Notice2022-11879
Self-Regulatory Organizations; ICE Clear Europe Limited; Order Approving Proposed Rule Change Relating to Amendments to the ICE Clear Europe Operational Risk Management Policy and Risk Identification Framework
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 3, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 107 (Friday, June 3, 2022)</title>
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[Federal Register Volume 87, Number 107 (Friday, June 3, 2022)]
[Notices]
[Pages 33858-33862]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11879]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-95004; File No. SR-ICEEU-2022-008]
Self-Regulatory Organizations; ICE Clear Europe Limited; Order
Approving Proposed Rule Change Relating to Amendments to the ICE Clear
Europe Operational Risk Management Policy and Risk Identification
Framework
May 27, 2022.
I. Introduction
On March 31, 2022, ICE Clear Europe Limited (``ICE Clear Europe'')
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 Operational Risk Management Policy (the ``ORMP'') and add
to ICE Clear Europe's rule framework the Risk Identification Framework
(the ``RIF''). The proposed rule change was published for comment in
the Federal Register on April 14, 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.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Self-Regulatory Organizations; ICE Clear Europe Limited;
Notice of Filing of Proposed Rule Change Relating to Amendments to
the ICE Clear Europe Operational Risk Management Policy and Risk
Identification Framework, Exchange Act Release No. 34-94649 (Apr. 8,
2022); 87 FR 22273 (Apr. 14, 2022) (SR-ICEEU-2022-008) (``Notice'').
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II. Description of the Proposed Rule Change
i. ORMP
The current ORMP describes ICE Clear Europe's process for
identifying, assessing, managing, monitoring, and reporting operational
risks and requires that ICE Clear Europe assess its operational risks
at least annually.\4\ The proposed rule change would maintain the
overall process as found in the current ORMP but revise the description
of the specific steps that makeup the overall process--generally by
incorporating into the ORMP additional detail regarding current
practices relating to those steps--and modify certain aspects of some
of those steps.
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\4\ This description is substantially excerpted from the Notice,
87 FR 22273. Capitalized terms not otherwise defined herein have the
meanings assigned to them in the ORMP, the RIF, or ICE Clear
Europe's Rules, as applicable.
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First, the proposed rule change would explicitly incorporate into
the ORMP ICE Clear Europe's Enterprise Risk Register, which ICE Clear
Europe also refers to as the Risk Register Dashboard (referred to
herein as the ``Risk Dashboard''). Currently, once ICE Clear Europe
identifies operational risks pursuant to the existing ORMP, it
documents those risks in the Risk Dashboard. The Risk Dashboard
therefore serves as an inventory of the specific operational risks that
ICE Clear Europe has identified as part of its existing risk
identification process under the ORMP. The Risk Dashboard also includes
information about, among other things, the ICE Clear Europe department
that owns the risk (the ``Risk Owner''), the level of inherent risk,
and the overall rating for the control that mitigates each risk.
However, while the Risk Dashboard currently is used as part of ICE
Clear Europe's risk identification process under the ORMP, it is not
actually referenced in the ORMP. The proposed rule change would
formally incorporate the Risk Dashboard into the ORMP and include it as
an appendix to the ORMP. The proposed rule change also would add to the
ORMP a description of the process for reviewing and updating the Risk
Register as part of ICE Clear Europe's existing annual assessment of
its operational risks, thereby formalizing that process as a
requirement under the ORMP.
The current ORMP requires that Risk Owners complete the risk
identification process at least once a year and specifies that this
process shall not only allow the
[[Page 33859]]
identification of new risks but also the discontinuation of those that
no longer exist. It also specifies that if risks emerge or cease to
exist in between the annual reviews, ad hoc assessments shall be
triggered, which necessarily implies that risks must be identified more
frequently than annually as needed to determine whether risks emerge or
cease to exist in between annual reviews. The revised ORMP would
continue to require that Risk Owners complete the risk identification
process at least once a year, but explicitly require that the risk
identification process be completed more frequently than annually as
needed to reflect material risk changes, such as operational risk
incidents. The revised ORMP also would explicitly acknowledge that this
process would allow ICE Clear Europe to identify new risks and
discontinue documenting risks that no longer exist.
