Notice2026-18397
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Relating to ICC's Model Validation Framework and Treasury Operations Policies and Procedures
Primary source
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Published
September 10, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 174 (Thursday, September 10, 2026)</title>
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[Federal Register Volume 91, Number 174 (Thursday, September 10, 2026)]
[Notices]
[Pages 57665-57667]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18397]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106279; File No. SR-ICC-2026-010]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
ICC's Model Validation Framework and Treasury Operations Policies and
Procedures
September 4, 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 August 25,
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. ICC filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and paragraph (f)(1) of
Rule 19b-4 thereunder,\4\ 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 from interested persons.
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\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)(2).
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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
Model Validation Framework (``MVF'') and the Treasury Operations
Policies and Procedures (``Treasury Operations Policy'') for the CDS
Clearing Service. These revisions do not require any changes to the ICC
CDS Clearing Rules (the ``Rules'').\5\
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\5\ ICC's CDS Rules are available on ICC's 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>.
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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 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. 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
(a) Purpose
The purpose of the proposed rule change is to amend the MVF and
Treasury Operations Policy for the CDS Clearing Service. The MVF
provides assurances that ICC Models \6\ for the CDS Clearing Service
are performing as expected, in line with their design objectives and
business use. The Treasury Operations Policy describes the policies and
procedures used to support ICC's Treasury functions for the CDS
Clearing Service, including funds management, cash settlement,
collateral management, and investment strategy. The proposed changes
consist of clarification and clean-up changes to the MVF and Treasury
Operations Policy to reflect current practices. ICC believes that such
changes 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 any applicable regulatory
review or approval process.\7\ The proposed rule change is described in
detail as follows.
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\6\ A model refers to a quantitative method, system, or approach
that applies statistical, economic, financial, or mathematical
theories, techniques, and assumptions to process input data into
quantitative estimates (``Model'').
\7\ 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.
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Model Validation Framework
ICC proposes clarifications and clean-up changes to the MVF,
including clarifying its applicability to the CDS Clearing Service and
updating references to existing committees and a working group. Such
changes are designed to reflect current practices. ICC proposes to re-
title the MVF from ``Model Validation Framework'' to ``CDS Clearing
Service Model Validation Framework'' to clarify its applicability to
the CDS Clearing Service.
ICC proposes revisions to more specifically identify the CDS Risk
Committee and reflect its existing model validation responsibilities in
the MVF. In particular, the MVF assigns various model validation
responsibilities to the ``Risk Committee'' throughout the document. ICC
proposes to replace references to the ``Risk Committee'' with more
specific references to the ``CDS Risk Committee.'' These changes do not
represent a departure in existing practice, as the CDS Risk Committee
currently performs these functions. Rather, these changes clarify that
such provisions refer to the CDS Risk Committee, given the recent
establishment of the Board Risk Committee, to more clearly distinguish
between the two committees.\8\ Specifically, ICC proposes to make the
following changes:
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\8\ 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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<bullet> Under amended Section 1.2, ICC consults with the CDS Risk
Committee when adding or retiring a Model, or adding, enhancing, or
retiring its components (``Model Components'').
<bullet> Under amended Section 1.3, the CDS Risk Committee reviews
materiality classifications and provides feedback as necessary.
<bullet> Under amended Section 2.2, the ICC Risk Oversight Officer
(``ROO'') maintains a list of pre-approved independent model
validators, which the CDS Risk Committee reviews; presents new model
validators to the CDS Risk Committee for consultation; and is
responsible for reassessing selected model validators' continued
independence and presenting this assessment to the CDS Risk Committee.
<bullet> Under amended Section 2.4, the Model Inventory (i.e.,
central repository holding key information about ICC Models, Model
Components and Model Changes \9\) includes the date the initial
validation report was reviewed by the CDS Risk Committee and the date
the CDS Risk Committee recommended Board approval.
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\9\ For each Model, ICC distinguishes between new, enhanced, and
retired Model Components (collectively ``Model Change'').
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<bullet> Under amended Section 3.2, the ICC Chief Risk Officer
(``CRO'') describes Model Changes to the CDS Risk Committee.
<bullet> Under amended Subsection 3.2.1.a, the Board approves the
final methodology for a Model Change after review and recommendation by
the CDS Risk Committee.
<bullet> Under amended Subsection 3.2.1.b, ICC obtains approval
from the Board after review by the CDS Risk Committee with respect to
changes to certain elements of ongoing monitoring and validation
(``OM&V'').
