[Federal Register Volume 91, Number 132 (Monday, July 13, 2026)]
[Notices]
[Pages 43012-43014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-14016]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105858; File No. SR-ICC-2026-007]
Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change Relating to
ICC's Fee Schedule
July 8, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ and Rule 19b-4,\2\ notice is hereby given that on June 25,
2026, ICE Clear Credit LLC (``ICC'' or ``ICE Clear Credit'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared primarily by ICC. ICC filed the proposed rule change
pursuant to Section 19(b)(3)(A) of the Act \3\ and paragraph (f)(2) of
Rule 19b-4 thereunder,\4\ such that the proposed rule change was
immediately effective upon filing with the Commission. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(2).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The principal purpose of the proposed rule change is to modify its
Client Volume Incentive Program within its credit default swap
(``CDS'') client fee schedule (the ``client fee schedule'') for the CDS
Clearing Service. These revisions do not require any changes to the CDS
Clearing Participant fee schedule \5\ or the ICC CDS Clearing Rules.\6\
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\5\ Clearing Participant fee details available at https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Fees_Clearing_Participant.pdf.
\6\ ICC's CDS Clearing Rules are available on ICC's public
website at https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
In its filing with the Commission, ICC 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. ICC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.
(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change
(a) Purpose
ICC proposes to modify its Client Volume Incentive Program within
ICC's client fee schedule. ICC maintains a client fee schedule \7\ that
is publicly available on its website, which ICC proposes to update in
connection with the proposed amendments to the Client Volume Incentive
Program. Such proposed changes to the Client Volume Incentive Program
are set forth in Exhibit 5 and described in detail as follows. ICC
proposes to make such changes effective following any applicable
regulatory review or approval process.\8\
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\7\ Client fee details available at: https://www.theice.com/publicdocs/clear_credit/ICE_Clear_Credit_Fees.pdf. As specified, all
fees are charged directly to a client's Clearing Participant.
\8\ The proposed rule change is filed for immediate
effectiveness but will not be implemented until the change is
certified in accordance with Commodity Futures Trading Commission
Regulation 40.6.
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[[Page 43013]]
Currently, clearing fees applicable to clients of Clearing
Participants are charged in accordance with the product, amount and
currency set out in the client fee schedule and subject to any
incentive programs or fee discounts described in the client fee
schedule. In particular, the Client Volume Incentive Program in the
client fee schedule applies automatically to all clients of Clearing
Participants, without further action by clients or Clearing
Participants, and provides a tiered discount schedule based on client
fees billed during the calendar year. Specifically, for any client with
annual billed fees across all ICC CDS instrument categories (i.e.,
index CDS, single name CDS, and index option CDS) that exceed U.S.
dollar (``USD'') equivalent of $1 million, such client is entitled to a
fee discount as follows: (i) for billed annual fees greater than $1
million USD equivalent and less than or equal to $6.4 million USD
equivalent, a progressive discount from 1% to 90%: the discount
percentage increases by 1% for each $60,000 in billed client fees; \9\
and (ii) for billed annual fees greater than $6.4 million USD
equivalent, a 90% discount. The Client Volume Incentive Program applies
to client clearing activity only, and Clearing Participants are not
eligible to participate in the program.
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\9\ As an example, a client that is billed a total of
$1,120,000.00 in fees would be entitled to a 1% discount for the
first $60,000 in fees over $1 million (or $600) and a 2% discount
for the second $60,000 in fees over $1 million (or $1,200), for a
total discount of $1,800.
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The proposed changes to the Client Volume Incentive Program are
designed to increase the discount level by amending the discount
schedule and introducing a 100% discount on billed annual fees greater
than $6.94 million USD equivalent. Specifically, for any client with
annual billed fees across all ICC CDS instrument categories (i.e.,
index CDS, single name CDS, and index option CDS) that exceed USD
equivalent of $1 million, such client is entitled to a fee discount as
follows: (i) for billed annual fees greater than $1 million USD
equivalent and less than or equal to $6.94 million USD equivalent, a
progressive discount from 1% to 100%: the discount percentage increases
by 1% for each $60,000 in billed client fees; and (ii) for billed
annual fees greater than $6.94 million USD equivalent, a 100% discount.
The Client Volume Incentive Program will continue to apply to client
clearing activity only, and Clearing Participants are not eligible to
participate in the program.
