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Federal Register / Vol. 86, No. 168 / Thursday, September 2, 2021 / Notices
sanctioning process for clear-cut and minor rules violations, rather than subjecting such violations to the formal and more cumbersome proceedings of a disciplinary committee.28 To implement such changes, ICE Clear Europe proposes a number of specific changes as described below.
In Rule 101 Definitions, the proposed rule change would amend the definition of Appeal Panel to include a reference to the new Summary Disciplinary Process, and would add a new definition of Summary Disciplinary Process. In Rule 102
Interpretation, the proposed rule change would amend Rule 102j to refer to new Rule 1008 in the context of disciplinary proceedings under the Rules. The proposed rule change would amend Rule 102p to add language that any Disciplinary Panel, Summary Disciplinary Committee, or Appeal Panel appointed pursuant to Part 10 of the Rules Disciplinary Proceedings would be able to exercise discretion in the same way as ICE Clear Europe under Rule 102p. In Rule 1005c, the proposed rule change would make a related amendment to delete the word exclusive before the word discretion with respect to the Appeal Panel given the proposed changes to Rule 102p.
ICE Clear Europe proposes other amendments in the Rules to implement the new Summary Disciplinary Process.
Specifically, the proposed rule change would amend Rule 1002i Investigations to replace existing language with a new reference to the proposed Summary Disciplinary Process under Rule 1008. Current Rule 1002i provides that ICE Clear Europe may order that a Clearing Member pay a fine which ICE Clear Europe decides in its discretion is commensurate with a breach of the Rules, which fine is appealable directly to the Appeal Panel.
As revised, Rule 1002i would provide that ICE Clear Europe may impose sanctions pursuant to the Summary Disciplinary Process under Rule 1008.
The proposed rule change would amend Rule 1003b Disciplinary Proceedings to add a new sentence that ICE Clear Europe must also establish a Disciplinary Panel where so required by an Appeal Panel pursuant to Rule 1005aiiiAppeals or Rule 1008h Summary Disciplinary Process.
Proposed new Rule 1005g would be added to state that Rule 1005 applies as the appeal process concerning an imposed sanction pursuant to the Summary Disciplinary Process under Rule 1008.
28 Notice,
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The proposed rule change would add new Rule 1008 Summary Disciplinary Process to set out the summary disciplinary process that ICE Clear Europe may adopt against a Clearing Member, which process would clarify the situations in which the new process may apply, the sanctioning power of the Summary Disciplinary Process, and the process by which ICE Clear Europe would conduct the Summary Disciplinary Process. Specifically, ICE
Clear Europe may apply the proposed Summary Disciplinary Process in relation to: The late filing or submission of any document, notice or information;
the late making of any payment; any failure to record a Contract in the correct Account; the late making or taking of any delivery; any breach of Rule 202axix participation in default management simulations, new technology testing and other exercises;
any breach of Rule 503g the submission of end-of-day prices relating to Sets of CDS Contracts required of Clearing Members to aid in the establishment of Mark-to-Market Prices;
any breach of a position limit under Part 6 of the Rules; any breach of any provision of the Rules or Procedures that ICE Clear Europe considers to be of a factual nature where ICE Clear Europe holds sufficient evidence of such facts;
any breach of any provision of the Rules or Procedures that ICE Clear Europe considers to be minor in nature; or any breach of the Rules or Procedures which ICE Clear Europe considers would be appropriately addressed by the Summary Disciplinary Process.
Proposed Rule 1008 would limit sanctions to the following: Issuance of a private warning or reprimand naming the Clearing Member or a Clearing Member Customer, client or Representative; a fine of up to 50,000;
or any combination of the foregoing.
Proposed Rule 1008 would also specify the process of imposing any sanction, including the notice process by ICE
Clear Europe, the opportunity for a Clearing Member to appeal, the grounds for appeal and the actions the appeal panel may take i.e., to affirm, vary or revoke a sanction. Proposed Rule 1008
also would allow ICE Clear Europe to provide further guidance by way of Circular in relation to the operation of, or procedures for, the Summary Disciplinary Process.
xxi. Other Updates The proposed rule change would make a number of other drafting enhancements, clarifications, and improvements throughout the Rules, primarily in the definitions.

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In Rule 101 Definitions, the proposed rule change would add a new definition of Acceptance Time, which is defined to mean: i in relation to a CDS Contract, the Acceptance Time as defined in the CDS Procedures; or ii in relation to an FX Contract, the FX
Acceptance Time as defined in the FX
Procedures. The proposed definition would ensure definitional consistency with respect to specifying the applicable time for the acceptance of such Contracts for clearing by ICE Clear Europe, and clarify the meaning of certain undefined references to such term in the Rules, e.g., in Rule 1204
Variations to or Cancellation of Transfer Orders and in paragraph 10
Reliance on CDS Trade Particulars and submissions to Deriv/SERV of the Standard Terms exhibits annexed to the Rules. In the definition of Applicable Law, the proposed rule change would add direction to the list of included types of Applicable Law, and also would add a reference to the FSMA, which is an existing defined term that means the UKs Financial Services and Markets Act 2000 that ICE Clear Europe unintentionally omitted from the existing Applicable Law definition. In the Clearing Organisation definition, the proposed rule change would add a reference to securities clearing agency to ensure that the defined term includes securities clearing agencies regulated by the Commission. In the definition of Defaulter, the proposed rule change would clarify that the defined term refers to a person in respect of whom an Event of Default has occurred, rather than a person in respect of whom a Default Notice has been issued. The proposed rule change would add a new definition of FINRA, to mean the U.S.
Financial Industry Regulatory Authority, Inc., or any successor thereto, as the term FINRA is currently used in the existing definition of Regulatory Authority without clear definition. In the definition of Regulatory Authority, the proposed rule change would add a reference to the National Futures Association. The proposed rule change would amend the definition of Original Margin to clarify that buyers security, sellers security and delivery Margin would all be included within the scope of the term. The proposed rule change would amend the definition of Rule Change expressly to include changes to Contract Terms, and would revise the existing crossreference to Rule 109 Alteration of Rules, Procedures, Guidance and Circulars to reflect that it is not the sole provision governing the process for Rule Changes. In the definition of
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