[Federal Register Volume 84, Number 167 (Wednesday, August 28, 2019)]
[Notices]
[Pages 45191-45196]
[FR Doc No: 2019-18480]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86729; File No. SR-ICC-2019-010]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing of Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice Relating to the ICC Clearing Rules

August 22, 2019.
    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
August 8, 2019, ICE Clear Credit LLC (``ICC'') 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 prepared 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, Security-Based Swap Submission, or Advance Notice

    The principal purpose of the proposed rule change is to make
changes to the ICC Clearing Rules (the ``ICC Rules'') to address the
treatment of certain investment losses, custodial losses and other non-
default losses.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change, Security-Based Swap Submission, or
Advance Notice

    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 is proposing amendments to its Rules to address the treatment
of certain investment losses, custodial losses and other non-default
losses (in each case, losses that do not arise from the default of a
clearing participant (a ``Participant'')).

I. Summary of Proposed Amendments

    The amendments would, among other matters:
     Define three exclusive categories of relevant losses: (1)
Investment losses, (2) custodial losses and (3) non-default losses,
     specify the ICC resources that will be applied to cover
each such category of losses,
     specify the responsibility of Participants, in appropriate
circumstances, to make contributions with respect to investment losses
and custodial losses, and
     address the treatment of recoveries by ICC with respect to
such losses.
    ICC proposes to make such changes effective after Commission
approval of the proposed rule change and after ICC is permitted to do
so under Commodity Futures Trading Commission (``CFTC'') regulation.\3\
The proposed amendments are described in more detail below.
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    \3\ As a derivatives clearing organization designated as
systemically important under Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, ICC submitted to the
CFTC, pursuant to CFTC Rule 40.10, as an advance notice of a
proposed rule change the amendments to the Rules discussed herein.
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II. Definitions of Loss Categories

    In Rule 102, new definitions of ``Investment Losses'' and ``Non-
Default Losses'' would be added, and the definition of ``Custodial
Losses'' would be revised.

Investment Losses

    Investment Losses would be defined as losses incurred or suffered
by ICC in connection with the default of the issuer of any investment
of Margin or General Guaranty Fund assets by ICC or the default of the
counterparty to any repurchase or reverse repurchase contract or
similar transaction used to invest or reinvest such Margin or General
Guaranty Fund assets. Investment Losses would also include other losses
with respect to such investments, including from a change in value due
to market movements. However, Investment Losses would not include
Custodial Losses (as discussed below) or losses resulting directly from
a failure by ICC to comply with its own investment policies.
    Certain other circumstances would not constitute Investment Losses.
For example, a negative yield or interest rate on an ICC investment
will not be an Investment Loss. If a Participant posts securities or
non-cash assets as Margin or General Guaranty Fund contributions, any
gain or loss in such assets will not be an Investment Loss for purposes
of the Rules.

Custodial Losses

    Under the revised Rules, Custodial Losses would be defined as
losses of Margin or General Guaranty Fund assets (including declines in
the value thereof) as a result of (1) the insolvency or failure of a
Custodian or (2) the embezzlement or theft of such assets by any person
(other than ICC or its employees or representatives). A Custodian for
this purpose would include a bank or trust company, central bank,
central securities depository or other third party settlement system
used by ICC for the deposit, holding, custody or transfer of cash or
securities. Custodial Losses would not include Investment Losses.

Non-Default Losses

    Non-Default Losses would be defined to cover losses incurred or
suffered by ICC that are neither Investment Losses nor Custodial Losses
and arise in connection with an event other than a Participant default.
The definition thus captures losses from general business or
operational risk that do not constitute custodial or investment losses.

III. Treatment of Losses

    The amendments set out in new Rule 811 (and related additional
definitions in Rule 102) describe the clearing house's approach to the
treatment of Non-Default Losses, Investment Losses and Custodial
Losses.

Non-Default Losses

    Under new Rule 811(b), Non-Default Losses would be met from
available ICC capital and other ICC assets (including available
retained earnings). Non-Default Losses would not be covered from ICC
contributions to default resources (the ICE Clear Credit Initial
Contribution, ICE Clear Credit Continuing Contribution or Additional
ICC Collateral Deposits). Non-Default Losses would not be allocated to
Participants, or otherwise covered using Margin, General Guaranty Fund
contributions or Assessment Contributions of Participants.

Investment Losses

    New Rules 811(c)-(e) would set out the treatment of Investment
Losses. Under Rule 811(c), in the case of an Investment Loss, ICC would
first apply to the loss any available Investment Loss Resources held by
ICC. Investment Loss Resources would be defined in Rule 102 to be $20
million of ICC's own assets designated by ICC as available to be
applied to Investment Losses. The ICC Board may modify the amount of
Investment Loss Resources from time to time, and that determination
would be risk-based in light of ICC's potential exposure to Investment
Losses.
    In the event the Investment Loss Resources were insufficient to
cover the Investment Loss (an ``Investment Loss Shortfall''), ICC would
have the right, under Rule 811(d), to allocate the Investment Loss
Shortfall to all Participants (including any Defaulting Participants).
In that case, each Participant would be obligated to make a
contribution (an ``Investment Loss Contribution''), based on its pro
rata share of the Investment Loss Shortfall, determined based on the
proportion of its aggregate Initial Margin (both house and customer)
and General Guaranty Fund contributions (its ``Participant IM/GF
Contribution'') as compared to the aggregate Participant IM/GF
Contributions for all Participants. Under Rule 811(e), the maximum
contribution of a Participant for an Investment Loss Contribution in
respect of any event giving rise to an Investment Loss may not exceed
its Participant IM/GF Contribution. Investment Loss Contributions could
only be applied to Investment Loss Shortfalls (and not Custodial Loss
Shortfalls).