<bullet> Under amended Subsection 3.2.2.b, ICC, in consultation
with the CDS Risk Committee, may determine certain low priority issues
do not reflect a potential deficiency.
<bullet> Under amended Subsection 3.2.2.c, ICC obtains a no-
objection to the independent validation from the CDS
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Risk Committee, and the ROO and CRO (or designee) present the
independent validation report to the CDS Risk Committee.
<bullet> Under amended Section 3.4, the CRO informs the CDS Risk
Committee regarding OM&V results triggering an investigation.
<bullet> Under amended Section 3.5, the ROO, in consultation with
the CDS Risk Committee, sets an established periodicity for independent
periodic review.
<bullet> Under amended Subsection 3.5.2, ICC agrees on timeframes
with the CDS Risk Committee on remediation; ICC, in consultation with
the CDS Risk Committee, may determine that low priority issues do not
reflect a potential deficiency; the ROO and CRO (or designee) present
the independent periodic review report to the CDS Risk Committee for
acceptance; and ICC consults with the CDS Risk Committee regarding
closure of items.
ICC also proposes to incorporate references to a recently
established committee and working group. In amended Section 2.4, ICC
would specify that the Model Inventory includes the date the Board Risk
Committee recommended Board approval. Under amended Subsection 3.2.1,
the Board would approve the final methodology for a Model Change after
review and recommendation by the Board Risk Committee, and ICC would
obtain approval from the Board after review by the Board Risk Committee
with respect to changes to certain elements of OM&V. Additionally,
under amended Subsection 3.2.1, Model Changes that rise to a certain
level of materiality are subject to peer review through ICC's Risk
Advisory Working Group. The proposed changes are intended to
memorialize the roles of the Board Risk Committee and Risk Advisory
Working Group with respect to model validation governance.\10\
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\10\ The Board Risk Committee is tasked with assisting the Board
in fulfilling its oversight responsibilities with respect to the
risk management of ICC. See supra note 4. The Risk Advisory Working
Group reviews matters that could materially affect the risk profile
of ICC. See Securities Exchange Act Release No. 101382 (Oct. 18,
2024), 89 FR 84979 (Oct. 24, 2024) (File No. SR-ICC-2024-009).
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Treasury Operations Policies and Procedures
ICC proposes clarifications and clean-up changes to the Treasury
Operations Policy, including clarifying its applicability to the CDS
Clearing Service, updating references to existing committees, and
updating a reporting line. Such changes are intended to reflect current
practices. ICC proposes to re-title the Treasury Operations Policy from
``ICE Clear Credit LLC Treasury Operations Policies & Procedures'' to
``ICE Clear Credit LLC CDS Clearing Service Treasury Operations
Policies & Procedures'' to clarify its applicability to the CDS
Clearing Service. Similarly, ICC proposes to amend Section I to specify
that the Treasury Operations Policy describes the policies and
procedures used to support the Treasury functions of the CDS Clearing
Service.
ICC proposes to amend Section II to update a reporting line. The
current language states that ICC's Treasury function is overseen by the
Treasury Director who reports to the ICC Chief Operating Officer
(``COO''). ICC proposes to remove reference to the COO, as the Treasury
Director currently reports directly to the ICC President.
ICC proposes additional changes to reference existing committees.
ICC proposes to amend Section X of the Treasury Operations Policy,
which contains the Revision History and sets out the governance process
applicable to the document's annual review. The proposed amendments
reflect that the Treasury Operations Policy is subject to review by
both the CDS Risk Committee and the Board Risk Committee at least
annually. The amendments add an express reference to the Board Risk
Committee and clarify that the existing reference to the ``Risk
Committee'' refers to the ``CDS Risk Committee''. ICC also proposes
changes to Appendix 1 of the Treasury Operations Policy to specify that
the CDS Risk Committee and the Board Risk Committee will review
proposed changes to the investment policy and make recommendations to
the Board. These revisions similarly add an express reference to the
Board Risk Committee and clarify that the existing reference to the
``Risk Committee'' refers to the ``CDS Risk Committee''. Such changes
are intended to reflect existing practices in line with the existing
responsibilities of such committees.\11\
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\11\ See supra note 4.
