80 FR 53219 - Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Enhance NSCC's Margining Methodology as Applied to Family-Issued Securities of Certain NSCC Members
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 80, Issue 170 (September 2, 2015)
Federal Register Volume 80, Issue 170 (September 2, 2015)
| Page Range | 53219-53221 | |
| FR Document | 2015-21670 |
[Federal Register Volume 80, Number 170 (Wednesday, September 2, 2015)] [Notices] [Pages 53219-53221] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-21670] ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION [Release No. 34-75768; File No. SR-NSCC-2015-003] Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change To Enhance NSCC's Margining Methodology as Applied to Family-Issued Securities of Certain NSCC Members August 27, 2015. Pursuant to section 19(b)(1) \1\ of the Securities Exchange Act of 1934 (``Act'') and Rule 19b-4 \2\ thereunder, notice is hereby given that on August 14, 2015, National Securities Clearing Corporation (``NSCC'') filed with the Securities and Exchange Commission (``Commission'') the proposed rule change as described in Items I, II and III below, which Items have been prepared by NSCC.\3\ NSCC filed the proposed rule change pursuant to section 19(b)(2) \4\ of the Act. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons. --------------------------------------------------------------------------- \1\ 15 U.S.C. 78s(b)(1). \2\ 17 CFR 240.19b-4. \3\ On August 14, 2015, NSCC filed this proposed rule change as an advance notice (SR-NSCC-2015-803) with the Commission pursuant to section 806(e)(1) of the Dodd-Frank Wall Street Reform and Consumer Protection Act entitled the Payment, Clearing, and Settlement Supervision Act of 2010 (``Clearing Supervision Act''), 12 U.S.C. 5465(e)(1), and Rule 19b-4(n)(1)(i) of the Act, 17 CFR 240.19b- 4(n)(1)(i). A copy of the advance notice is available at http://www.dtcc.com/legal/sec-rule-filings.aspx. \4\ 15 U.S.C. 78s(b)(2). --------------------------------------------------------------------------- I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change The proposed rule change consists of amendments to NSCC's Rules & Procedures (``Rules'') in order to enhance NSCC's margining methodology as applied to family-issued securities of NSCC Members \5\ that are placed on NSCC's ``Watch List'', i.e., those Members who present a heightened credit risk to NSCC or have demonstrated higher risk related to their ability to meet settlement, as more fully described below. --------------------------------------------------------------------------- \5\ Terms not defined herein are defined in the Rules, available at http://dtcc.com/~/media/Files/Downloads/legal/rules/ nscc_rules.pdf. --------------------------------------------------------------------------- II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, NSCC included statements concerning the purpose of and basis for the proposed rule change and discussed any comments it received on the proposed [[Page 53220]] rule change. The text of these statements may be examined at the places specified in Item IV below. NSCC has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements. (A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose As a central counterparty, NSCC occupies an important role in the securities settlement system by interposing itself between counterparties to financial transactions and thereby reducing the risk faced by participants and contributing to global financial stability. The effectiveness of a central counterparty's risk controls and the adequacy of its financial resources are critical to achieving these risk-reducing goals. In that context, NSCC continuously reviews its margining methodology in order to ensure the reliability of its margining in achieving the desired coverage. In order to be most effective, NSCC must take into consideration the risk characteristics specific to certain securities when margining those securities. Among the various risks that NSCC considers when evaluating the effectiveness of its margining methodology are its counterparty risks and identification and mitigation of ``wrong-way'' risk, particularly specific wrong-way risk, defined as the risk that an exposure to a counterparty is highly likely to increase when the creditworthiness of that counterparty deteriorates.\6\ NSCC has identified an exposure to wrong-way risk when it acts as central counterparty to a Member with respect to positions in securities that are issued by that Member or that Member's affiliate. These positions are referred to as ``family- issued securities.'' In the event that a Member with unsettled long positions in family-issued securities defaults, NSCC would close out those positions following a likely drop in the credit-worthiness of the issuer, possibly resulting in a loss to NSCC. --------------------------------------------------------------------------- \6\ See Principles for financial market infrastructures, issued by the Committee on Payment and Settlement Systems and the Technical Committee of the International Organization of Securities Commissions 47 n.65 (April 2012), available at http://www.bis.org/publ/cpss101a.pdf. --------------------------------------------------------------------------- NSCC is proposing to address its exposure to this type of wrong-way risk in two steps. First, NSCC proposes in this filing to enhance its margin methodology as applied to the family-issued securities of its Members that are on its Watch List \7\ by excluding these securities from the