Notice2026-19054
Self-Regulatory Organizations; LCH SA; Order Granting Conditional Exemptive Relief Pursuant to Section 36 of the Securities Exchange Act of 1934 Relating to Rule Filing Requirements
Primary source
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Published
September 17, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 179 (Thursday, September 17, 2026)</title>
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[Federal Register Volume 91, Number 179 (Thursday, September 17, 2026)]
[Notices]
[Pages 58940-58943]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19054]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106353; File No. 600-36]
Self-Regulatory Organizations; LCH SA; Order Granting Conditional
Exemptive Relief Pursuant to Section 36 of the Securities Exchange Act
of 1934 Relating to Rule Filing Requirements
September 15, 2026.
I. Introduction
On December 22, 2025, Banque Centrale de Compensation, which
conducts business under the name LCH SA (``LCH SA''), filed an
application with the Securities and Exchange Commission
(``Commission''), to amend exemptive relief granted to it by the
Commission on December 29, 2016 (``Request for Exemptive Relief'') \1\
pursuant to section 36 of the Securities Exchange Act of 1934 (``Act''
or ``Exchange Act''),\2\ in accordance with the procedures set forth in
Rule 0-12 under the Act.\3\ As part of the Commission's 2016 order
granting LCH SA's application for registration as a clearing agency,
the Commission granted LCH SA exemptions from certain requirements of
the Act and the rules thereunder, including an exemption from section
19(b) of the Act \4\ and Rule 19b-4 \5\ thereunder with respect to
filing certain proposed rule changes relating to its business lines
operating outside of the U.S. (``Current Exemptive Relief'').\6\ LCH
SA's Request for Exemptive Relief would amend the Current Exemptive
Relief as it relates to section 19(b) of the Act \7\ and Rule 19b-4 \8\
thereunder relating to LCH SA's clearing services.
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\1\ Letter from Nicolas Dot, Chief Compliance Officer, LCH SA,
dated December 22, 2025 (``Application'').
\2\ 15 U.S.C. 78mm.
\3\ 17 CFR 240.0-12. Exchange Act Rule 0-12 sets forth
procedures for filing applications for orders for exemptive relief
pursuant to section 36. The Application is available on the
Commission's website at <a href="https://www.sec.gov/files/rules/sro/lchsa/2026/34-105357.pdf">https://www.sec.gov/files/rules/sro/lchsa/2026/34-105357.pdf</a>. Defined terms in this order are the same as used
in the Application unless we note otherwise.
\4\ 15 U.S.C. 78s(b)(2).
\5\ 17 CFR 240.19b-4.
\6\ Order Granting Application for Registration as a Clearing
Agency and Request for Exemptive Relief, Exchange Act Release No.
79707 (Dec. 29, 2016), 82 FR 1398, 1412 (Jan. 5, 2017) File No. 600-
36) (``Order'').
\7\ 15 U.S.C. 78s(b)(2).
\8\ 17 CFR 240.19b-4.
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Notice of the Request for Exemptive Relief (``Notice'') was
published in the Federal Register on May 6, 2026.\9\ The Commission
received two comment letters on the Notice.\10\ Both letters supported
the Request for Exemptive Relief and requested the Commission grant it.
Neither letter suggested any changes to the conditions to the relief.
For the reasons discussed below, this order grants LCH SA conditional
exemptive relief from certain requirements under section 19(b) of the
Act \11\ and Rule 19b-4 \12\ thereunder.
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\9\ Exchange Act Release No. 105357 (May 4, 2026), 91 FR 24617
(May 6, 2026) (File No. 600-36) (``Notice'').
\10\ See Letter from Jennifer W. Han, Managed Funds Association,
dated June 4, 2026; Letter from Jiri Krol, Alternative Investment
Management Association, dated June 5, 2026. The public comment file
for the Application is available on the Commission's website at:
<a href="https://www.sec.gov/rules-regulations/public-comments/600-36">https://www.sec.gov/rules-regulations/public-comments/600-36</a>.
\11\ 15 U.S.C. 78s(b)(2).
