The SEC proposed (i) amendments to current requirements on clearing agencies’ risk-based margin systems and (ii) a new rule on the content of clearing agencies' recovery and wind-down plans. On May 24, representatives from J.P. Morgan, Wells Fargo, Sia Partners and Fried Frank will address the implications of this rulemaking and the SEC's separate proposal on mandatory central clearing.
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House Financial Services Committee members urged the SEC to withdraw its proposed rule on “Safeguarding Advisory Client Assets.” The legislators argued that the proposal (i) deviates from traditional custody practices, (ii) increases the cost of custodial services and (iii) lacks a comprehensive economic analysis.
Trade associations representing a variety of constituencies urged the SEC not to adopt a proposal that would expand requirements under the Custody Rule.
ISDA argued the need for clarity in rules that govern the ownership of customer digital assets in the event of an intermediary’s insolvency. In a White Paper, ISDA asserted that the same "traditional and fundamental" protections that have been established through clear legal terms and the segregation of assets can also be applied to digital assets.
The CFTC set a comment deadline on proposed rule amendments which would codify no-action relief regarding the treatment of separate accounts by futures commission merchants ("FCMs"). The comment deadline was published in the Federal Register.