volatility component, or ``VaR'' charge, and then charging an amount calculated by multiplying the absolute value of the long net unsettled positions in that Member's family-issued securities by a percentage that is no less than 40%. The haircut rate to be charged would be determined based on the Member's rating on the credit risk rating matrix and the type of family-issued security submitted to NSCC. Fixed income securities that are family-issued securities would be charged a haircut rate of no less than 80% for firms that are rated 6 or 7 on the credit risk rating matrix, and no less than 40% for firms that are rated 5 on the credit risk rating matrix; and equity securities that are family-issued securities would be charged a haircut rate of 100% for firms that are rated 6 or 7 on the credit risk rating matrix, and no less than 50% for firms that are rated 5 on the credit risk rating matrix. NSCC would have the authority to adjust these haircut rates from time to time within these parameters as described in Procedure XV of NSCC's Rules without filing a proposed rule change with the Commission pursuant to section 19(b)(1) of the Act,\8\ and the rules thereunder, or an advance notice with the Commission pursuant to section 806(e)(1) of the Clearing Supervision Act,\9\ and the rules thereunder. --------------------------------------------------------------------------- \7\ As part of its ongoing monitoring of its membership, NSCC utilizes an internal credit risk rating matrix to rate its risk exposures to its Members based on a scale from 1 (the strongest) to 7 (the weakest). Members that fall within the higher risk rating categories (i.e. 5, 6, and 7) are considered on NSCC's ``Watch List'', and may be subject to enhanced surveillance or additional margin charges, as permitted under NSCC's Rules. See Section 4 of Rule 2B and section I(B)(1) of Procedure XV of NSCC's Rules, supra Note 5. \8\ 15 U.S.C. 78s(b)(1). \9\ 12 U.S.C. 5465(e)(1). --------------------------------------------------------------------------- Because NSCC Members that are on its Watch List present a heightened credit risk to the clearing agency or have demonstrated higher risk related to their ability to meet settlement, NSCC believes that this charge would more effectively capture the risk characteristics of these positions and can help mitigate NSCC's exposure to wrong-way risk. NSCC proposes to amend section I(B)(1) of Procedure XV of its Rules, as marked on Exhibit 5 hereto,\10\ to enhance its margining methodology as described herein. --------------------------------------------------------------------------- \10\ The Commission notes that Exhibit 5 is attached to the filing, not to this Notice. --------------------------------------------------------------------------- Second, NSCC will continue to evaluate its exposures to wrong-way risk, specifically wrong-way risk presented by family-issued securities, including by reviewing the impact of expanding the application of the proposed margining methodology to the family-issued securities of those Members that are not on the Watch List. NSCC is proposing to apply the enhanced margining methodology to the family- issued securities of Members that are on the Watch List at this time because, as stated above, these Members present a heightened credit risk to the clearing agency or have demonstrated higher risk related to their ability to meet settlement. As such, there is a clear and more urgent need to address NSCC's exposure to wrong-way risk presented by these firms' family-issued securities. However, any future change to the margining methodology as applied to the family-issued securities of Members that are not on the Watch List would be subject to a separate proposed rule change pursuant to section 19(b)(1) of the Act,\11\ and the rules thereunder, and an advance notice pursuant to section 806(e)(1) of the Clearing Supervision Act,\12\ and the rules thereunder. --------------------------------------------------------------------------- \11\ 15 U.S.C. 78s(b)(1). \12\ 12 U.S.C. 5465(e)(1). --------------------------------------------------------------------------- Implementation Timeframe. Subject to Commission approval of this proposed rule change, Members would be advised of the implementation date through issuance of an NSCC Important Notice. NSCC expects to run these changes in a test environment for a three month parallel period prior to implementation. Details and dates regarding this test would be communicated to Members through an NSCC Important Notice. As stated above, NSCC will conduct additional analysis of its exposure to wrong- way risk, and, following implementation of this proposed rule change, will engage in outreach to its membership when evaluating whether to expand the application of the proposed enhanced margining methodology to Members not on its Watch List. 2. Statutory Basis Pursuant to section 17A(b)(3)(F) of the Act, NSCC's Rules must be designed to promote the prompt and accurate clearance and settlement of securities transactions.\13\ Rule 17Ad-22(b)(1), promulgated under the Act, requires NSCC to measure its credit exposures to its participants at least once a day and limit its exposures to potential losses from defaults by its participants under [[Page 53221]] normal market conditions so that the operations of the clearing agency would not be disrupted and non-defaulting participants would not be exposed to losses that they cannot anticipate or control.\14\ Rule 17Ad-22(b)(2), promulgated under the Act, requires NSCC to use risk- based models for setting margin requirements.