Federal Register / Vol. 86, No. 19 / Monday, February 1, 2021 / Notices 7751 

10 Id. 

11 17 CFR 200.30–3(a)(31). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 3 15 U.S.C. 78q–1(b)(3)(F). 

Commission shall issue an order 

approving or disapproving the proposed 

rule change not later than 180 days after 

the date of publication of notice of filing 

of the proposed rule change. The 

Commission may extend the period for 

issuing an order approving or 

disapproving the proposed rule change 

by not more than 60 days if the 

Commission determines that a longer 

period is appropriate and publishes 

reasons for such determination. The 

proposed rule change was published for 

notice and comment in the Federal 

Register on August 7, 2020. February 3, 

2021 is 180 days from that date, and 

April 4, 2021 is 240 days from that date. 

The Commission finds it appropriate 

to designate a longer period within 

which to issue an order approving or 

disapproving the proposed rule change 

so that it has sufficient time to consider 

the proposed rule change. Accordingly, 

the Commission, pursuant to Section 

19(b)(2) of the Exchange Act,10

designates April 4, 2021 as the date by 

which the Commission shall either 

approve or disapprove the proposed 

rule change (File No. SR–NASDAQ– 

2020–017). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–02009 Filed 1–29–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meeting; Cancellation 

FEDERAL REGISTER CITATION OF PREVIOUS

ANNOUNCEMENT: 86 FR 6687, January 22, 

2021. 

PREVIOUSLY ANNOUNCED TIME AND DATE OF

THE MEETING: Wednesday, January 27, 

2021 at 2:00 p.m. 

CHANGES IN THE MEETING: The Closed 

Meeting scheduled for Wednesday, 

January 27, 2021 at 2:00 p.m., has been 

cancelled. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

Dated: January 27, 2021. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2021–02131 Filed 1–28–21; 11:15 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90989; File No. SR–ICC– 

2021–002] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change, SecurityBased Swap Submission, or Advance 

Notice Relating to the Clearance of an 

Additional Credit Default Swap 

Contract 

January 26, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934,1 and 

Rule 19b–4,2 notice is hereby given that 

on January 15, 2021, ICE Clear Credit 

LLC (‘‘ICC’’) filed with the Securities 

and Exchange Commission the proposed 

rule change, security-based swap 

submission, or advance notice as 

described in Items I, II and III below, 

which Items have been prepared by ICC. 

The Commission is publishing this 

notice to solicit comments on the 

proposed rule change, security-based 

swap submission, or advance notice 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change, Security-Based Swap 

Submission, or Advance Notice 

The principal purpose of the 

proposed rule change is to revise the 

ICC Rulebook (the ‘‘Rules’’) to provide 

for the clearance of an additional 

Standard Emerging Market Sovereign 

CDS contract (the ‘‘EM Contract’’). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

In its filing with the Commission, ICC 

included statements concerning the 

purpose of and basis for the proposed 

rule change, security-based swap 

submission, or advance notice and 

discussed any comments it received on 

the proposed rule change, securitybased swap submission, or advance 

notice. The text of these statements may 

be examined at the places specified in 

Item IV below. ICC has prepared 

summaries, set forth in sections (A), (B), 

and (C) below, of the most significant 

aspects of these statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

(a) Purpose 

The purpose of the proposed rule 

change is to adopt rules that will 

provide the basis for ICC to clear an 

additional credit default swap contract. 

ICC proposes to make such change 

effective following Commission 

approval of the proposed rule change. 

ICC believes the addition of this 

contract will benefit the market for 

credit default swaps by providing 

market participants the benefits of 

clearing, including reduction in 

counterparty risk and safeguarding of 

margin assets pursuant to clearing house 

rules. Clearing of the additional EM 

Contract will not require any changes to 

ICC’s Risk Management Framework or 

other policies and procedures 

constituting rules within the meaning of 

the Securities Exchange Act of 1934 

(‘‘Act’’). 

