Federal Register: SEC Raises Risk Management Requirements for Clearing Agencies and Depositories

The SEC amended the definitions of "covered clearing agency," "central securities depository services," and "sensitivity analysis" to be applicable to central counterparties and securities depositories.

The SEC adopted final rules to enhance standards for systemically important and security-based swap clearing agencies. The final rules were published in the Federal Register.

The SEC voted to adopt final rules to establish enhanced standards for the operation and governance of securities clearing agencies that are deemed systemically important or are involved in complex transactions.

IOSCO and the Committee on Payments and Market Infrastructures published its third update to the Level 1 assessments of implementation monitoring of the Principles for Financial Market Infrastructures.

SEC Division of Trading and Markets Deputy Director Gary Barnett examined (i) the application of margin requirements on the different bank and broker-dealer business models, (ii) mandatory clearing in the area of single-name credit default swaps, and (iii) risk governance that includes the potential liability of corporate directors.

The Futures Industry Association urged the SEC to prioritize the finalization of enhanced standards for systemically important and security-based swap clearing agencies ("covered clearing agencies") in order to avoid potential market disruptions.