FICC Sets Comment Deadline on Rules for Mandated Clearing of US Government Securities
Commentary by Steven Lofchie
Comments are due on or before July 22, 2024, on the Fixed Income Clearing Corporation's ("FICC") second set of proposed rules that would mandate that a central clearing agency for US Government securities require its members to clear certain of their cash market and repurchase transactions. (See previous coverage.)
Commentary
Two items that firms may want to comment on:
- the FICC rule proposal requires that a FICC clearing member clear all of its eligible transactions through FICC, even if another clearing agency registers with the SEC; and
- among FICC's proposed compliance requirements are certifications from senior officers of the clearing firm; this will be particularly onerous for non-US banks that must obtain certifications from their senior officers or directors.
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The Fixed Income Clearing Corporation proposed new rules in response to SEC amendments mandating that a central clearing agency for US Government securities require its members to clear certain of their cash market and repurchase transactions.