[Federal Register Volume 79, Number 99 (Thursday, May 22, 2014)]
[Notices]
[Pages 29476-29478]
[FR Doc No: 2014-11885]

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DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

Requirements for the Secretary of Transportation's Recognizing
Aviation and Aerospace Innovation in Science and Engineering Awards;
Amendments

AGENCY: Office of the Secretary of Transportation, U.S. Department of
Transportation.

ACTION: Reissuance of the announcement of Requirements for the
Secretary of Transportation's RAISE (Recognizing Aviation and Aerospace
Innovation in Science and Engineering) Awards. This notice is identical
to the April 7, 2014 notice announcing the 2014 competition (located at
79 FR 19167) except for a change in the date for submitting expressions
of interest. Department of Transportation has decided that interested
students could benefit from more time to develop proposals for the 2014
competition. Thus, we are extending the date for submitting early
expressions of interest until September 2, 2014. Students are strongly
encouraged to submit outlines of their project proposals, as described
below, by that date. The deadline for final submissions remains October
31, 2014.

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    Authority:  15 U.S.C. 3719 (America COMPETES Act).

    Award Approving Official: Anthony Foxx, Secretary of
Transportation.
SUMMARY: Pursuant to a recommendation by the Future of Aviation
Advisory Committee, the Secretary of Transportation is announcing the
third-annual competition to recognize students with the ability to
demonstrate unique, innovative thinking in aerospace science and
engineering. In its third year, the Secretary has decided to create two
divisions within the award: a high school division and a university
division (both undergraduate and graduate). The Secretary of
Transportation intends to use the awards to incentivize students at
high schools and universities to think creatively in developing
innovative solutions to aviation and aerospace issues, and to share
those innovations with the broader community.

DATES: Effective on April 01, 2014 to October 31, 2014.

FOR FURTHER INFORMATION CONTACT: Patricia Watts, Ph.D., Federal
Aviation Administration,<PHONE_NUMBER><EMAIL_ADDRESS>or
James Brough, Federal Aviation Administration,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Subject of Challenge Competition: The
Secretary's RAISE (Recognizing Aviation & Aerospace Innovation in
Science and Engineering) Award will recognize innovative scientific and
engineering achievements that will have a significant impact on the
future of aerospace or aviation. Following an open solicitation by the
United States Department of Transportation (``the Department''), the
Secretary of Transportation (``the Secretary'') will designate an Award
Review Board Chair, who will submit nominations to the Secretary for
final consideration. The rules for this competition will be available
at http://www.challenge.gov.

Eligibility

    To be eligible to participate in the Secretary's RAISE Award
competition, students must be U.S. citizens or permanent residents. For
the high school division, the students must have been enrolled in at
least one semester (or quarterly equivalent) at a U.S. high school (or
equivalent approved home school program) in 2014. For the University
division, the student must have been enrolled in a U.S.-based college
or university for at least one semester (or quarterly equivalent) in
2014. Students may participate and be recognized as individuals or in
teams. Each member of a team must meet the eligibility criteria. An
individual may join more than one team. There is no charge to enter the
competition.
    The following additional rules apply:
    1. Candidates shall submit a project in the competition under the
rules promulgated by the Department;
    2. Candidates shall agree to execute indemnifications and waivers
of claims against the Federal government as provided in this Notice;
    3. Candidates may not be a Federal entity or Federal employee
acting within the scope of employment;
    4. Candidates may not be an employee of the Department, including
but not limited to the Federal Aviation Administration, or the Research
and Innovative Technology Administration;
    5. Candidates shall not be deemed ineligible because an individual
used Federal facilities or consulted with Federal employees during a
competition, if the facilities and employees are made available to all
individuals participating in the competition on an equitable basis;
    6. The competition is subject to all applicable Federal laws and
regulations. Participation constitutes the Candidates' full and
unconditional agreement to these rules and to the Secretary's
decisions, which are final and binding in all matters related to this
competition;
    7. Submissions which in the Secretary's sole discretion are
determined to be substantially similar to a prior submitted entry may
be disqualified;
    8. Submissions must be original, be the work of the Candidates, and
must not violate the rights of other parties. All submissions remain
the property of the applicants. Each Candidate represents and warrants
that he, she, or the team, is the sole author and owner of the
submission, that the submission is wholly original, that it does not
infringe any copyright or any other rights of any third party of which
the Candidate is aware, and, if submitted in electronic form, is free
of malware;
    9. By submitting an entry in this contest, contestants and entrants
agree to assume any and all risks and waive any claims against the
Federal Government and its related entities (except in the case of
willful misconduct) for any injury, death, damage, or loss of property,
revenue or profits, whether direct, indirect, or consequential, arising
from their participation in this contest, whether the injury, death,
damage, or loss arises through negligence of otherwise. Provided,
however, that by registering or submitting an entry, contestants and
entrants do not waive claims against the Department arising out of the
unauthorized use or disclosure by the agency of the intellectual
property, trade secrets, or confidential information of the entrant;
    10. The Secretary and the Secretary's designees have the right to
request access to supporting materials from the Candidates;
    11. The submissions cannot have been submitted in the same or
substantially

