80 FR 27714 - Self-Regulatory Organizations; The Depository Trust Company; National Securities Clearing Corporation; Notice of Filing and No Objection to Advance Notices Relating to the Renewal of Existing Line of Credit
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 93 (May 14, 2015)
Federal Register Volume 80, Issue 93 (May 14, 2015)
| Page Range | 27714-27716 | |
| FR Document | 2015-11602 |
[Federal Register Volume 80, Number 93 (Thursday, May 14, 2015)] [Notices] [Pages 27714-27716] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-11602] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-74906; File Nos. SR-DTC-2015-801; SR-NSCC-2015-801] Self-Regulatory Organizations; The Depository Trust Company; National Securities Clearing Corporation; Notice of Filing and No Objection to Advance Notices Relating to the Renewal of Existing Line of Credit May 7, 2015. Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 \1\ (``Clearing Supervision Act'') and Rule 19b-4(n)(1)(i) \2\ under the Securities Exchange Act of 1934, notice is hereby given that on April 20, 2015, The Depository Trust Company (``DTC'') and National Securities Clearing Corporation (``NSCC,'' together with DTC, ``Clearing Agencies'') filed with the Securities and Exchange Commission (``Commission'') the advance notices SR-DTC-2015-801 and SR-NSCC-2015-801 (``Advance Notices'') as described in Items I and II below, which Items have been prepared primarily by the Clearing Agencies. The Commission is publishing this notice to solicit comments on the Advance Notices from interested persons and provide notice that the Commission does not object to the Advance Notices. --------------------------------------------------------------------------- \1\ 12 U.S.C. 5465(e)(1). \2\ 17 CFR 240.19b-4(n)(1)(i). --------------------------------------------------------------------------- I. Clearing Agencies' Statement of the Terms of Substance of the Advance Notices The Advance Notices are being filed by the Clearing Agencies in connection with the renewal of the Clearing Agencies' 364-day syndicated revolving credit facility (``Renewal''), as more fully described below. II. Clearing Agencies' Statement of the Purpose of, and Statutory Basis for, the Advance Notices In their filings with the Commission, the Clearing Agencies included statements concerning the purpose of and basis for the Advance Notices and discussed any comments they received on the Advance Notices. The text of these statements may be examined at the places specified in Item IV below. The Clearing Agencies have prepared summaries, set forth in sections (A) and (B) below, of the most significant aspects of such statements. (A) Clearing Agencies' Statement on Comments on the Advance Notices Received From Members, Participants, or Others Written comments on the Advance Notices have not yet been solicited or received. The Clearing Agencies will notify the Commission of any written comments received by the Clearing Agencies. (B) Advance Notices Filed Pursuant to Section 806(e) of the Payment, Clearing and Settlement Supervision Act Description of the Change As part of their liquidity risk management regime, the Clearing Agencies maintain a 364-day committed [[Page 27715]] revolving line of credit with a syndicate of commercial lenders which is renewed every year. The terms and conditions of the current Renewal will be specified in the Fourteenth Amended and Restated Revolving Credit Agreement, to be dated as of May 12, 2015 (``Renewal Agreement''), among the Clearing Agencies,\3\ the lenders party thereto, the primary administrative agent and the other parties thereto, and are substantially the same as the terms and conditions of the existing credit agreement, dated as of May 13, 2014, among the same parties, as heretofore amended (``Existing Agreement''),\4\ except that pricing and the amount of the aggregate commitment will change. The substantive terms of the Renewal are set forth in the Summary of Indicative Principal Terms and Conditions, dated March 23, 2015, which is not a public document. The aggregate commitments being sought under the Renewal will be for an amount of approximately $15 billion for NSCC and DTC together, with an aggregate commitment of $1.9 billion to DTC as borrower, and all but $1.9 billion aggregate commitments would be the commitments to NSCC as borrower, as provided in the Existing Agreement. --------------------------------------------------------------------------- \3\ The Renewal Agreement will provide for both DTC and NSCC as borrowers, with an aggregate commitment of $1.9 billion for DTC and the amount of any excess aggregate commitment for NSCC. The borrowers are not jointly and severally liable and each lender has a ratable commitment to each borrower. DTC and NSCC have separate collateral to secure their separate borrowings. \4\ Last year, the Securities and Exchange Commission (``Commission'') published Notice of Filing and No Objection to the Clearing Agencies' advance notice filings with respect to the Clearing Agencies' renewal beginning on May 13, 2014. See Securities Exchange Act Release No. 72131 (May 8, 2014), 79 FR 27654 (May 14, 2014) (SR-NSCC-2014-805); Securities Exchange Act Release No. 