February 4, 2021

VIA ELECTRONIC PORTAL

Mr. Christopher Kirkpatrick

Secretary

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

RE: ICE Clear Credit Swap Submission Related to Mandatory Clearing Determinations 

Dear Mr. Kirkpatrick:

ICE Clear Credit LLC (“ICE Clear Credit”) hereby submits (pursuant to the information requirements of Title 17 

of the Code of Federal Regulations, Chapter 1 §39.5) to the U.S. Commodity Futures Trading Commission 

(“CFTC” or “Commission”) the 5-year tenor in series 25, 26, 27, 28, 29, 30, 31, 32, 33, and 34 of the iTraxx Asia 

Ex-Japan Investment Grade (“IG”) (Restricted) sub-index, maturing on June 20, 2021, December 20, 2021, June 

20, 2022, December 20, 2022, June 20, 2023, December 20, 2023, June 20, 2024, December 20, 2024, June 20, 

2025, and December 20, 2025 respectively, (the “Indices” or “Submitted Swaps”) for a mandatory clearing 

determination.

§39.5 Review of swaps for Commission determination on clearing requirement. 

(b) Swap submissions. 

(2) A derivatives clearing organization shall submit swaps to the Commission, to the extent reasonable and 

practicable to do so, by group, category, type, or class of swaps.

Table 1 below identifies the characteristics of the Submitted Swaps; specifically its type, region, rating and 

spread-level, as follows:

Type

The single-name Credit Default Swap (“CDS”) constituents of the Indices reference the debt of 

corporate, financial corporate and sovereign entities (“Referenced Entities”). The Indices exclude 

entities deemed or expected to be impacted by the sanctions imposed under Executive Order No. 13959

(the “Order”).

Region

All Referenced Entities are incorporated in Asia.

Rating

All Referenced Entities are considered investment grade by the administrator of the Indices.
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 2

Spread Level

Not applicable. Applicable only when the reference entity selection criteria include spread-level.

Table 1

Index Classification

Index Name

Swap

Type Region Rating

Spread 

Level Series Maturity (Tenor) Currency

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

25 6/20/2021 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

26 12/20/2021 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

27 6/20/2022 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

28 12/20/2022 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

29 6/20/2023 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

30 12/20/2023 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

31 6/20/2024 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

32 12/20/2024 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

33 6/20/2025 (5Y) USD

Corporate & 

Sovereign Debt

Asia IG n/a iTraxx Asia Ex-Japan 

IG (Restricted)

34 12/20/2025 (5Y) USD

§39.5(b)(3)(i) Statement of Eligibility 

“A statement that the derivatives clearing organization is eligible to accept the swap, or group, category, type, 

or class of swaps for clearing and describes the extent to which, if the Commission were to determine that the 

swap, or group, category, type, or class of swaps is required to be cleared, the derivatives clearing organization 

will be able to maintain compliance with section 5b(c)(2) of the Act.”

ICE Clear Credit is a Derivatives Clearing Organization (“DCO”) pursuant to Section 5b of the United States 

Commodity Exchange Act, as amended (the “CEA”), and as such is supervised by the CFTC. ICE Clear Credit 

became a DCO on July 16, 2011 pursuant to Section 725 of the Dodd-Frank Act (the “Conversion Date”), and

since the Conversion Date, ICE Clear Credit has cleared commodity-based swaps similar to the Indices submitted 

herein in compliance with section 5b(c)(2) of the CEA.
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 3

§39.5(b)(3)(ii) Information Related to the Act’s Swap Submission Review Requirements

“A statement that includes, but is not limited to, information that will assist the Commission in making a 

quantitative and qualitative assessment of the following factors:” 

(A) “The existence of significant outstanding notional exposures, trading liquidity, and adequate pricing 

data.”

Table 2 below provides data describing the adequacy of end-of-day pricing data for the Submitted Swaps. Three 

columns identify the Submitted Swaps by index, series and tenor. 

The Indices only became available for trading on January 14, 2021 and were launched in response to the impact of 

the sanctions imposed under the Order on the iTraxx Asia ex-Japan indices. There are no outstanding positions in 

the Depository Trust & Clearing Corporation (“DTCC”) Trade Information Warehouse (“TIW”), as-of January

25, 2021, among legal entities that are Clearing Participants of ICE Clear Credit (“CPs” or “Clearing 

Participants”). 