\15\ --------------------------------------------------------------------------- \13\ 5 U.S.C. 78q-1(b)(3)(F). \14\ 17 CFR 240.17Ad-22(b)(1). \15\ 17 CFR 240.17Ad-22(b)(2). --------------------------------------------------------------------------- By enhancing the margin methodology as applied to the family-issued securities of its Members that are on its Watch List, the proposed rule change would assist NSCC in collecting margin that more accurately reflects the risk characteristics of these securities, thereby limiting NSCC's exposures to potential losses from defaults by these Members under normal market conditions. By more closely capturing the risk characteristics of these positions, the proposed enhancement to the margining methodology would also assist NSCC in its continuous efforts to ensure the reliability and effectiveness of its risk-based margining methodology. In this way, the proposed rule change would help NSCC, as a central counterparty, maintain effective risk controls, contributing to the goal of maintaining financial stability in the event of a Member default. Therefore, NSCC believes the proposed rule change is consistent with the requirements of the Act and the rules and regulations promulgated thereunder applicable to NSCC, in particular section 17A(b)(3)(F) of the Act and Rule 17Ad-22(b)(1) and (2), promulgated under the Act, cited above. (B) Clearing Agency's Statement on Burden on Competition The proposed rule change may impose a burden on competition by applying the enhanced margining methodology only to NSCC Members on NSCC's Watch List. However, NSCC believes any related burden on competition would be necessary and appropriate, as permitted by section 17A(b)(3)(I) of the Act for a number of reasons.\16\ --------------------------------------------------------------------------- \16\ 5 U.S.C. 78q-1(b)(3)(I). --------------------------------------------------------------------------- First, while NSCC will continue to review its exposures to wrong- way risk and will consider expanding the application of the proposed margining methodology to additional Members, NSCC has determined to initially limit the applicability of the proposed rule change to Members on its Watch List because those Members present a heightened credit risk to the clearing agency or have demonstrated a higher risk in their ability to meet settlement. Second, by limiting NSCC's exposures to losses that it may face in clearing family-issued securities of such Members, the proposed rule change would contribute to the goal of maintaining financial stability in the event of the default of a Member on the Watch List, which would help facilitate the prompt and accurate clearance and settlement of securities transactions and protect investors and the public interest, in furtherance of the requirements of the Act applicable to NSCC, as discussed above. As such, NSCC believes any burden on competition resulting from the proposed rule change would be both necessary and appropriate in furtherance of the purposes of the Act, in particular section 17A(b)(3)(F) of the Act and Rule 17Ad-22(b)(1) and (2), promulgated under the Act, cited above. (C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others In November 2013, NSCC engaged in outreach to its Members by providing those Members with a description of the proposed rule change and the results of an impact study showing the potential impact of this proposal on Members' Clearing Fund required deposits. NSCC did not receive any written comments relating to this proposed rule change in response to this outreach. NSCC will notify the Commission of any written comments received by NSCC. III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action Within 45 days of the date of publication of this notice in the Federal Register or within such longer period up to 90 days (i) as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or (ii) as to which the self-regulatory organization consents, the Commission will: (A) By order approve or disapprove such a proposed rule change, or (B) institute proceedings to determine whether the proposed rule change should be disapproved. The proposal shall not take effect until all regulatory actions required with respect to the proposal are completed. IV. Solicitation of Comments Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the 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-NSCC-2015-003 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-NSCC-2015-003. This file number 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 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 proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change 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 NSCC and on DTCC's Web site (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-NSCC-2015-003 and should be submitted on or before September 23, 2015. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.\17\ --------------------------------------------------------------------------- \17\ 17 CFR 200.30-3(a)(12). --------------------------------------------------------------------------- Robert W. Errett, Deputy Secretary. [FR Doc. 2015-21670 Filed 9-1-15; 8:45 am] BILLING CODE 8011-01-P
![Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices 53219
new VIX weekly options and futures. • Send an email to rule-comments@ SECURITIES AND EXCHANGE
Additionally, the Exchange believes the sec.gov. Please include File Number SR– COMMISSION
proposed rule change will continue to CBOE–2015–074 on the subject line.
