Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of Filing of Proposed Rule Change Relating to the Operational Risk Management Framework

[Federal Register Volume 91, Number 109 (Monday, June 8, 2026)]

[Notices]

[Pages 34681-34684]

From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ]

[FR Doc No: 2026-11382]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105606; File No. SR-ICC-2026-004]

Self-Regulatory Organizations; ICE Clear Credit LLC; Notice of

Filing of Proposed Rule Change Relating to the Operational Risk

Management Framework

June 3, 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 May 29,

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. The Commission is publishing this

notice to solicit comments on the proposed rule change, security-based

swap submission, or advance notice from interested persons.

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\1\ 15 U.S.C. 78s(b)(1).

\2\ 17 CFR 240.19b-4.

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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 revise the

Operational Risk Management

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Framework (``ORMF''). These revisions do not require any changes to the

ICC Credit Default Swap (``CDS'') or U.S. Treasury (``Treasury'')

Clearing Rules.\3\

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\3\ ICC's CDS and Treasury Clearing Rules are available on ICC's

public website at https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf and https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Treasury_Clearing_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,

security-based swap submission, or advance notice and discussed any

comments it received on the proposed rule change, security-based swap

submission, or advance notice. 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, Security-Based Swap Submission, or

Advance Notice

(a) Purpose

ICC proposes to revise its ORMF. The ORMF details ICC's dynamic and

independent program of risk assessment and oversight that aims to

reduce operational incidents, encourage process, and control

improvement, bring transparency to operational performance standard

monitoring, and fulfill regulatory obligations. The proposed revisions

to the ORMF generally consist of clarifications, updates to reflect

current practices at ICC, and minor clean-up changes. ICC believes such

proposed revisions will facilitate the prompt and accurate clearance

and settlement of securities transactions and derivative agreements,

contracts, and transactions for which it is responsible. ICC proposes

to make such changes effective following Commission approval of the

proposed rule change. The proposed revisions are described in detail as

follows.

ICC proposes minor terminology updates to improve clarity in

Section I, which describes ICC's operational risk lifecycle. The goal

of the operational risk lifecycle is to actively identify, assess,

monitor, mitigate and report on all plausible sources of operational

risk. Accordingly, relevant processes associated with the operational

risk lifecycle are currently organized under the following categories:

identify, assess, monitor, mitigate, and report. ICC proposes to revise

and replace the terminology to explicitly reference risk and add a new

category of ``risk management'' to replace the existing ``mitigate''

category. As amended, relevant processes associated with the

operational risk lifecycle would be organized under the following in

the text and in the Operational Risk `Lifecycle' chart in Section I:

risk identification, risk assessment, risk management, risk monitoring,

and risk reporting. Under the amended language, the ``risk assessment''

category would also include examining exposure in terms of likelihood

and impact, including the effectiveness of existing controls that

mitigate identified risks.

This operational lifecycle is used to implement the risk assessment

and performance objectives setting and monitoring processes, and

accordingly, ICC proposes corresponding terminology revisions to

describe such processes in Section I. For instance, ICC proposes to

describe the risk assessment process of the operational lifecycle in

Section I as actively identifying, assessing, managing, and monitoring

all plausible sources of operational risk and ensuring policies and

procedures are in place to address the presented risk scenarios. In

general, the purpose of the revisions is to ensure that the ORMF

clearly reflects the description of the operational life cycle. In

Section I.A, under the ``Risk Identification'' category, ICC proposes

to replace a general reference to ``treasury'' with a more specific

reference to ``movement of funds'' when describing clearing processes.

ICC proposes minor updates to the ``Risk Assessment'' category to

ensure its summary of the applicable Risk Assessment guidelines is

consistent with the ICE, Inc. Enterprise Risk Management Policy (``ERM

Policy'') that sets out those guidelines, including removing reference

to ``design'' and updating reference to ``control remediation

recommendation, and key control validation'' as topics addressed in

such policy. ICC also proposes to rename the ``Mitigate'' category into

the ``Risk Management'' category. ICC proposes minor edits to Sections

I.A and I.B to replace verbs with nouns (e.g., replace ``identify''

with ``identification''), and to replace the ``mitigate'' category with

``management'', including removing references to ``mitigate'' within

its description.

