Notice2026-16099
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Regarding Regulatory Information Requests and Indemnification of Reported Data
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
August 7, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 151 (Friday, August 7, 2026)</title>
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[Federal Register Volume 91, Number 151 (Friday, August 7, 2026)]
[Notices]
[Pages 51188-51191]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16099]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106038; File No. SR-FICC-2026-009]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
Regarding Regulatory Information Requests and Indemnification of
Reported Data
August 4, 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 July 27, 2026, 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. FICC filed the
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and
Rule 19b-4(f)(6) 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)(6).
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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 Rulebook (``Rules'') to require that
Netting Members (1) provide, when requested, data or other information
in connection with FICC's obligations, as a self-regulatory
organization or in its capacity as a regulated entity, to cooperate and
share such information with other regulatory and self-regulatory
organizations for
[[Page 51189]]
regulatory purposes; and (2) indemnify FICC for any losses,
liabilities, expenses and legal actions arising from incomplete or
inaccurate information that is delivered in connection with such
requests.\5\
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\5\ 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>.
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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 changes to Rule 29, which addresses the
circumstances in which FICC may release certain data and other
information relating to the transactions of its Netting Members,
defined in the Rule as ``Clearing Data''.\6\ Specifically, the proposed
changes would state that FICC may request, and Netting Members would be
required to provide, data and other information, which may include but
is not limited to Clearing Data, in connection with FICC's obligations,
as a self-regulatory organization or in its capacity as a regulated
entity, to cooperate and share such information with other regulatory
and self-regulatory organizations for regulatory purposes.
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\6\ ``Clearing Data'' is defined in Rule 29 as ``transaction
data which is received by the Corporation in the clearance and/or
settlement processes of the Corporation, or such data, reports or
summaries thereof, which may be produced as a result of processing
such transaction data.'' Supra note 5.
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The proposed changes would also require that Netting Members
indemnify FICC for any losses, liabilities, expenses, and legal actions
arising from incomplete or inaccurate data that is delivered in
response to such requests and relied on by FICC to comply with these
regulatory reporting obligations.
Overview of Rule 29 and Release of Clearing Data
Rule 29 describes the circumstances in which FICC may release
Clearing Data relating to transactions of a particular Member and the
permitted recipients of such Clearing Data. Absent valid legal process,
the permitted recipients of Clearing Data include (i) the Member to
which such data relates, (ii) that Member's Cross-Margining Affiliate
\7\ or Sponsoring Member,\8\ (iii) the Commission, (iv) the Federal
Reserve Bank of New York (``FRBNY'') for market surveillance purposes,
or to an FCO \9\ and its regulators pursuant to a Cross-Margining
Arrangement.\10\ Any release of Clearing Data under Rule 29 must be
done either in response to a written request or pursuant to a written
agreement with FICC.\11\
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\7\ See Rule 43, regarding cross-margining arrangements, and the
definition of Cross-Margining Affiliate in Rule 1, supra note 5.
\8\ See Rule 3A, regarding Sponsoring Members and Sponsored
Members, and see also the definition of Sponsored Member in Rule 1,
supra note 5.
\9\ See Rule 43, regarding cross-margining arrangements, and the
definition of FCO in Rule 1, supra note 5.
\10\ See Rule 29(a), supra note 5.
\11\ See Rule 29(c), supra note 5.
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The limitations on FICC's release of Clearing Data under Rule 29 do
not apply to data that is in a form as to prevent the disclosure of the
proprietary and/or confidential data of a particular Member or groups
of Members.\12\ Rule 29 also makes clear that it does not prohibit or
limit FICC's ability to release Clearing Data to other regulatory
bodies and, further, that the Rule is not intended to, or be deemed to
be in contravention, or a limitation, of FICC's obligations as a self-
regulatory organization to cooperate and share data with other
regulatory and self-regulatory organizations for regulatory
purposes.\13\
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\12\ See Rule 29(b), supra note 5.
\13\ See Rule 29(b) and (e), supra note 5.
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Proposed Changes To Require Members To Provide Certain Data and
Information
As a regulated entity and self-regulatory organization, FICC may be
required to respond to requests, including from its regulatory
supervisors, to provide data or other information related to its
clearing business. Such requests may include Clearing Data or other
information about FICC's Members and the activity they submit to FICC.