encourage the trading of SPXW options [Release No. 34–75768; File No. SR–NSCC–
that have the expiration that contribute Paper Comments 2015–003]
to the now VIX weekly settlement • Send paper comments in triplicate Self-Regulatory Organizations;
calculation at the opening on settlement to Secretary, Securities and Exchange National Securities Clearing
days, which will provide additional Corporation; Notice of Filing of
Commission, 100 F Street NE.,
liquidity and enhance competition in Proposed Rule Change To Enhance
Washington, DC 20549–1090.
those securities. The Exchange does not NSCC’s Margining Methodology as
believe that the proposed rule changes All submissions should refer to File Applied to Family-Issued Securities of
will impose any burden on intermarket Number SR–CBOE–2015–074. This file Certain NSCC Members
competition that is not necessary or number should be included on the
appropriate in furtherance of the subject line if email is used. To help the August 27, 2015.
purposes of the Act because the Commission process and review your Pursuant to section 19(b)(1) 1 of the
proposed rule change applies only to comments more efficiently, please use Securities Exchange Act of 1934 (‘‘Act’’)
CBOE. To the extent that the proposed only one method. The Commission will and Rule 19b–4 2 thereunder, notice is
changes make CBOE a more attractive post all comments on the Commission’s hereby given that on August 14, 2015,
marketplace for market participants at Internet Web site (http://www.sec.gov/ National Securities Clearing Corporation
other exchanges, such market rules/sro.shtml). Copies of the (‘‘NSCC’’) filed with the Securities and
participants are welcome to become submission, all subsequent Exchange Commission (‘‘Commission’’)
CBOE market participants. the proposed rule change as described
amendments, all written statements
C. Self-Regulatory Organization’s with respect to the proposed rule in Items I, II and III below, which Items
Statement on Comments on the change that are filed with the have been prepared by NSCC.3 NSCC
Proposed Rule Change Received From filed the proposed rule change pursuant
Commission, and all written
Members, Participants, or Others to section 19(b)(2) 4 of the Act. The
communications relating to the
Commission is publishing this notice to
The Exchange neither solicited nor proposed rule change between the solicit comments on the proposed rule
received comments on the proposed Commission and any person, other than change from interested persons.
rule change. those that may be withheld from the
public in accordance with the I. Clearing Agency’s Statement of the
III. Date of Effectiveness of the provisions of 5 U.S.C. 552, will be Terms of Substance of the Proposed
Proposed Rule Change and Timing for available for Web site viewing and Rule Change
Commission Action printing in the Commission’s Public The proposed rule change consists of
The foregoing rule change has become Reference Room, 100 F Street NE., amendments to NSCC’s Rules &
effective pursuant to Section 19(b)(3)(A) Washington, DC 20549 on official Procedures (‘‘Rules’’) in order to
of the Act 7 and paragraph (f) of Rule business days between the hours of enhance NSCC’s margining
19b–4 8 thereunder. At any time within 10:00 a.m. and 3:00 p.m. Copies of the methodology as applied to family-issued
60 days of the filing of the proposed rule filing also will be available for securities of NSCC Members 5 that are
change, the Commission summarily may inspection and copying at the principal placed on NSCC’s ‘‘Watch List’’, i.e.,
temporarily suspend such rule change if office of the Exchange. All comments those Members who present a
it appears to the Commission that such received will be posted without change; heightened credit risk to NSCC or have
action is necessary or appropriate in the the Commission does not edit personal demonstrated higher risk related to their
public interest, for the protection of identifying information from ability to meet settlement, as more fully
investors, or otherwise in furtherance of submissions. You should submit only described below.
the purposes of the Act. If the information that you wish to make II. Clearing Agency’s Statement of the
Commission takes such action, the available publicly. All submissions Purpose of, and Statutory Basis for, the
Commission will institute proceedings should refer to File Number SR–CBOE– Proposed Rule Change
to determine whether the proposed rule 2015–074 and should be submitted on
change should be approved or In its filing with the Commission,
or before September 23, 2015. NSCC included statements concerning
disapproved.
