1

ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

July 31, 2020

Mr. Christopher J. Kirkpatrick

Office of the Secretariat

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Re: ICE Clear Europe Limited—Amended Submission Under Commission 

Regulations 40.5 and 39.15(b)(2)(ii) for Approval of Commingling of 

Additional Foreign Futures Contracts in Futures Account 

Dear Mr. Kirkpatrick:

ICE Clear Europe Limited (“ICE Clear Europe” or the “Clearing House”), a registered 

derivatives clearing organization (“DCO”) under the Commodity Exchange Act, as 

amended (the “Act”), hereby submits to the Commodity Futures Trading Commission 

(the “Commission”), for approval under Commission Regulations 40.5(a) and 

39.15(b)(2)(ii), this request to permit commingling by the Clearing House and certain 

of its Clearing Members and other futures commission merchants (“FCMs”) of futures 

contracts traded on the ICE Futures Abu Dhabi (“IFAD”) exchange and related 

customer property in the segregated futures customer account under Section 4d of the 

Act.1

 This submission amends and restates in its entirety the prior submission dated 

July 3, 2020. The requested commingling authorization would become effective no 

earlier than the first business day following the 45th calendar day after the original 

submission of this request, and otherwise upon the commencement of trading on IFAD 

(or such later date as ICE Clear Europe may determine). 

1 Capitalized terms used but not defined herein have the meanings specified in the ICE Clear Europe 

Clearing Rules (the “Rules”).
2

ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

1. Overview.

Pursuant to a series of orders (collectively, the “Existing Orders”),2 the Commission 

has previously authorized ICE Clear Europe, its FCM/BD Clearing Members 

(“Clearing Member FCMs”) and other FCMs that clear customer positions at ICE Clear 

Europe through a Clearing Member FCM because they are not themselves Clearing 

Members (“Non-Clearing Member FCMs”) (i) to hold in a futures customer account 

subject to Sections 4d(a) and (b) of the Act customer money, securities and property 

(collectively, “customer property”) used to margin, secure or guarantee both futures 

and options on futures (collectively, “futures”) traded on ICE Futures U.S., a designated 

contract market (“IFUS”), and foreign futures and foreign options as defined in 

Commission Rule 30.1 (collectively, “foreign futures”) traded on ICE Futures Europe 

(“ICE Futures Europe”) or ICE Endex (such IFUS, ICE Futures Europe and ICE Endex 

products, the “Current Covered Products”); and (ii) to provide for portfolio margining 

of the Current Covered Products, in each case subject to the conditions and 

requirements of the Existing Orders.

Intercontinental Exchange, Inc., has announced the planned launch of IFAD, an 

affiliated newly established futures exchange which will form part of the ICE global 

network of exchanges. IFAD is a recognized investment exchange under the laws of 

the Abu Dhabi Global Market (“ADGM”). IFAD plans to operate an energy futures 

and options market, including a physically delivered futures contract whose underlying 

is Murban crude oil and a number of other cash-settled futures contracts related to 

Murban crude oil. IFAD has stated that it may in the future list other crude oil and 

crude-oil-related futures and options thereon and other financial futures and options, 

subject to applicable regulatory authorizations. Contracts traded on IFAD will be 

cleared at ICE Clear Europe. ICE Clear Europe has previously submitted to the 

Commission, for self-certification pursuant to Rule 40.6, certain changes to its Rules 

and General Contract Terms in order to provide clearing services for IFAD.3

 IFAD 

also will apply for registration with the Commission as a foreign board of trade 

(“FBOT”) under Part 48 of the Commission’s regulations.

