Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Enhance Automated Reasonability Checks for the Submission of ETF Creation and Exemption Transactions

Issuing agencies

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<title>Federal Register, Volume 91 Issue 212 (Wednesday, November 4, 2026)</title>
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[Federal Register Volume 91, Number 212 (Wednesday, November 4, 2026)]
[Notices]
[Pages 69610-69614]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22457]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106784; File No. SR-NSCC-2026-012]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed 
Rule Change To Enhance Automated Reasonability Checks for the 
Submission of ETF Creation and Exemption Transactions

October 30, 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 October 20, 2026, National Securities Clearing Corporation 
(``NSCC'') 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. 
NSCC 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 the NSCC 
Rules & Procedures (``NSCC Rules'') to enhance NSCC's automated 
reasonability checks for the submission of exchange-traded fund 
(``ETF'') creation and redemption transactions.\5\
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    \5\ Capitalized terms not defined herein shall have the meaning 
assigned to such terms in the NSCC 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
    The purpose of this proposed rule change is to amend the NSCC Rules 
to enhance NSCC's automated reasonability checks for the submission of 
ETF creation and redemption transactions by including authorized 
participants that are Members of NSCC in the reasonability check 
process and clarifying certain obligations of Index Receipt Agents and 
authorized participants with respect to this process. Specifically, 
NSCC proposes to modify the NSCC Rules to (i) include authorized 
participants in the ETF reasonability check process; (ii) clarify that 
Index Receipt Agents and authorized participants are required to 
subscribe to NSCC's designated communication method for pended 
transaction data and identify and regularly maintain contact persons 
authorized to receive notifications and review and confirm the validity 
of pended transactions (such persons being ``authorized approvers''); 
and (iii) clarify requirements concerning the form, manner and timing 
for such confirmations.
    The proposed rule change is discussed in detail below.
Background
    ETFs (referred to as ``index receipts'' in the NSCC Rules) are 
marketable securities that track stock indices, commodities, bonds, or 
baskets of assets. ETFs are listed on exchanges and are traded 
throughout the trading day. Shares of ETFs are created and redeemed in 
the primary market and are traded on listed exchanges in the secondary 
market. Each share of an ETF represents an undivided interest in the 
underlying assets of the ETF.
    NSCC facilitates central counterparty clearing and settlement of 
the creation and redemption of ETF shares in the primary market as well 
as clearing of ETF trades in the secondary market. The participants in 
the ETF primary market typically consist of the issuers of ETFs (``ETF 
Sponsors''), custodian banks (``ETF Agents,'' also referred to as 
``Index Receipt Agents'' in the NSCC Rules), and brokers/dealers that 
have agreements directly with ETF Sponsors to allow the brokers/dealers 
to place orders for the creation and redemption of ETF shares (referred 
to as ``authorized participants'').\6\ Both ETF Agents and

[[Page 69611]]

