Notice2025-11184
Self-Regulatory Organizations; The Depository Trust Company; Fixed Income Clearing Corporation; National Securities Clearing Corporation; Notice of Filing of Partial Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Partial Amendment No. 1, To Update the Clearing Agency Securities Valuation Framework To Include Use of Substantive Inputs
Primary source
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Published
June 18, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 116 (Wednesday, June 18, 2025)</title>
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[Federal Register Volume 90, Number 116 (Wednesday, June 18, 2025)]
[Notices]
[Pages 26080-26084]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-11184]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103253; File No. SR-DTC-2025-006; SR-FICC-2025-009; SR-
NSCC-2025-006]
Self-Regulatory Organizations; The Depository Trust Company;
Fixed Income Clearing Corporation; National Securities Clearing
Corporation; Notice of Filing of Partial Amendment No. 1 and Order
Granting Accelerated Approval of a Proposed Rule Change, as Modified by
Partial Amendment No. 1, To Update the Clearing Agency Securities
Valuation Framework To Include Use of Substantive Inputs
June 13, 2025.
I. Introduction
On April 15, 2025, The Depository Trust Company (``DTC''), Fixed
Income Clearing Corporation (``FICC''), and National Securities
Clearing Corporation (``NSCC'') (collectively, the ``Clearing
Agencies'') \1\ filed with the Securities and Exchange Commission
(``Commission'') proposed rule changes SR-DTC-2025-006, SR-FICC-2025-
009, and SR-NSCC-2025-006, respectively, pursuant to Section 19(b)(1)
of the Securities Exchange Act of 1934 (``Act'') \2\ and Rule 19b-4
thereunder.\3\ The proposed rule changes would update the Clearing
Agencies' Securities Valuation Framework (``Framework'') concerning the
use of timely price data and other substantive inputs by the Clearing
Agencies. The proposed rule changes were published for comment in the
Federal Register on May 2, 2025.\4\ The Commission has received no
comments on the proposed rule changes.
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\1\ The Clearing Agencies are subsidiaries of The Depository
Trust & Clearing Corporation (``DTCC'').
\2\ 15 U.S.C. 78s(b)(1).
\3\ 17 CFR 240.19b-4.
\4\ See Securities Exchange Act Release No. 102938 (Apr. 28,
2025), 90 FR 18880 (May 2, 2025) (File No. SR-DTC-2025-006) (``DTC
Notice of Filing''); Securities Exchange Act Release No. 102939
(Apr. 28, 2025), 90 FR 18884 (May 2, 2025) (File No. SR-FICC-2025-
009) (``FICC Notice of Filing''); Securities Exchange Act Release
No. 102940 (Apr. 28, 2025), 90 FR 18875 (May 2, 2025) (File No. SR-
NSCC-2025-006) (``NSCC Notice of Filing'').
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On June 11, 2025, each of the Clearing Agencies filed an identical
Partial Amendment No. 1 to their respective proposed rule changes, to
provide supplemental information to assist the Commission in its
analysis of the proposed rule changes.\5\ Partial Amendment No. 1 does
not substantively change the proposed rule changes. The proposed rule
changes, as modified by Partial Amendment No. 1, are hereinafter
referred to as the ``Proposed Rule Changes.'' The Commission is
publishing this notice to solicit comments on Partial Amendment No. 1
from interested persons, and, for the reasons discussed below, the
Commission is approving the Proposed Rule Changes on an accelerated
basis.
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\5\ Partial Amendment No. 1 consists of a draft inventory of
substantive inputs and related policies and procedures, filed as
Exhibit 3 to the proposed rule changes. Partial Amendment No. 1
provides supporting information describing how the Clearing Agencies
would implement the proposed rule changes. The Clearing Agencies
have requested confidential treatment of Exhibit 3, pursuant to 17
CFR 240.24b-2.
