Federal Register / Vol. 86, No. 33 / Monday, February 22, 2021 / Notices 10613 

15 15 U.S.C. 78q–1(b)(3)(F). 

16 15 U.S.C. 17Ad–22(e)(13). 

17 15 U.S.C. 17Ad–22(e)(13). 

18 15 U.S.C. 78q–1(b)(3)(F). 

19 17 CFR 240.17Ad–22(e)(3)(i) and (e)(13). 

20 15 U.S.C. 78s(b)(2). 

21 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

22 17 CFR 200.30–3(a)(12). 

As noted above, ICE Clear Europe 

utilizes seconded representatives of 

Clearing Members to serve on ICE Clear 

Europe’s CDS Default Committee to 

manage the portfolios of defaulting 

clearing members. The proposed rule 

changes would update and clarify the 

requirements for a Clearing Member to 

be eligible to serve on the CDS Default 

Committee as well as clarify the 

procedures to be used by the CDS 

Default Committee if such Clearing 

Member is unable to fulfill its upcoming 

rotation obligation. The proposed rule 

changes also describe the process ICE 

Clear Europe follows when a CDS 

Committee-Eligible Clearing Member is 

unable to take part in the CDS Default 

Committee. The proposed changes also 

make various changes to the procedures 

clarifying the fact that CDS Default 

Committee Members and participants 

are subject to confidentiality 

requirements and that these participants 

have the benefit of all exclusions and 

limitations of liability available to ICE 

Clear Europe. Further, the CDS Policy 

changes clarify the detailed resources 

available to CDS Default Committee 

Members necessary for carrying out 

their functions. 

Taken together, the Commission 

believes that these changes and 

clarifications with respect to CDS 

Default Committee participation and the 

process for when a CDS CommitteeEligible Clearing Member cannot 

participate in the CDS Default 

Committee should allow ICE Clear 

Europe to better ensure that the 

committee is comprised of participants 

who possess the requisite knowledge 

and experience to assist in a default 

management process. The Commission, 

in turn, believes that this should help 

ICE Clear Europe more effectively 

manage defaults, ensuring ICEEU’s 

ability to continue functioning, thereby 

promoting the prompt and accurate 

clearance and settlement of transactions. 

For the reasons stated above, the 

Commission finds that the proposed 

rule change is consistent with the 

Section 17A(b)(3)(F) of the Act.15

B. Consistency With Rule 17Ad– 

22(e)(13) 

Rule 17Ad–22(e)(13) requires that ICE 

Clear Europe establish, implement, 

maintain and enforce written policies 

and procedures reasonably designed, as 

applicable, to ensure ICE Clear Europe 

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 Clearing 

Members 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.16

As noted above, the proposed changes 

to the CDS Procedures would define the 

requirements for Clearing Members to 

become eligible to participate in the 

CDS Default Committee as well as the 

process for addressing situations when 

parties postpone their participation will 

ensure that the committee is staffed 

with appropriate representatives. The 

Commission believes that these changes 

should help to ensure ICE Clear Europe 

has the operational capacity to take 

timely action to contain losses. 

In addition, as noted above, the 

proposed rule change would revise the 

CDS Default Management Policy to 

specify that it will engage in testing and 

review of its default procedures at least 

quarterly and perform simulation 

exercises as least annually, which is 

conducted in coordination with its 

clearing members as well as internal 

stakeholders such as the Clearing Risk 

Department, senior clearing house 

management, and the CDS Default 

Committee. Further, the Policy would 

be amended to state that these default 

tests would be planned to take into 

account various scenarios that are tested 

and approved by the stakeholders, 

including senior management. The 

Commission believes that this 

additional detail regarding the testing of 

ICE Clear Europe’s default procedures 

would support ICE Clear Europe’s 

ability to meet its obligations through 

regular testing and review of its default 

procedures with the requisite 

stakeholders. 

For these reasons, the Commission 

finds that the proposed rule change is 

consistent with Rule 17Ad–22(e)(13).17

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act, and in 

particular, with the requirements of 

Section 17A(b)(3)(F) of the Act 18 and 

Rules 17Ad-22(e)(3)(i) and (e)(13).19

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act 20 that the 

proposed rule change, as modified by 

Partial Amendment No. 1 (SR–ICEEU– 

2020–018), be, and hereby is, 

approved.21

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.22

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–03493 Filed 2–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #16815 and #16816; 

Pennsylvania Disaster Number PA–00108] 

Administrative Declaration 

Amendment of a Disaster for the 

Commonwealth of Pennsylvania 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Amendment 1. 

SUMMARY: This is an amendment of the 

Administrative declaration of a disaster 

for the Commonwealth of Pennsylvania 

dated 12/18/2020. 

Incident: Tropical Storm Isaias. 

Incident Period: 08/04/2020. 

DATES: Issued on 02/17/2021. 

Physical Loan Application Deadline 

Date: 03/18/2021. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 09/20/2021. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 

Administration, Processing and 

Disbursement Center, 14925 Kingsport 

Road, Fort Worth, TX 76155. 

FOR FURTHER INFORMATION CONTACT: 

A. Escobar, Office of Disaster 

Assistance, U.S. Small Business 

Administration, 409 3rd Street SW, 

Suite 6050, Washington, DC 20416, 

(202) 205–6734. 

SUPPLEMENTARY INFORMATION: The notice 

of an Administrative declaration for the 

Commonwealth of Pennsylvania, dated 

12/18/2020 is hereby amended to 

extend the deadline for filing 

applications for physical damages as a 

result of this disaster to 03/18/2021. 

All other information in the original 

declaration remains unchanged. 

(Catalog of Federal Domestic Assistance 

Number 59008) 

Tami Perriello, 

Acting Administrator. 

[FR Doc. 2021–03530 Filed 2–19–21; 8:45 am] 

BILLING CODE 8026–03–P 


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