[Federal Register Volume 87, Number 206 (Wednesday, October 26, 2022)]
[Proposed Rules]
[Pages 64734-64737]
[FR Doc No: 2022-22698]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2022-1303; Project Identifier MCAI-2022-01001-G]
RIN 2120-AA64

Airworthiness Directives; Alexander Schleicher GmbH & Co.
Segelflugzeugbau Gliders

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to supersede Airworthiness Directive (AD)
2022-14-14, which applies to all Alexander Schleicher GmbH & Co.
Segelflugzeugbau Model ASW-15 gliders. AD 2022-14-14 requires
repetitively inspecting the wing root ribs for cracks, looseness, and
damage and replacing any root rib with a crack, a loose rib or lift pin
bushing, or any damage. Since the FAA issued AD 2022-14-14, the
European Union Aviation Safety Agency (EASA) superseded its mandatory
continuing airworthiness information (MCAI) to add all Model ASW-15B
gliders to the applicability. This proposed AD is prompted by MCAI
originated by an aviation authority of another country to identify and
correct an unsafe condition on an aviation product. This proposed AD
would retain the requirements from AD 2022-14-14 of repetitively
inspecting the wing root ribs for cracks, looseness, and damage and
replacing any root rib with a crack, a loose rib or lift pin bushing,
or any damage; and would add the Model ASW-15B gliders to the
applicability. The FAA is proposing this AD to address the unsafe
condition on these products.

DATES: The FAA must receive comments on this NPRM by December 12, 2022.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to regulations.gov. Follow
the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: Deliver to Mail address above between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    AD Docket: You may examine the AD docket at regulations.gov under
Docket No. FAA-2022-1303; or in person at Docket Operations between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD
docket contains this NPRM, the MCAI, any comments received, and other
information. The street address for Docket Operations is listed above.
    Material Incorporated by Reference:
     For service information identified in this NPRM, contact
Alexander Schleicher GmbH & Co. Segelflugzeugbau, Alexander-Schleicher-
Str. 1, Poppenhausen, Germany D-36163; phone: +49 (0) 06658 89-0;
email: [email protected]; website: alexander-schleicher.de.
     You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 901 Locust,
Kansas City, MO 64106. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

FOR FURTHER INFORMATION CONTACT: Jim Rutherford, Aviation Safety
Engineer, General Aviation & Rotorcraft Section, International
Validation Branch, FAA, 901 Locust, Room 301, Kansas City, MO 64106;
phone:<PHONE_NUMBER>; email: [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written relevant data, views, or
arguments about this proposal. Send your comments to an address listed
under ADDRESSES. Include ``Docket No. FAA-2022-1303; Project Identifier
MCAI-2022-01001-G'' at the beginning of your comments. The most helpful
comments reference a specific portion of the proposal, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
the proposal because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
regulations.gov, including any personal information you provide. The
agency will also post a report summarizing each substantive verbal
contact received about this NPRM.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this NPRM contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this NPRM, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this NPRM. Submissions containing CBI should be sent to Jim
Rutherford, Aviation Safety Engineer, General Aviation & Rotorcraft
Section, International Validation Branch, FAA, 901 Locust, Room 301,
Kansas City, MO 64106. Any commentary that the FAA receives which is
not specifically designated as CBI will be placed in the public docket
for this rulemaking.

Background

    The FAA issued AD 2022-14-14, Amendment 39-22119 (87 FR 43403, July
21, 2022), (AD 2022-14-14), for all serial-numbered Alexander
Schleicher GmbH & Co. Segelflugzeugbau Model ASW-15 gliders. AD 2022-
14-14 was prompted by MCAI originated by EASA, which is the Technical
Agent for the Member States of the European Union. EASA issued EASA AD
2021-0187, dated August 9, 2021 (EASA AD 2021-0187), for all Alexander
Schleicher GmbH & Co. Segelflugzeugbau Model ASW 15 gliders to correct
an unsafe condition identified as wing root rib damage.
    AD 2022-14-14 requires repetitively inspecting the wing root ribs
for cracks, looseness, and damage and replacing any root rib with a
crack, a loose rib or lift pin bushing, or any damage. The FAA issued
AD 2022-14-14 to detect and correct damaged root ribs.

