Notice2025-14753

Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Revise the Definition of the Backtesting Charge

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Published
August 5, 2025

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 90 Issue 148 (Tuesday, August 5, 2025)</title>
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[Federal Register Volume 90, Number 148 (Tuesday, August 5, 2025)]
[Notices]
[Pages 37608-37612]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14753]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103602; File No. SR-FICC-2025-017]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing of Proposed Rule Change To Revise the Definition of 
the Backtesting Charge

July 31, 2025.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on July 23, 2025, Fixed Income Clearing Corporation (``FICC'') filed 
with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II and III below, which 
Items have been prepared by the clearing agency. The Commission is 
publishing this notice to solicit comments on the proposed rule change 
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of modifications to FICC's 
Government Securities Division (``GSD'') Rulebook (``GSD Rules'') \3\ 
that would revise the definition of the Backtesting Charge to (1) 
clarify that the calculation of the backtesting coverage and any 
applicable Backtesting Charge does not include any amounts already 
collected as a Backtesting Charge; and (2) revise the calculation of 
both the backtesting coverage and any applicable Backtesting Charge to 
exclude all other margin amounts already collected intraday.
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    \3\ Terms not defined herein are defined in the GSD Rules, 
available at <a href="http://www.dtcc.com/legal/rules-and-procedures">www.dtcc.com/legal/rules-and-procedures</a>.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency included 
statements concerning the purpose of and basis for the proposed rule 
change and discussed any comments it received on the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. The clearing agency has prepared summaries, 
set forth in sections A, B, and C below, of the most significant 
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    FICC is proposing to revise the definition of Backtesting Charge in 
the GSD Rules to clarify the current calculation of that charge and 
adopt a change to the calculation.
    First, the proposed changes would clarify in the GSD Rules that the 
backtesting coverage calculated in connection with the Backtesting 
Charge and the calculation of that charge for a Netting Member or 
Segregated Indirect Participant do not include amounts collected from 
that Netting Member or Segregated Indirect Participant as a Backtesting 
Charge. This change, and other drafting changes to the definition of 
the Backtesting Charge described below, would reflect FICC's current 
practice and provide Members with a better understanding of the 
calculation of this margin component.
    Second, the proposed changes would revise the calculation of the 
backtesting coverage calculated in connection with the Backtesting 
Charge and the calculation of that charge by excluding amounts already 
collected intraday from the Netting Member or Segregated Indirect 
Participant as another component of the Required Fund Deposit or 
Segregated Customer Margin, as applicable. This proposed change would 
remove from these calculations an assumption that FICC would collect 
all intraday margin requirements before the Netting Member or 
Segregated Indirect Participant defaults. Therefore, the proposal would 
enhance FICC's ability to produce margin levels commensurate with the 
risks presented by its Members, in compliance with the requirements of 
Rule 17ad-22(e)(6)(i) under the Act.\4\
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    \4\ 17 CFR 240.17ad-22(e)(6)(i).
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Background
    FICC, through GSD, serves as a central counterparty and provider of 
clearance and settlement services for transactions in the U.S. 
government securities, as well as repurchase and reverse repurchase 
transactions involving U.S. government securities.\5\ As part of its 
market risk management strategy,\6\ FICC manages its credit exposure to 
Members by determining the appropriate Required Fund Deposit (or 
Segregated Customer Margin, when applicable) to the Clearing Fund and 
monitoring its sufficiency, as provided for in the GSD Rules.\7\ 
Required Fund Deposits and Segregated Customer Margin deposits serve as 
margin.
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    \5\ GSD also clears and settles certain transactions on 
securities issued or guaranteed by U.S. government agencies and 
government sponsored enterprises.
    \6\ FICC's market risk management strategy is designed to comply 
with Rule 17ad-22(e)(4) under the Act, where these risks are 
referred to as ``credit risks.'' 17 CFR 240.17ad-22(e)(4).
    \7\ See GSD Rule 4 (Clearing Fund and Loss Allocation), supra 
note 3. Segregated Customer Margin is, generally, the margin that an 
Agent Clearing Member or Sponsoring Member is required to deposit 
with FICC to support the obligations of its Segregated Indirect 
Participants. See GSD Rule 1 (Definitions), id.
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    The objective of a Member's Required Fund Deposits is to mitigate 
potential losses to FICC associated with liquidating a Member's 
portfolio in the event FICC ceases to act for that Member (hereinafter 
referred to as a ``default'').\8\

