1

ICE Clear Europe Limited

Registered in England No.06219884

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

April 25, 2023

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 Self-Certification Pursuant to Commission Rule Rule 40.6 

– Investment Management Procedures Amendments

Dear Mr. Kirkpatrick:

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

derivatives clearing organization under the Commodity Exchange Act, as amended (the 

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

“Commission”), pursuant to Commission Rule 40.6 for self-certification, amendments 

to its Investment Management Procedures (the “Procedures”) to change the maximum 

maturities for certain investments made with amounts held by the Clearing House as 

regulatory capital.1 The amendments will become effective on the first business day 

following the tenth business day after submission, or such later date as ICE Clear 

Europe may determine. 

Concise Explanation and Analysis

ICE Clear Europe is amending the Investment Management Procedures in the Table of 

Authorised Investments and Concentration Limits for ICEU’s Regulatory Capital (the 

“Table”) to change the maximum maturity of certain investments in sovereign and 

government agency bonds. In particular, the maximum maturity on the purchase of US 

Sovereign Bonds, UK Sovereign Bonds, EU Sovereign Bonds, US Government Agency 

Bonds, UK Government Agency Bonds, and EU Government Agency Bonds will be 

1 Capitalized terms used but not defined herein have the meanings specified in the Procedures or, if not 

defined therein, the ICE Clear Europe Clearing Rules. 
2

ICE Clear Europe Limited

Registered in England No.06219884

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

amended from 90 days to 13 months. The amendments align the maximum maturity 

for such investments with the existing maximum maturity for permitted investments in 

the same instrument that are made with cash provided by Clearing Members (“CMs”) 

(e.g., as margin or guaranty fund contribution) and the Clearing House’s own 

contribution to the guaranty fund. By extending the maximum maturity, ICE Clear 

Europe will have the flexibility to invest its regulatory capital in longer term sovereign 

and government bonds. ICE Clear Europe believes that such flexibility is important in 

light of current and expected market conditions, including to assist ICE Clear Europe 

in avoiding having to invest or reinvest in shorter duration instruments during potential 

periods of market volatility, such as those that may arise in connection with U.S. debt 

ceiling developments. 

Compliance with the Act and CFTC Regulations

The amendments to the Investment Management Procedures are potentially relevant to 

the following core principles: (B) Financial Resources and (D) Risk Management and 

the applicable regulations of the Commission thereunder. 

• Financial Resources. As set forth above, the amendments to the Procedures 

are intended to align the maximum maturities for certain investments made 

with ICE Clear Europe’s own regulatory capital with the maximum maturities 

for investments in the same assets when made with Clearing Member cash or 

the Clearing House’s own contribution to the guaranty fund. As with such 

other investments made by the Clearing House, ICE Clear Europe believes 

that investments of its own regulatory capital under the revised Procedures 

will continue to be in assets with minimal credit, market and liquidity risks. 

The investment profile will remain conservative, allowing for investment only 

in the highest rated securities. ICE Clear Europe believes that under the 

revised Procedures, such investments of its capital will be of sufficient high 

quality and liquidity to ensure the Clearing House has adequate liquid 

resources to cover potential business losses that are not related to Clearing 

Member defaults, so that the Clearing House can continue to provide services 

as a going concern. As such, the amendments are consistent with the 

requirements of Core Principle B and Commission Rule 39.11. 

• Risk Management. In ICE Clear Europe’s view, the amendments are 

appropriate to manage investment risks with respect to its regulatory capital. 

As discussed above, the amendments to the Procedures are intended to align 

the maximum maturities for certain investments made with ICE Clear 

Europe’s own regulatory capital with the maximum maturities for investments 

in the same assets when made with Clearing Member cash or the Clearing 

House’s own contribution to the guaranty fund. Although regulatory capital 

serves a different purpose from default resources, ICE Clear Europe does not 

believe it is necessary to distinguish between the two types of investments in 

terms of maximum maturity. ICE Clear Europe believes that the same 

principles of capital preservation and maintaining high levels of liquidity are 

appropriate for all cash managed by the Clearing House. As revised, the 

Procedures will limit investment of Clearing House cash of all varieties to 

instruments with minimal credit, market and liquidity risks, consistent with the 
3

ICE Clear Europe Limited

Registered in England No.06219884

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

manner in which Clearing Member cash and Clearing House guaranty fund 

contributions are currently invested. As such, ICE Clear Europe believes the 

amendments further its overall risk management consistent with the 

requirements of Core Principle D and Commission Rule 39.13.

As set forth herein, the amendments consist of the amendments to the Investment 

Management Procedures. ICE Clear Europe has requested confidential treatment with 

respect to the amendments, which have been submitted concurrently with this selfcertification submission.

ICE Clear Europe hereby certifies that the amendments comply with the Act and the 

Commission’s regulations thereunder. 

ICE Clear Europe received no substantive opposing views in relation to the 

amendments.

ICE Clear Europe has posted a notice of pending certification and a copy of this 

submission on its website concurrent with the filing of this submission. 

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

Head of Regulation & Compliance