SEC Sets Comment Deadline for Proposal on Clearing Agency Governance

Comments on an SEC proposal to establish new governance requirements for clearing agencies are due by October 7, 2022. The Notice was published in the Federal Register.

As previously covered, the proposal would update the policies and procedures regarding conflicts of interest for clearing agencies. The proposal included requirements as to board composition, independent directors, nominating committees and risk management committees for all registered clearing agencies. Additionally, it included a provision to withdraw previously proposed, but not adopted, SEC rules for governance standards at clearing agencies. The proposed conflicts of interest procedures and policies are intended to promote views of owners, participants and other relevant stakeholders in clearinghouse governance.