Custodial Losses

    New Rules 811(f)-(h) would set out the treatment of Custodial
Losses. Similarly to the treatment of Investment

Losses, under Rule 811(f), in the case of a Custodial Loss, ICC would
first apply to the loss any available Custodial Loss Resources held by
ICC. Custodial Loss Resources would be defined to be $32 million of
ICC's own assets designated by ICC as available to be applied to
Custodial Losses. As with Investment Loss Resources, the ICC Board may
modify the amount of Custodial Loss Resources from time to time, and
such determination would be risk-based in light of ICC's potential
exposure to Custodial Losses.
    In the event the Custodial Loss Resources were insufficient to
cover the Custodial Loss (a ``Custodial Loss Shortfall''), ICC would
have the right, under Rule 811(g), to allocate the Custodial Loss
Shortfall to all Participants (including any Defaulting Participants).
In that case, each Participant would be liable to make a contribution
(a ``Custodial Loss Contribution''), based on its pro rata share of the
Custodial Loss Shortfall, determined based on the proportion of its
Participant IM/GF Contribution to the aggregate Participant IM/GF
Contributions for all Participants. Under Rule 811(h), the maximum
contribution of a Participant for a Custodial Loss Contribution in
respect of any event giving rise to an Investment Loss may not exceed
its Participant IM/GF Contribution. Custodial Loss Contributions could
only be applied to Custodial Loss Shortfalls (and not Investment Loss
Shortfalls).
    Notwithstanding the foregoing, in the event of a Custodial Loss
where the Custodian is a central bank, ICC is not obligated to apply
Custodial Loss Resources, and the entire Custodial Loss would
constitute a Custodial Loss Shortfall subject to allocation to
Participants as described above.

IV. Allocation of Recoveries

    The amendments would address any recoveries that ICC is able to
obtain in respect of an Investment Loss or Custodial Loss after
Investment Loss Contributions or Custodial Loss Contributions
(collectively, ``Loss Contributions'') have been made. Rule 811(l)
would provide a ``reverse waterfall'' for allocation of such
recoveries, after deduction of expenses of ICC, to the parties that
bore the loss (whether ICC, Participants or both) in the reverse order
from which they were initially applied. The amendments would also set
out ICC's obligations to seek recoveries in respect of Investment
Losses and Custodial Losses, generally using the same degree of care as
it exercises with respect to its own assets that are not subject to
allocation under Rule 811.

V. Additional Provisions

    Rule 811(u) would contain a general disclaimer by ICC of losses
resulting from the holding, deposit, custody, transfer or investment of
Margin, General Guaranty Fund contributions and Assessment
Contributions, except as otherwise provided in Rule 811, and provided
that Rule 811(u) will not limit any liability of ICC for its own gross
negligence or willful misconduct. Rule 406 would also be amended to
remove an existing disclaimer for custodial losses, which would be
superseded by the new provisions.
    New Rule 402(k) would address investment of cash Initial Margin
provided by a Participant in respect of its client origin account. The
Participant would be required to instruct ICC whether or not ICC should
invest such Initial Margin. If instructed to invest, ICC would invest
the cash in accordance with its Rules and investment policies
procedures and applicable law. If instructed not to invest, ICC would
hold the cash in a deposit account with a Custodian in accordance with
ICC's policies and procedures. If a Participant does not provide an
instruction, (1) for US dollar cash, the Participant would be deemed to
have instructed ICC not to invest such cash, and (2) for cash in other
currencies, the Participant would be deemed to have instructed ICC to
invest such cash.
    Rule 811 would also address certain procedures for notices to
Participants of the use of Investment Loss Resources and Custodial Loss
Resources and of required Loss Contributions in respect of Investment
Losses and Custodial Losses. The Rule would also provide for timing and
manner of collection of Loss Contributions (including through offset
against obligations of ICC to return margin or other assets), and for
currency conversions as necessary. The Rule would clarify that the
requirement to make Loss Contributions does not reduce or otherwise
affect other obligations of a Participant to make payments or
deliveries to ICC under the Rules, or otherwise limit ICC's netting,
setoff and other rights under the Rules. In particular, obligations to
make Loss Contributions would be separate from any obligation to make
an Assessment Contribution, and the limitations on Assessments under
the Rules would not apply to liabilities for Loss Contributions. Use of
the Loss Contribution procedures under Rule 811 would also not be
deemed to constitute an ICE Clear Credit Default under the Rules.
    ICC would be required to disclose to Participants the amount of
Custodial Loss Resources and Investment Loss Resources, and to notify
Participants in advance of any changes in such amounts. If such loss
resources are applied as a result of a loss event, any replenishment of
such resources by ICC would not reduce the amount of any Custodian Loss
Shortfall or Investment Loss Shortfall (or resulting Loss
Contributions) for that loss event. ICC's liability for Custodial
Losses or Investment Losses would not exceed the amount of designated
Custodial Loss Resources or Investment Loss Resources, as applicable,
from time to time.
(b) Statutory Basis
    ICC believes that the proposed rule change is consistent with the
requirements of Section 17A of the Act \4\ and the regulations
thereunder applicable to it, including the applicable standards under
Rule 17Ad-22.\5\ In particular, Section 17A(b)(3)(F) of the Act \6\
requires that the rule change be consistent with the prompt and
accurate clearance and settlement of securities transactions, and to
the extent applicable, derivative 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.
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    \4\ 15 U.S.C. 78q-1.
    \5\ 17 CFR 240.17Ad-22.
    \6\ 15 U.S.C. 78q-1(b)(3)(F).
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    As discussed herein, the proposed rule change is principally
designed to address the risks posed to ICC by a significant loss event
not resulting from a default by one or more Participants. These events
may include investment losses and custodial losses with respect to
margin and General Guaranty Fund contributions, as well as other losses
resulting from general business risk, operational risk or other non-
default scenarios. ICC, like all clearing organizations, faces the risk
that such a loss event could affect its ability to continue orderly
clearing operations or otherwise affect its viability as a going
concern. The amendments are thus intended to enhance the ability of ICC
to manage the risk of certain losses that do not arise from Participant
default or defaults. The amendments provide a mechanism for fully
allocating Investment Losses and Custodial Losses, first to resources
provided by ICC in the first instance and thereafter to Participants.
The amendments also clarify the responsibility of ICC for Non-