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II. Background
As central counterparties (``CCPs''), FICC and NSCC provide
clearance settlement services for the U.S. fixed income markets and
equities markets, respectively.\6\ A key tool that the CCPs use to
manage the credit exposure to their members is the daily collection of
margin from each member. For FICC, the aggregated amount of all GSD and
MBSD members' margin constitutes each division's respective mutualized
Clearing Fund, which FICC would be able to access in certain member
default scenarios if a defaulted member's own margin is insufficient to
satisfy losses FICC caused by the liquidation of that member's
portfolio.\7\ Similarly, for NSCC, the aggregated amount of its daily
collection of margin from members constitutes NSCC's mutualized
Clearing Fund, which NSCC would be able to access in certain member
default scenarios.\8\
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\6\ FICC operates two divisions, the Government Securities
Division (``GSD''), which provides clearance and settlement services
for U.S. government securities and the Mortgage-Backed Securities
Division (``MBSD''), which provides clearance and settlement
services for the U.S. mortgage-backed securities market. GSD and
MBSD maintain separate sets of rules and margin models. The GSD
Rulebook (``GSD Rules''), MBSD Clearing Rules (``MBSD Rules''), NSCC
Rules & Procedures (``NSCC Rules'') (the ``CCP Rules,'' and together
with the DTC Rules, By-Laws and Organization Certificate (``DTC
Rules'') (the ``Clearing Agency Rules'')) are available at <a href="https://www.dtcc.com/legal/rules-and-procedures.aspx">https://www.dtcc.com/legal/rules-and-procedures.aspx</a>.
\7\ See GSD Rule 4 and MBSD Rule 4, supra note 6.
\8\ See NSCC Rule 4, supra note 6.
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Prior to October 25, 2024, Rule 17ad-22(e)(6)(iv) \9\ set forth
requirements for CCPs to, among other things, establish a
[[Page 26081]]
risk-based margin system that, at a minimum, uses reliable sources of
timely price data and uses procedures and sound valuation models for
addressing circumstances in which price data are not readily available
or reliable.\10\ On October 25, 2024, the Commission adopted amendments
to Rule 17ad-22(e)(6)(iv),\11\ adding new requirements for CCPs relying
upon substantive inputs to their risk-based margin models.\12\
Specifically, the amendments in the Adopting Release expanded the scope
of Rule 17ad-22(e)(6)(iv) to include requiring the use of reliable
sources for substantive data inputs (other than price data), including
when such substantive inputs are not readily available or reliable.\13\
Since the unavailability or unreliability of any substantive input to a
CCP's margin system could potentially affect its ability to calculate
margin, the Commission stated that the new requirements should help
ensure that CCPs can continue to calculate and collect margin pursuant
to their obligations under Rule 17ad-22(e)(6).\14\
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\9\ 17 CFR 240.17ad-22(e)(6)(iv).
\10\ The Framework currently sets forth the manner in which the
Clearing Agencies identify, measure, monitor, and manage the risks
related to the pricing of securities processed or otherwise held by
each Clearing Agency, including (1) CUSIPs eligible for clearance
and settlement processing by a Clearing Agency, and (2) eligible
CUSIPs in a CCP's Clearing Fund.
\11\ 17 CFR 240.17ad-22(e)(6)(iv).
\12\ Securities Exchange Act Release No. 101446 (Oct. 25, 2024),
89 FR 91000 (Nov. 18, 2024) (File No. S7-10-23) (``Adopting
Release''). A substantive input refers to any input used by a CCP
that is necessary for the risk-based margin system to calculate
margin. Such inputs could include, for example, portfolio size,
volatility, sensitivity to various risk factors that are likely to
influence security prices, convexity, and the results of margin
models run by third parties. See id. at 91012.
\13\ See Adopting Release, supra note 12.
\14\ See Securities Exchange Act Release No. 97516 (May 17,
2023), 88 FR 34708, 34715 (May 30, 2023).
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III. Description of the Proposed Rule Change
The Clearing Agencies propose to revise the Framework to address
the new Rule 17ad-22(e)(6)(iv) requirements in the Adopting
Release.\15\ Specifically, the Clearing Agencies propose to (1) add a
new section to the Framework that addresses substantive inputs to the
CCPs' margin systems, and (2) make clarifying and conforming changes
throughout the Framework, such as adding a glossary of key terms,
clarifying the section regarding price input data, and adding
references to both price data and substantive margin input data where
appropriate.
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\15\ See Adopting Release, supra note 12.
