Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Notices 84979 

by Commission staff to account for an 1800-hour 

work-year and inflation, and multiplied by 5.35 to 

account for bonuses, firm size, employee benefits 

and overhead. 

4The $84/hour figure for a compliance clerk is 

from SIFMA’s Office Salaries in the Securities 

Industry 2013, modified by Commission staff to 

account for an 1800-hour work-year and inflation, 

and multiplied by 2.93 to account for bonuses, firm 

size, employee benefits and overhead. 

5This estimate is based on the following 

calculation: 192 repurchases × 2.5 hours per 

repurchase × $388 hourly cost = $186,240. 

6 In addition, Item 9 of Form N–CSR requires 

closed-end funds to disclose information similar to 

the information that was required in Form N–23C– 

1, which was discontinued in 2004. 

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

2 17 CFR 240.19b–4. 

3Capitalized terms used but not defined herein 

have the meanings specified in the Rules, 

Framework, Playbook, and Operating Agreement, as 

applicable. 

4Partial Amendment No. 1 amends the Exhibit 

5A to correct a typographical error. 

5Self-Regulatory Organizations; ICE Clear Credit 

LLC; Notice of Filing of Proposed Rule Change, as 

Modified by Partial Amendment No. 1, Relating to 

the Clearing Rules, Risk Management Framework, 

Governance Playbook and Sixth Amended and 

Restated Operating Agreement; Exchange Act 

Release No. 34–100876 (Aug. 29, 2024), 89 FR 

72538 (Sep. 5, 2024) (SR–ICC–2024–009) 

(‘‘Notice’’). 

6Capitalized terms not otherwise defined herein 

have the meanings assigned to them in the Rules, 

the Framework, the Playbook, and the Operating 

Agreement, as applicable. 

7The term ‘‘Non-Participant Party’’ is defined in 

the Rules as a Person that is not ICE Clear Credit, 

a Participant or an Affiliate of a Participant, 

including, without limitation, a ‘‘cleared swaps 

customer’’ as defined in CFTC Rule 22.1. 

two hours of clerical time at $84 per 

hour 4). The total annual cost for all 

funds is estimated to be $186,240.5

In addition, the fund must file with 

the Commission a copy of any written 

solicitation to purchase securities given 

by or on behalf of the fund to 10 or more 

persons. The copy must be filed as an 

exhibit to Form N–CSR (17 CFR 249.331 

and 274.128).6 The burden associated 

with filing Form N–CSR is addressed in 

the submission related to that form. 

The estimate of average burden hours 

is made solely for the purposes of the 

Paperwork Reduction Act, and is not 

derived from a comprehensive or even 

a representative survey or study of the 

costs of Commission rules and forms. 

Complying with the collection of 

information requirements of the rule is 

mandatory. The filings that the rule 

requires to be made with the 

Commission are available to the public. 

An agency may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a currently valid control 

number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by November 25, 2024 to 

MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov. 

Dated: October 21, 2024. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–24717 Filed 10–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101382; File No. SR–ICC– 

2024–009] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Approving 

Proposed Rule Change, as Modified by 

Partial Amendment No. 1, Relating to 

the Clearing Rules, Risk Management 

Framework, Governance Playbook and 

Sixth Amended and Restated 

Operating Agreement 

October 18, 2024. 

I. Introduction 

On August 19, 2024, ICE Clear Credit 

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

and Exchange Commission (the 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (the ‘‘Act’’) 1 and Rule 19b–4,2

a proposed rule change to revise the ICC 

(i) Clearing Rules (the ‘‘Rules’’), (ii) Risk 

Management Framework (the 

‘‘Framework’’), (iii) Governance 

Playbook (the ‘‘Playbook’’), and (iv) 

Sixth Amended and Restated Operating 

Agreement (the ‘‘Operating 

Agreement’’).3 On August 27, 2024, ICC 

filed Partial Amendment No. 1 to the 

proposed rule change (hereafter, 

‘‘proposed rule change’’).4 The proposed 

rule change was published for comment 

in the Federal Register on September 5, 

2024.5 The Commission did not receive 

comments regarding the proposed rule 

change. For the reasons discussed 

below, the Commission is approving the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 

A. Background 

ICC is registered with the Commission 

as a clearing agency for the purpose of 

clearing Credit Default Swap (‘‘CDS’’) 

contracts.6 The Proposed Rule Change 

amends the Rules, the Framework, the 

Playbook, and the Operating Agreement. 