Default Losses (and clarify that Participants are not responsible for
such losses). The amendments thus enhance ICC's ability to address
general business risk, operational risk and other risks that may
otherwise threaten the viability of the clearing house as a going
concern. The amendments also enhance the ability of ICC to manage
custody and investment risk and settlement bank risk in the remote
circumstances where its ordinary course procedures are insufficient and
a Custodian, investment counterparty or settlement bank fails. Overall,
the amendments will strengthen the ability of the clearing house to
manage the risks of, and withstand and/or recover from, significant
non-default loss events.
    The amendments also more clearly allocate certain losses as among
ICC and Participants. ICE Clear Credit believes that the amendments
also reflect the legitimate interests of clearing participants,
customers and other stakeholders. The amendments are designed to plan
for remote and unprecedented, but potentially extreme, types of loss
event, including Investment Losses, Custodial Losses and Non-Default
Losses. In particular, Investment Losses and Custodial Losses, to the
extent they exceed clearing house resources dedicated for such
purposes, will necessarily and adversely affect some or all
Participants, customers or other stakeholders. ICE Clear Credit
believes that the amendments take a balanced approach that distributes
potential losses to both ICC and Participants. ICE Clear Credit also
believes that the amendments further the interests of Participants in
having greater certainty as to the consequences of such losses, their
potential liability for them and the resources that would be available
to support clearing operations, to allow stakeholders to evaluate more
fully the risks and benefits of clearing.
    In light of discussions with Participants and others, ICE Clear
Credit believes that the amendments provide an appropriate and
equitable method to allocate the loss from an extreme non-default loss
scenario. ICE Clear Credit further believes that the approach taken
will facilitate the ability of the clearing house to allocate such
losses so that it can continue clearing operations. The amendments
therefore further the prompt and accurate clearance and settlement of
cleared transactions. In so doing, in light of the importance of
clearing houses to the financial markets they serve, the policy in
favor of clearing of financial transactions as set out in the Dodd-
Frank Wall Street Reform and Consumer Protection Act, and the potential
consequences of a clearing house failure, the amendments will support
the stability of the broader financial system and the public interest.
Accordingly, in ICC's view, the amendments are 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.\7\
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    \7\ Id.
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    In addition to the Act, the amendments are intended to satisfy the
requirements of CFTC Rule 39.39,\8\ applicable to ICC as a derivatives
clearing organization designated as systemically important under Title
VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act,
that ICC have rules to facilitate recovery or orderly wind-down
necessitated by general business risk, operational risk or any other
risk that threatens its viability as a going concern. The amendments
are also intended to be consistent with relevant international
standards, including the Principles of Financial Market Infrastructure
developed by the Committee on Payments and Market Infrastructures
(CPMI) and the International Organization of Securities Commissions
(IOSCO).
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    \8\ 17 CFR 39.39.
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    The amendments will also satisfy the specific relevant requirements
of Rule 17Ad-22,\9\ as set forth in the following discussion.
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    \9\ 17 CFR 240.17Ad-22.
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    Rule 17Ad-22(b)(3) \10\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to maintain sufficient financial resources to withstand, at a
minimum, a default by the two CP families to which it has the largest
exposures in extreme but plausible market conditions. ICC does not
propose in these amendments to change the amount or composition of
financial resources required of Participants as Initial Margin or
contributions to the General Guaranty Fund. ICC is also not proposing
to change its own resources that it contributes to default resources.
Under the amendments, ICC would designate clearly that ICC's own
capital and other assets (other than its contributions to default
resources) are available to cover Non-Default Losses (and that
Participants are not responsible for such losses). In addition, ICC
would designate specific amounts of its own assets to serve as
Investment Loss Resources and Custodial Loss Resources, to provide
risk-based, ``first loss'' coverage of Investment Losses and Custodial
Losses incurred by ICC.
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    \10\ 17 CFR 240.17Ad-22(b)(3).
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    Specifically, ICC has selected the level of Investment Loss
Resources based on its assessment of its potential exposure to
investment losses under its investment policies and procedures, and the
ICC Board would periodically conduct a risk-based assessment of the
appropriate level of Investment Loss Resources. As an initial measure
of its potential exposure to investment losses, ICC has taken into
account components of the European Union capital requirements
applicable to central counterparties \11\ (even though such
requirements are not directly applicable to ICC), in particular the
capital requirements for credit, counterparty and market risks and
operational and legal risks. ICC would not be obligated under the
amended Rules to use this methodology, and could in the future
determine to adopt a different risk-based methodology based on its
experience with investment losses or other market or regulatory
developments.
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    \11\ Commission Delegated Regulation (EU) No 152/2013 of 19
December 2012 supplementing Regulation (EU) No 648/2012 of the
European Parliament and the Council with regard to regulatory
technical standards on the capital requirements for central
counterparties.
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    Under the amendments, with respect to Custodial Losses involving
Custodians other than a central bank, ICC would be responsible for
losses up to the amount of Custodial Loss Resources, which is
established under the proposed Rule amendments and will be subject to
risk-based adjustment by the ICC Board from time to time. As with the
Investment Loss Resources, ICC has determined the initial level of
Custodial Loss Resources taking into account components of the European
Union capital requirements applicable to central counterparties, in
particular the capital requirements for credit, counterparty and market
risks and operational and legal risks. ICC would not be obligated under
the amended Rules to use this methodology, and could in the future
determine to adopt a different risk-based methodology based on its
experience with custodial losses or other market or regulatory
developments.
    The amendments would also provide for allocation of Investment
Losses and Custodial Losses in excess of such resources to
Participants, who would be obligated to pay Loss Contributions to the
extent of such excess. With respect

