FR 2021-03217

The document from the Federal Register pertains to a proposed rule change by ICE Clear Europe Limited, filed with the Securities and Exchange Commission (SEC). The proposed changes aim to update the Price Submission Disciplinary Framework, renaming it to the "Price Submission Disciplinary Procedure," and modify how missed price submissions are managed. These proposed amendments are part of efforts to enhance the governance, procedures, and clarity of the disciplinary process related to price submissions.

General Summary

The primary focus of the amendments is to refine the existing procedures that ICE Clear Europe uses to handle missed price submissions from Clearing Members. One notable change is the introduction of an annual one-time waiver that Clearing Members can avail themselves of in case they fail to submit prices on time due to technical issues. Previously, members were allowed only one such waiver throughout their membership. The amendments also extend the review period for these issues, which allows more time for thorough evaluations, and align the governance procedures more closely with those of other Clearing House protocols.

Significant Issues or Concerns

One prominent issue with the document is its use of complex legal language and numerous regulatory references, such as "Rule 19b-4." These elements might pose challenges for individuals without specialized legal knowledge or experience in financial regulations. While the document outlines the procedural changes, the absence of specific real-world examples could leave readers wondering how this will practically affect the Clearing Members. Furthermore, the details regarding fixed cash assessments and the waiver process for missed submissions are presented in dense language, which could benefit from simplification or examples for improved comprehension.

Another concern is the lack of information regarding any possible costs associated with implementing these amendments. Without this detail, understanding the broader financial implications for stakeholders is difficult. Additionally, the document leans heavily on procedural, governance, and compliance terminology without providing clear definitions, potentially leading to misinterpretations.

Impact on the Public

While the document primarily targets financial and regulatory professionals, there are broader implications for the general public. A more robust and transparent procedure for price submissions ensures that financial markets run smoothly, maintaining confidence among investors and the wider community. Consistent and accurate price submissions are crucial for the stability and integrity of financial systems, and thus, any changes to these processes indirectly affect all participants in the financial landscape.

Impact on Specific Stakeholders

For Clearing Members, the proposed changes offer a more structured and forgiving approach to handling technical failures related to price submissions. The introduced waivers allow some leeway without the risk of immediate penalties, although it emphasizes that only specific cases will qualify. This could be seen positively as it balances discipline with flexibility.

On the downside, the procedural and legal complexities outlined could create an administrative burden for Clearing Members who must ensure compliance with the updated rules. There are also potential implications for cost, although the document does not elucidate these.

In summary, while the procedural amendments appear designed to streamline disciplinary actions and align ICE Clear Europe's practices with broader governance protocols, their complex nature and absence of detailed practical examples might limit their immediate accessibility to the general public and warrant careful consideration by affected Clearing Members.