September 1, 2022

SEC Approves Proposed Revisions to Clearing Organizations' Capital Requirements

The SEC approved individual proposals by the National Securities Clearing Corporation, the Fixed Income Clearing Corporation and The Depository Trust Company to increase capital requirements applicable to members and to amend related rules. The approval orders were published in the Federal Register (see here, here and here).

As previously covered, the clearing organizations proposed (i) increasing the minimum capital requirements applicable to certain members (for example, DTC would increase its minimum excess capital requirement from $500,000 to $1 million); (ii) combining the "enhanced surveillance list" and the "watch list," as both have essentially similar purposes; and (iii) non-substantive changes to improve readability and accessibility (including revising defined terms to facilitate the changes).