Notice2026-04810
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Advance Notice To Raise Prefunded Default Liquidity Through the Commercial Paper Program
Primary source
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Published
March 12, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 48 (Thursday, March 12, 2026)</title>
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[Federal Register Volume 91, Number 48 (Thursday, March 12, 2026)]
[Notices]
[Pages 12266-12270]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04810]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104954; File No. SR-FICC-2026-801]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing of Advance Notice To Raise Prefunded Default Liquidity
Through the Commercial Paper Program
March 9, 2026.
Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act entitled the Payment,
Clearing, and Settlement Supervision Act of 2010 (``Clearing
Supervision Act'') \1\ and Rule 19b-4(n)(1)(i) under the Securities
Exchange Act of 1934 (``Act''),\2\ notice is hereby given that on
February 26, 2026, Fixed Income Clearing Corporation (``FICC'') filed
with the Securities and Exchange Commission (``Commission'') the
advance notice SR-FICC-2026-801 (``Advance Notice'') 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 Advance Notice from interested persons.
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\1\ 12 U.S.C. 5465(e)(1).
\2\ 17 CFR 240.19b-4(n)(1)(i).
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice
This advance notice is filed by Fixed Income Clearing Corporation
(``FICC'') in connection with a proposed program to raise prefunded,
default liquidity through the periodic issuance and private placement
of short-term, unsecured commercial paper notes (``Commercial Paper
Program''). The proceeds from the Commercial Paper Program would
supplement FICC's existing default liquidity risk management resources.
II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice
In its filing with the Commission, the clearing agency included
statements concerning the purpose of and basis for the Advance Notice
and discussed any comments it received on the Advance Notice. 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 and B below, of the most significant aspects of such
statements.
(A) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants, or Others
FICC has not received or solicited any written comments relating to
this proposal. If any written comments are received, FICC will amend
this filing to publicly file such comments as an Exhibit 2 to this
filing, as required by Form 19b-4 and the General Instructions thereto.
Persons submitting written 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#e99d9b888d80878e88878d84889b828c9d9aa99a8c8ac78e869f"><span class="__cf_email__" data-cfemail="07737566636e69606669636a66756c6273744774626429606871">[email protected]</span></a> or 202-551-5777.
FICC reserves the right to not respond to any comments received.
[[Page 12267]]
(B) Advance Notice Filed Pursuant to Section 806(e) of the Clearing
Supervision Act
Description of Proposed Change
FICC is proposing to establish the Commercial Paper Program in
order to raise prefunded, default liquidity and diversify its liquidity
resources through the issuance and private placement of unsecured debt,
consisting of short-term promissory notes (``Commercial Paper''). The
Commercial Paper would be issued to qualified institutional buyers \3\
and institutional accredited investors \4\ in an aggregate amount not
to exceed $10 billion.
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\3\ See 17 CFR 230.144A.
\4\ See 17 CFR 230.501(a).
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The proceeds from the Commercial Paper Program would supplement the
qualifying liquidity resources maintained by FICC for each of its two
divisions, the Government Securities Division (``GSD'') and Mortgage-
Backed Securities Division (``MBSD''). FICC's existing qualifying
liquidity resources are described in the Clearing Agency Liquidity Risk
Management Framework (``Framework'') \5\ and include cash deposits to
the GSD and MBSD Clearing Funds and amounts available to FICC through
the committed repurchase facilities that are set forth in the GSD
Rulebook (``GSD Rules'') and the MBSD Clearing Rules (``MBSD Rules''
and together with the GSD Rules, the ``Rules''),\6\ each referred to as
a Capped Contingency Liquidity Facility[supreg] (``CCLF'').\7\
Collectively, these resources provide FICC with liquidity to complete
end-of-day settlement in the event of the default of a GSD Netting
Member or an MBSD Clearing Member (collectively, ``Members'').\8\
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\5\ See Securities Exchange Act Release No. 82377 (Dec. 21,
2017), 82 FR 61617 (Dec. 28, 2017) (SR-DTC-2017-004; SR-FICC-2017-
008; SR-NSCC-2017-005). Following the completion of the initial
issuance and private placement of Commercial Paper, the Clearing
Agencies would file a proposed rule change to amend the Framework
and include the proceeds of the Commercial Paper Program as an
additional qualifying liquidity resource of FICC.
\6\ Capitalized terms not defined herein are defined in the
Rules available at <a href="http://www.dtcc.com/legal/rules-and-procedures">www.dtcc.com/legal/rules-and-procedures</a>.
