[Federal Register Volume 86, Number 224 (Wednesday, November 24, 2021)]
[Notices]
[Pages 67097-67100]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25623]



[[Page 67097]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93610; File No. SR-ICC-2021-020]


Self-Regulatory Organizations; ICE Clear Credit LLC; Order 
Approving Proposed Rule Change Relating to the Stress Testing Framework 
and the Indirect Participant Risk Monitoring and Review Policy

November 18, 2021.

I. Introduction

    On September 27, 2021, ICE Clear Credit LLC (``ICC'') 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 thereunder,\2\ a proposed rule change to 
revise the ICC CDS Clearing: Stress-Testing Framework (``Stress Testing 
Framework'') and to adopt and formalize the ICC Indirect Participant 
Risk Monitoring and Review Policy (``Indirect Participant Risk 
Policy''). The proposed rule change was published in the Federal 
Register on October 7, 2021.\3\ The Commission did not receive comments 
on 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 Credit LLC; Notice 
of Filing of Proposed Rule Change Relating to the Stress Testing 
Framework and the Indirect Participant Risk Monitoring and Review 
Policy, Exchange Act Release No. 93235 (Oct. 1, 2021); 86 FR 55888 
(Oct. 7, 2021) (SR-ICC-2021-020) (``Notice'').
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II. Description of the Proposed Rule Change

    The proposed rule change would revise the Stress Testing Framework, 
which describes various stress tests executed by ICC and the governance 
process surrounding these tests. The proposed changes relate primarily 
to clarifications of ICC's stress testing practices, updates to 
descriptions of stress scenarios and governance, and clean-up changes 
to certain definitions and references throughout the Stress Testing 
Framework, as well as the addition of an appendix to the Stress Testing 
Framework to provide details on ICC's existing stress test methodology. 
The proposed rule change also would adopt the Indirect Participant Risk 
Policy to memorialize ICC's existing risk management practices for the 
adequate identification, monitoring, and management of risks arising 
from, and relating to, indirect participants, defined as the underlying 
clients of ICC's Clearing Participants (``CPs'').\4\
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    \4\ The following description of the proposed rule change is 
substantially excerpted from the Notice.
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A. Stress Testing Framework

    The proposed changes define and/or abbreviate various terms 
throughout the document, starting in Section 2 (Overview). For example, 
the term Guaranty Fund would be abbreviated as ``GF.'' Regarding the 
stress test methodology in Section 3 (Methodology), ICC would define 
the term financial resources in a new footnote to mean ``available 
funds from the Initial Margin (IM) requirements and GF contributions 
related to the selected portfolios.'' The proposed footnote also would 
clarify that the related analysis of IM requirements may exclude 
certain charges to ``provision for losses associated with bid/offer 
exposure upon portfolio liquidation.'' Similarly, ICC would make 
corresponding changes to the subsequent text in Section 3 to conform 
the description of charges that may be excluded from analyzed IM 
requirements. As summarized in more detail below, ICC also would add a 
new Section 16 as Appendix A that describes details on ICC's stress 
test methodology, and would add references to such appendix in Sections 
3, 5 (Predefined Scenarios), and 13 (Interpretation of Results). ICC 
would add proposed footnotes in Subsection 5.1 (Historically Observed 
Extreme but Plausible Market Scenarios) that contain formulas for 
defining the greatest observed N-day relative spread increases and 
decreases regarding certain spread scenarios. The proposed amendments 
to Section 12 (Portfolio Selection) would specify that client stress 
testing is executed daily (rather than ``at least monthly''), and also 
reference the Indirect Participant Risk Policy for further details on 
the analysis. In Section 14 (Post-Stress Testing Review & Governance 
Structure), ICC proposes a grammatical update to make the term 
``meeting'' plural to reflect the weekly and monthly meetings of the 
ICC Risk Management Department (``Risk Department''), and to 
memorialize that the Stress Testing Framework is subject to review by 
the ICC Risk Committee and review and approval by the Board at least 
annually. ICC also proposes to include the Indirect Participant Risk 
Policy as a reference in Section 15.
    As noted above, ICC proposes new Section 16 as Appendix A, which is 
intended to provide more detail and clarity on ICC's stress test 
methodology and would not change the existing methodology.\5\ The 
proposed appendix defines key terms and sets out underlying formulas 
and equations used for stress testing. Key terms and related equations 
to define them include, among others, Stress Testing Profit/Losses, 
which represent the CP portfolio hypothetical response to the 
considered stress testing scenarios. The proposed appendix also 
explains the determination of the order of defaulting CP Affiliate 
Groups (``AGs''), which consist of CPs that fall under a common parent 
entity, in order to establish if the available financial resources are 
sufficient to cover hypothetical losses associated with the two 
greatest CP AG uncollateralized stress losses, and discusses the 
consideration given to wrong way risk exposure. Finally, the proposed 
appendix details how ICC determines if the available financial 
resources are sufficient to cover the hypothetical losses associated 
with the two greatest CP AG uncollateralized losses under the extreme 
but plausible scenarios.
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    \5\ See Notice at 55888.
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B. Indirect Participant Risk Policy