2. Details of Proposed Change.

ICE Clear Europe is hereby requesting, on behalf of itself and Clearing Member FCMs 

and Non-Clearing Member FCMs, that the Commission extend the commingling 

authorization under the Existing Orders to apply to foreign futures traded on IFAD (as 

defined in further detail below, “Covered IFAD Products”), such that ICE Clear Europe, 

Clearing Member FCMs and Non-Clearing Member FCMs may (i) hold customer 

property used to margin, secure or guarantee Covered IFAD Products in a futures 

customer account subject to Section 4d(a) and (b) of the Act, on the same basis as 

customer property used to margin foreign futures on ICE Futures Europe or ICE Endex, 

2 Treatment of Funds Held in Connection with Clearing by ICE Clear Europe Limited of Contracts 

Traded on ICE Futures Europe and ICE Futures US (Oct 9, 2012); Treatment of Funds Held in 

Connection with Clearing by ICE Clear Europe Limited of Contracts Traded on ICE Futures Europe, 

ICE Futures US and ICE Endex (May 30, 2014); Treatment of Funds Held in Connection with Clearing 

by ICE Clear Europe of Contracts Traded on ICE Futures Europe, ICE Futures US and ICE Endex 

(March 26, 2015).

3 ICE Clear Europe Self Certification Pursuant to Commission Rule 40.6—ICE Futures Abu Dhabi 

(Nov. 20, 2019).
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

and (ii) provide for portfolio margining of Covered IFAD Products with Current 

Covered Products. ICE Clear Europe is not otherwise seeking to change the terms and 

conditions of the Existing Orders. ICE Clear Europe requests that such authorization 

be effective as of the commencement of trading on IFAD.

Pursuant to Commission Rule 39.15(b)(2)(ii), as recently amended, such a request for 

approval of commingling customer positions in futures and foreign futures and related 

customer property in the futures customer account under Section 4d(a) and (b) of the 

Act must be submitted pursuant to Commission Rule 40.5.4

Upon approval by the Commission of this submission and designation of the Covered 

IFAD Products as such by ICE Clear Europe by Circular in the form attached hereto, 

the Covered IFAD Products will constitute Permitted Co-mingled Contracts under the 

Rules. No other changes to the Rules or Procedures of ICE Clear Europe are being 

made pursuant to this submission.

ICE Clear Europe expects that FCM Clearing Members, Non-Clearing Member FCMs, 

and their customers will benefit from the proposed commingling extension, through the 

enhanced protection for customer property that is provided under the Act for the futures 

customer account under Section 4d(a) and (b) of the Act, and the economic efficiencies 

that may be provided by making available appropriate portfolio margining among 

Covered IFAD Products and Current Covered Products. The extension will thus 

facilitate trading and clearing in Covered IFAD Products, which will help provide 

market participants with a broader range of choices for entering into hedging, risk 

management and other transactions globally in the oil sector. As discussed below, ICE 

Clear Europe further believes that the risk of commingling of Covered IFAD Products 

will be appropriately addressed through its existing margin model and other risk 

management arrangements.

3. Informational Requirements.

Commission Rule 39.15(b)(2) identifies categories of information that should be 

included in a DCO’s submission to permit commingling and portfolio margining. We 

address each category in turn.

A. Identification of the Additional Contracts to be Commingled

ICE Clear Europe proposes to permit commingling of the Covered IFAD Products, 

which will consist of energy and financial futures contracts and options thereon that 

may be traded on IFAD at launch or thereafter (the “Covered IFAD Products together 

with the Current Covered Products, the “Covered Products”). The Covered IFAD 

Products expected to be traded following launch of IFAD, which constitute energy 

futures and options contracts, are set out in Annex A hereto. ICE Clear Europe 

contemplates that any other cleared futures or options contracts that may be traded on 

IFAD would also be treated as Covered IFAD Products. 

4 See 85 Fed. Reg. 4800, 4814 (Jan. 27, 2020).
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

B. Analysis of Risk Characteristics of the Commingled Products

ICE Clear Europe has considerable experience with clearing and managing the risks of 

energy futures and option contracts, including the Current Covered Products, as well as 

financials and softs contracts. ICE Clear Europe believes that the Covered IFAD 

Products have substantially similar risk characteristics to the Current Covered Products

in the oil sector. Notably, several of the Covered IFAD Products constitute differential 

or spread contracts relating to other Current Covered Products and similar products. 

ICE Clear Europe has managed the risk of the Current Covered Products on a 

commingled, portfolio basis, for a number of years (in many cases, since the inception 

of clearing in these products) and through a variety of market conditions. 