similar form in any previous Federally-sponsored promotion or
Federally-sponsored contest, of any kind;
    12. Each Candidate grants to the Department, as well as other
Federal agencies with which it partners, the right to use names,
likeness, application materials, photographs, voices, opinions, and/or
hometown and state for the Department's promotional purposes in any
media, in perpetuity, worldwide, without further payment or
consideration; and
    13. The Secretary collects personal information from Candidates
when they enter this competition. The information collected is subject
to the ChallengePost privacy policy located at http://www.challengepost.com/privacy.

Expression of Interest

    While not required, students are strongly encouraged to send brief
expressions of interest to the Department to be considered for an
award. The expressions of interest should be sent by September 2, 2014
to the contact shown below and should include the following elements:
(1) Name of Candidate(s); (2) Name of educational institution(s) with
which Candidate(s) are affiliated; (2) Telephone and email addresses
for Candidate(s); (3) brief high-level overview of the proposed
project.

Submission Requirements

    Final submission packages shall consist of the following elements:
    1. Nomination letter from at least one teacher, advisor, faculty
member, and others as appropriate. The nomination letter(s) must
communicate accomplishments in the following areas:

a. Technical Merit of the Concept

    Evidence of technical merit based upon teacher (parent or legal
guardian in the case of home schooled applicants), advisor, or faculty
nomination and evaluation of the submitted proposal, written paper,
and/or reports.

b. Professionalism and Leadership

    Evidence of professionalism and leadership may be in the form of,
but not limited to:

(1) Membership and offices held in various groups
(2) Presentations made to various groups, meetings, and at symposia
(3) Leadership in student professional activities
(4) Community outreach activities

    2. An overall summary of the innovation, not to exceed one page,
which includes a title of the project and statement of the impact that
the innovation will have on the field of aviation or aerospace;
    3. A copy of the student's academic transcript or certified grade
report (as applicable);
    4. A copy of the paper(s) and related materials describing the
innovative concept written by the student(s) being nominated (no page
limit).
    Once submissions have been received, the Department may request
additional information, including supporting documentation, more
detailed contact information, releases of liability, and statements of
authenticity to guarantee the originality of the work. Failure to
respond in a timely fashion may result in disqualification.
    All materials should be forwarded with a cover letter to the
attention of: Patricia Watts, Ph.D., Centers of Excellence Program
Director, Federal Aviation Administration, L-28, FAA William J. Hughes
Technical Center, Atlantic City International Airport, NJ 08405.
    Hardcopy is preferred; however, the package also may be transmitted
by email to<EMAIL_ADDRESS>The submission period begins on May
1, 2014. Submissions must be sent by 11:59 p.m. Pacific daylight time
on October 31, 2014. The timeliness of submissions will be determined
by the postmark (if sent in hard copy) or time stamp of the recipient
(if emailed). Award administrators assume no responsibility for lost or
untimely submissions for any reason.

