58628 Federal Register / Vol. 88, No. 165 / Monday, August 28, 2023 / Notices 

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

2 17 CFR 240.19b–4. 

3Treasury Policy section V.B.2. 

4 GBP cash currently is only accepted as ClientRelated Initial Margin (a/k/a ‘‘Client Margin’’). GBP 

cash collateral is not accepted by ICC with respect 

to (i) House Margin (i.e., margin posted by an ICC 

Clearing Participant to support their proprietary 

positions cleared at ICC) or (ii) General Guaranty 

Fund contributions. 

5 ICC recently completed a system change to 

modify its clearing system business logic so that it 

is no longer necessary from a systems standpoint for 

GBP cash posted to cover a EUR denominated to be 

subjected to two currency haircuts. Due to the 

completed system change, ICC is now in the 

position to propose this rule change to eliminate the 

inefficient double haircut. 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98200; File No. SR–ICC– 

2023–013] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change Relating to 

ICC’s Treasury Operations Policies 

and Procedures 

August 22, 2023. 

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 August 15, 2023, 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 

primarily prepared 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 Treasury Operations Policies and 

Procedures (‘‘Treasury Policy’’). 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 its Treasury 

Policy. The purpose of the Treasury 

Policy is to articulate the policies and 

procedures used to support the ICC 

Treasury Department, which is 

responsible for daily cash and collateral 

management of margin and guaranty 

fund assets, including Client-Related 

Initial Margin assets. The proposed 

changes consist of clarifications and 

updates with respect to collateral asset 

haircuts, and additional details on ICC’s 

foreign exchange conversion methods 

should British pound sterling (‘‘GBP’’) 

cash need to be converted to another 

currency in the context of a Clearing 

Participant default. ICC believes that 

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. 

ICC proposes to revise the ‘Collateral 

Valuation’ section of the Treasury 

Policy 3 to clarify the description of 

ICC’s collateral valuation process across 

all collateral types. The ICC collateral 

valuation process is based on accurately 

and effectively pricing the assets posted 

as collateral and appropriately 

haircutting the assets for their native 

market risks (i.e., the risk of a decrease 

in value of the asset posted as collateral) 

as well as related cross-currency risk 

(i.e., the risk of the change in value of 

one currency as compared to the value 

of another currency) when the collateral 

is to be used to cover an obligation 

denominated in a different currency. All 

such proposed changes are non-material 

and clarifying, except for the haircut 

process for GBP cash posted as ClientRelated Initial Margin 4 used to cover a 

Euro denominated product requirement. 

Currently, with respect to GBP cash 

used to cover a Euro denominated 

product requirement, ICC first converts 

the GBP cash value to its USD value. 

The USD value is haircut at the GBP 

currency haircut. Then, the EUR 

denominated product requirement is 

converted to the USD value. The 

resulting USD requirement is grossed up 

by the EUR currency haircut. The effect 

of the current approach is to haircut 

GBP cash margin twice, which ICC 

believes is unnecessary as a matter of 

risk management and inefficient.5

Under the proposed changes, the value 

of GBP cash posted to cover a Euro 

denominated obligation will no longer 

be subjected to two currency haircuts. 

Rather, GBP cash posted to cover a Euro 

obligation, will first be converted to its 

Euro value and then haircut to capture 

the potential foreign exchange risk 

between GBP and Euro. ICC believes the 

proposed revised treatment of GBP cash 

posted to cover a Euro obligation is 

more efficient while still maintaining 

ICC’s conservative collateral valuation 

practices. 

Along with this specific change for 

GBP cash, relevant language in the 

Collateral Valuation section is being 

clarified and simplified to apply 

generally without need to refer to 

specific currencies. Thus, consistent 

with the above, the revised section 

would state generally that cash posted 

in one currency to cover an obligation 

denominated in another currency is first 

converted to its value in the currency of 

the obligation, and then haircut to 

capture the potential foreign exchange 

risk. References to specific currencies 

(which note for example that Euro and 

GBP cash used to cover a USD 

denominated product requirement are 

first converted to USD value and then 

the USD value is haircut) would be 

removed as they are unnecessary. 

Similarly, the revised section would 

state generally that cash posted to cover 

an obligation in the same currency will 

not be subject to a haircut, rather than 

include multiple currency specific 

statements to the same effect. ICC also 

is proposing non-material drafting 

changes to the description of the 

valuation process for collateral posted 

in the form of U.S. Treasuries. ICC is not 

proposing in those amendments to 

change the currencies that are currently 

accepted as margin or collateral. 

Also, ICC proposes the addition of 

Section III.G., ‘‘Non-Committed FX 

Facility’’ to the Treasury Policy. Such 

proposed section would reflect that ICC 

has access to non-committed foreign 

exchange facilities with a diverse set of 

commercial counterparties. Such 

facilities may be used to convert one 

currency to another for same day 

settlement, on a non-committed basis. 