Specifically, because the risk characteristics of the Covered IFAD Products are 

substantially similar to physically delivered and cash-settled Current Covered Products, 

ICE Clear Europe will margin the Covered IFAD Products using its existing margin 

model for energy products, as discussed below. Covered IFAD Products held in the 

futures customer account will be margined on a gross basis using a one-day margin 

period of risk. In addition, Covered IFAD Products will be covered by existing risk 

management frameworks, policies and practices, as for the Current Covered products, 

including intraday risk management and intraday margining requirements as 

appropriate. Covered IFAD Products will also be incorporated into all relevant F&O 

stress testing scenarios prior to the commencement of clearing for such products.

In terms of delivery risks, and related operational risk considerations, ICE Clear Europe 

believes that the physically delivered Covered IFAD Products, specifically the Murban 

futures contract, will have risk characteristics and requirements similar to the physically 

delivered Current Covered Products (such as the ICE Futures Europe gasoil contract 

and Permian WTI futures contract).

C. Description of Manner of Execution

Covered IFAD Products would be executed and traded on or subject to the rules of 

IFAD. IFAD uses the ICE platform and trading system, which, as the Commission is 

aware, is also used by IFUS, a designated contract market, and ICE Futures Europe, 

ICE Endex, ICE Futures Singapore Pte. Ltd. and ICE NGX Canada Inc., all registered 

foreign boards of trade. The ICE platform and trading system complies with the 

requirements of the Principles for the Oversight of Screen-Based Trading Systems for 

Derivatives Products, as published by the International Organization of Securities 

Commissions (IOSCO).

Among other features, the ICE platform supports, for futures and options products, 

multiple order types, configurable matching algorithms, price reasonability checks and 

circuit breakers, inter-commodity spread pricing and real-time risk management. 

Specifically, IFAD uses the same pre-trade and post-trade risk management controls as 

are used by IFUS and ICE Futures Europe.
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

D. Analysis of Liquidity of Commingled Products

As a general matter, contract liquidity is part of ICE Clear Europe’s risk management 

framework, and the Clearing House considers liquidity among other factors in 

determining whether to accept a contract for clearing. 

The Covered IFAD Products, as contracts that have not yet been launched, do not have 

historical volume or current open interest data. However, the main Covered IFAD 

Product initially cleared is expected to be the Murban Crude Oil Future. Murban crude 

oil is globally recognised across the world for its intrinsic and consistent chemical 

qualities, reliable and stable high production volumes from numerous long-term 

concession and production partners, and an international customer base. Sourced from 

Abu Dhabi, Murban has helped meet the increased demand for light sour crude, 

particularly from Asia. The value of Murban crude oil sold by the Abu Dhabi National 

Oil Company (ADNOC) onshore in the cash market has historically been based on a 

Government Selling Price (more commonly known in the industry as an Official Selling 

Price, or OSP) that is determined using a retrospective pricing formula. ADNOC has 

indicated that it intends to shift to a forward looking Murban oil pricing methodology, 

referencing the average of each day’s Singapore Marker Price for each day of the front 

month Murban Crude Futures Contract listed on IFAD. ICE believes that this shift in 

methodology underpinned by substantial Murban crude production is conducive to the 

establishment of a new Murban futures benchmark in the region. As such, IFAD’s 

decision to launch this contract is based on the belief that it will meet the demand, 

expressed for many years by market participants for a reliable crude oil benchmark 

futures contract in the Middle East, a major oil producing region. 

The 18 cash settled contracts that will be launched together with the Murban Crude Oil 

Future have similarly been discussed with market participants and have been designed 

to provide them with effective risk management tools related to the Murban Crude Oil 

Future. Offering the ability to hedge against significant price points throughout a 

trading day, connecting Murban to other significant benchmarks or allowing to manage 

the price relationship between Murban crude oil, the feedstock and some major Asianbased refined products, they are expected to attract their own liquidity and will also be 

easy to price for liquidity providers.

