Notice2026-07822
Self-Regulatory Organizations; National Securities Clearing Corporation; Order Approving 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
April 22, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 77 (Wednesday, April 22, 2026)</title>
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[Federal Register Volume 91, Number 77 (Wednesday, April 22, 2026)]
[Notices]
[Pages 21561-21563]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07822]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105276; File No. SR-NSCC-2026-004]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Order Approving Proposed Rule Change Concerning New
Transaction Reporting Capability for Members That Maintain Clearing
Relationships With Another Member
April 20, 2026.
I. Introduction
On February 26, 2026, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule change SR-NSCC-2026-004, pursuant to
Section 19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\
and Rule 19b-4 thereunder.\2\ The Proposed Rule Change would amend the
NSCC Rules & Procedures to offer a new transaction reporting capability
which allows NSCC to disclose the Clearing Data of a Member
(``Disclosing Member'') to another Member (``Receiving Member'') with
which it maintains a clearing relationship, as identified by their
Market Participant Identifier (``MPID''), subject to the authorization
of the Disclosing Member (``MPID Transaction Reporting'').\3\ The
Proposed Rule
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Change was published for comment in the Federal Register on March 6,
2026.\4\ The Commission has received no comments on the changes
proposed.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ The NSCC Rules & Procedures are available at <a href="https://www.dtcc.com/-/media/Files/Downloads/legal/rules/nscc_rules.pdf">https://www.dtcc.com/-/media/Files/Downloads/legal/rules/nscc_rules.pdf</a>.
Capitalized terms not otherwise defined herein are defined in the
NSCC Rules.
\4\ See Securities Exchange Act Release No. 104920 (Mar. 3,
2026), 91 FR 11106 (Mar. 6, 2026) (File No. SR-NSCC-2026-004)
(``Notice of Filing'')
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For the reasons discussed below, the Commission is approving the
Proposed Rule Change.
II. Background
NSCC offers services including clearance, settlement, risk
management, central counterparty services, and a guarantee for nearly
all broker-to-broker trades related to equity securities, corporate and
municipal debt, American depository receipts, exchange traded funds,
and unit investment trusts.\5\ As a Central Counterparty (``CCP''),
NSCC ensures that matched trades are settled and acts as the legal
counterparty for all its Members' net settlement obligations.
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\5\ See Financial Stability Oversight Counsel 2024 Annual
Report, Note 153, available at <a href="https://home.treasury.gov/system/files/261/FSOC2024AnnualReport.pdf">https://home.treasury.gov/system/files/261/FSOC2024AnnualReport.pdf</a>.
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NSCC Members that are not Limited or Sponsored Members \6\ engage
in various trade reporting and clearing activities. Such NSCC Members
can clear their own trades (i.e., Self-Clearing), submit transactions
for themselves or other Members as Special Representatives or Qualified
Special Representatives (``QSRs''),\7\ use NSCC's Correspondent
Clearing Service for submitting trades, or help clear trades for other
broker/dealers acting as introducing or executing brokers.\8\ Self-
Clearing Members also have the option to process certain trades through
another NSCC Member clearing firm.\9\
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\6\ See Rule 2, supra note 3, for descriptions of the different
membership types
\7\ A Member acting as a Special Representative or QSR may
submit for trade recording any transaction calling for delivery of
Cleared Securities or Cleared Securities that are also debt
securities between it and another person, or other transactions
provided through the Obligation Warehouse in accordance with Rule
51. See Rule 7, Sec. 1, supra note 3.
\8\ See Notice of Filing, 91 FR at 11107, supra note 4.
\9\ Id.
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The Universal Trade Capture system (``UTC'') at NSCC validates and
reports equity transactions that are submitted to NSCC by participants
throughout the trading day.\10\ Eligible securities are forwarded to
NSCC's Continuous Net Settlement (``CNS'') system. Trades ineligible
for CNS either settle trade-for-trade or are included in NSCC's multi-
lateral net balance order process. UTC provides for the processing of a
common input record from all marketplaces which validates trade inputs
like security details, quantity, price, date, and information about
both clearing and executing brokers, then provides near real-time
transaction output to Members in one unified format.\11\
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\10\ See, e.g., <a href="https://www.dtcc.com/clearing-and-settlement-services/equities-trade-capture/utc">https://www.dtcc.com/clearing-and-settlement-services/equities-trade-capture/utc</a>.
\11\ See Notice of Filing, 91 FR at 11107, supra note 4. See
also <a href="https://www.dtcc.com/clearing-and-settlement-services/equities-trade-capture/utc">https://www.dtcc.com/clearing-and-settlement-services/equities-trade-capture/utc</a>.
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With limited exceptions, NSCC releases Clearing Data or Clearing
Fund Data about a participant's transactions solely to that
participant, and will release such data only upon their written
request.\12\ For ``cleared away'' transactions (i.e., when a Member who
is self-clearing also has activity that ``clears away'' with another
Member), Members do not receive UTC reports and must get their
transaction data directly from the clearing Member.\13\
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\12\ See NSCC Rule 49, supra note 3. NSCC's Rules define
``Clearing Data'' as transaction data which is received by NSCC for
inclusion in NSCC's clearance and/or settlement process, or such
data, reports or summaries thereof, which may be produced as a
result of processing such transaction data, and ``Clearing Fund
Data'' as information regarding a participant's clearing fund,
margin and other similar requirements and deposits at NSCC, or such
data, reports or summaries thereof, which may be produced by NSCC
from time to time. Id.
\13\ See Notice of Filing, 91 FR at 11107, supra note 4.