The amendments primarily eliminate 

ICC’s existing Risk Management 

Subcommittee; establish a new Risk 

Advisory Working Group; and add to 

ICC’s Risk Committee representatives of 

persons that are not Clearing 

Participants but have an interest in the 

operations of ICC, such as customers of 

Clearing Participants. The amendments 

are discussed below according to the 

document being amended. 

B. Rules 

As noted above, ICC proposes to add 

representatives of non-Clearing 

Participant parties to its existing Risk 

Committee, eliminate its Risk 

Management Subcommittee, and 

establish a Risk Advisory Working 

Group. Currently, as described in ICC 

Rule 509, the Risk Management 

Subcommittee is a subcommittee of the 

Risk Committee, and it includes, as a 

member, a representative of a NonParticipant Party.7 As with the Risk 

Committee, ICC may not take certain 

actions, such as determining products 

eligible for clearing, without first 

consulting the Risk Management 

Subcommittee. 

Going forward, ICC proposes 

including representatives of NonParticipant Parties as members of the 

Risk Committee, rather than a 

subcommittee of the Risk Committee. 

ICC is therefore adding these 

representatives directly to the Risk 

Committee. Accordingly, amendments 

to Rule 501 state that the Risk 

Committee will include representatives 

of Non-Participant Parties. These 

amendments also add a more general 

description of the role of the Risk 

Committee with respect to ICC’s Board, 

to better reflect the inclusion of nonParticipants. The Board will consult 

with the Risk Committee on any matters 

that may materially affect the risk 

profile of ICC, and the Board will 

consider and respond to the proposals, 

recommendations and other input 

provided by the Risk Committee. 

Consistent with this more general 

description of the role of ICC’s Risk 

Committee, ICC is amending Rule 502 to 

clarify that the specific actions subject 

to Risk Committee consultation, which 

are already listed in Rule 502, are not 

intended to limit the general provisions 

described above in Rule 501. 

Moreover, ICC is amending Rule 

503(a) to make certain changes to the 

composition of the Risk Committee, 


lotter on DSK11XQN23PROD with NOTICES1
84980 Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Notices 

8Existing Rule 503(a)(ii) requires that the Board 

approve each member of the Risk Committee, and 

that such approval cannot be unreasonably 

withheld, conditioned or delayed. 9Notice, 89 FR at 72540. 

increase the size of the Risk Committee 

from twelve to fourteen members, and 

add both the requirement to have and 

the process for selecting two Risk 

Committee members who are 

representatives of Non-Participant 

Parties. Amended Rule 503(a) requires 

that: (1) two Non-Participant Parties 

each appoint a representative to serve 

on the Risk Committee; (2) the two NonParticipant Parties making those 

appointments themselves be selected by 

a majority vote of the other Risk 

Committee Members; and (3) those NonParticipant Parties making the 

appointments be active in clearing 

transactions at ICC. Amended Rule 503 

further requires that the appointed 

representatives have risk management 

experience and expertise and be subject 

to the Risk Committee’s approval, which 

could not be unreasonably withheld, 

conditioned, or delayed.8 Additionally, 

the rule requires that the representatives 

be employees of the Non-Participant 

Parties or Affiliates thereof. The 

amended rule provides that a NonParticipant Appointee may be removed 

at any time without cause by the NonParticipant Party that appointed the 

individual, and that if the position 

becomes vacant, the Non-Participant 

Party may appoint another individual. 

Finally, new Rule 503(c) requires that a 

Non-Participant Party appointing 

someone to the Risk Committee execute 

a confidentiality agreement and cause 

its appointee to execute an 

acknowledgment of their confidentiality 

obligations. The amendments also make 

conforming changes to the 

Confidentiality Agreement for Risk 

Committee participants to specify that it 

is being executed by a Market 

Participant rather than a Clearing House 

member. 