    The risk management program at ICC includes various elements 
designed to ensure the adequate identification, monitoring and 
management of risks arising from and relating to indirect participants. 
ICC proposes to adopt the proposed Indirect Participant Risk Policy to 
memorialize such practices, analyses, and associated governance 
arrangements. The proposed Indirect Participant Risk Policy document is 
divided into seven sections, which are summarized below.
    Section 1 (Background) introduces the purpose of the document and 
defines key terms. More specifically, Section 1 defines Indirect 
Participants (``IPs'') as the underlying clients of ICC's CPs. Section 
1 also defines Futures Commission Merchants/Broker Dealers (``FCMs/
BDs'') as ICC's CPs with clients. Section 1 states that Indirect 
Participants can pose risk to CPs and indirectly to ICC due to the 
presence of Large Traders (``LTs''). A Large Trader is defined as a 
client of a CP, or a simultaneous client of multiple CPs, that exhibits 
large risk exposure in its portfolio that transpires through 
concentrated position(s), significant level of collateralization, and 
large uncollateralized losses under extreme but plausible market stress 
scenarios.
    Sections 2 through 4 describe and memorialize the identification, 
monitoring, and risk management practices related to IPs and the 
presence of LTs. Section 2 introduces a client-

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focused risk report, named the Client Gross Margin Report (``CGMR''), 
that enables ICC to determine the presence of potential LTs and assess 
the level of risk that they may pose to the CP and/or ICC. The CGMR 
summarizes client risk exposure across all FCMs/BDs and corresponding 
IPs, which allows the Risk Department to monitor and identify the FCMs/
BDs with the largest IPs. The Risk Department and Risk Committee review 
the results from the CGMR at least on a monthly basis, and the Risk 
Department has the ability to monitor the IPs more frequently, if it 
deems necessary. Section 3 introduces and details the Large Trader 
Report, which is a complementary report to the CGMR that summarizes 
ICC's IPs with risk profiles prone to adverse risk distribution, due to 
their size, across all FCMs/BDs. The criteria for the selection of IPs 
in the Large Trader Report is based on analyzing IPs' U.S. Dollar 
(``USD'') equivalent Gross IM requirements across FCMs/BDs and 
identifying a select group of accounts with the largest total USD 
equivalent Gross IM requirements. Section 3 also describes another 
complementary report, called the Adverse Risk Distribution Report, 
which indicates the probability of an IP adversely distributing its 
risk across multiple FCMs/BDs and thus provides guidance on additional 
IPs to be included for reporting. Section 3 states that the Large 
Trader Report and the Adverse Risk Distribution Report analysis are 
executed daily, and that the Risk Committee reviews the results from 
both reports at least on a monthly basis. Section 4 introduces and 
describes the Customer Stress Test Risk Report (``CSTRR''), which is an 
additional complementary analysis to the CGMR for client portfolio 
level stress testing. The CSTRR analysis assumes that individual LTs 
are entering a state of default and triggering the default of their 
corresponding FCMs/BDs. The IPs selected for the analysis exhibit the 
largest stress loss over financial resources being tested for each of 
the selected top FCMs/BDs with the largest USD equivalent Gross IM 
requirements, thereby capturing the clients with the largest risk 
exposure, who are deemed LTs. Section 4 states that the Risk Department 
executes individual client portfolio stress testing on a daily basis, 
and reviews the results with the Risk Committee at least on a monthly 
basis.
    Section 5 (Governance) memorializes governance procedures 
associated with the performance and review of the risk analyses 
summarized above. The Indirect Participant Risk Policy specifies the 
group or individual involved in the execution, interpretation, review, 
and reporting of the analyses as well as the frequency. More 
specifically, Section 5 states that the Risk Department staff executes 
and reviews the CGMR and Large Trader Report at least monthly, with 
monthly reporting to the Risk Committee. Section 5 also states that the 
IP stress testing is executed daily by the Risk Department with monthly 
review and reporting to the Risk Committee via the CSTRR. Section 5 
further states that the Chief Risk Officer, or a designee, performs the 
review and interpretation of the CGMR, Large Trader Report, and CSTRR 
results. Section 5 also sets out the actions to be taken if the Risk 
Department and the Risk Committee deem the risk arising from IPs to be 
significant.
    Sections 6 and 7 provide additional reference information regarding 
the Indirect Participant Risk Policy. In Section 6, ICC includes a 
references section with a specific reference to the Stress Testing 
Framework. Section 7 includes a revision history that tracks the date, 
version, and revisions to the document.

