SECURITIES AND EXCHANGE COMMISSION

Agency decision

Ask Donna

What actually matters in this document.

Text

[Release No. 34-106279; File No. SR-ICC-2026-010]

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

Immediate Effectiveness of Proposed Rule Change Relating to ICC’s Model

Validation Framework and Treasury Operations Policies and Procedures

September 4, 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 August 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 Act3 and paragraph (f)(1) 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.

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 Model

Validation Framework (“MVF”) and the Treasury Operations Policies and Procedures

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

17 CFR 240.19b-4

15 U.S.C. 78s(b)(3)(A).

17 CFR 240.19b-4(f)(2).

(“Treasury Operations Policy”) for the CDS Clearing Service. These revisions do not

require any changes to the ICC CDS Clearing Rules (the “Rules”).5

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

The purpose of the proposed rule change is to amend the MVF and Treasury

Operations Policy for the CDS Clearing Service. The MVF provides assurances that ICC

Models6 for the CDS Clearing Service are performing as expected, in line with their

design objectives and business use. The Treasury Operations Policy describes the policies

and procedures used to support ICC’s Treasury functions for the CDS Clearing Service,

including funds management, cash settlement, collateral management, and investment

strategy. The proposed changes consist of clarification and clean-up changes to the MVF

and Treasury Operations Policy to reflect current practices. ICC believes that such

ICC’s CDS Rules are available on ICC’s public website:

https://www.ice.com/publicdocs/clear_credit/ICE_Clear_Credit_Rules.pdf.

A model refers to a quantitative method, system, or approach that applies statistical, economic,

financial, or mathematical theories, techniques, and assumptions to process input data into

quantitative estimates (“Model”).

changes 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 any applicable

regulatory review or approval process.7 The proposed rule change is described in detail as

follows.

Model Validation Framework

ICC proposes clarifications and clean-up changes to the MVF, including

clarifying its applicability to the CDS Clearing Service and updating references to

existing committees and a working group. Such changes are designed to reflect current

practices. ICC proposes to re-title the MVF from “Model Validation Framework” to

“CDS Clearing Service Model Validation Framework” to clarify its applicability to the

CDS Clearing Service.

ICC proposes revisions to more specifically identify the CDS Risk Committee

and reflect its existing model validation responsibilities in the MVF. In particular, the

MVF assigns various model validation responsibilities to the “Risk Committee”

throughout the document. ICC proposes to replace references to the “Risk Committee”

with more specific references to the “CDS Risk Committee.” These changes do not

represent a departure in existing practice, as the CDS Risk Committee currently performs

these functions. Rather, these changes clarify that such provisions refer to the CDS Risk

Committee, given the recent establishment of the Board Risk Committee, to more clearly

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.

distinguish between the two committees.8 Specifically, ICC proposes to make the

following changes:

•

Under amended Section 1.2, ICC consults with the CDS Risk Committee

when adding or retiring a Model, or adding, enhancing, or retiring its

components (“Model Components”).

•

Under amended Section 1.3, the CDS Risk Committee reviews materiality

classifications and provides feedback as necessary.

•

Under amended Section 2.2, the ICC Risk Oversight Officer (“ROO”)

maintains a list of pre-approved independent model validators, which the

CDS Risk Committee reviews; presents new model validators to the CDS

Risk Committee for consultation; and is responsible for reassessing

selected model validators’ continued independence and presenting this

assessment to the CDS Risk Committee.

•

Under amended Section 2.4, the Model Inventory (i.e., central repository

holding key information about ICC Models, Model Components and

Model Changes9) includes the date the initial validation report was

reviewed by the CDS Risk Committee and the date the CDS Risk

Committee recommended Board approval.

•

Under amended Section 3.2, the ICC Chief Risk Officer (“CRO”)

describes Model Changes to the CDS Risk Committee.

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. SRICC-2025- 006).

For each Model, ICC distinguishes between new, enhanced, and retired Model Components

(collectively “Model Change”).

•

Under amended Subsection 3.2.1.a, the Board approves the final

methodology for a Model Change after review and recommendation by the

CDS Risk Committee.

•

Under amended Subsection 3.2.1.b, ICC obtains approval from the Board

after review by the CDS Risk Committee with respect to changes to

certain elements of ongoing monitoring and validation (“OM&V”).

•

Under amended Subsection 3.2.2.b, ICC, in consultation with the CDS

Risk Committee, may determine certain low priority issues do not reflect a

potential deficiency.