[[Page 37609]]

The aggregate amount of all Members' Required Fund Deposits constitutes 
the Clearing Fund, and FICC would access the Clearing Fund should a 
defaulting Member's own Required Fund Deposit be insufficient to 
satisfy losses to FICC caused by the liquidation of that Member's 
portfolio.
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    \8\ The GSD Rules identify when FICC may cease to act for a 
Member and the types of actions FICC may take. For example, FICC may 
suspend a firm's membership with FICC, or prohibit or limit a 
Member's access to FICC's services, in the event that Member 
defaults on a financial or other obligation to FICC. See GSD Rule 21 
(Restrictions on Access to Services), id.
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    Pursuant to the GSD Rules, each Member's Required Fund Deposit 
amount and each Segregated Indirect Participant's Segregated Customer 
Margin amount consists of a number of applicable components, each of 
which is calculated to address specific risks faced by FICC, as 
identified within the Margin Component Schedule in the GSD Rules.\9\ 
These components include, as applicable, the VaR Charge, Blackout 
Period Exposure Adjustment, Backtesting Charge, Holiday Charge, 
Intraday Supplemental Fund Deposit, Margin Liquidity Adjustment Charge, 
and Portfolio Differential Charge.\10\
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    \9\ See GSD Rules (Margin Component Schedule), id.
    \10\ Id.
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    FICC employs daily backtesting to determine the adequacy of each 
Member's Required Fund Deposit and Segregated Indirect Participant's 
Segregated Customer Margin. Backtesting is performed both for internal 
reporting and in connection with the calculation of the Backtesting 
Charge margin component. Through this backtesting, FICC compares the 
Required Fund Deposit \11\ for each Member with the simulated 
liquidation gains/losses using the actual positions in the Member's 
portfolio, and the actual historical security returns. FICC 
investigates the cause(s) of any backtesting deficiencies. As a part of 
this investigation, FICC pays particular attention to Members with 
backtesting deficiencies that bring the results for that Member below 
its 99 percent confidence target (i.e., greater than two backtesting 
deficiency days in a rolling 12-month period) to determine if there is 
an identifiable cause of repeat backtesting deficiencies. FICC also 
evaluates whether multiple Members may experience backtesting 
deficiencies for the same underlying reason.
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    \11\ For backtesting comparisons, FICC uses the Required Fund 
Deposit amount without regard to the actual collateral posted by the 
Member.
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    The Backtesting Charge is an additional charge that may be added to 
a Member's Required Fund Deposit or a Segregated Indirect Participant's 
Segregated Customer Margin at the start of the day and/or in an 
intraday margin collection.\12\ As described in the Margin Component 
Schedule in the GSD Rules, FICC may assess a Backtesting Charge if a 
Member or Segregated Indirect Participant has a 12-month trailing 
backtesting coverage below the 99 percent backtesting coverage target. 
If assessed, the Backtesting Charge is generally equal to the Member's 
or Segregated Indirect Participant's third largest deficiency that 
occurred during the previous 12 months.\13\ The GSD Rules provide FICC 
with the discretion to adjust the Backtesting Charge amount based on 
its assessment of the impact of other circumstances on the likelihood 
of, and estimated size of, future backtesting deficiencies for a 
Netting Member or Segregated Indirect Participant. Based on its 
assessment of the impact of these circumstances, FICC may, in its 
discretion, adjust the Backtesting Charge for a Netting Member or 
Segregated Indirect Participant in an amount that FICC determines to be 
more appropriate for maintaining such firm's backtesting results above 