Actions Since AD 2022-14-14 Was Issued

    Since the FAA issued AD 2022-14-14, Alexander Schleicher GmbH & Co.
Segelflugzeugbau determined that Model ASW-15B gliders can also be
affected by wing root rib damage. As a result, EASA superseded EASA AD
2021-0187, and issued EASA AD 2022-0146, dated July 11, 2022 (referred
to after this as ``the MCAI''). The MCAI states that wing root rib
damage can also affect Model ASW-15B gliders and the Model ASW-15B as
well as the ASW-15 gliders require repetitively inspecting the wing
root ribs and replacing any damaged wing root ribs. The MCAI retains
the requirements of EASA AD 2021-0187 and expands the applicability to
include all Model ASW-15B gliders.
    You may examine the MCAI in the AD docket at regulations.gov under
Docket No. FAA-2022-1303.

Related Service Information Under 1 CFR Part 51

    The FAA reviewed Alexander Schleicher GmbH & Co. Segelflugzeugbau
ASW 15 Technical Note No. 29, Issue II (TN No. 29, Issue II), dated May
4, 2022. This service information specifies replacement of root ribs.
    This proposed AD would also require Alexander Schleicher GmbH & Co.
Segelflugzeugbau ASW 15 Technical Note No. 29, dated June 28, 2021;
Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15 Repair
instruction exchange of wing root ribs according to TN 29, dated June
28, 2021; and Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Maintenance Instruction G, Issue 1, dated June 28, 2021, which the
Director of the Federal Register approved for incorporation by
reference as of August 25, 2022 (87 FR 43403, July 21, 2022).
    This service information is reasonably available because the
interested parties have access to it through their normal course of
business or by the means identified in ADDRESSES.

FAA's Determination

    These products have been approved by the aviation authority of
another country and are approved for operation in the United States.
Pursuant to the FAA's bilateral agreement with this State of Design
Authority, it has notified the FAA of the unsafe condition described in
the MCAI and service information described above. The FAA is issuing
this NPRM after determining that the unsafe condition described
previously is likely to exist or develop on other products of these
same type designs.

Proposed AD Requirements in This NPRM

    This proposed AD would retain all of the requirements of AD 2022-
14-14, would add Model ASW-15B gliders to the applicability, and would
provide the option of using the service material from AD 2022-14-14 or
the updated service material.

Differences Between This Proposed AD and the Service Information

    TN No. 29, Issue II, specifies the exchange of page 22A and page
27A of the Flight and Operations Manual for the Model ASW-15 and ASW-
15B gliders, respectively, with a new version of those pages and then
specifies documenting this change on page 3, Amendments, of the
respective manual, and the MCAI, and this proposed AD do not.

Costs of Compliance

    The FAA estimates that this AD, if adopted as proposed, would
affect 29 gliders of U.S. registry.
    The FAA estimates the following costs to comply with this proposed
AD:

                                                 Estimated Costs
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                                                                                Cost on U.S.
            Action                  Labor cost            Parts cost          Cost per product      operators
----------------------------------------------------------------------------------------------------------------
Inspect root ribs.............  1 work-hour x $85  Not Applicable..........  $85 per product    $2,465 per
                                 per hour = $85.                              per inspection     inspection
                                                                              cycle.             cycle.
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    The FAA estimates the following costs to do any necessary
replacements that would be required based on the results of the
proposed inspection. The agency has no way of determining the number of
gliders that might need these replacements:

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Replace all four root ribs....................  8 work-hours x $85 per hour =             $1,000          $1,680
                                                 $680.
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Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. Subtitle I, section 106, describes the
authority of the FAA Administrator. Subtitle VII, Aviation Programs,
describes in more detail the scope of the Agency's authority.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority because it addresses an unsafe condition that is likely to
exist or develop on products identified in this rulemaking action.

Regulatory Findings

    The FAA determined that this proposed AD would not have federalism
implications under Executive Order 13132. This proposed AD would not
have a substantial direct effect on the States, on the relationship
between the national Government and the States, or on the distribution
of power and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that the proposed
regulation:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Would not affect intrastate aviation in Alaska, and
    (3) Would not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

The Proposed Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA proposes to amend 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive AD 2022-14-14, Amendment 39-22119
(87 FR 43403, July 21, 2022); and
0
b. Adding the following new airworthiness directive:

Alexander Schleicher GmbH & Co. Segelflugzeugbau: Docket No. FAA-
2022-1303; Project Identifier MCAI-2022-01001-G.

(a) Comments Due Date

    The FAA must receive comments on this airworthiness directive
(AD) by December 12, 2022.