With respect to the assessment of risks, the current ORMP requires
that Risk Owners measure the potential impact of identified risks and
categorize this potential impact by severity and likelihood. Risk
Owners also consider the effect of controls on reducing the potential
impact of identified risks. The risk remaining after considering the
reduction caused by a control is the residual risk. The current ORMP
treats residual risk as an assessment of the effectiveness of a control
in reducing the potential impact of a risk. The revised ORMP would
maintain the same general framework for risk assessment as currently
used, but would provide additional detail with respect to controls and
the assessment of their effectiveness. Under the current ORMP, Risk
Owners musts assess risks on a controlled and uncontrolled basis and
must consider whether existing control mechanisms should be enhanced,
substituted, or abandoned. ICE Clear Europe proposes to continue
requiring such assessments, but to elaborate on the process by focusing
discussion in the ORMP on inherent risk versus residual risk. Under the
revised ORMP, Risk Owners would consider each risk on an inherent basis
(without taking into account the reduction caused by mitigating
controls) and on a residual basis (taking into account the reduction
caused by mitigating controls). Risk Owners would rate each inherent
and residual risk on a five-point scale--very low, low, medium, high,
or very high. As part of this process, Risk Owners also would rate the
mitigation that each control is expected to provide as high/medium/low
and the effectiveness of each control as satisfactory/needs
improvement/unsatisfactory. Risk Owners would derive the effectiveness
of a control from a number of measures, such as control testing,
metrics, and governance. The revised ORMP would require Risk Owners to
perform the risk assessment and related control assessment at least
once a year or more frequently as needed to reflect material risk
changes, such as operational risk incidents.
The current ORMP makes Risk Owners responsible for proposing and
implementing remedial actions to manage risks, subject to the approval
of the Executive Risk Committee. Further, the type of remedial action
depends on the potential expected impact of the operational risk and is
implemented following the risk assessments or control assessments. The
revised ORMP would similarly require Risk Owners to propose and
implement remedial actions, but they also would be required to take
into account the expected impact of mitigating controls and further
remediating actions would be explicitly required for any residual risks
assessed as high or very high. In addition, rather than being subject
solely to the approval of the Executive Risk Committee, the revised
ORMP would require any proposed remedial actions to be immediately
escalated to Senior Management and applicable Risk Committees or the
ICE Clear Europe Board.
The monitoring of risks under the revised ORMP would be generally
the same as under the current ORMP. The current ORMP requires that Risk
Owners and the Risk Oversight Department continuously monitor risks,
including daily monitoring through the use of certain indicators. The
revised ORMP similarly would require that Risk Owners and the Risk
Oversight Department continuously monitor risks, but would specify that
such monitoring should be ongoing monitoring (not just daily), in order
to clarify that monitoring should be continuous and not just once a
day. This particular change could be beneficial if, for example, under
the current daily monitoring ICE Clear Europe conducts monitoring at a
single specific time during the day and the risk emerges after that
time. Moreover, the current ORMP requires that the Risk Oversight
Department monitor risks daily through the Risk Appetite Metrics and
the Management Thresholds. The revised ORMP would likewise require the
Risk Oversight Department to conduct such monitoring, but it would
specify that the monitoring would be either daily or monthly given that
some metrics and thresholds are considered monthly and others are
considered daily. ICE Clear Europe calculates some existing risk
metrics on a monthly basis, so specifying monthly monitoring here would
take into account these metrics while maintaining daily monitoring for
the existing daily metrics.
The current ORMP requires assessments and operational incidents to
be reported to senior management, the Audit Committee, and the Board
Risk Committee, and further provides that the Board Risk Committee and
Board shall be informed of material incidents. The review and
assessment of operational incidents is part of ICE Clear Europe's
second line risk function, therefore the revised ORMP would require
that assessments and operational incidents be reported to senior
management and the Board Risk Committee, but it would replace the Audit
Committee, which is part of ICE Clear Europe's third line of risk
defense with the Executive Risk Committee, which is part of its second
line of defense, thereby aligning the risk function with its
appropriate line of defense. The Commission further notes that given at
least one member of the Audit Committee is also a member of the Board
Risk Committee, this member could share information related to
operational risk with the Audit Committee as needed.\5\
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\5\ See ICE Clear Europe Limited, Compliance with Principles for
Financial Market Infrastructures Disclosure Framework, available at
<a href="https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf">https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf</a>.