the 99 percent coverage threshold (including a reasonable buffer).\14\
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    \12\ GSD Rules (Margin Component Schedule), supra note 3.
    \13\ Id.
    \14\ Such circumstances could include, for example, material 
differences in the three largest backtesting deficiencies observed 
over the prior 12-month period, variability in the net settlement 
activity after the collection of the Member's intraday Required Fund 
Deposit, seasonality in observed backtesting deficiencies and 
observed market price volatility in excess of the Member's 
historical VaR Charge(s).
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    The Backtesting Charge may be assessed on a Netting Member's or 
Segregated Indirect Participant's start of day portfolio (currently 
referred to in the GSD Rules as the ``Regular Backtesting Charge'') or 
on a Netting Member's or Segregated Indirect Participant's intraday 
portfolio (currently referred to in the GSD Rules as the ``Intraday 
Backtesting Charge''). FICC calculates the Backtesting Charge at least 
monthly and, based on those calculations, may either impose a new 
Backtesting Charge or remove an existing Backtesting Charge, or FICC 
may either increase or decrease an existing Backtesting Charge as 
necessary to maintain its target backtesting coverage.
Proposed Changes to the Definition of the Backtesting Charge
    FICC is proposing to make two changes to the definition of 
Backtesting Charge in the GSD Rules. The proposed changes would clarify 
FICC's existing practices in calculating this charge and reflect a 
change to that calculation.
    First, the proposed rule changes would clarify FICC's current 
practices with respect to the Backtesting Charge. These changes would 
state that, in calculating a Netting Member's or Segregated Indirect 
Participant's backtesting coverage (for purposes of calculating the 
Backtesting Charge) and in calculating any applicable Backtesting 
Charge, FICC does not include amounts already collected as a 
Backtesting Charge from that Netting Member or Segregated Indirect 
Participant. As described above, the objective of the Backtesting 
Charge is to increase Required Fund Deposits for Netting Members and 
Segregated Indirect Participants that are likely to experience 
backtesting deficiencies by an amount sufficient to maintain such 
firm's backtesting coverage above the 99 percent confidence threshold. 
By excluding amounts already collected as a Backtesting Charge from 
this calculation, FICC is able to more accurately evaluate a firm's 
historical backtesting deficiencies to determine if any adjustment to 
its Backtesting Charge is appropriate.
    FICC is also proposing to clarify in the definition of Backtesting 
Charge that the backtesting coverage calculation described therein is 
the coverage that is calculated for purposes of calculating the 
Backtesting Charge. FICC also performs backtesting for internal and 
regulatory reporting or other risk management purposes that may use a 
different methodology than the backtesting that is performed for 
purposes of calculating and assessing a Backtesting Charge. For 
example, FICC may include or exclude amounts already collected as a 
Backtesting Charge or as another margin component on an intraday basis 
in determining backtesting coverage for other risk management purposes. 
FICC's regulatory backtesting does not directly impact its Members and, 
therefore, is not described in the GSD Rules. However, because the two 
methodologies may differ, the proposed change would ensure no confusion 
between the different coverage calculations.
    The proposed changes would also remove the defined terms for 
Intraday Backtesting Charge and Regular Backtesting Charge from the 
definition of the Backtesting Charge. The definition would continue to 
state that the Backtesting Charges may be calculated on both the start 
of day and intraday portfolio of Netting Members and Segregated 
Indirect Participants. However, because the Backtesting Charge that is 
calculated and collected at the start of day and intraday