(b) Affected ADs

    This AD replaces AD 2022-14-14, Amendment 39-22119 (87 FR 43403,
July 21, 2022) (AD 2022-14-14).

(c) Applicability

    This AD applies to Alexander Schleicher GmbH & Co.
Segelflugzeugbau Model ASW-15 and ASW-15B gliders, all serial
numbers, certificated in any category.

(d) Subject

    Joint Aircraft System Component (JASC) Code 5712, Wing, Rib/
Bulkhead.

(e) Unsafe Condition

    This AD was prompted by mandatory continuing airworthiness
information (MCAI) originated by an aviation authority of another
country to identify and correct an unsafe condition on an aviation
product. The MCAI describes the unsafe condition as wing root rib
damage. The FAA is issuing this AD to detect and correct damaged
root ribs. The unsafe condition, if not addressed, could result in
reduced structural integrity of the wing assembly, which could lead
to loss of control of the glider.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Action

    (1) For Model ASW-15 gliders: Within 30 days after August 25,
2022 (effective date of AD 2022-14-14), and thereafter at intervals
not to exceed 12 months, inspect all wing root ribs (4 places) for
cracks, looseness, and damage, in accordance with the Action section
in Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Maintenance Instruction G, Issue 1, dated June 28, 2021. If there is
a crack in any root rib, a loose rib or lift pin bushing, or any
damage, before further flight, replace the root rib in accordance
with Action paragraph (B) in Alexander Schleicher GmbH & Co.
Segelflugzeugbau ASW 15 Technical Note No. 29, dated June 28, 2021,
and steps 1 through 7 in Alexander Schleicher GmbH & Co.
Segelflugzeugbau ASW 15 Repair instruction exchange of wing root
ribs according to TN 29, dated June 28, 2021; or Action paragraph
(C) in Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Technical Note No. 29, Issue II, dated May 4, 2022, and steps 1
through 7 in Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Repair instruction exchange of wing root ribs according to TN 29,
dated June 28, 2021.
    (2) For Model ASW-15B gliders: Within 30 days after the
effective date of this AD and thereafter at intervals not to exceed
12 months, inspect all wing root ribs (4 places) for cracks,
looseness, and damage, in accordance with the Action section in

Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15 Maintenance
Instruction G, Issue 1, dated June 28, 2021. If there is a crack in
any root rib, a loose rib or lift pin bushing, or any damage, before
further flight, replace the root rib in accordance with Action
paragraph (C) in Alexander Schleicher GmbH & Co. Segelflugzeugbau
ASW 15 Technical Note No. 29, Issue II, dated May 4, 2022, and steps
1 through 7 in Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW
15 Repair instruction exchange of wing root ribs according to TN 29,
dated June 28, 2021.
    (3) For Model ASW-15 and ASW-15B gliders: Replacing all four
wing root ribs is terminating action for the repetitive inspections
required by this AD.

(h) Alternative Methods of Compliance (AMOCs)

    The Manager, International Validation Branch, FAA, has the
authority to approve AMOCs for this AD, if requested using the
procedures found in Sec.  39.19. In accordance with Sec.  39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the manager of the International Validation Branch, mail
it to the address identified in paragraph (i)(2) of this AD or email
to: [email protected]. If mailing information, also submit
information by email. Before using any approved AMOC, notify your
appropriate principal inspector, or lacking a principal inspector,
the manager of the local flight standards district office/
certificate holding district office.

(i) Additional Information

    (1) Refer to European Union Aviation Safety Agency (EASA) AD
2022-0146, dated July 11, 2022, for related information. This EASA
AD may be found in the AD docket at regulations.gov under Docket No.
FAA-2022-1303.
    (2) For more information about this AD, contact Jim Rutherford,
Aviation Safety Engineer, General Aviation & Rotorcraft Section,
International Validation Branch, FAA, 901 Locust, Room 301, Kansas
City, MO 64106; phone:<PHONE_NUMBER>; email:
[email protected].

