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Rev. MM08/DD21/2023

26D. Standard Emerging Market Sovereign (“SES”) Single Name.

The rules in this Subchapter 26D apply to the clearance of SES Contracts.

26D-102. Definitions.

Eligible SES Reference Entities

Each particular Reference Entity included in the List of Eligible SES Reference 

Entities as determined by ICE Clear Credit to be eligible (specifically, the 

Federative Republic of Brazil, the United Mexican States, the Bolivarian Republic 

of Venezuela, the Argentine Republic, the Republic of Turkey, the Russian 

Federation, Hungary, the Republic of South Africa, the Republic of Chile, the 

Republic of Peru, the Republic of Colombia, the Republic of Poland, the Republic 

of Panama, Abu Dhabi, Dubai, the State of Israel, the State of Qatar, the Kingdom 

of Saudi Arabia, the Republic of Kazakhstan, the Lebanese Republic, the Republic 

of Croatia, Ukraine, Arab Republic of Egypt, Kingdom of Bahrain, Sultanate of 

Oman, Socialist Republic of Vietnam, Romania, and the Dominican Republic, the 

Kingdom of Morocco and the Federal Republic of Nigeria). For the avoidance of 

doubt, if there are multiple Reference Entity Database codes (as published by 

Markit Group Limited or any successor thereto, such codes “RED Codes”) for a 

particular Reference Entity listed in the List of Eligible SES Reference Entities, 

each such RED Code shall be treated as a separate Eligible SES Reference Entity.

Eligible SES Reference Obligations

With respect to any SES Contract Reference Obligation for any Eligible SES 

Reference Entity, the Reference Obligations determined by ICE Clear Credit to be 

eligible and listed under the heading “Eligible Reference Obligations” for such SES 

Contract Reference Obligation and Eligible SES Reference Entity in the List of 

Eligible SES Reference Entities. In the case of a 2014-Type CDS Contract where 

“Standard Reference Obligation” is applicable to the SES Reference Entity and 

ICE Clear Credit has implemented the Standard Reference Obligation, the 

Standard Reference Obligation shall be an Eligible SES Reference Obligation.

List of Eligible SES Reference Entities

The list of Eligible SES Reference Entities, maintained, updated and published by 

the Board or its designee on the ICE Clear Credit website, specifying the following 

information (and the permissible combinations thereof, which may distinguish, 

where applicable, between 2003-Type CDS Contracts and 2014-Type CDS 

Contracts) with respect to each Eligible SES Reference Entity:

(a) the name of such Eligible SES Reference Entity and the RED Code(s) for 

such Eligible SES Reference Entity;
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Rev. MM08/DD21/2023

(b) each Relevant Physical Settlement Matrix and relevant Transaction Type;

(c) each SES Contract Reference Obligation and each Eligible SES Reference 

Obligation for each such SES Contract Reference Obligation;

(d) each eligible “Scheduled Termination Date”; and

(e) the Sector “Government” (as published by Markit Group Limited or any 

successor thereto).

(f) the eligible Applicable Credit Derivatives Definitions for such Contract.

(g) in the case of a 2014-Type CDS Contract, the eligible Seniority Levels.

(h) in the case of a 2014-Type CDS Contract, whether “Standard Reference 

Obligation” is applicable.

Permitted SES Fixed Rates

The Fixed Rates permitted for a SES Contract, as determined from time to time by 

the Board or its designee and notified to CDS Participants.

Relevant Physical Settlement Matrix

With respect to a SES Contract, the “Credit Derivatives Physical Settlement Matrix” 

applicable to such SES Contract, as specified in the combination of characteristics 

listed as eligible for the relevant Eligible SES Reference Entity in, and permitted 

by, the List of Eligible SES Reference Entities.

SES Contract

A credit default swap in respect of any Eligible SES Reference Entity having a 

combination of characteristics listed as eligible for such Eligible SES Reference 

Entity in, and permitted by, the List of Eligible SES Reference Entities. A SES 

Contract is a CDS Contract for purposes of Chapter 20.