ICE Clear Credit’s rules require CPs to submit end-of-day pricing data for any swap for which they have a 

relevant cleared interest. ICE Clear Credit recently demonstrated the ability of CPs to provide end-of-day price 

discovery submissions for the Indices. During a one-week price collection period from January 25 through 

January 29, 2021, ICE Clear Credit asked all 29 of its CPs to provide submissions for all sub-indices. This Table 2 

entry consists of two columns summarizing the results of the one-week price collection period. The first column 

provides the number of CPs providing submissions. The second column provides the average dispersion of 

submissions. For the purposes of this analysis, ICE Clear Credit defines dispersion as the difference between the 

highest and lowest submission mid-level after removing the submissions of the two Affiliate Groups with the 

highest and lowest mid-levels from the sample. The table expresses dispersion as a percentage of the bid-offer 

width (“BOW”) established each day for the given swap by ICE Clear Credit.

 Table 2

Index Series Tenor ICC EOD Price Collection Summary1

CPs Providing 

Submissions

Average 

Dispersion

(% of ICE BOW)2

iTraxx Asia Ex-Japan IG (Restricted) 25 5Y 20 15%

iTraxx Asia Ex-Japan IG (Restricted) 26 5Y 20 12%

iTraxx Asia Ex-Japan IG (Restricted) 27 5Y 20 15%

iTraxx Asia Ex-Japan IG (Restricted) 28 5Y 20 31%

iTraxx Asia Ex-Japan IG (Restricted) 29 5Y 20 34%

iTraxx Asia Ex-Japan IG (Restricted) 30 5Y 20 38%

iTraxx Asia Ex-Japan IG (Restricted) 31 5Y 20 26%

iTraxx Asia Ex-Japan IG (Restricted) 32 5Y 20 24%

iTraxx Asia Ex-Japan IG (Restricted) 33 5Y 20 17%

iTraxx Asia Ex-Japan IG (Restricted) 34 5Y 22 22%

 

1 Price collection period from January 25, 2021 through January 29, 2021

2 Average Dispersion calculated using Affiliate Group submissions
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 4

(B) Clearinghouse Capabilities

“The availability of rule framework, capacity, operational expertise and resources, and credit support 

infrastructure to clear the contract on terms that are consistent with the material terms and trading 

conventions on which the contract is then traded.”

Rule Framework – ICE Clear Credit maintains a comprehensive set of rules that are publicly available and may be 

viewed at https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf and are listed herein as 

Exhibit A.

Capacity, Operational Expertise and Resources – ICE Clear Credit is the largest, leading, and most active CDS 

clearinghouse in the world as measured by (1) number and diversification of cleared CDS contracts, (2) volume, 

(3) open interest, (4) amount of default resources (margin collateral and guaranty fund deposits), and (5) number 

of active CDS CPs. As of January 8, 2021, ICE Clear Credit lists 691 CDS instruments for clearing. As of January 

8, 2021, ICE Clear Credit has cleared approximately 3,885,357 trades representing over $108.5 trillion of gross 

notional value, resulting in open interest of $1.4 trillion (additional ICE Clear Credit’s statistics may be viewed at 

https://www.theice.com/clear-credit).

The following financial institutions have been approved as ICE Clear Credit CPs: Bank of America, N.A., 

Barclays Bank PLC, Barclays Capital Inc., BofA Securities, Inc., BNP Paribas, BNP Paribas Securities Corp., 

Citibank N.A., Citigroup Global Markets Inc., Credit Suisse International, Credit Suisse Securities (USA) LLC, 

Deutsche Bank AG, Goldman Sachs & Co. LLC, Goldman Sachs International, HSBC Bank USA, N.A., HSBC 

Bank plc, HSBC Securities (USA) Inc., J.P. Morgan Chase Bank, National Association, J.P. Morgan Securities 

LLC, Merrill Lynch International, Morgan Stanley Capital Services LLC, Morgan Stanley & Co. LLC, Nomura 

International PLC, Nomura Securities International, Inc., Société Générale, SG Americas Securities LLC, The 

Bank of Nova Scotia, UBS AG, London Branch, UBS Securities LLC, and Wells Fargo Securities LLC. 

Credit Support Infrastructure – As of September 30, 2020, ICE Clear Credit’s margin on deposit is approximately 

$46 billion and Guaranty Fund amount is approximately $3.0 billion. On a daily basis, ICE Clear Credit processes 

millions of dollars in settlements. 

(C) Impact on Systemic Risk

“The effect on the mitigation of systemic risk, taking into account the size of the market for such contract and 

the resources of the derivatives clearing organization available to clear the contract.”

The effect on mitigation of systemic risk from the clearing of the Submitted Swaps is believed to be material for 

the following reasons: 

 ICE Clear Credit’s CPs are amongst the most active CDS market participants and continue to clear a 

significant portion of their clearing-eligible portfolio.

 The multi-lateral netting achieved through the clearing process has been significant historically and has

substantially reduced the number and notional amount of outstanding bi-lateral positions.

 ICE Clear Credit has developed a robust risk management framework that has been extensively reviewed 

by regulators, industry participants and third-party experts.

