Notice2026-11382
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to the Operational Risk Management 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 8, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 109 (Monday, June 8, 2026)</title>
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[Federal Register Volume 91, Number 109 (Monday, June 8, 2026)]
[Notices]
[Pages 34681-34684]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11382]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105606; File No. SR-ICC-2026-004]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change Relating to the Operational Risk
Management Framework
June 3, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4,\2\ notice is hereby given that on May 29,
2026, ICE Clear Credit LLC (``ICC'' or ``ICE Clear Credit'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared primarily by ICC. The Commission is publishing this
notice to solicit comments on the proposed rule change, security-based
swap submission, or advance notice from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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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
Operational Risk Management
[[Page 34682]]
Framework (``ORMF''). These revisions do not require any changes to the
ICC Credit Default Swap (``CDS'') or U.S. Treasury (``Treasury'')
Clearing Rules.\3\
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\3\ ICC's CDS and Treasury Clearing Rules are available on ICC's
public website at <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> and <a href="https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Treasury_Clearing_Rules.pdf">https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Treasury_Clearing_Rules.pdf</a>.
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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
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, Security-Based Swap Submission, or
Advance Notice
(a) Purpose
ICC proposes to revise its ORMF. The ORMF details ICC's dynamic and
independent program of risk assessment and oversight that aims to
reduce operational incidents, encourage process, and control
improvement, bring transparency to operational performance standard
monitoring, and fulfill regulatory obligations. The proposed revisions
to the ORMF generally consist of clarifications, updates to reflect
current practices at ICC, and minor clean-up changes. ICC believes such
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 proposes
to make such changes effective following Commission approval of the
proposed rule change. The proposed revisions are described in detail as
follows.
ICC proposes minor terminology updates to improve clarity in
Section I, which describes ICC's operational risk lifecycle. The goal
of the operational risk lifecycle is to actively identify, assess,
monitor, mitigate and report on all plausible sources of operational
risk. Accordingly, relevant processes associated with the operational
risk lifecycle are currently organized under the following categories:
identify, assess, monitor, mitigate, and report. ICC proposes to revise
and replace the terminology to explicitly reference risk and add a new
category of ``risk management'' to replace the existing ``mitigate''
category. As amended, relevant processes associated with the
operational risk lifecycle would be organized under the following in
the text and in the Operational Risk `Lifecycle' chart in Section I:
risk identification, risk assessment, risk management, risk monitoring,
and risk reporting. Under the amended language, the ``risk assessment''
category would also include examining exposure in terms of likelihood
and impact, including the effectiveness of existing controls that
mitigate identified risks.
This operational lifecycle is used to implement the risk assessment
and performance objectives setting and monitoring processes, and
accordingly, ICC proposes corresponding terminology revisions to
describe such processes in Section I. For instance, ICC proposes to
describe the risk assessment process of the operational lifecycle in
Section I as actively identifying, assessing, managing, and monitoring
all plausible sources of operational risk and ensuring policies and
procedures are in place to address the presented risk scenarios. In
general, the purpose of the revisions is to ensure that the ORMF
clearly reflects the description of the operational life cycle. In
Section I.A, under the ``Risk Identification'' category, ICC proposes
to replace a general reference to ``treasury'' with a more specific
reference to ``movement of funds'' when describing clearing processes.
ICC proposes minor updates to the ``Risk Assessment'' category to
ensure its summary of the applicable Risk Assessment guidelines is
consistent with the ICE, Inc. Enterprise Risk Management Policy (``ERM
Policy'') that sets out those guidelines, including removing reference
to ``design'' and updating reference to ``control remediation
recommendation, and key control validation'' as topics addressed in
such policy. ICC also proposes to rename the ``Mitigate'' category into
the ``Risk Management'' category. ICC proposes minor edits to Sections
I.A and I.B to replace verbs with nouns (e.g., replace ``identify''
with ``identification''), and to replace the ``mitigate'' category with
``management'', including removing references to ``mitigate'' within
its description.