[[Page 37610]]

otherwise are identical, the two separate defined terms are not needed.
    Together, these clarifications to the definition of Backtesting 
Charge would reflect FICC's current practice and provide Members with a 
better understanding of the calculation of this margin component.
    Second, the proposed changes would revise the GSD Rules by 
excluding all other amounts that FICC has collected from a Netting 
Member or Segregated Indirect Participant intraday from the calculation 
of a Netting Member's or Segregated Indirect Participant's backtesting 
coverage (for purposes of calculating the Backtesting Charge) and in 
calculating any applicable Backtesting Charge. The rationale for this 
proposed change is the same as the rationale for excluding amounts 
already collected as a Backtesting Charge from the same calculations, 
as described above. Specifically, by excluding all margin resources 
that were collected intraday, the proposed change would make it less 
likely for FICC to undercount potential backtesting deficiencies. This 
change would remove from these calculations an assumption that FICC 
would collect all intraday margin requirements before the Netting 
Member or Segregated Indirect Participant default, because this 
assumption could underestimate the potential losses that FICC may 
experience if a Netting Member or Segregated Indirect Participant 
defaults prior to funding its intraday margin calls. Therefore, the 
proposal would enhance FICC's ability to produce margin levels 
commensurate with the risks presented by its Members, in compliance 
with the requirements of Rule 17ad-22(e)(6)(i) under the Act.\15\
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    \15\ 17 CFR 240.17ad-22(e)(6)(i).
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Proposed GSD Rule Changes
    FICC would modify the definition of Backtesting Charge in the 
Margin Component Schedule of the GSD Rules by removing the defined 
terms for ``Intraday Backtesting Charge'' and ``Regular Backtesting 
Charge''. The proposed changes would also modify the description of the 
12-month backtesting coverage that is used in determining when a 
Backtesting Charge may apply to a Netting Member or Segregated Indirect 
Participant by stating ``as such [backtesting] coverage is calculated 
for purposes of calculating the Backtesting Charge''.
    Finally, the proposed changes would include a paragraph in the 
definition of Backtesting Charge that states ``[i]n calculating a 
Netting Member's or Segregated Indirect Participant's backtesting 
coverage (for purposes of calculating the Backtesting Charge) and in 
calculating any applicable Backtesting Charge, the Corporation would 
not include amounts already collected from that Netting Member or 
Segregated Indirect Participant as (i) a Backtesting Charge, and (ii) 
other components of the Required Fund Deposit or Segregated Customer 
Margin, as applicable, on an intraday basis pursuant to this Margin 
Component Schedule.'' This proposed change would both clarify FICC's 
existing practice and reflect the proposed change to its calculation 
methodology described herein.
Impact Study
    FICC performed an impact study on Backtesting Charges collected for 
the period beginning June 3, 2024, through May 30, 2025 (``Impact Study 
Period'). If the proposed change to exclude amounts collected intraday 
had been in place during the Impact Study Period, the aggregate average 
daily Backtesting Charges would have increased by approximately 
$166.61MM or 121.2% for the start of the day margin cycle and $137.41MM 
or 90.3% for the intraday margin cycle at GSD. The impact study also 
indicated that if the proposed change had been in place, overall margin 
would have increased by approximately $166.61MM or 0.30% for the start 
of the day margin cycle and $137.41MM or 0.25% for the intraday margin 