ICC proposes amending Subchapter 

26D of its Rules to provide for the 

clearance of the additional EM Contract, 

namely Ukraine. This additional EM 

Contract has terms consistent with the 

other EM Contracts approved for 

clearing at ICC and governed by 

Subchapter 26D of the Rules. A minor 

revision to Subchapter 26D (Standard 

Emerging Market Sovereign (‘‘SES’’) 

Single Name) is made to provide for 

clearing the additional EM Contract. 

Specifically, in Rule 26D–102 

(Definitions), ‘‘Eligible SES Reference 

Entities’’ is modified to include Ukraine 

in the list of specific Eligible SES 

Reference Entities to be cleared by ICC. 

(b) Statutory Basis 

Section 17A(b)(3)(F) of the Act 3

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; to assure the 

safeguarding of securities and funds 

which are in the custody or control of 

ICC or for which it is responsible; and 

to comply with the provisions of the Act 

and the rules and regulations 

thereunder. The additional EM Contract 

proposed for clearing is similar to the 

EM Contracts currently cleared by ICC, 

and will be cleared pursuant to ICC’s 

existing clearing arrangements and 

related financial safeguards, protections 

and risk management procedures. 

Clearing of the additional EM Contract 

7752 Federal Register / Vol. 86, No. 19 / Monday, February 1, 2021 / Notices 

4 Id. 

5 17 CFR 240.17Ad–22. 

6 17 CFR 240.17Ad–22(e)(6)(i). 

7 Id. 

8 17 CFR 240.17Ad–22(e)(4)(ii). 

9 Id. 

10 17 CFR 240.17Ad–22(e)(17)(i) and (ii). 

11 Id. 

12 17 CFR 240.17Ad–22(e)(8), (9) and (10). 

13 Id. 

14 17 CFR 240.17Ad–22(e)(2)(i) and (v). 

15 Id. 

16 17 CFR 240.17Ad–22(e)(13). 

17 Id. 

will allow market participants an 

increased ability to manage risk and 

ensure the safeguarding of margin assets 

pursuant to clearing house rules. ICC 

believes that acceptance of the new EM 

Contract, on the terms and conditions 

set out in the Rules, is consistent with 

the prompt and accurate clearance and 

settlement of securities transactions and 

derivative agreements, contracts and 

transactions cleared by ICC, the 

safeguarding of securities and funds in 

the custody or control of ICC or for 

which it is responsible, and the 

protection of investors and the public 

interest, within the meaning of Section 

17A(b)(3)(F) of the Act.4

Clearing of the additional EM 

Contract will also satisfy the relevant 

requirements of Rule 17Ad–22,5 as set 

forth in the following discussion. 

Rule 17Ad–22(e)(6)(i) 6 requires each 

covered clearing agency to establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to cover its credit 

exposures to its participants by 

establishing a risk-based margin system 

that, at a minimum, considers, and 

produces margin levels commensurate 

with, the risks and particular attributes 

of each relevant product, portfolio, and 

market. In terms of financial resources, 

ICC will apply its existing margin 

methodology to the new EM Contract, 

which is similar to the EM Contracts 

currently cleared by ICC. ICC believes 

that this model will provide sufficient 

margin requirements to cover its credit 

exposure to its clearing members from 

clearing such contract, consistent with 

the requirements of Rule 17Ad– 

22(e)(6)(i).7

Rule 17Ad–22(e)(4)(ii) 8 requires each 

covered clearing agency to establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to effectively 

identify, measure, monitor, and manage 

its credit exposures to participants and 

those arising from its payment, clearing, 

and settlement processes, including by 

maintaining additional financial 

resources at the minimum to enable it 

to cover a wide range of foreseeable 

stress scenarios that include, but are not 

limited to, the default of the two 

participant families that would 

potentially cause the largest aggregate 

credit exposure for the covered clearing 

agency in extreme but plausible market 

conditions. ICC believes its Guaranty 

Fund, under its existing methodology, 

will, together with the required initial 

margin, provide sufficient financial 

resources to support the clearing of the 

additional EM Contract, consistent with 

the requirements of Rule 17Ad– 

22(e)(4)(ii).9

Rule 17Ad–22(e)(17) 10 requires, in 

relevant part, each covered clearing 

agency to establish, implement, 

maintain, and enforce written policies 

and procedures reasonably designed to 

manage its operational risks by (i) 