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.\6\ For the reasons given below, the Commission finds that 
the proposed rule change is consistent with Section 17A(b)(3)(F) of the 
Act \7\ and Rules 17Ad-22(e)(2)(i) and (v), (e)(4)(vi), and (e)(19) 
thereunder.\8\
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    \6\ 15 U.S.C. 78s(b)(2)(C).
    \7\ 15 U.S.C. 78q-1(b)(3)(F).
    \8\ 17 CFR 240.17Ad-22(e)(2)(i) and (v), (e)(4)(vi), and 
(e)(19).
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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 ICC 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 ICC or for which it is responsible. \9\
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    \9\ 15 U.S.C. 78q-1(b)(3)(F).
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    As described in Section II.A above, the proposed changes to the 
Stress Testing Framework generally provide more detail to inform the 
ongoing implementation of the stress testing methodology for use in 
ICC's daily risk management process by defining key terms, adding a new 
appendix that describes ICC's existing stress test methodology with 
specific formulas or equations, referencing such appendix in relevant 
sections of the document, memorializing the internal governance review 
and approval process, and making other clarification and clean-up 
changes.
    The Commission believes that, by defining the key term ``financial 
resources'' and clarifying that the related analysis of IM requirements 
may exclude certain charges to provision for losses associated with 
bid/offer exposure upon portfolio liquidation, the proposed rule change 
would enhance ICC's ability to establish whether available financial 
resources are sufficient to cover hypothetical losses of the two 
greatest clearing participant affiliate groups.
    The proposed rule change also updates certain terminology and 
references, and makes other clarifying updates to the Stress Testing 
Framework. Specifically, such changes include: using ``GF'' to 
reference the term Guaranty Fund; adding footnotes that contain 
formulas for defining the greatest observed N-day relative spread 
increases and decreases regarding certain spread scenarios; making the 
term ``meeting'' plural to reflect the weekly and monthly meetings of 
the Risk Department; specifying that client stress testing is executed 
daily (rather than ``at least monthly''); including the Indirect 
Participant Risk Policy as a general reference in Section 15 of the 
document and specifically cross-referencing the Indirect Participant 
Risk Policy in Section 12 for further details on the client stress 
testing analysis; adding Appendix A to provide more detail and clarity 
on ICC's stress test methodology by defining key terms and underlying 
formulas and equations used for stress testing, explaining how ICC 
accounts for wrong way risk exposure, and also how ICC determines the 
order of defaulting CP AGs and whether the available financial 
resources are sufficient to cover the hypothetical losses associated 
with the two greatest CP AG uncollateralized losses under the extreme 
but plausible scenarios; and including specific references to proposed 
Appendix A in relevant sections of the document. The Commission 
believes that all of these clarifications and updates enhance the 
accuracy, completeness, and readability of the Stress Testing 
Framework.