cycle at GSD during the Impact Study Period.
    During the Impact Study Period, 29 Netting Members would have been 
impacted by the proposed changes to the charges applied to the start of 
the day margin cycle, and 19 Netting Members would have been impacted 
by the proposed changes to the charges applied to the intraday margin 
cycle.\16\ On average, at the impacted Member level, the proposed 
changes would have increased the Backtesting Charge applied during the 
start of the day margin cycle by approximately $5.95MM or 8.6% of each 
impacted Netting Member's overall margin requirement, and by 
approximately $7.61MM or 17.4% of each impacted Netting Member's 
overall margin requirement for the Backtesting Charge applied during 
the intraday margin cycle.
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    \16\ FICC did not have any Segregated Indirect Participants 
during the Impact Study Period.
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    The largest average percentage and dollar increases in the start of 
the day margin requirement for any Netting Member would have been 
approximately 91.8%, or $97.26MM (0.16% of the Netting Member's average 
Net Capital).\17\ The largest average percentage increase in the 
intraday margin requirement for any Netting Member would have been 
approximately 58.9%, or $6.09MM (0.01% of the Netting Member's average 
Net Capital). The largest average dollar increase in the intraday 
margin requirement for any Netting Member would have been approximately 
$46.52MM, or 48.1% (16.21% of the Netting Member's average Net 
Capital).
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    \17\ The term ``Net Capital'' means, as of a particular date, 
the amount equal to the net capital of a broker or dealer as defined 
in 17 CFR 240.15c3-1(c)(2), or any successor rule or regulation 
thereto. See GSD Rule 1 (Definitions), supra note 3.
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Implementation Timeframe
    FICC would implement the proposed rule change by no later than 60 
Business Days after approval by the Commission. FICC would announce the 
effective date of the proposed changes by an Important Notice posted to 
its website.
2. Statutory Basis
    FICC believes the proposed rule changes are consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a registered clearing agency. In particular, FICC 
believes the proposed rule changes are consistent with Section 
17A(b)(3)(F) of the Act,\18\ and Rules 17ad-22(e)(6)(i) and 
(e)(23)(ii), promulgated under the Act,\19\ for the reasons described 
below.
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    \18\ 15 U.S.C. 78q-1(b)(3)(F).
    \19\ 17 CFR 240.17ad-22(e)(6)(i) and (e)(23)(ii).
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    Section 17A(b)(3)(F) of the Act requires that the GSD Rules be 
designed to, among other things, promote the prompt and accurate 
clearance and settlement of securities transactions.\20\ The proposed 
rule changes would provide Members with a clearer understanding of the 
methodology used to calculate the Backtesting Charge by including in 
the GSD Rules a clear description of the exclusion of both Backtesting 
Charges and other intraday margin components from that methodology. 
Members would be better able to anticipate their risk management 
obligations to FICC and, therefore, manage the risks their clearing 
activity presents to FICC when the GSD Rules are clearer and more 
transparent regarding the margin calculation methodology. FICC believes 
this result would promote the prompt and accurate clearance and 
settlement of securities transactions and, as such, the proposed 
changes would be consistent with Section 17A(b)(3)(F) of the Act.\21\
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    \20\ 15 U.S.C. 78q-1(b)(3)(F).
    \21\ Id.

