Notice2026-01371
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ICC's New Initiatives Approval Policy and Procedural 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
January 26, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 16 (Monday, January 26, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 16 (Monday, January 26, 2026)]
[Notices]
[Pages 3259-3262]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01371]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104639; File No. SR-ICC-2026-001]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
ICC's New Initiatives Approval Policy and Procedural Framework
January 21, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that on
January 9, 2026, ICE Clear Credit LLC (``ICC'' or ``ICE Clear Credit'')
filed with the Securities and Exchange Commission the proposed rule
change, security-based swap submission, or advance notice as described
in Items I, II and III below, which Items have been primarily prepared
by ICC. ICC filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \3\ and paragraph (f)(3) of Rule 19b-4 \4\
thereunder, such that the proposed rule change was immediately
effective upon filing with the Commission. The Commission is publishing
this notice to solicit comments on the proposed rule change, security-
based swap submission, or aCdvance notice from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed rule change is to revise the
New Initiatives Approval Policy and Procedural Framework (``NIA
Policy''). These revisions do not require any changes to the ICC
Clearing Rules (the ``Rules'').\5\
---------------------------------------------------------------------------
\5\ ICC's Rules are available on its public website: <a href="https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf">https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf</a>.
---------------------------------------------------------------------------
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICC included statements
concerning the purpose of and basis for the proposed rule change,
security-based swap submission, or advance notice and discussed any
comments it received on the proposed rule change, security-based swap
submission, or advance notice. The text of these statements may be
examined at the places specified in Item IV below. ICC has prepared
[[Page 3260]]
summaries, set forth in sections (A), (B), and (C) below, of the most
significant aspects of these statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
ICC proposes revising its NIA Policy, which sets forth ICC's
policies and procedures for the review and approval of certain new
initiatives to be offered or implemented by ICC (``New Initiatives'').
The NIA Policy also describes the role of the New Initiative Approval
Committee (``NIAC''), which is the group responsible for the
identification, review and approval of New Initiatives. ICC proposes
revisions to the NIA Policy to update the membership of the NIAC and
make other minor clarification or clean-up changes. ICC believes the
proposed revisions will facilitate the prompt and accurate clearance
and settlement of securities transactions and derivative agreements,
contracts, and transactions for which it is responsible. ICC will not
make the changes effective until all required regulatory actions are
completed.\6\ The proposed rule change is described as follows.
---------------------------------------------------------------------------
\6\ The proposed rule change is filed for immediate
effectiveness but will not be implemented until the change is
certified in accordance with Commodity Futures Trading Commission
Regulation 40.6.
---------------------------------------------------------------------------
NIA Policy Overview
The NIA Policy sets forth ICC's policies and procedures for the
review and approval of New Initiatives, including the role of the NIAC.
Projects meeting certain criteria are considered New Initiatives and
require NIAC approval prior to launch. These include projects involving
(1) new and material modifications to the risk and/or pricing
methodology; (2) potential significant changes to the processing
system, Rules, and/or clearing operating procedures; (3) new and
material modifications to existing and significant capabilities
provided by ICC to operate the clearing house or enable its Clearing
Participants (``Participants'') or their clients to clear trades and
manage and price their cleared portfolios; or (4) certain material
model changes under ICC's Model Validation Framework.\7\ The NIAC is
responsible for the identification, review and approval of New
Initiatives and is composed of the President, Chief Risk Officer
(``CRO''), Head of Corporate Development, General Counsel, Chief
Compliance Officer, Chief Operating Officer, Regional CRO--North
American Clearinghouses, Manager of Systems Operations, Head of Quality
Systems, and Vice President of Technology.
---------------------------------------------------------------------------
\7\ See Securities Exchange Act Release No. 95214 (July 7,
2022), 87 FR 41776 (July 13, 2022) (File No. SR-ICC-2022-006)
(containing additional information on ICC's Model Validation
Framework and model change materiality).
---------------------------------------------------------------------------
The intention of the NIA Policy is to notify all relevant
departments of the introduction of the New Initiative, facilitate
information sharing between departments, ensure prior to the launch of
a New Initiative that all required governance and regulatory filings
have been completed and New Initiative risks are considered, and
establish requirements for the pre-launch verification and testing of
the New Initiative. To achieve this, the NIA Policy defines key terms,
roles and responsibilities, outlines a procedural framework with
activity steps, and includes policy administration details, along with
various templates used by the NIAC.
