Notice2026-04411
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change Concerning New Transaction Reporting Capability for Members That Maintain Clearing Relationships With Another Member
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
March 6, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 44 (Friday, March 6, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 44 (Friday, March 6, 2026)]
[Notices]
[Pages 11106-11108]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04411]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104920; File No. SR-NSCC-2026-004]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Proposed Rule Change Concerning New
Transaction Reporting Capability for Members That Maintain Clearing
Relationships With Another Member
March 3, 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 26, 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.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change consists of amendments to the NSCC Rules &
Procedures (``NSCC Rules'') to allow NSCC to offer new transaction
reporting capability for Members that maintain clearing relationships
with another Member, as identified by their Market Participant
Identifier (``MPID'').\3\
---------------------------------------------------------------------------
\3\ Capitalized terms not defined herein shall have the meaning
assigned to such terms in the NSCC Rules, available at <a href="http://www.dtcc.com/legal/rules-and-procedures">www.dtcc.com/legal/rules-and-procedures</a>.
---------------------------------------------------------------------------
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
The purpose of this proposed rule change is to modify the NSCC
Rules to allow NSCC to disclose the Clearing Data \4\ of a Member
(``Disclosing Member'') to another Member with which it maintains a
clearing relationship (``Receiving Member''), as identified by their
MPID, subject to the authorization of the Disclosing Member (``MPID
Transaction Reporting''). MPID is a market participant identifier that
is issued by the Financial Industry Regulatory Authority, Inc. The
inclusion of an MPID on trade data submitted to NSCC allows NSCC to
identify these clearing relationships between Members.
---------------------------------------------------------------------------
\4\ ``Clearing Data'' is defined in Rule 49 (Release of Clearing
Data and Clearing Fund Data) as transaction data which is received
by NSCC for inclusion in the clearance and/or settlement process of
NSCC, or such data, reports or summaries thereof, which may be
produced as a result of processing such transaction data. See NSCC
Rule 49, Section (d), supra note 3.
---------------------------------------------------------------------------
The proposed rule change is discussed in detail below.
[[Page 11107]]
Background
NSCC's full-service Members may engage in a variety of trade
reporting and clearing activities through NSCC. For example, Members
may (i) self-clear their own trading activity; (ii) submit trades for
themselves and other Members in their capacity as a Special
Representative \5\ or Qualified Special Representative (``QSR''); \6\
(iii) submit trades as part of NSCC's Correspondent Clearing Service;
\7\ or (iv) clear transactions in their accounts for other broker/
dealers that are acting as introducing or executing broker/dealers.
Members that self-clear may also choose to clear some of their
transactions ``away'' with another NSCC Member clearing firm.
---------------------------------------------------------------------------
\5\ A ``Special Representative'' is a Member or a Registered
Clearing Agency which applies to NSCC for such status and designates
those Members for which it will act. Special Representatives may
submit to NSCC for trade recording trade data on any transaction
calling for delivery of Cleared Securities between it and another
person. See NSCC Rule 7 (Comparison and Trade Recording Operation
(Including Special Representative/Index Receipt Agent)), Sections 1
and 2(a), supra note 3.
\6\ A QSR is a Special Representative who (i) operates an
automated execution system where it is always the contra side to
each transaction; (ii) has a parent corporation or affiliated
corporation that operates an automated execution system where the
Special Representative is always the contra side to each
transaction; or (iii) clears for a broker/dealer who operates an
automated execution system where the broker/dealer is always the
contra side to each transaction, and the subscribers to the
automated execution system enter into an agreement with the broker/
dealer and the Special Representative acknowledging the Special
Representative's role in the clearance of trades executed on the
automated execution system. See NSCC Rule 7, Section 3, supra note
3.
\7\ The Correspondent Clearing Service allows an NSCC Member
broker/dealer to use one broker/dealer for an execution and another
for clearance and settlement. See NSCC Procedure IV (Special
Representative Service), Section C, supra note 3.