ICC proposes updates to Section II.B. describing the management of

risks from relationships with service providers for core services. ICC

proposes to include reference to procedures that ICC maintains related

to oversight, management and review of ICC's agreements governing the

outsourcing of services by ICC to its affiliates. ICC proposes

additional edits to reorganize a sentence for clarity regarding an

identified ICC service provider for core services. Additional edits

replace business services with administrative services to align with a

new agreement executed by ICC. ICC proposes clarifications of such

administrative services to include facilities, corporate treasury, and

internal audit. In Section II.C, ICC further proposes to clarify there

are four identified core clearing services and to remove reference to

``CDS'' so that such clearing services are not product specific. ICC

intends for this ORMF to apply to its new Treasury clearing service as

well as its existing CDS clearing service.\4\

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\4\ ICC filed an application on Form CA-1 (``Application'')

under Section 17A of the Securities Exchange Act of 1934 (the

``Act'') (15 U.S.C. 78q-1) with the Securities and Exchange

Commission (``Commission'') to register as a clearing agency to

provide central counterparty services for transactions involving

Treasury securities on August 1, 2025. Notice of ICC's Application

was published in the Federal Register on August 21, 2025. See

Securities Exchange Act Release No. 103727 (August 18, 2025), 90 FR

40879 (August 21, 2025) (File No. 600-45). The Commission issued an

order granting ICC's Application for registration as a clearing

agency to provide central counterparty services for transactions

involving U.S. Treasury securities on January 30, 2026. See

Securities Exchange Act Release No. 104762 (January 30, 2026), 91 FR

5528 (February 6, 2026) (File No. 600-45).

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ICC proposes to further amend Section II. ICC proposes minor

updates to improve clarity in Section II.E., which discusses the

Information Security Department,\5\ which is responsible for risk

analysis and oversight of information security and physical security/

environmental controls. ICC proposes amendments regarding

responsibilities of the Operational Oversight Committee (``OOC''),

which acts as the forum to discuss changes and improvements to the

services provided by the Parent. The proposed changes specify the OOC's

receipt and review of the corporate information security policy and

updates related to information security metrics, remediation

activities, security incidents, and threat intelligence. Additional

edits update the ICC members of the OOC to include the ICC President

and ICC Chief Operating Officer. In Section II.F., which outlines ICC's

technology control functions, ICC proposes to remove a specific

reference to CDS clearing, as this ORMF will also apply to ICC's

Treasury clearing service,

[[Page 34683]]

and to update a policy reference to be current.

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\5\ The Information Security Department is an Intercontinental

Exchange, Inc. (``ICE, Inc.'' or ``Parent'') department.

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ICC proposes revisions of Section III regarding the administration

of the ORMF. ICC proposes to include references to the Board Risk

Committee with respect to the annual review of the ORMF and any

material amendments.\6\

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\6\ ICC previously filed a proposed rule change to establish the

Board Risk Committee. See Securities Exchange Act Release No. 103161

(May 30, 2025), 90 FR 23970 (June 5, 2025) (File No. SR-ICC-2025-

006).

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ICC also proposes minor language clarifications and additional

grammatical clean-up changes throughout the document that do not change

the substance of the ORMF. These clean-up changes include deleting

unnecessary definite articles, replacing conjunctions with commas,

correcting verb tense and usage (e.g., changing ``do occur'' to

``occur''), and removing unnecessary prepositions throughout the

document. ICC also proposes a minor edit to Section II.A to correct a

typographical error to reference ``these business processes'' instead

of ``these business process.''

(b) Statutory Basis

ICC believes that the proposed changes are consistent with the

requirements of Section 17A of the Securities Exchange Act of 1934

(``Act'') \7\ and the regulations thereunder applicable to it,

including the applicable standards under Rule 17Ad-22.\8\ In

particular, Section 17A(b)(3)(F) of the Act \9\ requires that the rule

change be consistent with the prompt and accurate clearance and

settlement of securities transactions and derivative agreements,

contracts and transactions cleared by ICC, the safeguarding of

securities and funds in the custody or control of ICC or for which it

is responsible, and the protection of investors and the public

interest. ICC believes that 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)(F),\10\ because

the proposed rule change enhances ICC's ability to control its

operational risk by ensuring that the ORMF clearly, transparently, and

accurately reflects ICC's operational risk lifecycle and associated

governance practices. This operational lifecycle is used to implement

the risk assessment and performance objectives setting and monitoring

processes, and accordingly, ICC proposes corresponding terminology

revisions to describe such processes. ICC proposes to revise the

labeling across categories to improve consistency, including by

incorporating risk-based modifiers, and to add a new category of ``risk

management'' to replace the existing ``mitigate'' category.