To support and facilitate these 

changes, ICC also is amending Rule 505 

to revise the definition of a quorum to 

a majority of the Risk Committee. The 

amendments to Rule 505 also delete an 

additional requirement in the existing 

Rule that at least half of the Participant 

Appointees must be present, and reflect 

the appointment of members by NonParticipant Parties. 

As a result of adding representatives 

of Non-Participant Parties to the Risk 

Committee ICC has determined to 

eliminate its existing Risk Management 

Subcommittee. As discussed above, the 

Risk Management Subcommittee is a 

subcommittee of the Risk Committee 

and includes a representative of a NonParticipant Party. Going forward NonParticipant Parties will have two 

representatives directly on the Risk 

Committee, rather than one 

representative on the subcommittee. 

Accordingly, ICC is amending the 

Rules to remove references to the Risk 

Management Subcommittee and to 

update certain rules to reflect the 

elimination of the subcommittee. For 

example, Rule 201 currently provides 

that the Risk Management 

Subcommittee will have consultation 

rights over certain changes to the 

qualifications for Clearing Participants 

and the admission of new Clearing 

Participants. The amendments replace 

references in Rule 201 to the Risk 

Management Subcommittee with 

references to the Risk Committee. 

Similarly, Rule 202 currently provides 

that ICC’s Board will make decisions on 

a potential Clearing Participant’s 

application on the advice of the ICC 

management and the Risk Management 

Subcommittee. The amendments 

replace references in Rule 202 to the 

Risk Management Subcommittee with 

references to the Risk Committee. The 

amendments also remove references to 

consultation with the Risk Management 

Subcommittee from Rule 601(b), which 

describes circumstances in which the 

Board or an officer of ICC is excused 

from consulting with the Risk 

Committee or subcommittee. Finally, 

the amendments eliminate a reference to 

the Risk Management Committee in 

Rule 703, which relates to investigations 

of potential violations of the Rules by 

ICC’s Clearing Participants. 

With the elimination of the Risk 

Management Subcommittee, ICC is also 

establishing a new Risk Advisory 

Working Group. The Risk Advisory 

Working Group will include 

representatives of Participants and NonParticipant Parties and is intended to be 

a broad forum for risk-based input. 

Accordingly, ICC is amending Rule 509 

to create the Risk Advisory Working 

Group. The amendments clarify that the 

role of the working group is advisory, 

such that neither the Board nor the Risk 

Committee is required to accept or act 

upon any proposal of the working 

group. The amendments specify that the 

Risk Advisory Working Group must 

include as members a minimum of two 

representatives of Participants and a 

minimum of two representatives of NonParticipant Parties. Other amendments 

remove a reference to reporting 

requirements to the CFTC and SEC. 

ICC proposes other changes to reflect 

the new Risk Advisory Working Group. 

For example, another amendment to 

Rule 503(a) provides for a minimum 

number of Participant and NonParticipant Party members on the Risk 

Advisory Working Group. ICC is 

revising the limitations on liability in 

Rule 512 to apply to the Risk Advisory 

Working Group and its members. 

Amendments to Rule 512 also provides 

that the Risk Advisory Working Group 

meet at least twice per year, and that the 

working group provide the Risk 

Committee with a summary of the topics 

discussed and main points raised at 

each meeting. 

Finally, the amendments make 

drafting corrections and clarifications to 

account for the other changes being 

made, including the deletion of 

definitions relevant to the Risk 

Management Subcommittee. For 

example, ICC is amending Rule 507 to 

allow participation in meetings by audio 

or video conference. In addition, the 

amendments add the definitions of NonParticipant Appointees and Risk 

Advisory Working Group. 

C. Framework 

ICC is amending the Framework to 

reflect the changes being made to the 

Rules as described above. All references 

to the Risk Management Subcommittee 

will be replaced with references to the 

new Risk Advisory Working Group. 

Additionally, the governance structure 

chart will be updated to remove the Risk 

Management Subcommittee and add the 

Risk Advisory Working Group. 