Award

    The winner will be announced by the end of 2014. A trophy with the
winner's name and date of award will be displayed at the Department of
Transportation and a display copy of the trophy will be sent to the
winner's school/college/university. An additional plaque or trophy will
be awarded to the individual or team. At the option of the Secretary,
the Department will pay for invitational travel expenses to Washington,
DC for up to four representatives of the winning teams to present their
project to Department officials and receive the award from the
Secretary.

Basis Upon Which the Winners Will Be Selected

    All submissions will be initially reviewed by the FAA Centers for
Excellence Program Director upon receipt to determine if the
submissions meet the eligibility requirements. Registration packages
meeting the eligibility requirements will be judged by advisory panels
consisting of academic experts, government officials including FAA, the
Department, and representatives of the private sector. The advisory
panels will select the most highly qualified submissions and present
them to the Secretary of the Department, who will select the winning
entrant.
    Submissions will be judged against other submissions from the same
division on the following criteria:

Technical Merit

     Has the submission presented a clear understanding of the
associated problems?
     Has the submission developed a logical and workable
solution and approach to solving the problem/s?
     What are the most significant aspects of this concept?
     Has the submission clearly described the breadth of impact
of the innovation?

Originality

     Is this concept new or a variation of an existing idea,
and in what way(s)?
     How is this work unique?
     Was the concept developed independently or in cooperation
with others?

Impact

     To what extent will this project make a significant impact
and/or contribution to the future of the aviation and aerospace
environment?

Practicality

     Who directly benefits from this work?
     Can this program or activity be implemented in a practical
fashion?
     What are the costs anticipated to be incurred and saved by
executing this concept?

Measurability

     How has this individual/group measured the impact on the
aviation environment?
     To what extent does the innovation result in measurable
improvements?

Applicability

     Can this effort be scaled?
     Is this work specific to one region, various regions, or
to the entire nation?
    All factors are important and will be given consideration, but the
advisory panels will give the ``technical merit'' factor the most
weight in the screening process. The Secretary retains sole discretion
to select the winning entrant.

Additional Information

    Federal grantees may not use Federal funds to develop COMPETES Act
challenge applications.

    Federal contractors may not use Federal funds from a contract to
develop COMPETES Act challenge applications or to fund efforts in
support of a COMPETES Act challenge submission.

    Issued on: May 16, 2014.
Susan L. Kurland,
Assistant Secretary of Aviation and International Affairs.
[FR Doc. 2014-11885 Filed 5-21-14; 8:45 am]
BILLING CODE 4910-9X-P


[Federal Register Volume 84, Number 243 (Wednesday, December 18, 2019)]
[Notices]
[Pages 69421-69424]
[FR Doc No: 2019-27197]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87722; File No. SR-ICEEU-2019-027]

Self-Regulatory Organizations; ICE Clear Europe Limited; Notice
of Filing of Proposed Rule Change, as Modified by Partial Amendment No.
1, Relating to Amendments to the ICE Clear Europe CDS Procedures

December 12, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 2, 2019, ICE Clear Europe Limited (``ICE Clear Europe'' or
the ``Clearing House'') filed with the Securities and Exchange
Commission (``Commission'') the proposed rule change described in Items
I, II and III below, which Items have been prepared by ICE Clear
Europe. On December 10, 2019, ICE Clear Europe filed Partial Amendment
No. 1 to the proposed rule change.\3\ The Commission is publishing this
notice to solicit comments on the proposed rule change, as modified by
Partial Amendment No. 1 (hereafter referred to as 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\ Partial Amendment No. 1 amended the filing to remove from
the filed Exhibit 5 certain dates in brackets and replace them with
new dates and remove other language left in brackets; update page
numbering in the filed Exhibit 2 so that the page numbering in the
filed Exhibit 2 states ``of 59'' instead of ``of 60''; and update a
reference to paragraph 8(c) of the CDS Procedures in the original
filing so that it instead refers to paragraph 8.1(c) of the CDS
Procedures.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    ICE Clear Europe proposes to make certain changes to its CDS
Procedures \4\ to incorporate amendments to the industry-standard ISDA
2014 Credit Derivatives Definitions (the ``2014 Definitions'') that are
being adopted in the broader CDS market to address so-called narrowly
tailored credit events and related matters.
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    \4\ Capitalized terms used but not defined herein have the
meanings specified in the ICE Clear Europe Rules or CDS Procedures.
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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, ICE Clear Europe 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. ICE Clear Europe has prepared summaries,
set forth in sections (A), (B), and (C) below, of the most significant
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(a) Purpose
    ICE Clear Europe proposes amendments to its CDS Procedures to
incorporate changes to the 2014 Definitions that are intended to
address so-called ``narrowly tailored credit events''. In the wake of
certain credit events and potential credit events in the CDS market in
recent years, the International Swaps and Derivatives Association, Inc.
(``ISDA''), in consultation with market participants, has developed and
published the 2019 Narrowly Tailored Credit Event Supplement to the
2014 ISDA Credit Derivatives Definitions (the ``NTCE

