[Federal Register Volume 84, Number 102 (Tuesday, May 28, 2019)]
[Notices]
[Pages 24549-24553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10986]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-85907; File No. SR-ICEEU-2019-013]


Self-Regulatory Organizations; ICE Clear Europe Limited; Notice 
of Filing of Proposed Rule Change, Security-Based Swap Submission or 
Advance Notice Relating to the ICE Clear Europe Recovery Plan

May 21, 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 May 10, 2019, ICE Clear Europe Limited (``ICE Clear Europe'' or the 
``Clearing House'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule changes described in Items I, II and 
III below, which Items have been prepared by ICE Clear Europe. The 
Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change, Security-Based Swap Submission, or Advance Notice

    ICE Clear Europe proposes to adopt a new Recovery Plan (the 
``Revised Recovery Plan''). The revisions do not involve any changes to 
the ICE Clear Europe Clearing Rules or Procedures.\3\
---------------------------------------------------------------------------

    \3\ Capitalized terms used but not defined herein have the 
meanings specified in the ICE Clear Europe Clearing Rules (the 
``Rules'').
---------------------------------------------------------------------------

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, 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, Security-Based Swap Submission or 
Advance Notice

(a) Purpose
    ICE Clear Europe is proposing to adopt the Revised Recovery Plan, 
which would supersede its current recovery plan (the ``Existing 
Recovery Plan'') in order to make certain overall enhancements, as 
discussed herein. The Revised Recovery Plan, among other aspects, 
identifies certain critical clearing services and addresses the 
Clearing House's tools, procedures and options for addressing recovery 
from scenarios that threaten its ability to continue to provide 
clearing services. The Recovery Plan is based on, and is intended to be 
consistent with, the Rules and Procedures, as well as Clearing House's 
existing risk management frameworks, policies and procedures.\4\
---------------------------------------------------------------------------

    \4\ The Revised Recovery Plan reflects the amendments to the 
Rules and Procedures submitted to the Commission with respect to 
default management, recovery and wind-down for the CDS Contract 
Category, SR-ICEEU-2019-003 (submitted April 29, 2019).
---------------------------------------------------------------------------

I. Summary of Revisions
    The proposed Revised Recovery Plan is intended to enhance the 
Clearing House's recovery plan in the following general respects:
     Specify more clearly ICE Clear Europe's framework for 
governance and decision making in recovery scenarios;
     More clearly link the different elements of the plan;
     Present the assessment of recovery tools in a way that 
clearly and comprehensively addresses the characteristics set out in 
the Committee on Payments and Market Infrastructures and the 
International Organization of Securities Commissions Final Report on 
Resilience of Central Counterparties (CCPs): Further guidance on the 
PFMI dated June 2017 (the ``CPMI-IOSCO recovery guidance'');
     Focus on recovery-specific scenarios and tools, as opposed 
to the business as usual (``BAU'') management of risks, which is 
addressed in other procedures and policies;
     Address intragroup and external interdependencies in 
greater depth;
     Address ICE Clear Europe's plan for communication and 
coordination of action to regulators and other stakeholders; and
     Provide for periodic testing of the recovery plan.
    The proposed Revised Recovery Plan would make certain specific 
modifications to the Existing Recovery Plan in furtherance of these 
general goals, as follows:
    1. The appendices in the Existing Recovery Plan would be removed as 
unnecessary, except for the appendices on committee and organizational 
structure and stress scenario analysis.
    2. The Revised Recovery Plan would more clearly address decision-
making during recovery. More specifically:
    a. The role and interaction with the Board would be clarified, 
requiring (i) the Board to convene before enacting the Revised Recovery 
Plan and before deciding to exercise recovery options, or (ii) if the 
Board could not be convened in a timely manner, then the President to 
convene the Board after the decision for ratification;
    b. Decision-making considerations for each recovery option would be 
included, including the management information that would be used, such 
as relevant regulatory capital information in a non-default loss 
scenario; and
    c. Plans relating to communication with regulators would be 
incorporated, including the manner in which ICE Clear Europe would 
inform regulators before enacting the plan or exercising recovery 
options.
    3. The Revised Recovery Plan would be restructured for ease of use 
of the plan by management and the Board in a recovery situation. In 
particular:
    a. The plan would include a playbook setting out the progression of 
actions in recovery for default loss and non-default loss scenarios, 
which would be subject to annual testing; and
    b. The triggers for recovery would be made clear and central to the 
plan.
    4. The Revised Recovery Plan would present an assessment of its 
recovery tools in a manner that more explicitly and comprehensively 
addresses the characteristics set out in the CPMI-IOSCO recovery 
guidance.
    5. The Revised Recovery Plan would more clearly focus on recovery-
specific scenarios and tools and would make the