Similarly, the Risk subsection will be 

updated to describe the role of the Risk 

Advisory Working Group in providing 

risk-based feedback to ICC on all matters 

that could materially affect the risk 

profile of ICC as discussed above. 

The amendments also remove 

references to ICC’s existing Advisory 

Committee. The Advisory Committee 

was intended to be a forum to solicit 

input from Non-Participant Parties. ICC 

has found that participation in the 

Advisory Committee has been very 

limited, to the point that the Advisory 

Committee is effectively dormant and 

has not met for years.9 As a result, ICC 

is discontinuing the Advisory 

Committee and is instead providing 

roles for Non-Participant Parties on the 

Risk Committee and the Risk Advisory 

Working Group, as discussed above. 

Finally, the amendments also add a 

new revision history section to the 

Framework and re-number the 

Appendices. 

D. Playbook 

ICE Clear Credit is amending the 

Playbook to conform to the amendments 

to the Rules and Framework discussed 


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Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Notices 84981 

10Notice, 89 FR at 72540. 

11Like the Advisory Committee, the FCM 

Executive Council is a dormant committee that has 

not met for years. Notice, 89 FR at 72540. 12Notice, 89 FR at 72540. 

13 15 U.S.C. 78s(b)(2)(C). 

14 15 U.S.C. 78q–1(b)(3)(F). 

15 17 CFR 240.17Ad–22(e)(2)–(3). 

16 15 U.S.C. 78q–1(b)(3)(F). 

above and to make other changes, as 

discussed below. 

The amendments revise Section III of 

the Playbook as it relates to the election 

of ICC Board members. Currently, ICC’s 

Parent must annually elect all Board 

members no less than five business days 

after March 14, which is the date that 

the Risk Committee is reconstituted 

each year. The amendments eliminate 

the five business day requirement and 

instead require that ICC’s Parent 

annually elect all Board members 

following the reconstitution date of 

March 14. ICC is making this change to 

allow Risk Committee members 

sufficient time, following reconstitution 

of the Risk Committee, to consider and 

nominate appointees to the Board.10

Although ICC is removing the five 

business day requirement, pursuant to 

Section 3.03(e) of the Operating 

Agreement, ICC’s parent must still elect 

all managers annually at a meeting to be 

held during the first four months of each 

calendar year. 

The amendments also revise Section 

IV of the Playbook, which describes 

ICC’s various governance committees. 

Here the amendments update the 

description of the Risk Committee; 

eliminate the descriptions of the 

Advisory Committee, Risk Management 

Subcommittee, and the FCM Executive 

Council; 11 add a description of the Risk 

Advisory Working Group; and revise the 

description of the Steering Committee. 

With respect to the Risk Committee, the 

amendments specify that the Risk 

Committee includes representatives of 

customers of ICC CPs and that the Board 

is required to consult with the Risk 

Committee with respect to matters that 

could materially affect the risk profile of 

ICC. The amendments increase the size 

of the Risk Committee from twelve to 

fourteen members and require two 

members of the Risk Committee to be 

representatives of customers of CPs. The 

amendments to Section IV of the 

Playbook also summarize the 

procedures for selecting the two 

representatives of customers of CP 

members, as set out in amended Rule 

503, add a reference to Chapter 5 of the 

Rules, which describes the Risk 

Committee, and rename the Chairman of 

the Risk Committee to the Chairperson. 

The amendments to the Playbook also 

add a description of the purpose and 

membership of the Risk Advisory 

Working Group. The amendments 

provide that the ICC Chief Risk Officer 

will serve as Chairperson of the Risk 

Advisory Working Group, a minimum of 

two members will be representatives of 

CPs, and a minimum of two members 

will be representatives of customers of 

CPs. Another amendment details that 

the Members of the Risk Advisory 

Working Group will be appointed by the 

ICC President, subject to the approval of 

the Risk Committee. The amendments 

also specify that the Risk Advisory 

Working Group will meet at least two 

times a year, and additionally as needed 

to consult all matters that could affect 

ICC’s risk profile. The amendments 

specify the documents relevant to the 

Risk Advisory Working Group will be 

maintained on a shared Legal network 

drive, including the Risk Advisory 

Working Group charter, meeting 

materials, and summaries of the main 

points and topics discussed during 

meetings. Additionally, administrative 

procedures in the Playbook that refer to 

the use of ICC’s Diligent account for 

distributing information to Risk 

Management Subcommittee Members 

will be removed because ICC will not 

use the Diligent system to distribute 

information to members of the Risk 

Management Working Group. Finally, 

references to ICC websites will be 

updated. 