72132 (May 8, 2014), 79 FR 27658 (May 14, 2014) (SR-DTC-2014-805). --------------------------------------------------------------------------- This agreement and its substantially similar predecessor agreements have been in place since the introduction of same day funds settlement at the Clearing Agencies. The Clearing Agencies require same-day liquidity resources to cover the failure-to-settle of NSCC's largest Member or affiliated family of Members, or of the DTC Participant or affiliated family of Participants with the largest net settlement obligations. If a NSCC Member defaults on or a DTC Participant fails to satisfy its end-of-day settlement obligations, each Clearing Agencies may borrow under its line to enable it, if necessary, to fund settlement among non-defaulting NSCC Members or DTC Participants. Any NSCC borrowing would be secured principally by (i) securities deposited by Members in NSCC's Clearing Fund (i.e., the Eligible Clearing Fund Securities, as defined in NSCC's Rule 4, pledged by Members to NSCC in lieu of cash Clearing Fund deposits), and (ii) securities cleared through NSCC's Continuous Net Settlement System (CNS) that were intended for delivery to the defaulting Member upon payment of its net settlement obligation. NSCC's Clearing Fund \5\ (which operates as its default fund) addresses potential exposure through a number of risk-based component charges calculated and assessed daily. As integral parts of NSCC's risk management structure, the line of credit and the Clearing Fund, together, provide NSCC liquidity to complete end-of-day money settlement. --------------------------------------------------------------------------- \5\ NSCC's Clearing Fund includes additional liquidity deposits by certain Members pursuant to NSCC's Supplemental Liquidity Deposit rule (Rule 4(A)). --------------------------------------------------------------------------- Any DTC borrowing would be secured principally by securities that were intended to be delivered to the defaulting Participant upon payment of its net settlement obligation and securities previously designated by the defaulting Participant as collateral. The liquidity facility is built into DTC's primary risk management controls, the net debit cap and collateral monitor, which together require that the end- of-day net funds settlement obligation of a Participant cannot exceed DTC's liquidity resources and is fully collateralized. Anticipated Effect on and Management of Risk As noted, the committed revolving line of credit is a cornerstone of Clearing Agencies risk management and this Renewal is critical to the Clearing Agencies risk management infrastructure. The Renewal does not otherwise affect or alter the management of risk at the Clearing Agencies. The Renewal is consistent with Section 805(b) of the Clearing supervision Act \6\ and with Commission Rule 17Ad-22(d)(11) \7\ (regarding default procedures) because it mitigates liquidity risk. --------------------------------------------------------------------------- \6\ 12 U.S.C. 5464(b). The Financial Stability Oversight Council designated NSCC a systemically important financial market utility on July 18, 2012. See Financial Stability Oversight Council 2012 Annual Report, Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, the Clearing Agencies are required to comply with the Clearing Supervision Act. \7\ 17 CFR 240.17Ad-22(d)(11). --------------------------------------------------------------------------- III. Date of Effectiveness of the Advance Notices, and Timing for Commission Action The proposed change may be implemented if the Commission does not object to the proposed change within 60 days of the later of (i) the date that the proposed change was filed with the Commission or (ii) the date that any additional information requested by the Commission is received. The Clearing Agencies shall not implement the proposed change if the Commission has any objection to the proposed change. The Commission may extend the period for review by an additional 60 days if the proposed change raises novel or complex issues, subject to the Commission providing the Clearing Agencies with prompt written notice of the extension. The proposed change may be implemented in less than 60 days from the date the Advance Notices are filed, or the date further information requested by the Commission is received, if the Commission notifies the Clearing Agencies in writing that it does not object to the proposed change and authorizes the Clearing Agencies to implement the proposed change on an earlier date, subject to any conditions imposed by the Commission. The Clearing Agencies shall post notice on their Web site of proposed changes that are implemented. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the Advance Notices are consistent with the Clearing Supervision Act. Comments may be submitted by any of the following methods: Electronic CommentsUse the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or Send an email to [email protected]. Please include File Number SR-DTC-2015-801 or SR-NSCC-2015-801 on the subject line. Paper Comments Send paper comments in triplicate to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090. All submissions should refer to File Number SR-DTC-2015-801 or SR-NSCC- 2015-801. One of these file numbers should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will [[Page 27716]] post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the Advance Notices that are filed with the Commission, and all written communications relating to the Advance Notices between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Clearing Agencies and on DTCC's Web site at http://dtcc.com/legal/sec-rule-filings.aspx. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR-DTC- 2015-801 or SR-NSCC-2015-801 and should be submitted on or before June 4, 2015. V. Commission Findings and Notice of No Objection Although the Clearing Supervision Act does not specify a standard of review for an advance notice, its stated purpose is instructive.\8\ The stated purpose is to mitigate systemic risk in the financial system and promote financial stability by, among other things, promoting uniform risk management standards for systemically important financial market utilities (``FMUs'') and strengthening the liquidity of systemically important FMUs.\9\ Section 805(a)(2) of the Clearing Supervision Act \10\ authorizes the Commission to prescribe risk management standards for the payment, clearing, and settlement activities of designated clearing entities and financial institutions engaged in designated activities for which it is the Supervisory Agency or the appropriate financial regulator. Section 805(b) of the Clearing Supervision Act \11\ states that the objectives and principles for the risk management standards prescribed under Section 805(a) shall be to: --------------------------------------------------------------------------- \8\ See 12 U.S.C. 5461(b). \9\ Id. \10\ 12 U.S.C. 5464(a)(2). \11\ 12 U.S.C. 5464(b). --------------------------------------------------------------------------- Promote robust risk management; promote safety and soundness; reduce systemic risks; and support the stability of the broader financial system. The Commission has adopted risk management standards under Section 805(a)(2) of the Clearing Supervision Act \12\ and the Exchange Act (``Clearing Agency Standards'').\13\ The Clearing Agency Standards require registered clearing agencies to establish, implement, maintain, and enforce written policies and procedures that are reasonably designed to meet certain minimum requirements for their operations and risk management practices on an ongoing basis.\14\ Therefore, it is appropriate for the Commission to review advance notices against these Clearing Agency Standards and the objectives and principles of these risk management standards as described in Section 805(b) of the Clearing Supervision Act.\15\ --------------------------------------------------------------------------- \12\ 12 U.S.C. 5464(a)(2). \13\ See Exchange Act Rule 17Ad-22. 17 CFR 240.17Ad-22. Securities Exchange Act Release No. 68080 (October 22, 2012), 77 FR 66220 (November 2, 2012) (S7-08-11). \14\ Id. \15\ 12 U.S.C. 5464(b). --------------------------------------------------------------------------- The Commission believes that the proposal in the Advance Notices is consistent with Clearing Agency Standards, in particular, Commission Rule 17Ad-22(d)(11) for NSCC and DTC, and Rule 17Ad-22(b)(3) for NSCC. Commission Rule 17Ad-22(d)(11) requires that registered clearing agencies ``establish, implement, maintain and enforce written policies and procedures reasonably designed to, as applicable . . . establish default procedures that ensure that the clearing agency can take timely action to contain losses and liquidity pressures and to continue meeting its obligations in the event of a participant default.'' The Commission believes that the proposal is consistent with Rule 17Ad- 22(d)(11) because the renewed credit facility will provide the Clearing Agencies with a readily available liquidity resource that will enable them to continue to meet their respective obligations in a timely fashion, in the event of a member default, thereby helping to contain losses and liquidity pressures from that default. Commission Rule 17Ad-22(b)(3) requires a central counterparty (``CCP''), like NSCC,\16\ to ``establish, implement, maintain and enforce written policies and procedures reasonably designed to . . . [m]aintain sufficient financial resources to withstand, at a minimum, a default by the participant family to which it has the largest exposure in extreme but plausible market conditions. . . .'' The Commission believes that the proposal is consistent with Rule 17Ad-22(b)(3) because NSCC's proposal to enter into a renewed credit facility will help it maintain sufficient financial resources to withstand, at a minimum, a default by an NSCC member to which NSCC has the largest exposure. --------------------------------------------------------------------------- \16\ See FSOC 2012 Annual Report, supra note 4. DTC serves as a central securities depository, not as a CCP, for almost all corporate and municipal debt and equity securities available for trading in the United States. Id. --------------------------------------------------------------------------- For these reasons, the Commission believes the Advance Notices are consistent