For example, FICC was recently informed that it is required to
report certain data in connection with the U.S. Department of the
Treasury's Treasury International Capital (``TIC'') System. The TIC
System collects various data regarding, for example, transactions and
holdings of foreign residents of U.S. Treasury debt securities. Under
this regulatory requirement, FICC will submit to the FRBNY on a monthly
basis information on transactions in U.S. Treasury Securities to which
at least one counterparty is a non-U.S. entity. This information will
be reported on a Report of U.S Dollar Claims of Financial Institutions
on Foreign Residents (``TIC BC'') and Report of U.S Dollar Liabilities
of Financial Institutions to Foreign Residents (``TIC BL-1'') report
forms (collectively, the ``TIC B Reports''). These reports will include
Clearing Data of Netting Members and Indirect Participants. In order
for FICC to submit the TIC B Reports accurately and completely to the
FRBNY, FICC will request additional information from its Members. Such
information would include, for example, the branch licensing
information of Bank Netting Members to ensure FICC is correctly
reporting the jurisdiction of the counterparties to the transactions
that are required in the TIC B Reports.
As noted above, Rule 29 addresses FICC's obligations, as a self-
regulatory organization, to cooperate and share data with other
regulatory and self-regulatory organizations for regulatory purposes.
FICC is proposing to amend Rule 29 to further provide that such
obligations may also relate to FICC's capacity as a regulated entity
(unrelated to its status as a self-regulatory organization) and may
include sharing other information, in addition to data.
The proposed changes would also state that, in connection with such
regulatory obligations, FICC may request, and Netting Members shall
provide, additional data or other information, which may include but is
not limited to Clearing Data, with respect to the Netting Member and,
when applicable, the Indirect Participants of the Netting Member. While
FICC generally does not need to request additional information from its
Members to comply with regulatory reporting obligations, as noted above
relating to the TIC B Reports, certain information from its Members
could be necessary for FICC to ensure it is completely and accurately
meeting those obligations. FICC does not anticipate, based on existing
regulatory reporting obligations, including the TIC-B Reports, that
Members would be required to provide information that is not readily
available and easily delivered.
These proposed changes would improve the disclosures in Rule 29
regarding the release of data and other information related to its
Members and Indirect Participants to regulatory organizations for
regulatory purposes. The proposed changes to require Netting
[[Page 51190]]
Members to provide additional information to FICC when requested would
support FICC's ability to meet its regulatory reporting obligations.
Proposed Changes To Require Indemnification With Respect to Data
Reporting
FICC is also proposing to amend the Rules to require that Netting
Members indemnify FICC with respect to data or other information
Netting Members provide to FICC in connection with a request that is
related to FICC's regulatory obligations. The proposed indemnification
is identical to the indemnification Members provide to FICC in
connection with their obligation to have a current Legal Entity
Identifier \14\ on file with FICC at all times (including with respect
to their Indirect Participants, when applicable).\15\
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\14\ A Legal Entity Identifier is defined in the Rules as ``a
20-character reference code to uniquely identify legally distinct
entities that engage in financial transactions based on the ISO
17442 standard developed by the International Organization for
Standardization that satisfies the standards implemented by the
Global Legal Entity Identifier Foundation.'' Rule 1, supra note 5.
\15\ See Rule 2B, section 2 (with respect to Netting Members'
ongoing membership obligations); Rule 3A, section 2(d) (with respect
to the Sponsored Members of Sponsoring Members); Rule 3B, section
5(c) (with respect to CCIT Members' ongoing membership
requirements); and Rule 8, section 3(d) (with respect to the
Executing Firm Customers of Agent Clearing Members), supra note 5.
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The proposed change would provide that Netting Members indemnify
FICC and its employees, officers, directors, shareholders, agents, and
Members (to be collectively defined as the ``Data Reporting Indemnified
Parties''), for any and all losses, liabilities, expenses and legal
actions suffered or incurred by the Data Reporting Indemnified Parties
arising from any incomplete or inaccurate data or other information
provided to FICC in connection with FICC's regulatory reporting
obligations. The proposed changes would define ``Legal Action'', for
purposes of this indemnification, to mean and include any claim,
counterclaim, demand, action, suit, countersuit, arbitration, inquiry,
proceeding or investigation before any federal, state or foreign court
or other tribunal, or any investigative or regulatory agency or self-
regulatory organization.
The proposed change would protect FICC from losses, liabilities,
expenses, and legal actions that it may incur if it relied on
information provided by a Member to comply with its regulatory
reporting obligations and that information was incomplete or incorrect.
The proposed change would also provide Netting Members with an
incentive to maintain controls around the completeness and accuracy of
data and other information that it reports to FICC in connection with
these requests.
2. Statutory Basis
FICC believes the proposed rule change is 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 change is consistent with Section
17A(b)(3)(F) of the Act \16\ and Rule 17ad-22(e)(23)(ii), promulgated
under the Act,\17\ for the reasons described below.
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\16\ 15 U.S.C. 78q-1(b)(3)(F).
\17\ 17 CFR 240.17ad-22(e)(23)(ii).
