margin collateral, guaranty fund contributions, and other monies, ICE Trust will establish a program to monitor payment concentration among settlement banks, evaluate the impact of settlement-bank failure, and develop measures to mitigate associated risks.
The Board has also considered the legal framework within which ICE Trust would operate as a CCP, including the planned contractual arrangements and applicable governing statutes and regulations with respect to the novation process, netting arrangements, settlements, and procedures in the event of a participant default. The Board also has considered information regarding the legal implications of cross-border participation in ICE Trust. In addition, the Board has reviewed ICE Trust’s proposed operational and information technology infrastructure, including its business continuity plans and the adequacy of its management controls.
Based on this review and all the facts of record, the Board has concluded that the general character of ICE Trust’s management is consistent with approval of the proposal. Other Considerations
In considering whether the corporate powers exercised by ICE Trust are consistent with the purposes of the Act, the Board notes that ICE Trust’s proposed
activities are permissible for a state member bank under the Act’s applicable provisions.16 [Footnote 16. See 12 U.S.C. §§ 330 and 335. End footnote 16.] Under Regulation H, ICE Trust would be required to obtain the Board’s approval before changing the general character of its business or the scope of the corporate powers it exercises.17 [Footnote 17. 12 CFR 208.3(d)(2). End footnote 17.] In addition, ICE Trust has provided the Board with several commitments intended to ensure that the Board will have adequate enforcement authority over ICE Trust as an uninsured state member bank.18 [Footnote 18. ICE Trust has stipulated that it would be subject to the supervisory, examination, and enforcement authority of the Board under the Federal Deposit Insurance Act as if ICE Trust were an insured depository institution for which the Board is the appropriate federal banking agency under that act. End footnote 18.] For these reasons and based on a review of