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    Further, as described in Section II.A above, the proposed changes 
to the Stress Testing Framework specify that it is subject to review by 
the Risk Committee and review and approval by the Board at least 
annually. The Commission believes that these revisions update and 
clarify the governance arrangements of the Stress Testing Framework 
and, in turn, would help to facilitate consistent, ongoing adherence by 
the relevant groups at ICC.
    For these reasons, the Commission believes that the proposed 
changes to the Stress Testing Framework, taken together, would enhance 
the accuracy and transparency of ICC's stress testing practices and 
related governance processes. The Commission also believes that having 
policies and procedures that clearly and accurately document ICC's 
stress testing practices and related governance processes are an 
important and integral component to the effectiveness of ICC's risk 
management system, which promotes the prompt and accurate clearance and 
settlement of securities transactions, derivatives agreements, 
contracts, and transactions and contributes to the safeguarding of 
securities and funds associated with security-based swap transactions 
in ICC's custody or control, or for which ICC is responsible. As such, 
the proposed rule changes to the Stress Testing Framework are designed 
to promote the prompt and accurate clearance and settlement of 
securities transactions, derivatives agreements, contracts, and 
transactions and to contribute to the safeguarding of securities and 
funds associated with security-based swap transactions in ICC's custody 
or control, or for which ICC is responsible within the meaning of 
Section 17A(b)(3)(F) of the Act.\10\
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    \10\ 15 U.S.C. 78q-1(b)(3)(F).
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    As described in Section II.B above, the proposed Indirect 
Participant Risk Policy memorializes ICC's current practices, analyses, 
and associated governance arrangements to ensure the adequate 
identification, monitoring, and management of risks arising from and 
relating to indirect participants. The Commission believes all seven 
sections of the proposed document, as discussed in Part II.B above, 
would help ensure that ICC is able to promptly and accurately clear and 
settle transactions and safeguard securities and funds which are in its 
custody or control or for which it is responsible. More specifically, 
the Commission believes that Section 1, by defining key terms used 
throughout the document, such as Indirect Participants, Large Traders, 
and FCMs/BDs; Sections 2 through 4, by describing and memorializing the 
identification, monitoring, and specific risk reports and analyses 
related to Indirect Participants and the presence of Large Traders; 
Section 5, by memorializing governance procedures associated with the 
performance and review of ICC's risk analyses; Section 6, by including 
a references section with a specific reference to the Stress Testing 
Framework; and Section 7, by including a revision history that tracks 
the date, version, and revisions of all document changes, would 
complement the Stress Testing Framework and strengthen ICC's overall 
risk management program by formalizing the additional risk management 
practices and associated governance processes specifically designed for 
identifying and monitoring indirect participants that can pose 
significant risks to CPs, and indirectly to ICC. By helping ICC manage 
such risks and the credit exposures associated with clearing credit 
default swaps (``CDS'') transactions, the Commission believes that the 
proposed adoption of the Indirect Participant Risk Policy would help 
improve ICC's ability to avoid the losses that could result from the 
underestimation of ICC's credit exposures and miscalculation of margin 
requirements for such transactions. Because such losses could disrupt 
ICC's ability to operate and thus clear and settle CDS transactions, 
the Commission finds the proposed Indirect Participant Risk Policy, by 
helping to enhance ICC's overall risk management and financial 
stability, would help to ensure that ICC is able to promptly and 
accurately clear and settle CDS transactions. Additionally, because 
such losses could also threaten access to securities and funds in ICC's 
control, the Commission finds the proposed rule change would help 
assure the safeguarding of securities and funds that are in the custody 
or control of ICC or for which it is responsible.
    Therefore, for all of the foregoing reasons, the Commission finds 
that the proposed rule change would promote the prompt and accurate 
clearance and settlement of securities transactions and assure the 
safeguarding of securities and funds in ICE Clear Europe's custody and 
control, consistent with the Section 17A(b)(3)(F) of the Act.\11\
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    \11\ 15 U.S.C. 78q-1(b)(3)(F).
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B. Consistency With Rules 17Ad-22(e)(2)(i) and (v) Under the Act