For the Commission, by the Division of the purpose of and basis for the
IV. Solicitation of Comments Trading and Markets, pursuant to delegated proposed rule change and discussed any
Interested persons are invited to authority.9 comments it received on the proposed
submit written data, views, and Robert W. Errett,
1 15 U.S.C. 78s(b)(1).
arguments concerning the foregoing, Deputy Secretary. 2 17 CFR 240.19b–4.
including whether the proposed rule [FR Doc. 2015–21671 Filed 9–1–15; 8:45 am] 3 On August 14, 2015, NSCC filed this proposed
change is consistent with the Act. BILLING CODE 8011–01–P rule change as an advance notice (SR–NSCC–2015–
Comments may be submitted by any of 803) with the Commission pursuant to section
the following methods: 806(e)(1) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act entitled the Payment,
mstockstill on DSK4VPTVN1PROD with NOTICES
Electronic Comments Clearing, and Settlement Supervision Act of 2010
(‘‘Clearing Supervision Act’’), 12 U.S.C. 5465(e)(1),
• Use the Commission’s Internet and Rule 19b–4(n)(1)(i) of the Act, 17 CFR 240.19b–
comment form (http://www.sec.gov/ 4(n)(1)(i). A copy of the advance notice is available
at http://www.dtcc.com/legal/sec-rule-filings.aspx.
rules/sro.shtml); or 4 15 U.S.C. 78s(b)(2).
5 Terms not defined herein are defined in the
7 15 U.S.C. 78s(b)(3)(A). Rules, available at http://dtcc.com/∼/media/Files/
8 17 CFR 240.19b–4(f). 9 17 CFR 200.30–3(a)(12). Downloads/legal/rules/nscc_rules.pdf.
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![Federal Register / Vol. 80, No. 170 / Wednesday, September 2, 2015 / Notices 53221
normal market conditions so that the Second, by limiting NSCC’s exposures Comments may be submitted by any of
operations of the clearing agency would to losses that it may face in clearing the following methods:
not be disrupted and non-defaulting family-issued securities of such
participants would not be exposed to Electronic Comments
Members, the proposed rule change
losses that they cannot anticipate or would contribute to the goal of • Use the Commission’s Internet
control.14 Rule 17Ad–22(b)(2), maintaining financial stability in the comment form (http://www.sec.gov/
promulgated under the Act, requires event of the default of a Member on the rules/sro.shtml); or
NSCC to use risk-based models for Watch List, which would help facilitate
setting margin requirements.15 the prompt and accurate clearance and • Send an email to rule-comments@
By enhancing the margin settlement of securities transactions and sec.gov. Please include File Number SR–
methodology as applied to the family- protect investors and the public interest, NSCC–2015–003 on the subject line.
issued securities of its Members that are in furtherance of the requirements of the Paper Comments
on its Watch List, the proposed rule Act applicable to NSCC, as discussed
change would assist NSCC in collecting above. • Send paper comments in triplicate
margin that more accurately reflects the As such, NSCC believes any burden to Brent J. Fields, Secretary, Securities
risk characteristics of these securities, on competition resulting from the and Exchange Commission, 100 F Street
thereby limiting NSCC’s exposures to proposed rule change would be both NE., Washington, DC 20549–1090.