Such section would provide additional 

details with respect to Client-Related 

Initial Margin posted by Clearing 

Participants in GBP cash. The 

amendments would note that the 

circumstances where ICC would need to 

convert such GBP cash collateral to 

another currency are very narrow (as no 

ICC contracts are settled in GBP, and 

GBP would not be needed for daily 

settlement). In addition, such section 

would be amended to further note that 

as ICC accepts GBP cash collateral only 


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Federal Register / Vol. 88, No. 165 / Monday, August 28, 2023 / Notices 58629 

6 15 U.S.C. 78q–1(b)(3)(F). 

7 Id. 

8 Id. 

9 17 CFR 240.17Ad–22(e)(5). 

10 Id. 

with respect to Client-Related Initial 

Margin, and that use of Client-Related 

Initial Margin by ICC in the context of 

a Clearing Participant default is very 

limited, the circumstances where ICC 

would need to covert GBP cash 

collateral into another currency is 

further limited. However, if the narrow 

circumstances did arise and ICC needed 

to convert GBP cash collateral to either 

USD or EUR in the context of a Clearing 

Participant default, ICC would use one 

of its existing non-committed foreign 

exchange arrangements to convert the 

GBP into the applicable currency. 

Certain other typographical and 

similar non-substantive corrections are 

made throughout the Treasury Policy, 

including references to ‘‘haircuts.’’ 

Lastly, ICC proposes amending 

Appendix X., Revision History, to 

reflect the changes and approvals of the 

Treasury Policy. 

(b) Statutory Basis 

Section 17A(b)(3)(F) of the Act 6

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 

the clearing agency or for which it is 

responsible; and to protect 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, Section 

17(A)(b)(3)(F),7 because ICC believes 

that the proposed rule change will 

promote the prompt and accurate 

clearance and settlement of securities 

transactions, derivatives agreements, 

contracts, and transactions, and 

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. As described above, 

the proposed rule change would make 

certain clarifications and updates to the 

Treasury Policy, in particular to avoid 

an unnecessary double haircut that 

currently applies to GBP cash posted to 

cover a Euro denominated obligation, 

which may currently disadvantage those 

customers of Clearing Participants that 

post such cash. The amendments would 

simplify and clarify the description of 

cross-currency haircuts generally, 

without need for references to specific 

currencies. The proposed updates 

would also add additional details on 

ICC’s non-committed foreign exchange 

facilities, which would be used, among 

other purposes, if necessary to convert 

GBP cash posted as Client-Related 

Initial Margin to cover Euro or USD 

obligations. Taken together, the 

amendments promote overall clarity in 

the Treasury Policy regarding foreign 

exchange conversion and the crosscurrency haircut process. The proposed 

updates thus ensure that the 

documentation of ICC’s Treasury Policy 

remains up-to-date, transparent, and 

focused on clearly articulating the 

policies and procedures used to support 

ICC’s treasury functions, which 

promotes the prompt and accurate 

clearance and settlement of securities 

transactions, derivatives agreements, 

contracts, and transactions, contributes 

to the safeguarding of securities and 

funds which are in the custody or 

control of ICC or for which it is 

responsible, and generally promotes the 

protection of investors and the public 

interest. As such, the proposed rule 

changes are consistent with the 

requirements of Section 17A(b)(3)(F) of 

the Act.8

Rule 17Ad–22(e)(5) 9 requires each 

covered clearing agency to ‘‘establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to, as applicable 

. . . [l]imit the assets it accepts as 

collateral to those with low credit, 

liquidity, and market risks, and set and 

enforce appropriately conservative 

haircuts and concentration limits if [it] 

requires collateral to manage its or its 

participants’ credit exposure. . . .’’ As 

described above, ICC accounts for the 

risk associated with fluctuations in the 

value of collateral assets by applying 

haircuts under the Treasury Policy. The 

amendments would revise the crosscurrency haircut applicable to GBP cash 

posted to cover Euro obligations to 

eliminate an unnecessary double 

haircut. ICC believes the amendments 

would result in a more efficient, yet 

appropriately conservative, haircut level 

for such GBP cash. The amendments 

would also make a number of other nonsubstantive revisions to clarify the 

discussion of cross-currency haircuts 

generally and ensure that the Treasury 

Policy remains effective and clear. As 

such, the amendments would satisfy the 

requirements of Rule 17Ad–22(e)(5).10

(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 not 

necessary or appropriate in furtherance 

of the purposes of the Act. As discussed 

above, the amendments would revise 

the haircut applicable to GBP cash 

posed to cover Euro obligations to avoid 

a double haircut. ICC believes this 

change will improve efficiency and 

benefit market participants that may 

choose to post GBP cash as ClientRelated Initial Margin. Other changes 

would generally improve the clarity of 

the Treasury Policy. The proposed 

changes to ICC’s Treasury Policy will 

apply uniformly across all market 

participants. ICC does not believe the 

amendments would adversely affect the 

costs of clearing for market participants, 

or otherwise affect the ability of market 

participants to access clearing or the 

market for clearing services generally. 

