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ICE Clear Europe Limited

Registered in England No.06219884

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

October 20, 2022

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 40.6 –

Investment Management Procedures

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 “Investment Management Procedures” 

or “Procedures”)1 discussed herein. 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 its Investment Management Procedures to clarify certain 

permitted investments and related limits for the Clearing House when managing cash 

received from Clearing Members as margin or from the Clearing House’s contribution 

to the guaranty fund. 

ICE Clear Europe has updated the Table of Authorised Investments and Concentration 

Limits for Cash from CMs and from Skin In The Game (the “Table”) in the Procedures 

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

Clearing Rules and the Investment Management Procedures.
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ICE Clear Europe Limited

Registered in England No.06219884

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

to make certain clarifications that reflect limitations on investments that can be made 

with customer funds provided by FCM Clearing Members under applicable law. The 

amendments reflect restrictions that ICE Clear Europe currently observes (and are 

described elsewhere in the existing Procedures), and accordingly will not constitute a 

change in practice. Specifically, the amendment providesthat the reference in the Table 

to there being “no limit” for counterparty concentration in respect to investments in (i) 

US government agency bonds and (ii) UK government agency bonds, as well as the 

15% concentration limit specified for the purchase of EU government agency bonds 

each applies to cash provided by non-FCM Clearing Members. The amendments also 

state explicitly in the Table that FCM customer funds may not be invested in such 

assets. The changes reflect limitations under Commission regulations, including 

Commission Rule 1.25.

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 Such updates are intended to provide greater clarity in the 

Table as to the permissible investment of customer cash provided by Clearing Members 

and accurately document existing practices, consistent with legal requirements.

Compliance with the Act and CFTC Regulations

The amendments to the Procedures are potentially relevant to the following core 

principles: (F) Treatment of Funds, and the applicable regulations of the Commission 

thereunder. 

• Treatment of Funds. As discussed above, the amendments to the Investment 

Management Procedures are intended to more clearly document investment 

limitations in connection with the investment of customer funds provided by 

FCM Clearing Members to reflect current practice and applicable law, 

including the requirements of CFTC regulations. As such, the revised 

Investment Management Procedures will help enable the Clearing House to 

safeguard such assets and ensure that such assets are invested in instruments 

with minimal credit, market and liquidity risks that comply with the 

requirements of Commission Rule 1.25. As such, ICE Clear Europe believes 

the amendments are consistent with the requirements of Core Principle F and 

Commission Rule 39.15.

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

Management Procedures, a copy of which is attached hereto. ICE Clear Europe has 

requested confidential treatment with respect to the amendments, which have been 

submitted concurrently with this self-certification 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. 

2 Consistent with ICE Clear Europe’s current practice, certain limitations in the amendments are more 

restrictive than required under CFTC regulations. For example, investment of FCM customer funds by 

ICE Clear Europe in U.S. agency securities is not permitted, as described in the amendments, although 

CFTC Rule 1.25(b)(3)(i)(B) would permit investment in U.S. agency obligations up to a maximum of 

50 percent of the total assets held in segregation by the derivatives clearing organization. 17 C.F.R. 

1.25(b)(3)(i)(B). A footnote referencing this rule would be included in the Table.
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ICE Clear Europe Limited

Registered in England No.06219884

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

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