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SEC issues rules for securities clearing agencies

  • SEC document Image

Sep 29, 2016

The SEC has issued a final rule, “Standards for Covered Clearing Agencies,” and a proposed rule, “Definition of ‘Covered Clearing Agency.’”

The final rule establishes “enhanced standards for the operation and governance” of covered clearing agencies. The final rule’s scope includes “SEC-registered securities clearing agencies that have been designated as systemically important by the Financial Stability Oversight Council . . . or that are involved in more complex transactions.” Such clearing agencies “will be subject to new requirements regarding, among other things, their financial risk management, governance, recovery planning, operations, and disclosures to market participants and the public.” The final rule will become effective 60 days after the date of its publication in the Federal Register.

Under the proposed rule, a covered clearing agency would be defined as “a registered clearing agency that provides the services of a central counterparty . . . , central securities depository . . . , or a securities settlement system . . . .” The proposal would also define various terms related to covered clearing agencies.

For more information, see the press release on the SEC’s Web site.

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