Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to the Procedures for Monitoring Compliance With the Eligible Secondary Market Transaction Submission Requirements

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<title>Federal Register, Volume 91 Issue 216 (Tuesday, November 10, 2026)</title>
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[Federal Register Volume 91, Number 216 (Tuesday, November 10, 2026)]
[Notices]
[Pages 72601-72603]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22850]



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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106833; File No. SR-ICC-2026-014]


Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of 
Filing of Proposed Rule Change Relating to the Procedures for 
Monitoring Compliance With the Eligible Secondary Market Transaction 
Submission Requirements

November 5, 2026.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Securities Exchange Act'' or the ``Act''), 15 U.S.C. 78s(b)(1) and 
Rule 19b-4 thereunder, 17 CFR 240.19b-4, notice is hereby given that on 
November 02, 2026, ICE Clear Credit LLC (``ICC'' or ``ICE Clear 
Credit'') filed with the Securities and Exchange Commission (``SEC'' or 
the ``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 from interested persons.

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 adopt the 
ICC Procedures for Monitoring Compliance with the Eligible Secondary 
Market Transaction Submission Requirements (the ``ESMT Procedures''). 
The ESMT Procedures supplement existing provisions of the ICC U.S. 
Treasury (``UST'' or ``Treasury'') Clearing Rules \1\ (the ``Treasury 
Rules'').
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    \1\ ICC's Treasury Clearing Rules are available on ICC's public 
website: <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

(a) Purpose
    ICC proposes to adopt the ESMT Procedures, which formalize ICC's 
procedures for monitoring compliance by Treasury Participants (``TPs'') 
with the requirement to submit Eligible Secondary Market Transactions 
\2\ for clearing, consistent with Securities and Exchange Commission 
(``SEC'' or the ``Commission'') Rule 17ad-22(e)(18)(iv)(A) and (B).\3\ 
The ESMT Procedures supplement existing provisions of the Treasury 
Rules, including Chapter 2--Membership, Chapter 3--Clearing of 
Contracts and Chapter 7--Disciplinary Rules. The ESMT Procedures 
establish how ICC will monitor, review and enforce TP compliance with 
Treasury Rule 303. ICC intends to adopt these ESMT Procedures to 
support the clearing of UST securities through its new Treasury 
clearing service.\4\ ICC proposes to make such changes effective 
following Commission approval of the proposed rule change.
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    \2\ Eligible Secondary Market Transaction has the meaning 
specified in SEC Rule 17ad-22(a) (as interpreted by the SEC and its 
staff) from time to time. See Treasury Rule 303(a).
    \3\ 17 CFR 240.17ad-22(e)(18)(iv)(A) and (B).
    \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 Commission to register as a 
clearing agency to provide central counterparty services for 
transactions involving UST 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 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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    The ESMT Procedures consist of three sections. Section 1 specifies 
that capitalized terms used but not defined in the ESMT Procedures have 
the meanings specified in the Treasury Rules, unless otherwise 
indicated.
    Section 2 sets out the requirement to submit trades for clearing. 
As specified in Section 2.1, Treasury Rule 303 requires each TP to 
submit to ICC or another SEC-registered covered clearing agency for 
clearing, promptly after execution, all trades in contracts that are 
eligible for clearing at ICC and are Eligible Secondary Market 
Transactions to which it is a counterparty. ICC will publish on its 
website all trades in contracts that are eligible for clearing at ICC 
pursuant to Chapter 30 of the Treasury Rules. A TP may satisfy this 
requirement by submitting the trade to ICC or to another SEC-registered 
covered clearing agency. ICC believes the ESMT Procedures that describe 
how compliance will be monitored provide TPs with transparency and give 
ICC a clear, documented process for carrying out its monitoring 
responsibility.
    Pursuant to Section 2.2, the ESMT Procedures require TPs to 
promptly notify ICC in writing within 30 calendar days from the date on 
which the TP learns that it is no longer in compliance with Treasury 
Rule 303. The notice must include all relevant facts known at the time, 
such as the approximate duration of the non-compliance, the time at 
which the non-compliance was remediated or the anticipated remediation 
steps and expected timing, and the name and contact information of the 
TP staff member overseeing the matter.
    In addition, Section 2.2 of the ESMT Procedures require each TP to 
annually attest to compliance with Treasury Rule 303 (``Annual 
Attestation''). ICC will announce the due date to TPs, with the due 
date being no less than 30 calendar days after the announcement. A 
senior officer authorized to sign for the TP must sign the Annual 
Attestation and confirm the TP has effective controls in place to 
ensure compliance with Treasury Rule 303. In the Annual Attestation, 
the attesting officer must state that they have read and understand the 
trade submission requirements set forth in the Treasury Rules and in 
the ESMT Procedures. The attesting officer must also state that the TP 
has established, maintains and enforces policies, procedures or other 
controls reasonably designed to ensure ongoing compliance with Treasury 
Rule 303, and that those controls are reasonably designed to promptly 
identify and remediate any non-compliance. Finally, the attesting 
officer must state that the TP complied with Treasury Rule 303 during 
the 12 months before the date of the attestation.
    In Section 2.2, the ESMT Procedures further reserve ICC's right to 
conduct periodic reviews of a TP's submission of trades that are 
eligible for clearing and are Eligible Secondary Market Transactions. 
These reviews may cover transactions submitted to ICC as well as 
submissions to other covered clearing agencies, including rejected 
submissions and attempts to re-submit transactions. ICC may ask a TP 
for information and supporting documentation showing how it resolved 
any rejections or re-submissions in order to comply with Treasury Rule 
303. ICC may also ask for information about