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A. Proposed New Framework Section Addressing Substantive (Non-Pricing)
Margin Input Data
The proposed new section of the Framework would provide that FICC
and NSCC, as CCPs, maintain policies and procedures for evaluating
substantive inputs (other than price data, which would continue to be
addressed in a separate, existing section of the Framework) to their
margin systems. The new section would describe how the CCPs determine
which inputs are ``Substantive Inputs'' (as defined in the new
glossary).\16\ Specifically, Substantive Inputs would be those non-
price inputs that a CCP determines are ``necessary'' and
``consequential'' to the calculation of its margin requirements.\17\ A
data input would be deemed ``necessary'' if the relevant margin
calculation could not be performed without some form of the data
input.\18\ A data input would be deemed ``consequential'' if the
unavailability or unreliability of the data input would impact margin
requirements such that a CCP would not be able to adequately cover the
risk intended to be addressed by the relevant margin model, component,
or charge.\19\ The new section would also describe how the CCPs
maintain an inventory of Substantive Inputs and alternative sources or
margin systems/methodologies that do not rely on Substantive Inputs
that are unavailable or unreliable.\20\ Additionally, the new section
would address circumstances in which Substantive Inputs may not be
readily available or reliable.\21\
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\16\ Substantive Input would be defined as any data input, other
than price data, that a CCP determines is necessary and
consequential to the calculation of its respective margin
requirements, as discussed in Rule 17ad-22(e)(6)(iv). See DTC Notice
of Filing, supra note 4, at 18881; FICC Notice of Filing, supra note
4, at 18885; NSCC Notice of Filing, supra note 4, at 18876-77.
\17\ See DTC Notice of Filing, supra note 4, at 18881; FICC
Notice of Filing, supra note 4, at 18885; NSCC Notice of Filing,
supra note 4, at 18877.
\18\ See id.
\19\ See id.
\20\ See DTC Notice of Filing, supra note 4, at 18881; FICC
Notice of Filing, supra note 4, at 18885; NSCC Notice of Filing,
supra note 4, at 18876-77.
\21\ See id.
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The new section would also identify the DTCC personnel with
responsibilities to implement the various policies and procedures
regarding Substantive Inputs.\22\ Specifically, the Framework would
identify the relevant personnel responsible for: (i) reviewing and
determining whether each CCP's margin inputs are Substantive Inputs;
\23\ (ii) maintaining and annually reviewing the inventory of
Substantive Inputs; \24\ and (iii) defining, implementing, and annually
reviewing data quality rules, and regularly monitoring the ongoing
availability and reliability of each Substantive Input.\25\ In
accordance with applicable policies and procedures, the relevant
personnel would escalate any instance of an unavailable or unreliable
Substantive Input through the appropriate reporting chain, as described
in the Framework.\26\ Additionally, the relevant team(s) would maintain
policies and procedures to address such instances by substituting an
unavailable or unreliable Substantive Input with (1) a Substantive
Input from an alternative source, or (2) a risk-based margin system
that does not rely on the unavailable or unreliable Substantive
Input.\27\ The new section would specify that Substantive Inputs from
an alternate source (1) should meet the same level of reliability as
the primary source, (2) are not required to be sourced externally, and
(3) may be created internally.\28\ The new section would also specify
that an alternate source may be the result of internal policies and
procedures that establish a methodology or approach to determining an
appropriate input that meets the needs of the CCP's margin methodology
and maintains compliance with the overall requirements of Rule 17ad-
22(e)(6).\29\ Finally, the new section would specify that any
alternative risk-based margin system would be subject to the
requirements of Rule 17ad-22(e)(6)(vi) and (vii) with respect to
monitoring, review, testing, verification, and model validation.\30\
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\22\ See DTC Notice of Filing, supra note 4, at 18881; FICC
Notice of Filing, supra note 4, at 18885; NSCC Notice of Filing,
supra note 4, at 18877.
\23\ See id.
\24\ See id.
\25\ See id.
\26\ See id.
\27\ See id.
\28\ See id.
\29\ See id.
\30\ See id.