[[Page 24550]]

boundary between BAU tools and recovery tools clearer by:
    a. Focusing on situations in which the firm's viability would be 
under threat; and
    b. Excluding the operational risk scenarios to ensure the focus is 
on recovery, not other business continuity scenarios.
    6. The Revised Recovery Plan would provide increased focus on 
intragroup and external interdependencies for critical services and 
would document its plans for related communication and coordination of 
action through:
    a. Addressing the implications of interdependencies on its critical 
services, which primarily relate to its capital replenishment framework 
which depends upon continued financial support from the 
Intercontinental Exchange, Inc. group (``ICE Group'');
    b. Including further analysis of its dependencies on third-party 
services and mitigations, which largely relate to services provided 
through ICE Group, but also include SWIFT access;
    c. Describing how potential coordination with other CCPs and 
financial market infrastructures (``FMIs'') would be approached (both 
for ICE Group CCPs and FMIs and non-ICE Group CCPs and FMIs); and
    d. Giving greater consideration to procyclicality and financial 
stability implications for Clearing Members due to ICE Clear Europe's 
exercise of its recovery options.
    7. The Revised Recovery Plan would require annual testing of the 
plan via a table-top exercise to ensure ICE Clear Europe staff's 
understanding of the plan and its implementation. The testing would 
work through specific scenarios which would take into consideration the 
playbook, management information, practical implementation of recovery 
options, communication pathways to be used, the necessity of additional 
resources and which systems would be involved in each recovery option.
II. Summary of the Revised Recovery Plan
(i) Overview
    As with the Existing Recovery Plan, the Revised Recovery Plan would 
identify the critical services that ICE Clear Europe provides, and the 
business functions that support those services. In ICE Clear Europe's 
view, its clearing services (for both the F&O and CDS product 
categories), and its related treasury and banking services, represent 
its critical services. The Revised Recovery Plan would also identify 
the market participants that rely on ICE Clear Europe's services and 
the service providers supporting its critical services. The Revised 
Recovery Plan would also address recovery triggers, scenarios, early-
warning indicators, recovery options, decision-making governance, 
limitations, assumptions and testing of the plan. The Revised Recovery 
Plan would not incorporate day-to-day risk management processes and 
tools already in place in the Rules and Procedures, as those do not 
relate to recovery scenarios. Wind-down and resolution scenarios would 
be covered in separate policies and procedures. The Revised Recovery 
Plan would not address recovery plans for exchanges or markets cleared 
by ICE Clear Europe, or the recovery of other FMIs that it interacts 
with.
    The recovery options set out in the Revised Recovery Plan are 
intended to be extensive, giving the Clearing House the ability to 
cover default losses (through eliminating any remaining variation 
margin and mark-to-market payment obligations by, in effect, margin 
haircutting and tear-up of remaining positions), liquidity shortfalls 
(by delaying payment obligations) and investment losses (after a $90 
million threshold, by allocating such losses up to the level of margin 
and guaranty fund across all Clearing Members). The Revised Recovery 
Plan would also take into account the Clearing House's powers of 
assessment as well as pre-funded resources.
(ii) Critical Services, Service Providers, and Interdependencies
    The Revised Recovery Plan would identify ICE Clear Europe's 
critical services: F&O clearing; CDS clearing; and treasury and banking 
services (``TBS''). The plan would describe the entities that depend on 
ICE Clear Europe's critical services, the need to consider capital and 
liquidity impacts on market participants when assessing the appropriate 
recovery options, and the importance of early and ongoing communication 
with regulators and other FMIs via regulators.
    The Revised Recovery Plan would also describe the critical services 
that the Clearing House relies upon from investment agents, APS banks, 
central banks, data providers, custodians, physical delivery agents, 
ICE Group exchanges, ICE Group clearing houses and ICE technology and 
operations groups. It would detail how the Clearing House mitigates 
dependence on service providers through using multiple substitutable 
providers, providers who prioritize operational continuity through 
multiple levels of resilience and redundancy, and contractual 
protections through appropriate termination periods and limiting 
clauses that would permit service providers to alter or terminate 
contracts if ICE Clear Europe were under financial stress. In general, 
under the plan, investment agents, APS banks, central banks and data 
providers would not be dependencies because of their substitutability. 
If necessary, for such service providers, ICE Clear Europe could run 
certain processes itself or apply alternative processes to achieve 
similar results.
    The Revised Recovery Plan would address the Clearing House's 
dependencies on custodians, physical delivery agents, ICE Group 
exchanges, other ICE Group clearing houses, and ICE Group technology 
and operations services. The plan would also address key systems and 
technological infrastructure on which the Clearing House relies. The 
plan would detail how the risk of these services being withdrawn are 
mitigated through multiple redundancies, business continuity and 
disaster recovery arrangements that are regularly tested, incident 
follow-up, regular performance metrics, veto rights over proposed 
changes and long notice periods. The plan would further address the 
possibility of Clearing Members defaulting on obligations to other ICE 
Group CCPs or third party CCPs and would note that ICE Clear Europe 
would coordinate with other CCPs through various means.
(iii) Recovery Scenarios, Triggers and Early Warning Indicators
    The Revised Recovery Plan would address two principal recovery 
scenarios: (i) Default losses, in which case the plan would be 
triggered when the guaranty fund is (or is likely to be) exhausted and 
there are still losses to cover; and (ii) non-default losses, in which 
case the plan would be triggered when ICE Clear Europe's base capital 
is (or is likely to be) breached.
    The Revised Recovery Plan would distinguish between BAU risk 
management and recovery scenarios (in which, by definition, BAU risk 
management is insufficient to address the relevant losses), and 
relevant options and tools available for each. The Revised Recovery 
Plan would also address scenarios in which operational events (which 
are normally addressed through business continuity and disaster 
recovery plans) could trigger operation of the recovery plan, such as 
if the capital that ICE Clear Europe needs to fix an operational or 
technology problem breaches, or is likely to breach, its base capital 
and hit the non-default loss trigger.

