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SEC proposes rules for covered clearing agencies

  • SEC (US Securities and Exchange Commission) Image

Mar 13, 2014

The SEC has issued a proposed rule that establishes additional regulations for "covered clearing agencies" regarding their financial risk management, operations, governance, and disclosures.

Specifically, the proposed rule affects SEC-registered clearing agencies that are deemed systemically important by the Financial Stability Oversight Council or perform complex transactions, such as those involved in securities-based swaps. The proposal, which amends Section 17A of the Securities Exchange Act of 1934, would establish requirements for covered clearing agencies regarding:

  • “General organization (including legal basis, governance and comprehensive risk management framework)
  • Financial risk management (including credit risk, collateral, margin, and liquidity risk)
  • Settlement (including settlement finality, money settlements and physical deliveries)
  • Central securities depositories and settlement systems
  • Default management (including default rules and procedures and segregation and portability)
  • Business and operational risk management (including general business risk, custody and investment risks and operational risk)
  • Access (including access and participation requirements, tiered participation arrangements and links)
  • Efficiency (including efficiency and effectiveness and communication procedures and standards)
  • Transparency.”

Comments on the proposal are requested by May 27, 2014.

For more information, see the following items on the SEC’s Web site:

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