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The requirement that the Board Risk Committee and Board be informed
of material incidents would not change. The current ORMP also specifies
that the Product Risk Committees and the Executive Risk Committees will
receive information related to operational risk. The revised ORMP would
require that the Risk Oversight Department report operational risks
daily and monthly to senior management and the Executive Risk
Committee. Thus, the revised ORMP would specify that the Risk Oversight
Department would report this information, and would not include any
role for Product Risk Committees. The Commission notes that although
the revised ORMP would remove the Product Risk Committees, the CDS
Product Risk Committee includes as a member either the ICE Clear Europe
President or the Head of First Line Clearing Risk, and that the
President and the Head of First Line Clearing Risk are both voting
members of the Executive Risk Committee. Given that, the Commission
believes that the President or Head of First Line Clearing Risk could
share information related to
[[Page 33860]]
operational risk with the CDS Product Risk Committee as needed.\6\
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\6\ See ICE Clear Europe Limited, Compliance with Principles for
Financial Market Infrastructures Disclosure Framework, available at
<a href="https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf">https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf</a>.
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The revised ORMP would require that the Executive Risk Committee
approve changes in the Risk Dashboard at each monthly meeting and
report those changes to Board Risk Committee and Board. Although the
proposed rule change would add this language to the ORMP (it is not
stated in the current ORMP), this requirement is currently found in the
Risk Identification Framework, as discussed below.
With respect to the oversight of the ORMP itself, currently the
policy provides that it is subject to the oversight of the Audit
Committee and Risk Oversight Department. The proposed rule change would
remove the Audit Committee, such that the revised ORMP would only be
subject to the oversight of the Risk Oversight Department, thereby
aligning the risk function with its appropriate line of defense, as
discussed above.
Finally, the proposed rule change would correct typographical
errors throughout the ORMP. The proposed rule change also would update
the appendices to the ORMP by adding descriptive titles to the
appendices. For example, the proposed rule change would specify that
Appendix A is the Risk Dashboard. The proposed rule change also would
explain the numerical scores attached to the assessment guidelines in
Appendix C.
ii. Risk Identification Framework
ICE Clear Europe has had its current Risk Identification Framework
in place since 2016 but has not yet adopted it through the Commission's
proposed rule change process. The proposed rule change would formally
adopt the RIF as a Rule of ICE Clear Europe without change to the
current document.
As described in Section 1, the RIF provides ICE Clear Europe's
Board with a structure to explore, identify, and monitor risks as well
as ensure that risk tolerance is articulated and documented. It does
this by providing a description of the components of ICE Clear Europe's
operational risk management process.
Section 2 of the RIF describes four components of this structure:
the risk taxonomy, the Risk Dashboard, risk assessment, and emerging
risk assessment. The Risk Taxonomy, which is a single universal risk
structure, terminology, and hierarchy, is incorporated into the Risk
Dashboard, which, as noted above, inventories ICE Clear Europe's risks
and assigns an owner for each risk. The RIF requires that the
Enterprise Risk Committee approve changes to the Risk Dashboard monthly
and report them to the Board Risk Committee. With respect to the risk
assessment, the RIF refers to the details provided in the ORMP, as
described above. Finally, with the respect to the emerging risk
assessment, the RIF also describes how ICE Clear Europe assesses
emerging risks, which are potential, undefined, or unfamiliar one-off
risk events that may have a detrimental impact on ICE Clear Europe. ICE
Clear Europe does so through a special emerging risk assessment and a
register of emerging risk, which is presented to the Board and certain
board committees.