Additionally, the proposed changes to the ``Risk Assessment'' component

ensure its summary of the applicable Risk Assessment guidelines is

consistent with the ERM Policy which sets out those guidelines. As

such, the proposed rule change is designed to promote the prompt and

accurate clearance and settlement of securities transactions,

derivatives agreements, contracts, and transactions; 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; and, in general, to protect investors and the public

interest within the meaning of Section 17A(b)(3)(F) of the Act.\11\

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\7\ 15 U.S.C. 78q-1.

\8\ 17 CFR 240.17ad-22.

\9\ 15 U.S.C. 78q-1(b)(3)(F).

\10\ Id.

\11\ Id.

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The amendments would also satisfy relevant requirements of Rule

17Ad-22.\12\ Rule 17Ad-22(e)(2)(i) and (v) \13\ requires each covered

clearing agency 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. The proposed revisions to the ORMF

enhance ICC's ability to satisfy these requirements by clarifying the

operational risk lifecycle and incorporating updates relating to the

review of the ORMF by the Board Risk Committee. Further, ICC's proposed

amendments regarding responsibilities of the OOC, which acts as the

forum to discuss changes and improvements to the services provided by

the Parent, specify the OOC's receipt and review of the corporate

information security policy and updates related to information security

metrics, remediation activities, security incidents, and threat

intelligence. Additional edits update the ICC members of the OOC. Such

changes improve the accuracy and transparency of ICC's governance

arrangements and improve the clarity of the lines of responsibility. In

ICC's view, the proposed changes are therefore consistent with the

requirements of Rule 17Ad-22(e)(2)(i) and (v).\14\

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\12\ 17 CFR 240.17Ad-22.

\13\ 17 CFR 240.17ad-22(e)(2)(i) and (v).

\14\ Id.

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Rule 17Ad-22(e)(21) \15\ requires each covered clearing agency to

establish, implement, maintain, and enforce written policies and

procedures reasonably designed to be efficient and effective in meeting

the requirements of its participants and the markets it serves, and

have its management regularly review the efficiency and effectiveness

of its (i) clearing and settlement arrangements; (ii) operating

structure, including risk management policies, procedures, and systems;

(iii) scope of products cleared or settled; and (iv) use of technology

and communication procedures. As noted above, the operational risk

lifecycle is used to implement ICC's risk assessment and performance

objectives setting and monitoring processes. The proposed revisions

more clearly set out the operational risk lifecycle thereby promoting

ICC's ability to be efficient and effective in meeting the requirements

of its participants and the markets it serves. Further, the proposed

revisions clarify responsibilities regarding review of risk assessments

and operational risk reporting to appropriate parties, which would

promote management's regular review of the efficiency and effectiveness

of ICC's clearing and settlement arrangements, operating structure,

product scope, and use of technology and communication procedures. The

proposed rule changes are thus reasonably designed to meet the

requirements of Rule 17Ad-22(e)(21).\16\

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\15\ 17 CFR 240.17Ad-22(e)(21).

\16\ 17 CFR 240.17Ad-22(e)(21).

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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. The proposed revisions to

the ORMF generally consist of clarifications, updates to reflect

current practices at ICC, and minor clean-up changes. The proposed

changes to revise the ORMF will apply uniformly across all market

participants. ICC does not believe these amendments would affect the

costs of clearing or the ability of market participants to access

clearing. Therefore, ICC does not believe the proposed rule change

would impose any burden on competition that is inappropriate in

furtherance of the purposes of the Act.

(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. ICC will notify the Commission of any written

comments

[[Page 34684]]

received with respect to the proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for

Commission Action

Within 45 days of the date of publication of this notice in the

Federal Register or within such longer period up to 90 days (i) as the

Commission may designate if it finds such longer period to be

appropriate and publishes its reasons for so finding or (ii) as to

which the self-regulatory organization consents, the Commission will:

(A) by order approve or disapprove such proposed rule change, or

(B) institute proceedings to determine whether the proposed rule

change should be disapproved.

IV. Solicitation of Comments

Interested persons are invited to submit written data, views, and

arguments concerning the foregoing, including whether the proposed rule

change is consistent with the Act. Comments may be submitted by any of

the following methods:

Electronic Comments

Use the Commission's internet comment form ( https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking );

or

Send an email to [email protected] . Please include

file number SR-ICC-2026-004 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-2026-004. 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 of submission. The Commission will post all

comments on the Commission's internet website ( https://www.sec.gov/rules-regulations/self-regulatory-organization-rulemaking ). Copies of

the filing 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-2026-004 and should

be submitted on or before June 29, 2026.

For the Commission, by the Division of Trading and Markets,

pursuant to delegated authority.\17\

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

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Sherry R. Haywood,

Assistant Secretary.

[FR Doc. 2026-11382 Filed 6-5-26; 8:45 am]

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