\12\ 17 CFR 240.19b-4.
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II. Background
LCH SA is a clearing agency currently registered with the
Commission for the purpose of clearing security-based-swaps.\13\ It
clears security-based-swaps through its CDSClear business unit, for
persons in the U.S. and abroad.\14\ When the Current Exemptive Relief
was approved, LCH SA had three additional business units--(i)
EquityClear, for clearing equities, debt instruments, and futures
contracts; (ii) CommodityClear for clearing futures and options for
agricultural and energy products; and (iii) RepoClear for clearing
repurchase and cash transactions on Euro-denominated government and
supranational debts.\15\ These units operated entirely outside of the
U.S. and did not have any U.S. persons as Clearing Members, and LCH SA
did not seek to offer them to any U.S. persons (``Non-U.S.
Business'').\16\
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\13\ Order, 82 FR at 1410.
\14\ Order, 82 FR at 1398.
\15\ Notice, 91 FR at 24617.
\16\ Order, 82 FR at 1398; 1411.
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The Current Exemptive Relief exempts LCH SA from filing a proposed
rule change under section 19 of the Act \17\ and Rule 19b-4 \18\
thereunder if the proposed rule change (i) primarily affects LCH SA's
clearing operations with respect to its Non-U.S. Business, and (ii)
does not significantly affect any CDSClear operations or any rights or
obligations of LCH SA with respect to CDSClear services or persons
using such services (``Non-U.S. Business Rule Change'').\19\ Even if a
proposed rule change primarily affects the Non-U.S. Business, the
Current Exemptive Relief does not apply if it would significantly
affect CDSClear operations, services, or persons using those services.
Further, as a condition to the Current Exemptive Relief, LCH SA must
provide Commission staff with notice of its Non-U.S. Business Rule
Changes within three business days following approval by LCH SA's
national competent authorities.\20\ The Commission granted this relief
because the Non-U.S. Business did not and would not have U.S. persons
as Clearing Members and the terms of the relief ensured that the
Commission would have the opportunity to review proposed rule changes
that impacted U.S. persons.\21\
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\17\ 15 U.S.C. 78s(b).
\18\ 17 CFR 240.19b-4.
\19\ Order, 82 FR at 1414.
\20\ Order, 82 FR at 1414.
\21\ Order, 82 FR at 1411-12; Notice, 91 FR at 24617.
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II. Request for Exemptive Relief
Currently, LCH SA has three business units--CDSClear, RepoClear,
and DigitalAssetClear.\22\ RepoClear and DigitalAssetClear currently
comprise the Non-U.S. Business, because LCH SA operates them entirely
outside of the U.S. and because they do not have any U.S. persons as
Clearing Members.\23\ CDSClear is the only service currently offered in
the U.S. or to U.S. persons.\24\
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\22\ Notice, 91 FR at 24617. The EquityClear and CommodityClear
business units have both closed. Notice, 91 FR at 24617. LCH SA will
provide clearing services through DigitalAssetClear for cash-settled
Bitcoin index futures and options contracts. Notice, 91 FR at 24617
n.18.
\23\ Notice, 91 FR at 24617.
\24\ Notice, 91 FR at 24617.
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LCH SA now seeks to allow U.S. persons to join RepoClear as
Clearing Members, which would mean that RepoClear would no longer be a
Non-U.S. Business under the Current Exemptive Relief.\25\ Therefore,
LCH SA would classify RepoClear under a new category, as a ``Non-
Registrable Business.'' \26\ LCH SA represents that the Non-Registrable
Business does not include any clearance and settlement services
pertaining to any purchase or sale transaction in U.S. Treasury
securities or repurchase or reverse repurchase agreement collateralized
by U.S. Treasury securities; any other transaction involving U.S.
Treasury securities; or any clearance and settlement services
pertaining to any securities meeting the definition of ``government
securities'' in section
[[Page 58941]]
3(a)(42) of the Act.\27\ LCH SA requests an amendment to the Current
Exemptive Relief as it relates to its Non-Registrable Business to
provide limited, conditional relief for RepoClear while allowing LCH SA
to onboard U.S. Clearing Members to RepoClear.