Membership Updates
ICC proposes to update the membership of the NIAC to align with
current roles and responsibilities. The proposed amendments add a new
member to the NIAC, the Director, Treasury, North America Clearing
Houses (``Treasury Director''), to capture any treasury-related
considerations during the identification, review and approval of New
Initiatives by the NIAC. This individual is responsible for treasury
functions at ICC and adding this role to the NIAC would help ensure
such considerations are appropriately represented at the NIAC. The
proposed updates remove the Head of Corporate Development, as this
individual now serves as the Chief Operating Officer, a role which is
already represented on the NIAC. In addition, ICC proposes updating
member titles to reflect current designations: Regional CRO--North
American Clearinghouses would be Senior Director, Enterprise Risk;
Manager of Systems Operations would be Director, Systems Operations;
Head of Quality Systems would be Director, Quality Assurance; and Vice
President of Technology would be Head of Technology. ICC also proposes
to update the NIAC Secretary from Technology Project Manager or NIAC
chair designee to the NIAC chair designee, such that the role is not
tied to a position title that may change over time.
ICC proposes to make updates throughout the NIA Policy to effect
these changes. Specifically, ICC proposes to update the membership
composition, as described above, in the list of key definitions in
Section II; list of Functional Area Heads \8\ in Section IV; and list
of NIAC members in Attachments C, D and F to the NIA Policy.
---------------------------------------------------------------------------
\8\ Functional Areas are defined in Section II of the NIA Policy
as any or all of Risk, Pricing, Compliance, Legal, Operations,
Finance, Treasury, Accounting, and Information Technology (``IT'').
---------------------------------------------------------------------------
Additional Clarifications or Clean-Up Changes
ICC proposes additional clarifications or clean-up changes
throughout the NIA Policy, including incorporating recent governance
updates, and updating categories and rating guidelines in an internal
risk assessment template. ICC proposes amendments to reflect recent
governance updates in Section IV and Attachment A to the NIA Policy.
Specifically, ICC proposes to reference the recently established Board
Risk Committee when identifying stakeholders whose recommendation or
approval may be required.\9\
---------------------------------------------------------------------------
\9\ ICC previously filed a proposed rule change to establish the
Board Risk Committee. See Securities Exchange Act Release No. 103161
(May 30, 2025), 90 FR 23970 (June 5, 2025) (File No. SR-ICC-2025-
006).
---------------------------------------------------------------------------
ICC also proposes to update Attachment B to the NIA Policy, which
contains a risk assessment template reviewed by the NIAC. This template
describes key risks identified by the Functional Area department heads,
mitigation plans, and residual impact ratings and comments. Currently,
for each potential risk, ratings are provided for the following
categories: Risk Management, Operations, Legal/Governance, Compliance,
Technology, and Reputation. To reflect the addition of the Director of
Treasury to the NIAC, ICC proposes a separate category for Treasury in
the risk assessment template. ICC further proposes to clarify that
Operations refers to ``Business'' Operations to better define the scope
and to establish Systems Operations as a distinct category, separate
from Technology, to promote more specific comments pertaining to
Systems Operations. In general, such changes would improve clarity in
the NIA Policy and promote ICC's ability to properly identify and
address key risks by including additional specificity in the risk
assessment.
ICC proposes related revisions to the rating guidelines to ensure
consistency with the changes described above. ICC proposes updating
``Operations'' to ``Business Operations'' without changing the existing
rating guidelines. ICC proposes adding rating guidelines for the new
categories of Systems
[[Page 3261]]
Operations \10\ and Treasury \11\ noted above. ICC further proposes
adding guidelines for the existing category of Reputation to ensure
that such category noted in the risk assessment has documented rating
guidelines.\12\ Such changes would promote clarity when determining
low, medium, and high ratings. ICC also proposes a non-substantive
clean-up change to the Table of Contents to remove the titles of
attachments, which are unnecessary in ICC's view. Such change would not
alter the names of the attachments within the NIA Policy text.
---------------------------------------------------------------------------
\10\ Guidelines would include the following: low rating for
potential infrequent, minor system performance degradation; medium
rating for potential frequent, minor outages or infrequent,
significant outages; and high rating for potential frequent,
significant outages or system failures.
\11\ Guidelines would include the following: low rating for
minor impact on funds management or movement; medium rating for
delays or disruptions in funds management or movement possible; and
high rating for significant delays or disruptions in funds
management or movement likely.
\12\ Guidelines would include the following: low rating for
immaterial impact on regulatory or public perception; medium rating
for possible decline in stakeholder trust and heightened regulatory
or public scrutiny; and high rating for likely and significant
decline in stakeholder trust and adverse regulatory or public
perception.
---------------------------------------------------------------------------
(b) Statutory Basis
ICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \13\ and the regulations
thereunder applicable to it, including the applicable standards under
Rule 17Ad-22.\14\ In particular, Section 17A(b)(3)(F) of the Act \15\
requires that the rule change be designed to promote the prompt and
accurate clearance and settlement of securities transactions and
derivative agreements, contracts and transactions cleared by ICC, to
assure the safeguarding of securities and funds in the custody or
control of ICC or for which it is responsible, and to protect investors
and the public interest.
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1.
\14\ 17 CFR 240.17Ad-22.
