On September 28, the Securities and Exchange Commission adopted rules enhancing standards for securities clearing agencies deemed systemically important or engaged in certain complex transactions (Covered Clearing Agencies). The SEC also proposed a rule that would subject other types of securities clearing agencies (including SEC-registered central counterparties) to the same standards.
Under the adopted rule, Covered Clearing Agencies are required to establish, implement, maintain and enforce written policies and procedures reasonably designed to address the following subjects:
- general organization (including legal basis, governance and a framework for the comprehensive management of risks);
- financial risk management (including credit risk, collateral, margin and liquidity risk);
- settlement (including settlement finality, money settlements and physical deliveries);
- central securities depositories and exchange-of-value 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); and
The new rules will become effective 60 days after publication in the Federal Register. The compliance date will be 120 days after the effective date.
The final rule is available here.
The proposed rule to expand the definition of Covered Clearing Agencies is available here.