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Section 17A(b)(3)(F) of the Act requires, in part, that the rules
of a clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions and assure the
safeguarding of securities and funds which are in the custody or
control of the clearing agency or for which it is responsible.\18\ The
Rules currently provide that FICC may release Clearing Data, and other
data and information, to other regulatory organizations. The proposed
changes would improve these disclosures in the Rules by clarifying the
information that may be released by FICC for regulatory purposes could
be related to FICC's capacity as a regulated entity (other than its
status as a self-regulatory organization) and that FICC may release
other information, in addition to data. When participants better
understand their rights and obligations regarding the Rules, such
participants are more likely to act in accordance with the Rules, which
FICC believes would promote the prompt and accurate clearance and
settlement of securities transactions consistent with Section
17A(b)(3)(F) of the Act.\19\
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\18\ 15 U.S.C. 78q-1(b)(3)(F).
\19\ Id.
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The proposed changes would require Members to provide information,
when requested, to support FICC's ability to comply with its regulatory
reporting requirements. These proposed changes support FICC's ability
to comply with its regulatory obligations and, therefore, to continue
to perform its obligations as a registered clearing agency, which
include ensuring the prompt and accurate clearance and settlement of
securities transactions. In this way, the proposed changes are
consistent with Section 17A(b)(3)(F) of the Act.\20\
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\20\ Id.
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The proposed changes to require that Members indemnify FICC with
respect to the data and other information they provide to FICC would
limit the potential losses, liabilities, expenses, and exposures to
legal actions that FICC could otherwise incur. By limiting FICC's
exposures to these costs, the proposed change assures the safeguarding
of securities and funds which are in the custody or control of the
clearing agency or for which it is responsible, consistent with Section
17A(b)(3)(F) of the Act.\21\
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\21\ Id.
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Rule 17ad-22(e)(23)(ii) under the Act requires, in part, 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.\22\ As stated above, the proposed changes would provide Members
with information regarding (1) FICC's rights to share data and other
information with regulatory organizations for regulatory purposes, (2)
Members' requirement to provide FICC with data and other information,
when requested, in connection with its regulatory reporting
obligations, and (3) Members' indemnification of FICC for losses,
liabilities, expenses and legal actions that may arise in connection
with any incomplete or inaccurate data that is provided to FICC in
response to such requests. The proposed changes would provide Members
with information that would enable them to identify and evaluate the
risks related to FICC's ability to share information in compliance with
its regulatory obligations, and the costs that Members may incur in
connection with providing information to FICC, including in connection
with the indemnification of FICC. As such, FICC believes that the
proposed changes are consistent with Rule 17ad-22(e)(23)(ii) under the
Act.\23\
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\22\ 17 CFR 240.17ad-22(e)(23)(ii).
\23\ Id.
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(B) Clearing Agency's Statement on Burden on Competition
FICC does not believe the proposed rule changes would have any
impact on competition. The proposed changes would apply equally to all
Members, as the information that FICC may be required to share with
other regulatory organizations could relate to any Netting Member or
Indirect Participant. The proposed changes are designed to improve
Netting Members' understanding of the implications of FICC's regulatory
reporting requirements and, through the
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indemnification requirement, encourage Netting Members to adopt, or
enhance existing, controls that would ensure information provided to
FICC is complete and accurate. As such, FICC does not believe such
proposed changes would have any effect on participants' respective
competitive positions.
(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 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/regulatory-actions/how-to-submit-comments">www.sec.gov/regulatory-actions/how-to-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 SEC's Division of Trading
and Markets at <a href="/cdn-cgi/l/email-protection#2b5f594a4f42454c4a454f464a59404e5f586b584e48054c445d"><span class="__cf_email__" data-cfemail="7105031015181f16101f151c10031a140502310214125f161e07">[email protected]</span></a> or 202-551-5777.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
Because the foregoing proposed rule change does not:
(i) significantly affect the protection of investors or the public
interest;
(ii) impose any significant burden on competition; and
(iii) become operative for 30 days from the date on which it was
filed, or such shorter time as the Commission may designate, it has
become effective pursuant to Section 19(b)(3)(A) of the Act \24\ and
Rule 19b-4(f)(6) thereunder.\25\
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\24\ 15 U.S.C. 78s(b)(3)(A).
\25\ 17 CFR 240.19b-4(f)(6).
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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.
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#2052554c450d434f4d4d454e5453605345430e474f56"><span class="__cf_email__" data-cfemail="0c7e796069216f6361616962787f4c7f696f226b637a">[email protected]</span></a>. Please include
file number SR-FICC-2026-009 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-2026-009. 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-2026-009 and should be submitted on or
before August 28, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-16099 Filed 8-6-26; 8:45 am]
BILLING CODE 8011-01-P
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