Notice2026-17671
LSEG Post Trade Services Limited; Notice of Filing of Application for Exemption From Registration as a Clearing Agency Under Section 17A of the Securities Exchange Act of 1934
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 31, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 167 (Monday, August 31, 2026)</title>
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[Federal Register Volume 91, Number 167 (Monday, August 31, 2026)]
[Notices]
[Pages 55956-55961]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17671]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106200; File No. 600-40]
LSEG Post Trade Services Limited; Notice of Filing of Application
for Exemption From Registration as a Clearing Agency Under Section 17A
of the Securities Exchange Act of 1934
August 26, 2026.
I. Introduction
On August 8, 2024, Schvey, Inc. (d/b/a Axoni, ``Axoni'') filed with
the Securities and Exchange Commission (``Commission'') an application
on Form CA-1 seeking an exemption from registration as a clearing
agency pursuant to Section 17A of the Securities Exchange Act of 1934
(``Exchange Act'') and Rule 17Ab2-1 thereunder.\1\ On November 22,
2024, LSEG Post Trade Services Limited (``LSEG'') amended the
application to reflect its acquisition in October 2024 of the Veris
platform (``Application'').\2\
[[Page 55957]]
This Application concerns the Veris platform, a post-trade
reconciliation and lifecycle management platform for transactions in
equity security-based swaps (``SBS''), that provides trade matching
services by facilitating SBS contract management.\3\
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\1\ See 15 U.S.C. 78q-1; 17 CFR 240.17ab2-1 (``Rule 17Ab2-1'').
\2\ See Application, Exhibit J, at J-1. Prior to LSEG's
acquisition of the Veris platform, Axoni amended the Application on
August 12, September 19, October 3, and October 7. LSEG subsequently
amended the Application in 2024 on November 26 and December 4, in
2025 on February 20, and in 2026 on February 4 and February 11.
\3\ See Application, Exhibit J, at J-1 (``[t]he Veris platform
reduces the effort needed to reconcile post trade data and prevent
cash flow breaks by enabling counterparties to share and compare
data associated with equity SBS deals, positions, trades, and
related cash flows throughout the post-trade lifecycle''); see also
Application, Exhibit S, at S-2.
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The Commission is publishing this notice to solicit comments from
interested persons on the Application.\4\ The Commission will consider
any comments it receives in making its determination whether to grant
LSEG's request for an exemption from registration as a clearing
agency.\5\
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\4\ The non-confidential exhibits of the Application are
available for viewing on the Commission's website at <a href="https://www.sec.gov/rules-regulations/commission-orders-notices/other-commission-orders-notices-information">https://www.sec.gov/rules-regulations/commission-orders-notices/other-commission-orders-notices-information</a>.
\5\ Because the Application seeks an exemption from
registration, the timing requirements in Section 19(a) of the
Exchange Act do not apply. See 15 U.S.C. 78q-1(b)(2) (applying the
provisions of Section 19(a) to applications for registration but not
applications for an exemption from registration).
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II. Background
LSEG, through its predecessor Axoni, has been providing the
services described in Part III of this notice pursuant to a temporary,
class-based exemption issued by the Commission in 2011 (``2011
Temporary Exemption'').\6\ Specifically, the 2011 Temporary Exemption
provided exemptive relief to entities performing (non-central
counterparty) post-trade services for SBS that otherwise would have to
register as a clearing agency or obtain an exemption from
registration.\7\ In adopting Regulation SE in 2023, the Commission
terminated the 2011 Temporary Exemption, while extending its exemptive
relief to entities that applied for registration or an exemption from
registration as a clearing agency.\8\ Pursuant to the terms set forth
in the Regulation SE adopting release, LSEG has continued to provide
the services described below.\9\
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\6\ See Order Pursuant to Section 36 of the Securities Exchange
Act of 1934 Granting Temporary Exemptions from Clearing Agency
Registration Requirements under Section 17A(b) of the Exchange Act
for Entities Providing Certain Clearing Services for Security-Based
Swaps, Release No. 34-64796 (July 1, 2011), 76 FR 39963 (July 7,
2011).
\7\ See 2011 Temporary Exemption, 76 FR at 39964; see also
Confirmation and Affirmation of Securities Trades; Matching, Release
No. 34-39829 (Apr. 6, 1998), 63 FR 17943, 17946 (Apr. 13, 1998) (the
``Matching Release'') (stating ``an intermediary that captures trade
information from a buyer and a seller of securities and performs an
independent reconciliation or matching of that information'' must
register as a clearing agency or receive an exemption from such
registration).
