Three securities clearing organizations filed proposals for rule changes with the SEC to raise capital requirements for their members.
In separate filings, the Fixed Income Clearing Corporation, the Depository Trust Company and the National Securities Clearing Corporation proposed changes to their respective rules, bylaws and procedures to raise the capital requirements of their members. The organizations highlighted the need for adjustments in light of (i) changes in financial markets and regulations, (ii) exposure to market volatility, and (iii) the designation of these firms as systematically important financial market utilities (or "SIFMUs"). Clearing organizations are permitted to condition member participation on meeting net capital requirements under Exchange Act Section 17A(b)(4)(B). The organizations all noted that the capital requirements have not been updated in more than 20 years.
The organizations also proposed changes to their watch list procedures.
Primary Sources
- Federal Register: Self-Regulatory Organizations; the Depository Trust Company; Notice of Filing of Proposed Rule Change to Enhance Capital Requirements and Make Other Changes
- Federal Register: Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change to Enhance Capital Requirements and Make Other Changes
- Federal Register: Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change to Enhance Capital Requirements and Make Other Changes
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.