Section 3 of the RIF describes the documentation ownership and
governance processes in respect of the RIF itself. The Chief Risk
Officer owns the RIF, and the Executive Risk Committee and Board must
approve any material changes. The Executive Risk Committee and Board
review the Risk Identification Framework annually.
Finally, the RIF contains appendices like those found in the ORMP,
including the Risk Dashboard and impact assessment guidelines.
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 Rules 17Ad-22(e)(2)(v) and 17Ad-22(e)(17)
thereunder.\9\
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\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)(2)(v) and (e)(17).
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i. 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 ICE Clear Europe be designed to promote the prompt and
accurate clearance and settlement of securities transactions and, to
the extent applicable, derivative agreements, contracts, and
transactions.\10\ Based on its review of the record, and for the
reasons discussed below, the Commission believes the proposed changes
to the ORMP and the formalization of the RIF are consistent with the
promotion of the prompt and accurate clearance and settlement of
securities transactions.
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\10\ 15 U.S.C. 78q-1(b)(3)(F).
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The Commission believes that the proposed rule change would improve
ICE Clear Europe's process for identifying, assessing, managing,
monitoring, and reporting operational risks. It would do so, for
example, by revising the description of the risk identification process
in the ORMP to include the Risk Dashboard and by including the Risk
Dashboard itself as an appendix to the ORMP and to the RIF. Because the
Risk Dashboard documents all of ICE Clear Europe's identified
operational risks, the Commission believes that adding Risk Dashboard
as appendix to the ORMP and RIF would help to ensure that Risk Owners
focus on identifying new, undocumented operational risks by delineating
ICE Clear Europe's existing, known risks.
Similarly, the Commission believes that the revisions to the ORMP
could improve ICE Clear Europe's overall ability to assess the
potential impact of operational risks. For example, the requirement
that Risk Owners consider and rate each risk on an inherent and a
residual basis should help identify the impact of a risk with and
without a mitigating control. The Commission believes such an
assessment could highlight the impact that could result from the
failure of a mitigating control. This assessment in turn could inform
Risk Owners' ratings of the effectiveness of mitigating controls and
efforts to improve ineffective controls. Overall, the Commission
believes that the focus on mitigating controls and their effectiveness
would help to ensure that ICE Clear Europe maintains controls that are
effective at mitigating operational risk. Finally, requiring Risk
Owners to perform the risk assessment and related control assessment at
least once a year or more frequently as needed to reflect material risk
changes, instead of ad hoc assessments if risks emerge or cease to
exist in-between the annual reviews, should help to ensure that ICE
Clear Europe timely identifies any issues with respect to the
effectiveness of its controls.
The Commission further believes that revising the ORMP to focus on
the management of residual risks would improve ICE Clear Europe's
ability to manage its operational risks. Because ICE Clear Europe has
controls in place to mitigate the potential impact of its operational
risks, the Commission considers it appropriate to focus ICE Clear
Europe's efforts on maintaining
[[Page 33861]]
the effectiveness of those controls (as discussed above) and the
management of the residual risk remaining after accounting for the
mitigating controls. The Commission believes that requiring remediating
actions for any residual risks assessed as high or very high should
help to ensure that ICE Clear Europe manages those residual risks that
have a significant impact on ICE Clear Europe's operations. The
Commission further believes that requiring that any proposed remedial
actions be escalated to Senior Management and applicable Risk
Committees or the ICE Clear Europe Board, as opposed to just being
approved by the Executive Risk Committee, would help to ensure that
appropriate ICE Clear Europe personnel, including Board-level
committees, are informed and involved in the management of residual
risks.
Finally, the Commission believes that the proposed monitoring and
reporting of risks under the revised ORMP would help to ensure that ICE
Clear Europe appropriately monitors its operational risks. For example,
requiring ongoing monitoring (not just daily) should help to ensure
that such monitoring is conducted on an ongoing basis, and not just
once a day. As discussed above, this particular change could be
beneficial if, for example, under the current daily monitoring ICE
Clear Europe conducts monitoring at a single specific time during the
day and the risk emerges after that time.