\8\ See Security-Based Swap Execution and Registration and
Regulation of Security-Based Swap Execution Facilities, Release No.
34-98845 (Nov. 2, 2023), 88 FR 87156, 87229 (Dec. 15, 2023)
(``Regulation SE'') (stating that ``[f]or any entity currently
relying on the 2011 Clearing Agency Exemption that becomes required
to register as a clearing agency, the exemptive relief will
terminate 180 days after the Effective Date of Regulation SE, which
will be 60 days after the date of publication in the Federal
Register, except that (1) with respect to an entity that has filed
an application to register as a clearing agency with the Commission
on Form CA-1 within 180 days of the Effective Date of Regulation SE,
the relief will terminate 240 days after the Effective Date of
Regulation SE; and (2) with respect to an entity that has filed an
application on Form CA-1 within 180 days after the Effective Date of
Regulation SE and whose application on Form CA-1 is complete (having
responded to requests by the Commission's staff for revisions or
amendments) within 240 days after the effective date, the exemptive
relief will terminate 30 days after the Commission acts to approve
or disapprove the application on Form CA-1.'').
\9\ See Regulation SE, 88 FR at 87229; Exhibit J at J-1.
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III. Summary of the Applicant's Organization and Services
A. Organization
LSEG is organized under the laws of England and Wales and is
incorporated as a private limited company with the United Kingdom
Companies House.\10\ LSEG is governed by a five-person board of
directors.\11\ LSEG's ultimate parent is London Stock Exchange Group
plc.\12\
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\10\ See Application, Exhibit C, at C-1.
\11\ LSEG describes three directors as a ``Common Director.''
See Application, Exhibit A, at A-1.
\12\ See Application, Exhibit D, at D-1.
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B. Description of Services in Application
The Application explains that, in 2020, Axoni began offering the
Veris platform to a select number of customers.\13\ As explained above,
in October 2024, LSEG purchased the Veris platform from Axoni.\14\ LSEG
explains in its Application that the Veris platform, a post-trade
pairing reconciliation and lifecycle management platform for equity
SBS, reduces the effort needed to reconcile post-trade data and prevent
cash flow breaks by enabling counterparties to share and compare data
associated with equity SBS deals, positions, trades, and related cash
flows throughout the post-trade lifecycle.\15\ LSEG states that the
Veris platform provides ``real-time transparency'' to both
counterparties on reconciliation exceptions and reduces operational
risks including settlement delays.\16\ LSEG also states that all equity
SBS transactions are executed and settled outside of the Veris
platform, and that post-execution, counterparties transmit to the Veris
platform their post-execution swap data.\17\
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\13\ See Application, Exhibit J, at J-1.
\14\ See id.
\15\ See id.
\16\ See id.
\17\ See id.
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LSEG states that the Veris platform has onboarded ``regulated
financial institutions'' such as broker-dealers, banks, registered
investment companies and private funds.\18\ LSEG indicates that it does
not limit the types of persons that may use the Veris platform,
provided: (i) the entity is registered, and in good standing, with a
regulatory authority; and (ii) the entity has the operational and
technological capacity to connect to the Veris platform.\19\ LSEG
states that each Veris platform customer entered into a software
agreement with Axoni (now assigned to LSEG).\20\ LSEG also states that
this software agreement governs each customer's access and use of the
Veris platform.\21\ The Application further explains that, in 2026, the
contract terms that govern each customer's use of the Veris platform
will migrate to a standard uniform rulebook.\22\
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\18\ See Application, Exhibit O, at O-1.
\19\ See id.
\20\ See Application, Exhibit P, at P-1.
\21\ See id.
\22\ See id.
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In the Application, LSEG describes the Veris platform's
functionality and workflow, as well as three features planned for
release in 2026.\23\ As more fully described below, LSEG identifies 15
specific elements of the Veris platform's functionality in the
Application.\24\
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\23\ See Application, Exhibit J, at J-1--J-4.
\24\ See id. at J-1--J-2.
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1. Data Capture. The Veris platform ingests data through an
Application Programming Interface (``API'') or Financial Information
Exchange (``FIX'') engine from customers. The software subsequently
creates, updates, or cancels the actioning customer's data records
representing the equity SBS transactions.\25\
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\25\ See id. at J-1.