identifying the plausible sources of 

operational risk, both internal and 

external, and mitigating their impact 

through the use of appropriate systems, 

policies, procedures, and controls; and 

(ii) ensuring that systems have a high 

degree of security, resiliency, 

operational reliability, and adequate, 

scalable capacity. ICC believes that its 

existing operational and managerial 

resources will be sufficient for clearing 

of the additional EM Contract, 

consistent with the requirements of Rule 

17Ad–22(e)(17),11 as the new contract is 

substantially the same from an 

operational perspective as existing 

contracts. 

Rule 17Ad–22(e)(8), (9) and (10) 12

requires each covered clearing agency to 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to define the point 

at which settlement is final to be no 

later than the end of the day on which 

payment or obligation is due and, where 

necessary or appropriate, intraday or in 

real time; conduct its money settlements 

in central bank money, where available 

and determined to be practical by the 

Board, and minimize and manage credit 

and liquidity risk arising from 

conducting its money settlements in 

commercial bank money if central bank 

money is not used; and establish and 

maintain transparent written standards 

that state its obligations with respect to 

the delivery of physical instruments, 

and establish and maintain operational 

practices that identify, monitor, and 

manage the risks associated with such 

physical deliveries. ICC will use its 

existing rules, settlement procedures 

and account structures for the new EM 

Contract, which is similar to the EM 

Contracts currently cleared by ICC, 

consistent with the requirements of Rule 

17Ad–22(e)(8), (9) and (10) 13 as to the 

finality and accuracy of its daily 

settlement process and addressing the 

risks associated with physical 

deliveries. 

Rule 17Ad–22(e)(2)(i) and (v) 14

requires each covered clearing agency to 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to provide for 

governance arrangements that are clear 

and transparent and specify clear and 

direct lines of responsibility. ICC 

determined to accept the additional EM 

Contract for clearing in accordance with 

its governance process, which included 

review of the contract and related risk 

management considerations by the ICC 

Risk Committee and approval by its 

Board. These governance arrangements 

continue to be clear and transparent, 

such that information relating to the 

assignment of responsibilities and the 

requisite involvement of the ICC Board 

and committees is clearly detailed in the 

ICC Rules and policies and procedures, 

consistent with the requirements of Rule 

17Ad–22(e)(2)(i) and (v).15

Rule 17Ad–22(e)(13) 16 requires each 

covered clearing agency to establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to ensure it has the 

authority and operational capacity to 

take timely action to contain losses and 

liquidity demands and continue to meet 

its obligations by, at a minimum, 

requiring its participants and, when 

practicable, other stakeholders to 

participate in the testing and review of 

its default procedures, including any 

close-out procedures, at least annually 

and following material changes thereto. 

ICC will apply its existing default 

management policies and procedures for 

the additional EM Contract. ICC believes 

that these procedures allow for it to take 

timely action to contain losses and 

liquidity demands and to continue 

meeting its obligations in the event of 

clearing member insolvencies or 

defaults in respect of the additional 

single name, in accordance with Rule 

17Ad–22(e)(13).17

(B) Clearing Agency’s Statement on 

Burden on Competition 

The additional EM Contract will be 

available to all ICC participants for 

clearing. The clearing of the additional 

EM Contract by ICC does not preclude 

the offering of the additional EM 

Contract for clearing by other market 

participants. Accordingly, ICC does not 

believe that clearance of the additional 

EM Contract will impose any burden on 

competition not necessary or 

Federal Register / Vol. 86, No. 19 / Monday, February 1, 2021 / Notices 7753 

18 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 89424 

(July 29, 2020), 85 FR 47262. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 89820, 

85 FR 57891 (September 16, 2020). The 

Commission designated November 2, 2020 as the 

date by which the Commission shall approve or 

disapprove, or institute proceedings to determine 

whether to disapprove, the proposed rule change. 