•

Under amended Subsection 3.2.2.c, ICC obtains a no-objection to the

independent validation from the CDS Risk Committee, and the ROO and

CRO (or designee) present the independent validation report to the CDS

Risk Committee.

•

Under amended Section 3.4, the CRO informs the CDS Risk Committee

regarding OM&V results triggering an investigation.

•

Under amended Section 3.5, the ROO, in consultation with the CDS Risk

Committee, sets an established periodicity for independent periodic

review.

•

Under amended Subsection 3.5.2, ICC agrees on timeframes with the CDS

Risk Committee on remediation; ICC, in consultation with the CDS Risk

Committee, may determine that low priority issues do not reflect a

potential deficiency; the ROO and CRO (or designee) present the

independent periodic review report to the CDS Risk Committee for

acceptance; and ICC consults with the CDS Risk Committee regarding

closure of items.

ICC also proposes to incorporate references to a recently established committee

and working group. In amended Section 2.4, ICC would specify that the Model Inventory

includes the date the Board Risk Committee recommended Board approval. Under

amended Subsection 3.2.1, the Board would approve the final methodology for a Model

Change after review and recommendation by the Board Risk Committee, and ICC would

obtain approval from the Board after review by the Board Risk Committee with respect to

changes to certain elements of OM&V. Additionally, under amended Subsection 3.2.1,

Model Changes that rise to a certain level of materiality are subject to peer review

through ICC’s Risk Advisory Working Group. The proposed changes are intended to

memorialize the roles of the Board Risk Committee and Risk Advisory Working Group

with respect to model validation governance.10

Treasury Operations Policies and Procedures

ICC proposes clarifications and clean-up changes to the Treasury Operations

Policy, including clarifying its applicability to the CDS Clearing Service, updating

references to existing committees, and updating a reporting line. Such changes are

intended to reflect current practices. ICC proposes to re-title the Treasury Operations

Policy from “ICE Clear Credit LLC Treasury Operations Policies & Procedures” to “ICE

Clear Credit LLC CDS Clearing Service Treasury Operations Policies & Procedures” to

The Board Risk Committee is tasked with assisting the Board in fulfilling its oversight

responsibilities with respect to the risk management of ICC. See supra note 4. The Risk Advisory

Working Group reviews matters that could materially affect the risk profile of ICC. See Securities

Exchange Act Release No. 101382 (Oct. 18, 2024), 89 FR 84979 (Oct. 24, 2024) (File No. SRICC-2024-009).

clarify its applicability to the CDS Clearing Service. Similarly, ICC proposes to amend

Section I to specify that the Treasury Operations Policy describes the policies and

procedures used to support the Treasury functions of the CDS Clearing Service.

ICC proposes to amend Section II to update a reporting line. The current language

states that ICC’s Treasury function is overseen by the Treasury Director who reports to

the ICC Chief Operating Officer (“COO”). ICC proposes to remove reference to the

COO, as the Treasury Director currently reports directly to the ICC President.

ICC proposes additional changes to reference existing committees. ICC proposes

to amend Section X of the Treasury Operations Policy, which contains the Revision

History and sets out the governance process applicable to the document’s annual review.

The proposed amendments reflect that the Treasury Operations Policy is subject to

review by both the CDS Risk Committee and the Board Risk Committee at least

annually. The amendments add an express reference to the Board Risk Committee and

clarify that the existing reference to the “Risk Committee” refers to the “CDS Risk

Committee”. ICC also proposes changes to Appendix 1 of the Treasury Operations Policy

to specify that the CDS Risk Committee and the Board Risk Committee will review

proposed changes to the investment policy and make recommendations to the Board.

These revisions similarly add an express reference to the Board Risk Committee and

clarify that the existing reference to the “Risk Committee” refers to the “CDS Risk

Committee”. Such changes are intended to reflect existing practices in line with the

existing responsibilities of such committees.11

See supra note 4.