---------------------------------------------------------------------------
NSCC's Universal Trade Capture system (``UTC'') is a trade capture
and reporting system that validates and reports equity transactions
submitted to NSCC by an exchange or QSR that is an NSCC Member. UTC
validates trade input and sends output to Members in near real-time.
UTC trade input contains transaction information that includes, among
other things: (i) a security identifier, such as CUSIP or ISIN; (ii)
share quantity; (iii) price; (iv) trade date; (v) the buying and
selling clearing brokers, designated by their NSCC participant numbers;
and (vi) the buying and selling executing brokers, designated by their
MPID.
Currently, Members receive UTC output only for their own clearing
transactions. Pursuant to Rule 49, NSCC will only release Clearing Data
relating to transactions of a particular participant to such
participant upon his written request, subject to certain exceptions set
forth in Rule 49.\8\ Accordingly, if a Member who is self-clearing also
has activity that ``clears away'' with another Member, UTC does not
provide reporting on those cleared away transactions because those
transactions are considered the Clearing Data of the Member clearing
such activity. As a result, Members clearing away must receive the
transaction data directly from the Member clearing the activity.
---------------------------------------------------------------------------
\8\ For example, NSCC may release a participant's Clearing Data
to regulatory organizations and self-regulatory organizations (as
defined in the Act or other comparable Federal or State statutes) or
to other registered clearing agencies or derivatives clearing
organizations of which the participant is a member. NSCC may also
release Clearing Data provided that such data is in a form as to
prevent the disclosure, whether patently or in easily discernible
format, of proprietary and/or confidential financial, operational or
trading data of a particular participant or inappropriately arranged
groups of participants. See NSCC Rule 49, Section (b), supra note 3.
---------------------------------------------------------------------------
NSCC proposes to modify the NSCC Rules to offer MPID Transaction
Reporting, which would allow NSCC to provide ongoing transaction data
reporting to Members who clear activity through another NSCC Member
firm, as identified by their MPID, upon the authorization of the
Disclosing Member. MPID Transaction Reporting is intended to facilitate
comprehensive and timely reporting to Members for all of their cleared
activity at NSCC, particularly in scenarios where a self-clearing
Member may also choose to clear away through another NSCC Member.
In connection with the proposed rule change, UTC would be enhanced
to offer trade capture reporting to allow Members that are introducing/
executing broker/dealers clearing activity through another Member to
receive UTC trade capture output for these transactions. This will be
driven by the MPID data field and allow members to receive their trade
data for their MPID. The message will be sent in near real-time, in the
same format as current UTC messaging.
The proposed rule change is described in further detail below.
Proposed Changes
NSCC proposes to amend the NSCC Rules to enable NSCC to offer MPID
Transaction Reporting for Members who clear activity through another
NSCC Member firm. Specifically, the proposed rule change would amend
Section (a) of Rule 49 concerning the Release of Clearing Data to
provide that NSCC may release the Clearing Data of a participant to
another participant if the participant has authorized NSCC to release
certain Clearing Data to another participant with which it has a
clearing relationship, as further described in newly proposed Addendum
M. Section (a) of Rule 49 currently authorizes NSCC to disclose
Clearing Data of a Sponsored Member to its Sponsoring Member in the
NSCC Securities Financing Transaction Clearing service. The proposed
rule change would add similar authority for NSCC to disclose Clearing
Data for MPID Transaction Reporting, subject to the requirements of
proposed Addendum M, discussed below.
NSCC would also adopt new Addendum M of the NSCC Rules to describe
MPID Transaction Reporting. Specifically, Addendum M would provide that
a Member (i.e., the Disclosing Member) may authorize NSCC to disclose
certain Clearing Data to another Member (the Receiving Member) on an
ongoing basis if (1) the Disclosing Member and the Receiving Member
have a clearing relationship, as identified by the Receiving Member's
MPID; (2) the disclosed Clearing Data relates only to transactions
processed through NSCC by the Disclosing Member on behalf of the
Receiving Member, as designated by the Receiving Member's MPID; and (3)
the Disclosing Member and Receiving Member have executed and delivered
to NSCC such forms or authorization agreements as may be required by
NSCC.
