Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Make Corrections, Clarifications and Certain Other Changes to the NSCC Rules

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Published

February 18, 2026

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 91 Issue 32 (Wednesday, February 18, 2026)</title>
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[Federal Register Volume 91, Number 32 (Wednesday, February 18, 2026)]
[Notices]
[Pages 7567-7570]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03128]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-104831; File No. SR-NSCC-2026-002]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Make Corrections, Clarifications and Certain Other
Changes to the NSCC Rules

February 12, 2026.
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 February 9, 2026, National Securities Clearing Corporation
(``NSCC'') 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.
NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(4) thereunder.\4\ 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.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

The proposed rule change would (i) make certain corrections and
clarifications in the Rules \5\ and (ii) make certain changes to
harmonize the language in the Rules with the rules of NSCC's two
clearing agency affiliates, The Depository Trust Company (``DTC'') and
Fixed Income Clearing Corporation (``FICC''). NSCC has conducted a
review of its Rules to improve transparency and consistency and to
harmonize language in its Rules with similar language in the DTC and
FICC rulebooks. DTC and FICC have also conducted similar reviews of
their respective rulebooks.
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\5\ Terms not defined herein are defined in the NSCC Rules &
Procedures (``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
NSCC is proposing to (i) make certain corrections and
clarifications in the Rules and (ii) make certain changes to harmonize
the language in the Rules with the rules of NSCC's two clearing agency
affiliates, DTC and FICC. NSCC has conducted a review of its Rules to
improve transparency and consistency and to harmonize language in its
Rules with similar language in the DTC and FICC rulebooks. DTC and FICC
have also conducted similar reviews of their respective rulebooks. As a
result of the reviews, NSCC is proposing the following changes to the
Rules.

[[Page 7568]]

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Rule Proposed changes
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Rule 1............................... Add the following defined terms
to Rule 1 (Definitions and
Descriptions) of the Rules which
capitalized terms are used in
the Rules but are either not
currently defined or are defined
elsewhere in the Rules:
Accounting Summary
Buy-In Intent
Cash Reconciliation Statement
Closing Money Balance
Closing Net Market Value
CNS Retransmittal Notice
Exemptions
FINRA
Fund/SERV
MSRB
Mutual Fund Processor
Officer of the Corporation
Opening Money Balance
Opening Position
Priority Override
Settlement Statement
Settling Trades
Standing Priority Request
Remove the following defined
terms from Rule 1 that are no
longer in use:
Insurance Participant
Mutual Fund Participant
Change the definition of ``Fund
Member'' to remove historical
context that is not necessary.
Change the definition of
``Insurance Carrier/Retirement
Services Member'' to remove
historical context that is not
necessary.
Remove a footnote in the
definition of ``Mutual Fund/
Insurance Services Member'' that
provides historical context that
is not necessary.
Change the definition of ``Watch
List'' to reflect an expanded
scale used for the Credit Risk
Rating Matrix (``CRRM''). The
CRRM is currently based on a
scale of 1 through 7. The CRRM
is also currently calculated
internally using a more granular
scale of 1 through 18 which
corresponds to the current 1
through 7 scale (e.g., credit
rating 6 on the current scale is
equivalent to credit ratings 12
and 13 on the more granular
scale). The changes would not
change how Members are analyzed
with respect to the Watch List.
Rule 2............................... Change ``Mutual Fund Services''
to ``Fund Solutions'' and
``Insurance & Retirement
Services'' to ``Insurance &
Retirement Solutions'' to
reflect the new names that are
being used for those services.
Add quotation marks on ``non-
Member'' to clarify that it is a
defined term used elsewhere in
the Rule.
Rule 2A.............................. Use lower case for ``applicant
questionnaire'' since that term
is not defined and clarify
language relating to the initial
Required Fund Deposit.
Change ``Mutual Fund Services''
to ``Fund Solutions'' and
``Insurance & Retirement
Services'' to ``Insurance &
Retirement Solutions'' to
reflect the new names that are
being used for those services.
Rule 2B.............................. Remove cross references to
Sections of Rule 4 (Clearing
Fund) that have been removed and
are no longer applicable.
Rule 2C.............................. Make grammatical correction by
changing ``Transactions'' to
singular case.
Rule 3............................... Change ``Mutual Fund Services''
to ``Fund Solutions'' and
``Insurance & Retirement
Services'' to ``Insurance &
Retirement Solutions'' to
reflect the new names that are
being used for those services.
Rule 7............................... Remove reference to Index Receipt
Authorization Agreement. The
Index Receipt Authorization
Agreement was an agreement
entered into between the Index
Receipt Agents and exchange
traded funds. NSCC no longer
requires that Members provide
copies of the Index Receipt
Authorization Agreement.
Rule 11.............................. Add defined terms for capitalized
terms that are used elsewhere in
the Rules but not defined.
Rule 12.............................. Add defined terms for capitalized
terms that are used elsewhere in
the Rules but not defined.
Rule 14.............................. Correct the name of the New York
State Department of Taxation and
Finance.
Rule 22.............................. Make grammatical correction
adding ``by'' to the sentence.
Rule 23.............................. Add ``and Chief Executive
Officer'' to reflect the correct
title of the President and Chief
Executive Officer.
Rule 26.............................. Revise the language in the Rule
to clarify the language and
align to the current billing
process.
Rule 27.............................. Delete unnecessary separate
reference to AIP Member as AIP
Members are covered by the
reference to ``participant.''
Rule 33.............................. Use defined term ``Officer of the
Corporation'' to name officers
subject to the delegation in the
Rule.
Rule 35.............................. Revise to reflect that financial
reports are delivered based on
the fiscal year of NSCC.
Rule 36.............................. Revise to reflect that Sponsored
Members are entitled to the
provisions in the Rule in
addition to Members and Limited
Members.
Rule 38.............................. Revise to reflect that provisions
relating to captions relate to
Procedures also.
Rule 40.............................. Change the phrase ``continue use
of one'' to ``continue to use
one'' to improve readability.
Rule 41.............................. Add definition of ``CNS Close-out
Value'' that is used elsewhere
in the Rule and update to
clarify that valuations of
claims relating to SFT Positions
are performed pursuant to Rule
56 (Securities Financing
Transaction Clearing Service).
Rule 45.............................. Update references to ``email''.
Rule 47.............................. Revise to reflect that
interpretation provisions relate
to Procedures also.
Rule 50.............................. Change ``Mutual Fund Services''
to ``Fund Solutions'' to reflect
the new name that is being used
for that service.
Delete comma after ``more edit
errors or'' for readability.
Rule 51.............................. Delete outdated and unnecessary
footnote regarding
implementation of entering CNS-
eligible OW Obligations into the
CNS Accounting Operation.
Rule 52.............................. Add quotation marks on ``Fund/
SERV,'' ``Mutual Fund
Processor'' and ``TTP/TPA/IMA
Settling Entity'' to clarify
those are defined terms used
elsewhere in the Rules.
Change ``Mutual Fund Services''
to ``Fund Solutions'' to reflect
the new name that is being used
for that service.
Rule 55.............................. Make the following grammatical
corrections for readability: (i)
change phrasing and punctuation
relating to Settling Banks and
participants in a number of
places, (ii) change ``due to the
insolvency'' to ``due to its
insolvency'' in two places, and
(iii) change ``exits'' to
``exists''.

