2026-02333Notice

ICE Clear Credit LLC; Order Granting an Application for Registration as a Clearing Agency Under Section 17A of the Securities Exchange Act of 1934

Published Date: 2/6/2026

Notice

Summary

ICE Clear Credit LLC just got the green light to officially handle clearing services for U.S. Treasury securities, adding to its current role with credit-default swaps. This means ICC will now help make big government bond trades safer and smoother starting soon, affecting banks and traders who deal with these securities. The change boosts market stability without extra costs for the public and kicks in right after the approval date.

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

ICC Approved to Clear U.S. Treasuries

The SEC granted ICE Clear Credit LLC (ICC) registration to provide central counterparty clearing services for transactions involving U.S. Treasury securities. This approval follows ICC's Form CA-1 filing on August 1, 2025 and the Commission's order dated January 30, 2026, and applies to ICC's new "Treasury Business."

Margin Rules Require 99% VaR Coverage

ICC will collect Initial Margin for House and Client-Related Positions and will determine margin based on 99% Value-at-Risk equivalent risk measures, with additional liquidity and concentration requirements. Clients can choose between different net or gross margin account types and client-funded margin will be legally segregated from house margin.

Settlement Fails and Fail Charges

If a party fails to deliver a settling security or pay for a security, ICC can require the failing party to deliver on the next ICC Settlement Day, charge a Fail Charge (amount determined by ICC), require reimbursement of actual costs, accept delivery and require the failing party to cover losses and financing costs, or terminate and cash-settle the obligation using ICC's price. ICC may apply the failing party's Initial Margin to cover amounts owed.

Net DvP/RvP Settlement Mechanics

ICC will calculate net settlement obligations each business day by CUSIP and settle securities and cash on a delivery-versus-payment / receive-versus-payment basis at ICC's end-of-day price with a separate Variation Payment to align net cashflows with trade price. Clients may elect to settle directly with ICC or through a Treasury Participant.

Participant Representation Triggers Governance Rights

Under ICC's rules, after the "Treasury Governance Commencement Date"—defined as the first annual board election occurring after the first two consecutive calendar quarters following June 30, 2026 in which (a) Treasury Business transaction‑based revenue in each quarter is at least 20% of ICC's aggregate transaction revenue and (b) the arithmetic average Treasury Clearing Market Share across those two quarters is at least 10%—the Treasury Risk Committee will have authority to designate two managers for election to ICC's Board (including an independent manager).

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Key Dates

Effective Date
Published Date
1/30/2026
2/6/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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