41774 Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 

No. 59039 (December 2, 2008), 73 FR 74770, 74782– 

83 (December 9, 2008) (SR–NYSEArca–2006–21)). 

25 15 U.S.C. 78s(b)(3)(A). 

26 17 CFR 240.19b–4(f). 

27 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 91744 

(May 3, 2021), 86 FR 24685 (May 7, 2021) 

(NASDAQ–2021–025) (‘‘Proposal’’). 

4See Proposal supra n. 3 at 24685. 

5See Securities Exchange Act Release No. 93125 

(September 24, 2021), 86 FR 54255 (September 30, 

2021) (SR–NASDAQ–2021–073). 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

The Exchange neither solicited nor 

received comments on the proposed 

rule change. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 19(b)(3)(A) 

of the Act 25 and paragraph (f) of Rule 

19b–4 26 thereunder. At any time within 

60 days of the filing of the proposed rule 

change, the Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission will institute proceedings 

to determine whether the proposed rule 

change should be approved or 

disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SRCboeBZX–2022–036 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR-CboeBZX–2022–036. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR-CboeBZX–2022–036 and 

should be submitted on or before 

August 3, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14875 Filed 7–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95216; File No. SR– 

NASDAQ–2022–038] 

Self-Regulatory Organizations; The 

Nasdaq Stock Market LLC; Notice of 

Filing and Immediate Effectiveness of 

Proposed Rule Change To Extend the 

Implementation Date of Its Post-Trade 

Risk Management Product to Q4 2022 

July 7, 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 June 30, 

2022, The Nasdaq Stock Market LLC 

(‘‘Nasdaq’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘SEC’’ or ‘‘Commission’’) the proposed 

rule change as described in Items I and 

II 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 proposes to extend the 

implementation date of its Post-Trade 

Risk Management product to Q4 2022. 

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/nasdaq/rules, at the principal 

office of the Exchange, 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 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

Nasdaq is filing this proposal to 

extend the implementation date of its 

Post-Trade Risk Management tool to Q4 

2022. 

Nasdaq proposed to enhance its 

connectivity, surveillance and risk 

management services by launching three 

re-platformed products: (i) WorkX, (ii) 

Real-Time Stats and (iii) Post-Trade Risk 

Management. These changes were filed 

by Nasdaq on April 20, 2021 and 

published in the Federal Register on 

May 7, 2021.3

Nasdaq initially proposed that WorkX 

and Real-Time Stats would launch on 

April 12, 2021 and Post-Trade Risk 

Management would launch no later than 

Q3 2021.4 Due to re-prioritization in the 

Nasdaq product pipeline, on September 

14, 2021, Nasdaq proposed to delay the 

implementation date of Post-Trade Risk 

Management until Q1 2022.5 Nasdaq 

subsequently proposed to delay the 

implementation date from Q1 2022 to 


jspears on DSK121TN23PROD with NOTICES1
Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 41775 

6See Securities Exchange Act Release No. 94704 

(April 12, 2022), 87 FR 22958 (April 18, 2022) (SR– 

NASDAQ–2022–029). 

7As a result of the delay, the Exchange is 

designating Equity 7, Section 116–A, the Post-Trade 

Risk Management Rule, to be operative in Q4 2022. 

8 15 U.S.C. 78f(b). 

9 15 U.S.C. 78f(b)(5). 

10 15 U.S.C. 78s(b)(3)(A). 

11 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 

4(f)(6)(iii) requires a self-regulatory organization to 

give the Commission written notice of its intent to 

file the proposed rule change, along with a brief 

description and text of the proposed rule change, 

at least five business days prior to the date of filing 

of the proposed rule change, or such shorter time 

as designated by the Commission. The Exchange 

has satisfied this requirement. 

12 17 CFR 240.19b–4(f)(6). 

13 17 CFR 240.19b–4(f)(6)(iii). 

14For purposes only of waiving the 30-day 

operative delay, the Commission has also 

considered the proposed rule’s impact on 

efficiency, competition, and capital formation. See 

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

Q2 2022.6 Due to continued reprioritization, Nasdaq is further 

delaying the implementation of PostTrade Risk Management until Q4 2022.7

The Exchange will announce the new 

implementation date in an Equity 

Trader Alert at least ten days in advance 

of implementing the Post-Trade Risk 

Management product. 