 ICE Clear Credit’s price discovery process is working successfully to provide reliable inputs to its risk 

models.
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 5

(D) Competition

“The effect on competition, including appropriate fees and charges applied to clearing.”

ICE Clear Credit’s fee structure is appropriate and its margin and guaranty fund computations suitably account for 

the risk brought to the clearinghouse.

(E) Insolvency Protection

“The existence of reasonable legal certainty in the event of the insolvency of the relevant derivatives clearing 

organization or one or more of its clearing members with regard to the treatment of customer and swap 

counterparty positions, funds, and property.”

ICE Clear Credit believes that there is reasonable legal certainty in the event of the insolvency of ICE Clear 

Credit or a CP with regard to the treatment of house and customer positions, funds and property in connection 

with the clearing of the submitted swap.

ICE Clear Credit’s CPs consist of several types of institutions, principally futures commission merchants 

(“FCMs”) (including FCMs that are also broker-dealers), U.S. banks and non-U.S. banks. In the event of a CP

insolvency, ICE Clear Credit is of the view, based on the advice of counsel in the relevant jurisdictions, that ICE 

Clear Credit would be permitted to exercise its rights to close out house positions and apply margin and other 

property of the defaulting CP in accordance with its rules. With respect to customer positions, which must be 

carried through an FCM CP, the submitted swap would constitute “commodity contracts” for purposes of the 

commodity broker liquidation provisions of the U.S. Bankruptcy Code. Under the Bankruptcy Code and the 

Commission’s Part 190 regulations, ICE Clear Credit would have the ability to close out customer positions 

following the insolvency of the CP and/or, in appropriate circumstances, facilitate a transfer of such positions to 

another, solvent CP. Customer property provided in respect of submitted contracts would be subject to the 

protections for customer property under the Part 190 regulations for the cleared swaps account class. Under the 

Commission’s Part 22 regulations for cleared swaps, ICE Clear Credit is required to segregate cleared swap 

customer property. As such, customer property would be subject to distribution to cleared swap customers of the 

insolvent FCM in accordance with those regulations.

With respect to an ICE Clear Credit insolvency, ICE Clear Credit would itself be a commodity broker subject to 

the Bankruptcy Code and Part 190 regulations. ICE Clear Credit believes, based on the advice of counsel, that 

under the applicable provisions of those laws and regulations, ICE Clear Credit rules providing for the termination 

of all outstanding contracts and the application and/or return of remaining member and customer property to CPs

would similarly be enforceable.

§39.5(b)(3)(iii) Product Specifications

“Product specifications, including copies of any standardized legal documentation, generally accepted contract 

terms, standard practices for managing any life cycle events associated with the swap, and the extent to which 

the swap is electronically confirmable.”

The submitted swap is electronically confirmable. Lifecycle events are processed by ICE Clear Credit and DTCC 

subject to determinations committee and industry groups. Product specifications are included below. 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 6

26J. iTraxx Asia/Pacific.

The rules in this Subchapter 26J apply to the clearance of iTraxx Asia/Pacific Untranched 

Contracts.

26J-102. Definitions.

iTraxx Asia/Pacific Untranched Contract

A credit default swap in respect of any Eligible iTraxx Asia/Pacific Untranched Index and 

governed by any iTraxx Asia/Pacific Untranched Terms Supplement. An iTraxx 

Asia/Pacific Untranched Contract is a CDS Contract for purposes of Chapter 20.

iTraxx Asia/Pacific Untranched Publisher

Markit Group Limited or its successor, or any successor sponsor of the Eligible iTraxx 

Asia/Pacific Untranched Indexes it publishes.

iTraxx Asia/Pacific Untranched Rules

The rules set forth in Chapters 1 through 8 and 20 through 22, inclusive, as modified by 

the provisions of Subchapter 26E and this Subchapter 26J.

iTraxx Asia/Pacific Untranched Terms Supplement

Any one of the following: 

(a) The iTraxx Asia/Pacific Legacy Untranched Standard Terms Supplement as 

published on September 20, 2014 together with the fourth paragraph of the form 

of confirmation published on September 20, 2014 with respect to such standard 

terms supplement (or any relevant electronic equivalent thereof) (the “Legacy 

2014 Supplement”). 

(b) The iTraxx Asia/Pacific Untranched Standard Terms Supplement as published 

on September 20, 2014 together with the third paragraph of the form of 

confirmation published on September 20, 2014 with respect to such standard 

terms supplement (or any relevant electronic equivalent thereof) (the “New 2014 

Supplement”, and together with the Legacy 2014 Supplement, the “2014 

Supplements”).

(c) The iTraxx Asia/Pacific Untranched Standard Terms Supplement as published 

in January 2020 together with the third paragraph of the form of confirmation 

published in January 2020 with respect to such standard terms supplement (or any 

relevant electronic equivalent thereof) (the “2020 Supplement”).