(j) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (3) The Director of the Federal Register approved the following
service information for incorporation by reference on November 30,
2022.
    (i) Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Technical Note No. 29, Issue II dated May 4, 2022.
    (ii) [Reserved]
    (4) The Director of the Federal Register approved the following
service information for incorporation by reference on August 25,
2022 (87 FR 43403, July 21, 2022)
    (i) Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Maintenance Instruction G, Issue 1, dated June 28, 2021.
    (ii) Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Repair instruction exchange of wing root ribs according to TN 29,
dated June 28, 2021.
    (iii) Alexander Schleicher GmbH & Co. Segelflugzeugbau ASW 15
Technical Note No. 29, dated June 28, 2021.
    (5) For service information identified in this AD, contact
Alexander Schleicher GmbH & Co. Segelflugzeugbau, Alexander-
Schleicher-Str. 1, Poppenhausen, Germany D-36163; phone: +49 (0)
06658 89-0; email: [email protected]; website: alexander-
schleicher.de.
    (6) You may view this service information at the FAA,
Airworthiness Products Section, Operational Safety Branch, 901
Locust, Kansas City, MO 64106. For information on the availability
of this material at the FAA, call<PHONE_NUMBER>.
    (7) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, email: [email protected], or go to: www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued on October 13, 2022.
Christina Underwood,
Acting Director, Compliance & Airworthiness Division, Aircraft
Certification Service.
[FR Doc. 2022-22698 Filed 10-25-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 86, Number 133 (Thursday, July 15, 2021)]
[Notices]
[Pages 37320-37321]
[FR Doc No: 2021-15093]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER21-2379-000]

Rainbow Energy Center, LLC; Supplemental Notice That Initial
Market-Based Rate Filing Includes Request for Blanket Section 204
Authorization

    This is a supplemental notice in the above-referenced proceeding of
Rainbow Energy Center, LLC's application for market-based rate
authority, with an accompanying rate tariff, noting that such
application includes a request for blanket authorization, under 18 CFR
part 34, of future issuances of securities and assumptions of
liability.
    Any person desiring to intervene or to protest should file 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 and 385.214). Anyone
filing a motion to intervene or protest must serve a copy of that
document on the Applicant.

    Notice is hereby given that the deadline for filing protests with
regard to the applicant's request for blanket authorization, under 18
CFR part 34, of future issuances of securities and assumptions of
liability, is July 29, 2021.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper, using the FERC Online links at http://www.ferc.gov. To facilitate electronic service, persons with internet
access who will eFile a document and/or be listed as a contact for an
intervenor must create and validate an eRegistration account using the
eRegistration link. Select the eFiling link to log on and submit the
intervention or protests.
    Persons unable to file electronically may mail similar pleadings to
the Federal Energy Regulatory Commission, 888 First Street NE,
Washington, DC 20426. Hand delivered submissions in docketed
proceedings should be delivered to Health and Human Services, 12225
Wilkins Avenue, Rockville, Maryland 20852.
    In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (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. At this time,
the Commission has suspended access to the Commission's Public
Reference Room, due to the proclamation declaring a National Emergency
concerning the Novel Coronavirus Disease (COVID-19), issued by the
President on March 13, 2020. For assistance, contact the Federal Energy
Regulatory Commission at<EMAIL_ADDRESS>or call toll-free,
(886) 208-3676 or TYY,<PHONE_NUMBER>.

    Dated: July 9, 2021.
Debbie-Anne A. Reese,
Deputy Secretary.
[FR Doc. 2021-15093 Filed 7-14-21; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 86, Number 246 (Tuesday, December 28, 2021)]
[Notices]
[Pages 73833-73835]
[FR Doc No: 2021-28111]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93845; File No. SR-ICEEU-2021-020]

Self-Regulatory Organizations; ICE Clear Europe Limited; Order
Approving Proposed Rule Change Relating to Amendments to the ICE Clear
Europe Liquidity Management Procedures and Investment Management
Procedures

December 21, 2021.

I. Introduction

    On October 22, 2021, ICE Clear Europe Limited (``ICE Clear
Europe'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (the ``Act''),\1\ and Rule 19b-4,\2\ a proposed
rule change to amend its Liquidity Management Procedures and Investment
Management Procedures. The proposed rule change was published for
comment in the Federal Register on November 10, 2021.\3\ The Commission
did not receive comments regarding the proposed rule change. For the
reasons discussed below, the Commission is approving the proposed rule
change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Self-Regulatory Organizations; ICE Clear Europe Limited;
Notice of Filing of Proposed Rule Change Relating to Amendments to
the ICE Clear Europe Liquidity Management Procedures and Investment
Management Procedures, Exchange Act Release No. 93523 (Nov. 4,
2021); 86 FR 62588 (Nov. 10, 2021) (SR-ICEEU-2021-020) (``Notice'').
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II. Description of the Proposed Rule Change