[[Page 24551]]

    The Revised Recovery Plan considers cases where ICE Clear Europe's 
early warning metrics and indicators may indicate that a recovery 
trigger would be hit. Early warning indicators for default loss 
scenarios would be based on default management information showing the 
size of the Clearing Members' exposures compared to the collateral ICE 
Clear Europe holds against them and the size and complexity of their 
positions, which, together with market volatility information, would 
help ICE Clear Europe assess whether auctions would be likely to be 
successful in balancing the book before running the auctions. With 
respect to non-default losses, ICE Clear Europe would monitor its 
eligible capital against target thresholds each day through risk 
appetite metrics, which provide alerts and escalation to management or 
the ICE Clear Europe Board before ICE Clear Europe breaches its base 
capital.
(iv) Recovery Options
    ICE Clear Europe's recovery options are generally set out in the 
Rules and Procedures. The Revised Recovery Plan would describe key 
aspects of these options as follows:
     Powers of assessment (``PoA'') (Rules 909)--which enables 
ICE Clear Europe to require Clearing Members to pay additional funds to 
further mutualize default losses, up to the cap specified in the Rules. 
PoA can only be used in a default loss scenario.
     Reduced Gains Distribution (``RGD'') (Rule 914)--which 
allows ICE Clear Europe to withhold mark-to-market margin gains instead 
of paying them out to the relevant Clearing Members, in order to cover 
losses. This would likely need to be used in conjunction with other 
recovery options as it would not remove the source of the risk. This 
could only be used in a default loss scenario and only after PoA have 
been called.
     Partial Tear-Ups (Rule 915)--which allows ICE Clear Europe 
to `tear up' positions, in effect cancelling them or reducing or 
removing the payment obligations due on those positions. This could 
only be used in a default loss scenario and only after an auction has 
been attempted.
     Payment Delays (Rule 110)--which allows ICE Clear Europe 
to delay transfers, deposits and payments to help alleviate liquidity 
shortfalls and likely needs to be used in conjunction with other 
recovery options. This could be used in both default and non-default 
loss scenarios.
     Investment Loss Allocation (Rule 919)--which allows ICE 
Clear Europe to allocate investment losses to Clearing Members provided 
it has invested in accordance with its investment management policy. 
This could only be used where there are investment losses.
     Invoicing Back (Rule 104)--which allows ICE Clear Europe 
to cancel positions in certain non-default loss situations, limited to 
force majeure, illegality and impossibility.
     Capital Replenishment Framework (``CRF'')--which covers 
ICE Clear Europe's options for replenishing capital, including raising 
additional capital through the ICE Group and third parties, as well as 
insurance coverage. This could be used in both default and non-default 
loss scenarios. The timing of receipt of additional capital would 
depend on the specific source of additional capital and would not be 
guaranteed.
    The proposed Revised Recovery Plan would describe the goals and 
procedures for designing recovery options, including that recovery 
options are designed to be comprehensive, effective, transparent, 
measurable, manageable and controllable. They are intended to create 
appropriate incentives and minimize negative impact. The plan would 
also describe the governance process for development of recovery 
options that impact Clearing Members. The process would include input 