IFAD has advised ICE Clear Europe that it therefore expects the contracts to have 

significant liquidity from the day of launch and is basing its internal budgeting on the 

expectation of an average 10,000 lots per day (across both the Murban Crude Oil Future 

and the 18 cash settled contracts) of trading from day one and doubling over the 

following months. This expectation has been further reinforced by the strong interest 

expressed by market participants since IFAD made its plans public.

Accordingly, ICE Clear Europe believes that the liquidity of the Covered IFAD 

Products, like that of the other Covered Products, will be such that it and its Clearing 

Members have the ability to offset or mitigate the risk of commingled contracts in a 

timely manner and without compromising the financial integrity of the customer 

account. In the case of a default of an FCM Clearing Member, the Clearing House has 

the ability to conduct an orderly close out of positions, including through the use of 

such techniques as the sale or auction of the FCM Clearing Member’s book of positions 
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

to a solvent Clearing Member, temporary hedging arrangements, entering into 

offsetting transactions on exchanges and other actions it deems appropriate, as set out 

in Part 9 of the ICE Clear Europe Rules and related policies and procedures. These 

procedures and arrangements are designed to permit the Clearing House to manage its 

risk even if liquidity in the relevant contracts is lower than is normal or expected in the 

market. 

E. Analysis of the Availability of Reliable Prices for Commingled Products

Prices for Covered IFAD Products are expected to be available from trading activity on 

IFAD. In addition, where appropriate, ICE Clear Europe may obtain prices from market 

participants or other sources, or use prices from related products for which there is a 

more active trading market.

F. Description of the Financial, Operational and Managerial Standards for FCMs

ICE Clear Europe proposes that FCM Clearing Members and Non-Clearing Member 

FCMs would be permitted to commingle customer positions in Covered IFAD Products 

with other Covered Products in the futures account. As set forth in ICE Clear Europe’s 

Rules5 and Membership Procedures, FCM Clearing Members are subject to extensive 

requirements as to financial, operational, managerial and other standards. 

1. Clearing Member Financial Standards

All FCM Clearing Members are required to maintain minimum capital 

requirements under applicable law (including Commission regulations), as well 

as the additional financial requirements imposed by the Clearing House under 

its Rules and Procedures. Clearing Members are required to provide financial 

statements and other financial information to the Clearing House. Clearing 

Members must also meet Clearing House standards of financial responsibility 

and creditworthiness.

2. Clearing Member Operational and Managerial Standards

FCM Clearing Members, like all Clearing Members of ICE Clear Europe, must 

demonstrate operational competence to perform the duties of a Clearing 

Member, including (i) having all necessary regulatory or other authorizations to 

perform their business, (ii) having sufficient qualities of operational capacity, 

business integrity, reputation and competence as determined by the Clearing 

House, (iii) having facilities, personnel and systems capable of supporting its 

clearing functions, and (iv) having sufficient knowledge about the types of 

contracts that it intends to clear and the related risks. 

Although ICE Clear Europe does not impose standards on Non-Clearing Member 

FCMs, it is expected that Clearing Member FCMs will take into account relevant 

considerations, including financial, operational and managerial capabilities, in 

5 See generally ICE Clear Europe Rules 201-202.
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

determining whether to clear for a Non-Clearing Member FCM, consistent with current 

practice and operation under the Existing Orders.

G. Description of Clearing House Systems and Procedures Used to Oversee 

Clearing Member Risk Management of Commingled Positions

As the Commission is aware, the Clearing House has implemented a comprehensive 

risk management framework applicable to its clearing business, including for its futures 

and foreign futures products. This framework contemplates its existing commingling 

of Current Covered Products pursuant to the Existing Orders. ICE Clear Europe 

believes that this framework will be equally effective if the Covered IFAD Products are 

also commingled in the futures account as contemplated hereby. 

In the context of the products proposed to be commingled, the risk management 

framework focuses on the following considerations:

• Market risk (addressed through a combination of margin and F&O guaranty 

fund contributions, as well as ongoing risk monitoring and market surveillance);

• Liquidity risk (addressed through management of margin and guaranty fund 

assets, including through relevant investment policies and procedures and 

liquidity management procedures);

• Credit risk (regularly monitored and mitigated via membership eligibility 

standards, as well as margin and guaranty fund requirements); and

• Operational risk (mitigated through implementation of risk management and 

other policies and procedures and monitoring of Clearing Members’ compliance 

with them). 