Supplement'').\5\ The NTCE Supplement, if applied to a CDS transaction,
effects two principal changes to the 2014 Definitions: (1) A change to
the definition of the ``Failure to Pay'' credit event designed to
exclude certain narrowly tailored credit events and (2) a change to the
process for determining the Outstanding Principal Balance of an
obligation to address certain obligations of a reference entity that
were issued at a discount.
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    \5\ The NTCE Supplement is published on the ISDA website at
https://www.isda.org/a/KDqME/Final-NTCE-Supplement.pdf.
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    As described by ISDA in the attached guidance to the NTCE
Supplement, the supplement was published in light of concerns among
market participants and regulators about ``instances of (CDS) market
participants entering into arrangements with corporations that are
narrowly tailored to trigger a credit event for CDS contracts while
minimizing the impact on the corporation, in order to increase payment
to the buyers of CDS protection.'' \6\ ISDA has expressed concern that
``narrowly tailored defaults . . . could negatively impact the
efficiency, reliability and fairness of the overall CDS market.''
Regulators have also expressed concern with narrowly tailored or
manufactured credit events, including a joint statement by the heads of
the Commission, the Commodity Futures Trading Commission and the UK
Financial Conduct Authority that such strategies ``may adversely affect
the integrity, confidence and reputation of the credit derivatives
markets, as well as markets more generally. These opportunistic
strategies raise various issues under securities, derivatives, conduct
and antifraud laws, as well as policy concerns.'' \7\
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    \6\ NTCE Supplement, Guidance on the interpretation of the
definition of ``Failure to Pay''.
    \7\ Securities and Exchange Commission, Commodity Futures
Trading Commission and UK Financial Conduct Authority, Joint
Statement on Opportunistic Strategies in the Credit Derivatives
Markets (June 24, 2019); see also Update to June 2019 Joint CFTC-
SEC-FCA Statement on Opportunistic Strategies in the Credit
Derivatives Market (Sept. 19, 2019).
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    With respect to the Failure to Pay credit event, the NTCE
Supplement adopts a concept of a ``Credit Deterioration Requirement.''
If applicable, this requirement will provide that a failure of a
reference entity to make a payment on an obligation will not constitute
a Failure to Pay Credit Event if the failure ``does not directly or
indirectly either result from, or result in, a deterioration in the
creditworthiness or financial condition'' of the reference entity. As
such, a ``narrowly tailored'' or ``manufactured'' failure to pay, which
does not reflect or result in a credit deterioration, would not
constitute a Credit Event for CDS Contracts that incorporate the NTCE
Supplement and apply the Credit Deterioration Requirement. The NTCE
Supplement also includes guidance as to factors relevant to the
determination of whether credit deterioration has occurred. That
determination would, under the 2014 Definitions, in the ordinary course
be made by the relevant Credit Derivatives Determinations Committee.
    The NTCE Supplement also amends the method of calculating the
Outstanding Principal Balance of obligations. The amendments are
intended to address a potential scenario where a corporation agrees to
issue a bond at a substantial discount to its principal amount, where
the bond could be delivered in settlement of a CDS at its full
principal amount. Under the 2014 Definitions, the Quantum of the Claim
(which is used to determine the Outstanding Principal Balance used in
calculating settlement obligations) is determined taking into account