ICC proposes updates to Section II.B. describing the management of
risks from relationships with service providers for core services. ICC
proposes to include reference to procedures that ICC maintains related
to oversight, management and review of ICC's agreements governing the
outsourcing of services by ICC to its affiliates. ICC proposes
additional edits to reorganize a sentence for clarity regarding an
identified ICC service provider for core services. Additional edits
replace business services with administrative services to align with a
new agreement executed by ICC. ICC proposes clarifications of such
administrative services to include facilities, corporate treasury, and
internal audit. In Section II.C, ICC further proposes to clarify there
are four identified core clearing services and to remove reference to
``CDS'' so that such clearing services are not product specific. ICC
intends for this ORMF to apply to its new Treasury clearing service as
well as its existing CDS clearing service.\4\
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\4\ ICC filed an application on Form CA-1 (``Application'')
under Section 17A of the Securities Exchange Act of 1934 (the
``Act'') (15 U.S.C. 78q-1) with the Securities and Exchange
Commission (``Commission'') to register as a clearing agency to
provide central counterparty services for transactions involving
Treasury securities on August 1, 2025. Notice of ICC's Application
was published in the Federal Register on August 21, 2025. See
Securities Exchange Act Release No. 103727 (August 18, 2025), 90 FR
40879 (August 21, 2025) (File No. 600-45). The Commission issued an
order granting ICC's Application for registration as a clearing
agency to provide central counterparty services for transactions
involving U.S. Treasury securities on January 30, 2026. See
Securities Exchange Act Release No. 104762 (January 30, 2026), 91 FR
5528 (February 6, 2026) (File No. 600-45).
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ICC proposes to further amend Section II. ICC proposes minor
updates to improve clarity in Section II.E., which discusses the
Information Security Department,\5\ which is responsible for risk
analysis and oversight of information security and physical security/
environmental controls. ICC proposes amendments regarding
responsibilities of the Operational Oversight Committee (``OOC''),
which acts as the forum to discuss changes and improvements to the
services provided by the Parent. The proposed changes specify the OOC's
receipt and review of the corporate information security policy and
updates related to information security metrics, remediation
activities, security incidents, and threat intelligence. Additional
edits update the ICC members of the OOC to include the ICC President
and ICC Chief Operating Officer. In Section II.F., which outlines ICC's
technology control functions, ICC proposes to remove a specific
reference to CDS clearing, as this ORMF will also apply to ICC's
Treasury clearing service,
[[Page 34683]]
and to update a policy reference to be current.
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\5\ The Information Security Department is an Intercontinental
Exchange, Inc. (``ICE, Inc.'' or ``Parent'') department.
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ICC proposes revisions of Section III regarding the administration
of the ORMF. ICC proposes to include references to the Board Risk
Committee with respect to the annual review of the ORMF and any
material amendments.\6\
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\6\ 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).
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ICC also proposes minor language clarifications and additional
grammatical clean-up changes throughout the document that do not change
the substance of the ORMF. These clean-up changes include deleting
unnecessary definite articles, replacing conjunctions with commas,
correcting verb tense and usage (e.g., changing ``do occur'' to
``occur''), and removing unnecessary prepositions throughout the
document. ICC also proposes a minor edit to Section II.A to correct a
typographical error to reference ``these business processes'' instead
of ``these business process.''
(b) Statutory Basis
ICC believes that the proposed changes are consistent with the
requirements of Section 17A of the Securities Exchange Act of 1934
(``Act'') \7\ and the regulations thereunder applicable to it,
including the applicable standards under Rule 17Ad-22.\8\ In
particular, Section 17A(b)(3)(F) of the Act \9\ requires that the rule
change be consistent with the prompt and accurate clearance and
settlement of securities transactions and derivative agreements,
contracts and transactions cleared by ICC, 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. ICC believes that the proposed rule change is consistent with
the requirements of the Act and the rules and regulations thereunder
applicable to ICC, in particular, to Section 17A(b)(3)(F),\10\ because
the proposed rule change enhances ICC's ability to control its
operational risk by ensuring that the ORMF clearly, transparently, and
accurately reflects ICC's operational risk lifecycle and associated
governance practices. This operational lifecycle is used to implement
the risk assessment and performance objectives setting and monitoring
processes, and accordingly, ICC proposes corresponding terminology
revisions to describe such processes. ICC proposes to revise the
labeling across categories to improve consistency, including by
incorporating risk-based modifiers, and to add a new category of ``risk
management'' to replace the existing ``mitigate'' category.
