Federal Register / Vol. 86, No. 23 / Friday, February 5, 2021 / Notices 8447 

18 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

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 

the 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 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– 

NYSE–2021–05 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–NYSE–2021–05. 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 that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change 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 the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. 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–NYSE–2021–05 and should 

be submitted on or before February 26, 

2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–02406 Filed 2–4–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91024; File No. SR–ICC– 

2021–003] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change Relating to the 

ICC Operational Risk Management 

Framework 

February 1, 2021. 

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

Securities Exchange Act of 1934 1 and 

Rule 19b–4 thereunder,2 notice is 

hereby given that on January 21, 2021, 

ICE Clear Credit LLC (‘‘ICC’’) filed with 

the Securities and Exchange 

Commission the proposed rule change 

as described in Items I, II and III below, 

which Items have been prepared 

primarily by ICC. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The principal purpose of the 

proposed rule change is to revise the 

ICC Operational Risk Management 

Framework. These revisions do not 

require any changes to the ICC Clearing 

Rules (the ‘‘Rules’’). 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

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 

(a) Purpose 

ICC proposes to revise the Operational 

Risk Management Framework, which 

details ICC’s dynamic and independent 

program of risk assessment and 

oversight that aims to reduce 

operational incidents, encourage 

process and control improvement, bring 

transparency to operational performance 

standard monitoring, and fulfill 

regulatory obligations. ICC believes such 

revisions will facilitate the prompt and 

accurate clearance and settlement of 

securities transactions and derivative 

agreements, contracts, and transactions 

for which it is responsible. ICC proposes 

to make such changes effective 

following Commission approval of the 

proposed rule change. The proposed 

revisions are described in detail as 

follows. 

The proposed amendments 

incorporate reference to the 

Intercontinental Exchange, Inc. (‘‘ICE, 

Inc.’’) Enterprise Risk Management 

Policy (‘‘ERM Policy’’) and relevant 

regulations applicable to ICC as a 

covered clearing agency. The ICE, Inc. 

Enterprise Risk Management 

Department (‘‘ERM’’) provides the 

oversight and framework for identifying, 

assessing, managing, monitoring and 

reporting on risk across the ICE, Inc. 

organization and has dedicated 

resources focused on the various ICE, 

Inc. business units, including ICC. ERM, 

in conjunction with relevant ICC 

individuals, oversees the management 

of this Operational Risk Management 

Framework. 

ICC proposes updates to the risk 

assessment process in the Operational 

Risk Management Framework, which 

includes identifying, assessing, 

monitoring, and mitigating plausible 

sources of operational risk. Under the 

‘‘identify’’ component, ICC proposes to 

more generally refer to its ‘‘riskscenario-based assessment 

methodology’’ as its ‘‘risk-based 

assessment methodology,’’ which more 

appropriately describes the 

methodology. ICC proposes similar 

changes throughout the risk assessment 

process to replace ‘‘risk scenarios’’ with 

‘‘risks.’’ The proposed changes also 

cross reference the ERM Policy, noting 

that ERM maintains an inventory of 

material risks faced by the clearing 

house. Under the ‘‘assess’’ component, 

ICC proposes to incorporate the ERM 


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8448 Federal Register / Vol. 86, No. 23 / Friday, February 5, 2021 / Notices 

3 17 CFR 240.17Ad–22(e)(17) and (21). 

4 15 U.S.C. 78q–1. 

5 17 CFR 240.17Ad–22. 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 Id. 

8 Id. 

9 17 CFR 240.17Ad–22. 

10 17 CFR 240.17Ad–22(e)(2)(i) and (v). 

11 Id. 

12 17 CFR 240.17Ad–22(e)(17). 

13 Id. 

Policy and its relevant guidelines. ICC 

proposes minor clarifications with 

respect to the assessment of material 

risks and the controls and mitigations 

used to prevent risks from materializing. 

