Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices 31021 

6As explained in ICC’s Risk Management Model 

Description, every index, sub-index, or underlying 

single name is deemed a Risk Factor. See SelfRegulatory Organizations; ICE Clear Credit LLC; 

Order Approving Proposed Rule Change Relating to 

the ICC Risk Management Model Description, 

Exchange Act Release No. 91918 (May 18, 2021), 86 

FR 27927 (May 24, 2021). 

7 15 U.S.C. 78s(b)(2)(C). 

8 15 U.S.C. 78q–1(b)(3)(F). 

9 17 CFR 240.17Ad–22(e)(6)(vi)(B). 

10 15 U.S.C. 78q–1(b)(3)(F). 

11 15 U.S.C. 78q–1(b)(3)(F). 

12 17 CFR 240.17Ad–22(e)(6)(vi)(B). 

13 17 CFR 240.17Ad–22(e)(6)(vi)(B). 

14 15 U.S.C. 78q–1(b)(3)(F). 

15 17 CFR 240.17Ad–22(e)(6)(vi)(B). 

16 15 U.S.C. 78s(b)(2). 

17 In approving the proposed rule change, the 

Commission considered the proposal’s impact on 

efficiency, competition, and capital formation. 15 

U.S.C. 78c(f). 

18 17 CFR 200.30–3(a)(12). 

1See Regulation Crowdfunding, Exchange Act 

Release No. 76324 (Oct. 30, 2015), 80 FR 71387 

(Nov. 16, 2015) (Final Rule) (‘‘Regulation 

Crowdfunding’’). 

(‘‘EOD’’) recovery rate for single name 

risk factors (meaning each single name 

CDS contract).6 The proposed rule 

change would add text to explain how 

ICC derives the EOD recovery rate from 

price quotes submitted by Clearing 

Members. For each single name risk 

factor, the EOD recovery rate would 

reflect the smaller of the standard 

market convention recovery rate and the 

minimum submitted EOD bid price 

submitted by Clearing Members. The 

proposed changes would explain that 

the EOD recovery rate would be the 

minimum submitted EOD bid price, and 

therefore would deviate from the 

standard market convention, when the 

single name risk factor itself is 

distressed. The proposed language 

would further specify the role of the 

established EOD recovery rate in using 

the ISDA Standard Model for price-tospread mapping. 

III. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act directs 

the Commission to approve a proposed 

rule change of a self-regulatory 

organization if it finds that such 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to such organization.7 For the 

reasons discussed below, the 

Commission finds that the proposed 

rule change is consistent with Section 

17A(b)(3)(F) of the Act 8 and Rule 

17Ad–22(e)(6)(vi)(B) thereunder.9

A. Consistency With Section 

17A(b)(3)(F) of the Act 

Section 17A(b)(3)(F) of the Act 

requires, among other things, that the 

rules of ICC be designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions.10

Based on its review of the record, and 

for the reasons discussed below, the 

Commission believes the proposed 

changes to RPSR Policy are consistent 

with the promotion of the prompt and 

accurate clearance and settlement of 

transactions at ICC. 

The Commission believes that the 

change should improve the RPSR Policy 

by documenting how ICC derives the 

EOD recovery rate from price quotes 

submitted by Clearing Members for 

Univariate Level Parameters. The 

Commission believes that documenting 

ICC’s approach should help to ensure 

that ICC derives the EOD recovery rate 

and related Univariate Level Parameters 

in a clear and consistent manner. 

Because ICC uses the RPSR Policy to set 

and review core parameters for ICC’s 

risk management model, the 

Commission believes that this 

improvement to the RPSR should help 

to ensure the continued efficacy of the 

risk management model. An effective 

risk management model should help to 

ensure that ICC collects sufficient 

margin, commensurate with the risks 

presented by the transactions its clears. 

The Commission thus believes the 

proposed rule change should ultimately 

help to ensure that ICC collects 

sufficient margin, and in doing so 

should help improve ICC’s ability to 

avoid losses that could result during 

periods of market stress. Because such 

losses could disrupt ICC’s ability to 

operate and thus promptly and 

accurately clear and settle security 

based swap transactions, the 

Commission finds the proposed rule 

change would promote the prompt and 

accurate clearance and settlement of 

securities transactions, consistent with 

Section 17A(b)(3)(F) of the Act.11

B. Consistency With Rule 17Ad– 

22(e)(6)(vi)(B) 

Rule 17Ad–22(e)(6)(vi)(B) requires 

that ICC establish, implement, maintain 

and enforce written policies and 

procedures reasonably designed to, as 

applicable, cover its credit exposures to 

its participants by establishing a riskbased margin system that, at a minimum 

is monitored by management on an 

ongoing basis and is regularly reviewed, 

tested, and verified by conducting a 

sensitivity analysis of its margin model 

and a review of its parameters and 

assumptions for backtesting on at least 

a monthly basis, and considering 

modifications to ensure the backtesting 

practices are appropriate for 

determining the adequacy of ICC’s 

margin resources.12 As discussed above, 

the proposed rule change would 

document how ICC derives the EOD 

recovery rate from price quotes 

submitted by Clearing Members for 

Univariate Level Parameters. In doing 

so, the Commission believes the 

proposed rule change would help to 

ensure that ICC analyzes this particular 

aspect of the Univariate Level 

Parameters, which the RPSR Policy 

requires ICC’s Risk team to estimate and 

review, and perform sensitivity analysis 

on, at least monthly. Therefore, the 

Commission finds that the proposed 

rule change is consistent with Rule 

17Ad–22(e)(6)(vi)(B).13

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the proposed 

rule change is consistent with the 

requirements of the Act, and in 

particular, with the requirements of 

Section 17A(b)(3)(F) of the Act 14 and 

Rule 17Ad–22(e)(6)(vi)(B) thereunder.15

It is therefore ordered pursuant to 

Section 19(b)(2) of the Act 16 that the 

proposed rule change (SR–ICC–2022– 

002), be, and hereby is, approved.17

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10805 Filed 5–19–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–774, OMB Control No. 