SES Contract Reference Obligations

With respect to any Eligible SES Reference Entity, the Reference Obligation(s) 

listed under the heading “SES Contract Reference Obligations” for such Eligible 

SES Reference Entity in the List of Eligible SES Reference Entities (which, for the 

avoidance of doubt, may indicate “No Reference Obligation”, indicating that no 

obligation is specified as a Reference Obligation). In the case of a 2014-Type CDS 

Contract where “Standard Reference Obligation” is applicable to the SES 

Reference Entity and ICE Clear Credit has implemented the Standard Reference 
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Rev. MM08/DD21/2023

Obligation, the SES Contract Reference Obligation shall thereafter be such 

Standard Reference Obligation, subject to Section 2.9 of the 2014 Definitions.

SES Rules

The rules set forth in Chapters 1 through 8, 20 through 22, inclusive, and the CDS 

Restructuring Rules, as modified by the provisions of this Subchapter 26D.

26D-203. Restriction on Activity.

(a) In addition to the other rights granted to ICE Clear Credit in Rule 203, in the event 

a CDS Participant (or a Non-Participant Party for whom such CDS Participant is 

acting) is subject to an event or agreement described in Rule 26D-206 or in the 

event such CDS Participant submits a Trade of the type described in Rule 26D309(c) that is not a Conforming Trade and such Trade is cleared pursuant to these 

Rules (in each case, an “SR CDS Participant”), ICE Clear Credit may conduct an 

auction process to replace all of the SR CDS Participant’s Open CDS Positions in 

the affected CDS Contracts (including, if applicable, those on behalf of any such 

Non-Participant Party) (each auction in such process, an “SR Auction”). ICE Clear 

Credit shall have the authority to determine the timing and other particular 

characteristics of each SR Auction in consultation with the CDS Default 

Committee, including determining the size of the bid/offer spread and/or of the 

CDS Contracts to be auctioned, whether one or more SR Auctions are to be held 

and the timing and structure of such auctions and whether CDS Participants other 

than the SR CDS Participant will be required to submit actionable quotations in an 

SR Auction.

(b) ICE Clear Credit shall enter into Trades in one or more CDS Contracts with the 

CDS Participant(s) and in the amount determined pursuant to the SR Auction, at 

which time the corresponding Open CDS Positions of the SR CDS Participant shall 

be reduced or terminated, as applicable. The SR CDS Participant and the other 

CDS Participants shall be obligated to submit to Deriv/SERV or another service 

specified by ICE Clear Credit the terms of such reduction, termination or Trade, as 

applicable. Amounts owed by the SR CDS Participant to (or receivable by the SR 

CDS Participant from) ICE Clear Credit in connection with any such reduction or 

termination shall be determined by ICE Clear Credit using the prices determined 

pursuant to the SR Auctions. In addition, any Initial Payments, Margin, or other 

payments or deliveries owed (including the dates of settlement with respect 

thereto) relating to the Open CDS Positions increased, created, reduced or 

terminated pursuant to this Rule 26D-203(b) shall be as determined by ICE Clear 

Credit with reference to the SR Auction and, notwithstanding Rules 301 or 303, 

Initial Payments may be owed in respect to CDS Contracts entered into by ICE 

Clear Credit pursuant to an SR Auction.
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Copyright © 2009-2023. ICE Clear Credit LLC.

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Rev. MM08/DD21/2023

26D-206. Notices Required of Participants with respect to SES Contracts.

In addition to the notice requirements contained in Rule 206, a CDS Participant shall 

provide notice to ICE Clear Credit in the event that such CDS Participant (or a NonParticipant Party for whom such CDS Participant is acting) or an Eligible SES Reference 

Entity consolidates or amalgamates with, or merges into, or transfers all or substantially 

all of its assets to, the Eligible SES Reference Entity or such CDS Participant (or NonParticipant Party for whom such CDS Participant is acting), as applicable, or such CDS 

Participant (or Non-Participant Party for whom such CDS Participant is acting) and an 

Eligible SES Reference Entity are the same entity or are or become Affiliates, or, subject 

to any restrictions on such disclosure imposed by law or regulation, such CDS Participant 

(or Non-Participant Party for whom such CDS Participant is acting) is subject to an 

agreement pursuant to which any of the foregoing is reasonably likely to occur.

26D-303. SES Contract Adjustments.