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timeliness of submission for clearing following execution of the 
transaction.
    Finally, the ESMT Procedures describe how ICC will address possible 
violations of Treasury Rule 303 in Section 3. Under its authority in 
Treasury Rule 701(a), ICC may initiate and conduct investigations into 
alleged violations of a TP's obligation to comply with Treasury Rule 
303, and ICC staff will conduct those investigations in accordance with 
Treasury Rule 702. If ICC staff believes a violation may have occurred, 
staff will consider a non-exclusive list of mitigating factors when 
exercising discretion to issue a warning letter, to negotiate the terms 
of a written settlement agreement (including the amount of fines) or to 
make penalty recommendations to the ICC Business Conduct Committee or 
Review Subcommittee of the Business Conduct Committee.\5\ Those factors 
include whether the TP self-reported the non-compliance, any history of 
the TP violating Treasury Rule 303, remediation efforts by the TP, the 
extent of the TP's cooperation with an ICC investigation, whether the 
possible violation involved single or multiple transactions, and the 
period over which any multiple violations occurred.
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    \5\ The Business Conduct Committee is responsible for responding 
to, and overseeing the investigation of suspected Treasury Rule 
violations. The Business Conduct Committee will, from time to time 
as it deems appropriate, assign a subcommittee of three members (the 
``Review Subcommittee''), to receive and review written 
investigation reports concerning possible violations and written 
settlement agreements. See Treasury Rule 703.
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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 \6\ and the regulations 
thereunder applicable to it, including the applicable standards under 
Rule 17ad-22.\7\ In particular, Section 17A(b)(3)(F) of the Act \8\ 
requires, among other things, that the rules of a clearing agency be 
designed to promote the prompt and accurate clearance and settlement of 
securities transactions, to assure the safeguarding of securities and 
funds in the custody or control of ICC or for which it is responsible, 
and, in general, to protect investors and the public interest. As 
described above, the proposed ESMT Procedures are designed to support 
the prompt and accurate clearance and settlement of securities 
transactions, consistent with Section 17A(b)(3)(F) of the Act,\9\ by 
supporting TP compliance with the Eligible Secondary Market Transaction 
submission requirements. As described above, ICC believes the ESMT 
Procedures that describe how compliance will be monitored provide TPs 
with transparency and give ICC a clear, documented process for carrying 
out its monitoring responsibility. ICC further believes that having 
written policies and procedures that clearly document how it will 
monitor compliance with the Eligible Secondary Market Transaction 
submission requirements supports the prompt and accurate clearance and 
settlement of securities transactions, and protects investors and the 
public interest, consistent with Section 17A(b)(3)(F) of the Act.\10\
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    \6\ 15 U.S.C. 78q-1.
    \7\ 17 CFR 240.17ad-22.
    \8\ 15 U.S.C. 78q-1(b)(3)(F).
    \9\ Id.
    \10\ Id.
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    In addition, Section 17A(b)(3)(G) of the Act \11\ requires that the 
rules of the clearing agency provide that its participants shall be 
appropriately disciplined for violation of any provision of the rules 
of the clearing agency, including by fine or other fitting sanction. 
The proposed changes are designed to ensure that TPs are appropriately 
disciplined for violations of Treasury Rule 303. As described above, 
under its authority in Treasury Rule 701(a), ICC may initiate and 
conduct investigations into alleged violations of a TP's obligation to 
comply with Treasury Rule 303, and ICC staff will conduct those 
investigations in accordance with Treasury Rule 702. If ICC staff 
believes a violation may have occurred, staff will consider a non-
exclusive list of mitigating factors when exercising discretion to 
issue a warning letter, to negotiate the terms of a written settlement 
agreement (including the amount of fines) or to make recommendations to 
the ICC Business Conduct Committee or Review Subcommittee of the 