with the objectives and principles described in Section 805(b) of the Clearing Supervision Act, including that they reduce systemic risks and support the stability of the broader financial system. As discussed above, the renewal of the credit facility will provide the Clearing Agencies needed liquidity when experiencing severe liquidity pressure from a member default. Given that the Clearing Agencies have been designated as systemically important FMUs, the Clearing Agencies' ability to provide their clearing services during such an event contributes to reducing systemic risks and supporting the stability of the broader financial system. For the reasons stated above, the Commission does not object to the Advance Notices. VI. Conclusion It is therefore noticed, pursuant to Section 806(e)(1)(I) of the Clearing Supervision Act,\17\ that the Commission does not object to the advance notices SR-DTC-2015-801 and SR-NSCC-2015-801 and that DTC and NSCC be and hereby are authorized to implement the change as of the date of this notice. --------------------------------------------------------------------------- \17\ 12 U.S.C. 5465(e)(1)(I). By the Commission. Brent J. Fields, Secretary. [FR Doc. 2015-11602 Filed 5-13-15; 8:45 am] BILLING CODE 8011-01-P
![27714 Federal Register / Vol. 80, No. 93 / Thursday, May 14, 2015 / Notices
K. Method and Frequency of Processor and Exchange Commission, 100 F Street entitled the Payment, Clearing, and
Evaluation NE., Washington, DC 20549–1090. Settlement Supervision Act of 2010 1
Not applicable. All submissions should refer to File (‘‘Clearing Supervision Act’’) and Rule
Number S7–24–89. This file number 19b–4(n)(1)(i) 2 under the Securities
L. Dispute Resolution should be included on the subject line Exchange Act of 1934, notice is hereby
Not applicable. if email is used. To help the given that on April 20, 2015, The
Commission process and review your Depository Trust Company (‘‘DTC’’) and
II. Rule 601(a) comments more efficiently, please use National Securities Clearing Corporation
A. Equity Securities for Which only one method. The Commission will (‘‘NSCC,’’ together with DTC, ‘‘Clearing
Transaction Reports Shall Be Required post all comments on the Commission’s Agencies’’) filed with the Securities and
by the Plan Web site (http://www.sec.gov/rules/ Exchange Commission (‘‘Commission’’)
sro.shtml). Copies of the submission, all the advance notices SR–DTC–2015–801
Not applicable. and SR–NSCC–2015–801 (‘‘Advance
written statements with respect to the
B. Reporting Requirements proposed Plan Amendment that are Notices’’) as described in Items I and II
filed with the Commission, and all below, which Items have been prepared
See Section IA above. primarily by the Clearing Agencies. The
written communications relating to the
C. Manner of Collecting, Processing, proposed Plan Amendment between the Commission is publishing this notice to
Sequencing, Making Available and Commission and any person, other than solicit comments on the Advance
Disseminating Last Sale Information those that may be withheld from the Notices from interested persons and
public in accordance with the provide notice that the Commission
See Section IA above.
provisions of 5 U.S.C. 552, will be does not object to the Advance Notices.
D. Manner of Consolidation available for Web site viewing and I. Clearing Agencies’ Statement of the
Not applicable. printing in the Commission’s Public Terms of Substance of the Advance
Reference Room, 100 F Street NE., Notices
E. Standards and Methods Ensuring
Washington, DC 20549, on official The Advance Notices are being filed
Promptness, Accuracy and
business days between the hours of by the Clearing Agencies in connection
Completeness of Transaction Reports
10:00 a.m. and 3:00 p.m. Copies of the with the renewal of the Clearing
Amendment 35 proposes to add filing also will be available for Web site Agencies’ 364-day syndicated revolving
timestamps to Participant reports of viewing and printing at the Office of the credit facility (‘‘Renewal’’), as more
trades and bids and offers. The addition Secretary of the Committee, currently fully described below.
of timestamps should provide investors located at the Chicago Stock Exchange,
with a more complete picture of trades, Inc., 440 S. LaSalle Street, Chicago, IL II. Clearing Agencies’ Statement of the
making those reports more complete 60605. All comments received will be Purpose of, and Statutory Basis for, the
and more accurate. posted without change; the Commission Advance Notices
F. Rules and Procedures Addressed to does not edit personal identifying In their filings with the Commission,
Fraudulent or Manipulative information from submissions. You the Clearing Agencies included
Dissemination should submit only information that statements concerning the purpose of
you wish to make available publicly. All and basis for the Advance Notices and
Not applicable. submissions should refer to File discussed any comments they received
G. Terms of Access to Transaction Number S7–24–89 and should be on the Advance Notices. The text of
Reports submitted on or before June 4, 2015. these statements may be examined at
For the Commission, by the Division of the places specified in Item IV below.