authorized participants are Members of NSCC.
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    \6\ ETF authorized participants are generally (1) broker/dealers 
that have authorized participant agreements with ETF Sponsors and/or 
(2) broker/dealers that are full-service Members pursuant to NSCC 
Rule 2 with an established ETF trading relationship with an ETF 
Agent that is representing the ETF. The proposed rule change 
described herein would be applicable to those authorized 
participants that are Members of NSCC.
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    In general, authorized participants create and redeem ETF shares 
from the ETF Sponsors in blocks called ``creation units.'' An 
authorized participant that purchases a creation unit of ETF shares 
delivers a ``basket'' of securities and other assets to the ETF Agent 
and then receives the creation unit of ETF shares in return for those 
assets. The redemption process is the reverse of the creation process; 
the authorized participant redeems a creation unit of ETF shares in 
exchange for a basket of securities and other assets. These creation 
and redemption baskets are referred to as ``trading baskets.'' NSCC 
supports the creation and redemption of ETFs on both an ``in-kind'' and 
``cash-only'' basis.\7\
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    \7\ ``In-kind'' ETF creations and redemptions represent an 
exchange of ETF shares for the component securities and other assets 
in the trading basket. ``Cash-only'' creations and redemptions 
represent an exchange of ETF shares for cash rather than for the 
component securities and other assets in the trading basket.
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    Under the NSCC Rules, Index Receipt Agents are authorized to submit 
creation and redemption transaction data on behalf of other Members 
(i.e., authorized participants).\8\ The obligations of the Member 
reflected in such transaction data are deemed to have been confirmed 
and acknowledged by each Member or designated by the Index Receipt 
Agent as a party thereto and to have been adopted by such Member.\9\ 
Pursuant to Section F.2. of Procedure II of the NSCC Rules, NSCC 
performs automated reasonability checks on creation and redemption 
transaction data submitted by Index Receipt Agents and may pend any 
transaction data that exceeds certain thresholds established by 
NSCC.\10\ If NSCC pends any transaction data that exceeds the pre-
established thresholds, NSCC notifies the Index Receipt Agent of any 
transaction data that NSCC has pended. The Index Receipt Agent must 
then provide confirmation, in the form and within the timeframe 
required by NSCC, that such pended transaction data should be accepted 
by NSCC. If the Index Receipt Agent fails to provide such confirmation, 
the pended transaction data is rejected.
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    \8\ See Section 4(b) of NSCC Rule 7 (Comparison and Trade 
Recording Operation), supra note 5.
    \9\ See id.
    \10\ See Section F.2 of Procedure II (Trade Comparison and 
Recording Service) of the NSCC Rules, supra note 5. See also 
Securities Exchange Act Release No. 82544 (Jan. 19, 2018), 83 FR 
3804 (Jan. 26, 2018) (SR-NSCC-2017-019) (``ETF Reasonability Check 
Approval Oder'').
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    NSCC's current reasonability checks pend any transactions (i) with 
a total settlement value of $15 billion or greater or (ii) when the 
variance between the net asset value (``NAV'') on the order and the 
prior day's closing NAV is 98% or greater in either direction.\11\ 
Pursuant to the NSCC Rules, NSCC has the authority to adjust thresholds 
from time to time and may consider feedback from its Members or market 
conditions when considering adjustments to such thresholds.\12\
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    \11\ See NSCC Important Notice dated Aug. 7, 2026, available at 
<a href="https://files.dtcc.com/download/assets/A9802/bf54a814957911f1b5c9a2e4b146feca">https://files.dtcc.com/download/assets/A9802/bf54a814957911f1b5c9a2e4b146feca</a>.
    \12\ See supra note 10.
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    NSCC's ETF reasonability checks were designed to provide ETF Agents 
with an opportunity to review and confirm certain potentially misvalued 
transactions that have been submitted to NSCC before such transactions 
are processed by NSCC and before the potentially misvalued transactions 
would be able to have an impact on, for example, a Member's daily 
Clearing Fund requirements.\13\ NSCC is now proposing to enhance this 
process to further minimize the risk of processing misvalued or 
erroneous transactions.
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    \13\ See ETF Reasonability Check Approval Oder at 3804-3805, 
supra note 10. NSCC calculates and collects Clearing Fund from its 
Members (i.e., a Required Fund Deposit) on a daily basis using a 
risk-based margin methodology. A Member's Required Fund Deposit may 
vary daily and is generally based upon the Member's trading activity 
and current unsettled positions. Each Member's Required Fund Deposit 
amount consists of a number of applicable components, each of which 
is calculated to address specific risks faced by NSCC, as identified 
within the NSCC Rules. See NSCC Rule 4 and Procedure XV of the NSCC 
Rules, supra note 5.
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Proposed Changes
    NSCC proposes to enhance its ETF reasonability check process by 
including the authorized participants that are Members of NSCC in the 
reasonability check process and clarifying certain obligations of Index 
Receipt Agents and such authorized participants with respect to this 
process. Specifically, NSCC proposes to modify the NSCC Rules to (i) 
include authorized participants in the ETF reasonability check process; 
(ii) clarify that Index Receipt Agents and authorized participants are 
required to subscribe to NSCC's designated communication method for 
pended transaction data and identify and regularly maintain authorized 
approvers for pended transactions; and (iii) clarify requirements 
concerning the form, manner and timing of confirmations of pended 
transactions.
Proposed Inclusion of Authorized Participants in the Reasonability 
Check Process
    NSCC proposes to enhance its ETF reasonability checks by including 
authorized participants that are Members in the reasonability check 
process. The proposed rule change would require that, in addition to 
Index Receipt Agents, authorized participants that are Members of NSCC 
also review and separately confirm pended transaction data prior to 
NSCC accepting and guaranteeing such transactions.
    To implement the proposed change, NSCC would modify the first 
paragraph of Section F.2 of Procedure II of the NSCC Rules to provide 
that NSCC would notify the Index Receipt Agent and authorized 
participant, rather than solely the Index Receipt Agent, of any 
transaction data that NSCC has pended. NSCC would also modify Section 
F.2 of Procedure II to state that the Index Receipt Agent and 
authorized participant should each review and confirm or reject any 
pended transaction data.
    As discussed above, NSCC's ETF create/redeem reasonability checks 
were designed to provide ETF Agents with an opportunity to review and 
confirm certain potentially misvalued transactions that have been 
submitted to NSCC before such transactions are processed by NSCC and 
before the potentially misvalued transactions would be able to have an 
impact on, for example, a Member's daily Clearing Fund 
requirements.\14\ The acceptance and guarantee of misvalued or 
erroneous transactions may also result in incorrect and potentially 
outsized liquidity obligations \15\ or settlement obligations for 
Members. The proposed rule change would include authorized participants 
that are NSCC Members in the reasonability check process and clarify 
that Index Receipt Agents and authorized participants should each 
affirmatively review and take action upon the notification of any 
pended transactions. NSCC believes that providing an opportunity for 
the authorized participant to the transaction to also review and 
confirm transaction