In the description of the Steering 

Committee in the Playbook, the 

amendments remove references to ICE 

Clear Europe. Because ICE Clear Europe 

discontinued its CDS clearing offering 

in late 2023 it no longer participates in 

the Steering Committee.12

Finally, the amendments to the 

Playbook make conforming changes to 

the description and composition of the 

Risk Committee, consistent with the 

amendments to the Rules discussed 

above. References to the Risk 

Management Subcommittee and 

Advisory Committee will be eliminated 

or replaced with references to the Risk 

Advisory Working Group, as applicable. 

E. Operating Agreement 

In accordance with the changes 

discussed above, ICC is amending and 

restating its Operating Agreement to 

delete any reference to the Advisory 

Committee, including the deletion in its 

entirety of Section 3.12 of the Operating 

Agreement, which describes the 

establishment and composition of the 

Advisory Committee. The amendments 

also remove the defined term ‘‘Buy-Side 

Firms,’’ because that term is only used 

in Section 3.12, which, as noted, is 

being deleted in its entirety. 

III. Discussion 

Section 19(b)(2)(C) of the Act directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if such proposed rule 

change is consistent with the 

requirements of the Act and the rules 

and regulations thereunder applicable to 

such organization.13 For the reasons 

discussed below, the proposed rule 

change is consistent with Section 

17A(b)(3)(F) of the Act 14 and Rule 

17Ad–22(e)(2), and Rule 17Ad– 

22(e)(3).15

A. Consistency With Section 

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

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

requires, among other things, that the 

rules of ICC be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions 

and, to the extent applicable, derivative 

agreements, contracts, and transactions 

and the protection of investors and the 

public interest.16 Based on a review of 

the record, and for the reasons 

discussed below, the proposed changes 

to the Rules, Framework, Playbook, and 

Operating Agreement are consistent 

with the promotion of the prompt and 

accurate clearance and settlement of 

transactions at ICC. 

As noted above, the proposed rule 

change eliminates the Risk Management 

Subcommittee and Advisory Committee 

and adds the Risk Advisory Working 

Group. Specifically, the proposal 

amends the Rules, Framework, 

Governance Playbook, and Operating 

Agreement to remove references to the 

Risk Management Subcommittee and 

Advisory Committee and add rules to 

create the new Risk Advisory Working 

Group. The Risk Advisory Working 

Group will be chaired by the ICC Chief 

Risk Officer, with a minimum of two 

members representing Clearing 

Participants and a minimum of two 

members representing customers of 

Clearing Participants. The Risk 

Advisory Working Group will meet at 

least twice a year, or more frequently as 

needed, and will consult on all matters 

that could affect ICC’s risk profile. 

These changes enhance ICC’s risk 

management. Rather than having the 

Risk Committee rely on a subcommittee 

to perform various risk management 

monitoring and responsibilities, the 

Risk Committee will directly perform 

them. Moving the responsibilities of the 

Risk Management Subcommittee into 

the Risk Committee will allow the 


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84982 Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Notices 

17See ICC Governance Playbook, Section III and 

ICC Operating Agreement, Section 3.01. 

18 15 U.S.C. 78q–1(b)(3)(F). 

19 17 CFR 240.17Ad–22(e)(2)(i). 

20 17 CFR 240.17Ad–22(e)(2)(vi). 

21 17 CFR 240.17Ad–22(e)(2)(i) and (e)(2)(vi). 

22 17 CFR 240.17Ad–22(e)(3). 