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2. Post-Trade Data Pairing. Using the key terms entered into by
both counterparties (party A and party B) comprising a data record
(equity SBS), the Veris platform compares to identify which records
from party A correspond to party B's version of those records. Once a
pair is identified, the Veris platform creates a paired record.\26\
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\26\ See id.
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3. Data Reconciliation. The Veris platform compares pairs records
on specific fields/terms relevant to the
[[Page 55958]]
equity SBS. The platform marks as exceptions counterparty data
differences outside any thresholds.\27\
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\27\ See id. at J-2.
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4. Data Enrichment. The Veris platform defaults/enriches certain
data fields from higher hierarchical levels to lower data levels. For
example, it will automatically enrich transactional data with higher
level data to streamline the user experience (e.g., ``unwind
methodology'' can be provided at the deal level).\28\
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\28\ See id.
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5. Amendments. The Veris platform enables a party to update or
amend its data.\29\
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\29\ See id.
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6. Cancellation. The Veris platform enables customers to cancel
data records. Cancelled data may be replaced with a newer version of
the record.\30\
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\30\ See id.
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7. User Interface (``UI''). LSEG explains that the Veris platform
is connected to a UI to facilitate customer access to their data and
provides exporting, audit history, affirmation, and search
functions.\31\
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\31\ See id.
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8. Affirmation. The Veris platform allows parties to affirm update/
create their side of a paired record with the values of their
counterparty.\32\
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\32\ See id.
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9. Account Mapping. The Veris platform allows customers to provide
linkage between their transactional data and deal-level data based on
account and market preferences.\33\
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\33\ See id.
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10. Trade Ordering. The Veris platform orders trades based on
execution date and time, and subsequently, determines the type of trade
activity (e.g., determining if a trade type is a buildup, unwind, or
full unwind).\34\
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\34\ See id.
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11. Position Calculation. The Veris platform independently
calculates the quantity and number of securities on the position level
based on the transactional records received for a given position.\35\
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\35\ See id.
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12. Corporate Action Outturn Position Updates. The Veris platform
determines the net effect on a position (e.g., number of securities on
a stock split) from corporate action transactions received from
customers.\36\
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\36\ See id.
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13. Single-Sided Flow. The Veris platform reconciles allocation
instructions against risk bookings for a single party.\37\
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\37\ See id.
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14. Electronic Master Confirm Agreement. The Veris platform allows
creation and storage of an electronic representation of a ``Master
Confirmation Agreement'' (``MCA'').\38\
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\38\ See id.
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15. Authentication and Permissions. The Veris platform manages
permissions by allowing customers to authenticate themselves. Upon
authentication, the platform grants customers the ability to access,
create, and update their data for transactions to which they are a
party.\39\
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\39\ See id.
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In its Application, LSEG also described three features to be
released during 2026, as follows:
1. Data normalization, which will allow clients to deliver data to
the platform in the client's proprietary formats. Veris will then
``transform'' the data into the data models required by the
platform.\40\
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\40\ See id. at J-2--J-3.
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2. Asset cross-referencing, which will allow clients to submit
different identifier types on their trade information. To link trades
submitted by counterparties with different identifier types, Veris will
introduce the capability to cross-reference between identifiers such as
RIC, SEDOL, CUSIP, and ISIN.\41\
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\41\ See id. at J-3.
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3. Cashflow matching, which will offer the capability to match
cashflows resulting from SBS transactions. Cashflow matching would be
delivered in a phased approach with ``increasing granularity,''
offering clients the ability to match or affirm cashflows at a net
level or per transaction. The Application explains that settlements
will continue to occur on a bilateral basis outside of the Veris
platform.\42\
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\42\ See id.
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As described further below, LSEG states that the Veris platform
does not provide the following functionality: (i) execution; (ii)
settlement; or (iii) clearing.\43\
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\43\ See id. at J-2.
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1. Execution. LSEG states that the Veris platform does not allow
customers to execute equity SBS transactions or transactions in the
securities underlying the equity SBS.\44\
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\44\ See id. at J-3.
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2. Settlement. LSEG states that the Veris platform does not settle
equity SBS transactions or transactions in the securities underlying
the equity SBS.\45\
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\45\ See id.