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B. Clarifying and Conforming Changes
The Clearing Agencies propose several improvements to the
Framework's clarity and readability, consistent with the amendments in
the Adopting Release. First, the Clearing Agencies propose to add a
glossary of key terms used throughout the Framework.\31\ The Clearing
Agencies also propose changes to update terms
[[Page 26082]]
and phrases throughout the Framework to align with the new
glossary.\32\
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\31\ See DTC Notice of Filing, supra note 4, at 18881-82; FICC
Notice of Filing, supra note 4, at 18885; NSCC Notice of Filing,
supra note 4, at 18877.
\32\ See id.
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Additionally, the Clearing Agencies propose changes to clarify the
description of the Framework's section regarding price data.\33\
Specifically, the proposed changes would clarify that each Clearing
Agency uses reliable sources of timely price data and maintains
policies and procedures to address circumstances in which price data
are not readily available or reliable.\34\ The proposed changes would
further clarify that such procedures include the use of price data from
an alternate source or an alternative valuation model/methodology.\35\
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\33\ See id.
\34\ See id.
\35\ See id.
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Finally, the Clearing Agencies propose several changes throughout
the Framework to conform its language with the substantive changes
described above in Section III.A. Specifically, whereas the current
Framework describes the Clearing Agencies' approach to securities
valuation (i.e., price data), the proposed changes would describe the
approach to both price data and non-price substantive margin input
data.\36\ These proposed changes include renaming the Framework as the
``Clearing Agency Price and Margin Input Data Framework'' and updating
the references to the applicable regulatory requirements to include
both price data and other substantive inputs.\37\
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\36\ See DTC Notice of Filing, supra note 4, at 18882; FICC
Notice of Filing, supra note 4, at 18885; NSCC Notice of Filing,
supra note 4, at 18877.
\37\ See id.
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IV. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act \38\ directs the Commission to
approve a proposed rule change of a self-regulatory organization if it
finds that such proposed rule change is consistent with the
requirements of the Act and rules and regulations thereunder applicable
to such organization. After carefully considering the Proposed Rule
Changes, the Commission finds that the Proposed Rule Changes are
consistent with the requirements of the Act and the rules and
regulations thereunder applicable to the Clearing Agencies. In
particular, the Commission finds that the Proposed Rule Changes are
consistent with Section 17A(b)(3)(F) \39\ of the Act and Rules 17ad-
22(e)(4)(i), (e)(6)(i), and (e)(6)(iv), each promulgated under the
Act.\40\
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\38\ 15 U.S.C. 78s(b)(2)(C).
\39\ 15 U.S.C. 78q-1(b)(3)(F).
\40\ 17 CFR 240.17ad-22(e)(4)(i), (e)(6)(i), and (e)(6)(iv).
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A. Consistency With Section 17A(b)(3)(F) of the Act
Section 17A(b)(3)(F) of the Act requires the rules of a clearing
agency to be designed to, among other things, (1) promote the prompt
and accurate clearance and settlement of securities transactions, and
(2) assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible.\41\ The Proposed Rule Changes are consistent with Section
17A(b)(3)(F) of the Act for the reasons stated below.
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\41\ 15 U.S.C. 78q-1(b)(3)(F).
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As described above in Section III.A., the Clearing Agencies propose
to add a new section to the Framework addressing non-price substantive
inputs to the CCPs' margin systems. The new section would describe how
the Clearing Agencies would evaluate margin system inputs to determine
whether such inputs are ``Substantive'' (i.e., necessary and
consequential) to their margin systems. The new section would describe
how the CCPs maintain an inventory of Substantive Inputs, as well as
policies and procedures for substituting unavailable or unreliable
Substantive Inputs with viable alternatives. The new section would also
identify the DTCC team(s) with various responsibilities regarding
Substantive Inputs.
Additionally, as described above in Section III.B., the Clearing
Agencies propose to clarify the Framework's section regarding price
data to continue to provide that each Clearing Agency uses reliable
sources of timely price data and has policies and procedures for viable
alternatives when the primary sources are not readily available or
reliable. Finally, as described above in Section III.B., the Clearing
Agencies propose changes to improve the readability of the Framework
and changes to conform the language of the Framework with the other
substantive changes described above.