ICE Clear Europe’s risk management functions are led by its risk department. 

H. Description of Financial Resources of the Clearing Organization

ICE Clear Europe maintains and will maintain adequate financial resources to discharge 

its financial obligations as a clearing organization under applicable law. In this regard, 

we note that ICE Clear Europe, in addition to being a registered DCO, is an authorized 

central counterparty under the European Market Infrastructure Regulation (EMIR), a 

clearing house and central counterparty under the UK Financial Services and Markets 

Act 2000 and a registered securities clearing agency under the Securities Exchange Act 

of 1934, as amended (and a “covered clearing agency” under applicable regulations 

thereunder). 

ICE Clear Europe’s financial resources will be available to cover its obligations in 

respect of commingled Covered IFAD Products to the same extent as under its current 

operations. 

Pursuant to its Rules, ICE Clear Europe can apply several forms of financial resources 

to cover losses in connection with a default by a Clearing Member involving F&O 

Contracts (including Covered Products). With respect to the defaulting Clearing 

Member itself, these include margin posted by the defaulting Clearing Member (subject 

to prohibitions on the use of customer account margin to cover proprietary account 
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

losses and to applicable law) and the contribution of the defaulting Clearing Member 

to the F&O Guaranty Fund. To the extent necessary, the Clearing House will also apply 

its own Clearing House F&O Contribution to the F&O default resources. Thereafter, 

ICE Clear Europe can apply contributions to the F&O Guaranty Fund from nondefaulting F&O Clearing Members and, in extreme cases, can make an assessment on 

F&O Clearing Members to cover additional losses. ICE Clear Europe maintains 

separate Guaranty Funds in respect of its F&O and CDS business lines, such that 

guaranty fund contributions of non-defaulting Clearing Members with respect to one 

category of contracts cannot be used to cover losses on contracts in the other categories. 

As of March 31, 2020, initial margin requirements in respect of F&O Contracts were 

approximately USD 60 billion and initial margin deposits in respect of Current Covered 

Products (i.e. energy commodity products) were approximately USD 38 billion. As of 

such date, ICE Clear Europe’s Clearing House contribution to F&O default resources 

was approximately USD 183 million, and the F&O Guaranty Fund was approximately 

USD 3.2 billion.

I. Description of the Margin Methodology Applied to Commingled Positions

ICE Clear Europe intends to continue to use its existing F&O margin methodology for 

the Covered Products, which will permit certain margin offsets among Covered IFAD 

Products and other Covered Products. ICE Clear Europe uses the ICE Risk Model to 

determine potential future exposure for purposes of original margin requirements for 

F&O Contracts, which will include the Covered IFAD Products. The ICE Risk Model 

generally uses a filtered historical simulation method for margin for energy products, 

and also imposes margin add-ons as appropriate including concentration charges and 

stress margin. ICE Clear Europe’s F&O margin methodology will in any event 

continue to conform to the applicable requirements under Commission Rule 39.13 and 

other applicable law.

J. Analysis of Clearing House Ability to Manage a Potential Default With Respect 

to Commingled Products

ICE Clear Europe is confident in its ability to manage a potential default with respect 

to a commingled product. ICE Clear Europe intends to use the same default procedures 

and methodologies that currently exist and that function effectively today under its 

existing rules for Covered Products. ICE Clear Europe does not anticipate any 

incremental difficulties in handling such a default if Covered IFAD Products are carried 

in the futures account of FCM Clearing Members. 

In particular, the Clearing House believes that its default procedures, as discussed in 

subsection K below, together with its F&O margin, F&O Guaranty Fund and other 

financial resources, as discussed in subsections H and I above, are sufficient to permit 

the Clearing House to manage a potential default and comply with its obligations in 

respect thereof under the Act, Commission regulations and other applicable law.
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

K. Discussion of Default Procedures

As set out in its Rules and Procedures (including its Auction Terms for F&O Default 

Auctions), ICE Clear Europe has a detailed and tested a set of procedures for handling 

the default of an F&O Clearing Member, including an FCM Clearing Member. Upon 

the occurrence of a default, the Clearing House is entitled to close out all open contract 

positions of the defaulting Clearing Member, and has broad flexibility in the manner of 

doing so.6

 It is expected that Covered IFAD Products of a defaulting F&O Clearing 

Member would generally be liquidated through transactions on IFAD, where possible. 