Similarly, requiring monitoring daily or monthly (not just daily)
through the Risk Appetite Metrics and the Management Thresholds should
help to ensure the inclusion of those metrics and thresholds that are
only considered monthly. As discussed above, ICE Clear Europe
calculates some existing risk metrics on a monthly basis, so specifying
monthly monitoring would take into account these metrics while
maintaining daily monitoring for the existing daily metrics. The
Commission believes this change would make the ORMP more specific in
this regard, thereby making its application by ICE Clear Europe more
consistent and clear.
As discussed above, the current ORMP requires assessments and
operational incidents to be reported to senior management, the Audit
Committee, and the Board Risk Committee, and further provides that the
Board Risk Committee and Board shall be informed of material incidents.
The revised ORMP similarly would require regular reporting to senior
management, the Board Risk Committee, and the Executive Risk Committee.
The Commission believes that such reporting should help to ensure that
appropriate decision-makers are involved in management of operational
risk and able to respond as need to any incidents involving operational
risk.
As discussed above, the RIF helps to provide ICE Clear Europe's
Board with information on ICE Clear Europe's operational risk
management process. The Commission believes that codifying the RIF as
part of ICE Clear Europe's rule requirements should help to ensure that
the Board has a permanent framework for providing input on the
operational risk management process. The Commission believes that the
Board's input could, in turn, improve ICE Clear Europe's operational
risk management. For example, given the experience of Board members and
their vantage point overseeing all of ICE Clear Europe, Board members
may be able to offer improvements to mitigating controls.
For these reasons, the Commission believes the proposed rule change
would improve the ORMP and the RIF. As discussed above, ICE Clear
Europe uses the ORMP and the RIF to manage its operational risk. The
Commission therefore believes that these improvements to the ORMP and
the RIF should in turn improve ICE Clear Europe's overall management of
its operational risks. Improved management of operational risks should,
in turn, decrease the likelihood that operational incidents disrupt ICE
Clear Europe's ability to promptly and accurately clear and settle
securities transactions. The Commission believes therefore the proposed
rule change should enhance ICE Clear Europe's ability to promptly and
accurately clear and settle securities transactions, consistent with
Section 17A(b)(3)(F) of the Act.\11\
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\11\ 15 U.S.C. 78q-1(b)(3)(F).
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ii. Consistency With Rule 17Ad-22(e)(2)(v)
Rule 17Ad-22(e)(2)(v) requires that ICE Clear Europe establish,
implement, maintain and enforce written policies and procedures
reasonably designed to provide for governance arrangements that, among
other things, specify clear and direct lines of responsibility.\12\
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\12\ 17 CFR 240.17Ad-22(e)(2)(v).
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As discussed above, the current ORMP requires assessments and
operational incidents to be reported to senior management, the Audit
Committee, and the Board Risk Committee, and further provides that the
Board Risk Committee and Board shall be informed of material incidents.
The revised ORMP would require that assessments and operational
incidents be reported to senior management and the Board Risk
Committee, but it would replace the Audit Committee with the Executive
Risk Committee. The requirement that the Board Risk Committee and Board
be informed of material incidents would not change. The Commission
believes replacing the Audit Committee with the Executive Risk
Committee would specify a clear and direct line of responsibility for
the Executive Risk Committee. The Commission further notes that
although the revised ORMP would remove the Audit Committee, given that
at least one member of the Audit Committee is also a member of the
Board Risk Committee, the Commission believes that this member could
share information related to operational risk with the Audit Committee
as needed.\13\
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\13\ See ICE Clear Europe Limited, Compliance with Principles
for Financial Market Infrastructures Disclosure Framework, available
at <a href="https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf">https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf</a>.
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Moreover, as discussed above, the current ORMP also specifies that
the Product Risk Committees and the Executive Risk Committees will
receive information related to operational risk. The revised ORMP would
require that the Risk Oversight Department report operational risks
daily and monthly to senior management and the Executive Risk
Committee. Thus, the revised ORMP would specify that the Risk Oversight
Department would report this information, and the revised ORMP would
not include any role for Product Risk Committees. The Commission
believes this change would specify a clear and direct line of
responsibility for the Risk Oversight Department. The Commission
further notes that although the revised ORMP would remove the Product
Risk Committees, the CDS Product Risk Committee includes as a member
either the ICE Clear Europe President or the Head of First Line
Clearing Risk, and that the President and the Head of First Line
Clearing Risk are both voting members of the Executive Risk Committee.