    Rules 17Ad-22(e)(2)(i) and (v) require ICC to establish, implement, 
maintain and enforce written policies and procedures reasonably 
designed to provide for governance arrangements that are clear and 
transparent and specify clear and direct lines of responsibility, 
respectively.\12\
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    \12\ 17 CFR 240.17Ad-22(e)(2)(i) and (v).
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    The Commission believes that the proposed changes to the Stress 
Testing Framework, in changing the term ``meeting'' to ``meetings'' to 
reflect that Risk Department management holds weekly and monthly 
meetings to review and discuss the previous period's stress testing 
results and issues for each considered stress test scenario involving 
CP AGs, would strengthen the governance arrangements set forth in the 
Stress Testing Framework by updating and clearly documenting the 
frequency of Risk Department management meetings to review and discuss 
the previous period's stress testing results for CP AGs, consistent 
with Rule 17Ad-22(e)(2)(i).\13\ The Commission also believes that the 
proposed changes to the Stress Testing Framework, in memorializing that 
the Stress Testing Framework is subject to review by the Risk Committee 
and review and approval by the Board at least annually, would specify 
the roles and responsibilities of the Risk Committee and the Board in 
reviewing and approving the Stress Testing Framework on an annual 
basis, consistent with Rule 17Ad-22(e)(2)(v).\14\
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    \13\ 17 CFR 240.17Ad-22(e)(2)(i).
    \14\ 17 CFR 240.17Ad-22(e)(2)(v).
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    Further, the Commission believes that the proposed Indirect 
Participant Risk Policy, in specifying in Section 2 that the Risk 
Department and Risk Committee review the results from the CGMR at least 
on a monthly basis, and the Risk Department has the ability to monitor 
the IPs more frequently, if it deems necessary; in specifying in 
Section 3 that the Large Trader Report and the Adverse Risk 
Distribution Report analysis are executed daily by the Risk Department, 
and that the Risk Committee reviews the results from both reports at 
least on a monthly basis; and in specifying in Section 4 that the Risk 
Department executes individual client portfolio stress testing on a 
daily basis, and reviews the results with the Risk Committee at least 
on a monthly basis, would clearly document the roles and 
responsibilities of the Risk Department and the Risk Committee in the 
ongoing execution and review of specific risk reports and analyses 
related to Indirect Participants and the presence of Large Traders, 
consistent with Rule 17Ad-22(e)(2)(v).\15\ The Commission also believes 
that Section 5, in memorializing the governance procedures associated 
with the

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performance and review of ICC's risk analyses as specified in Sections 
2 through 4 above; in specifying that the Chief Risk Officer, or a 
designee, performs the review and interpretation of the CGMR, Large 
Trader Report, and CSTRR results; and in documenting the actions to be 
taken if the Risk Department and the Risk Committee deem the risk 
arising from Indirect Participants to be significant, would clearly 
assign governance responsibilities to the Risk Department, the Risk 
Committee, and the Chief Risk Officer in terms of the execution, 
interpretation, review, and reporting of the risk analyses, as well as 
the frequency of performing such responsibilities, consistent with Rule 
17Ad-22(e)(2)(v).\16\
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    \15\ 17 CFR 240.17Ad-22(e)(2)(v).
    \16\ 17 CFR 240.17Ad-22(e)(2)(v).
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    The Commission therefore finds that these aspects of proposed rule 
change would ensure that ICC's governance processes for the Stress 
Testing Framework and the Indirect Participant Risk Policy are clear, 
transparent, and documented accurately, consistent with the 
requirements of Rules 17Ad-22(e)(2)(i) and (v).\17\
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    \17\ 17 CFR 240.17Ad-22(e)(2)(i) and (v).
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C. Consistency With Rule 17Ad-22(e)(4)(vi) Under the Act