23 Id. 

24 15 U.S.C. 78q–1(b)(3)(F). 

25 17 CFR 240.17Ad–22(e)(2)(i) and (e)(2)(vi). 

26 17 CFR 240.17Ad–22(e)(3). 

27 15 U.S.C. 78s(b)(2). 

28 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). 

Board-level Risk Committee itself to be 

more engaged in monitoring and 

managing ICC’s risk profile. Because 

ICC’s Board is ultimately responsible for 

ensuring that ICC complies with all 

relevant regulatory requirements,17 this 

enhanced monitoring and management 

of risk at the Board level is consistent 

with the prompt and accurate clearance 

and settlement of securities transactions 

and 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 in the 

operation of clearing services. 

Additionally, as noted above, the 

proposal expands the Risk Committee to 

include representatives of NonParticipant Parties and requires the 

Board to consult with the Risk 

Committee on any matters that may 

materially affect ICC’s risk profile. The 

two Non-Participant Parties will be 

representatives of customers of clearing 

members. Moreover, the Board also will 

be required to consider and respond to 

the proposals and recommendations 

provided by the Risk Committee. These 

changes will encourage participation by 

Non-Participant Parties at ICC, which in 

turn could encourage the clearing of 

transactions involving Non-Participant 

Parties. These changes also will provide 

ICC’s Board with input from NonParticipant Parties on risk-related 

matters, potentially broadening the 

outlook and advice the Board receives. 

For these reasons, these changes as well 

are consistent with the prompt and 

accurate clearance and settlement of 

securities transactions. 

Eliminating a dormant Advisory 

Committee and instead expanding the 

Risk Committee to have representatives 

of customers of clearing participants 

will help ensure the Risk Committee has 

a broad view from more stakeholders of 

the risks ICC faces. Consequently, ICC’s 

Board could be in a better position to 

navigate risks as they arise. Further, by 

requiring the Board to consider and 

respond to Risk Committee proposals 

and recommendations, ICC’s Board will 

be better informed and equipped to 

consider, respond to, and address the 

various risks faced by ICC. These 

changes to the Risk Committee also 

promote the prompt and accurate 

clearance of settlement and securities 

transactions and derivative agreements, 

contracts and transactions cleared by 

ICC. 

For the reasons stated above, the 

Commission finds that the proposed 

rule change is consistent with Section 

17A(b)(3)(F) of the Act.18

B. Consistency With Rule 17Ad–22(e)(2) 

Rules 17Ad–22(e)(2)(i) and (vi) 

require each covered clearing agency to 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to, as applicable, 

provide for governance arrangements 

that are clear and transparent,19 and 

consider the interests of participants’ 

customers and other relevant 

stakeholders.20

As described above, the proposed 

changes to the Rules, Framework, 

Playbook, and Operating Agreement 

expand the Risk Committee to include 

two representatives of Non-Participant 

Parties. In addition, the proposed 

changes also create a Risk Advisory 

Working Group that also includes, at a 

minimum, two representatives from 

Non-Participant Parties. The inclusion 

of Non-Participant Parties will help the 

Risk Committee and Risk Advisory 

Working Group to better consider 

matters that may materially affect the 

risk profile of ICC by including a wider 

array of viewpoints. Accordingly, the 

Risk Committee and Risk Advisory 

Working Group will be better able to 

advise the Board on how ICC can 

manage its risk profile. 

The proposed changes also clearly 

describe the duties of the Risk 

Committee and Risk Advisory Working 

Group to consult on any matters that 

may materially affect ICC’s risk profile 

and require the Board to both consider 

and respond to any proposals from the 

Risk Committee. Additionally, the 

proposed changes require the Risk 

Advisory Working Group to meet at 

least twice a year and provide the Risk 

Committee with a summary of topics 

discussed at each meeting. 

By clearly describing the 

responsibilities of the Risk Advisory 

Working Group and Risk Committee, 

these proposed changes provide for 

clear and transparent governance 

arrangements and consideration of 

participants’ customers and relevant 

stakeholders. 