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3. Clearing. LSEG states that the Veris platform does not clear
equity SBS transactions or transactions in the securities underlying
the equity SBS.\46\
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\46\ See id.
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Additionally, LSEG explains the Veris platform's workflow in ten
steps:
1. As part of the client onboarding process, any customer
permissions, reference data, and documentation (e.g., MCA) are
established in the system.\47\
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\47\ See id.
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2. The equity SBS execution occurs outside of the Veris
platform.\48\
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\48\ See id.
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3. Workflows managing the processing of the underlying equity asset
(execution, clearance, and settlement) occur outside of the Veris
platform through normal business channels.\49\
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\49\ See id.
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4. Parties transmit their post allocation swap data records to the
Veris platform for Data Capture via API, FIX, or UI Affirmation.\50\
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\50\ See id.
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5. The Veris platform processes the data to pair and reconcile any
differences relative to counterparty submissions of their records.\51\
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\51\ See id.
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6. The Veris platform communicates the results of the
reconciliation to parties via API and/or UI.\52\
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\52\ See id.
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7. Each customer sends its version of all lifecycle data, including
the following: (i) amendments (e.g., financing re-rates); (ii) position
accruals; (iii) cash flows; and (iv) corporate action outturns.\53\
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\53\ See id. at J-3--J-4.
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8. The Veris platform continuously reconciles all lifecycle data
throughout the life of the swap, highlighting exceptions to customers,
while storing a unified record of paired data.\54\
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\54\ See id. at J-4.
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9. Customers investigate and remediate exceptions identified by the
Veris platform by updating their submissions upstream from the Veris
platform to ensure swap data is in alignment with their counterparty's
systems.\55\
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\55\ See id.
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10. Parties settle cash flows outside of the Veris platform.\56\
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\56\ See id.
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IV. Statutory Standard
Section 17A(b)(1) of the Exchange Act requires any clearing agency
to register with the Commission before performing the functions of a
clearing agency with respect to any security (other than an exempted
security).\57\ Section 17A(b)(1) of the Exchange Act also provides
that, by rule or order, upon its own motion or upon application, the
Commission may conditionally or unconditionally exempt a clearing
agency from any provisions of Section 17A or the rules
[[Page 55959]]
or regulations thereunder if the Commission finds that such exemption
is consistent with the public interest, the protection of investors,
and the purposes of Section 17A, including the prompt and accurate
clearance and settlement of securities transactions and the
safeguarding of securities and funds.\58\
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\57\ See 15 U.S.C. 78q-1(b)(1); 17 CFR 240.17ab2-1.
\58\ See 15 U.S.C. 78q-1(b)(1).
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In the Matching Release, the Commission stated that an entity that
limited its clearing agency functions to providing matching services
might not have to be subject to the full range of clearing agency
regulation, consistent with the exemptive authority provided in Section
17A(b)(1).\59\ The Commission stated that a conditional exemption would
exempt an entity from clearing agency registration under ``appropriate
conditions.'' \60\ The Commission anticipated that an entity seeking an
exemption from clearing agency registration for matching would be
required to: (1) provide the Commission with information on its
matching services and notice of material changes to its matching
services; (2) establish an electronic link to a registered clearing
agency that provides for the settlement of its matched trades; (3)
allow the Commission to inspect its facilities and records; and (4)
make periodic disclosures to the Commission regarding its
operations.\61\
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\59\ See Matching Release, supra note 7, 63 FR at 17947.
\60\ See id.
\61\ See id., n.28.
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V. Request for Exemption
In its Application, LSEG requests that the Commission grant a
conditional exemption to permit it to operate the services described in
Part III above without registering as a clearing agency, as explained
further below.
A. Application of Statutory Standard
LSEG requests an exemption from clearing agency registration in
connection with its Veris post-trade pairing, reconciliation, and
lifecycle management service for equity SBS, which it describes as the
``Equity SBS Post-Trade Services.'' LSEG explains that the Veris
platform includes a limited set of services that fall within the
Commission's definition of ``trade matching,'' such as capturing an
equity SBS transaction's trade information to perform an independent
comparison of such information.\62\ LSEG states that it does not
perform comparison of trade data to reduce the number of settlements or
to allocate settlement responsibilities, or provide any other execution
or settlement services.\63\ Citing its belief that Veris performs only
a limited number of services that would require registration as a
clearing agency, LSEG states the conditions proposed in its
Application, and reproduced in Part V.B below, will provide the
appropriate level of protection against risk related to custody,
clearance, and settlement.\64\
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\62\ See Application, Exhibit S at S-3.