any applicable laws insofar as they reduce the size of the claim to
reflect the original issue price or accrued value of the obligation.
The NTCE Supplement clarifies that the applicable laws to be considered
include any bankruptcy or insolvency law or other law affecting
creditors' rights to which the relevant obligation is or may become
subject. In addition, the NTCE Supplement includes the concept of
``Fallback Discounting,'' which if designated to be applicable,
provides a method for discounting the Quantum of the Claim (where it is
not otherwise reduced under applicable law or pursuant to its own
terms) of an obligation that is issued at less than 95% of its
principal amount, based on straight-line interpolation between the
issue price and the principal amount.
    ICE Clear Europe has been advised that CDS market participants are
expected to commence transacting in CDS incorporating the NTCE
Supplement (with Credit Deterioration Requirement and Fallback
Discounting applicable) on or about January 27, 2020. In addition, ISDA
has published, and opened for adherence, an NTCE Protocol pursuant to
which parties may, on a multilateral basis, agree to amend outstanding,
non-cleared CDS transactions to incorporate the NTCE Supplement. The
amendments made by the NTCE Protocol are also expected to have an
implementation date of on or about January 27, 2020. Adherence to the
protocol will thus make existing transactions fungible with
transactions on the new terms. Accordingly, ICE Clear Europe is
proposing to amend its CDS Procedures for relevant products to
incorporate the NTCE Supplement, both for new and existing cleared
transactions. For this purpose, the proposed ICE Clear Europe
amendments would apply to all cleared CDS contracts with corporate
(i.e., non-sovereign) reference entities, consistent with the NTCE
Protocol and the expected approach for new CDS transactions. ICE Clear
Europe proposes to make such changes effective by the industry
implementation date.
    Specifically, ICE Clear Europe would amend paragraph 1 of the CDS
Procedures to include new definitions for ``2019 NTCE Protocol'',
``2019 NTCE Supplement'' and ``NTCE Protocol Effective Date'', which
will be the date of implementation of the amendment. The NTCE Protocol
Effective Date will be January 27, 2020 (or such later date as
designated by ICE Clear Europe by Circular). ICE Clear Europe would
renumber the remaining provisions of paragraph 1 of the CDS Procedures
accordingly.
    ICE Clear Europe would further amend relevant subparts of the CDS
Procedures to implement the NTCE Supplement for 2014-type CDS Contracts
cleared by ICE Clear Europe. In this regard, in paragraph 8.1(c) of the
CDS Procedures, a new subparagraph (iii) would be added to provide that
for 2014-type CDS Contracts in effect as of the NTCE Protocol Effective
Date or cleared one or after that date, the Applicable Credit
Derivatives Definitions include the 2019 NTCE Supplement. Certain other
amendments would apply to index CDS transactions and certain other
amendments would apply to single-name CDS transactions.
    For index CDS transactions, for iTraxx Europe transactions, in
paragraph 9 of the CDS Procedures, the definitions of iTraxx Terms
Supplement and iTraxx Legacy Terms Supplement would be amended to
include the new standard terms supplement and confirmations for such
transactions, which incorporate the NTCE Supplement (or any electronic
equivalent thereto or other applicable document specified by the
Clearing House). Pursuant to paragraphs 9.2 and 9.3, the applicable new
documentation would apply to iTraxx Contracts submitted for clearing on
or after the NTCE Protocol Effective Date. Conforming changes to other
provisions to include references to such definitions would be made. In
addition, a new paragraph 9.8 would be added to provide that existing
open positions in iTraxx Contracts that are 2014-type CDS Contracts or
that include a Component