(d) The iTraxx Asia/Pacific Legacy Untranched Standard Terms Supplement as 

published in January 2020 together with the fourth paragraph of the form of 

confirmation published in January 2020 with respect to such standard terms 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 7

supplement (or any relevant electronic equivalent thereof) (the “Legacy 2020

Supplement”).

(e) Such other supplement as may be specified in relation to any Eligible iTraxx 

Asia/Pacific Untranched Index by ICE Clear Credit, including any successor to any 

of the documents listed in subparagraphs (a)-(d) of this definition. 

For purposes of each iTraxx Asia/Pacific Untranched Contract, a reference in the 

iTraxx Asia/Pacific Untranched Terms Supplement to an “iTraxx Master 

Transaction” shall be deemed a reference to an iTraxx Asia/Pacific Untranched 

Contract. 

Eligible iTraxx Asia/Pacific Untranched Index

Each particular series and version of an iTraxx Asia ex-Japan or iTraxx Australia index or 

sub-index, as published by the iTraxx Asia/Pacific Untranched Publisher, determined by 

ICE Clear Credit to be eligible and included in the List of Eligible iTraxx Asia/Pacific 

Untranched Indexes.

List of Eligible iTraxx Asia/Pacific Untranched Indexes

The list of Eligible iTraxx Asia/Pacific Untranched Indexes, maintained, updated and 

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

following information with respect to each index:

(a) the name (either iTraxx Asia ex-Japan or iTraxx Australia) and series, including 

any applicable sub-index designation;

(b) the “Effective Date”;

(c) one or more eligible “Scheduled Termination Dates” and the applicable “Fixed 

Rate” for each such date;

(d) the Relevant iTraxx Asia/Pacific Untranched Terms Supplement;

(e) the versions (and related annex dates) eligible for clearing (and, if applicable for 

the relevant index, the Applicable Credit Derivatives Definitions for each 

component); and

(f) any inactive versions (and related annex dates), i.e., those that have been 

determined to be fungible with later versions.

Relevant iTraxx Asia/Pacific Untranched Terms Supplement

With respect to an Eligible iTraxx Asia/Pacific Untranched Index, the iTraxx Asia/Pacific 

Untranched Terms Supplement specified for such Eligible iTraxx Asia/Pacific Untranched 

Index in the List of Eligible iTraxx Asia/Pacific Untranched Indexes.
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 8

26J-309. Acceptance of iTraxx Asia/Pacific Untranched Contracts by ICE Clear Credit.

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

as a iTraxx Asia/Pacific Untranched Contract, and any such Trade shall not be a 

Conforming Trade, if the Novation Time would be:

(i) at a time when the Fallback Settlement Method is applicable to a Credit Event with 

respect to such iTraxx Asia/Pacific Untranched Contract; or

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

Price Determination Date for a Credit Event with respect to such iTraxx Asia/Pacific 

Untranched Contract; 

(such time with respect to any iTraxx Asia/Pacific Untranched 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 clause (i) or (ii) above as the Clearance Cut-off Time with 

respect to any iTraxx Asia/Pacific Untranched Contract. CDS Participants may again 

submit Trades for clearance as such iTraxx Asia/Pacific Untranched Contract, and such 

Trades shall again be Conforming Trades, following receipt of notice from ICE Clear 

Credit that a Fungibility Date (as defined in Rule 26J-316) has occurred with respect to 

such iTraxx Asia/Pacific Untranched Contract.

(b) 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.

26J-315. Terms of the Cleared iTraxx Asia/Pacific Untranched Contract.

(a) Any capitalized term used in this Subchapter 26J but not defined in these iTraxx 

Asia/Pacific Untranched Rules shall have the meaning provided in the Relevant iTraxx 

Asia/Pacific Untranched Terms Supplement.

(b) For purposes of the CDS Committee Rules, the CDS Region for each iTraxx Asia/Pacific 

Untranched Contract is the Asian Region.

(c) Each iTraxx Asia/Pacific Untranched Contract will be governed by the Relevant iTraxx 

Asia/Pacific Untranched Terms Supplement, as modified by these iTraxx Asia/Pacific 

Untranched Rules. In the event of any inconsistency between the Relevant iTraxx 

Asia/Pacific Untranched Terms Supplement or the Confirmation (including in electronic 

form) for a iTraxx Asia/Pacific Untranched Contract and these iTraxx Asia/Pacific 

Untranched Rules, these iTraxx Asia/Pacific Untranched Rules will govern.

26J-316. Updating Index Version of Fungible Contracts After a Credit Event or a 

Succession Event; Updating Relevant Untranched Standard Terms Supplement.