Not applicable.
Trading and Markets, pursuant to delegated The Clearing Agencies have prepared
H. Identification of Marketplace of authority.6 summaries, set forth in sections (A) and
Execution Robert W. Errett, (B) below, of the most significant
Not Applicable. Deputy Secretary. aspects of such statements.
[FR Doc. 2015–11622 Filed 5–13–15; 8:45 am] (A) Clearing Agencies’ Statement on
III. Solicitation of Comments
BILLING CODE 8011–01–P Comments on the Advance Notices
The Commission seeks general Received From Members, Participants,
comments on Amendment No. 35. or Others
Interested persons are invited to submit SECURITIES AND EXCHANGE
written data, views, and arguments COMMISSION Written comments on the Advance
concerning the foregoing, including Notices have not yet been solicited or
[Release No. 34–74906; File Nos. SR–DTC– received. The Clearing Agencies will
whether the proposal is consistent with 2015–801; SR–NSCC–2015–801]
the Act. Comments may be submitted by notify the Commission of any written
any of the following methods: comments received by the Clearing
Self-Regulatory Organizations; The
Agencies.
Electronic Comments Depository Trust Company; National
Securities Clearing Corporation; (B) Advance Notices Filed Pursuant to
• Use the Commission’s Internet Notice of Filing and No Objection to Section 806(e) of the Payment, Clearing
comment form (http://www.sec.gov/ Advance Notices Relating to the and Settlement Supervision Act
rules/sro.shtml); or Renewal of Existing Line of Credit Description of the Change
tkelley on DSK3SPTVN1PROD with NOTICES
• Send an email to rule-comments@
sec.gov. Please include File Number S7– May 7, 2015. As part of their liquidity risk
24–89 on the subject line. Pursuant to Section 806(e)(1) of Title management regime, the Clearing
VIII of the Dodd-Frank Wall Street Agencies maintain a 364-day committed
Paper Comments Reform and Consumer Protection Act
• Send paper comments in triplicate 1 12 U.S.C. 5465(e)(1).
to Brent J. Fields, Secretary, Securities 6 17 CFR 200.30–3(a)(27). 2 17 CFR 240.19b–4(n)(1)(i).
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![27716 Federal Register / Vol. 80, No. 93 / Thursday, May 14, 2015 / Notices
post all comments on the Commission’s • promote safety and soundness; resources to withstand, at a minimum,
Internet Web site (http://www.sec.gov/ • reduce systemic risks; and a default by the participant family to
rules/sro.shtml). Copies of the • support the stability of the broader which it has the largest exposure in
submission, all subsequent financial system. extreme but plausible market
amendments, all written statements The Commission has adopted risk conditions. . . .’’ The Commission
with respect to the Advance Notices that management standards under Section
believes that the proposal is consistent
are filed with the Commission, and all 805(a)(2) of the Clearing Supervision
with Rule 17Ad–22(b)(3) because
written communications relating to the Act 12 and the Exchange Act (‘‘Clearing
Agency Standards’’).13 The Clearing NSCC’s proposal to enter into a renewed
Advance Notices between the credit facility will help it maintain
Commission and any person, other than Agency Standards require registered
clearing agencies to establish, sufficient financial resources to
those that may be withheld from the
implement, maintain, and enforce withstand, at a minimum, a default by
public in accordance with the
provisions of 5 U.S.C. 552, will be written policies and procedures that are an NSCC member to which NSCC has
available for Web site viewing and reasonably designed to meet certain the largest exposure.