potential losses from defaults by these necessary and appropriate in All submissions should refer to File
Members under normal market furtherance of the purposes of the Act, Number SR–NSCC–2015–003. This file
conditions. By more closely capturing in particular section 17A(b)(3)(F) of the number should be included on the
the risk characteristics of these Act and Rule 17Ad–22(b)(1) and (2), subject line if email is used. To help the
positions, the proposed enhancement to promulgated under the Act, cited above. Commission process and review your
the margining methodology would also
(C) Clearing Agency’s Statement on comments more efficiently, please use
assist NSCC in its continuous efforts to
Comments on the Proposed Rule only one method. The Commission will
ensure the reliability and effectiveness
Change Received From Members, post all comments on the Commission’s
of its risk-based margining
Participants, or Others Internet Web site (http://www.sec.gov/
methodology. In this way, the proposed
rules/sro.shtml). Copies of the
rule change would help NSCC, as a In November 2013, NSCC engaged in submission, all subsequent
central counterparty, maintain effective outreach to its Members by providing amendments, all written statements
risk controls, contributing to the goal of those Members with a description of the with respect to the proposed rule
maintaining financial stability in the proposed rule change and the results of change that are filed with the
event of a Member default. an impact study showing the potential
Therefore, NSCC believes the Commission, and all written
impact of this proposal on Members’ communications relating to the
proposed rule change is consistent with Clearing Fund required deposits. NSCC
the requirements of the Act and the proposed rule change between the
did not receive any written comments Commission and any person, other than
rules and regulations promulgated relating to this proposed rule change in
thereunder applicable to NSCC, in those that may be withheld from the
response to this outreach. NSCC will public in accordance with the
particular section 17A(b)(3)(F) of the notify the Commission of any written
Act and Rule 17Ad–22(b)(1) and (2), provisions of 5 U.S.C. 552, will be
comments received by NSCC. available for Web site viewing and
promulgated under the Act, cited above.
III. Date of Effectiveness of the printing in the Commission’s Public
(B) Clearing Agency’s Statement on Proposed Rule Change, and Timing for Reference Room, 100 F Street NE.,
Burden on Competition Commission Action Washington, DC 20549 on official
The proposed rule change may business days between the hours of
Within 45 days of the date of 10:00 a.m. and 3:00 p.m. Copies of the
impose a burden on competition by
publication of this notice in the Federal filing also will be available for
applying the enhanced margining
Register or within such longer period inspection and copying at the principal
methodology only to NSCC Members on
up to 90 days (i) as the Commission may office of NSCC and on DTCC’s Web site
NSCC’s Watch List. However, NSCC
designate if it finds such longer period (http://dtcc.com/legal/sec-rule-
believes any related burden on
to be appropriate and publishes its filings.aspx). All comments received
competition would be necessary and
reasons for so finding or (ii) as to which will be posted without change; the
appropriate, as permitted by section
the self-regulatory organization Commission does not edit personal
17A(b)(3)(I) of the Act for a number of
consents, the Commission will: identifying information from
reasons.16
First, while NSCC will continue to (A) By order approve or disapprove submissions. You should submit only
review its exposures to wrong-way risk such a proposed rule change, or information that you wish to make
and will consider expanding the (B) institute proceedings to determine available publicly. All submissions
application of the proposed margining whether the proposed rule change should refer to File Number SR–NSCC–
methodology to additional Members, should be disapproved. 2015–003 and should be submitted on
NSCC has determined to initially limit The proposal shall not take effect or before September 23, 2015.
the applicability of the proposed rule until all regulatory actions required
For the Commission, by the Division of
change to Members on its Watch List with respect to the proposal are Trading and Markets, pursuant to delegated
mstockstill on DSK4VPTVN1PROD with NOTICES
because those Members present a completed. authority.17
heightened credit risk to the clearing IV. Solicitation of Comments Robert W. Errett,
agency or have demonstrated a higher Deputy Secretary.
risk in their ability to meet settlement. Interested persons are invited to
submit written data, views and [FR Doc. 2015–21670 Filed 9–1–15; 8:45 am]
14 17 CFR 240.17Ad–22(b)(1). arguments concerning the foregoing, BILLING CODE 8011–01–P
15 17 CFR 240.17Ad–22(b)(2). including whether the proposed rule
16 5 U.S.C. 78q–1(b)(3)(I). change is consistent with the Act. 17 17 CFR 200.30–3(a)(12).
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Document Created: 2018-02-26 10:10:41
Document Modified: 2018-02-26 10:10:41
| 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 53219 |
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