The proposed new Framework section regarding Substantive Inputs is
designed to strengthen the CCPs' margin systems by codifying the manner
in which the CCPs would define and maintain the Substantive Inputs to
their margin systems and provide for viable alternatives when the
primary sources are unavailable or unreliable. The proposed
clarifications to the Framework section regarding price data are
designed to strengthen the CCPs' margin systems and DTC's risk
management tools that rely on price data \42\ by clarifying that the
CCPs and DTC use reliable primary and backup sources of price data.
Finally, the changes to improve the readability of the Framework are
designed to strengthen the CCPs' margin systems and DTC's risk
management tools by making implementation of the Framework more
efficient.
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\42\ DTC uses securities pricing data as a core input in several
of its risk management tools, including with respect to collateral
requirements, Net Debit monitoring, and Participants Fund sizing,
among other things. See, e.g., DTC Settlement Service Guide,
subsection titled ``Risk Management Controls,'' available at <a href="https://www.dtcc.com/-/media/Files/Downloads/legal/service-guides/Settlement.pdf">https://www.dtcc.com/-/media/Files/Downloads/legal/service-guides/Settlement.pdf</a>.
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By strengthening the CCPs' margin systems and DTC's risk management
tools, the proposed changes would enhance the Clearing Agencies'
ability to collect margin and other prefunded amounts sufficient to
manage the relevant risks presented by their members' and participants'
portfolios. As a result, the proposed changes should contribute to
limiting the Clearing Agencies' exposure in a member default scenario
and decrease the likelihood that losses arising out of a member default
would exceed the Clearing Agencies' prefunded resources, potentially
disrupting their operations, including their critical clearance and
settlement activities. Accordingly, the proposed changes should help
the Clearing Agencies to continue providing prompt and accurate
clearance and settlement of securities transactions in the event of a
member or participant default, consistent with Section 17A(b)(3)(F) of
the Act.
Additionally, as described above in Section II., the CCPs would
access the relevant mutualized Clearing Fund should a defaulted
member's own margin be insufficient to satisfy losses to a CCP caused
by the liquidation of that member's portfolio. However, by enhancing
the CCPs' ability to collect margin amounts sufficient to manage the
relevant risks, the proposed changes would contribute to limiting the
exposure of the CCPs' non-defaulting members to mutualized losses.
Similarly, the proposed clarifications regarding price data would
strengthen DTC's risk management tools that rely on price data, thereby
limiting DTC's non-defaulting participants to mutualized losses. By
helping to limit such exposure to mutualized losses, the proposed
changes should help the Clearing Agencies assure the safeguarding of
securities and funds
[[Page 26083]]
which are in their custody or control, consistent with Section
17A(b)(3)(F) of the Act.\43\
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\43\ 15 U.S.C. 78q-1(b)(3)(F).
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For these reasons, the Proposed Rule Changes are designed to
promote the prompt and accurate clearance and settlement of securities
transactions and assure the safeguarding of securities and funds which
are in the custody or control of the Clearing Agencies or for which
they are responsible, consistent with Section 17A(b)(3)(F) of the
Act.\44\
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\44\ See id.
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B. Consistency With Rule 17ad-22(e)(4)(i)
Rule 17ad-22(e)(4)(i) under the Act requires each covered clearing
agency to establish, implement, maintain and enforce written policies
and procedures reasonably designed to effectively identify, measure,
monitor, and manage its credit exposures to participants and those
arising from its payment, clearing, and settlement processes, including
by maintaining sufficient financial resources to cover its credit
exposure to each participant fully with a high degree of
confidence.\45\ The Proposed Rule Changes are consistent with Rule
17ad-22(e)(4)(i) under the Act for the reasons stated below.
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\45\ 17 CFR 240.17ad-22(e)(4)(i).
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As described above in Section IV.A., the proposed new Framework
section regarding Substantive Inputs is designed to strengthen the
CCPs' margin systems by codifying the manner in which the CCPs would
define and maintain the Substantive Inputs to their margin systems and
provide for viable alternatives when the primary sources are
unavailable or unreliable. The proposed clarifications to the Framework
section regarding price data are designed to strengthen the CCPs'
margin systems by clarifying that the CCPs use reliable primary and
backup sources of price data. Similarly, the proposed clarifications
regarding price data are designed to strengthen DTC's risk management
tools that rely on price data by clarifying that DTC uses reliable
primary and backup sources of price data. Finally, the changes to
improve the readability of the Framework are designed to strengthen the
CCPs' margin systems and DTC's risk management tools by making
implementation of the Framework more efficient.