to Investment Losses, ICC has designed its existing investment policies
and procedures such that investments are limited to instruments with
minimal credit, market and liquidity risks. An Investment Loss
resulting from an investment made in accordance with its policies and
procedures is ultimately outside the control of the clearing house.
Furthermore, as a regulatory matter ICC is not obligated to, and is not
commercially in a position to, guarantee investments against defaults
by an investment issuer or counterparty. As a result, in ICC's view, it
is appropriate for remote losses in excess of the Investment Loss
Resources to be borne by its Participants. Absent an ability to
allocate such losses to Participants, an extreme Investment Loss event,
beyond the resources of the clearing house, could result in clearing
house failure or interference with the clearing house's ability to
continue operations. Additionally, for Custodial Losses, ICC's existing
policies are intended to mitigate the risk of custodial failure through
appropriate selection and ongoing monitoring of Custodians and use of
central bank custody where practical. These procedures are designed to
permit the clearing house to hold assets in a manner that minimizes the
risk of loss or delay in the access of ICC to such assets. A Custodial
Loss from a custodial failure is ultimately outside the control of ICC.
ICC is not itself a depository but is rather an intermediary. ICC is
ultimately not in a position to backstop or guarantee performance by
third-party Custodians. If ICC were responsible for all Custodial
Losses in excess of the defined resources, a custodial failure could
lead to a clearing house failure or other interference with clearing
operations. As a result, ICC believes it is appropriate for the
Participants to share in Custodial Losses that exceed ICC's Custodial
Loss Resources as set out in the proposed Rules. With respect to
Custodial Losses arising from a central bank custodial failure, ICC
believes that such a scenario is extremely remote, and entirely outside
of its control. ICC also notes the preference among regulators and
Participants for the use of central bank custody. As a result, ICC
believes it is appropriate in that case that Participants fully bear
any such Custodial Losses.
    For Non-Default Losses, ICC would be solely responsible for
covering such losses through ICC capital and other ICC resources. In
light of the remote and unpredictable nature of such Non-Default
Losses, ICC does not believe allocation of such Non-Default Losses to
Participants is appropriate. ICC believes that its capital and other
resources at the clearing house are sufficient to permit it to cover
its expected operating expenses, consistent with regulatory
requirements.
    Under the amendments, losses in excess of the amount of Investment
Loss Resources or Custodial Loss Resources would be shared among
Participants, proportionally based on their respective aggregate
initial margin and guaranty fund contributions. ICC has determined that
the allocation of Investment Losses or Custodial Losses, as the case
may be, to Participants should be made proportionately based on the
relative Participant IM/GF Contributions. The approach mutualizes both
Investment Losses and Custodial Losses across all Participants, in
these remote loss scenarios where such losses exceed applicable ICC
resources allocated to such losses. Participants may be required to
make Loss Contributions that are independent of the particular mix of
cash and securities provided by the Participant as margin or guaranty
fund assets, or any investment elections made by the Participant with
respect to its customer origin account. Nonetheless, ICC believes that
the approach is appropriate in light of the remote nature of the
potential losses, the fact that Participant margin and guaranty fund
assets are invested and custodied collectively, and the practical and
operational considerations that would be required for an approach that
attempted to allocate losses based on a Participant's particular assets
and elections. In this regard, in ICC's view, individual elections by a
Participant with respect to its customer origin account are unlikely to
affect the overall risk of Investment Loss and Custodial Loss (and
indeed, investment elections by Participants will generally only shift
the balances between investment assets (subject to Investment Losses)
and custodial assets (subject to Custodial Losses)). Regardless of any
elections, the balance of investments, and the particular investments
made, may change on a daily (or more frequent) basis, as may the
balance of assets (and types of assets) held with any individual
Custodian, meaning that any attempt to allocate based on specific
Participant positions would have to be done on a real-time basis.
Furthermore, all Participant assets are held and invested on an
aggregate basis (such that investments cannot be allocated to
particular Participants), and all Participants receive a blended rate
of return from aggregate clearing house investment activity. As a
result, ICC does not believe it would be operationally feasible, or
beneficial to Participants, to attempt to allocate Investment or
Custodial Losses based on particular investment elections made or
assets maintained by individual Participants with the clearing house on
a real time basis. Instead, ICC believes it is more appropriate, in
light of these operational and other considerations, to allocate
Investment Losses and Custodial Losses, if any, to Participants based
on their respective aggregate amount of Margin and General Guaranty
Fund assets at the clearing house.
    As a result, the amendments clarify the resources available to
address Investment Losses, Custodial Losses and other losses not
resulting from Participant default. The provisions relating to
Investment and Custodial Losses also, in effect, provide protection
against the loss of the financial resources provided by Participants to
support the default waterfall. The amendments thus enhance the ability
of ICC to manage the risk of certain losses that do not arise from
Participant default or defaults, thereby ensuring that ICC continues to
maintain sufficient financial resources to withstand, at a minimum, a
default by the two CP families to which it has the largest exposures in
extreme but plausible market conditions, consistent with the
requirements of Rule 17Ad-22(b)(3).\12\
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    \12\ 17 CFR 240.17Ad-22(b)(3).
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    Rule 17Ad-22(d)(3) \13\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to hold assets in a manner that minimizes risk of loss or of
delay in its access to them and invest assets in instruments with
minimal credit, market, and liquidity risks. ICC's existing investment
policies and procedures provide for the investment of cash provided by
Participants as Margin or General Guaranty Fund contributions in
investments with minimal credit, market and liquidity risks. Similarly,
the policies provide for the use by ICC of custodians to hold cash and
securities in a manner designed to minimize the risk of loss or delay
in access to such assets. ICC does not propose to change such policies
and procedures. The amendments address the remote scenario where,
despite the protections under such procedures, there is a failure by an
investment issuer or counterparty or custodian. Such a circumstance
would be remote in ICC's view, and in any event, outside the control of
ICC. In such circumstances, the amendments would allocate the loss as
between ICC and Participants, with