[[Page 69612]]

data that exceeds NSCC's reasonability check thresholds would reduce 
the likelihood of NSCC processing misvalued or erroneous transactions 
and mitigate the risks that may arise from incorrect Clearing Fund, 
liquidity or settlement obligations due to such misvalued or erroneous 
transactions.
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    \14\ See id.
    \15\ Under NSCC Rule 4A, NSCC collects additional cash deposits, 
on both a start-of-day and intraday basis, in the form of 
Supplemental Liquidity Deposits (``SLD'') to the Clearing Fund to 
cover the liquidity exposures presented by Members (whether 
individually or as part of an affiliated Member family) whose 
activity generates liquidity needs in excess of NSCC's then 
available qualifying liquid resources. SLD is typically collected 
during times of increased trading activity. See NSCC Rule 4A 
(Supplemental Liquidity Deposits), supra note 5.
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Proposed Clarifications Regarding Notifications and Contact Persons
    NSCC proposes to clarify in the NSCC Rules certain requirements for 
Index Receipt Agents and authorized participants to (i) subscribe to 
NSCC's designated communication method for notifying Members of pended 
creation or redemption transaction data and (ii) identify and regularly 
maintain contact persons with appropriate knowledge and authority to 
receive notifications and review and confirm the validity of pended 
transactions (i.e., ``authorized approvers'').
    To implement the proposed change, NSCC would add new rule text to 
Section F.2 of Procedure II of the NSCC Rules to provide that each 
Index Receipt Agent and authorized participant shall (i) subscribe to 
NSCC's designated communication method for pended transaction data and 
(ii) identify and regularly maintain, in such form and in such manner 
as required by NSCC, contact persons with appropriate knowledge and 
authority to receive notifications and review and confirm the validity 
of pended transactions (``authorized approver(s)'').
    Section 1.C. of Addendum B of the NSCC Rules requires that an 
applicant or Member of NSCC shall be qualified for membership if it is 
able to satisfactorily communicate with NSCC and fulfill anticipated 
commitments to and meet the operational requirements of NSCC with 
necessary promptness and accuracy and to conform to any condition and 
requirement that NSCC reasonably deems necessary for its 
protection.\16\ Under Section F.2 of Procedure II of the NSCC Rules, 
NSCC performs reasonability checks and notifies Index Receipt Agents 
(and as proposed, authorized participants) of any transaction data that 
NSCC has pended so that such transaction can be confirmed or rejected. 
The proposed rule change would clarify and codify specific expectations 
and obligations for Index Receipt Agents and authorized participants 
with respect to the receipt,\17\ review and confirmation of such pended 
transaction data. This includes ensuring that Index Receipt Agents and 
authorized participants are subscribed to necessary notifications and 
identifying to NSCC the authorized approvers \18\ who are responsible 
for reviewing and confirming such transactions \19\ to ensure that they 
can satisfactorily communicate with NSCC and fulfill anticipated 
commitments to and meet the operational requirements of NSCC with 
necessary promptness and accuracy in accordance with the NSCC Rules.
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    \16\ See Section 1.C. of Addendum B of the NSCC Rules, supra 
note 5.
    \17\ Under the proposed rule change, Index Receipt Agents and 
authorized participants would initially be required to subscribe to 
systemic alerts, including email notifications, for pended 
transactions. However, NSCC may develop enhanced capabilities for 
automated notifications and confirmations within its Member portals 
in the future.
    \18\ NSCC believes that an appropriate authorized approver 
should be a person with sufficient authority and knowledge of the 
transaction and the potential impact of such a transaction on the 
Index Receipt Agent or authorized participant's margin, liquidity 
and/or settlement obligations at NSCC.
    \19\ NSCC currently makes available to Members an automated 
trade relationship management system, which Members may use to 
establish Special Representative, Qualified Special Representative 
and Index Receipt Agent-authorized participant relationships. 
Members would initially be required to update and maintain their 
authorized approvers within the trade relationship management 
system.
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Proposed Clarifications Regarding Confirmation Requirements and 
Timeframes
    Finally, the proposed rule change would provide additional clarity 
regarding the requirements concerning the form, manner and timing of 
confirmations for pended ETF creation and redemption transactions. As 
discussed above, Section F.2 of Procedure II of the NSCC Rules 
currently requires Index Receipt Agents to provide confirmation of 
pended transactions ``in the form and within the timeframe required'' 
by NSCC. The procedure further provides that if the Index Receipt Agent 
fails to provide such confirmation, such pended transaction data will 
be rejected. Additionally, the procedure states that NSCC may, in its 
sole discretion, adjust thresholds from time to time and may consider 
feedback from its Members or market conditions.
    The proposed rule change would clarify that confirmations must be 
provided by authorized approvers at both the Index Receipt Agent and 
authorized participant, and that such confirmations must be in the form 
of a written confirmation and include supporting information explaining 
the validity of the transaction data in order for the pended 
transactions to be accepted by NSCC. In addition, the proposed rule 
change would clarify that NSCC maintains authority to periodically 
adjust both its reasonability check thresholds and the required 
timeframes for confirmations.
    To implement the proposed change, NSCC would modify Section F.2 of 
Procedure II of the NSCC Rules to provide that the ``authorized 
approver(s)'' at the Index Receipt Agent ``and authorized participant'' 
must ``each, separately,'' provide ``written'' confirmation, 
``including supporting information explaining the validity of the 
transaction data,'' in the form and within the timeframe required by 
NSCC, that such pended transaction data should be accepted by NSCC. 
NSCC would also modify the procedure to provide that if ``either the 
authorized approver'' at the Index Receipt Agent ``or authorized 
participant'' fails to provide such confirmation within the required 
timeframe, such pended transaction data will be rejected. In addition, 
NSCC would modify Section F.2 of Procedure II of the NSCC Rules to 
state that NSCC may from time to time ``adjust reasonability check 
thresholds and the required timeframes for confirmations, taking into 
consideration factors including but not limited to'' feedback from its 
Members or market conditions.
    NSCC currently runs several processing cycles for ETF creation and 
redemption transactions. These include a Same Day Settling (``SDS'') 
cycle that closes at approximately 1:30 p.m. Eastern Time, a Primary 
cycle that closes at approximately 8:45 p.m. Eastern Time, and a 
Supplemental cycle that closes at approximately 11:30 p.m. Eastern 
Time. SDS creation and redemption transactions are submitted for 
inclusion in the SDS cycle while T+1 and extended settlement creation 
and redemption transactions are submitted for inclusion in the Primary 
or Supplemental cycle. NSCC has established separate required 
timeframes for the confirmation of pended ETF creations/redemptions 
submitted for inclusion in the SDS cycle and pended ETF creation/
redemption transactions submitted for T+1 or extended settlement for 
inclusion in the Primary or Supplemental cycles. These required 
timeframes are designed to provide sufficient time for Index Receipt 
Agents (and authorized participants, as proposed herein) to review and 
confirm or reject transactions and for any confirmed transactions to be 
reviewed, processed and released from pending status by NSCC prior to 
the cutoff time of the relevant ETF processing cycle.\20\