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\25\ Notice, 91 FR at 24617-18.
\26\ Notice, 91 FR at 24617; Application at 4.
\27\ Notice, 91 FR at 24617-18 n.20; Application, at 2 n.7.
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Specifically, LCH SA requests an amendment to the Current Exemptive
Relief to provide its Non-Registrable Business (i.e., RepoClear) with
an exemption from section 19(b)(2) of the Exchange Act.\28\ LCH SA
requests that, for as long as the Non-Registrable Business has U.S.
Clearing Members, the Commission allow LCH SA to file with the
Commission proposed rule changes related to the Non-Registrable
Business solely pursuant to section 19(b)(3)(A) of the Act \29\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\30\ provided that,
consistent with the Current Exemptive Relief, any such proposed rule
change (i) primarily affects LCH SA's clearing operations with respect
to the Non-Registrable Business, and (ii) does not significantly affect
any CDSClear operations or any rights or obligations of LCH SA with
respect to the CDSClear services or persons using the CDSClear services
(``Non-Registrable Business Rule Change'').\31\ Under this proposed
relief, LCH SA will not file a Non-Registrable Business Rule Change
pursuant to section 19(b)(2) of the Act,\32\ and a Non-Registrable
Business Rule Change will take effect upon filing without an approval
order by the Commission.\33\
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\28\ 15 U.S.C. 78s(b)(2).
\29\ 15 U.S.C. 78s(b)(3)(a).
\30\ 17 CFR 240.19b-4(f)(6).
\31\ As part of LCH SA's Request for Exemptive Relief, Non-
Registrable Business Rule Changes would become effective under Rule
19b-4(f)(6) earlier than 30 days after the date of the filing, but
not sooner than the date of filing, and LCH SA may file Non-
Registrable Business Rule Changes even if LCH SA has not given the
Commission written notice of its intent to file the proposed rule
change, along with a brief description and text of the proposed rule
change, at least five business days prior to the date of filing the
proposed rule change. Notice, 91 FR at 24618 n.23.
\32\ 15 U.S.C. 78s(b)(2).
\33\ 15 U.S.C. 78s(b)(3)(A).
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LCH SA further proposes that this relief will end following written
notice from LCH SA to the Commission that the Non-Registrable Business
no longer has any U.S. Clearing Members. After such a notice, all Non-
Registrable Business Rule Changes will be treated like Non-U.S.
Business Rule Changes under the Current Exemptive Relief.\34\
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\34\ Notice, 91 FR at 24618.
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The Request for Exemptive Relief identifies several additional
conditions:
<bullet> LCH SA's obligation to file with the Commission the Non-
Registrable Business Rule Changes will begin on the effective date that
the first U.S. Clearing Member is admitted as a member of the Non-
Registrable Business.
<bullet> LCH SA will continue to comply with the terms of the
Current Exemptive Relief in respect of the Non-U.S. Business (including
DigitalAssetClear and any future business unit that LCH SA operates
entirely outside the U.S. that does not have any U.S. persons as
Clearing Members) by providing notice to Commission Staff of its Non-
U.S. Business Rule Changes within three (3) business days of such rules
taking effect pursuant to the requirements of the European Market
Infrastructure Regulation or LCH SA's national competent authorities.
<bullet> LCH SA must provide prompt written notice to the
Commission in the event that the Non-Registrable Business onboards U.S.
Clearing Members or ceases to have U.S. Clearing Members.
<bullet> LCH SA must continue to file Non-Registrable Business Rule
Changes, and otherwise comply with the terms of the requested relief
until LCH SA has, with respect to the Non-Registrable Business, closed
all transactions and positions involving U.S. Clearing Members and
their clients; completed final settlement of amounts owed to or from
U.S. Clearing Members and their clients; returned any collateral,
margin, or other property of U.S. Clearing Members and their clients;
and provided prompt written notice to the Commission when these
conditions are satisfied.