[[Page 7569]]

Change references from ``terminal
system'' to ``settlement
interface'' in two places to
more accurately describe the
interface.
Rule 56.............................. Update numbers used in the CRRM
to reflect expanded matrix. As
discussed above in reference to
changes in Rule 1, the CRRM is
currently based on a scale of 1
through 7. The CRRM is also
currently calculated internally
using a more granular scale of 1
through 18 which corresponds to
the current 1 through 7 scale
(e.g., credit ratings 1 through
4 on the current scale are
equivalent to credit ratings 1
through 9 on the more granular
scale).
Rule 57.............................. Change ``Insurance & Retirement
Services'' to ``Insurance &
Retirement Solutions'' to
reflect the new name that is
being used for that service.
Rule 58.............................. Revise language to clarify
meaning.
Procedure II......................... Use defined terms ``FINRA'' and
``MSRB'' which terms would be
added to Rule 1 (Definitions and
Descriptions) defined terms and
add ``at'' for readability.
Procedure IIA........................ Add comma after the phrase ``or
those exited from the ACATS
Settlement Accounting
Operation)'' for improved
readability.
Procedure VII........................ Correct references to Procedure
XVIII (ACATS Settlement
Accounting Operations) and
Procedure VIII (Money Settlement
Service) and use defined term
Closing Net Market Value.
Procedure VIII....................... Change references from ``terminal
system'' to ``settlement
interface'' to more accurately
describe the interface and
remove duplicative footnote.
Procedure X.......................... Make grammatical correction in
footnote by removing
``transmits''.
Procedure XIII....................... Remove defined terms that are no
longer in use.
Procedure XV......................... Clarify how Eligible Clearing
Fund Securities are valued.
Addendum A........................... Change ``Mutual Fund Services''
to ``Fund Solutions'' and
``Insurance & Retirement
Services'' to ``Insurance &
Retirement Solutions'' to
reflect the new names that are
being used for those services.
Addendum B........................... Change ``Mutual Fund Services''
to ``Fund Solutions'' to reflect
the new name that is being used
for that service.
Addendum D........................... Change ``Mutual Fund Services''
to ``Fund Solutions'' and
``Insurance & Retirement
Services'' to ``Insurance &
Retirement Solutions'' to
reflect the new names that are
being used for those services.
Addendum O........................... Clarify that the policy statement
on admission of non-US entities
applies to non-U.S. entities
applying as Members and Limited
Members and remove a conflicting
footnote stating that non-U.S.
entities that are insurance
companies are excluded.
The policy statement currently
includes certain Limited Members
but not all Limited Members.
NSCC applies the same criteria
for all non-U.S. entities that
are applying to become Limited
Members except that, given the
lower risk profile for certain
membership types, NSCC does not
require that certain Limited
Members provide a legal opinion,
go through a thorough credit
risk review or provide ongoing
financial statements. For
instance, for U.S. applicants
applying to become AIP Members,
NSCC does not currently require
that such applicants provide a
legal opinion or provide ongoing
financial statements.\a\
Language would be added to
reflect that certain criteria in
the Addendum may be waived with
respect to certain membership
types.
In addition, the footnote to the
Addendum currently excludes non-
U.S. insurance companies.
However, the policy statement
states that it applies to
admission of non-U.S. entities
such as Insurance Carrier/
Retirement Services Members and
only insurance companies are
permitted to be that membership
type. Therefore, the footnote
excluding non-U.S. insurance
companies conflicts with the
statement that the Addendum
applies to Insurance Carrier/
Retirement Services Members. In
addition, the exclusion is not
necessary since NSCC would apply
the same criteria for non-U.S.
insurance companies that it
applies to all non-U.S. entities
that are applying for NSCC
membership for the same
membership type.
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\a\ See Rule 2B (Ongoing Membership Requirements and Monitoring),
Section 2, which requires ongoing reports and information for Members,
Mutual Fund/Insurance Services Members, Fund Members, and Insurance
Carrier/Retirement Services Members but not AIP Members.