For the reasons stated above, the 

Commission finds the proposed rule 

changes are consistent with Rules 

17Ad–22(e)(2)(i) and (vi).21

C. Consistency With Rule 17Ad–22(e)(3) 

Under the Act 

Rule 17ad–22(e)(3) requires each 

covered clearing agency to establish, 

implement, maintain and enforce 

written policies and procedures 

reasonably designed to, as applicable, 

maintain a sound risk management 

framework for comprehensively 

managing legal, credit, liquidity, 

operational, general business, 

investment, custody, and other risks 

that arise in or are borne by the covered 

clearing agency, which, among other 

things, includes risk management 

policies, procedures, and systems 

designed to identify, measure, monitor, 

and manage the range of risks that arise 

in or are borne by the covered clearing 

agency.22

As discussed above, the proposed rule 

changes create a Risk Advisory Working 

Group that will meet at least twice 

annually and advise both the Risk 

Committee and the Board on any issues 

that could materially affect the risk 

profile of ICC. The Risk Committee as 

well will meet at least twice annually 

and advise the Board on any issues that 

could materially affect ICC’s risk profile. 

In turn, the proposed rules require the 

Board to consider and respond to any 

Risk Committee proposals. Having both 

a Risk Advisory Working Group and 

Risk Committee considering risks that 

could affect ICC will help the Board 

identify, measure, monitor, and manage 

the range of risks ICC faces. 

For these reasons, the Commission 

finds that the proposed rule change is 

consistent with Rule 17Ad–22(e)(3)(i) 

and (iv) under the Act.23

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change, as modified by Partial 

Amendment No. 1, is consistent with 

the requirements of the Act, and in 

particular, with the requirements of 

Section 17A(b)(3)(F) of the Act 24 and 

Rules 17Ad–22(e)(2) 25 and 17Ad– 

22(e)(3) 26 thereunder. 

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act 27 that the 

proposed rule change, as modified by 

Partial Amendment No. 1 (SR–ICC– 

2024–009), be, and hereby is, 

approved.28


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Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / Notices 84983 

29 17 CFR 200.30–3(a)(12). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–24638 Filed 10–23–24; 8:45 am] 

BILLING CODE 8011–01–P 

STATE JUSTICE INSTITUTE 

Grant Guideline; Notice 

AGENCY: State Justice Institute. 

ACTION: Grant guideline for fiscal year 

(FY) 2025. 

SUMMARY: This guideline sets forth the 

administrative, programmatic, and 

financial requirements attendant to FY 

2025 State Justice Institute grants. 

DATES: October 2, 2024. 

ADDRESSES: State Justice Institute, 12700 

Fair Lakes Circle, Suite 340, Fairfax, VA 

22033. 

FOR FURTHER INFORMATION CONTACT: 

Jonathan Mattiello, Executive Director, 

State Justice Institute, 703–660–4979, 

jonathan.mattiello@sji.gov. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the State Justice Institute Act of 1984 

(42 U.S.C. 10701 et seq.), the State 

Justice Institute is authorized to award 

grants, cooperative agreements, and 

contracts to State and local courts, 

nonprofit organizations, and others for 

the purpose of improving the quality of 

justice in the State courts of the United 

States. 

The following Grant Guideline is 

adopted by the State Justice Institute for 

FY 2025. 

Table of Contents 

I. Eligibility 

II. Grant Application Deadlines 

III. The Mission of the State Justice Institute 

IV. Grant Types 

V. Application and Submission Information 

VI. How To Apply 

VII. Post-Award Reporting Requirements 

VIII. Compliance Requirements 

IX. Financial Requirements 

X. Grant Adjustments 

I. Eligibility 

Pursuant to the State Justice Institute 

Act of 1984 (42 U.S.C. 10701 et seq.), 

the State Justice Institute (SJI) is 

authorized to award grants, cooperative 

agreements, and contracts to State and 

local courts, national nonprofit 

organizations, and others for the 

purpose of improving the quality of 

justice in the State courts of the United 

States. 

SJI is authorized by Congress to award 

grants, cooperative agreements, and 

contracts to the following entities and 

types of organizations: 

• State and local courts and their 

agencies (42 U.S.C. 10705(b)(1)(A)). 