ICC being responsible for a first loss position up to the amount of
defined resources (except in certain cases of a central bank failure)
and with Participants being responsible for the remaining loss, in
proportion to their margin and guaranty fund contributions. The
amendments would thus enhance the protection of funds and assets
provided to ICC as margin or guaranty fund contributions and are
therefore reasonably designed to meet the requirements of Rule 17Ad-
22(d)(3).\14\
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    \13\ 17 CFR 240.17Ad-22(d)(3).
    \14\ Id.
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    Rule 17Ad-22(d)(8) \15\ requires ICC to establish, implement,
maintain and enforce written policies and procedures reasonably
designed to have governance arrangements that are clear and transparent
to fulfill the public interest requirements in Section 17A of the Act
\16\ applicable to clearing agencies, to support the objectives of
owners and participants, and to promote the effectiveness of the
clearing agency's risk management procedures. ICE Clear Credit believes
the amendments discussed herein satisfy these requirements. The
amendments are designed to address extreme loss scenarios other than
those resulting from Participant default, and provide an orderly means
for recovery from such scenarios if necessary. The amendments set out
the responsibilities of the ICE Clear Credit Board in connection with
establishing the appropriate level of Investment Loss Resources and
Custodial Loss Resources provided by ICC. In taking such decisions, the
Rules, the ICC mission statement, and the relevant governance committee
charters will require the Board to take into consideration both the
interests of Participants, customers and other stakeholders and the
broader goal of providing safe and sound central counterparty services
to reduce systemic risk in an efficient and compliant manner,
consistent with the requirements of Rule 17Ad-22(d)(8).\17\
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    \15\ 17 CFR 240.17Ad-22(d)(8).
    \16\ 15 U.S.C. 78q-1.
    \17\ 17 CFR 240.17Ad-22(d)(8).
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    For the foregoing reasons, ICE Clear Credit believes that the
proposed rule change is consistent with the requirements of Section 17A
of the Act \18\ and the regulations thereunder applicable to it,
including the standards under Rule 17Ad-22.\19\
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    \18\ 15 U.S.C. 78q-1.
    \19\ 17 CFR 240.17Ad-22.
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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 changes to
the ICC Rules will apply uniformly across all market participants.
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, Security-Based Swap Submission, or Advance Notice 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, Security-Based
Swap Submission, or Advance Notice 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, security-based swap submission, or advance notice is consistent
with the Act. Comments may be submitted by any of the following
methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-ICC-2019-010 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-2019-010. 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 (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change, security-based
swap submission, or advance notice that are filed with the Commission,
and all written communications relating to the proposed rule change,
security-based swap submission, or advance notice between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549, on official
business days between the hours of 10 a.m. and 3 p.m. Copies of such
filings will also be available for inspection and copying at the
principal office of ICE Clear Credit and on ICE Clear Credit's website
at https://www.theice.com/clear-credit/regulation.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-ICC-2019-010 and should be
submitted on or before September 18, 2019.
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-18480 Filed 8-27-19; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 79, Number 82 (Tuesday, April 29, 2014)]
[Notices]
[Pages 23970-23971]
[FR Doc No: 2014-09662]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 485-065]