2. Statutory Basis 

The Exchange believes that its 

proposal is consistent with Section 6(b) 

of the Act,8 in general, and furthers the 

objectives of Section 6(b)(5) of the Act,9

in particular, in that it is designed to 

promote just and equitable principles of 

trade, to remove impediments to and 

perfect the mechanism of a free and 

open market and a national market 

system, and, in general to protect 

investors and the public interest. 

The purpose of this proposal is to 

modify the timing of the planned 

implementation for the Post-Trade Risk 

Management product and to inform the 

SEC and market participants of that 

change. The introduction of the PostTrade Risk Management product was 

proposed in a rule filing that was 

submitted to the SEC, and the Exchange 

is not proposing with this filing, any 

changes other than to modify the 

implementation date for the Post-Trade 

Risk Management product. Nasdaq is 

delaying the implementation date in 

order to complete testing in line with 

Nasdaq’s re-prioritized product 

pipeline. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

The Exchange does not believe that 

the proposed rule change will impose 

any burden on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. As explained 

above, the purpose of this proposal is to 

modify the timing of the planned 

implementation for the Post-Trade Risk 

Management product and to inform the 

SEC and market participants of that 

change. The existing Nasdaq Risk 

Management product will continue to 

be available, and the implementation 

delay will impact all market 

participants equally. The Exchange does 

not expect the date change to place any 

burden on competition and clearing 

brokers will continue to have use of 

Nasdaq Risk Management service to 

monitor correspondent activity against 

limit settings and manage credit risk 

exposure. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were either 

solicited or received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Because the foregoing proposed rule 

change does not: (i) significantly affect 

the protection of investors or the public 

interest; (ii) impose any significant 

burden on competition; and (iii) become 

operative for 30 days from the date on 

which it was filed, or such shorter time 

as the Commission may designate, it has 

become effective pursuant to Section 

19(b)(3)(A) of the Act 10 and Rule 19b– 

4(f)(6) thereunder.11

A proposed rule change filed under 

Rule 19b–4(f)(6) under the Act 12

normally does not become operative 

prior to 30 days after the date of the 

filing. However, Rule 19b–4(f)(6)(iii) 13

permits the Commission to designate a 

shorter time if such action is consistent 

with the protection of investors and the 

public interest. The Exchange has asked 

the Commission to waive the 30-day 

operative delay. Waiver of the operative 

delay would allow the Exchange to 

immediately delay the implementation 

date of the Post-Trade Risk Management 

product to Q4 2022, so that the 

Exchange may complete testing in line 

with its re-prioritized product pipeline. 

The Commission believes that waiver of 

the 30-day operative delay is consistent 

with the protection of investors and the 

public interest. Accordingly, the 

Commission hereby waives the 30-day 

operative delay and designates the 

proposed rule change operative upon 

filing.14

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NASDAQ–2022–038 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–NASDAQ–2022–038. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 


jspears on DSK121TN23PROD with NOTICES1
41776 Federal Register / Vol. 87, No. 133 / Wednesday, July 13, 2022 / Notices 

15 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Self-Regulatory Organizations; ICE Clear Credit 

LLC; Notice of Filing of Proposed Rule Change 

Relating to the ICC Model Validation Framework; 

Exchange Act Release No. 95002 (May 27, 2022); 87 

FR 33851 (June 3, 2022) (File No. SR–ICC–2022– 

006) (‘‘Notice’’). 

4Capitalized terms not otherwise defined herein 

have the meanings assigned to them in the 

Framework or ICC’s Clearing Rules, as applicable. 5Notice, 87 FR at 33851. 

6Notice, 87 FR at 33852. 

7Notice, 87 FR at 33852. 

8The change would clarify, without changing 

ICC’s processes, that the model development 

process is applicable to new Models as well as 

Model Changes. 

submissions should refer to File 

Number SR–NASDAQ–2022–038 and 

should be submitted on or before 

August 3, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.15

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–14882 Filed 7–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34- 95214; File No. SR–ICC– 

2022–006] 

Self-Regulatory Organizations; ICE 

Clear Credit LLC; Order Approving 

Proposed Rule Change Relating to the 

ICC Model Validation Framework 

July 7, 2022. 

I. Introduction 

On May 17, 2022, ICE Clear Credit 

LLC (‘‘ICC’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (the ‘‘Act’’),1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

amend its Model Validation Framework 

(the ‘‘Framework’’). The proposed rule 

change was published for comment in 

the Federal Register on June 3, 2022.3

The Commission did not receive 

comments regarding the proposed rule 

change. For the reasons discussed 

below, the Commission is approving the 

proposed rule change. 