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(b) Statutory Basis
ICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \12\ and the regulations
thereunder applicable to it, including the applicable standards under
Rule 17ad-22.\13\ In particular, Section 17A(b)(3)(F) of the Act \14\
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. The proposed changes to the MVF and the
Treasury Operations Policy consist of clarification and clean-up
changes to reflect current practices. Such changes include clarifying
the applicability of these documents to the CDS Clearing Service,
updating references to existing committees and a working group, and
updating a reporting line. ICC believes that having policies and
procedures that clearly and accurately document its model validation
practices and Treasury operations are an important component to ICC's
risk management and support ICC's ability to maintain adequate
financial resources. The proposed rule change is therefore consistent
with the prompt and accurate clearing and settlement of the contracts
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, within the meaning of Section
17A(b)(3)(F) of the Act.\15\
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\12\ 15 U.S.C. 78q-1.
\13\ 17 CFR 240.17ad-22.
\14\ 15 U.S.C. 78q-1(b)(3)(F).
\15\ Id.
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The amendments would also satisfy relevant requirements of Rule
17ad-22.\16\ Rule 17ad-22(e)(2)(i) and (v) \17\ require 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
update references to existing committees and a working group, including
to clearly and transparently set out the responsibilities of the CDS
Risk Committee, Board Risk Committee, and Risk Advisory Working Group
with respect to model validation and Treasury operations. The proposed
revisions also update a reporting line. These governance arrangements
continue to be clear and transparent, such that information relating to
the assignment of responsibilities and the requisite involvement of
existing committees and working groups 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).\18\
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\16\ 17 CFR 240.17ad-22.
\17\ 17 CFR 240.17ad-22(e)(2)(i) and (v).
\18\ Id.
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Rule 17ad-22(e)(4)(vii) \19\ requires ICC to establish, implement,
maintain, and
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enforce written policies and procedures reasonably designed to
effectively identify, measure, monitor, and manage its credit exposures
to participants and those arising from its payment, clearing, and
settlement processes, including by performing a model validation for
its credit risk models not less than annually or more frequently as may
be contemplated by its risk management framework. Rule 17ad-
22(e)(6)(vii) \20\ requires ICC to establish, implement, maintain, and
enforce written policies and procedures reasonably designed to cover
its credit exposures to its participants by establishing a risk-based
margin system that, among other things, requires a model validation for
its margin system and related models to be performed not less than
annually, or more frequently as may be contemplated by its risk
management framework. Rule 17ad-22(e)(7)(vii) \21\ requires ICC to
establish, implement, maintain, and enforce written policies and
procedures reasonably designed to effectively measure, monitor, and
manage the liquidity risk that arises in or is borne by ICC, including
measuring, monitoring, and managing its settlement and funding flows on
an ongoing and timely basis, and its use of intraday liquidity by,
among other things, performing a model validation of its liquidity risk
models not less than annually or more frequently as may be contemplated
by its risk management framework. As described above, the proposed
amendments clarify the applicability of the MVF to the CDS Clearing
Service and update references to existing committees and a working
group. ICC believes that such changes continue to ensure that ICC
receives independent and effective model validations and that ICC
continues to perform model validations in accordance with applicable
regulations. Therefore, ICC believes the proposed rule change is
consistent with the requirements of Rule 17ad-22(e)(4)(vii),
(e)(6)(vii) and (e)(7)(vii).\22\
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\19\ 17 CFR 240.17ad-22(e)(4)(vii).
\20\ 17 CFR 240.17ad-22(e)(6)(vii).
\21\ 17 CFR 240.17ad-22(e)(7)(vii).
\22\ 17 CFR 240.17ad-22(e)(4)(vii), (e)(6)(vii) and (e)(7)(vii).
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(B) Clearing Agency's Statement on Burden on Competition
ICC does not believe the proposed amendments will have any impact,
or impose any burden, on competition not necessary or appropriate in
furtherance of the purposes of the Act. As discussed above, the
proposed rule change consists of clarification or clean-up changes to
the MVF and Treasury Operations Policy to reflect current practices.
The changes 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 will 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 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 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.
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(2).
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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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#1361667f763e707c7e7e767d6760536076703d747c65"><span class="__cf_email__" data-cfemail="b3c1c6dfd69ed0dcdeded6ddc7c0f3c0d6d09dd4dcc5">[email protected]</span></a>. Please include
File Number SR-ICC-2026-010 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-2026-010. 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 (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</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-2026-010 and should be submitted on
or before October 1, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-18397 Filed 9-9-26; 8:45 am]
BILLING CODE 8011-01-P
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