Additionally, the proposed changes to the ``Risk Assessment'' component
ensure its summary of the applicable Risk Assessment guidelines is
consistent with the ERM Policy which sets out those guidelines. As
such, the proposed rule change is designed to promote the prompt and
accurate clearance and settlement of securities transactions,
derivatives agreements, contracts, and transactions; to contribute to
the safeguarding of securities and funds associated with security-based
swap transactions in ICC's custody or control, or for which ICC is
responsible; and, in general, to protect investors and the public
interest within the meaning of Section 17A(b)(3)(F) of the Act.\11\
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\7\ 15 U.S.C. 78q-1.
\8\ 17 CFR 240.17ad-22.
\9\ 15 U.S.C. 78q-1(b)(3)(F).
\10\ Id.
\11\ Id.
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The amendments would also satisfy relevant requirements of Rule
17Ad-22.\12\ Rule 17Ad-22(e)(2)(i) and (v) \13\ requires each covered
clearing agency to establish, implement, maintain, and enforce written
policies and procedures reasonably designed to provide for governance
arrangements that are clear and transparent and specify clear and
direct lines of responsibility. The proposed revisions to the ORMF
enhance ICC's ability to satisfy these requirements by clarifying the
operational risk lifecycle and incorporating updates relating to the
review of the ORMF by the Board Risk Committee. Further, ICC's proposed
amendments regarding responsibilities of the OOC, which acts as the
forum to discuss changes and improvements to the services provided by
the Parent, specify the OOC's receipt and review of the corporate
information security policy and updates related to information security
metrics, remediation activities, security incidents, and threat
intelligence. Additional edits update the ICC members of the OOC. Such
changes improve the accuracy and transparency of ICC's governance
arrangements and improve the clarity of the lines of responsibility. In
ICC's view, the proposed changes are therefore consistent with the
requirements of Rule 17Ad-22(e)(2)(i) and (v).\14\
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\12\ 17 CFR 240.17Ad-22.
\13\ 17 CFR 240.17ad-22(e)(2)(i) and (v).
\14\ Id.
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Rule 17Ad-22(e)(21) \15\ requires each covered clearing agency to
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to be efficient and effective in meeting
the requirements of its participants and the markets it serves, and
have its management regularly review the efficiency and effectiveness
of its (i) clearing and settlement arrangements; (ii) operating
structure, including risk management policies, procedures, and systems;
(iii) scope of products cleared or settled; and (iv) use of technology
and communication procedures. As noted above, the operational risk
lifecycle is used to implement ICC's risk assessment and performance
objectives setting and monitoring processes. The proposed revisions
more clearly set out the operational risk lifecycle thereby promoting
ICC's ability to be efficient and effective in meeting the requirements
of its participants and the markets it serves. Further, the proposed
revisions clarify responsibilities regarding review of risk assessments
and operational risk reporting to appropriate parties, which would
promote management's regular review of the efficiency and effectiveness
of ICC's clearing and settlement arrangements, operating structure,
product scope, and use of technology and communication procedures. The
proposed rule changes are thus reasonably designed to meet the
requirements of Rule 17Ad-22(e)(21).\16\
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\15\ 17 CFR 240.17Ad-22(e)(21).
\16\ 17 CFR 240.17Ad-22(e)(21).
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(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 revisions to
the ORMF generally consist of clarifications, updates to reflect
current practices at ICC, and minor clean-up changes. The proposed
changes to revise the ORMF will apply uniformly across all market
participants. 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
would impose 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
Received From Members, Participants or Others
Written comments relating to the proposed amendments have not been
solicited or received. ICC will notify the Commission of any written
comments
[[Page 34684]]
received with respect to the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) by order approve or disapprove such proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be 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
<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#c1b3b4ada4eca2aeacaca4afb5b281b2a4a2efa6aeb7"><span class="__cf_email__" data-cfemail="5220273e377f313d3f3f373c2621122137317c353d24">[email protected]</span></a>. Please include
file number SR-ICC-2026-004 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-2026-004. 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
the filing 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-2026-004 and should
be submitted on or before June 29, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
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\17\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11382 Filed 6-5-26; 8:45 am]
BILLING CODE 8011-01-P
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