(a) Where the iTraxx Asia/Pacific Untranched Publisher of an Eligible iTraxx Asia/Pacific 

Untranched Index publishes one or more subsequent versions or annexes of the relevant 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 9

series following a Credit Event or a Succession Event or circumstances giving rise to a 

Successor and Succession Date with respect to a Reference Entity included in such 

series, and the Board or its designee determines that iTraxx Asia/Pacific Untranched 

Contracts referencing the earlier version or annex of such series are fungible with iTraxx 

Asia/Pacific Untranched Contracts referencing a later version or annex of such series that 

is an Eligible iTraxx Asia/Pacific Untranched Index and so notifies CDS Participants, 

iTraxx Asia/Pacific Untranched Contracts referencing the earlier version or annex of such 

series shall become iTraxx Asia/Pacific Untranched Contracts referencing such later 

version or annex of such series on the date determined by the Board or its designee (the 

“Fungibility Date”). Any iTraxx Asia/Pacific Untranched Contracts referencing the earlier 

version or annex of such series submitted for clearing after the related Fungibility Date 

shall, upon acceptance for clearing, become a iTraxx Asia/Pacific Untranched Contract 

referencing the latest version or annex of such series that the Board or its designee has 

determined is fungible with such earlier version or annex.

(b) Where a new version of the iTraxx Asia/Pacific Untranched Terms Supplement (a “New 

Standard Terms”) is published as of a date that is subsequent to the date of the version 

that is specified as the Relevant iTraxx Asia/Pacific Untranched Terms Supplement for 

any iTraxx Asia/Pacific Untranched Contract(s) (the “Existing Standard Terms”), and 

the Board or its designee determines that iTraxx Asia/Pacific Untranched Contracts 

referencing the Existing Standard Terms are fungible with iTraxx Asia/Pacific Untranched 

Contracts referencing the New Standard Terms, and so notifies CDS Participants, iTraxx 

Asia/Pacific Untranched Contracts referencing the Existing Standard Terms shall become 

iTraxx Asia/Pacific Untranched Contracts referencing the New Standard Terms on the 

date determined by the Board or its designee (the “Standard Terms Update Date” and 

each prior iTraxx Asia/Pacific Untranched Terms Supplement subject to such 

determination, a “Superseded Standard Terms”). Any Trade referencing a Superseded 

Standard Terms submitted for clearing as a iTraxx Asia/Pacific Untranched Contract shall, 

upon acceptance for clearing, become a iTraxx Asia/Pacific Untranched Contract 

referencing the New Standard Terms.

(c) The Board or its designee may determine a different Fungibility Date or Standard Terms 

Update Date applicable to individual iTraxx Asia/Pacific Untranched Contracts or groups 

of iTraxx Asia/Pacific Untranched Contracts or may determine a Fungibility Date or 

Standard Terms Update Date applicable to all iTraxx Asia/Pacific Untranched Contracts 

referencing the earlier version or annex of a series described in clauses (a) or (b) of this 

Rule, as it deems appropriate.

(d) Notwithstanding anything to the contrary herein (including Rule 616(b)), with respect to 

Open Positions in iTraxx Asia/Pacific Untranched Contracts that are NTCE Amended 

Contracts, effective as of the NTCE Effective Date and without need for further action or 

determination by the Board, the terms of each such Contract shall be deemed amended 

such that it references the 2020 Supplement in lieu of the 2014 Supplement or the Legacy 

2020 Supplement in lieu of the Legacy 2014 Supplement, as the case may be, in effect 

prior to such date. The amendments made by this rule 26J-316(d) shall apply as of the 

NTCE Effective Date regardless of whether any relevant transaction record in 

Deriv/SERV is updated to reflect such amendments. 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 10

26J-317. Terms of iTraxx Asia/Pacific Untranched Contracts.

With respect to each iTraxx Asia/Pacific Untranched Contract, the following terms will apply:

(a) The following provisions will apply to each iTraxx Asia/Pacific Untranched Contract or 

component thereof to which the 2003 Definitions apply under the Relevant iTraxx 

Asia/Pacific Untranched Terms Supplement:

(i) Section 3.2(c)(i) of the 2003 Definitions is hereby amended by replacing the "or" 

at the end of subparagraph (B) thereof with an "and" and adding the following as 

a new subparagraph (C):

"(C) the tenth calendar day after the date of the actual decision by the relevant 

Regional CDS Committee (or Dispute Resolver) to Resolve (i.e., determined 

without regard to any Effectiveness Convention or any time of effectiveness 

specified in a Presented Position) that a Credit Event has occurred for which there 

is Publicly Available Information, as described in CDS Committee Rule 2101-

02(a)(iii), with respect to such iTraxx Asia/Pacific Untranched Contracts; or".