Given that, the Commission believes that the President or Head of First
Line Clearing Risk could share information related to operational risk
with the CDS Product Risk Committee as needed.\14\
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\14\ See ICE Clear Europe Limited, Compliance with Principles
for Financial Market Infrastructures Disclosure Framework, available
at <a href="https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf">https://www.theice.com/publicdocs/clear_europe/ICE_Clear_Europe_Disclosure_Framework.pdf</a>.
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The revised ORMP also would require that the Executive Risk
Committee approve changes in the Risk Dashboard at each monthly meeting
and report
[[Page 33862]]
those changes to the Board Risk Committee and Board. The Commission
believes that adding this language to the ORMP (it is not stated in the
current ORMP but is part of the RIF), would specify a clear and direct
line of responsibility for the Executive Risk Committee.
Finally, with respect to the oversight of the ORMP itself,
currently the policy provides that it is subject to the oversight of
the Audit Committee and Risk Oversight Department. The proposed rule
change would remove the Audit Committee, such that the revised ORMP
would only be subject to the oversight of the Risk Oversight
Department. The Commission believes this change would specify a clear
and direct line of responsibility for the Risk Oversight Department, in
accordance with the appropriate line of risk defense, as discussed
above.
Therefore, the Commission finds that the proposed rule change is
consistent with Rule 17Ad-22(e)(2)(v).\15\
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\15\ 17 CFR 240.17Ad-22(e)(2)(v).
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iii. Consistency With Rule 17Ad-22(e)(17)
Rule 17Ad-22(e)(17) requires that ICE Clear Europe establish,
implement, maintain and enforce written policies and procedures
reasonably designed to manage its operational risks by, among other
things, identifying the plausible sources of operational risk, both
internal and external, and mitigating their impact through the use of
appropriate systems, policies, procedures, and controls.\16\ The
Commission believes that the revised ORMP should improve ICE Clear
Europe's ability to manage operational risk by identifying the
plausible sources of operational risk at ICE Clear Europe. For example,
the revised ORMP would include the Risk Dashboard as an appendix, and
similarly the RIF includes the Risk Dashboard as an appendix. Because
the Risk Dashboard documents all of ICE Clear Europe's identified
operational risks, the Commission believes that adding it formally as
an appendix to the ORMP would help to ensure that Risk Owners focus on
identifying new, undocumented operational risks by delineating those
risks that ICE Clear Europe already knows of and has identified.
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\16\ 17 CFR 240.17Ad-22(e)(17).
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Similarly, the Commission believes that the revised ORMP should
improve ICE Clear Europe's ability to manage operational risk by
mitigating the impact of operational risk through the use of
appropriate controls. For example, the revised ORMP would provide
additional detail with respect to controls and the assessment of their
effectiveness, including how Risk Owners would rate the effectiveness
of controls. The Commission believes that doing so could help identify
and improve controls that could mitigate the impact of operational
risks.
Therefore, the Commission finds that the proposed rule change is
consistent with Rule 17Ad-22(e)(17).\17\
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\17\ 17 CFR 240.17Ad-22(e)(17).
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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 \18\ and Rules 17Ad-22(e)(2)(v) and 17Ad-22(e)(17) thereunder.\19\
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\18\ 15 U.S.C. 78q-1(b)(3)(F).
\19\ 17 CFR 240.17Ad-22(e)(2)(v) and (e)(17).
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It is therefore ordered pursuant to Section 19(b)(2) of the Act
\20\ that the proposed rule change (SR-ICEEU-2022-008) be, and hereby
is, approved.\21\
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\20\ 15 U.S.C. 78s(b)(2).
\21\ 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).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-11879 Filed 6-2-22; 8:45 am]
BILLING CODE 8011-01-P
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