3235–0727] 

Submission for OMB Review; 

Comment Request; Extension: Rules 

400–404 of Regulation Crowdfunding 

(Intermediaries) 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rules 300–304 of Regulation 

Crowdfunding.1

The collections of information 

required under Rules 400 through 404 is 

mandatory for all funding portals. Form 


khammond on DSKJM1Z7X2PROD with NOTICES
31022 Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Notices 

2Exchange Act Section 3(h)(1)(C) permits us to 

impose, as part of our authority to exempt funding 

portals from broker registration, ‘‘such other 

requirements under [the Exchange Act] as the 

Commission determines appropriate.’’ 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See, generally, Exchange Rule 531(d). 

Funding Portal helps ensure that the 

Commission can make information 

about funding portals transparent and 

easily accessible to the investing public, 

including issuers and obligated persons 

who engage funding portals; investors 

who may purchase securities through 

offerings on funding portals; and other 

regulators. Further, the information 

provided on Form Funding Portal 

expands the amount of publicly 

available information about funding 

portals, including disciplinary history. 

Consequently, the rules and forms 

allows issuers and the investing public, 

as well as others, to become more fully 

informed about funding portals in a 

more efficient manner. 

Rule 400 requires each person 

applying for registration with the 

Commission as a funding portal to file 

electronically with the Commission 

Form Funding Portal. Rule 400(a) 

requires a funding portal to become a 

member of a national securities 

association registered under Section 

15A of the Exchange Act. Rule 400(b) 

requires a funding portal to file an 

amendment to Form Funding Portal if 

any information previously submitted 

on Form Funding Portal becomes 

inaccurate for any reason. Rule 400(c) 

provides that a funding portal can 

succeed to the business of a predecessor 

funding portal upon the successor filing 

a registration on Form Funding Portal 

and the predecessor filing a withdrawal 

on Form Funding Portal. 

Rule 400(d) requires a funding portal 

to promptly file a withdrawal of 

registration on Form Funding Portal 

upon ceasing to operate as a funding 

portal. Rule 400(e) states that duplicate 

originals of the applications and reports 

provided for in this section must be 

filed with surveillance personnel 

designated by any registered national 

securities association of which the 

funding portal is a member. Rule 400(f) 

requires a nonresident funding portal to: 

(1) Obtain a written consent and power 

of attorney appointing an agent for 

service of process in the United States; 

(2) furnish the Commission with the 

name and address of its agent for 

services of process on Schedule C of 

Form Funding Portal; (3) certify that it 

can, as a matter of law, and will provide 

the Commission and any registered 

national securities association of which 

it becomes a member with prompt 

access to its books and records and can, 

as a matter of law, and will submit to 

onsite inspection and examination by 

the Commission and any registered 

national securities association of which 

it becomes a member; and (4) provide 

the Commission with an opinion of 

counsel and certify on Schedule C on 

Form Funding Portal that the firm can, 

as a matter of law, provide the 

Commission and registered national 

securities association of which it 

becomes a member with prompt access 

to its books and records and can, as a 

matter of law, submit to onsite 

inspection and examination by the 

Commission and any registered national 

securities association of which it 

becomes a member.2

Rule 403(a) requires a funding portal 

to implement written policies and 

procedures reasonably designed to 

achieve compliance with the federal 

securities laws and the rules and 

regulations thereunder relating to its 

business as a funding portal. Rule 403(b) 

provides that a funding portal must 

comply with privacy rules. Rule 404 

requires all registered funding portals to 

maintain certain books and records 

relating to their funding portal 

activities, for not less than five years, 

the first two in an easily accessible 

place. Rule 404(e) requires funding 

portals to furnish promptly to the 

Commission, its representatives, and the 

registered national securities association 

of which the funding portal is a member 

true, correct, complete and current 

copies of such records of the funding 

portal that are requested by the 

representatives of the Commission and 

the registered national securities 

association. 

The Commission staff estimates that 

annualized industry burden would be 

36,775 hours to comply with Rules 400– 

404. The Commission staff estimates 

that the costs associated with complying 

with Rules 400–404 are estimated to be 

approximately a total amount of 

$671,793. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent by 

June 21, 2022 to (i) 

MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov and (ii) David Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, c/ 

o John Pezzullo, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: May 16, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10817 Filed 5–19–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94915; File No. SR– 

EMERALD–2022–16] 

Self-Regulatory Organizations; MIAX 

Emerald, LLC; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the MIAX 

Emerald Fee Schedule To Adopt Fees 

for the High Precision Network Time 

Signal Service 

May 16, 2022. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on May 5, 

2022, MIAX Emerald, LLC (‘‘MIAX 

Emerald’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) a proposed rule change 

as described in Items I, II, and III, below, 

which Items have been prepared by the 

Exchange. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend the MIAX Emerald Fee Schedule 

(the ‘‘Fee Schedule’’) to adopt fees for a 

new service known as the ‘‘High 

Precision Network Time Signal 

Service.’’ 3

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/emerald, at MIAX’s principal 

office, and at the Commission’s Public 

Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 


khammond on DSKJM1Z7X2PROD with NOTICES