On Dec. 11, ICE CEU amended investment management procedures.
ICE CEU self-certified amendments to CFTC on investment management procedures.
Makes certain updates and clarifications relating to investment limitations, for both direct investments and investments through reverse repurchase agreements.
On the same day, CFTC issued confirmation of receipt of the self-certification by ICE CEU, confirming that it had begun its 10-day review of all the materials as submitted.
Amendment Highlights
Revises the discussion of the Procedures’ focus on safeguarding principal cash to include cash payments from clearing members (as well as margin and other amounts).
Various clarifications and updates will be made to the Table of Authorized Investments and Concentration Limits for Cash from CMs, ICEU capital and from Skin In The Game.
Sovereign debt of Austria, Finland, Luxembourg added to list of eligible investments
EU sovereign debt and US, UK or EU agency debt require rating from only one NRSRO.
An error in the minimum short-term ratings for reverse repo counterparties will also be corrected, and certain clarifications will be made to other rating references.
Adds a table to Self-Directed Investment Program; approved limit for cash at 3.5bn.
Reliance on a specified short-term as well as long-term rating will be permitted.
The reference to haircuts will also be replaced by the term collateralization level.
For repo activity facing central banks, central clearing counterparties and highly rated sovereigns, collateralization levels will be negotiated for the relevant counterparty.
Minor amendment will also be made to provisions relating to monitoring of breaches of concentration limits and investment criteria to reference management threshold alerts.
Effectiveness
Change effective first day following tenth business day after submission, Dec. 26, 2024