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[[Page 37611]]

    Rule 17ad-22(e)(6)(i) under the Act requires, in part, that FICC 
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.\22\ FICC is proposing to enhance the calculation 
methodology of the backtesting coverage used for purposes of 
calculating the Backtesting Charge and the calculation of the 
Backtesting Charge by excluding from those calculations other 
components of the Required Fund Deposit or Segregated Customer Margin, 
as applicable, that had been collected on an intraday basis. This 
revision to the calculation methodology would remove an assumption that 
FICC's Netting Members or Segregated Indirect Participants would only 
default after they had met those intraday margin requirements. In this 
way, the revised calculation methodology for the backtesting coverage 
and Backtesting Charge would better cover FICC's credit exposures to 
these participants, consistent with the requirements of Rule 17ad-
22(e)(6)(i).\23\
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    \22\ 17 CFR 240.17ad-22(e)(6)(i).
    \23\ Id.
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    Rule 17ad-22(e)(23)(ii) under the Act requires that FICC establish, 
implement, maintain and enforce written policies and procedures 
reasonably designed to provide for sufficient information to enable 
participants to identify and evaluate the risks, fees, and other 
material costs they incur by participating in the covered clearing 
agency.\24\ The proposed rule change would enhance the definition of 
the Backtesting Charge by providing Members with a better understanding 
of the calculation methodology utilized for both the relevant 
backtesting coverage and the Backtesting Charge. The proposed rule 
change would also make revisions to that definition by removing 
unnecessary defined terms for ``Intraday Backtesting Charge'' and 
``Regular Backtesting Charge'' in order to simplify the description of 
the Backtesting Charge. Finally, the proposed rule change would include 
additional clarification that the backtesting coverage referred to in 
the definition is the coverage that is a calculation for purposes of 
calculating the Backtesting Charge. These changes would collectively 
simplify the definition of the Backtesting Charge and provide Members 
with additional information regarding the related margin requirements. 
In this way, the proposal would enhance Members' ability to evaluate 
the risks and material costs they may incur by participating in FICC 
and, as such, FICC believes the proposed changes are consistent with 
the requirements of Rule 17ad-22(e)(23)(ii).\25\
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    \24\ 17 CFR 240.17ad-22(e)(23)(ii).
    \25\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of Act requires that the rules of a clearing 
agency do not impose any burden on competition not necessary or 
appropriate in furtherance of the purposes of the Act.\26\ FICC does 
not believe the proposed rule change would present any burden or have a 
material impact on competition.
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    \26\ 15 U.S.C. 78q-1(b)(3)(I).
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    First, the proposed changes are designed to ensure that the GSD 
Rules remain transparent, accurate and clear. The proposal would 
accomplish this by providing a clearer description of the calculation 
of the backtesting coverage and the Backtesting Charge, removing 
unnecessary defined terms for ``Intraday Backtesting Charge'' and 
``Regular Backtesting Charge'' and clarifying in the GSD Rules that the 
backtesting coverage referenced therein is the coverage utilized in 
connection with calculating the Backtesting Charge. These proposed 
changes would not have an impact on competition.
    Second, the proposed changes are intended to facilitate FICC's 
compliance with the requirements of the Act and the rules and 
regulations thereunder applicable to a registered clearing agency. 
Specifically, the proposal would enhance the calculation of the 
backtesting coverage and Backtesting Charge to exclude additional 
components of the Required Fund Deposit or Segregated Customer Margin, 
as applicable, that had been collected on an intraday basis. This 
proposed change would remove an assumption that FICC's Netting Members 
or Segregated Indirect Participants would only default after they had 
met those intraday margin requirements. While this change could result 
in an increase to Members' Backtesting Charges, when such charges are 
applicable, the change would apply equally to all Members and would not 
inhibit access to FICC's services or favor any particular Member over 
another. Furthermore, the proposed enhancement would result in a 
calculation of the backtesting coverage and Backtesting Charge that 
would better cover FICC's credit exposures to its Members and, as such, 
FICC believes this proposed change is necessary and appropriate to 
facilitate its compliance with requirements of Rule 17ad-22(e)(6)(i) 
under the Act.\27\ Therefore, FICC does not believe that the proposed 
rule change would impose any burden on competition that is not 
necessary or appropriate in furtherance of the purposes of the Act.
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    \27\ 17 CFR 240.17ad-22(e)(6)(i).
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(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    FICC has not received or solicited any written comments relating to 
this proposal. If any additional written comments are received, they 
will be publicly filed as an Exhibit 2 to this filing, as required by 
Form 19b-4 and the General Instructions thereto.
    Persons submitting comments are cautioned that, according to 
Section IV (Solicitation of Comments) of the Exhibit 1A in the General 
Instructions to Form 19b-4, the Commission does not edit personal 
identifying information from comment submissions. Commenters should 
submit only information that they wish to make available publicly, 
including their name, email address, and any other identifying 
information.
    All prospective commenters should follow the Commission's 
instructions on how to submit comments, available at <a href="http://www.sec.gov/rules-regulations/how-submit-comment">www.sec.gov/rules-regulations/how-submit-comment</a>. General questions regarding the rule 
filing process or logistical questions regarding this filing should be 
directed to the Main Office of the SEC's Division of Trading and 
Markets at <a href="/cdn-cgi/l/email-protection#a3d7d1c2c7cacdc4c2cdc7cec2d1c8c6d7d0e3d0c6c08dc4ccd5"><span class="__cf_email__" data-cfemail="4034322124292e27212e242d21322b253433003325236e272f36">[email&#160;protected]</span></a> or 202-551-5777.
    FICC reserves the right to not respond to any comments received.

III. Date of Effectiveness of the Proposed Rule Change, and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) by order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.

[[Page 37612]]

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5220273e377f313d3f3f373c2621122137317c353d24"><span class="__cf_email__" data-cfemail="ef9d9a838ac28c8082828a819b9caf9c8a8cc1888099">[email&#160;protected]</span></a>. Please include 
file number SR-FICC-2025-017 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 number SR-FICC-2025-017. This file 
number 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and 
copying at the principal office of FICC and on DTCC's website 
(<a href="http://www.dtcc.com/legal/sec-rule-filings">www.dtcc.com/legal/sec-rule-filings</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-FICC-2025-017 and should be submitted on or 
before August 26, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\28\
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    \28\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-14753 Filed 8-4-25; 8:45 am]
BILLING CODE 8011-01-P


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