printing in the Commission’s Public minimum requirements for their For these reasons, the Commission
Reference Room, 100 F Street NE., operations and risk management believes the Advance Notices are
Washington, DC 20549, on official practices on an ongoing basis.14 consistent with the objectives and
business days between the hours of Therefore, it is appropriate for the principles described in Section 805(b) of
10:00 a.m. and 3:00 p.m. Copies of the Commission to review advance notices the Clearing Supervision Act, including
filing also will be available for against these Clearing Agency Standards that they reduce systemic risks and
inspection and copying at the principal and the objectives and principles of
support the stability of the broader
office of the Clearing Agencies and on these risk management standards as
financial system. As discussed above,
DTCC’s Web site at http://dtcc.com/ described in Section 805(b) of the
Clearing Supervision Act.15 the renewal of the credit facility will
legal/sec-rule-filings.aspx. All provide the Clearing Agencies needed
comments received will be posted The Commission believes that the
proposal in the Advance Notices is liquidity when experiencing severe
without change; the Commission does liquidity pressure from a member
not edit personal identifying consistent with Clearing Agency
Standards, in particular, Commission default. Given that the Clearing
information from submissions. You
Rule 17Ad–22(d)(11) for NSCC and Agencies have been designated as
should submit only information that
DTC, and Rule 17Ad–22(b)(3) for NSCC. systemically important FMUs, the
you wish to make available publicly. All
submissions should refer to File Commission Rule 17Ad–22(d)(11) Clearing Agencies’ ability to provide
Number SR–DTC–2015–801 or SR– requires that registered clearing agencies their clearing services during such an
NSCC–2015–801 and should be ‘‘establish, implement, maintain and event contributes to reducing systemic
submitted on or before June 4, 2015. enforce written policies and procedures risks and supporting the stability of the
reasonably designed to, as applicable broader financial system.
V. Commission Findings and Notice of . . . establish default procedures that
No Objection For the reasons stated above, the
ensure that the clearing agency can take
timely action to contain losses and Commission does not object to the
Although the Clearing Supervision Advance Notices.
Act does not specify a standard of liquidity pressures and to continue
review for an advance notice, its stated meeting its obligations in the event of a VI. Conclusion
purpose is instructive.8 The stated participant default.’’ The Commission
purpose is to mitigate systemic risk in believes that the proposal is consistent It is therefore noticed, pursuant to
the financial system and promote with Rule 17Ad–22(d)(11) because the Section 806(e)(1)(I) of the Clearing
financial stability by, among other renewed credit facility will provide the Supervision Act,17 that the Commission
things, promoting uniform risk Clearing Agencies with a readily does not object to the advance notices
management standards for systemically available liquidity resource that will SR–DTC–2015–801 and SR–NSCC–
important financial market utilities enable them to continue to meet their 2015–801 and that DTC and NSCC be
(‘‘FMUs’’) and strengthening the respective obligations in a timely and hereby are authorized to implement
liquidity of systemically important fashion, in the event of a member the change as of the date of this notice.
FMUs.9 Section 805(a)(2) of the Clearing default, thereby helping to contain
losses and liquidity pressures from that By the Commission.
Supervision Act 10 authorizes the
default. Brent J. Fields,
Commission to prescribe risk
Commission Rule 17Ad–22(b)(3) Secretary.
management standards for the payment,
requires a central counterparty (‘‘CCP’’), [FR Doc. 2015–11602 Filed 5–13–15; 8:45 am]
clearing, and settlement activities of
like NSCC,16 to ‘‘establish, implement,
designated clearing entities and BILLING CODE 8011–01–P
maintain and enforce written policies
financial institutions engaged in
and procedures reasonably designed to
designated activities for which it is the
. . . [m]aintain sufficient financial
Supervisory Agency or the appropriate
financial regulator. Section 805(b) of the 12 12 U.S.C. 5464(a)(2).
Clearing Supervision Act 11 states that 13 See Exchange Act Rule 17Ad–22. 17 CFR
the objectives and principles for the risk 240.17Ad–22. Securities Exchange Act Release No.
management standards prescribed under 68080 (October 22, 2012), 77 FR 66220 (November
tkelley on DSK3SPTVN1PROD with NOTICES
Section 805(a) shall be to: 2, 2012) (S7–08–11).
• Promote robust risk management;
14 Id.
15 12 U.S.C. 5464(b).
16 See FSOC 2012 Annual Report, supra note 4.
8 See 12 U.S.C. 5461(b). DTC serves as a central securities depository, not
9 Id.
as a CCP, for almost all corporate and municipal
10 12 U.S.C. 5464(a)(2). debt and equity securities available for trading in
11 12 U.S.C. 5464(b). the United States. Id. 17 12 U.S.C. 5465(e)(1)(I).
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Document Created: 2015-12-15 15:33:08
Document Modified: 2015-12-15 15:33:08
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
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| Section | Notices | |
| FR Citation | 80 FR 27714 |
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