\63\ See id. at S-3--S-4.
\64\ See id. at S-4.
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In the Application, LSEG also states that exempting the Veris
platform from registration, subject to the specified conditions set
forth below, will: (i) produce substantial U.S. public benefit; (ii)
provide U.S. investors and the U.S. national clearance and settlement
system with substantially the same level of protection against risk
related to custody, clearance, and settlement that full registration
would provide; and (iii) advance the purposes of Section 17A of the
Exchange Act.\65\ In identifying a ``substantial U.S. public benefit,''
LSEG states that the Veris platform will improve the speed, accuracy,
and reliability of post-trade equity SBS pairing and reconciliation,
including reconciliation of cash flow amounts.\66\ LSEG also states
that these improvements should: (i) reduce operational and settlement
risk for equity SBS transactions; (ii) decrease overall costs to equity
SBS market participants; and (iii) increase the potential for
developments of new and enhanced functionality related to equity SBS
transactions.\67\
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\65\ See id. at S-2.
\66\ See id. at S-3.
\67\ See id.
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In addition, LSEG represents that it will not engage in any
activity inconsistent with the purposes of Section 17A(a)(2) of the
Exchange Act, which directs the Commission to facilitate the
establishment of linked or coordinated facilities for clearance and
settlement of transactions in securities.\68\ Because equity SBS
transactions are not centrally cleared in the U.S., LSEG states that
interoperability requirements would be inappropriate at this time.\69\
LSEG represents that, in any event, it will not engage in activities
that would prevent other services from operating a matching service
independent of LSEG's services.\70\
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\68\ See id. at S-5; see also 15 U.S.C. 78q-1(a)(2).
\69\ See Application, Exhibit S, at S-5. Cf. Release Nos. 34-
44188 (Apr. 17, 2001), 66 FR 20494 (Apr. 23, 2001); 34-76514 (Nov.
25, 2015), 80 FR 75387 (Dec. 1, 2015) (setting forth conditions
related to interoperability for central matching service providers
in the U.S. equity and fixed income markets).
\70\ See Application, Exhibit S, at S-5.
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B. Conditions to Exemption
In its Application, LSEG states that Regulation Systems Compliance
and Integrity (``Regulation SCI''), adopted in 2014, would not apply to
the Equity SBS Post-Trade Services and also believes it is not
necessary for the Commission to impose compliance with Regulation SCI
to fulfill the purposes of the Exchange Act because (i) the Equity SBS
Post-Trade Services are limited in nature, and (ii) LSEG agrees to
comply with operational risk conditions relating to systems compliance
and integrity. The conditions, described in its Application,\71\ are
reproduced and renumbered as Parts B.1 and B.2 of this notice.
References to the ``Applicant'' have been replaced with ``LSEG.''
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\71\ See id. at S-5--S-8.
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B.1. Operational Risk Conditions
LSEG proposes the following operational risk conditions as part of
its request for an exemption from registration as a clearing agency:
(1) LSEG shall demonstrate to the Commission or its designee no
later than 120 days after the Commission grants an order \72\ exempting
LSEG from registration as a clearing agency (the ``Exemption Order''),
that LSEG maintains written policies and procedures applicable to those
systems that support or are integrally related to the Equity SBS Post-
Trade Services (the ``Systems'') that, on an ongoing basis, are
reasonably designed to:
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\72\ The Application states ``this order'' rather than ``an
order.'' Id. at S-5.
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a. establish a robust operational risk-management framework
applicable to the Systems with appropriate systems, policies,
procedures, and controls to identify, monitor, and manage operational
risks; \73\
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\73\ Id. at S-5--S-6.
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b. clearly define the roles and responsibilities of LSEG personnel
for addressing operational risk; \74\
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\74\ Id. at S-6.
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c. review, in accordance with the LSEG Policy Governance Framework,
operational policies, procedures, and controls applicable to the
Systems;
d. audit the Systems, and test the Systems periodically and at
implementation of significant changes; \75\
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\75\ Id.
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e. clearly define operational reliability objectives for the
Systems;
f. ensure that the Systems have scalable capacity adequate to
handle increasing stress volumes and achieve the Systems service-level
objectives; \76\
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\76\ Id.