ICC proposes additional specifics 

relating to the determination of residual 

risk ratings for identified risks. ICC 

further proposes to reference the ERM 

Policy regarding risk scores and 

guidance relating to control 

identification, effectiveness assessment 

and testing, among others. With respect 

to the ‘‘mitigate’’ component, the 

proposed changes cross reference 

relevant guidelines in the ERM Policy 

and include minor updates regarding 

documenting output and reviewing risk 

assessments. The proposed changes also 

update the ‘‘report’’ component to more 

clearly state that ERM is responsible for 

operational risk reporting to appropriate 

parties. 

ICC proposes updates to Appendix 1 

of the Operational Risk Management 

Framework that summarizes relevant 

regulatory requirements and industry 

guidance for ICC. Specifically, ICC 

proposes to reference its status as a 

covered clearing agency and to reference 

relevant regulations applicable to ICC as 

a covered clearing agency relating to 

operational risk requirements, namely 

Rules 17Ad-22(e)(17) and (21).3

(b) Statutory Basis 

ICC believes that the proposed rule 

change is consistent with the 

requirements of Section 17A of the Act 4

and the regulations thereunder 

applicable to it, including the applicable 

standards under Rule 17Ad–22.5 In 

particular, Section 17A(b)(3)(F) of the 

Act 6 requires that the rule change be 

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. ICC believes that the proposed 

rule change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

ICC, in particular, to Section 

17(A)(b)(3)(F),7 because the proposed 

rule change enhances ICC’s ability to 

control its operational risk by ensuring 

that the Operational Risk Management 

Framework accurately reflects ICC’s 

operational risk program, including the 

role of ERM and the regulatory 

operational risk requirements applicable 

to ICC. The proposed changes cross 

reference the ERM Policy and provide 

additional detail regarding ERM’s role 

in the risk assessment process. The 

cross-references are intended to ensure 

clarity and consistency between 

relevant terms and processes across the 

Operational Risk Management 

Framework and the ERM Policy and are 

not intended to change the substance of 

either document. Additionally, the 

proposed changes reference regulations 

applicable to ICC as a covered clearing 

agency relating to operational risk 

requirements to ensure that relevant 

regulatory requirements are addressed 

as part of ICC’s operational risk 

program. ICC believes that such changes 

further ensure that ICC, through its 

operational risk program, is able to 

manage its operational risks by 

identifying plausible sources of 

operational risk and mitigating their 

impact through the use of appropriate 

systems, policies, procedures, and 

controls to avoid disruptions to 

operations, thereby promoting the 

prompt and accurate clearance and 

settlement of securities transactions, 

derivatives agreements, contracts, and 

transactions; the safeguarding of 

securities and funds which are in the 

custody or control of ICC or for which 

it is responsible; and the protection of 

investors and the public interest. As 

such, the proposed rule change is 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions, derivatives 

agreements, contracts, and transactions; 

to contribute to the safeguarding of 

securities and funds associated with 

security-based swap transactions in 

ICC’s custody or control, or for which 

ICC is responsible; and, in general, to 

protect investors and the public interest 

within the meaning of Section 

17A(b)(3)(F) of the Act.8

The amendments would also satisfy 

relevant requirements of Rule 17Ad– 

22.9 Rule 17Ad–22(e)(2)(i) and (v) 10

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. The 

Operational Risk Management 

Framework clearly assigns and 

documents responsibility and 

accountability for operational risk 

actions and decisions. The proposed 

changes more clearly specify the role of 

ERM in the risk assessment process. 

Moreover, the proposed revisions 

continue to allow for feedback from, and 

notification to, relevant stakeholders, 

such as ICC committees, management, 

and the Board. These governance 

arrangements are clear and transparent, 

such that information relating to the 

assignment of responsibilities and the 

requisite involvement of relevant 

committees and ICE, Inc. and ICC 

personnel is clearly documented. In 

ICC’s view, the proposed rule change 

continues to ensure that ICC maintains 

policies and procedures that are 

reasonably designed to provide for clear 

and transparent governance 

arrangements and specify clear and 

direct lines of responsibility, consistent 

with Rule 17Ad–22(e)(2)(i) and (v).11

Rule 17Ad–22(e)(17) 12 requires 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; (ii) ensuring 

that systems have a high degree of 

security, resiliency, operational 

reliability, and adequate, scalable 

capacity; and (iii) establishing and 

maintaining a business continuity plan 

that addresses events posing a 

significant risk of disrupting operations. 