\7\ See GSD Rule 22A (Procedures for When the Corporation Ceases
to Act), Section 2a, and MBSD Rule 17 (Procedures for When the
Corporation Ceases to Act), Section 2a, id. Participation in the
CCLF is a membership requirement for all GSD Netting Members and
MBSD Clearing Member. Funding under the CCLF takes the form of a
repurchase (``repo'') agreement. Once a ``CCLF Event'' (as such term
is defined in the Rules) is declared by FICC, Members are required
to provide financing up to a predetermined cap amount by entering
into repo transactions with FICC until they complete the associated
closeout. The CCLF allows Members to manage their potential
financing requirements with predetermined caps, which are set based
on the liquidity exposure generated by Members' use of the clearing
services of GSD and MBSD. Supra note 6.
\8\ See GSD Rule 21 (Restrictions on Access to Services) and
MBSD Rule 14 (Restrictions on Access to Services) (specifying the
events that constitute a Member default), id. Such Rules provide
that FICC's Board of Directors may suspend a Member or prohibit or
limit a Member's access to FICC's services in enumerated
circumstances; this includes default in delivering funds or
securities to FICC, or a Member experiencing such financial or
operational difficulties that FICC determines, in its discretion,
that restriction on access to services is necessary for FICC's
protection and for the protection of its membership. Supra note 6.
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More precisely, while the specific terms of the Commercial Paper
Program would depend on a number of factors, as described in greater
detail below, the proceeds of a Commercial Paper Program would be used
only for default liquidity.
FICC, along with its affiliates, National Securities Clearing
Corporation (``NSCC'') and The Depository Trust Company (``DTC,'' and,
together with NSCC and FICC, the ``Clearing Agencies''), maintain the
Framework which sets forth the manner in which FICC measures, monitors
and manages the liquidity risks that arise in or are borne by it.\9\
FICC's liquidity risk management strategy and resources are designed to
maintain ``sufficient liquid resources at a minimum in all relevant
currencies to effect same-day and, where appropriate, intraday and
multiday settlement of payment obligations with a high degree of
confidence under a wide range of foreseeable stress scenarios that
includes, but is not limited to, the default of the [Member] family
that would generate the largest aggregate payment obligation for [FICC]
in extreme but plausible market conditions.'' \10\
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\9\ Supra note 3. Each of the Clearing Agencies is a wholly-
owned subsidiary of The Depository Trust & Clearing Corporation
(``DTCC''), which operates on a shared service model with respect to
the Clearing Agencies. Most corporate functions are established and
managed on an enterprise-wide basis pursuant to intercompany
agreements under which it is generally DTCC that provides relevant
services to the Clearing Agencies.
\10\ Id.
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The proposed Commercial Paper Program would provide FICC with an
additional source of default liquidity, which would allow it to
diversify its sources of default liquidity and mitigate risks to FICC
that it is unable to secure default liquidity resources in an amount
necessary to meet its liquidity needs. As stated above, FICC currently
maintains two default liquidity resources to draw upon in the event of
a Member default: cash deposits to the GSD and MBSD Clearing Funds and
amounts available to FICC through the CCLF. As such, the existing
default liquidity resources are sourced entirely from FICC's Members,
who are obligated as Members to make deposits to the respective
Clearing Funds and participate in the CCLF in the circumstances and
pursuant to the terms set forth in the Rules.
Additionally, on December 13, 2023, the Commission adopted
amendments to the covered clearing agency standards that apply to
covered clearing agencies that clear transactions in U.S. Treasury
securities, including FICC.\11\ These amendments require, among other
things, that FICC establish objective, risk-based, and publicly
disclosed criteria for participation that require GSD Netting Members
submit for clearance and settlement all of the eligible secondary
market transactions to which they are a counterparty.\12\ FICC
anticipates significant increases in both the volume of activity
submitted to it for clearing at GSD and associated liquidity
obligations following the compliance dates for these rules.\13\
Therefore, by allowing FICC to diversify its sources of default
liquidity, the proposal would provide FICC with an alternative and
supplemental source of default liquidity to diversify its liquidity
providers and address its anticipated increased liquidity needs.
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\11\ 17 CFR 240.17ad-22(e)(18)(iv)(A) and (B). See Securities
Exchange Act Release No. 99149 (Dec. 13, 2023), 89 FR 2714 (Jan. 16,
2024) (S7-23-22) (``Adopting Release,'' and the rules adopted
therein referred to herein as ``Treasury Clearing Rules.'')