Transaction that is a 2014-type CDS Contract, would be amended, as of
the NTCE Protocol Effective Date, to reference the applicable new
standard terms supplement and confirmation in lieu of the standard
terms supplement and confirmation previously in effect. This will have
the effect of converting existing iTraxx Contracts to reference the new
standard terms incorporating the NTCE Supplement, such that they will
be fungible with new iTraxx Contracts, which will also reference the
new standard terms supplement and confirmation.
    Substantially similar changes for CDX.NA Contracts would be made in
paragraph 10 of the CDS Procedures.
    In the case of Single Name Contracts, the CDS Procedures would be
amended by adding a new paragraph 11.8, which provides that existing
open positions in all Single Name Contracts (other than Single Name
Contracts for which the Relevant Transaction Type is ``Standard Western
European Sovereign'') that are 2014-type CDS Contracts would be
amended, effective as of the NTCE Protocol Effective Date, to reference
the new relevant ISDA physical settlement matrix, to be published as of
the NTCE Protocol Effective Date. The amendments will have the effect
of converting existing Single Name Contracts to reference the updated
physical settlement matrix, such that they will be fungible with new
Single Name Contracts, which will also reference that matrix. The
amendments would also provide that the amendments would be effective
regardless of whether any transaction record in the Deriv/SERV
warehouse is updated to reflect the change. Conforming changes would be
made throughout paragraph 11 to reflect this change.
(b) Statutory Basis
    ICE Clear Europe believes that the proposed rule changes are
consistent with the requirements of Section 17A of the Act \8\ and the
regulations thereunder applicable to it, including the applicable
standards under Rule 17Ad-22.\9\ In particular, Section 17A(b)(3)(F) of
the Act requires that the rule change be consistent with the prompt and
accurate clearance and settlement of securities transactions and
derivative agreements, contracts and transactions cleared by ICE Clear
Europe, the safeguarding of securities and funds in the custody or
control of ICE Clear Europe or for which it is responsible, and the
protection of investors and the public interest.\10\
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    \8\ 15 U.S.C. 78q-1.
    \9\ 17 CFR 240.17Ad-22.
    \10\ 15 U.S.C. 78q-1(b)(3)(F).
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    The amendments incorporate changes to the standard terms of CDS
Contracts that are being widely adopted by market participants to
address potential concerns that have arisen with so-called narrowly
tailored credit events. The amendments reflect amendments to the 2014
Definitions, specifically with respect to the Failure to Pay and
Outstanding Principal Balance definitions, that have been developed by
ISDA, in consultation with market participants in both the cleared and
uncleared CDS markets, and are set out in the NTCE Supplement. ICE
Clear Europe understands that for the uncleared swap market, these
amendments are expected to be widely implemented through the NTCE
Protocol. ICE Clear Europe notes that the heads of the Commission, the
Commodity Futures Trading Commission and the UK Financial Conduct
Authority have stated that they welcome the efforts to implement the
amendments set out in the NTCE Supplement and NTCE Protocol.\11\ ICE
Clear Europe is proposing to adopt amendments to its CDS Procedures to
implement these same changes for both new and existing contracts
cleared by it. As a result, in ICE Clear Europe's view, the amendments
will enhance the integrity of the credit derivatives markets and the
confidence of market participants in those markets, and will therefore
facilitate the prompt and accurate clearance and settlement of such
contracts at ICE Clear Europe and will further facilitate the
protection of investors and the public interest, within the meaning of
Section 17A(b)(3)(F) of the Act. ICE Clear Europe does not believe the
amendments will materially affect the safeguarding of securities and
funds in the custody or control of ICE Clear Europe or for which it is
responsible.
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    \11\ Update to June 2019 Joint CFTC-SEC-FCA Statement on
Opportunistic Strategies in the Credit Derivatives Markets (Sept.
19, 2019).
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    The amendments will also satisfy relevant requirements of Rule
17Ad-22,\12\ as set forth in the following discussion.
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    \12\ 17 CFR 240.17Ad-22.
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    Legal Framework. Rule 17Ad-22(e)(1) \13\ requires a clearing agency
to establish, implement, maintain and enforce written policies and
procedures reasonably designed to ``provide for a well-founded,
transparent and enforceable legal framework for each aspect of its
activities in all relevant jurisdictions.'' \14\ The amendments to the
CDS Procedures are designed to supplement the contractual terms,
consistent with industry initiatives, to address and reduce the
likelihood of certain situations involving narrowly tailored credit
events that have given rise to concerns among market participants and
regulators, as described above. As such, ICE Clear Europe believes that
the amendments will enhance the legal framework for clearing of CDS
Contracts, consistent with the requirements of Rule 17Ad-22(e)(1).\15\
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    \13\ 17 CFR 240.17Ad-22(e)(1).
    \14\ 17 CFR 240.17Ad-22(e)(1).
    \15\ 17 CFR 240.17Ad-22(e)(1).
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    Risk Management. Rule 17Ad-22(e)(3) \16\ requires a clearing agency
to establish, implement, maintain and enforce written policies and
procedures reasonably designed to ``maintain a sound risk management
framework for comprehensively managing legal, credit, liquidity,
operational, general business, custody and other risks that arise in or
are borne by the'' clearing agency.\17\ ICE Clear Europe believes the
amendments, by implementing the NTCE Supplement for existing and new
CDS Contracts, will be consistent with, and eliminate basis risk as
compared to, changes being made in the uncleared CDS markets. The
changes will also ensure the fungibility of new and existing contracts
in light of the NTCE Supplement amendments, which will facilitate
ongoing risk management by the clearing house and market participants.
As a result, in ICE Clear Europe's view, the amendments are consistent
with the requirements of Rule 17Ad-22(e)(3).\18\
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    \16\ 17 CFR 240.17Ad-22(e)(3).
    \17\ 17 CFR 240.17Ad-22(e)(3).
    \18\ 17 CFR 240.17Ad-22(e)(3).
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(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed amendments would
have any impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purpose of the Act. The amendments
reflect an industry-wide initiative designed to apply to all CDS market
participants, in both the cleared and uncleared markets. ICE Clear
Europe's specific amendments to its CDS Procedures will apply
consistently across all Clearing Members, their customers and other
market participants. ICE Clear Europe further expects that other market
participants will make similar changes to their contracts and terms of
trading. As a result, ICE Clear Europe does not expect that the
proposed changes will