(ii) For the purposes of any determination as to whether a Credit Event has occurred 

in respect of a Reference Entity or an Obligation thereof:

(A) at any time up to but excluding June 20, 2009; or

(B) if (1) a Credit Event Resolution Request Date occurs or (2) a Credit Event 

Notice and a Notice of Publicly Available Information are deemed delivered 

pursuant to Rule 2101-02(f) by a Notifying Party, in either case before June 

20, 2009, 

the Credit Event Backstop Date with respect to such determination shall be 

deemed to be the Effective Date.

(iii) For the purposes of any determination as to whether a Succession Event has 

occurred in respect of a Reference Entity:

(A) at any time up to but excluding June 20, 2009; or

(B) if (1) a Succession Event Resolution Request Date occurs or (2) a 

Succession Event Notice is deemed delivered pursuant to Rule 2101-

02(f), in either case before June 20, 2009,

the Succession Event Backstop Date with respect to such Reference Entity shall 

be deemed to be the Effective Date.

(iv) Except for purposes of Rule 26J-317(a)(ii) and Section 1.23 of the 2003 

Definitions, a Credit Event Notice and Notice of Publicly Available Information with 

respect to a iTraxx Asia/Pacific Untranched Contract for a Credit Event other than 

Restructuring will be deemed to have been effectively delivered by the Notifying 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 11

Party on the relevant Event Determination Date determined under the CDS 

Committee Rules only when the Resolution is effective, under the CDS Committee 

Rules, that a Credit Event other than Restructuring has occurred for which there is 

Publicly Available Information, as described in CDS Committee Rule 2101-

02(a)(iii), with respect to such iTraxx Asia/Pacific Untranched Contract. 

Notwithstanding anything to the contrary in the 2003 Definitions or any Relevant 

iTraxx Asia/Pacific Untranched Terms Supplement, any delivery of a Credit Event 

Notice and/or Notice of Publicly Available Information by a CDS Participant (other 

than (i) the deemed delivery as provided in this Rule 26J-317(a)(iv) or (ii) notices 

with respect to a Relevant Restructuring Credit Event as provided in the CDS 

Restructuring Rules) shall not be valid. 

(v) Section 1.8(a)(ii)(A)(I)(3)(y) of the 2003 Definitions is hereby modified by replacing 

the term “Auction Final Price Determination Date” with the phrase “date that is one 

Relevant City Business Day prior to the Auction Settlement Date”.

(vi) Section 1.30 of the 2003 Definitions is hereby modified by replacing the term 

“Auction Final Price Determination Date” in clause (ii) of the last sentence thereof 

with the phrase “date that is one Relevant City Business Day prior to the Auction 

Settlement Date”.

(vii) With respect to iTraxx Asia/Pacific Untranched Contracts for which it is Resolved 

by the Regional CDS Committee (or applicable Dispute Resolver) or Credit 

Derivatives Determinations Committee that a Credit Event has occurred for which 

there is Publicly Available Information, as described in CDS Committee Rule 2101-

02(a)(iii) or the DC Rules, as applicable, Buyer may not deliver a Notice of Physical 

Settlement until after it is determined that the method of settlement for a particular 

Credit Event is the Fallback Settlement Method due to the occurrence of one of 

the events in Section 12.1 of the 2003 Definitions and as further provided in the 

CDS Physical Settlement Rules. For the avoidance of doubt, the effectiveness of 

any Notice of Physical Settlement and obligations relating thereto are subject to 

the suspension and finality provisions of Sections 6.5 and 9.1(c)(iii) of the 2003 

Definitions.

(b) The following provisions will apply to each iTraxx Asia/Pacific Untranched Contract or 

component thereof to which the 2014 Definitions apply under the Relevant iTraxx 

Asia/Pacific Untranched Terms Supplement:

(i) Section 8.10(a) of the 2014 Definitions is hereby amended by replacing the "." at 

the end of subparagraph (B) thereof with "; and" and adding the following as a new 

subparagraph (C):

"(C) the tenth calendar day after the date of the actual decision by the relevant 

Regional CDS Committee (or Dispute Resolver) to Resolve (i.e., determined 

without regard to any Effectiveness Convention or any time of effectiveness 

specified in a Presented Position) that a Credit Event has occurred for which there 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 12

is Publicly Available Information, as described in CDS Committee Rule 2101-

02(a)(iii), with respect to such iTraxx Asia/Pacific Untranched Contracts.".