\12\ Id. 17 CFR 240.17ad-22(e)(18)(iv)(A), (B).
\13\ See Securities Exchange Act Release No. 102487 (Feb. 25,
2025), 90 FR 11134 (March 4, 2025) (S7-23-22) (extending the
compliance dates for Rule 17ad-22(e)(18)(iv)(A) and (B) to December
31, 2026, for eligible cash market transactions, and June 30, 2027,
for eligible repo market transactions).
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Terms of the Commercial Paper Program. Subject to approval of this
proposal, FICC would engage an issuing and paying agent, as well as
certain placement agent dealers, to develop a program to issue the
Commercial Paper. The Commercial Paper would be issued to qualified
institutional buyers and institutional accredited investors through a
private placement and offered in reliance on an exemption from
registration under Section 4(a)(2) of the Securities Act of 1933.\14\
FICC would be party to certain transaction documents required to
establish the Commercial Paper Program, including an issuing and paying
agent agreement, and a dealer agreement with each of the placement
agent dealers. The dealer agreements would each be based on the
standard form of dealer agreement for commercial paper programs, which
is published by
[[Page 12268]]
the Securities Industry and Financial Markets Association.\15\
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\14\ 15 U.S.C. 77d(4)(a)(2).
\15\ Available at <a href="http://www.sifma.org/documents/model-commercial-paper-dealer-agreement-42-program">www.sifma.org/documents/model-commercial-paper-dealer-agreement-42-program</a>.
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While the anticipated material terms and conditions of the
Commercial Paper Program are summarized below, the actual terms of a
future Commercial Paper Program would depend on a number of factors,
including FICC's liquidity needs and market conditions at the time of
issuance. Therefore, with the exception of the authorized aggregate
amount that FICC may issue of $10 billion, the anticipated terms
summarized below are reasonable estimates but may not reflect the
actual terms of a future Commercial Paper Program.
The Commercial Paper Program would consist of Commercial Paper
issued in an aggregate amount not to exceed $10 billion with an
expected average amount issued and outstanding at any time of
approximately $2-3 billion, as FICC deems reasonable, or as
necessitated by liquidity needs. FICC believes it is advisable to
authorize up to the aggregate amount of $10 billion in order to help
manage its potential future liquidity needs without further reliance on
its Members, as the existing liquidity providers under the rules-based
CCLF. FICC would develop internal procedures to govern the allocation
of default liquidity across GSD and MBSD based on the actual and
estimated liquidity needs driven by activity cleared through each of
the Divisions. Such procedures would describe the process for
determining when it may be appropriate for FICC to raise additional
prefunded liquidity through the issuance of Commercial Paper in order
to continue to meet its liquidity needs, and how such decision,
including the timing and amount of such funds, would be communicated
between the appropriate teams at FICC.
The Commercial Paper Program would be structured such that the
maturities of the issued Commercial Paper are staggered to avoid
concentrations of maturing liabilities. The average maturity of the
aggregate Commercial Paper outstanding issued under the Commercial
Paper Program is broadly estimated to range between three and six
months. The Commercial Paper would be represented by one or more master
notes issued in the name of The Depository Trust Company (``DTC''), or
its nominee. The Commercial Paper would be issued only through the
book-entry system of DTC and would not be certificated. The Commercial
Paper would either be interest bearing or would be sold at a discount
from their face amount. Interest payable on the Commercial Paper would
be at market rates customary for such type of debt and reflective of
the creditworthiness of FICC. The Commercial Paper would have a
maturity not to exceed 397 calendar days from the date of issue, would
not be redeemable by FICC prior to maturity, nor would they contain any
provision for extension, renewal, automatic rollover or voluntary
prepayment.
FICC would hold the proceeds from the Commercial Paper Program in
either its cash deposit account at the Federal Reserve Bank of New York
(``FRBNY'') or in accounts at other creditworthy financial institutions
in accordance with the Clearing Agency Investment Policy.\16\ These
amounts would be available to draw to complete settlement as needed.
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\16\ See Securities Exchange Act Release Nos. 79528 (Dec. 12,
2016), 81 FR 91232 (Dec. 16, 2016) (SR-DTC-2016-007, SR-FICC-2016-
005, SR-NSCC-2016-003); 84949 (Dec. 21, 2018), 83 FR 67779 (Dec. 31,
2018) (SR-DTC-2018-012, SR-FICC-2018-014, SR-NSCC-2018-013).