<bullet> If LCH SA is no longer required to file Non-Registrable
Business Rule Changes because LCH SA no longer has U.S. Clearing
Members in the Non-Registrable Business and has otherwise met the
above-described conditions, LCH SA may not again onboard U.S. Clearing
Members to the Non-Registrable Business without first receiving
approval from the Commission.
<bullet> Finally, in connection with the statutory and rule
provisions discussed throughout the Application from which exemptive
relief is requested, LCH SA represents that, as a condition of such
relief, LCH SA shall continue to implement policies and procedures
designed to ensure compliance with the terms and conditions described
in the Application, and to conduct periodic internal risk-based reviews
related to its compliance program.\35\
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\35\ Notice, 91 FR at 24618.
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The Request for Exemptive Relief does not change the rule filing
obligations of CDSClear or the Non-U.S. Business under the Current
Exemptive Relief.\36\ LCH SA must continue to file proposed rule
changes pursuant to section 19(b) of the Act \37\ and Rule 19b-4 \38\
thereunder for CDSClear.\39\ LCH SA is still exempt from filing
proposed rule changes that primarily affect its clearing operations
with respect to its Non-U.S. Business, including DigitalAssetClear and
any future business unit that LCH SA operates entirely outside the U.S.
and that does not have any U.S. persons as Clearing Members, and do not
significantly affect any CDSClear operations or any rights or
obligations of LCH SA with respect to the CDSClear services or persons
using such services, subject to the conditions set out in the Current
Exemptive Relief.\40\
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\36\ Notice, 91 FR at 24618.
\37\ 15 U.S.C. 78s(b).
\38\ 17 CFR 240.19b-4.
\39\ 17 CFR 240.19b-4.
\40\ Notice, 91 FR at 24618; Order, 82 FR at 1410 n.188.
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The Commission's oversight of LCH SA extends to LCH SA as a whole
and is entity-based, rather than product-based.\41\ Absent exemptive
relief, LCH SA is required to file all proposed rule changes with the
Commission, including those that relate to its Non-Registerable
Business. Moreover, absent exemptive relief, LCH SA is required to file
its proposed rule changes pursuant to section 19(b)(2) \42\ or
19(b)(3)(A) \43\ of the Act, depending on the content and effect of the
proposed rule change. Proposed rule changes filed under section
19(b)(3)(A) \44\ of the Act take effect upon filing, while proposed
rule changes filed under section 19(b)(2) \45\ must be approved by the
Commission before they take effect.
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\41\ Order, 82 FR at 1411, n.195.
\42\ 15 U.S.C. 78s(b)(2).
\43\ 15 U.S.C. 78s(b)(3)(a).
\44\ 15 U.S.C. 78s(b)(3)(a).
\45\ 15 U.S.C. 78s(b)(2).
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III. Discussion
Under section 36 of the Exchange Act, the Commission ``may
conditionally or unconditionally exempt any person, security, or
transaction, or any class or classes of persons, securities, or
transactions, from any provision or provisions of this title or of any
rule or regulation thereunder, to the extent that such exemption is
necessary or appropriate in the public interest, and is consistent with
the protection of investors.'' \46\ The Commission granted LCH SA's
Current Exemptive Relief, finding that it was necessary or appropriate
in the public interest and consistent with the protection of investors.
The Commission determined
[[Page 58942]]
that requiring LCH SA to file proposed rule changes with respect to the
Non-U.S. Business would not advance the Commission's regulatory
interest in overseeing registered clearing agencies and granting the
request for exemption would not compromise the Commission's oversight
responsibilities over registered clearing agencies on an entity-wide
basis.\47\ Similarly, the Commission finds that the conditional
exemptive relief granted herein is necessary or appropriate in the
public interest and consistent with the protection of investors because
(i) requiring LCH SA to file Non-Registrable Business Rule Changes
pursuant to section 19(b)(2) of the Act does not advance the
Commission's regulatory interest in overseeing registered clearing
agencies, and (ii) allowing LCH SA to file Non-Registrable Business
Rule Changes solely pursuant to section 19(b)(3)(A) of the Act,\48\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\49\ does not compromise the
Commission's oversight responsibilities over registered clearing
agencies on an entity-wide basis.