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[[Page 55960]]
g. establish comprehensive physical and information security
policies that address all known potential vulnerabilities and threats
to the Systems; \77\
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\77\ Id.
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h. establish a business continuity plan for the Systems that
addresses events posing a significant risk of disrupting the Systems'
operations, including events that could cause a wide-scale or major
disruption in the provision of the Equity SBS Post-Trade Services; \78\
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\78\ Id.
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i. incorporate the use of a secondary site in LSEG's business
continuity plan that is designed to ensure that all critical Systems
can resume operations within two hours following disruptive events;
\79\
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\79\ Id.
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j. regularly test or otherwise validate LSEG's business continuity
plans; \80\ and
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\80\ Id.
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k. identify, monitor, and manage the risks that key participants,
other financial market infrastructures and service and utility
providers might pose to the Systems' operations in relation to the
Equity SBS Post-Trade Services.\81\
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\81\ Id.
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(2) For purposes of condition V.B.1(1), such policies and
procedures shall be consistent with current information technology
industry standards, which shall be comprised of information technology
practices that are widely available to information technology
professionals in the financial sector and issued by a widely recognized
organization. LSEG shall inform the Commission or its designee of the
information technology industry standards that LSEG has chosen to use,
affirm that choice on an annual basis, and provide advance notice of
the use of different standards as soon as practicable.\82\
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\82\ Id.
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(3) LSEG shall provide the Commission or its designee with an
annual update on the status of the items set forth in condition
V.B.1(1).\83\
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\83\ Exhibit S at S-7.
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(4) LSEG shall establish, implement, maintain, and enforce written
policies and procedures reasonably designed to ensure that the Systems
operate on an ongoing basis in a manner that complies with the
conditions applicable to the Systems and with LSEG's rules and
governing documents applicable to the Equity SBS Post Trade
Services.\84\
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\84\ Id.
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(5) LSEG shall report all material critical systems' outages to the
Commission within 24 hours following confirmation of the incident.\85\
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\85\ Id. With respect to ``material critical systems,'' the
Application explains the term ``critical system'' refers to a system
for which the availability of an alternative is significantly
limited or non-existent and without which there would be a material
impact on fair and orderly markets.
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(6) LSEG shall, within 30 calendar days after the end of each
quarter, submit to the Commission or its designee a report describing
completed, ongoing and planned material changes to the Systems that
support or are related to the Equity SBS Post-Trade Services during the
prior, current, and subsequent calendar quarters, including the dates
or expected dates of commencement and completion. (LSEG shall establish
reasonable written criteria for identifying a change to the Systems as
material and report such changes in accordance with such criteria.)
\86\
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\86\ Id.
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(7) LSEG shall, on an annual basis, provide the Commission or its
designee with the audited control report including internationally
recognized certifications, as appropriate.\87\
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\87\ Id.
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(8) LSEG shall make, keep, and preserve at least one copy of all
documents relating to its compliance with the operational risk
conditions; keep all such documents for a period of not less than five
years, the first two years in an easily accessible place; and upon
request of the Commission, promptly furnish to the possession of the
Commission or its designee copies of any such documents.\88\
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\88\ Id.
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B.2. Additional Conditions
LSEG proposes the following additional conditions as part of its
request for an exemption from registration as a clearing agency:
(1) LSEG shall provide to the Commission or its designee its annual
audited financial statements prepared by competent independent audit
personnel.\89\
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\89\ Id.
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(2) LSEG shall notify the Commission or its designee of any
material changes to any service agreement between LSEG and any other
entity that is performing any portion of the Equity SBS Post-Trade
Services on behalf of LSEG if such changes are reasonably expected to
materially affect the Equity SBS Post-Trade Services.\90\
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\90\ Id.
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(3) LSEG shall preserve a copy or record of post-execution pairing
and reconciliation data pertaining to the operation of the Equity SBS
Post-Trade Services. LSEG shall retain these records for a period of
not less than five years, the first two years in an easily accessible
place.\91\
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\91\ Exhibit S at S-7--S-8.
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(4) LSEG shall respond to a request from the Commission for
additional information relating to the Equity SBS Post-Trade Services
and provide the Commission or its designee with access to LSEG's
facilities (including automated systems and systems environment),
records, and personnel related to the Equity SBS Post-Trade Services.