II. Description of the Proposed Rule 

Change 4

A. Background 

The Framework describes the process 

for ICC assuring the effectiveness of its 

models, including changes to existing 

models and the adoption of new 

models. ICC’s processes rely on four 

controls: initial validation; ongoing 

monitoring and validation; 

investigation; and independent periodic 

review. The proposed rule change 

would: (a) expand the scope of the 

Framework to include all of ICC’s 

models; (b) reorganize certain sections 

of the Framework; (c) update and 

strengthen ICC’s requirements regarding 

initial validation, ongoing monitoring 

and validation, and independent 

periodic review; (d) assign additional 

responsibilities under the Framework to 

ICC’s Risk Oversight Officer (‘‘ROO’’); 

and (e) clarify the independence 

requirements for validators. 

B. Scope 

The current Framework applies to 

ICC’s models that make up its risk 

management system, meaning its 

models relating to margin, guaranty 

fund, and liquidity. The proposed rule 

change would expand the scope of the 

Framework so that it applies to all of 

ICC’s models and not just those related 

to its risk management system. The 

proposed rule change therefore would 

define a ‘‘Model’’ as a quantitative 

method, system, or approach that 

applies statistical, economic, financial, 

or mathematical theories, techniques, 

and assumptions to process input data 

into quantitative estimates. This change 

would bring within the scope of the 

Framework ICC’s Model related to 

counterparty credit.5 Thus, after the 

proposed rule change, the Framework 

would apply to all of ICC’s Models, not 

only those related to its risk 

management system. ICC is making this 

change because it determined it was 

beneficial to apply the requirements of 

the Framework to all of its Models, and 

not just those related to its risk 

management system. 

As part of this change, the proposed 

rule change would make two changes to 

the organization of the current 

Framework. First, the current 

Framework begins with an introductory 

section that describes ICC’s risk 

management system and the Models 

that comprise the risk management 

system. Given that, as proposed, the 

Framework would apply to all of ICC’s 

Models and not just those Models that 

are part of its risk management system, 

the proposed rule change would delete 

the current introductory section and 

replace it with a new overview section. 

Instead of describing ICC’s risk 

management system and the 

components of the risk management 

system, the new overview section would 

provide a general description of ICC’s 

Models. The new overview section 

further would define the purpose of the 

Framework as providing assurances that 

ICC’s Models are performing as 

expected, in line with their design 

objectives and business use. 

Second, throughout the Framework, 

the proposed rule change would replace 

references to ICC’s risk management 

system with references to ICC’s Models. 

For example, the current Framework 

classifies changes to ICC’s Models based 

on how the changes affect the risk 

management system’s assessment of 

risk. The proposed rule change instead 

would classify changes based on how 

they affect a Model’s assessment of risk. 

C. Other Organizational Changes 

The proposed rule change would 

make three organizational changes that 

would, in ICC’s view, more 

appropriately position details regarding 

Model controls, Model Change 

materiality, and Model development. 

First, with regard to controls, the 

proposed rule change would move 

information found in current Subsection 

1.3 to a new Subsection 3.1. Current 

Subsection 1.3 provides an overview of 

the four controls used by ICC to assure 

the effectiveness of its Models, 

including changes to existing Models 

and new Models: initial validation; 

ongoing monitoring and validation; 

investigation; and independent periodic 

review. The proposed rule change 

would move the description of these 

controls, including a visual diagram of 

how the controls work together, to a 

new Subsection 3.1. Because Section 3 

of the Framework describes each of the 

four controls in detail, ICC maintains 

that this overview of the controls is 

more appropriate in new Subsection 3.1, 

rather than at the beginning of the 

Framework.6

Second, with regard to materiality, the 

proposed rule change would renumber 

current Subsection 2.2 as new 

Subsection 1.3. New Subsection 1.3 

would be substantively the same as 

current Subsection 2.2 and would 

contain a discussion of how ICC 

classifies proposed changes to its 

Models. ICC classifies Model Changes as 

either Materiality A or Materiality B, 

depending on how substantially the 

proposed change affects a Model’s 

assessment of risk.7

Finally, with regard to development, 

the proposed rule change would move 

to new Subsection 1.4 language 

currently found in Subsection 1.2 

regarding the development of Models 

and Model Change, while maintaining 

the substance of this language.8 Thus, 

under the proposed rule change, as in 

the current Framework, new Model and 


jspears on DSK121TN23PROD with NOTICES1