(b) Statutory Basis
ICC believes that the proposed changes are consistent with the
requirements of the Act, including Section 17A of the Act \10\ and the
regulations thereunder applicable to it. More specifically, the
proposed rule change establishes or changes a member due, fee or other
charge imposed by ICC under Section 19(b)(3)(A)(ii) of the Act \11\ and
Rule 19b-4(f)(2) \12\ thereunder. ICC believes the proposed rule change
is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to ICC, in particular, to Section
17A(b)(3)(D),\13\ which requires that the rules of the clearing agency
provide for the equitable allocation of reasonable dues, fees, and
other charges among its participants.
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\10\ 15 U.S.C. 78q-1.
\11\ 15 U.S.C. 78s(b)(3)(A)(ii).
\12\ 17 CFR 240.19b-4(f)(2).
\13\ 15 U.S.C. 78q-1(b)(3)(D).
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ICC believes that the proposed updated discount levels in the
client fee schedule have been set at an appropriate level. In
determining the appropriate discount level and program structure, ICC
took into account factors such as client clearing volume, related
revenue, costs and expenses, and the goal of increasing market
participation in the clearing service, including the expected impacts
of different fee levels. In ICC's view, its client fees, after taking
into account the updated discount under the incentive program, will be
reasonable and appropriate for its business as the discounts take into
account anticipated volumes, costs and expenses, and revenues under
each contract type, and they consider current and past market activity
as well as anticipated market activity with respect to clearing CDS
contracts at ICC. The Client Volume Incentive Program continues to be
designed to encourage the clearing of contracts at ICC by clients while
properly compensating ICC for the risks, costs and expenses of clearing
CDS contracts.
Moreover, the updated discount will be available to all clients
clearing contracts at ICC, based on their clearing activity. The Client
Volume Incentive Program under the amended client fee schedule
automatically, and without further action by clients or Clearing
Participants, applies to all clients. ICC's fee schedules, including
the proposed changes to the incentive program, will continue to be
transparent and to apply equally to market participants clearing
indexes, single names, and index option CDS contracts at ICC.
Therefore, the proposed rule change provides for the equitable
allocation of reasonable dues, fees and other charges among
participants, within the meaning of Section 17A(b)(3)(D) of the
Act.\14\ ICC therefore believes that the proposed rule change is
consistent with the requirements of Section 17A of the Act \15\ and the
regulations thereunder applicable to it and is appropriately filed
pursuant to Section 19(b)(3)(A) of the Act \16\ and paragraph (f)(2) of
Rule 19b-4 \17\ thereunder.
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\14\ 15 U.S.C. 78q-1(b)(3)(D).
\15\ 15 U.S.C. 78q-1.
\16\ 15 U.S.C. 78s(b)(3)(A).
\17\ 17 CFR 240.19b-4(f)(2).
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(B) Clearing Agency's Statement on Burden on Competition
ICC does not believe the proposed rule change would have any
impact, or impose any burden, on competition not necessary or
appropriate in furtherance of the purpose of the Act. As discussed
above, the proposed changes to ICC's client fee schedule modify the
Client Volume Incentive Program for clearing all categories of CDS
contracts at ICC and which continues to be available to all clients
based on their clearing activity. The implementation of such changes
does not preclude other market participants from offering similar
incentive programs. Moreover, ICC does not believe that the amendments
would adversely affect the cost of clearing for clients, the ability of
market participants to access clearing services, or the market for
cleared services generally. Accordingly, ICC does not believe the
amendments impose any burden on competition not necessary or
appropriate in furtherance of the purpose of the Act.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Written comments relating to the proposed rule change have not been
solicited or received. ICC will notify the Commission of any written
comments received by ICC.
III. Date of Effectiveness of the Proposed Rule Change
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \18\ and paragraph (f) of Rule 19b-4 \19\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of
[[Page 43014]]
investors, or otherwise in furtherance of the purposes of the Act.
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\18\ 15 U.S.C. 78s(b)(3)(A).
\19\ 17 CFR 240.19b-4(f)(2).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-ICC-2026-007 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to File Number SR-ICC-2026-007. 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 (https://www.sec.gov/rules/sro.shtml). Copies of such filings will be available for inspection and
copying at the principal office of ICE Clear Credit and on ICE Clear
Credit's website at https://www.ice.com/clear-credit/regulation.
Do not include personal identifiable information in submissions;
you should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-ICC-2026-007 and
should be submitted on or before August 3, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-14016 Filed 7-10-26; 8:45 am]
BILLING CODE 8011-01-P