Notice2025-13917
CME Securities Clearing, Inc.; Notice of Designation of a Longer Period for Commission Action on Proceedings To Determine Whether To Grant or Deny an Application for Registration as a Clearing Agency Under Section 17A of the Securities Exchange Act of 1934
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
July 24, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 140 (Thursday, July 24, 2025)</title>
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[Federal Register Volume 90, Number 140 (Thursday, July 24, 2025)]
[Notices]
[Pages 34938-34939]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-13917]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-34-103514; File No. 600-44]
CME Securities Clearing, Inc.; Notice of Designation of a Longer
Period for Commission Action on Proceedings To Determine Whether To
Grant or Deny an Application for Registration as a Clearing Agency
Under Section 17A of the Securities Exchange Act of 1934
July 21, 2025.
On December 13, 2024, CME Securities Clearing, Inc. (``CMESC'')
filed with the Securities and Exchange Commission (``Commission'') an
application on Form CA-1 (``Application'') under Section 17A of the
Securities Exchange Act of 1934 (``Exchange Act'') seeking to register
as a clearing agency.\1\ Notice of the Application was published for
comment in the Federal Register on January 22, 2025 (``Notice''),\2\
and the Commission received comment letters in response.\3\ On April
18, 2025, the Commission issued an order instituting proceedings to
determine whether to grant or deny the Application (``OIP''),\4\ and
the Commission received additional comment letters, including letters
from CMESC.
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\1\ 15 U.S.C. 78q-1. Non-confidential aspects of the
Application, including any exhibits thereto cited in this order, are
available on the Commission's website at <a href="https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/cme-form-ca-1">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/cme-form-ca-1</a>.
\2\ Release No. 34-102200 (Jan. 15, 2025), 90 FR 7713 (Jan. 22,
2025).
\3\ The public comment file for the Application is available on
the Commission's website at: <a href="https://www.sec.gov/comments/600-44/600-44.htm">https://www.sec.gov/comments/600-44/600-44.htm</a>.
\4\ Release No. 34-102889 (Apr. 18, 2025), 90 FR 17269 (Apr. 24,
2025).
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Section 19(a)(1)(B) of the Exchange Act provides that proceedings
instituted to determine whether to deny an application for registration
as a clearing agency shall be concluded within 180 days of the date of
a publication of notice of the filing of the application for
registration.\5\ At the conclusion of such proceedings, the Commission,
by order, shall grant or deny such registration.\6\ The Commission may
extend the time for conclusion of such proceedings for up to 90 days if
it finds good cause for such extension and publishes its reasons for so
finding.\7\ The Notice was published for comment in the Federal
Register on January 22, 2025.\8\ The 180th day after publication of the
Notice is July 21, 2025. The Commission is extending the time for
granting or denying CMESC's Application for registration as a clearing
agency for an additional 90 days.
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\5\ 15 U.S.C. 78s(a)(1)(B).
\6\ Id.
\7\ Id.
\8\ See supra note 2.
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The Commission finds good cause for extending the period for
granting or denying CMESC's Application because the extension will
provide additional time for the Commission to assess whether the
Application satisfies the requirements of Section 17A of the Exchange
Act and the rules and regulations thereunder for clearing agencies. In
the OIP, the Commission sought comment regarding the Application's
consistency with Section 17A(b)(3) of the Exchange Act. In addition, as
described in the OIP, CMESC proposes a novel structure with two types
of participants, Members and Users.\9\ This novel structure affects the
way in which CMESC conducts risk management, including its system for
margin collection, risk surveillance, and the rules pursuant to which
CMESC
[[Page 34939]]
would manage the default of multiple participants, including both
Members and Users.\10\ Therefore, the Commission believes there is good
cause to extend the time for conclusion of the proceedings for 90 days.
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\9\ 90 FR at 17272.
\10\ Id.
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Accordingly, pursuant to Section 19(a)(1)(B) of the Exchange
Act,\11\ the Commission designates October 19, 2025, as the date by
which the Commission shall either grant or deny CMESC's Application.
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\11\ 15 U.S.C. 78s(a)(1)(B).
By the Commission.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2025-13917 Filed 7-23-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on July 24, 2025.
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