38370 Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 

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

2 17 CFR 240.19b–4. 

3ERM 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 various 

ICE, Inc. business units, including ICC. The ICC 

BCP & DR Oversight Committee assists in fulfilling 

oversight responsibilities with respect to business 

continuity planning (‘‘BCP’’) and disaster recovery 

(‘‘DR’’) for ICC. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15344 Filed 7–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92402; File No. SR–ICC– 

2021–015] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Notice of Filing of 

Proposed Rule Change Relating to the 

ICC Governance Playbook, ICC Risk 

Management Framework, and ICC 

Treasury Operations Policies and 

Procedures 

July 14, 2021. 

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

Securities Exchange Act of 1934, (the 

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

notice is hereby given that on June 30, 

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 make 

changes to the Governance Playbook, 

Risk Management Framework, and 

Treasury Operations Policies and 

Procedures (‘‘Treasury Policy’’) 

(together, the ‘‘Documents’’). 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 amendments to its 

Governance Playbook, Risk Management 

Framework, and Treasury Policy to 

update descriptions of certain internal 

committees and make other clarification 

or clean-up changes. ICC maintains the 

Participant Review Committee (‘‘PRC’’) 

and the Credit Review Subcommittee of 

the PRC (‘‘CRS’’) (together, the 

‘‘Committees’’), which are internal 

committees that assist in fulfilling 

counterparty review responsibilities 

with respect to ICC’s Clearing 

Participants (‘‘CPs’’) and financial 

service providers (‘‘FSPs’’). The 

proposed changes amend descriptions 

related to membership composition, 

meeting frequency, and responsibilities 

of the Committees in the Documents to 

reflect recent changes to the 

Committees’ charters. 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. 

I. Governance Playbook 

The Governance Playbook contains 

information regarding the roles and 

responsibilities of the Board and various 

committees at ICC. ICC proposes 

amendments in respect of the 

Committees in Section IV (Committees) 

to reflect recent changes to their 

charters. ICC proposes a grammatical 

edit to refer to ‘‘financial services 

providers’’ as ‘‘financial service 

providers’’ in the description of the PRC 

and throughout the document. ICC 

proposes updated language on the 

membership composition of the PRC, 

including to add the ICC Risk Oversight 

Officer as a member. With respect to the 

CRS, the proposed changes remove the 

authority to approve FSPs and specify 

that the CRS has an advisory role. In 

this role, the CRS may make 

recommendations to the PRC with 

respect to matters of creditworthiness of 

CPs and creditworthiness and 

performance of FSPs. The proposed 

changes also update the membership 

composition of the CRS to include the 

Risk Oversight Officer and remove the 

ICC Risk Management representative as 

a voting member. Risk Management 

representatives will participate as nonvoting members and continue to present 

materials to allow the CRS to perform its 

responsibilities and duties. 

II. Risk Management Framework 

ICC proposes conforming revisions to 

the Risk Management Framework to 

update descriptions of the Committees 

and to make other clarification or cleanup changes. ICC proposes to amend 

Section II (Governance and 

Organization) to update a chart that 

details the governance and committee 

structure at ICC. The updated chart 

indicates that the Intercontinental 

Exchange, Inc. (‘‘ICE, Inc.’’) Enterprise 

Risk Management Department (‘‘ERM’’) 

reports to the Board and corrects a 

typographical error to replace the ‘‘BCP 

Oversight Committee’’ with the ‘‘BCP & 

DR Oversight Committee.’’ 3 In Section 

II.A (Committees), the proposed changes 

further clarify the review and approval 

process of the policies and procedures 

that comprise ICC’s overall risk 

management framework, which consists 

of review by the Risk Committee and 

review and approval by the Board at 

least annually. 

In Section II.A (Committees), ICC also 

proposes to update descriptions of the 

Committees to align with their amended 

charters. ICC proposes a grammatical 

edit to refer to ‘‘financial services 

providers’’ as ‘‘financial service 

providers’’ and a footnote to further 

define the entities included as FSPs. 