Therefore, ICC does not believe the 

proposed rule change imposes any 

burden on competition that is 

inappropriate 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: 


lotter on DSK11XQN23PROD with NOTICES1
58630 Federal Register / Vol. 88, No. 165 / Monday, August 28, 2023 / Notices 

11 17 CFR 200.30–3(a)(12). 

Electronic Comments 

• Use the Commission’s internet 

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

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

ICC–2023–013 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–2023–013. 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 (https://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 

a.m. and 3 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. 

Do not include personal identifiable 

information in submissions; you should 

submit only information that you wish 

to make available publicly. We may 

redact in part or withhold entirely from 

publication submitted material that is 

obscene or subject to copyright 

protection. All submissions should refer 

to File Number SR–ICC–2023–013 and 

should be submitted on or before 

September 18, 2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–18429 Filed 8–25–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

Sunshine Act Meetings 

TIME AND DATE: 2:00 p.m. on Thursday, 

August 31, 2023. 

PLACE: The meeting will be held via 

remote means and/or at the 

Commission’s headquarters, 100 F 

Street NE, Washington, DC 20549. 

STATUS: This meeting will be closed to 

the public. 

MATTERS TO BE CONSIDERED: 

Commissioners, Counsel to the 

Commissioners, the Secretary to the 

Commission, and recording secretaries 

will attend the closed meeting. Certain 

staff members who have an interest in 

the matters also may be present. 

In the event that the time, date, or 

location of this meeting changes, an 

announcement of the change, along with 

the new time, date, and/or place of the 

meeting will be posted on the 

Commission’s website at https://

www.sec.gov. 

The General Counsel of the 

Commission, or her designee, has 

certified that, in her opinion, one or 

more of the exemptions set forth in 5 

U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) 

and (10) and 17 CFR 200.402(a)(3), 

(a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and 

(a)(10), permit consideration of the 

scheduled matters at the closed meeting. 

The subject matter of the closed 

meeting will consist of the following 

topics: 

Institution and settlement of injunctive 

actions; 

Institution and settlement of 

administrative proceedings; 

Resolution of litigation claims; and 

Other matters relating to examinations 

and enforcement proceedings. 

At times, changes in Commission 

priorities require alterations in the 

scheduling of meeting agenda items that 

may consist of adjudicatory, 

examination, litigation, or regulatory 

matters. 

CONTACT PERSON FOR MORE INFORMATION: 

For further information; please contact 

Vanessa A. Countryman from the Office 

of the Secretary at (202) 551–5400. 

Authority: 5 U.S.C. 552b. 

Dated: August 24, 2023. 

Vanessa A. Countryman, 

Secretary. 

[FR Doc. 2023–18623 Filed 8–24–23; 4:15 pm] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #18092 and #18093; 

TEXAS Disaster Number TX–00660] 

Administrative Declaration of a 

Disaster for the State of Texas 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Texas dated 08/22/2023. 

Incident: Tornado. 

Incident Period: 06/15/2023. 

DATES: Issued on 08/22/2023. 

Physical Loan Application Deadline 

Date: 10/23/2023. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 05/22/2024. 

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 Recovery & 

Resilience, U.S. Small Business 

Administration, 409 3rd Street SW, 

Suite 6050, Washington, DC 20416, 

(202) 205–6734. 

SUPPLEMENTARY INFORMATION: Notice is 

hereby given that as a result of the 

Administrator’s disaster declaration, 

applications for disaster loans may be 

filed at the address listed above or other 

locally announced locations. 

The following areas have been 

determined to be adversely affected by 

the disaster: 

Primary Counties: Ochiltree. 

Contiguous Counties: 

Texas: Hansford, Hutchinson, 

Lipscomb, Roberts. 

Oklahoma: Beaver, Texas. 

The Interest Rates are: 

Percent 

For Physical Damage: 

Homeowners with Credit Available Elsewhere ...................... 5.000 

Homeowners without Credit 

Available Elsewhere .............. 2.500 

Businesses with Credit Available Elsewhere ...................... 8.000 

Businesses without Credit 

Available Elsewhere .............. 4.000 

Non-Profit Organizations with 

Credit Available Elsewhere ... 2.375 

Non-Profit Organizations without Credit Available Elsewhere ..................................... 2.375 

For Economic Injury: 

Businesses & Small Agricultural 

Cooperatives without Credit 

Available Elsewhere .............. 4.000 


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