By strengthening the CCPs' margin systems and DTC's risk management
tools, the proposed changes would enhance the Clearing Agencies'
ability to maintain sufficient financial resources to cover their
credit exposures to their members and participants. Accordingly, the
Proposed Rule Changes are reasonably designed to better enable the
Clearing Agencies to effectively identify, measure, monitor, and manage
their credit exposure to their members and participants, and those
arising from their payment, clearing, and settlement processes,
including by maintaining sufficient financial resources to cover their
credit exposures to each member and participant fully with a high
degree of confidence, consistent with Rule 17ad-22(e)(4)(i).\46\
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\46\ 17 CFR 240.17ad-22(e)(4)(i).
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C. Consistency With Rule 17ad-22(e)(6)(i)
Rule 17ad-22(e)(6)(i) under the Act requires each covered clearing
agency that provides central counterparty services (e.g., FICC and
NSCC), to establish, implement, maintain and enforce written policies
and procedures reasonably designed to cover its credit exposures to its
participants by establishing a risk-based margin system that, at a
minimum, considers, and produces margin levels commensurate with, the
risks and particular attributes of each relevant product, portfolio,
and market.\47\ The Proposed Rule Changes are consistent with Rule
17ad-22(e)(6)(i) under the Act for the reasons stated below.
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\47\ 17 CFR 240.17ad-22(e)(6)(i).
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As described above in Section IV.A., the proposed new Framework
section regarding Substantive Inputs is designed to strengthen the
CCPs' margin systems by codifying the manner in which the CCPs would
define and maintain the Substantive Inputs to their margin systems and
provide for viable alternatives when the primary sources are
unavailable or unreliable. The proposed clarifications to the Framework
section regarding price data are designed to strengthen the CCPs'
margin systems by clarifying that the CCPs use reliable primary and
backup sources of price data. Finally, the changes to improve the
readability of the Framework are designed to strengthen the CCPs'
margin systems by making implementation of the Framework more
efficient.
By strengthening the reliability of the Substantive Inputs and
price inputs to the CCPs' margin systems, the proposed changes would
enhance the CCPs' ability to calculate accurate margin amounts to cover
their credit exposures to their members' portfolios. Accordingly, the
Proposed Rule Changes are reasonably designed to enhance the Clearing
Agencies' risk-based margin systems to produces margin levels
commensurate with, the risks and particular attributes of each relevant
product, portfolio, and market, consistent with Rule 17ad-
22(e)(6)(i).\48\
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\48\ See id.
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D. Consistency With Rule 17ad-22(e)(6)(iv)
Rule 17ad-22(e)(6)(iv) under the Act requires each covered clearing
agency that provides central counterparty services (e.g., FICC and
NSCC), to establish, implement, maintain and enforce written policies
and procedures reasonably designed to cover its credit exposures to its
participants by establishing a risk-based margin system that, at a
minimum, (1) uses reliable sources of timely price data and other
substantive inputs, and (2) uses procedures (and, with respect to price
data, sound valuation models) for addressing circumstances in which
price data or other substantive inputs are not readily available or
reliable, to ensure that the covered clearing agency can continue to
meets its obligations under Rule 17ad-22.\49\ The Proposed Rule Changes
are consistent with Rule 17ad-22(e)(6)(iv) under the Act for the
reasons stated below.
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\49\ 17 CFR 240.17ad-22(e)(6)(iv).
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As described above in Section III.A, the proposed new Framework
section regarding Substantive Inputs would codify the manner in which
the CCPs would define and maintain the Substantive Inputs to their
margin systems and provide for viable alternatives when the primary
sources are unavailable or unreliable. The proposed clarifications to
the Framework section regarding price data would clarify that the CCPs
use reliable primary and backup sources of price data. Finally, the
changes to improve the readability of the Framework make implementation
of the Framework more efficient.
The foregoing changes would implement a risk-based margin system
that addresses the use of reliable and timely price data and other
substantive inputs, including procedures for addressing circumstances
in which the price data or other substantive inputs are not readily
available or reliable. Accordingly, the Proposed Rule Changes are
consistent with Rule 17ad-22(e)(6)(iv).\50\
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\50\ See id.