A. Liquidity Management Procedures

    The proposed rule change would make three changes to the Liquidity
Management Procedures, as described below.\4\ In addition, the proposed
rule change would correct typographical errors in Section 2.4.1 and
Section 2.7.2.
---------------------------------------------------------------------------

    \4\ Capitalized terms not otherwise defined herein have the
meanings assigned to them in the ICE Clear Europe Rules, Liquidity
Management Procedures, or Investment Management Procedures, as
applicable.
---------------------------------------------------------------------------

    First, Section 2.1.1 of the Liquidity Management Procedures
provides an overview of ICE Clear Europe's payment obligations and
liquidity needs. Currently, this section describes three sources of
payment obligations relevant to liquidity management: (i) Paying
variation margin; (ii) paying delivery or settlement monies when trades
deliver or settle; and (iii) returning surplus Initial Margin or other
margin to Clearing Members. The proposed rule change would add to this,
as a fourth payment obligation, cash substitution requests by Clearing
Members. ICE Clear Europe is making this change to make the list more
comprehensive, by expressly taking into account cash substitution,
which, as a current practice, ICE Clear Europe allows Clearing Members
to request.\5\
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    \5\ Notice, 86 FR at 62588.
---------------------------------------------------------------------------

    Second, the proposed rule change would add a new section relating
to special considerations for account opening. This section would
provide that when ICE Clear Europe is adding new accounts or amending
existing accounts with counterparties, the Treasury Department would
advise the Legal and Compliance Departments in accordance with relevant
departmental procedures to ensure that relevant banking agreements are
modified, any side or acknowledgement letters are obtained, and any
required regulatory submissions are timely made, as appropriate. This
section would provide that this process would include, for example, the
opening of new accounts for futures customer funds in accordance with
CFTC Rule 1.20(g).\6\
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    \6\ 17 CFR 1.20(g).
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    Finally, the proposed rule change would amend provisions relating
to haircutting (i.e., risk-based discounting) of non-cash collateral
and cash collateral in currencies other than the required currency.
Section 2.3.1 currently provides that the Clearing Risk Team monitors
the price of non-cash collateral and cash that is in currencies other
than the required currency during the day and calls for additional
Initial Margin if there is a shortfall in the value of the collateral
held. The proposed rule change would amend this provision so that it is
the Credit Risk Team, not the Clearing Risk Team, which monitors the
price of such assets. This change is

intended to correct the reference to the responsible internal team, as
this monitoring practice is currently performed by the Credit Risk
Team. The proposed rule change would also add that the price of such
assets would be monitored during the day against the applied haircuts,
as a clarification that reflects current practice. Finally, the
proposed rule change would remove the statement about calling for
additional Initial Margin in the event of a shortfall in the value of
the collateral held. ICE Clear Europe represents that this statement
would be unnecessary as it is addressed in the ICE Clear Europe
Collateral and Haircut Procedures.\7\
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    \7\ Notice, 86 FR at 62588.
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B. Investment Management Procedures

    The Investment Management Procedures set out the permitted
investments and related concentration limits for ICE Clear Europe when
investing or securing cash received from Clearing Members, ICE Clear
Europe's contributions to the Guaranty Fund, or ICE Clear Europe's own
regulatory capital. As such, the Investment Management Procedures
contain a table listing investments authorized for cash from Clearing
Members and ICE Clear Europe's contributions to the Guaranty Fund. This
table provides, among other things, the instrument for investment and
maximum issuer/counterparty concentration limits.
    The proposed rule change would amend this table with respect to the
maximum issuer/counterparty concentration limits for reverse repurchase
agreements. Currently, the limits apply per counterparty family. Under
the proposed rule change, the limits would apply per counterparty
group. The proposed rule change also would add a footnote to explain
that breaches of those issuer limits for reverse repurchase agreements
solely due to valuation differences or operational failure/error will
not be considered as a breach of policy. ICE Clear Europe represents
that these updates provide additional detail about existing practices
but do not reflect any change to such practices.\8\
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    \8\ Notice, 86 FR at 62588.
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    The proposed rule change would add another table to the Investment
Management Procedures that would specify the additional concentration
limits for reverse repurchase agreements involving funds from customers
of Futures Commission Merchants (``FCM''). For those investments, the
Maximum Issuer/Counterparty Concentration Limits would be 25% of total
FCM customer cash balance per counterparty group. ICE Clear Europe
represents this amendment would document an existing limitation based
on CFTC Rule 1.25.\9\
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    \9\ 17 CFR 1.25. Notice, 86 FR at 62588.
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III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to such
organization.\10\ For the reasons discussed below, the Commission finds
that the proposed rule change is consistent with Section 17A(b)(3)(F)
of the Act,\11\ and Rules 17Ad-22(e)(2)(v), (e)(7), and (e)(16)
thereunder.\12\
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    \10\ 15 U.S.C. 78s(b)(2)(C).
    \11\ 15 U.S.C. 78q-1(b)(3)(F).
    \12\ 17 CFR 240.17Ad-22(e)(2)(v), (e)(7), and (e)(16).
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A. Consistency With Section 17A(b)(3)(F) of the Act

