Notice2021-12244
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Modify the Calculation of the MBSD VaR Floor To Incorporate a Minimum Margin Amount
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 11, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 111 (Friday, June 11, 2021)</title>
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[Federal Register Volume 86, Number 111 (Friday, June 11, 2021)]
[Notices]
[Pages 31354-31355]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-12244]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92117; File No. SR-FICC-2020-017]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Designation of Longer Period for Commission Action on
Proceedings To Determine Whether To Approve or Disapprove a Proposed
Rule Change To Modify the Calculation of the MBSD VaR Floor To
Incorporate a Minimum Margin Amount
June 7, 2021.
On November 20, 2020, Fixed Income Clearing Corporation (``FICC'')
filed with the Securities and Exchange Commission (``Commission'')
proposed rule change SR-FICC-2020-017 (``Proposed Rule Change'')
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder.\2\ The Proposed Rule Change
was published for comment in the Federal Register on December 10,
2020.\3\ On December 30, 2020, pursuant to Section 19(b)(2) of the
Act,\4\ the Commission designated a longer period within which to
approve, disapprove, or institute proceedings to determine whether to
approve or disapprove the Proposed Rule Change.\5\ On February 16,
2021, the Commission instituted proceedings to determine whether to
approve or disapprove the Proposed Rule Change.\6\ The Commission
received comment letters on the Proposed Rule Change.\7\ In addition,
the Commission received a letter from FICC responding to the public
comments.\8\
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 90568 (December 4,
2020), 85 FR 79541 (December 10, 2020) (SR-FICC-2020-017)
(``Notice''). FICC also filed the proposal contained in the Proposed
Rule Change as advance notice SR-FICC-2020-804 (``Advance Notice'')
with the Commission pursuant to Section 806(e)(1) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act entitled the Payment,
Clearing, and Settlement Supervision Act of 2010 (``Clearing
Supervision Act''). 12 U.S.C. 5465(e)(1); 17 CFR 240.19b-4(n)(1)(i).
Notice of filing of the Advance Notice was published for comment in
the Federal Register on January 6, 2021. Securities Exchange Act
Release No. 90834 (December 31, 2020), 86 FR 584 (January 6, 2021)
(File No. SR-FICC-2020-804) (``Notice of Filing''). Upon publication
of the Notice of Filing, the Commission extended the review period
of the Advance Notice for an additional 60 days because the
Commission determined that the Advance Notice raised novel and
complex issues. On March 12, 2021, the Commission issued a request
for information regarding the Advance Notice. See Commission's
Request for Additional Information, available at <a href="https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804-8490035-229981.pdf">https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804-8490035-229981.pdf</a>. On April 16, 2021, FICC submitted its response thereto.
See Response to Commission's Request for Additional Information,
available at <a href="https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804-8685526-235624.pdf">https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804-8685526-235624.pdf</a>; Letter from James Nygard, Director
and Assistant General Counsel, FICC (April 16, 2021), available at
<a href="https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804-8679555-235605.pdf">https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804-8679555-235605.pdf</a>. The proposal contained in the Proposed Rule Change and
the Advance Notice shall not take effect until all regulatory
actions required with respect to the proposal are completed.
\4\ 15 U.S.C. 78s(b)(2).
\5\ Securities Exchange Act Release No. 90794 (December 23,
2020), 85 FR 86591 (December 30, 2020) (SR-FICC-2020-017).
\6\ Securities Exchange Act Release No. 91092 (February 9,
2021), 86 FR 9560 (February 16, 2021) (SR-FICC-2020-017).
\7\ Comments on the Proposed Rule Change are available at
<a href="https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017.htm">https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017.htm</a>.
Comments on the Advance Notice are available at <a href="https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804.htm">https://www.sec.gov/comments/sr-ficc-2020-804/srficc2020804.htm</a>. Because the proposals
contained in the Advance Notice and the Proposed Rule Change are the
same, all comments received on the proposal were considered
regardless of whether the comments were submitted with respect to
the Advance Notice or the Proposed Rule Change.
\8\ See Letter from Timothy J. Cuddihy, Managing Director of
Depository Trust & Clearing Corporation Financial Risk Management,
(March 5, 2021) (``FICC Letter'').
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Section 19(b)(2) of the Act \9\ provides that proceedings to
determine whether to approve or disapprove a proposed rule change must
be concluded within 180 days of the date of publication of notice of
filing of the proposed rule change. The time for conclusion of the
proceedings may be extended for up to 60 days if the Commission
determines that a longer period is appropriate and publishes the
reasons for such determination.\10\ The 180th day after publication of
the Notice in the Federal Register is June 8, 2021.
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\9\ 15 U.S.C. 78s(b)(2).
\10\ 15 U.S.C. 78s(b)(2)(B)(ii)(II).
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The Commission is extending the period for Commission action on the
Proposed Rule Change. The Commission finds that it is appropriate to
designate a longer period within which to take action on the Proposed
Rule Change so that the Commission has sufficient time to consider the
issues raised by the Proposed Rule Change and to take action on the
Proposed Rule Change. Accordingly, pursuant to Section
19(b)(2)(B)(ii)(II) of the Act,\11\ the Commission designates August 7,
2021, as the date by which the Commission should either approve or
disapprove the Proposed Rule Change SR-FICC-2020-017.
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\11\ Id.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
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\12\ 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-12244 Filed 6-10-21; 8:45 am]
BILLING CODE 8011-01-P
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