Following the issuance of a Notice of No Objection by the Commission
of this proposal and prior to the initial issuance of Commercial
Paper, the Clearing Agencies would file a proposed rule change to
amend the Clearing Agency Investment Policy to include the proceeds
of the Commercial Paper Program as default liquidity funds, within
the definition of ``Investable Funds,'' as such term is defined
therein, and provide that such amounts would be held in bank
deposits at eligible commercial banks or at FICC's cash deposit
account at the FRBNY.
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FICC Liquidity Risk Management. As a central counterparty
(``CCP''), FICC occupies an important role in the securities settlement
system by interposing itself between counterparties to financial
transactions thereby reducing the risk faced by its Members and
contributing to global financial stability. FICC's liquidity risk
management framework plays an integral part in FICC's ability to
perform this role, and is designed to ensure that FICC maintains
sufficient liquid resources to timely meet its payment (principally
settlement) obligations with a high degree of confidence.
The liquidity needs of GSD and MBSD are driven by FICC's
requirement to cover settlement and funds-only settlement, on an
ongoing basis, in the event of a Member default. As a cash market CCP,
if a Member defaults, FICC will need to complete settlement of
guaranteed transactions on the failing Member's behalf from the date of
insolvency through the settlement date. As such, FICC measures the
sufficiency of its qualifying liquid resources through daily liquidity
studies across a range of scenarios, including amounts needed over the
settlement cycle in the event that the Member or Member family with the
largest aggregate liquidity exposure becomes insolvent.
As noted above, the Framework describes FICC's liquidity risk
management strategy, which is designed to maintain liquidity resources
sufficient to meet the potential amount of funding required to settle
the outstanding transactions of a defaulting Member or affiliated
family of Members in a timely manner.\17\ The Framework also describes
how FICC meets its requirement to hold qualifying liquid resources, as
such term is defined in Rule 17ad-22(a) under the Act, sufficient to
meet its minimum liquidity resource requirement in each relevant
currency for which it has payment obligations owed to its Members. FICC
considers each of its existing default liquidity resources to be
qualifying liquid resources, and the proceeds from the Commercial Paper
Program would also be default liquidity that is considered a qualifying
liquid resource.
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\17\ Supra note 3.
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The proceeds from the Commercial Paper Program would provide FICC
with additional, prefunded, and readily available qualifying liquid
resources to be used to cover settlement and funds-only settlement, on
an ongoing basis, in the event of a Member default. FICC's existing
liquidity resources include the cash deposits to the GSD and MBSD
Clearing Funds and amounts available under the rules-based CCLFs. The
Commercial Paper Program would allow FICC to diversify and expand its
sources of default liquidity to address potential increased liquidity
needs without further reliance on its rules-based resources. As a
source of prefunded, default liquidity, the Commercial Paper Program
would provide additional certainty, stability, and safety to FICC, its
Members, and the U.S. markets that it serves.
By diversifying FICC's sources of qualifying liquid resources, the
Commercial Paper Program could also mitigate concentration risks
related to its liquidity providers. More specifically, while FICC would
not limit the potential investors that purchase Commercial Paper and,
therefore, is not able to ensure that the Commercial Paper Program
would reduce concentration risk, the types of entities who typically
invest in commercial paper (for example, insurance companies, asset
managers and pension funds) are generally not Members of FICC.
Therefore, the prospective investors in the Commercial Paper are not
expected to be the same firms that
[[Page 12269]]
currently provide default liquidity resources to FICC as Members. In
this way, the proposed Commercial Paper Program would reduce the
concentration risk related to its liquidity providers, by reducing the
likelihood that an impairment of a liquidity provider to perform under
one qualifying liquid resource would impact FICC's ability to fully
access its other qualifying liquid resources.
Anticipated Effect on and Management of Risk
FICC's consistent ability to timely complete settlement is a key
part of FICC's role as a CCP and allows FICC to mitigate counterparty
risk within the U.S. markets. In order to sufficiently perform this key
role in promoting market stability, it is critical that FICC has access
to liquidity resources to enable it to complete end-of-day settlement,
notwithstanding the default of a Member. FICC believes that the overall
impact of the Commercial Paper Program on risks presented by FICC would
be to reduce the liquidity risks associated with FICC's operation as a
CCP by providing it with an additional source of liquidity to complete
end-of-day settlement in the event of a Member default. FICC further
believes that a reduction in its liquidity risk would reduce systemic
risk and would have a positive impact on the safety and soundness of
the clearing system.
