SEC Approves Clearing Organizations' Revisions to Capital Requirements
The SEC approved separate proposals by the National Securities Clearing Corporation, the Fixed Income Clearing Corporation and the Depository Trust Company to increase certain minimum capital requirements for members and make other adjustments.
The proposals were initiated in light of (i) changes in financial markets and regulations, (ii) exposure to market volatility, and (iii) the designation of these firms as systematically important financial market utilities. The capital requirements have not been updated in more than 20 years.
The revisions will (i) increase minimum capital requirements for certain members, (ii) streamline the watch list and enhanced surveillance list credit risk monitoring systems and (iii) improve the clarity and accessibility of the rules, including revising defined terms.
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