Under the proposed rule change, Disclosing Members would be
required to execute a standard form of authorization maintained by NSCC
whereby the Member would request and authorize NSCC to disclose certain
of its Clearing Data for MPID Transaction Reporting to designated
Receiving Members pursuant to NSCC Rule 49 and Addendum M of the NSCC
Rules.
Implementation Timeframe
Subject to approval by the Commission, NSCC would implement the
proposed rule change on June 12, 2026.
2. Statutory Basis
NSCC believes that the proposed rule change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to a registered clearing agency. Section 17A(b)(3)(F) of the
Act \9\ requires that the rules of a clearing agency be designed to,
among other things, foster cooperation and coordination with persons
engaged in the clearance and settlement of securities transactions.
NSCC believes the proposed rule change is consistent with the
requirements of
[[Page 11108]]
Section 17A(b)(3)(F) of the Act for the reasons stated below.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
The proposed rule change would enable NSCC to provide MPID
Transaction Reporting capability for Members that maintain clearing
relationships with another Member, as identified by their MPID, subject
to the authorization of the Disclosing Member. MPID Transaction
Reporting is designed to facilitate comprehensive and timely reporting
to Members for their cleared activity at NSCC, particularly in
scenarios where a self-clearing Member chooses to clear some of their
activity away through another NSCC Member. The proposed rule change
would allow Members to authorize the disclosure of certain Clearing
Data to other Members so that those Members can better monitor and
analyze their trading activity that is ultimately cleared at NSCC. NSCC
therefore believes the proposed rule change is designed to foster
cooperation and coordination with persons engaged in the clearance and
settlement of securities transactions in accordance with Section
17A(b)(3)(F) of the Act.\10\
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
Section 17A(b)(3)(I) of the Act \11\ requires that the rules of the
clearing agency do not impose any burden on competition not necessary
or appropriate in furtherance of the Act. The proposed rule change
would adopt new MPID Transaction Reporting capability, which would be
available to all Members that maintain clearing relationships with
another Member, subject to the authorization of the Disclosing Member.
NSCC does not believe that the proposed rule change would advantage or
disadvantage any particular participant or user of NSCC's services or
unfairly inhibit access to NSCC's services. While the proposed rule
change would facilitate comprehensive and timely reporting to Members
regarding their cleared away activity at NSCC, it would not impose any
additional obligations or requirements on Member's ability to submit
transactions to NSCC or to clear or settle such activity at NSCC. NSCC
therefore believes the proposed rule change would not impose any burden
on competition.
---------------------------------------------------------------------------
\11\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
NSCC has not received or solicited any written comments relating to
this proposal. If any 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 Commission's Division of Trading and
Markets at <a href="/cdn-cgi/l/email-protection#f7838596939e99909699939a96859c928384b7849294d9909881"><span class="__cf_email__" data-cfemail="e99d9b888d80878e88878d84889b828c9d9aa99a8c8ac78e869f">[email protected]</span></a> or 202-551-5777.
NSCC reserves the right not to 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.
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#becccbd2db93ddd1d3d3dbd0cacdfecddbdd90d9d1c8"><span class="__cf_email__" data-cfemail="255750494008464a4848404b5156655640460b424a53">[email protected]</span></a>. Please include
File Number SR-NSCC-2026-004 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-2026-004. 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 also will be available for inspection
and copying at the principal office of NSCC and on DTCC's website
(<a href="https://www.dtcc.com/legal/sec-rule-filings">https://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-NSCC-2026-004 and should be submitted on or
before March 27, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\12\
---------------------------------------------------------------------------
\12\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04411 Filed 3-5-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on March 6, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.