6Comments on the proposal, including 

Amendments No. 1 and No. 2, can be found on the 

Commission’s website at: https://www.sec.gov/ 

comments/sr-cboebyx-2020-021/ 

srcboebyx2020021.htm. 

7 15 U.S.C. 78s(b)(2)(B). 

8See Securities Exchange Act Release No. 90288, 

85 FR 70678 (November 5, 2020). 

9Comments on the proposed rule change can be 

found on the Commission’s website at: https://

www.sec.gov/comments/sr-cboebyx-2020-021/ 

srcboebyx2020021.htm. 

10 15 U.S.C. 78s(b)(2). 

appropriate in furtherance of the 

purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change, Security-Based Swap 

Submission, or Advance Notice 

Received From Members, Participants or 

Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

III. Date of Effectiveness of the 

Proposed Rule Change, Security-Based 

Swap Submission, or Advance Notice 

and Timing for Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, security-based swap 

submission, or advance notice is 

consistent with the Act. Comments may 

be submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

ICC–2021–002 on the subject line. 

Paper Comments 

Send paper comments in triplicate to 

Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–ICC–2021–002. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change, security-based swap 

submission, or advance notice that are 

filed with the Commission, and all 

written communications relating to the 

proposed rule change, security-based 

swap submission, or advance notice 

between the Commission and any 

person, other than those that may be 

withheld from the public in accordance 

with the provisions of 5 U.S.C. 552, will 

be available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of such 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/regulation. 

All comments received will be posted 

without change. Persons submitting 

comments are cautioned that we do not 

redact or edit personal identifying 

information from comment submissions. 

You should submit only information 

that you wish to make available 

publicly. All submissions should refer 

to File Number SR–ICC–2021–002 and 

should be submitted on or before 

February 22, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–02004 Filed 1–29–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–90993; File No. SR– 

CboeBYX–2020–021] 

Self-Regulatory Organizations; Cboe 

BYX Exchange, Inc.; Notice of 

Designation of a Longer Period for 

Commission Action on Proceedings To 

Determine Whether To Approve or 

Disapprove a Proposed Rule Change, 

as Modified by Amendment No. 2, To 

Introduce Periodic Auctions for the 

Trading of U.S. Equity Securities 

January 26, 2021. 

On July 17, 2020, Cboe BYX 

Exchange, Inc. (‘‘Exchange’’ or ‘‘BYX’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’), pursuant 

to Section 19(b)(1) of the Securities 

Exchange Act of 1934 (‘‘Exchange 

Act’’) 1 and Rule 19b–4 thereunder,2 a 

proposed rule change to introduce 

periodic auctions in U.S. equity 

securities. The proposed rule change 

was published for comment in the 

Federal Register on August 4, 2020.3

On September 10, 2020, pursuant to 

Section 19(b)(2) of the Exchange Act,4

the Commission designated a longer 

period within which to approve the 

proposed rule change, disapprove the 

proposed rule change, or institute 

proceedings to determine whether to 

disapprove the proposed rule change.5

On October 27, 2020, the Exchange filed 

Amendment No. 1 to the proposed rule 

change, and on October 28, 2020 the 

Exchange filed Amendment No. 2 to the 

proposed rule change, which replaced 

in its entirety the proposed rule change 

as modified by Amendment No. 1.6 On 

October 30, 2020, the Commission 

noticed the filing of Amendment No. 2 

and instituted proceedings under 

Section 19(b)(2)(B) of the Exchange Act 7

to determine whether to approve or 

disapprove the proposed rule change.8

The Commission has received comment 

letters on the proposed rule change.9

Section 19(b)(2) of the Exchange 

Act 10 provides that, after initiating 

disapproval proceedings, the 

Commission shall issue an order 

approving or disapproving the proposed 

rule change not later than 180 days after 

the date of publication of notice of filing 

of the proposed rule change. The 

Commission may extend the period for 

issuing an order approving or 

disapproving the proposed rule change 

by not more than 60 days if the 

Commission determines that a longer 

period is appropriate and publishes 

reasons for such determination. The 

proposed rule change was published for 

notice and comment in the Federal 

Register on August 4, 2020. January 31,