2. Statutory Basis

Section 17A(b)(3)(F) of the Act requires, in part, that the Rules
be designed to promote the prompt and accurate clearance and settlement
of securities transactions.\6\
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\6\ 15 U.S.C. 78q-1(b)(3)(F).
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NSCC believes that the proposed changes to (i) correct or clarify
language in the Rules and (ii) harmonize the language in Rules with the
rulebooks of NSCC's two clearing agency affiliates, DTC and FICC, are
consistent with Section 17(A)(b)(3)(F) of the Act \7\ because such
changes would enhance the clarity and transparency of the Rules. By
enhancing the clarity and transparency of the Rules, the proposed
changes would allow Members and Limited Members to more efficiently and
effectively conduct their business in accordance with the Rules, which
NSCC believes would promote the prompt and accurate clearance and
settlement of securities transactions. As such, NSCC believes that the
proposed changes would be consistent with Section 17A(b)(3)(F) of the
Act.\8\
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\7\ Id.
\8\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

NSCC does not believe the proposed rule changes would impact
competition. The proposed rule changes described above would merely
enhance the clarity and transparency of the Rules and would not
significantly affect NSCC's operations or the rights and obligations of
the membership. As such, NSCC believes the proposed rule changes would
not have any impact on competition and would be consistent with Section
17A(b)(3)(I) of the Act.\9\
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\9\ 15 U.S.C. 78q-1(b)(3)(I).
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NSCC has not received or solicited any written comments relating to
this proposal. If any written comments are received by NSCC, 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.

[[Page 7570]]

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-comments">www.sec.gov/rules-regulations/how-submit-comments</a>. General questions regarding the rule
filing process or logistical questions regarding this filing should be
directed to the Main Office of the Commission's Division of Trading and
Markets at <a href="/cdn-cgi/l/email-protection#97e3e5f6f3fef9f0f6f9f3faf6e5fcf2e3e4d7e4f2f4b9f0f8e1"><span class="__cf_email__" data-cfemail="f7838596939e99909699939a96859c928384b7849294d9909881">[email&#160;protected]</span></a> or 202-551-5777.
NSCC reserves the right to not respond to any comments received.

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

The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \10\ of the Act and paragraph (f) of Rule 19b-4
thereunder.\11\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act. If
the Commission takes such action, the Commission will institute
proceedings to determine whether the proposed rule change should be
approved or disapproved.
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\10\ 15 U.S.C. 78s(b)(3)(A).
\11\ 17 CFR 240.19b-4(f).
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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#4735322b226a24282a2a222933340734222469202831"><span class="__cf_email__" data-cfemail="5321263f367e303c3e3e363d2720132036307d343c25">[email&#160;protected]</span></a>. Please include
File Number SR-NSCC-2026-002 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-NSCC-2026-002. 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 NSCC and on DTCC's website (<a href="https://dtcc.com/legal/sec-rule-filings.aspx">https://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-NSCC-2026-002 and should be submitted on or
before March 11, 2026.

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)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03128 Filed 2-17-26; 8:45 am]
BILLING CODE 8011-01-P

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