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Federal Register / Vol. 86, No. 31 / Thursday, February 18, 2021 / Notices Submission, where an assessment amount would be collected, a cash assessment notice would be issued, which would be calculated according to the cash assessment calculation details provided in the procedure.
The amendments would also clarify the procedures by which a Clearing Member may assert that one or more Missed Submissions were due to extraordinary circumstances outside of its control, including to provide that the Head of Regulation and Compliance will determine whether such circumstances apply.
Based on its experience with Missed Submissions, ICE Clear Europe believes the revised approach to waivers strikes a better balance than the current, onetime waiver, between the need for robust submissions under the Policy and the goal of not unnecessarily penalizing Clearing Members for technical failures.

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Document Governance and Exception Handling The amendments would include detail with respect to the governance and exception handling of the Procedure. Specifically, the Procedure would state that the document owner is responsible for ensuring that the Procedure remains up-to-date and is reviewed in accordance with the Clearing Houses governance processes.
The Procedure would further provide that the document owner is to report material breaches or unapproved deviations from the Procedure to the document owners Head of Department, the Chief Risk Officer and the Head of Compliance or their delegates who together will determined if further escalation is required. Finally, exceptions to the Procedure would be approved in accordance with the Clearing Houses governance process for the Procedure. The approach to governance and exception handling is consistent with that of other ICE Clear Europe procedures.
b Statutory Basis ICE Clear Europe believes that the proposed amendments to the Price Submission Disciplinary Procedure are consistent with the requirements of Section 17A of the Act 3 and the regulations thereunder applicable to it.
In particular, Section 17Ab3F of the Act 4 requires, among other things, that the rules of a clearing agency be designed to promote the prompt and accurate clearance and settlement of securities transactions and, to the extent
applicable, derivative agreements, contracts, and transactions, the safeguarding of securities and funds in the custody or control of the clearing agency or for which it is responsible, and the protection of investors and the public interest.
The proposed changes to the Price Submission Disciplinary Procedure are designed to strengthen ICE Clear Europes arrangements and disciplinary procedures for managing Missed Submissions by Clearing Members and the relevant disciplinary procedures.
The amendments provide an opportunity for a Clearing Member that has received to Notice of Investigation to provide comments, and for the Clearing House to review those comments before proceeding with disciplinary procedures. The amendments would also increase the Clearing Houses ability to provide a limited number of waivers for Missed Submissions from technical failures, from one waiver over the course of the clearing membership to one waiver per product class in a calendar year. The other proposed clarifications and changes to the Procedure enhance readability and ensure that the Procedure remains clear and up-to-date.
In ICE Clear Europes view, the amendments will thus Through enhance the overall End of Day Price Submission process and the quality of submissions, which in turn supports the stability of the Clearing House and the prompt and accurate clearance and settlement of cleared contracts. The enhanced risk management is therefore also generally consistent with the protection of investors and the public interest in the safe operation of the Clearing House.
ICE Clear Europe would not expect the amendments to affect the safeguarding of securities and funds in ICE Clear Europes custody or control or for which it is responsible. Accordingly, the amendments satisfy the requirements of Section 17Ab3F.5
In addition, in ICE Clear Europes view, the amended Procedure, like the current framework, would provide an appropriately tailored set of cash assessments for Missed Submissions, and waivers thereof, in light of the importance of end-of-day price submissions to the Clearing Houses risk management and settlement procedures.
The Procedure is gthus consistent with the requirements of Section 17Ab3G
of the Act.6 The amendments also enhance the procedures for investing sic potential Missed Submissions, and for Clearing Members to submit
comments with respect to investigations. In ICE Clear Europes view, this aspect of the Procedure is consistent with the requirements of Section 17Ab3H of the Act.7
In addition, ICE Clear Europe believes the amendments satisfy Rule 17Ad 22e3i,8 which requires the covered clearing agency to maintain a sound risk management framework for comprehensively managing legal, credit, liquidity, operational, general business, investment, custody, and other risks that arise in or are borne by the covered clearing agency which include risk management policies, procedures, and systems designed to identify, measure, monitor, and manage the range of risks that arise in or are borne by the covered clearing agency. The proposed amendments are intended to strengthen the End of Day Price Discovery Process by clarifying disciplinary procedures for Missed Submissions and the process for waivers. The inclusion of an opportunity for a Clearing Members response to an initial Notice of Investigation, and an opportunity for the Clearing House to review the response will better ensure that the Clearing House has sufficient time and information to assess a Clearing Members formal response in respect of a Missed Submission before determining whether to take further action under the Rules. ICE Clear Europe believes that the amendments to the Procedure are therefore consistent with the requirements of Rule 17Ad 22e3i.9
Rule 17Ad22e2 10 requires clearing agencies to establish reasonably designed policies and procedures to provide for governance arrangements that are clear and transparent and specify clear and direct lines of responsibility. The proposed amendments to the Procedure more clearly define the roles and responsibilities of the document owner, the Head of Department, the Chief Risk Officer and the Head of Compliance or their delegates, consistent with governance arrangement for other ICE
Clear Europe policies and procedures.
ICE Clear Europe believes that the amendments to the Procedure are therefore consistent with the requirements of Rule 17Ad22e2.11
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