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\46\ 15 U.S.C. 78mm(a)(1).
\47\ Order, 82 FR at 1411-12.
\48\ 15 U.S.C. 78s(b)(3)(a).
\49\ 17 CFR 240.19b-4(f)(6).
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First, requiring LCH SA to file Non-Registrable Business Rule
Changes pursuant to section 19(b)(2) of the Act does not advance the
Commission's regulatory interest in overseeing registered clearing
agencies. Although LCH SA's Non-Registerable Business will offer
clearing services for securities, the Commission has a reduced
regulatory interest in the Non-Registerable Business. In the Non-
Registerable Business, LCH SA clears repurchase and cash transactions
on Euro-denominated government and supranational debts. As noted above,
the Non-Registerable Business does not include any clearance and
settlement services pertaining to any purchase or sale transaction in
U.S. Treasury securities or repurchase or reverse repurchase agreement
collateralized by U.S. Treasury securities; any other transaction
involving U.S. Treasury securities; or any clearance and settlement
services pertaining to any securities meeting the definition of
``government securities'' in section 3(a)(42) of the Act.\50\ Thus, the
Commission has a reduced regulatory interest in these clearing
services.
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\50\ 15 U.S.C. 78c(a)(42).
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Moreover, although LCH SA's Non-Registerable Business will include
U.S. Clearing Members, those Clearing Members will have opportunities
to review and comment on Non-Registerable Business Rule Changes. LCH SA
will file all Non-Registerable Business Rule Changes under section
19(b)(3)(A) of the Act \51\ and paragraph (f)(6) of Rule 19b-4
thereunder.\52\ Like other proposed rule changes filed under section
19(b)(3)(A) of the Act,\53\ the Commission will publish notice of, and
request public comment on, the Non-Registerable Business Rule Changes.
The public, including U.S. Clearing Members, will be able to review and
comment on the Non-Registerable Business Rule Changes, affording them
an opportunity to consider and provide feedback on such changes. 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, the Commission summarily may
temporarily suspend a Non-Registerable Business Proposed Rule Change
and institute proceedings with respect to such change, pursuant to
section 19(b)(3)(C) of the Act.\54\ Public notice and comment, as well
as the Commission's ability to suspend and institute proceedings,
provide a fair process to U.S. Clearing Members to consider, provide
feedback, and potentially challenge the Non-Registerable Business Rule
Changes.
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\51\ 15 U.S.C. 78s(b)(3)(A).
\52\ 17 CFR 240.19b-4(f)(6).
\53\ 15 U.S.C. 78s(b)(3)(A).
\54\ 15 U.S.C. 78s(b)(3)(C).
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Second, granting the conditional exemption does not compromise the
Commission's oversight responsibilities over registered clearing
agencies on an entity-wide basis. As stated above, the Commission's
oversight of LCH SA extends to LCH SA as a whole and is entity-based,
rather than product-based.\55\ Granting the relief will not affect
CDSClear and the Non-U.S. Business, as LCH SA will continue to file
proposed rule changes with respect to CDSClear and comply with the
existing conditions of the Current Exemptive Relief as they relate to
the Non-U.S. Business. Thus, LCH SA must file (i) proposed rule changes
with respect to CDSClear, (ii) proposed rule changes that do not
primarily affect LCH SA's non-CDSClear business lines, and (iii)
proposed rule changes with respect to its Non-U.S. Business that
significantly affect any CDSClear operations or any rights or
obligations of LCH SA with respect to the CDSClear services or persons
using the CDSClear services. LCH SA must also continue to provide
notice to Commission staff of its Non-U.S. Business Rule Changes within
three business days of such rules being duly approved by LCH SA's
national competent authorities.\56\ Similarly, Non-Registrable Business
Rule Changes must not significantly affect any CDSClear operations or
any rights or obligations of LCH SA with respect to the CDSClear
services or persons using the CDSClear services. The Commission's
oversight responsibilities are also not compromised by granting the
conditional exemption because, as noted above, the Commission could
still review, potentially suspend, and potentially disapprove Non-
Registrable Business Rule Changes filed under section 19(b)(3)(A) of
the Exchange Act.\57\
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\55\ Order, 82 FR at 1411, n.195.