adversely affect access to clearing or the ability of Clearing Members,
their customers or other market participants to continue to clear
contracts, including CDS Contracts. ICE Clear Europe also does not
believe the amendments would materially affect the cost of clearing or
otherwise limit market participants' choices for selecting clearing
services. Accordingly, ICE Clear Europe does not believe the amendments
would impose any burden on competition not necessary or appropriate in
furtherance of the purpose of the Act.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    ICE Clear Europe has conducted a public consultation on the
amendments to its CDS Procedures set forth herein.\19\ ICE Clear Europe
received two written responses to the consultation pursuant to which
certain definitional clarifications and minor typographical corrections
were requested. ICE Clear Europe has made certain drafting
clarifications to the proposed rules as a result of these requests.
Certain comments in these responses related to the standard terms
supplements and confirmations referenced in the revised CDS Procedures,
and ICE Clear Europe determined that no changes to the proposed rules
themselves were appropriate as a result of such comments. One commenter
also questioned whether there was a need to explicitly amend Customer-
CM Transactions as a result of the proposed rule changes; ICE Clear
Europe determined that no such change was necessary to effectuate the
proposed rule amendments. ICE Clear Europe will notify the Commission
of any further written comments with respect to the proposed rules
received by ICE Clear Europe.
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    \19\ ICE Clear Europe Circular C19/175 (November 12, 2019),
available at https://www.theice.com/publicdocs/clear_europe/circulars/C19175.pdf.
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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 the 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

     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-ICEEU-2019-027 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-ICEEU-2019-027. 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 that are filed with
the Commission, and all written communications relating to the proposed
rule change 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 10:00 a.m. and
3:00 p.m. Copies of such filings will also be available for inspection
and copying at the principal office of ICE Clear Europe and on ICE
Clear Europe's website at https://www.theice.com/clear-europe/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-ICEEU-2019-027 and should be
submitted on or before January 8, 2020.
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    \20\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2019-27197 Filed 12-17-19; 8:45 am]
 BILLING CODE 8011-01-P