ICE Clear Credit proposes new compliance procedures for Treasury trade submissions

On November 2, 2026, ICE Clear Credit LLC filed with the SEC a proposed rule change (Release No. 34-106833; File No. SR-ICC-2026-014) to adopt the ICE Clear Credit Procedures for Monitoring Compliance with the Eligible Secondary Market Transaction Submission Requirements (the "ESMT Procedures"). The notice, published in Federal Register Volume 91, Number 216 on November 10, 2026 (pages 72601-72603, FR Doc No: 2026-22850), seeks comment and states that the procedures will become effective upon Commission approval.

The ESMT Procedures supplement the existing Treasury Clearing Rules and consist of three sections. Section 2.1 reiterates Treasury Rule 303, requiring each Treasury Participant (TP) to submit eligible secondary market transactions to ICC or another SEC-registered covered clearing agency promptly after execution. Section 2.2 obligates a TP to notify ICC in writing within 30 calendar days of learning of any non-compliance, to provide factual details and remediation plans, and to file an annual attestation confirming compliance for the preceding 12 months. ICC also reserves the right to conduct periodic reviews of trade submissions, including rejected or re-submitted transactions.

Under Section 3, ICC may initiate investigations of alleged violations pursuant to Treasury Rule 701(a) and conduct them in accordance with Treasury Rule 702. When a potential violation is identified, ICC staff may consider mitigating factors - such as self-reporting, prior history, remediation efforts, and cooperation - before issuing a warning letter, negotiating a settlement (including fines), or recommending penalties to the Business Conduct Committee or its Review Subcommittee (Treasury Rule 703).

ICC asserts that the rule change satisfies the statutory requirements of Section 17A(b)(3)(F) of the Securities Exchange Act of 1934 (15 U.S.C. 78q-1(b)(3)(F)) and the applicable standards under Rule 17ad-22 (17 CFR 240.17ad-22). The agency notes that the procedures are intended to promote prompt and accurate clearance and settlement of Treasury securities and to protect investors and the public interest.