Georgia Power Company; Notice of Availability of Environmental
Assessment

    In accordance with the National Environmental Policy Act of 1969
(NEPA) and the Federal Energy Regulatory Commission's (Commission or
FERC) regulations, 18 CFR part 380, the Office of Energy Projects has
review Georgia Power Company's application for license for the
Bartletts Ferry Hydroelectric Project (FERC Project No. 485-065),
located on the Chattahoochee River, along the Georgia-Alabama border,
in Harris County Georgia, and Lee and Chambers counties, Alabama. The
Project does not occupy federal lands.
    Staff prepared an environmental assessment (EA), which analyzes the
potential environmental effects of relicensing the Project, and
concludes that relicensing the Project, with appropriate environmental
protective measures, would not constitute a major federal action that
would significantly affect the quality of the human environment.
    A copy of the EA is available for review at the Commission in the
Public Reference Room or may be viewed on the Commission's Web site at
http://www.ferc.gov, using the ``eLibrary'' link. Enter the docket
number, excluding the last three digits in the docket number field to
access the document. For assistance, contact FERC Online Support at
<EMAIL_ADDRESS>at<PHONE_NUMBER> (toll free), or 202-502-
8659 (TTY).
    You may also register online at http://ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances

related to this or other pending projects. For assistance, contact FERC
Online Support.
    Any comments should be filed within 30 days from the date of this
notice.
    The Commission strongly encourages electronic filing. Please file
comments using the Commission's eFiling system at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can submit brief comments up to
6,000 characters, without prior registration, using the eComment system
at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your
name and contact information at the end of your comments. For
assistance, please contact FERC Online Support.
    In lieu of electronic filing, please send a paper copy to:
Secretary, Federal Energy Regulatory Commission, 888 First Street NE.,
Washington, DC 20426. The first page of any filing should include
docket number P-485-065.
    For further information, contact Allan Creamer by phone at 202-502-
8365, or by email at<EMAIL_ADDRESS>
    Dated: April 22, 2014.
Kimberly D. Bose,
Secretary.
[FR Doc. 2014-09662 Filed 4-28-14; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 77, Number 221 (Thursday, November 15, 2012)]
[Notices]
[Page 68120]
[FR Doc No: 2012-27788]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-RCRA-2011-0280; FRL-9524-2]

Information Collection Request Submitted to OMB for Review and
Approval; Comment Request; 2013 Hazardous Waste Report, Notification of
Regulated Waste Activity, and Part A Hazardous Waste Permit Application
and Modification (Revision)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency has submitted an
information collection request (ICR), ``2013 Hazardous Waste Report,
Notification of Regulated Waste Activity, and Part A Hazardous Waste
Permit Application and Modification (Revision)''. (EPA ICR No. 0976.16,
OMB Control No. 2050-0024) to the Office of Management and Budget (OMB)
for review and approval in accordance with the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.). This is a proposed amendment of the ICR,
which is currently approved through December 31, 2014. Public comments
were previously requested via the Federal Register (77 FR 31005) on May
24, 2012 during a 60-day comment period. This notice allows for an
additional 30 days for public comments. A fuller description of the ICR
is given below, including its estimated burden and cost to the public.
An Agency may not conduct or sponsor and a person is not required to
respond to a collection of information unless it displays a currently
valid OMB control number.

DATES: Additional comments may be submitted on or before December 17,
2012.