(b)

Statutory Basis

ICC believes that the proposed rule change is consistent with the requirements of

Section 17A of the Act12 and the regulations thereunder applicable to it, including the

applicable standards under Rule 17ad-22.13 In particular, Section 17A(b)(3)(F) of the

Act14 requires that the rule change be designed to promote the prompt and accurate

clearance and settlement of securities transactions and derivative agreements, contracts

and transactions cleared by ICC, to assure the safeguarding of securities and funds in the

custody or control of ICC or for which it is responsible, and to protect investors and the

public interest. The proposed changes to the MVF and the Treasury Operations Policy

consist of clarification and clean-up changes to reflect current practices. Such changes

include clarifying the applicability of these documents to the CDS Clearing Service,

updating references to existing committees and a working group, and updating a

reporting line. ICC believes that having policies and procedures that clearly and

accurately document its model validation practices and Treasury operations are an

important component to ICC’s risk management and support ICC’s ability to maintain

adequate financial resources. The proposed rule change is therefore consistent with the

prompt and accurate clearing and settlement of the contracts 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, within the meaning of

Section 17A(b)(3)(F) of the Act.15

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

17 CFR 240.17ad-22.

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

Id.

The amendments would also satisfy relevant requirements of Rule 17ad-22.16

Rule 17ad-22(e)(2)(i) and (v)17 require ICC to establish, implement, maintain and enforce

written policies and procedures reasonably designed to, in relevant part, provide for

governance arrangements that are clear and transparent and specify clear and direct lines

of responsibility. The proposed amendments update references to existing committees

and a working group, including to clearly and transparently set out the responsibilities of

the CDS Risk Committee, Board Risk Committee, and Risk Advisory Working Group

with respect to model validation and Treasury operations. The proposed revisions also

update a reporting line. These governance arrangements continue to be clear and

transparent, such that information relating to the assignment of responsibilities and the

requisite involvement of existing committees and working groups is clearly documented.

In ICC’s view, the proposed changes are therefore consistent with the requirements of

Rule 17ad-22(e)(2)(i) and (v).18

Rule 17ad-22(e)(4)(vii)19 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 performing a model

validation for its credit risk models not less than annually or more frequently as may be

contemplated by its risk management framework. Rule 17ad-22(e)(6)(vii)20 requires ICC

17 CFR 240.17ad-22.

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

Id.

17 CFR 240.17ad-22(e)(4)(vii).

17 CFR 240.17ad-22(e)(6)(vii).

to establish, implement, maintain, and enforce written policies and procedures reasonably

designed to cover its credit exposures to its participants by establishing a risk-based

margin system that, among other things, requires a model validation for its margin system

and related models to be performed not less than annually, or more frequently as may be

contemplated by its risk management framework. Rule 17ad-22(e)(7)(vii)21 requires ICC

to establish, implement, maintain, and enforce written policies and procedures reasonably

designed to effectively measure, monitor, and manage the liquidity risk that arises in or is

borne by ICC, including measuring, monitoring, and managing its settlement and funding

flows on an ongoing and timely basis, and its use of intraday liquidity by, among other

things, performing a model validation of its liquidity risk models not less than annually or

more frequently as may be contemplated by its risk management framework. As

described above, the proposed amendments clarify the applicability of the MVF to the

CDS Clearing Service and update references to existing committees and a working group.

ICC believes that such changes continue to ensure that ICC receives independent and

effective model validations and that ICC continues to perform model validations in

accordance with applicable regulations. Therefore, ICC believes the proposed rule change

is consistent with the requirements of Rule 17ad-22(e)(4)(vii), (e)(6)(vii) and (e)(7)(vii). 22

17 CFR 240.17ad-22(e)(7)(vii).

17 CFR 240.17ad-22(e)(4)(vii), (e)(6)(vii) and (e)(7)(vii).

(B)

Clearing Agency’s Statement on Burden on Competition

ICC does not believe the proposed amendments will have any impact, or impose

any burden, on competition not necessary or appropriate in furtherance of the purposes of

the Act. As discussed above, the proposed rule change consists of clarification or cleanup changes to the MVF and Treasury Operations Policy to reflect current practices. The

changes 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 will 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 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 Act23 and paragraph (f) of Rule 19b-424 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 investors, or otherwise in

furtherance of the purposes of the Act.

15 U.S.C. 78s(b)(3)(A).

17 CFR 240.19b-4(f)(2).

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

(http://www.sec.gov/rules/sro.shtml); or

•

Send an e-mail to rule-comments@sec.gov. Please include File Number SR-ICC2026-010 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-2026-010. 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 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

All submissions should refer to File Number SR-ICC-2026-010 and should be

submitted on or before [INSERT DATE 21 DAYS AFTER PUBLICATION IN THE

FEDERAL REGISTER].

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

delegated authority.25

Sherry R. Haywood,

Assistant Secretary.

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

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.