If positions could not be unwound through market transactions, ICE Clear Europe 

would be permitted under its Rules to auction the relevant position among its nondefaulting Clearing Members, under its Auction Terms for F&O Default Auctions, or 

take other actions in its discretion and in accordance with the Rules to unwind or settle 

the position.

Following completion of the close-out of all positions in the futures customer account, 

ICE Clear Europe would calculate a net sum under its Rules for that account taking into 

account the close-out loss or gain to the Clearing House, the available margin and 

Guaranty Fund contribution of the defaulting Clearing Member and, if necessary, the 

Clearing House F&O Contribution and available F&O Guaranty Fund contributions of 

non-defaulting Clearing Members in the relevant product category.7 The net sum 

calculated in respect of the commingled futures account would, under the Rules, and 

consistent with applicable law, be determined separately from any other customer 

account class or from the proprietary account of the defaulting Clearing Member.8

Although ICE Clear Europe’s Rules do not generally address the close out by an FCM 

of its customer’s position in the case of a customer default, ICE Clear Europe 

understands that FCMs generally have broad authority, under their client 

documentation, to take steps in the case of default to close out customer positions and 

apply margin provided by the customer. 

L. Description of Arrangement for Obtaining Daily Position Data from each 

Beneficial Owner of Commingled Positions

IFAD itself captures and retains data relating to all transactions on the IFAD market, 

and such data is available for market surveillance purposes as well as for risk 

management by ICE Clear Europe as the clearing organization for the market. In 

addition, ICE Clear Europe’s risk department actively monitors the positions of 

Clearing Members throughout the trading day, including with respect to the 

concentration of a Clearing Member’s positions. To the extent required by applicable 

law or otherwise required in the performance of its clearing functions, ICE Clear Europe 

has the authority under its Rules to obtain additional beneficial owner level position 

data from its Clearing Members. Specifically, among other provisions, Rule 202(a)(v) 

requires a Clearing Member to respond “promptly to any direction by the Clearing 

6 See Clearing House Rules 902-905. 7 See Clearing House Rules 906 and 1604. 8 Under Rule 1604(d), any such net sum payable by the Clearing House is intended to be treated in 

accordance with applicable U.S. law, including the Act and the U.S. Bankruptcy Code.
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

House to provide information or documentation.” In addition, the standard ICE Clear 

Europe GCM file, which Clearing Members are required to provide, includes beneficial 

owner level position data. 

4. Compliance with the Act and Regulations. 

ICE Clear Europe has determined that the proposed commingling of the Covered IFAD 

Products in the futures customer account subject to Sections 4d(a) and (b) of the Act 

complies with the requirements of the Act and the regulations of the Commission. In 

this regard, ICE Clear Europe has considered the DCO Core Principles in Section 5b of 

the Act and has determined that the proposed commingling is potentially relevant to the 

following Core Principles: (D) Risk Management, (F) Treatment of Funds and (G) 

Default Rules and Procedures, and the applicable regulations of the Commission 

thereunder:

• Risk Management. As discussed herein, ICE Clear Europe proposes to set 

margin requirements for the Covered IFAD Products using the ICE Risk Model, 

as it applies to other energy contracts. Pursuant to the ICE Risk Model, and 

consistent with the treatment of Current Covered Products, ICE Clear Europe 

also proposes to provide portfolio margining with respect to Covered IFAD 

Products, together with other Covered Products, including appropriate margin 

offsets. ICE Clear Europe believes that the price risks with respect to Covered 

IFAD Products and the other Covered Products are sufficiently correlated to 

support such portfolio margining to the extent provided in the ICE Risk Model. 