ADDRESSES: Submit your comments, referencing Docket ID No. EPA-HQ-RCRA-
2011-0280, to (1) EPA, either online using www.regulations.gov (our
preferred method), or by email to<EMAIL_ADDRESS>or by mail to:
EPA Docket Center, Environmental Protection Agency, Mail Code 28221T,
1200 Pennsylvania Avenue NW., Washington, DC 20460; and (2) OMB via
email to<EMAIL_ADDRESS>Address comments to OMB Desk
Officer for EPA.

FOR FURTHER INFORMATION CONTACT: Peggy Vyas, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone
number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Supporting documents which explain in detail
the information that the EPA will be collecting are available in the
public docket for this ICR. The docket can be viewed online at
www.regulations.gov or in person at the EPA Docket Center, EPA West,
Room 3334, 1301 Constitution Ave. NW., Washington, DC. The telephone
number for the Docket Center is<PHONE_NUMBER>. For additional
information about EPA's public docket, visit http://www.epa.gov/dockets.
    Abstract: The Hazardous Waste Report Instructions and Forms booklet
is updated every two years, to comply with the statutory mandate that
EPA conduct a survey of hazardous waste generation at least every two
years. The report, known as the ``Biennial Report,'' has been conducted
since 1989, every odd-numbered year, known as the data collection year.
The even-numbered years are known as the reporting years. The ICR has
been renewed every data collection year, and the forms have been made
available to respondents at the beginning of the reporting year.
However, EPA is amending the current ICR this year so that the booklet
for the next cycle, the 2013 cycle, will be available at the beginning
of the data collection year. This change is in response to many
requests by States.
    The proposed changes to the 2013 booklet include: (1) Some
management method codes will be consolidated in order to ease
reporting, (2) the waste minimization codes will be revised in order to
assist filers with reporting their waste minimization activities, and
(3) editorial changes will be made to the description of some source
codes in order to improve clarity for filers.
    This amendment will not affect the Notification booklet or the Part
A Permit Application booklet, which are both part of this ICR.
    Form Numbers: 8700-13 A/B.
    Respondents/affected entities: Business or other for-profit as well
as State, Local, or Tribal governments.
    Respondent's obligation to respond: mandatory (RCRA sections 3002
and 3004).
    Estimated number of respondents: 56,672.
    Frequency of response: Biennially.
    Total estimated burden: 432,903 hours per year. Burden is defined
at 5 CFR 1320.03(b).
    Total estimated cost: $18,404,963 (per year), includes $18,153,496
annualized labor and $251,467 annualized capital or operation &
maintenance costs.
    Changes in the Estimates: There is a decrease of 7,341 hours in the
total estimated respondent burden compared with the ICR currently
approved by OMB. This decrease is due to changes in the waste
minimization data reported in Form GM (i.e., use of a revised set of
waste minimization codes for which the requirement to submit comments
is optional).

John Moses,
Director, Collection Strategies Division.
[FR Doc. 2012-27788 Filed 11-14-12; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 88, Number 41 (Thursday, March 2, 2023)]
[Rules and Regulations]
[Page 13018]
[FR Doc No: 2023-04010]

=======================================================================
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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Part 11

[Docket No. FDA-2019-N-0646]

Change of Address; Technical Amendment

AGENCY: Food and Drug Administration, HHS.

ACTION: Final rule; technical amendment.

-----------------------------------------------------------------------

SUMMARY: Before using an electronic signature in an electronic record
required by the Food and Drug Administration (FDA or Agency), a person
must submit a letter of non-repudiation to FDA. Letters of non-
repudiation are required to certify that a person's electronic
signatures are intended to be the legally binding equivalent of
traditional handwritten signatures. FDA is amending its regulations to
update the address for submission of a certification in paper form and
to provide an option for electronic submission. This amendment is to
ensure accuracy and clarity in the Agency's regulations. This technical
amendment is nonsubstantive.

DATES: This rule is effective March 2, 2023.