In addition to the adjustments described in Rule 303, upon clearance of a Trade otherwise 

equivalent to a SES Contract but that:

(a) specifies an Eligible SES Reference Obligation as the “Reference Obligation”, 

such Trade shall become an Open CDS Position in the SES Contract with the SES 

Contract Reference Obligation specified for such Eligible SES Reference 

Obligation in the List of Eligible SES Reference Entities;

(b) an Event Determination Date has occurred with respect to a Restructuring, such 

Trade shall become an Open CDS Position in the SES Contract for which no such 

Event Determination Date has occurred; and/or

(c) specifies a Transaction Type other than Standard Latin America Sovereign or 

Standard Emerging European and Middle Eastern Sovereign, such Trade shall 

become an Open CDS Position in the SES Contract otherwise equivalent to such 

Trade but specifying Standard Latin America Sovereign or Standard Emerging 

European and Middle Eastern Sovereign as the Transaction Type.

26D-309. Acceptance of SES Contracts by ICE Clear Credit.

(a) In addition to the acceptance process described in Rule 309, ICE Clear Credit’s 

notice to the relevant CDS Participants that it has accepted a Trade submitted for 

clearance shall include any adjustment that will be made by ICE Clear Credit 

pursuant to Rule 26D-303. Such CDS Participants’ resubmission of the terms of 

such Trade, as provided in Rule 309, shall include the adjustments described by 

ICE Clear Credit in such notice.

(b) A CDS Participant shall make all reasonable efforts to not submit a Trade for 

clearance as a SES Contract, and any such Trade shall not be a Conforming 

Trade, if the Novation Time would be:
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Rev. MM08/DD21/2023

(i) at a time when the Fallback Settlement Method is applicable to such SES 

Contract;

(ii) at or after the close of business on the calendar day following the Auction 

Final Price Determination Date for such SES Contract; or

(iii) on or after the calendar day following the day on which the Final List (as 

defined in the DC Rules) is published for a Restructuring CDS Contract and 

at or before the close of business on the calendar day following the CDS 

Regional Business Day following the latest possible Exercise Cut-off Date 

for the related Relevant Restructuring Credit Event under such 

Restructuring CDS Contract;

(such time with respect to any SES Contract, the “Clearance Cut-off Time”); 

provided that ICE Clear Credit may, by written notice to all CDS Participants 

following consultation with the Risk Committee, designate a time other than the 

time determined pursuant to clauses (i) through (iii) above as the Clearance Cutoff Time with respect to any SES Contract.

(c) A CDS Participant may not submit a Trade for clearance as a SES Contract, and 

any such Trade shall not be a Conforming Trade, if the time of submission of the 

Trade or acceptance or the Novation Time would be at a time when the CDS 

Participant (or any Non-Participant Party for whom such CDS Participant is acting) 

is, or is an Affiliate of, the Eligible SES Reference Entity for such SES Contract or 

is subject to an agreement under which it is reasonably likely that the CDS 

Participant (or any such Non-Participant Party) will become, or will become an 

Affiliate of, the Eligible SES Reference Entity for such SES Contract. ICE Clear 

Credit will not accept a Trade for clearance and settlement if at the time of 

submission or acceptance of the Trade or at the time of novation the Participant 

submitting the Trade is domiciled in the country of the Eligible SES Reference 

Entity for such SES Contract.

(d) A CDS Participant shall as soon as reasonably practicable notify ICE Clear Credit 

if any Trade it has submitted for clearance was not at the time of submission, or 

ceases to be prior to the Novation Time, a Conforming Trade.

(e) If ICE Clear Credit determines that any Trade submitted for clearance would have 

been subject to a Succession Event (in the case of a 2003-Type CDS Contract) or 

circumstances giving rise to a Successor and a Succession Date (in the case of a 

2014-Type CDS Contract) but will no longer be subject to such Succession Event 

or such circumstances, as the case may be, upon clearance because of the Trade 

Date that would be specified with respect to the related Open CDS Position, ICE 

Clear Credit shall take such action as it deems necessary to ensure that such 

Succession Event is given effect or such circumstances are given effect, as the 

case may be, with respect to such Trade, including, without limitation, declining to 
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Copyright © 2009-2023. ICE Clear Credit LLC.

All rights reserved.

Rev. MM08/DD21/2023

accept such Trade for clearance or specifying an alternate Trade Date for 

purposes of Section 2.1 of the Applicable Credit Derivatives Definitions with 

respect to the relevant portion of the related Open CDS Position.