While the proposed Commercial Paper Program, like any liquidity
resource, would involve certain risks, most of these risks are standard
in any commercial paper program. One risk associated with the proposed
Commercial Paper Program would be the risk that FICC does not have
sufficient funds to repay issued Commercial Paper when that Commercial
Paper matures. FICC believes that this risk is extremely remote, as the
proceeds of the Commercial Paper Program would be used only in the
event of a Member default, and FICC would replenish that cash, as it
would replenish any of its liquidity resources that are used to
facilitate settlement in the event of a Member default, with the
proceeds of the close out of that defaulted Member's portfolio. This
notwithstanding, in the event that proceeds from the close out are
insufficient to fully repay a liquidity borrowing, then FICC would look
to its loss waterfall to repay any outstanding liquidity
borrowings.\18\ A second risk is that FICC may be unable to issue
Commercial Paper as issued Commercial Paper matures due to, for
example, stressed markets at the time the issued Commercial Paper
matures. This risk would be mitigated by FICC's continued maintenance
of the rules-based CCLFs to address liquidity needs and, as such, would
not depend on the Commercial Paper Program as its sole source of
liquidity. Additionally, as described above, the Commercial Paper
Program would be structured such that the maturities of the issued
Commercial Paper are staggered to avoid concentration in maturating
liabilities.
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\18\ See GSD Rule 4 (Clearing Fund and Loss Allocation), Section
7 and MBSD Rule 4 (Clearing Fund and Loss Allocation), Section 7,
supra note 6.
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FICC believes that the significant systemic risk mitigation
benefits of providing FICC with additional, prefunded, default
liquidity resources outweigh these risks.
Consistency With Section 805 Clearing Supervision Act
FICC believes the proposed rule changes are consistent with Title
VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act
entitled the Payment, Clearing, and Settlement Supervision Act of 2010
(``Clearing Supervision Act'').\19\ Specifically, FICC believes the
proposed rule changes are consistent with the risk management
objectives and principles of Section 805 of the Clearing Supervision
Act.\20\
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\19\ 12 U.S.C. 5461, et seq.
\20\ 12 U.S.C. 5464.
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(i) Consistency With Section 805(b) of the Clearing Supervision Act
Section 805(b) of the Clearing Supervision Act provides that
``[t]he objectives and principles for the risk management standards
prescribed under subsection (a) shall be to (1) promote robust risk
management; (2) promote safety and soundness; (3) reduce systemic
risks; and (4) support the stability of the broader financial system.''
\21\
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\21\ 12 U.S.C. 5464(b).
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FICC believes the proposal is consistent with Section 805(b)(1) of
the Clearing Supervision Act because it would support FICC's robust
risk management by providing it with an additional source of liquidity
to complete end-of-day settlement, notwithstanding the default of a
Member. By allowing FICC to diversify its sources of default liquidity,
the proposal would support its ability to manage liquidity risks and,
therefore, promote robust risk management.
By strengthening FICC's liquidity risk management, FICC also
believes the proposal would promote safety and soundness, mitigate
systemic risk in the financial system and support the stability of the
broader financial system in the event of a Member default, consistent
with Section 805(b)(2)-(4) of the Clearing Supervision Act. By
supplementing FICC's existing default liquidity resources with
prefunded liquidity, the proposal would contribute to FICC's goal of
assuring that FICC has adequate liquidity resources to meet its
settlement obligations notwithstanding the default of any of its
Members.
In its critical role as a CCP, FICC is obligated to cover
settlement and funds-only settlement, on an ongoing basis, in the event
of a Member default. In order to sufficiently perform this role, FICC
must have ready access to adequate liquidity resources. Therefore, a
reduction in FICC's liquidity risk through the introduction of an
additional source of prefunded, default liquidity would promote safety
and soundness, reduce systemic risk and support the stability of the
wider financial system.
As a result, FICC believes the proposed rule changes would advance
Section 805(b)'s objectives and principles of promoting robust risk
management, promoting safety and soundness, reducing systemic risks,
and supporting the stability of the broader financial system.
(ii) Consistency With Section 805(a)(2) of the Clearing Supervision Act
Section 805(a)(2) of the Clearing Supervision Act authorizes the
Commission to prescribe risk management standards for the payment,
clearing and settlement activities of designated clearing entities,
like FICC.\22\ Accordingly, the Commission has adopted risk management
standards under this section and Section 17A of the Act.\23\ These
standards require covered clearing agencies to establish, implement,
maintain, and enforce written policies and procedures that are
reasonably designed to meet certain minimum requirements for their
operations and risk management practices on an ongoing basis.\24\ FICC
believes that the proposed Commercial Paper Program is consistent with
Rule 17ad-22(e)(7)(i) and (ii) under the Act for the reasons described
below.\25\
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\22\ 12 U.S.C. 5464(a)(2).
