 1.1.
To aid with readability, the term CDS
Clearing Member would be shortened to CM throughout the Procedure and several sentences would be shortened or reformulated with sic change to their substantive meanings. References to CDX products would be replaced by references to CDX indices, a more precise term. A reference to Markit Group Limited would be updated to its current name IHS Markit.
Price Submission Disciplinary Procedure The stated purpose of the Procedure would be simplified and clarified to provide that the document outlines the procedure to be used internally by ICE
Clear Europe when taking disciplinary
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action in relation to price submissions.
The statement that spread submissions will be counted as Missed Submissions would be replaced by a statement that submissions not adhering to the format described in Section 2.2.3 of the End of Day Price Discovery Policy, which requires index submissions to follow market convention in terms of providing prices as spreads, and be either midpoint or bid-offer, will be counted as Missed Submissions. The legal basis description would be amended to include a cross reference to Rule 503g, rather than restate the text of Rule 503g.
Price Submission Incentives In this section, a cross-reference to the deleted section 2.2 would be removed.
Certain non-substantive drafting clarifications would be made to the discussion of Obvious Errors.
Fixed Cash Assessments for Missed Submissions The amendments would provide that a CM in receipt of a Notice of Investigation issued in respect of an alleged Missed Submission will have five days to submit written comments.
The amendments would provide for an additional five days for the Clearing House to review the Clearing Members comments before sending a Letter of Mindedness under Rule 1002f. Such amendment would improve the process by affording the Clearing Member an opportunity to respond to the initial notice and giving the Clearing House time to assess the Clearing Members response before determining whether to take further action under the Rules.
The amendments would also change the process for waiver of Missed Submissions if a waiver is granted, no assessment would be due for the Missed Submission. Rather than a Clearing Member receiving one waiver over the course of its clearing membership for a Missed Submission, a Clearing Member would be eligible for one waiver per calendar year for Missed Submissions for single-name products and one waiver per calendar year for Missed Submissions for index products.
Waivers would be limited to Missed Submissions caused by technical failures. The Clearing Members would be required to provide an adequate written explanation of the technical failure and summary of planned remedial actions. Only the first instance of a Missed Submission for the product category in any calendar year will be eligible for a waiver.
Following the expiry of the ten day period from the Issuance of a Letter of Mindedness with respect to a Missed
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