\56\ Order, 82 FR at 1414.
\57\ 15 U.S.C. 78s(b)(3)(A).
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The conditions of the exemptive relief further prevent the request
from compromising the Commission's oversight responsibilities.
Specifically, the exemptive relief is conditioned on LCH SA's
obligation to file the Non-Registrable Business Rule Changes beginning
on the date that the first U.S. Clearing Member is admitted as a member
of the Non-Registrable Business and LCH SA providing prompt written
notice to the Commission when the Non-Registrable Business onboards
U.S. Clearing Members or ceases to have U.S. Clearing Members. It also
is conditioned on LCH SA's obligation to file Non-Registrable Business
Rule Changes ending only when it has closed all transactions and
positions involving U.S. Clearing Members and their clients, completed
final settlement of amounts owed to or from U.S. Clearing Members and
their clients, returned any collateral or other property of U.S.
Clearing Members and their clients, and provided prompt written notice
when it satisfies the conditions necessary to stop filing Non-
Registrable Business Rule Changes. If LCH SA is no longer required to
file Non-Registrable Business Rule Changes because LCH SA no longer has
U.S. Clearing Members in the Non-Registrable Business and has otherwise
met the required conditions, LCH SA may not again onboard U.S. Clearing
Members to the Non-Registrable Business without first receiving
approval from the Commission.
These conditions ensure that the Commission is aware of when LCH SA
begins filing Non-Registrable Business Rule Changes under the exemptive
relief. Further, the conditions ensure that the Commission is aware of
when LCH SA ceases filing Non-Registrable Business Rule Changes under
the exemptive relief and resumes treating its proposed changes as if
they are Non-
[[Page 58943]]
U.S. Business Rule Changes under the Current Exemptive Relief (and
therefore neither filing its Non-U.S. Business Rule Changes under
section 19(b)(2) \58\ nor 19(b)(3)(A) \59\ of the Exchange Act). By
making clear which relief LCH SA is following, these conditions allow
the Commission to maintain the appropriate level of oversight, as
described in the Current Exemptive Relief and the Request for Exemptive
Relief.
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\58\ 15 U.S.C. 78s(b)(2).
\59\ 15 U.S.C. 78s(b)(3)(A).
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Additionally, the conditions ending LCH SA's obligation to file
Non-Registrable Business Rule Changes only when it has closed all
transactions and positions involving U.S. Clearing Members and their
clients, completed final settlement of amounts owed to or from U.S.
Clearing Members and their clients, and returned any collateral or
other property of U.S. Clearing Members and their clients ensure that
LCH SA has satisfied all obligations with respect to its U.S. Clearing
Members before it treats the Non-Registrable Business as a Non-U.S.
Business. The conditions requiring that LCH SA continue to implement
policies and procedures designed to ensure compliance with the terms
and conditions described in the Request for Exemptive Relief and
conduct periodic, internal risk-based reviews related to its compliance
program further bolster LCH SA's oversight of its interactions with
U.S. Clearing Members.
Based on the above, granting LCH SA conditional exemptive relief
from the requirement to file Non-Registerable Business Rule Changes
under section 19(b)(2) of the Act \60\ and Rule 19b-4 thereunder \61\
is necessary or appropriate in the public interest, and consistent with
the protection of investors.
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\60\ 15 U.S.C. 78s(b)(2).
\61\ 17 CFR 240.19b-4.
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IV. Conclusion
It is therefore ordered, pursuant to section 36 of the Act, based
on the representations and facts presented in LCH SA's Request for
Exemptive Relief, that LCH SA is exempt from the requirement to file
Non-Registrable Business Rule Changes under sction 19(b)(2) of the Act
and Rule 19b-4 thereunder, subject to the following conditions:
(1) A Non-Registrable Business Rule Change is a proposed rule
change that;
(a) primarily affects LCH SA's clearing operations with respect to
the Non-Registrable Business; and
(b) does not significantly affect any CDSClear operations or any
rights or obligations of LCH SA with respect to the CDSClear services
or persons using the CDSClear services.