(ii) Except for purposes of Section 1.39 of the 2014 Definitions, a Credit Event Notice 

and Notice of Publicly Available Information with respect to a iTraxx Asia/Pacific 

Untranched Contract for a Credit Event other than M(M)R Restructuring will be 

deemed to have been effectively delivered by the Notifying Party on the relevant 

Event Determination Date determined under the CDS Committee Rules only when 

the Resolution is effective, under the CDS Committee Rules, that a Credit Event 

other than M(M)R Restructuring has occurred for which there is Publicly Available 

Information, as described in CDS Committee Rule 2101-02(a)(iii), with respect to 

such iTraxx Asia/Pacific Untranched Contract. Notwithstanding anything to the 

contrary in the 2014 Definitions or the Relevant iTraxx Asia/Pacific Untranched 

Terms Supplement, any delivery of a Credit Event Notice and/or Notice of Publicly 

Available Information by a CDS Participant (other than (i) the deemed delivery as 

provided in this Rule 26J-317(b)(ii) or (ii) notices with respect to a Relevant 

Restructuring Credit Event as provided in the CDS Restructuring Rules) shall not 

be valid. For the avoidance of doubt, Section C.2 of the Legacy 2014 Supplement 

and Section 5.7 of the New 2014 Supplement shall not apply.

(iii) For the purposes only of Section 1.16(a)(ii)(A)(II) of the 2014 Definitions, Section 

1.17 of the 2014 Definitions is hereby modified by replacing the term “Auction Final 

Price Determination Date” with the phrase “date that is one Relevant City Business 

Day prior to the Auction Settlement Date”.

(iv) With respect to iTraxx Asia/Pacific Untranched Contracts for which it is Resolved 

by the Regional CDS Committee (or applicable Dispute Resolver) or Credit 

Derivatives Determinations Committee that a Credit Event has occurred for which 

there is Publicly Available Information, as described in CDS Committee Rule 2101-

02(a)(iii) or the DC Rules, as applicable, Buyer may not deliver a Notice of Physical 

Settlement until after it is determined that the method of settlement for a particular 

Credit Event is the Fallback Settlement Method due to the occurrence of one of 

the events in Section 6.1 of the 2014 Definitions, and as further provided in the 

CDS Physical Settlement Rules. For the avoidance of doubt, the effectiveness of 

any Notice of Physical Settlement and obligations relating thereto are subject to 

the suspension and finality provisions of Sections 10.1 and 10.2 of the 2014 

Definitions. 

(c) The Settlement Method for particular iTraxx Asia/Pacific Untranched Contracts will be 

Auction Settlement and the Fallback Settlement Method will be Physical Settlement in 

accordance with the CDS Physical Settlement Rules. 

(d) Notwithstanding anything to the contrary in the Relevant iTraxx Asia/Pacific Untranched 

Terms Supplement, the Reference Obligation for purposes of a New Trade (as defined 

therein) will be the Reference Obligation for the Restructured Entity in question as 

specified by ICE Clear Credit following consultation with the CDS Risk Committee (which 
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 13

for the avoidance of doubt may be determined by reference to any Standard Reference 

Obligation).

(e) The following terms will apply to each iTraxx Asia/Pacific Untranched Contract:

(i) The “Agreement” is the Participant Agreement between the relevant CDS 

Participant and ICE Clear Credit.

(ii) The “Effective Date” is the date specified in the List of Eligible iTraxx Asia/Pacific 

Indexes for the relevant Index.

(iii) The “Calculation Agent” is ICE Clear Credit, except as provided in the CDS 

Committee Rules.

(iv) “De Minimis Cash Settlement” under the Relevant iTraxx Asia/Pacific Untranched 

Terms Supplement is not applicable.

(v) The “Fixed Rate” is the rate specified in the List of Eligible iTraxx Asia/Pacific 

Indexes for the relevant Index and Scheduled Termination Date.

(vi) The “Initial Payment Date” will be the date that is the first Business Day 

immediately following the Trade Date; provided that with respect to a iTraxx 

Asia/Pacific Untranched Contract that is accepted for clearing pursuant to Rule 

309 after the Trade Date thereof, the “Initial Payment Date” will be the date that is 

the first Business Day following the date as of which such iTraxx Asia/Pacific 

Untranched Contract is accepted for clearing pursuant to Rule 309. 

(f) For each iTraxx Asia/Pacific Untranched Contract, the following terms will be determined 

according to the particular iTraxx Asia/Pacific Untranched Contract submitted for clearing:

(i) Which of the Eligible iTraxx Asia/Pacific Untranched Indexes is the “Index”.

(ii) The “Annex Date”.

(iii) The “Trade Date”.

(iv) Which of the eligible Scheduled Termination Dates specified for the Index in the 

List of Eligible iTraxx Asia/Pacific Untranched Indexes is the “Scheduled 

Termination Date”.

(v) The “Original Notional Amount”.

(vi) The “Floating Rate Payer”.

(vii) The “Fixed Rate Payer”. 

(viii) The “Initial Payment Payer”.