Accordingly, in ICE Clear Europe’s view, the proposed commingling and 

portfolio margining of Covered IFAD Products is consistent with the 

requirements of Core Principle D and Commission Rule 39.13. 

• Treatment of Funds. ICE Clear Europe proposes to permit commingling of 

Covered IFAD Products with other futures and foreign futures in the customer 

futures account under Section 4d(a) and (b) of the Act, as contemplated in 

Commission Rule 39.15(b)(2)(ii). ICE Clear Europe has set forth above relevant 

information in response to the requirements of that Rule, and believes the

requirements are satisfied. Accordingly, ICE Clear Europe believes the 

proposed comingling is consistent with the requirements of Core Principle F 

and Commission Rule 39.15.

• Default Rules and Procedures. ICE Clear Europe believes that its existing 

Rules and Procedures, as modified in the IFAD Filing, are sufficient for it to be 

able to take timely action to close out IFAD contracts and continue to meet its 

obligations in the event of a default by an F&O Clearing Member, including in 

situations where such contracts may be commingled with other futures and 

foreign futures in the futures customer account of an FCM Clearing Member. 

As such, ICE Clear Europe believes that the proposed commingling is consistent 

with the requirements of Core Principle G and Commission Rule 39.16.

ICE Clear Europe has thus determined that the amendments set forth herein, including 

the attached form of Circular, comply with the Act and the rules and regulations 
11

ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

promulgated by the Commission thereunder. ICE Clear Europe is not aware of any 

substantive opposing views expressed regarding the amendments discussed herein. 

5. Governance.

ICE Clear Europe is proposing to adopt the amendments discussed herein in accordance 

with ICE Clear Europe Rules 101 (specifically, the definitions of “Permitted CoMingled Contract” and “U.S. Future”), 1603 and 1605. ICE Clear Europe has 

considered and approved the proposed commingling requested in this submission 

through its internal governance processes. These processes have included review and 

approval of the proposed commingling, in connection with the broader determination 

to accept IFAD products for clearing, by the F&O Product Risk Committee, the Client 

Risk Committee, the Executive Risk Committee and ultimately by the ICE Clear 

Europe Board. 

ICE Clear Europe certifies that, concurrent with this filing, a copy of this submission 

has been posted on its website. 

If you or your staff should have any questions or comments or require further 

information regarding this submission, please do not hesitate to contact the undersigned 

at george.milton@theice.com or +44 20 7429 4564. 

Very truly yours,

George Milton

Interim Head of Regulation & Compliance
12

ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA

Annex A

Initial Covered IFAD Products

Physically Settled Contracts

Murban Futures Contract

Cash Settled Contracts

Crude Outrights Crude Differentials Refined Product Cracks

Murban 1st Line Future Murban Singapore Marker 1st Line 

vs Brent 1st Line Future

Singapore Gasoil (Platts) vs 

Murban 1st Line Future

Murban Singapore Marker 1st 

Line Future

Murban 1st Line Future vs Brent 1st 

Line Future 

Fuel Oil 380 cst Singapore 

(Platts) vs Murban 1st Line 

Future 

Murban 1st Line Balmo Future Murban 1st Line vs Dated Brent 

(Platts) Future

Singapore Mogas 92 Unleaded 

(Platts) vs Murban 1st Line 

Future

Murban Singapore Marker 1st 

Line Balmo Future

Murban Singapore Marker 1st Line 

vs Brent 1st Line Balmo Future

Naphtha C+F Japan ( Platts) vs 

Murban 1st Line Future

Murban Singapore Marker 1st Line 

vs Brent Singapore Marker 1st Line 

Future

Murban Singapore Marker 1st Line 

vs Brent Singapore Marker 1st Line 

Balmo Future

Murban 1st Line vs WTI 1st Line 

Future

Murban 1st Line Future vs Brent 1st 

Line Balmo Future 

Murban 1st Line vs Dated Brent 

(Platts) Balmo Future

Murban 1st Line vs WTI 1st Line 

Balmo Future
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ICE Clear Europe Limited

Registered in England No.06219884

Registered office: Milton Gate, 60 Chiswell Street, London EC1Y 4SA