• National nonprofit organizations 

controlled by, operating in conjunction 

with, and serving the judicial branches 

of State governments (42 U.S.C. 

10705(b)(1)(B)). 

• National nonprofit organizations for 

the education and training of judges and 

support personnel of the judicial branch 

of State governments (42 U.S.C. 

10705(b)(1)(C)). An applicant is 

considered a national education and 

training applicant under section 

10705(b)(1)(C) if: 

D the principal purpose or activity of 

the applicant is to provide education 

and training to State and local judges 

and court personnel; and 

D the applicant demonstrates a record 

of substantial experience in the field of 

judicial education and training. 

• Other eligible grant recipients (42 

U.S.C. 10705 (b)(2)(A) through (D)). 

D Provided that the objectives of the 

project can be served better, SJI is also 

authorized to make awards to: 

Æ Nonprofit organizations with 

expertise in judicial administration 

Æ Institutions of higher education 

Æ Individuals, partnerships, firms, 

corporations (for-profit organizations 

must waive their fees) 

Æ Private agencies with expertise in 

judicial administration 

D SJI may also make awards to State 

or local agencies and institutions other 

than courts for services that cannot be 

adequately provided through 

nongovernmental arrangements (42 

U.S.C. 10705(b)(3)). 

SJI is prohibited from awarding grants 

to Federal, Tribal, and international 

courts. 

II. Grant Application Deadlines 

The SJI Board of Directors makes 

awards on a Federal fiscal year quarterly 

basis. Applications may be submitted at 

any time but will be considered for 

award based only on the timetable 

below. 

TABLE 1—APPLICATION DEADLINES BY

FEDERAL FISCAL YEAR QUARTER

Federal fiscal year quarter Application 

due date 

1 ............................................. November 1. 

2 ............................................. February 1. 

3 ............................................. May 1. 

4 ............................................. August 1. 

To be considered timely, an 

application must be submitted by the 

application deadline noted above. 

Applicants must use the SJI Grants 

Management System (GMS) to submit 

all applications and post-award 

documents. The SJI GMS is accessible at 

https://gms.sji.gov. SJI urges applicants 

to submit applications at least 72 hours 

prior to the application due date to 

allow time for the applicant to receive 

an application acceptance message and 

to correct in a timely fashion any 

problems that may arise, such as 

missing or incomplete forms. 

Questions related to the SJI Grant 

Program or the SJI GMS should be 

directed to contact@sji.gov. 

III. The Mission of the State Justice 

Institute 

The State Justice Institute 

Authorization Act of 1984 (42 U.S.C. 

10701 et seq.) established SJI to improve 

the administration of justice in the State 

courts of the United States. Incorporated 

in the State of Virginia as a private, 

nonprofit corporation, SJI is charged, by 

statute, with the responsibility to: 

• direct a national program of 

financial assistance designed to ensure 

that each citizen of the United States is 

provided ready access to a fair and 

effective system of justice; 

• foster coordination and cooperation 

with the Federal judiciary; 

• promote recognition of the 

importance of the separation of powers 

doctrine to an independent judiciary; 

and 

• encourage education for judges and 

support personnel of State court systems 

through national and state 

organizations. 

To accomplish these broad objectives, 

SJI is authorized to provide funding to 

State courts, national organizations that 

support and are supported by State 

courts, national judicial education 

organizations, and other organizations 

that can assist in improving the quality 

of justice in the State courts. 

Through the award of grants, 

contracts, and cooperative agreements, 

SJI is authorized to perform the 

following activities: 

• support technical assistance, 

demonstrations, special projects, 

research, and training to improve the 

administration of justice in the State 

courts; 

• provide for the preparation, 

publication, and dissemination of 

information regarding State judicial 

systems; 

• participate in joint projects with 

Federal agencies and other private 

grantors; 

• evaluate or provide for the 

evaluation of programs and projects to 

determine their impact upon the quality 

of criminal, civil, and juvenile justice 

and the extent to which they have 


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