The proposed changes specify that the 

PRC meets at least quarterly and more 

frequently as needed. Additionally, the 

proposed changes further distinguish 

PRC and CRS responsibilities with 

respect to FSPs, noting that the PRC is 

responsible for overseeing the due 

diligence and approval of FSPs and the 

CRS is responsible for overseeing initial 

due diligence and monitoring ongoing 

credit due diligence for FSPs. ICC also 

proposes language describing the 

advisory role of the CRS to the PRC for 

matters regarding the creditworthiness 

of CPs and the creditworthiness and 

performance of FSPs. ICC further 

proposes to amend Appendix 1 to the 

document to update language related to 

the membership composition of the 

PRC, including to add the Risk 


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Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 38371 

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 17 CFR 240.17Ad–22. 

9 17 CFR 240.17Ad–22(e)(2)(i), (ii) and (v). 

10 Id. 

11 17 CFR 240.17Ad–22(e)(3)(i). 

12 Id. 

13 17 CFR 240.17Ad–22(e)(4)(ii). 

14 Id. 

15 17 CFR 240.17Ad–22(e)(18). 

Oversight Officer as a member, and the 

meeting frequency of the PRC. 

III. Treasury Policy 

ICC proposes corresponding changes 

to Section IV (Cash Settlement) of the 

Treasury Policy to update 

responsibilities of the Committees based 

on their amended charters. Currently, a 

bank’s capitalization, creditworthiness, 

access to liquidity, operational 

reliability and supervision are reviewed 

prior to accepting services, and approval 

of the CRS is required before ICC may 

begin using the bank’s services. Under 

the amended policy, approval of the 

PRC is required before ICC may begin 

using the bank’s services and the CRS 

may make recommendations to the PRC 

regarding approval. 

(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. The proposed rule change 

updates descriptions of the PRC and 

CRS related to membership 

composition, meeting frequency, and 

responsibilities in the Documents to 

reflect recent changes to the PRC and 

CRS charters. Such changes ensure that 

the Documents clearly and accurately 

set out the functions of the Committees 

to remain effective and to ensure that 

the Committees carry out their required 

functions. The proposed clarification 

and clean-up changes would further 

ensure readability and transparency 

across the Documents and should 

enhance the implementation of such 

policies and procedures. The proposed 

rule change is therefore consistent with 

the prompt and accurate clearing and 

settlement of the contracts 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.7

The amendments would also satisfy 

relevant requirements of Rule 17Ad– 

22.8 Rule 17Ad–22(e)(2)(i), (ii) and (v) 9

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, clearly prioritize the 

safety and efficiency of the covered 

clearing agency, and specify clear and 

direct lines of responsibility. The 

proposed changes update governance 

arrangements in the Documents to align 

with the amended PRC and CRS 

charters. These revisions clarify the 

responsibilities and interaction of the 

Committees by specifying the advisory 

role of the CRS to the PRC for matters 

regarding the creditworthiness of CPs 

and the creditworthiness and 

performance of FSPs. The proposed 

changes update membership 

composition and meeting frequency to 

clearly set out the responsibilities and 

duties of ICC personnel in respect of the 

Committees, including the Risk 

Oversight Officer and Risk Management 

representatives. Moreover, the amended 

Risk Management Framework 

memorializes the reporting line of ICE, 

Inc. ERM to the Board and corrects a 

typographical error in respect of the 

BCP & DR Oversight Committee to 

promote clear and transparent 

governance arrangements that specify 

clear and direct lines of responsibility. 