\15\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
As described above, the proposed revisions to the NIA Policy update
the membership of the NIAC and make other minor clarification or clean-
up changes. Such changes promote clarity in the NIA Policy and ICC's
ability to properly identify and address key risks, including by adding
a new member to the NIAC to capture any treasury-related considerations
and including additional specificity and clarity in the risk assessment
and related rating guidelines. Such sound policies, practices, and
procedures are an important component of ICC's ability to comply with
the requirements of Section 17A of the Act \16\ because disruptions to
operations resulting from a new offering or implementation can impair
the prompt and accurate clearance and settlement of securities
transactions, derivatives agreements, contracts, and transactions;
safeguarding of securities and funds which are in the custody or
control of ICC or for which it is responsible; and protection of
investors and the public interest. Accordingly, ICC believes that the
proposed rule change is consistent with the prompt and accurate
clearance and settlement of securities transactions, derivatives
agreements, contracts, and transactions, the safeguarding of securities
and funds in the custody or control of ICC or for which it is
responsible, and the protection of investors and the public interest,
within the meaning of Section 17A(b)(3)(F) of the Act.\17\
---------------------------------------------------------------------------
\16\ 15 U.S.C. 78q-1.
\17\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Further, the proposed rule change is consistent with the relevant
requirements of Rule 17Ad-22.\18\ Rule 17Ad-22(e)(2)(i) and (v) \19\
requires ICC to establish, implement, maintain and enforce written
policies and procedures reasonably designed to, in relevant part,
provide for governance arrangements that are clear and transparent and
specify clear and direct lines of responsibility. The proposed
amendments add the Head of Treasury to the NIAC to capture any
treasury-related considerations during the identification, review and
approval of New Initiatives, update member titles to reflect current
designations, and incorporate reference to the Board Risk Committee.
The NIA Policy will continue to clearly assign and document
responsibility and accountability for the identification, review, and
approval of New Initiatives by the NIAC. These governance arrangements
continue to be clear and transparent, such that information relating to
the assignment of responsibilities and the requisite involvement of
department heads and the NIAC is clearly documented. In ICC's view, the
proposed changes are therefore consistent with the requirements of Rule
17Ad-22(e)(2)(i) and (v).\20\
---------------------------------------------------------------------------
\18\ 17 CFR 240.17Ad-22.
\19\ 17 CFR 270.17Ad-22(e)(2)(i) and (v).
\20\ Id.
---------------------------------------------------------------------------
Rule 17Ad-22(e)(17)(i) \21\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to, in relevant part, manage its operational risks by
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. The proposed
rule change provides additional clarity in the NIA Policy regarding the
risk assessment template and related rating guidelines utilized by the
NIAC. Such changes will enhance the review of New Initiatives,
including by updating the risk assessment template and providing
additional clarity with respect to rating guidelines, which serves to
reduce the likelihood of a disruption in operations from a New
Initiative. Moreover, the documentation of ICC's New Initiatives
process will continue to improve ICC's ability to identify sources of
operational risk and minimize them through the development of
appropriate systems, policies, procedures, and controls, consistent
with the requirements of Rule 17Ad-22(e)(17)(i).\22\
---------------------------------------------------------------------------
\21\ 17 CFR 240.17Ad-22(e)(17)(i).
\22\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition. The proposed changes
update NIAC membership and make clarification or clean-ups to the NIA
Policy. These changes relate to the governance and structure of an
internal ICC committee and do not impact ICC's operational rules or
Participant-facing processes. Moreover, ICC does not believe these
amendments would affect the costs of clearing or the ability of market
participants to access clearing. Therefore, ICC does not believe the
proposed rule change imposes any burden on competition that is
inappropriate in furtherance of the purposes of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.
III. Date of Effectiveness of the Proposed Rule Change
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \23\ and paragraph (f) of Rule 19b-4 \24\
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
[[Page 3262]]
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.
---------------------------------------------------------------------------
\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(3).
---------------------------------------------------------------------------
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
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking">https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking</a>);
or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#a5d7d0c9c088c6cac8c8c0cbd1d6e5d6c0c68bc2cad3"><span class="__cf_email__" data-cfemail="e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e">[email protected]</span></a>. Please include
file number SR-ICC-2026-001 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to file number SR-ICC-2026-001. 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 of submission. The Commission will post all
comments on the Commission's internet website (<a href="https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking">https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking</a>). Copies of
such filings will be available for inspection and copying at the
principal office of ICE Clear Credit and on ICE Clear Credit's website
at <a href="https://www.ice.com/clear-credit/regulation">https://www.ice.com/clear-credit/regulation</a>.
Do not include personal identifiable information in submissions;
you should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to file number SR-ICC-2026-001 and
should be submitted on or before February 17, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
---------------------------------------------------------------------------
\25\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-01371 Filed 1-23-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 26, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.