    Section 17A(b)(3)(F) of the Act requires, among other things, that
the rules of ICE Clear Europe be designed to promote the prompt and
accurate clearance and settlement of securities transactions and, to
the extent applicable, derivative agreements, contracts, and
transactions, as well as to assure the safeguarding of securities and
funds which are in the custody or control of ICE Clear Europe or for
which it is responsible.\13\ Overall, the Commission believes that the
changes to the Liquidity Management Procedures discussed above would
help improve ICE Clear Europe's management of liquidity. Specifically,
the Commission believes that listing cash substitution as a liquidity
need, adding procedures for opening new accounts, and clarifying how
the Credit Risk team monitors the price of cash denominated in other
currencies and the price of non-cash assets, would help to ensure that
ICE Clear Europe calculates its liquidity needs, establishes new
accounts, and values the price of cash in other currencies and non-cash
assets in a consistent, predictable manner. Moreover, the Commission
believes correcting typographical errors would help to ensure that ICE
Clear Europe personnel apply the Liquidity Management Procedures in an
accurate and consistent manner.
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    \13\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission similarly believes that the proposed changes to the
Investment Management Procedures discussed above, taken together, would
help improve ICE Clear Europe's management of its investments. For
example, the Commission believes that clarifying that the numerical
concentration limits are based on total cash balance per counterparty
group would help to ensure that ICE Clear Europe calculates the limits
consistently on the basis of counterparty groups. Moreover, adding a
specific concentration limit of 25% of total FCM customer cash balance
per counterparty group for reverse repurchase agreements involving
funds from customers of FCMs should help to ensure that ICE Clear
Europe does not concentrate FCM customer cash in a single reverse
repurchase counterparty.\14\ Finally, clarifying that breaches of
issuer limits for reverse repurchase agreements solely due to valuation
differences or operational failure/error would not be a breach of the
policy would help ICE Clear Europe accommodate different valuation
methodologies from a variety of repo market participants by not
considering breaches resulting only from valuation differences or time
delays in obtaining valuations resulting from operational errors.
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    \14\ The Commission notes that ICE Clear Europe represents that
this change would document an existing limitation based on CFTC Rule
1.25. See 17 CFR 1.25; Notice, 86 FR at 62588
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    In making these improvements, the Commission believes the changes
discussed above would help ICE Clear Europe to better manage its
liquidity and investments and thereby avoid losses related to its
liquidity and investments. Because such losses, if realized, could
impede ICE Clear Europe's operations and therefore its ability to clear
and settle transactions and safeguard securities and funds, the
Commission believes the proposed rule change would help to promote the
prompt and accurate clearance and settlement of securities transactions
and assure the safeguarding of securities and funds which are in the
custody or control of ICE Clear Europe or for which it is responsible.
Moreover, the Commission believes that better of ICEEU's liquidity and
investments, and avoiding losses related to such investments, could
reduce the likelihood that ICE Clear Europe would need to access liquid
resources provided or backed by a surviving clearing member's
collateral in case of a default, and therefore would help to assure the
safeguarding of securities and funds which are in the custody or
control of ICE Clear Europe or for which it is responsible.