The request for information shall be made and the inspections shall be
conducted solely for the purpose of reviewing the Equity SBS Post-Trade
Services' operations and compliance with the federal securities laws
and the terms and conditions in any Exemption Order.\92\
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\92\ Exhibit S at S-8. The Application states ``the Exemption
Order'' rather than ``any Exemption Order.'' Id.
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(5) LSEG shall file with the Commission amendments to its
application for exemption on Form CA-1 if it makes any material change
to the Equity SBS Post-Trade Services or any change materially
affecting the Equity SBS Post-Trade Services as summarized in any
Exemption Order or LSEG's Form CA-1 that would make such previously
provided information incomplete or inaccurate.\93\
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\93\ Id. The Application states ``the Exemption Order'' rather
than ``any Exemption Order.'' Id.
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(6) The Commission may modify by order the terms, scope or
conditions of any Exemption Order if it determines that such
modification is necessary or appropriate in the public interest, the
protection of investors, or otherwise in furtherance of the purposes of
the Exchange Act. Furthermore, the Commission may limit, suspend, or
revoke the exemption if it finds that LSEG has violated or is unable to
comply with any of the provisions set forth in any Exemption Order if
such action is necessary or appropriate in the public interest, for the
protection of investors or otherwise in furtherance of the purposes of
the Exchange Act.\94\
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\94\ Id. In each instance, the Application states ``the
Exemption Order'' rather than ``any Exemption Order.'' Id.
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VI. Request for Written Comments
Interested persons are invited to provide written data, views, and
arguments concerning the Application, including whether the proposed
exemption is consistent with the public interest, the protection of
investors, and the purposes of Section 17A of the Exchange Act. To the
extent possible, commenters are requested to provide
[[Page 55961]]
empirical data and other factual support for their views. In addition,
the Commission seeks comment generally on the following questions
relevant to the consideration of the Application:
1. Since the Commission issued the 2011 Temporary Exemption, has
LSEG provided matching services and operated consistent with the public
interest, the protection of investors, and the purposes of the Exchange
Act? Why or why not? To what extent has LSEG's provision of matching
services affected the ongoing development of the national system for
clearance and settlement?
2. What operational or other risks, if any, do the services
described in the Application pose to LSEG's customers or to clearing
agencies with which they interact? Do LSEG's proposed conditions
sufficiently address any such risks? Please explain.
3. Are LSEG's proposed conditions consistent with the public
interest, the protection of investors, and the purposes of Section 17A
of the Exchange Act, including the prompt and accurate clearance and
settlement of securities transactions and the safeguarding of
securities and funds? Would any revisions to the proposed conditions
better promote the purposes of Section 17A of the Exchange Act? Why or
why not? If so, which conditions should be modified? Should any
conditions be added? Why or why not?
4. Are LSEG's proposed conditions designed to promote innovation
and to facilitate competition among matching services?
5. Are there any aspects of the services provided by LSEG, or other
aspects of its Application, that support modifying or revising the
interpretations provided by the Commission in the Matching Release? If
so, in what ways or how?
6. Are there any aspects of the services provided by LSEG, or other
aspects of its Application, that support applying Commission rules such
as Regulation SCI, the rules for central matching service providers
under 17 CFR 240.17ad-27, or the recordkeeping requirements for
registered clearing agencies under 17 CFR 240.17a-1? If so, which rules
and why?
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-regulations/how-submit-comment">https://www.sec.gov/rules-regulations/how-submit-comment</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#7e0c0b121b531d1113131b100a0d3e0d1b1d50191108"><span class="__cf_email__" data-cfemail="641611080149070b0909010a1017241701074a030b12">[email protected]</span></a>. Please include
File Number 600-40 on the subject line.
Paper Comments
<bullet> Send paper comments to Secretary, Securities and Exchange
Commission, 100 F Street NE, Washington, DC 20549-1090. All submissions
should refer to File Number 600-40.
To help the Commission process and review your comments more
efficiently, please use only one method of submission. The Commission
will post all comments on the Commission's internet website (<a href="https://www.sec.gov/rules-regulations/commission-orders-notices/other-commission-orders-notices-information">https://www.sec.gov/rules-regulations/commission-orders-notices/other-commission-orders-notices-information</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 600-40 and should be submitted on or before
October 15, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\95\
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\95\ 17 CFR 200.30-3(a)(16).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-17671 Filed 8-28-26; 8:45 am]
BILLING CODE 8011-01-P
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