Clearing Organizations Propose Revisions to Capital Requirements
The National Securities Clearing Corporation, the Fixed Income Clearing Corporation, and the Depository Trust Company have each proposed rules to increase capital requirements and amend related rules. (See here, here, and here, respectively.)
The clearing organizations' proposed rules would (i) "increase minimum capital requirements for certain members"; (ii) "streamline its two credit risk monitoring systems, Watch List and enhanced surveillance list"; and (3) improve the "clarity and accessibility of the rules" (including revising defined terms to facilitate the changes).
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The SEC extended the period for action on a proposed rule change enhancing capital requirements for clearing organizations. The SEC designated March 29, 2022 as the new date by which it will "either approve, disapprove, or institute proceedings to determine whether to disapprove" the proposed rule change.
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Three securities clearing organizations filed proposals for rule changes with the SEC to raise capital requirements for their members.