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Federal Register / Vol. 86, No. 117 / Tuesday, June 22, 2021 / Notices
interest; iv be responsible for administering the policies and procedures required by Section 13n of the Exchange Act and the rules thereunder; v take reasonable steps to ensure compliance with the Exchange Act and the SDR Rules thereunder; vi establish procedures for the remediation of noncompliance; and vii establish and follow appropriate procedures for the handling, management response, remediation, retesting, and closing of noncompliance issues.54
Additionally, Section 13n7C of the Exchange Act requires an SDR to establish and enforce rules to minimize conflicts of interest in the decisionmaking process of the SDR and establish a process for resolving any such conflicts of interest.55 Rule 13n4c3
under the Exchange Act provides that an SDR must: i Establish, maintain, and enforce written policies and procedures reasonably designed to identify and mitigate potential and existing conflicts of interest in the SDRs decision-making process on an ongoing basis; ii with respect to the decisionmaking process for resolving any conflicts of interest, require the recusal of any person involved in such conflict from such decision-making; and iii establish, maintain, and enforce written policies and procedures regarding the SDRs non-commercial and/or commercial use of the SBS transaction information that it receives.56
The Commission received no comments applicable to these requirements. As described above, the ITV Application includes provisions for the representation of market participants in the governance arrangements, as well as procedures providing an opportunity to participate in the process for nominating directors and the right to petition for alternative candidates. In addition, the ITV
Application includes policies and procedures that set standards for the skills and expertise possessed by the ITV Board.
More generally, the ITV Application sets forth an organizational structure that is clear and includes provisions for internal controls. The ITV Application includes provisions for a CCO that has been designated by the ITV Board and whose compensation, appointment, and removal is set by the majority of the ITV
Board. In addition, the ITV Application includes policies and procedures that require the CCO to report to the ITV
Board and be responsible for maintaining compliance with applicable 54 17

CFR 240.13n11c17.
U.S.C. 78mn7Ci, ii.
56 17 CFR 240.13n4c3iiii.
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Commission rules, investigating any suspected violations thereof, and overseeing any necessary remediation.
The ITV Application includes policies and procedures that identify and mitigate conflicts of interest, require the recusal from decision-making of members of the ITV Board when involved in a conflict, and delineate the commercial and non-commercial use of SBS transaction information received.
B. Access and Information Security 1. Summary of ICE Trade Vaults Application ICE Trade Vault represents that it provides access to its SDR service on a fair, open and not unreasonably discriminatory basis.57 According to ICE
Trade Vault, access to and usage of its service is available to all market participants that validly engage in SBS
transactions and to all market venues from which data can be submitted to ICE Trade Vault, and do not require the use of any other ancillary service offered by ICE Trade Vault.58 ICE Trade Vault represents that for security reasons, access to the ICE Trade Vault system is strictly limited to users entities with valid permissions and security access.59 Users will only have access to i data they reported, ii data that pertains to a SBS to which they are a counterparty; iii data that pertains to a SBS for which the user is an execution agent, platform, registered broker-dealer or a third-party reporter; and iv data that ICE Trade Vault is required to make publicly available.60
According to ICE Trade Vault, access to its system is provided to parties that have a duly executed User Agreement in effect with ICE Trade Vault.61 When 57 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 1; see also Swap Data Repository Rulebook, Security-Based Swap Data Reporting Annex, Ex. HH.2, sec. 3.1.
58 See id.; see also SDR Adopting Release, 80 FR
at 1445152 Commission noting that confirmation and dispute resolution services or functions are ancillary . . . . and are not core SDR services, which would cause a person providing such core services to meet the definition of an SDR, and thus, require the person to register with the Commission as an SDR. However, SDRs are required to perform these two services or functions, and thus, they are required ancillary services. . . . An SDR may delegate some of these required ancillary services to third party service providers, who do not need to register as SDRs to provide such services. The SDR will remain legally responsible for the third party service providers activities relating to the required ancillary services and their compliance with applicable rules under the Exchange Act..
59 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 1; see also ICE Trade Vault User Agreement, Ex. U.2.
60 See id.; see also Security-Based Swap Data Repository User Onboarding Process Guide, Ex. N.6.
61 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 1; Swap Data Repository
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enrolling with ICE Trade Vault, users must designate an administrator with respect to the users use of ICE Trade Vault to ensure ICE Trade Vault access is granted by a trusted individual at the users firm who is closest to and has the most knowledge of those in the firm who require access; the administrator will create, permission and maintain all user names and passwords for the user.62 According to ICE Trade Vault, passwords must meet technical and procedural processes for information security and must include at least three of the following elements: Uppercase letters, lowercase letters, numbers, and special characters.63
ICE Trade Vault may decline the request of an applicant to become a user of its system if such denial is required in order to comply with applicable law e.g., to comply with sanctions administered and enforced by the Office of Foreign Assets Control of the U.S.
Department of the Treasury.64 If an applicant is denied by ICE Trade Vault for any other reason, the applicant will be entitled to notice and an opportunity to contest such determination in accordance with the Rulebook.65 If the denial of an application is reversed, the applicant will be granted access to ICE
Trade Vault promptly following completion of onboarding requirements.66 In addition, ICE Trade Vault may revoke a users access to ICE
Trade Vault following a determination that i the user has violated any provision of the User Agreement including by failing to pay any fees when due, the Rulebook, applicable law or any ICE Trade Vault policies and procedures related to its SDR service or ii such action is necessary or appropriate in light of ICE Trade Vaults regulatory responsibilities or for the protection of the integrity of its system each, an Access Determination.67
Access Determinations shall be made by the CCO based on the information gathered during the inquiry, if any, and reviewed by the President and General Counsel of ICE Trade Vault within 5
Rulebook, Security-Based Swap Data Reporting Annex, Ex. HH.2, sec. 3.1.1; see also ICE Trade Vault User Agreement, Ex. U.2.
62 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 1; Swap Data Repository Rulebook, Security-Based Swap Data Reporting Annex, Ex. HH.2, sec. 3.1.1.
63 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 1.
64 See Security-Based SDR Service Disclosure Document, Ex. V.2, sec. 1; Swap Data Repository Rulebook, Security-Based Swap Data Reporting Annex, Ex. HH.2, sec. 3.1.2.
65 See id.
66 See id.
67 See Swap Data Repository Rulebook, SecurityBased Swap Data Reporting Annex, Ex. HH.2, sec.
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