from stakeholders, including Clearing Members, customers, regulators 
and ICE Clear Europe's shareholder. The plan also reflects the existing 
governance procedures for changes to the Rules (including recovery 
options therein).
    The Revised Recovery Plan would discuss the manner in which ICE 
Clear Europe's recovery options meet its standards for being 
comprehensive and effective, reliable, enforceable, transparent and 
measurable and for creating appropriate incentives and minimizing 
negative impact both individually and collectively, as they would give 
ICE Clear Europe the ability to fully cover default losses, liquidity 
shortfalls and investment losses (above the relevant threshold).
    The plan would also set out in detail the decision-making 
considerations for each recovery option. These include the scenarios in 
which recovery options may be used and the expected effectiveness or 
scope of coverage for those options, whether the option can be used 
alone or in conjunction with other options, the time at which use of 
the option may be considered, expected impacts on market participants 
and others and effects on confidence in ICE Clear Europe or its 
clearing system, among other considerations.
(v) Decision-Making, Governance and Communications
    The Revised Recovery Plan would require that the President attempt 
to convene the Board for approval of material recovery decisions and 
keep regulators informed in advance of material decisions, assuming 
this could be done in a timely manner. If the Board could not be 
convened in advance of such a decision, it would be convened thereafter 
to ratify or modify the decision. The President would be supported by 
the Default Management Committees in a default loss scenario and by the 
Executive Risk Committee in a non-default loss scenario. Consistent 
with the Rules and Procedures, exercising the recovery options would 
not require the approval of Clearing Members, exchanges or any other 
external stakeholders. In making decisions regarding the use of 
recovery options, however, the President and the Board would need to 
take into consideration the interests of ICE Clear Europe, Clearing 
Members, customers, other stakeholders and the broader goal of 
providing safe and sound CCP services to reduce systemic risk in an 
efficient and legally compliant manner.
    The Revised Recovery Plan would state ICE Clear Europe's 
communication and coordination objectives in recovery to (i) provide 
Clearing Members, regulators and the wider market with timely and 
accurate information and (ii) ensure effective coordination and 
escalation across affiliated ICE Group exchanges, clearing houses and 
FMIs. The Revised Recovery Plan would also address coordination with 
other ICE Group exchanges, clearing houses and FMIs. The plan would 
also contemplate wider communications with Clearing Members and other 
market participants.
    ICE Clear Europe would aim to keep regulators informed in advance 
of triggering the Revised Recovery Plan or exercising recovery options, 
while being mindful of the need to take timely action. ICE Clear Europe 
would seek to maintain close and continuous engagement with the 
regulators during the implementation of the Revised Recovery Plan until 
ICE Clear Europe returns to normal operational conditions or activates 
the Wind-Down Plan (in which case other regulatory coordination 
procedures apply). ICE Clear Europe would participate in coordination 
and communication with other relevant stakeholders organized by the 
regulators.
(vi) Recovery Playbook
    The Revised Recovery Plan would set out the recovery approach in a 
default