The proposed clarifications regarding 

the risk assessment process would 

enhance ICC’s ability to identify 

relevant sources of operational risk and 

mitigate their impact through the use of 

appropriate systems, policies, 

procedures, and controls, including by 

more specifically setting out the risk 

assessment process itself and the role 

and responsibilities of ERM regarding 

the identification, assessment, 

mitigation, and reporting of plausible 

sources of operational risk. Such 

amendments further strengthen the risk 

assessment process and enhance ICC’s 

ability to ensure that systems have a 

high degree of security, resiliency, 

operational reliability, and adequate, 

scalable capacity. The proposed changes 

also update the regulatory operational 

risk requirements applicable to ICC as a 

covered clearing agency to ensure that 

ICC will continue to fulfill regulatory 

obligations, consistent with the 

requirements of Rule 17Ad–22(e)(17).13


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 23 / Friday, February 5, 2021 / Notices 8449 

14 17 CFR 240.17Ad–22(e)(21). 

15 Id. 

16 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

Rule 17Ad–22(e)(21) 14 requires each 

covered clearing agency to establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to be efficient and 

effective in meeting the requirements of 

its participants and the markets it 

serves, and have its management 

regularly review the efficiency and 

effectiveness of its (i) clearing and 

settlement arrangements; (ii) operating 

structure, including risk management 

policies, procedures, and systems; (iii) 

scope of products cleared or settled; and 

(iv) use of technology and 

communication procedures. As noted 

above, ERM provides the oversight and 

framework for identifying, assessing, 

managing, monitoring and reporting on 

risk across the ICE, Inc. organization 

and has dedicated resources focused on 

ICC, allowing ICC to be efficient and 

effective in meeting the requirements of 

its participants and the markets it 

serves. Moreover, the amended 

framework more clearly sets out the 

ERM function with respect to ICC to 

ensure the fulfillment of relevant 

responsibilities, thereby promoting 

ICC’s ability to be efficient and effective 

in meeting the requirements of its 

participants and the markets it serves. 

Further, the proposed revisions clarify 

responsibilities regarding review of risk 

assessments and operational risk 

reporting to appropriate parties, which 

would promote management’s regular 

review of the efficiency and 

effectiveness of ICC’s clearing and 

settlement arrangements, operating 

structure, product scope, and use of 

technology and communication 

procedures. The proposed rule change is 

thus reasonably designed to meet the 

requirements of Rule 17Ad–22(e)(21).15

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICC does not believe the proposed 

rule change would have any impact, or 

impose any burden, on competition. 

The proposed changes to the 

Operational Risk Management 

Framework will apply uniformly across 

all market participants. Therefore, ICC 

does not believe the amendments would 

impose any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change 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 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 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–2021–003 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–2021–003. 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 that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change 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–2021–003 and 

should be submitted on or before 

February 26, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.16

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–02399 Filed 2–4–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–91035; File No. SR– 

NYSEAMER–2021–04] 

Self-Regulatory Organizations; NYSE 

American LLC; Notice of Filing of 

Proposed Rule Change To Amend the 

NYSE American Equities Price List and 

Fee Schedule and the NYSE American 

Options Fee Schedule Related to CoLocation Services 

February 1, 2021. 

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

Securities Exchange Act of 1934 (the 

‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on January 

19, 2021, NYSE American LLC (‘‘NYSE 

American’’ or the ‘‘Exchange’’) filed 

with the Securities and Exchange 

Commission (the ‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

NYSE American Equities Price List and 

Fee Schedule and the NYSE American 

Options Fee Schedule (together, the 


jbell on DSKJLSW7X2PROD with NOTICES