\23\ 17 CFR 240.17ad-22(e).
\24\ Id.
\25\ 17 CFR 240.17ad-22(e)(7)(i), (ii).
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Rule 17ad-22(e)(7)(i) under the Act requires that FICC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to maintain sufficient liquid resources at the
minimum in all relevant currencies
[[Page 12270]]
to effect same-day and, where appropriate, intraday and multiday
settlement of payment obligations with a high degree of confidence
under a wide range of foreseeable stress scenarios that includes, but
is not limited to, the default of the participant family that would
generate the largest aggregate payment obligation for the covered
clearing agency in extreme but plausible market conditions.\26\ Rule
17ad-22(e)(7)(ii) under the Act requires that FICC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to hold qualifying liquid resources sufficient to
meet the minimum liquidity resource requirement under Rule 17ad-
22(e)(7)(i) in each relevant currency for which FICC has payment
obligations owed to its Members.\27\
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\26\ 17 CFR 240.17ad-22(e)(7)(i).
\27\ 17 CFR 240.17ad-22(e)(7)(ii). For purposes of this Rule,
``qualifying liquid resources'' are defined in Rule 17ad-22(a) as
including, in part, cash held either at the central bank of issue or
at creditworthy commercial banks. 17 CFR 240.17ad-22(a).
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As described above, the proposed Commercial Paper Program would
provide FICC with an additional resource of prefunded, default
liquidity, which it would use to complete end-of-day settlement,
notwithstanding the default of a Member. The proceeds of the Commercial
Paper Program would be cash held by FICC at either its cash deposit
account at the FRBNY or at a creditworthy commercial bank, pursuant to
the Clearing Agency Investment Policy.\28\ Therefore, the proceeds of
the Commercial Paper Program would be considered a qualifying liquid
resource, as defined by Rule 17ad-22(a) under the Act.\29\ As such, the
proposed Commercial Paper Program would support FICC's ability to hold
sufficient qualifying liquid resources to meet its minimum liquidity
resource requirement under Rule 17ad-22(e)(7)(ii).\30\
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\28\ Supra note 14.
\29\ 17 CFR 240.17ad-22(a).
\30\ 17 CFR 240.17ad-22(e)(7)(ii).
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For these reasons, FICC believes the proposal would support its
compliance with Rule 17ad-22(e)(7)(i) and (ii) under the Act by
providing it with an additional qualifying liquid resource.\31\
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\31\ 17 CFR 240.17ad-22(e)(7)(i), (ii).
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Accelerated Commission Action Requested
Pursuant to Section 806(e)(1)(I) of the Clearing Supervision
Act,\32\ FICC requests that the Commission notify FICC that is has no
objection to the Commercial Paper Program as soon as practicable, in
order ensure that FICC can access this source of additional liquidity
on a timely basis given the importance of maintaining diverse funding
sources in connection with FICC's risk management.
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\32\ 12 U.S.C. 5465(e)(1)(I).
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III. Date of Effectiveness of the Advance Notice, and Timing for
Commission Action
The proposed change may be implemented if the Commission does not
object to the proposed change within 60 days of the later of (i) the
date that the proposed change was filed with the Commission or (ii) the
date that any additional information requested by the Commission is
received. The clearing agency shall not implement the proposed change
if the Commission has any objection to the proposed change.
The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing the clearing agency with prompt written notice
of the extension. A proposed change may be implemented in less than 60
days from the date the advance notice is filed, or the date further
information requested by the Commission is received, if the Commission
notifies the clearing agency in writing that it does not object to the
proposed change and authorizes the clearing agency to implement the
proposed change on an earlier date, subject to any conditions imposed
by the Commission.
The clearing agency shall post notice on its website of proposed
changes that are implemented.
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#b5c7c0d9d098d6dad8d8d0dbc1c6f5c6d0d69bd2dac3"><span class="__cf_email__" data-cfemail="0b797e676e26686466666e657f784b786e68256c647d">[email protected]</span></a>. Please include
file number SR-FICC-2026-801 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-2026-801. 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="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-FICC-2026-801 and should be submitted on or
before April 2, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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\33\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04810 Filed 3-11-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on March 12, 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.