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NSCC proposes amendments to its Rules to enhance UTC to allow
certain Members that are clearing activity through another Member to
receive UTC trade capture output. This service utilizes a Member's MPID
to designate each Member's trade data.\14\ The MPID, a unique four-
character alphanumeric code issued by the Financial Industry Regulatory
Authority (``FINRA''),\15\ identifies member firms or registered
participants when reporting trades, orders, and other transactions.\16\
NSCC states that, through MPID Transaction Reporting, Members will be
able to receive reports for all NSCC-cleared activities, including when
a Self-Clearing Member clears through another NSCC Member.\17\
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\14\ Id.
\15\ A market participant may have multiple MPIDs, obtained
through a written request to FINRA Market Operations, after
identifying the purpose(s) and system(s) for which multiple MPIDs
will be used. See FINRA Rule 6170, available at <a href="https://www.finra.org/rules-guidance/rulebooks/finra-rules/6170#the-rule">https://www.finra.org/rules-guidance/rulebooks/finra-rules/6170#the-rule</a>.
\16\ See FINRA Rule 7220b, available at <a href="https://www.finra.org/rules-guidance/rulebooks/finra-rules/7220b">https://www.finra.org/rules-guidance/rulebooks/finra-rules/7220b</a>.
\17\ See Notice of Filing, 91 FR at 11107, supra Note 4.
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III. Description of the Proposed Rule Change
The Proposed Rule Change would update the NSCC Rulebook to allow
MPID Transaction Reporting for Members clearing through another NSCC
Member. Section (a) of Rule 49, which governs NSCC's release of
Clearing Fund Data and Clearing Data, would be amended to enable NSCC
to release participant Clearing Data to another participant with whom
it has a clearing relationship consistent with the newly proposed
Addendum M, and upon receipt of proper authorization. This
authorization must indicate that the participant has granted NSCC
permission to share specific Clearing Data with another participant
with whom it maintains a clearing relationship. The inclusion of an
MPID on trade data submitted to NSCC likewise allows NSCC to identify
the clearing relationships between Members.\18\
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\18\ Id at 11106.
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The Proposed Rule Change would also add Addendum M to clarify
procedures for when a Disclosing Member may wish to authorize MPID
Transaction Reporting to a specified Receiving Member on an ongoing
basis. In these instances, the Proposed Rule Change outlines three
requirements: (1) the Disclosing Member and Receiving Member must have
a clearing relationship; (2) the disclosed Clearing Data relates only
to NSCC-processed transactions by the Disclosing Member on behalf of
the Receiving Member; and (3) both the Disclosing and Receiving Member
have executed and delivered the required authorization agreements. The
message will be sent in near real-time, in the same format as the
current UTC messaging.
IV. Discussion and Commission Findings
Section 19(b)(2)(C) of the Act directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and rules and regulations thereunder applicable to such
organization. After careful review of the Proposed Rule Change, the
Commission finds that the Proposed Rule Change is consistent with the
requirements of the Act and the rules and regulations thereunder
applicable to NSCC. In particular, the Commission finds that the
Proposed Rule Change is consistent with Section 17A(b)(3)(F) of the
Act.\19\ Section 17A(b)(3)(F) of the Act requires that the rules of a
clearing agency be designed to, among other things, promote the prompt
and accurate clearance and settlement of securities transactions.
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\19\ 15 U.S.C. 78q-1(b)(3)(F).
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As described above in Section III, NSCC proposes to amend the Rules
to allow NSCC to offer a new transaction
[[Page 21563]]
reporting capability for Members that maintain clearing relationships
with another Member, as identified by their MPID, and would provide
procedures for ongoing transaction reporting between Members.
Specifically, the Proposed Rule Change provides for an authorization
process to allow NSCC to share Clearing Data with such Members
authorized by the Disclosing Member to receive such information,
including for those Members who have ``cleared away'' their
transactions and would thus only be able to receive Clearing Data
directly from the submitting member. By providing NSCC with the
authority to disseminate Clearing Data to those Members with whom a
Disclosing or Receiving Member engages in ongoing clearing activity,
the Proposed Rule Change should allow for a more efficient
dissemination of information related to the transactions it clears and
thereby promote the prompt and accurate clearance and settlement of
securities transactions.
Furthermore, as described in Section III, NSCC proposes to amend
the Rules to clearly outline eligible Members, eligible transactions,
and the process to authorize the use of this service. Having clear and
accurate Rules should help Members to better understand their rights
and obligations regarding NSCC services in connection with the proposed
MPID Transaction Reporting service. Better enabling NSCC Members to
understand, comply with, and thus utilize the Rules would promote the
prompt and accurate clearance and settlement of securities
transactions.
For the reasons stated above, the Proposed Rule Change is
reasonably designed to promote the prompt and accurate clearance and
settlement of securities transactions. Therefore, the Proposed Rule
Change is consistent with Section 17A(b)(3)(F) of the Act.\20\
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\20\ Id.
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V. Conclusion
On the basis of the foregoing, the Commission finds that the
Proposed Rule Change is consistent with the requirements of the Act,
and in particular, with the requirements of Section 17A of the Act and
the rules and regulations promulgated thereunder.
It is therefore ordered, pursuant to Section 19(b)(2) of the Act
\21\ that proposed rule change SR-NSCC-2026-004, be, and hereby is,
approved.\22\
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\21\ 15 U.S.C. 78s(b)(2).
\22\ In approving the Proposed Rule Change, the Commission
considered its impact on efficiency, competition, and capital
formation. 15 U.S.C. 78c(f).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\23\
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\23\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07822 Filed 4-21-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on April 22, 2026.
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