Business Conduct Committee.\12\ The proposed ESMT Procedures are thus 
consistent with the requirements of Section 17A(b)(3)(G) of the 
Act.\13\
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    \11\ 15 U.S.C. 78q-1(b)(3)(G).
    \12\ See supra note 5.
    \13\ See supra note 11.
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    Rule 17ad-22(e)(18)(iv)(A) \14\ requires a covered clearing agency 
that provides central counterparty services for U.S. Treasury 
securities to establish, implement, maintain and enforce written 
policies and procedures reasonably designed to have objective, risk-
based and publicly disclosed criteria for participation that require 
each direct participant to submit for clearance and settlement all 
eligible secondary market transactions to which it is a counterparty. 
As described above, the proposed ESMT Procedures require each TP to 
submit to ICC (or another SEC registered covered clearing agency) for 
clearing all trades in contracts that are eligible for clearing at ICC 
and are Eligible Secondary Market Transactions to which it is a 
counterparty, consistent with Treasury Rule 303, and to confirm 
annually that it has complied with that requirement and maintains 
policies, procedures, or controls reasonably designed to ensure 
continued compliance. ICC therefore believes the proposed ESMT 
Procedures are consistent with Rule 17ad-22(e)(18)(iv)(A).\15\
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    \14\ 17 CFR 240.17ad-22(e)(18)(iv)(A).
    \15\ Id.
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    Rule 17ad-22(e)(18)(iv)(B) \16\ requires a covered clearing agency 
that provides central counterparty services for U.S. Treasury 
securities to establish, implement, maintain and enforce written 
policies and procedures reasonably designed to identify and monitor its 
direct participants' submission of those transactions for clearing, 
including how the covered clearing agency would address a failure to 
submit transactions in accordance with the relevant requirements. As 
described above, the proposed ESMT Procedures establish how ICC will 
identify and monitor TP compliance with Treasury Rule 303. Under the 
proposed ESMT Procedures, TPs must notify ICC in writing within 30 
calendar days of learning that it is no longer in compliance, TPs must 
provide an Annual Attestation signed by a senior officer, and ICC may 
conduct periodic reviews of TP submissions, including rejected 
submissions, re-submissions and timeliness of submission following 
execution. The proposed ESMT Procedures also describe how ICC will 
address a failure to submit transactions in accordance with Treasury 
Rule 303. ICC may investigate possible violations pursuant to Treasury 
Rules 701(a) and 702, and ICC staff will consider identified mitigating 
factors in determining whether to issue a warning letter, negotiate a 
written settlement agreement or make penalty recommendations. ICC 
therefore believes the proposed ESMT Procedures are consistent with 
Rule 17ad-22(e)(18)(iv)(B).\17\
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    \16\ 17 CFR 240.17ad-22(e)(18)(iv)(B).
    \17\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    ICC does not believe the proposed rule change will have any impact, 
or impose any burden, on competition not necessary or appropriate in 
furtherance

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of the purposes of the Act. The proposed ESMT Procedures will apply 
uniformly across all market participants. ICC does not believe the 
proposed rule change would adversely 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 received. ICC will notify the Commission of any written 
comments received by ICC.

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/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e"><span class="__cf_email__" data-cfemail="3341465f561e505c5e5e565d4740734056501d545c45">[email&#160;protected]</span></a>. Please include 
File Number SR-ICC-2026-014 on the subject line.

Paper Comments

    <bullet> 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-2026-014. 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="https://www.sec.gov/rules/sro.shtml">https://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-2026-014 and should 
be submitted on or before December 1, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22850 Filed 11-9-26; 8:45 am]
BILLING CODE 8011-01-P


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