[[Page 24552]]

loss and non-default loss scenario through a recovery playbook. The 
playbook is intended as an example for how recoveries might progress, 
rather than a prescriptive instruction manual for all recovery 
situations. The playbook identifies key steps in the recovery process, 
including declaring a default event and determining the likely scope of 
losses, Board consultation, triggering the plan, communicating with 
regulators, and selecting the particular recovery options.
(vii) Limitations and Assumptions
    The Revised Recovery Plan would identify the key assumptions and 
limitations that could reduce its effectiveness and may fall outside of 
ICE Clear Europe's control. These include the following: (i) The plan 
is based on legal certainty of the framework in which the Clearing 
House operates; (ii) the plan relies on market infrastructure ICE Clear 
Europe does not control and for which there are no practical 
alternatives; (iii) the plan assumes (for the most part) the continued 
support of ICE Inc.; and (iv) certain recovery options are time limited 
or time dependent. The plan would review the reasons why these 
assumptions and limitations are appropriate, and certain determinations 
it has made in respect thereof.
(viii) Appendices
    The Revised Recovery Plan would include the following appendices: 
(i) ICE Clear Europe Committee Structure setting out board and 
executive level governance; and (ii) stress scenario analysis.
(b) Statutory Basis
    ICE Clear Europe believes that the Revised Recovery Plan is 
consistent with the requirements of Section 17A of the Act \5\ and the 
regulations thereunder applicable to it, including the standards under 
Rule 17Ad-22.\6\
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78q-1.
    \6\ 17 CFR 240.17Ad-22.
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act \7\ requires, among other things, 
that the rules of a clearing agency be designed to promote the prompt 
and accurate clearance and settlement of securities transactions and, 
to the extent applicable, derivative agreements, contracts, and 
transactions, the safeguarding of securities and funds in the custody 
or control of the clearing agency or for which it is responsible, and 
the protection of investors and the public interest. In addition, Rule 
17Ad-22(e)(3)(ii) \8\ requires that each covered clearing agency shall 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to, as applicable, maintain a sound risk 
management framework for comprehensively managing legal, credit, 
liquidity, operational, general business, investment, custody, and 
other risks that arise in or are borne by the covered clearing agency, 
which includes plans for the recovery and orderly wind-down of the 
covered clearing agency necessitated by credit losses, liquidity 
shortfalls, losses from general business risk, or any other losses.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 17 CFR 240.17Ad-22(e)(3)(ii).
---------------------------------------------------------------------------

    The Revised Recovery Plan is intended to meet the requirements of 
Rule 17Ad-22(e)(3)(ii), and be consistent with the requirements of 
Section 17A(b)(3)(F) of the Act. The Revised Recovery Plan is designed 
to enhance the Clearing House's Existing Recovery Plan, among other 
matters, by being clearer and easier to apply, more clearly 
distinguishing recovery scenarios from BAU scenarios, addressing 
governance requirements generally and for particular recovery options, 
and more clearly addressing certain critical dependencies faced by the 
Clearing House. The Revised Recovery Plan does not itself modify the 
recovery options themselves, which are largely set out in the Clearing 
House's Rules and Procedures. The Revised Recovery Plan, like the 
Existing Recovery Plan, would build on these provisions of the Rules 
and Procedures to set out the recovery options that may be used to 
address both default loss scenarios and non-default loss scenarios 
(such as liquidity shortfalls, investment losses and losses from 
general business risk), so that the Clearing House could restore normal 
clearing operations. The plan would address coordination with 
regulators and other stakeholders. Overall, the plan would form a key 
part of the risk management of the Clearing House, and build on the 
existing risk management processes and procedures applicable to BAU 
scenarios. As a result, in ICE Clear Europe's view, the Revised 
Recovery Plan would satisfy the requirements of Rule 17Ad-
22(e)(3)(ii).\9\ The plan would also further the Clearing House's 
ability to maintain the prompt and accurate clearance and settlement of 
transactions and the safeguarding of securities and funds in the 
custody or control of the Clearing House or for which it is 
responsible, including in severe default and non-default loss 
scenarios, and thereby promote the protection of investors and the 
public interest, within the meaning of Section 17A(b)(3)(F) of the 
Act.\10\
---------------------------------------------------------------------------