    Rule 17Ad-22(e)(4)(vi) requires ICC to establish, implement, 
maintain and enforce written policies and procedures reasonably 
designed to effectively identify, measure, monitor, and manage its 
credit exposures to participants and those arising from its payment, 
clearing, and settlement processes, including by testing the 
sufficiency of its total financial resources available to meet the 
minimum financial resource requirements, as applicable, by conducting 
stress testing of its total financial resources once each day using 
standard predetermined parameters and assumptions; conducting a 
comprehensive analysis on at least a monthly basis of the existing 
stress testing scenarios, models, and underlying parameters and 
assumptions; and reporting the results of its analyses to appropriate 
decision makers at ICC.\18\
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    \18\ 17 CFR 240.17Ad-22(e)(4)(vi).
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    The Commission believes that the proposed changes to the Stress 
Testing Framework, in defining the key term ``financial resources'' and 
clarifying that the related analysis of IM requirements may exclude 
certain charges to provision for losses associated with bid/offer 
exposure upon portfolio liquidation; in specifying that client stress 
testing is executed daily (rather than ``at least monthly''), and also 
referencing the Indirect Participant Risk Policy for further details on 
the analysis; and in adding Appendix A to provide more detail and 
clarity on ICC's stress test methodology by defining key terms and 
underlying formulas and equations used for stress testing, explaining 
how ICC accounts for wrong way risk exposure, and also how ICC 
determines the order of defaulting CP AGs and whether the available 
financial resources are sufficient to cover the hypothetical losses 
associated with the two greatest CP AG uncollateralized losses under 
the extreme but plausible scenarios, would more clearly describe how 
ICC manages its credit exposures to CPs and tests the sufficiency of 
its total financial resources available to cover the default of the two 
greatest CP AGs.
    For all of the foregoing reasons, the Commission finds that these 
aspects of the proposed rule change are consistent with the 
requirements of Rule 17Ad-22(e)(4)(vi).\19\
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    \19\ 17 CFR 240.17Ad-22(e)(4)(vi).
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D. Consistency With Rule 17Ad-22(e)(19) Under the Act

    Rule 17Ad-22(e)(19) requires ICC to establish, implement, maintain 
and enforce written policies and procedures reasonably designed to 
identify, monitor, and manage the material risks to ICC arising from 
arrangements in which firms that are indirect participants in ICC rely 
on the services provided by direct participants to access ICC's 
payment, clearing, or settlement facilities.\20\ The Commission 
believes the proposed Indirect Participant Risk Policy, in describing 
and memorializing the identification, monitoring, and specific risk 
reports and analyses related to Indirect Participants and the presence 
of Large Traders, would formalize ICC's risk management practices and 
governance procedures associated with the performance and review of the 
risk reports and analyses that are specifically designed for 
identifying and monitoring indirect participants that can pose material 
risks to their CPs as direct participants of ICC, and indirectly to 
ICC. The Commission also believes that the proposed changes to the 
Stress Testing Framework, in specifying that individual client legal 
entity stress testing is executed daily (rather than ``at least 
monthly''), would enhance ICC's ability to more readily identify, 
monitor, and manage the level of risks arising from indirect 
participants as clients of CPs who rely on their CPs to access clearing 
and settlement facilities at ICC.
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    \20\ 17 CFR 240.17Ad-22(e)(19).
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    For these reasons, the Commission finds that these aspects of the 
proposed rule change are consistent with the requirements of Rule 17Ad-
22(e)(19).\21\
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    \21\ 17 CFR 240.17Ad-22(e)(19).
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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 \22\ and Rules 17Ad-22(e)(2)(i) and (v), (e)(4)(vi), and (e)(19) 
thereunder.\23\
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    \22\ 15 U.S.C. 78q-1(b)(3)(F).
    \23\ 17 CFR 240.17Ad-22(e)(2)(i) and (v), (e)(4)(vi), and 
(e)(19).
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    It is therefore ordered pursuant to Section 19(b)(2) of the Act 
\24\ that the proposed rule change (SR-ICC-2021-020) be, and hereby is, 
approved.\25\
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    \24\ 15 U.S.C. 78s(b)(2).
    \25\ 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.\26\
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    \26\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25623 Filed 11-23-21; 8:45 am]
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