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V. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning whether Partial Amendment No. 1 is consistent with
the
[[Page 26084]]
Act. Comments may be submitted by any of the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5022253c357d333f3d3d353e2423102335337e373f26"><span class="__cf_email__" data-cfemail="7301061f165e101c1e1e161d0700330016105d141c05">[email protected]</span></a>. Please include
file numbers SR-DTC-2025-006, SR-FICC-2025-009, or SR-NSCC-2025-006 on
the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549.
All submissions should refer to file numbers SR-DTC-2025-006, SR-FICC-
2025-009, or SR-NSCC-2025-006. These file numbers should be included on
the subject line if email is used. To help the Commission process and
review your comments more efficiently, please use only one method. The
Commission will post all comments on the Commission's internet website
(<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>). Copies of the submission, all
subsequent amendments, all written statements with respect to the
proposed rule change that are filed with the Commission, and all
written communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549 on official
business days between the hours of 10 a.m. and 3 p.m. Copies of the
filing also will be available for inspection and copying at the
principal offices of DTC, FICC, and NSCC, and on DTCC's website
(<a href="https://www.dtcc.com/legal/sec-rule-filings.aspx">https://www.dtcc.com/legal/sec-rule-filings.aspx</a>). Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to File Number SR-DTC-2025-006, SR-FICC-2025-009, or SR-
NSCC-2025-006 and should be submitted on or before July 9, 2025.
VI. Accelerated Approval of the Proposed Rule Changes, as Modified by
Partial Amendment No. 1
The Commission finds good cause, pursuant to Section
19(b)(2)(C)(iii) of the Act,\51\ to approve the Proposed Rule Changes,
as modified by Partial Amendment No. 1, prior to the thirtieth day
after the date of publication of Partial Amendment No. 1 in the Federal
Register. As noted above, in Partial Amendment No. 1, the Clearing
Agencies filed Exhibit 3 \52\ to the Proposed Rule Changes to provide
supplemental information to assist the Commission in its analysis of
the Proposed Rule Changes. Specifically, Partial Amendment No. 1
consists of a draft inventory of substantive inputs and related
policies and procedures.\53\ Partial Amendment No. 1 neither modifies
the Proposed Rule Changes as originally published in any substantive
manner, nor does Partial Amendment No. 1 affect any rights or
obligations of the Clearing Agencies or their members and participants.
Instead, Partial Amendment No. 1 includes the policies and procedures
that the Clearing Agencies would follow to implement the Framework,
including those aspects of the Framework affected by the Proposed Rule
Changes. Additionally, since the Clearing Agencies filed Partial
Amendment No. 1 on June 11, 2025, the Commission has had sufficient
time to review and consider Partial Amendment No. 1 as part of its
analysis of the Proposed Rule Changes. Accordingly, the Commission
finds good cause, pursuant to Section 19(b)(2)(C)(iii) of the Act,\54\
to approve the Proposed Rule Changes, as modified by Partial Amendment
No. 1, prior to the thirtieth day after the date of publication of
notice of Partial Amendment No. 1 in the Federal Register.
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\51\ 15 U.S.C. 78s(b)(2)(C)(iii).
\52\ See supra note 5.
\53\ See id.
\54\ 15 U.S.C. 78s(b)(2)(C)(iii).
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VII. Conclusion
On the basis of the foregoing, the Commission finds that the
Proposed Rule Changes are consistent with the requirements of the Act
and in particular with the requirements of Section 17A of the Act \55\
and the rules and regulations promulgated thereunder.
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\55\ 15 U.S.C. 78q-1.
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It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\56\ that proposed rule changes SR-DTC-2025-006, SR-FICC-2025-009, and
SR-NSCC-2025-006, as modified by Partial Amendment No. 1, be, and
hereby are, approved.\57\
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\56\ 15 U.S.C. 78s(b)(2).
\57\ In approving the Proposed Rule Changes, the Commission
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\58\
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\58\ 17 CFR 200.30-3(a)(12).
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-11184 Filed 6-17-25; 8:45 am]
BILLING CODE 8011-01-P
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