    \9\ 17 CFR 270.17Ad-22(e)(3)(ii).
    \10\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    ICE Clear Europe further notes the requirement in Rule 17Ad-
22(e)(15) \11\ to hold sufficient liquid net assets funded by equity to 
cover potential general business losses so that the covered clearing 
agency can continue operations and services as a going concern if those 
losses materialize, including by (i) determining the amount of liquid 
net assets funded by equity based upon its general business risk 
profile and the length of time required to achieve a recovery or 
orderly wind-down, as appropriate, of its critical operations and 
services if such action is taken, and (ii) holding liquid net assets 
funded by equity equal to the greater of either (x) six months of the 
covered clearing agency's current operating expenses, or (y) the amount 
determined by the board of directors to be sufficient to ensure a 
recovery or orderly wind-down of critical operations and services of 
the covered clearing agency, as contemplated by the recovery and wind-
down plans established under Rule 17Ad-22(e)(3)(ii).
---------------------------------------------------------------------------

    \11\ 17 CFR 240.17Ad-22(e)(15).
---------------------------------------------------------------------------

    ICE Clear Europe has determined that it holds equity capital at 
least sufficient to cover the costs of a recovery of its critical 
clearing services under the Revised Recovery Plan, consistent with the 
requirements of Rule 17Ad-22(e)(15).\12\
---------------------------------------------------------------------------

    \12\ 17 CFR 240.17Ad-22(e)(15).
---------------------------------------------------------------------------

    In compliance with Rules 17Ad-22(e)(2),\13\ the proposed Revised 
Recovery Plan would provide greater detail with respect to decision-
making during recovery as well as the role and interaction with the 
Board, other executives, regulators and other stakeholders, providing 
greater clarity with respect to ICE Clear Europe's governance 
arrangements and lines of

[[Page 24553]]

responsibility and ensuring that the interests of other stakeholders 
are considered.
---------------------------------------------------------------------------

    \13\ 17 CFR 270.17Ad-22(e)(2). Rule 17Ad-22(e)(2) requires the 
covered clearing agency to establish, implement, maintain and 
enforce written policies and procedures reasonably designed to 
provide for governance arrangements that:
    (i) Are clear and transparent;
    (ii) Clearly prioritize the safety and efficiency of the covered 
clearing agency;
    (iii) Support the public interest requirements in Section 17A of 
the Act (15 U.S.C. 78q-1) applicable to clearing agencies, and the 
objectives of owners and participants;
    (iv) Establish that the board of directors and senior management 
have appropriate experience and skills to discharge their duties and 
responsibilities;
    (v) Specify clear and direct lines of responsibility; and
    (vi) Consider the interests of participants' customers, 
securities issuers and holders, and other relevant stakeholders of 
the covered clearing agency.
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    ICE Clear Europe does not believe the proposed Revised Recovery 
Plan would have any impact, or impose any burden, on competition not 
necessary or appropriate in furtherance of the purposes of the Act. The 
Revised Recovery Plan would provide greater clarity and make certain 
enhancements with respect to ICE Clear Europe's recovery planning. The 
plan does not itself change the rights or obligations of the Clearing 
House or Clearing Members, and is based on the recovery options 
established in the Rules and Procedures. The Revised Recovery Plan has 
been designed to meet specific regulatory requirements concerning 
recovery planning, and is applicable to all clearing activities. ICE 
Clear Europe does not believe the amendments would impact competition 
among Clearing Members or other market participants, or affect the 
ability of market participants to access clearing generally. While 
implementation of the Recovery Plan, and in particular implementation 
of the plan in a severe loss scenario, would likely impose costs on 
Clearing Members or other market participants, such costs are 
consistent with the Rules and Procedures, and are, in ICE Clear 
Europe's view, appropriate in light of the goals of recovery and 
maintenance of critical clearing service in accordance with applicable 
regulations.

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

    Written comments relating to the proposed amendments have not been 
solicited or received by ICE Clear Europe. ICE Clear Europe will notify 
the Commission of any written comments received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change, Security-Based 
Swap Submission and 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 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, 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 rule-comments@sec.gov. Please include 
File Number SR-ICEEU-2019-013 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-2019-013. 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 10:00 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-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-
ICEEU-2019-013 and should be submitted on or before June 18, 2019.
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\14\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2019-10986 Filed 5-24-19; 8:45 am]
BILLING CODE 8011-01-P