As such, 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 that clearly prioritize the 

safety and efficiency of ICC and specify 

clear and direct lines of responsibility, 

consistent with Rule 17Ad–22(e)(2)(i), 

(ii), and (v).10

Rule 17Ad–22(e)(3)(i) 11 requires each 

covered clearing agency to establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to 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 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, that are subject to 

review on a specified periodic basis and 

approved by the Board annually. ICC 

maintains a sound risk management 

framework that identifies, measures, 

monitors, and manages the range of 

risks that it faces. The amended Risk 

Management Framework further 

clarifies that the review and approval 

process of the policies and procedures 

that comprise ICC’s overall risk 

management framework includes review 

and approval by the Board at least 

annually. As such, the amendments 

would satisfy the requirements of Rule 

17Ad–22(e)(3)(i).12

Rule 17Ad–22(e)(4)(ii) 13 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. The proposed changes 

enhance ICC’s ability to manage its 

financial resources, including by clearly 

articulating its review, approval, and 

monitoring process for CPs and FSPs by 

the Committees across the Documents to 

ensure that such policies and 

procedures remain transparent and upto-date. The proposed changes further 

define the entities included as FSPs to 

ensure that ICC appropriately identifies 

and monitors its counterparty 

relationships. Such amendments ensure 

financial health and the ability to fulfill 

obligations by ICC’s counterparties, 

which promotes and strengthens ICC’s 

own financial condition and supports 

ICC’s ability to maintain its financial 

resources and withstand the pressures 

of defaults, consistent with the 

requirements of Rule 17Ad– 

22(e)(4)(ii).14

Rule 17Ad–22(e)(18) 15 requires each 

covered clearing agency to establish, 

implement, maintain, and enforce 

written policies and procedures 

reasonably designed to establish 

objective, risk-based, and publicly 

disclosed criteria for participation, 

which permit fair and open access by 

direct and, where relevant, indirect 

participants and other financial market 


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38372 Federal Register / Vol. 86, No. 136 / Tuesday, July 20, 2021 / Notices 

16 Id. 

17 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

utilities, require participants to have 

sufficient financial resources and robust 

operational capacity to meet obligations 

arising from participation in the clearing 

agency, and monitor compliance with 

such participation requirements on an 

ongoing basis. ICC believes that the 

proposed rule change will ensure that 

the Committees carry out the functions 

required in their charters to ensure 

proper review and ongoing monitoring 

of CPs and FSPs, including by clarifying 

the responsibilities and interaction of 

the Committees and further defining the 

entities included as FSPs. As such, the 

proposed rule change will strengthen 

ICC’s ability to manage and mitigate the 

potential risks associated with its CPs 

and FSPs, thereby continuing to ensure 

that CPs and FSPs have sufficient 

financial resources and robust 

operational capacity to meet obligations 

and promoting ICC’s ability to monitor 

compliance with such requirements on 

an ongoing basis, consistent with Rule 

17Ad–22(e)(18).16

(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 ICC’s 

Governance Playbook, Risk Management 

Framework, and Treasury Policy will 

apply uniformly across all market 

participants. 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 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–2021–015 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–2021–015. 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–2021–015 and 

should be submitted on or before 

August 10, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.17

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–15337 Filed 7–19–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92406; File No. SR– 

CboeBZX–2021–048] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Its 

Fee Schedule by Adopting a New 

Single Market Participant Identifier 

Investor Tier 

July 14, 2021. 

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

Securities Exchange Act of 1934 

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

notice is hereby given that on July 1, 

2021, Cboe BZX Exchange, Inc. 

(‘‘Exchange’’ or ‘‘BZX’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. 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 

Cboe BZX Exchange, Inc. (the 

‘‘Exchange’’ or ‘‘BZX’’ or ‘‘BZX 

Equities’’) proposes to amend its Fee 

Schedule. The text of the proposed rule 

change is provided in Exhibit 5. 

The text of the proposed rule change 

is also available on the Exchange’s 

website (http://markets.cboe.com/us/ 

equities/regulation/rule_filings/bzx/), at 

the Exchange’s Office of the Secretary, 

and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 


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