    Therefore, the Commission finds that the proposed rule change is
consistent with Section 17A(b)(3)(F) of the Act.\15\
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    \15\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Consistency With Rule 17Ad-22(e)(2)(v) Under the Act

    Rule 17Ad-22(e)(2)(v) requires that ICE Clear Europe establish,
implement, maintain, and enforce written policies and procedures
reasonably designed to provide for governance arrangements that specify
clear and direct lines of responsibility.\16\ As discussed above under
Section II.A, the proposed rule change would describe certain
responsibilities of the ICE Clear Europe Treasury Department when
adding new accounts or amending existing accounts with counterparties.
The Commission believes this change would specify a clear and direct
line of responsibility for the Treasury Department. Similarly, the
proposed rule change would clarify the direct line of responsibility of
the Credit Risk Team, not the Clearing Risk Team, to monitor the
intraday price of non-cash collateral and cash that is in currencies
other than the required currency. Therefore, the Commission finds that
the proposed rule change is consistent with Rule 17Ad-22(e)(2)(v).\17\
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    \16\ 17 CFR 240.17Ad-22(e)(2)(v).
    \17\ 17 CFR 240.17Ad-22(e)(2)(v).
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C. Consistency With Rule 17Ad-22(e)(7) Under the Act

    Rule 17Ad-22(e)(7) generally requires that ICE Clear Europe
establish, implement, maintain and enforce written policies and
procedures reasonably designed to effectively measure, monitor, and
manage the liquidity risk that arises in or is borne by ICE Clear
Europe, including measuring, monitoring, and managing its settlement
and funding flows on an ongoing and timely basis, and its use of
intraday liquidity.\18\ As discussed above, the proposed rule change
would add to the Liquidity Management Procedures a fourth payment
obligation, cash substitution requests by Clearing Members, which would
be another liquidity need for ICE Clear Europe. The Commission believes
that this additional description would help to clarify the potential
liquidity needs that ICE Clear Europe would need to satisfy. Moreover,
as described in the Liquidity Management Procedures, ICE Clear Europe
treats non-cash collateral and cash that is in currencies other than
the requirement as two sources of available liquidity, among other
sources. Accordingly, the Commission believes that the changes
described above, which would clarify that the Credit Risk team monitors
the price of these assets during the day against the applied haircuts,
would help to clarify the value of these potential sources of
liquidity. Therefore, the Commission finds that the proposed rule
change is consistent with Rule 17Ad-22(e)(7).\19\
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    \18\ 17 CFR 240.17Ad-22(e)(7).
    \19\ 17 CFR 240.17Ad-22(e)(7).
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D. Consistency With Rule 17Ad-22(e)(16) Under the Act

    Rule 17Ad-22(e)(16) requires that ICE Clear Europe establish,
implement, maintain, and enforce written policies and procedures
reasonably designed to safeguard its own and its participants' assets,
minimize the risk of loss and delay in access to these assets, and
invest such assets in instruments with minimal credit, market, and
liquidity risks.\20\ The Commission believes that the changes to the
Investment Management Procedures described above, in clarifying that
the numerical concentration limits are based on total cash balance per
counterparty group, rather than per counterparty family, would help to
ensure that ICE Clear Europe consistently applies its concentration
limits to groups of counterparties, in line with related ICE Clear
Europe procedures. The Commission believes that this change would
therefore help to ensure that ICE Clear Europe considers the risks of
concentrating investments of cash in one counterparty group, and
thereby would help to safeguard the investment of ICE Clear Europe's
and its Clearing Members' assets. Similarly, the Commission believes
that the additional concentration limit for reverse repurchase
agreements involving funds from customers of FCMs would help to
safeguard the assets of those customers by helping to ensure that ICE
Clear Europe not concentrate FCM customer cash in a single reverse
repurchase investment counterparty.\21\ Therefore, the Commission finds
that the proposed rule change is consistent with Rule 17Ad-
22(e)(16).\22\
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    \20\ 17 CFR 240.17Ad-22(e)(16).
    \21\ The Commission notes that ICE Clear Europe represents that
this change would document an existing limitation based on CFTC Rule
1.25. See 17 CFR 1.25; Notice, 86 FR at 62588.
    \22\ 17 CFR 240.17Ad-22(e)(16).
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act,
and in particular, with the requirements of Section 17A(b)(3)(F) of the
Act,\23\ and Rules 17Ad-22(e)(2)(v), (e)(7), and (e)(16).\24\
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    \23\ 15 U.S.C. 78q-1(b)(3)(F).
    \24\ 17 CFR 240.17Ad-22(e)(2)(v), (e)(7), and (e)(16).
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    It is therefore ordered pursuant to Section 19(b)(2) of the Act
\25\ that the proposed rule change (SR-ICEEU-2021-020) be, and hereby
is, approved.\26\
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    \25\ 15 U.S.C. 78s(b)(2).
    \26\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition, and
capital formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-28111 Filed 12-27-21; 8:45 am]
BILLING CODE 8011-01-P