(2) LCH SA's Non-Registerable Business consists of its RepoClear
service, which offers clearing services for transactions in repurchase
and cash transactions on Euro-denominated government and supranational
debts and does not include any services pertaining to any purchase or
sale transaction in U.S. Treasury securities or repurchase or reverse
repurchase agreement collateralized by U.S. Treasury securities; any
other transaction involving U.S. Treasury securities; or any clearance
and settlement services pertaining to any securities meeting the
definition of ``government securities'' in section 3(a)(42) of the
Act.\62\
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\62\ 15 U.S.C. 78c(a)(42).
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(3) LCH SA must file with the Commission a Non-Registrable Business
Rule Change pursuant to section 19(b)(3)(A) of the Act \63\ and
paragraph (f)(6) of Rule 19b-4 thereunder,\64\ except that a Non-
Registrable Business Rule Change,
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\63\ 15 U.S.C. 78s(b)(3)(A).
\64\ 17 CFR 240.19b-4(f)(6).
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(a) may become effective under Rule 19b-4(f)(6) \65\ earlier than
30 days after the date of the filing, but not sooner than the date of
filing; and
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\65\ 17 CFR 240.19b-4(f)(6).
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(b) may be filed even if LCH SA has not given the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at least
five business days prior to the date of filing the proposed rule
change.
(4) LCH SA's obligation to file with the Commission the Non-
Registrable Business Rule Changes begins on the effective date that the
first U.S. Clearing Member is admitted as a member of the Non-
Registrable Business.
(5) LCH SA must provide prompt written notice to the Commission in
the event that the Non-Registrable Business,
(a) onboards U.S. Clearing Members, and
(b) ceases to have U.S. Clearing Members.
(6) In the event the Non-Registrable Business ceases to have U.S.
Clearing Members, LCH SA must continue to file Non-Registrable Business
Rule Changes, and otherwise comply with the conditions described herein
until LCH SA has, with respect to the Non-Registrable Business,
(a) closed all transactions and positions involving U.S. Clearing
Members and their clients;
(b) completed final settlement of amounts owed to or from U.S.
Clearing Members and their clients;
(c) returned any collateral, margin, or other property of U.S.
Clearing Members and their clients; and
(d) provided prompt written notice to the Commission when these
conditions are satisfied.
(7) If LCH SA is no longer required to file Non-Registrable
Business Rule Changes because LCH SA no longer has U.S. Clearing
Members in the Non-Registrable Business and has otherwise met the
above-described conditions, LCH SA may not again onboard U.S. Clearing
Members to the Non-Registrable Business without first receiving
approval from the Commission.
(8) If LCH SA is no longer required to file Non-Registrable
Business Rule Changes because LCH SA no longer has U.S. Clearing
Members in the Non-Registrable Business and has otherwise met the
above-described conditions, LCH SA may, from that point forward, treat
all Non-Registrable Business Rule Changes as Non-U.S. Business Rule
Changes under the Current Exemptive Relief.
(9) LCH SA must continue to comply with the terms of the Current
Exemptive Relief in respect of the Non-U.S. Business, which shall
include DigitalAssetClear and any future business unit that LCH SA
operates entirely outside the U.S. and that does not have any U.S.
Clearing Members, including by, among other things, providing notice to
Commission Staff of its Non-U.S. Business Rule Changes within three (3)
business days of such rules taking effect pursuant to the requirements
of the European Market Infrastructure Regulation or LCH SA's national
competent authorities.
(10) LCH SA shall implement policies and procedures designed to
ensure compliance with the terms and conditions described herein and
shall conduct periodic internal risk-based reviews of its program
designed to ensure compliance with the terms and conditions described
herein.
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-19054 Filed 9-16-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on September 17, 2026.
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