(ix) The “Initial Payment Amount”.
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 14

§39.5(b)(3)(iv) Participant Eligibility 

“Participant eligibility standards, if different from the derivatives clearing organization’s general participant 

eligibility standards.”

The participant eligibility standards related to the Indices are not different from ICE Clear Credit’s general 

participant eligibility standards.

§39.5(b)(3)(v) Price Discovery

“Pricing sources, models, and procedures, demonstrating an ability to obtain sufficient price data to measure 

credit exposures in a timely and accurate manner, including any agreements with clearing members to provide 

price data and copies of executed agreements with third-party price vendors, and information about any price 

reference index used, such as the name of the index, the source that calculates it, the methodology used to 

calculate the price reference index and how often it is calculated, and when and where it is published 

publicly.”

See the ICE Clear Credit End-of-Day Price Discovery Policies and Procedures attached hereto as Confidential 

Exhibit B.

§39.5(b)(3)(vi) Risk Management

“Risk management procedures, including measurement and monitoring of credit exposures, initial and 

variation margin methodology, methodologies for stress testing and back testing, settlement procedures, and 

default management procedures.”

See the ICE Clear Credit Risk Management Framework attached hereto as Confidential Exhibit C. See the ICE 

Clear Credit Risk Management Model Description attached hereto as Confidential Exhibit D.

See the ICE Clear Credit Risk Management Backtesting Framework attached hereto as Confidential Exhibit E.

See the ICE Clear Credit Risk Management Stress Testing Framework attached hereto as Confidential Exhibit F.

See the ICE Clear Credit Clearing Participant Default Management Procedures attached hereto as Confidential 

Exhibit G.

§39.5(b)(3)(vii) Rules, Policies and Procedures

ICE Clear Credit maintains a comprehensive set of rules that are publicly available and may be viewed at 

https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf and are listed herein as Exhibit A.

See the ICE Clear Credit Risk Management Framework attached hereto as Confidential Exhibit C. See the ICE 

Clear Credit Risk Management Model Description attached hereto as Confidential Exhibit D.
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 15

§39.5(b)(3)(viii) Communication to Members Regarding this Submission

“A description of the manner in which the derivatives clearing organization has provided notice of the 

submission to its members and a summary of any views on the submission expressed by the members (a copy of 

the notice to members shall be included with the submission.”

ICE Clear Credit posted a copy of this submission (absent any confidential exhibits) on its public website on 

February 4, 2021. Written comments relating to the submission have not been solicited or received. ICE Clear 

Credit will notify the CFTC of any written comments received by ICE Clear Credit.

**************

Pursuant to applicable law, ICE Clear Credit respectfully requests confidential treatment of the confidential 

exhibits attached as part of this submission and any other information or documents which may at any time be 

submitted in connection with this submission and which may be marked “Confidential” or for which confidential 

treatment may be requested. 

Confidential treatment of the confidential exhibits attached as part of this submission and any subsequent related 

documents is justified under the Freedom of Information Act, 5 U.S.C. § 552, et seq. and the Rules Regarding 

Availability of Information, 12 C.F.R. § 261.15 (2006). The confidential exhibits attached as part of this 

submission contain confidential business and commercial information (together with confidential intellectual 

property) related to ICE Clear Credit’s clearing facility for credit default swaps and ICE Clear Credit’s CPs, the 

disclosure of which could have a material adverse effect on, and cause injury to, the operations and competitive 

position of ICE Clear Credit and its CPs. We believe that the confidential exhibits are entitled to protection 

pursuant to exemptions (b)(4) and (b)(8) of the Freedom of Information Act. In particular, the confidential 

exhibits provide information that is useful to potential competitors and would be competitively harmful to ICE 

Clear Credit and its CPs if disclosed to the public.

In the event that a determination is made to release any confidential portion of this submission, we respectfully 

request an opportunity to discuss or to revise as appropriate prior to such release.

**************

If you should have any questions or comments, please do not hesitate to contact me at 312-836-6742.

Respectfully submitted,

Eric Nield

General Counsel
Mr. Christopher Kirkpatrick February 4, 2021

Commodity Futures Trading Commission

Page 16

Enc: Exhibit A – ICE Clear Credit Rules available at: 

https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf

Confidential Exhibit B – ICE Clear Credit End-of-Day Price Discovery Policies and Procedures

Confidential Exhibit C – ICE Clear Credit Risk Management Framework

Confidential Exhibit D – ICE Clear Credit Risk Management Model Description 

Confidential Exhibit E – ICE Clear Credit Risk Management Backtesting Framework

Confidential Exhibit F – ICE Clear Credit Risk Management Stress Testing Framework

Confidential Exhibit G – ICE Clear Credit Clearing Participant Default Management Procedures