FOR FURTHER INFORMATION CONTACT: Elizabeth L. Kunkoski, Center for Drug
Evaluation and Research, Food and Drug Administration, 10903 New
Hampshire Ave., Bldg. 51, Rm. 3332, Silver Spring, MD 20993-0002,
[email protected],<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Before using an electronic signature in an
electronic record required by FDA, a person must submit a letter of
non-repudiation to FDA (Sec.  11.100(c) 21 CFR 11.100(c)). Letters of
non-repudiation are required under Sec.  11.100(c)(1) to certify that a
person's electronic signatures are intended to be the legally binding
equivalent of traditional handwritten signatures. FDA is amending its
regulations in 21 CFR part 11 to update the address for submission of a
certification in paper form and to provide an option for electronic
submission. The new addresses are as follows:
     For certification of electronic signatures for submissions
sent through FDA's Electronic Submissions Gateway Program, submit to:
[email protected]; or
     For certification of electronic signatures for submissions
not submitted through FDA's Electronic Submissions Gateway Program,
submit to: Jessica Bernhardt, Electronic Submissions Gateway, U.S. Food
and Drug Administration, 3WFN, Rm. 7C34, 12225 Wilkins Ave., Rockville,
MD 20852.
    Information on where to submit the certification is currently found
on FDA's web page on Letters of Non-Repudiation Agreement at https://www.fda.gov/industry/about-esg/appendix-g-letters-non-repudiation-agreement. This action is being taken to ensure accuracy and clarity in
the Agency's regulations.
    Publication of this document constitutes final action on these
changes under the Administrative Procedure Act (APA) (5 U.S.C. 553).
FDA has determined that notice and public comment are unnecessary
because this amendment makes only technical or non-substantive,
ministerial changes to reflect a change in electronic submission
capabilities and corrects the address for submission of a non-
repudiation letter. Such technical, non-substantive changes are
``routine determination[s], insignificant in nature and impact, and
inconsequential to the industry and to the public.'' (Mack Trucks, Inc.
v. EPA, 682 F.3d 87, 94 (D.C. Cir. 2012)) (quotation marks and citation
omitted). Accordingly, FDA for good cause finds that notice and public
procedure thereon are unnecessary for these changes in where and how
the certification is submitted.
    In addition, we find good cause for these amendments to become
effective on the date of publication of this action. The APA allows an
effective date of less than 30 days after publication as ``provided by
the agency for good cause found and published with the rule'' (5 U.S.C.
553(d)(3)). A delayed effective date is unnecessary in this case
because the amendments do not impose any new regulatory requirements on
affected parties. As a result, affected parties do not need time to
prepare before the rule takes effect. Therefore, we find good cause for
this correction to become effective on the date of publication of this
action.

List of Subjects in 21 CFR Part 11

    Computer technology, Reporting and recordkeeping requirements.

    Therefore, under the Federal Food, Drug, and Cosmetic Act and under
authority delegated to the Commissioner of Food and Drugs, 21 CFR part
11 is amended as follows:

PART 11--ELECTRONIC RECORDS; ELECTRONIC SIGNATURES

0
1. The authority citation for part 11 continues to read as follows:

    Authority: 21 U.S.C. 321-393; 42 U.S.C. 262.

0
2. In Sec.  11.100, revise paragraph (c)(1) to read as follows:

Sec.  11.100  General requirements.

* * * * *
    (c) * * *
    (1) The certification shall be signed with a traditional
handwritten signature and submitted in electronic or paper form.
Information on where to submit the certification can be found on FDA's
web page on Letters of Non-Repudiation Agreement.
* * * * *

    Dated: February 22, 2023.
Lauren K. Roth,
Associate Commissioner for Policy.
[FR Doc. 2023-04010 Filed 3-1-23; 8:45 am]
BILLING CODE 4164-01-P


[Federal Register: October 17, 2005 (Volume 70, Number 199)]
[Notices]
[Page 60315-60316]
[DOCID:fr17oc05-54]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER05-1316-000]

Kumeyaay Wind LLC; Notice of Issuance of Order

October 6, 2005.
    Kumeyaay Wind LLC (Kumeyaay) filed an application for market-based
rate authority, with an accompanying rate tariff. The proposed rate
tariff provides for the sales of capacity, energy, and ancillary
services at market-

based rates and for the reassignment of transmission capacity. Kumeyaay
also requested waiver of various Commission regulations. In particular,
Kumeyaay requested that the Commission grant blanket approval under 18
CFR part 34 of all future issuances of securities and assumptions of
liability by Kumeyaay.
    On October 5, 2005, pursuant to delegated authority, the Director,
Division of Tariffs and Market Development--South, granted the request
for blanket approval under part 34. The Director's order also stated
that the Commission would publish a separate notice in the Federal
Register establishing a period of time for the filing of protests.
Accordingly, any person desiring to be heard or to protest the blanket
approval of issuances of securities or assumptions of liability by
Kumeyaay should file a motion to intervene or protest with the Federal
Energy Regulatory Commission, 888 First Street, NE., Washington, DC
20426, in accordance with Rules 211 and 214 of the Commission's Rules
of Practice and Procedure. 18 CFR 385.211, 385.214 (2004).
    Notice is hereby given that the deadline for filing motions to
intervene or protests is November 4, 2005.
    Absent a request to be heard in opposition by the deadline above,
Kumeyaay is authorized to issue securities and assume obligations or
liabilities as a guarantor, indorser, surety, or otherwise in respect
of any security of another person; provided that such issuance or
assumption is for some lawful object within the corporate purposes of
Kumeyaay, compatible with the public interest, and is reasonably
necessary or appropriate for such purposes.
    The Commission reserves the right to require a further showing that
neither public nor private interests will be adversely affected by
continued approval of Nuclear Kumeyaay's issuances of securities or
assumptions of liability. Docket No. ER05-1316-000.
    Copies of the full text of the Director's Order are available from
the Commission's Public Reference Room, 888 First Street, NE.,
Washington, DC 20426. The Order may also be viewed on the Commission's
Web site at http://www.ferc.gov, using the eLibrary link. Enter the

docket number excluding the last three digits in the docket number
filed to access the document. Comments, protests, and interventions may
be filed electronically via the Internet in lieu of paper. See, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.

Magalie R. Salas,
Secretary.
[FR Doc. E5-5659 Filed 10-14-05; 8:45 am]

BILLING CODE 6717-01-P