[[Page 69613]]

The release of pended orders after Index Receipt Agent and authorized 
participant confirmation involves additional processing within NSCC 
and, in some cases, may require additional, escalated confirmations 
from the Index Receipt Agent or authorized participant to satisfy the 
confirmation requirements. As a result, ETF creation and redemption 
transactions that are (i) not confirmed by an authorized approver(s) 
and/or (ii) without sufficient supporting information explaining the 
validity of the transaction data within the required timeframes may not 
be released for processing and would need to be resubmitted.
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    \20\ The required timeframe for confirming any pended ETF 
creation or redemption transactions submitted for the SDS cycle is 
1:00 p.m. Eastern Time. The required timeframe for confirming any 
pended ETF creation or redemption transactions submitted for T+1 or 
extended settlement is 10:00 p.m. Eastern Time. NSCC would 
communicate any changes to these timeframes to its Members by 
Important Notice.
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    The proposed rule change would provide further clarity regarding 
the required form of confirmation and the applicability of such 
requirements and timeframes to the ultimate acceptance or rejection of 
pended ETF creation and redemption transactions. The proposed rule 
change would make clear to Index Receipt Agents and authorized 
participants that confirmation of a pended transaction must be provided 
by an authorized approver in writing, and that such confirmations must 
include supporting information explaining the validity of the 
transaction data,\21\ within the required timeframes, in order for a 
pended transaction to be accepted by NSCC.
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    \21\ Supporting information explaining the validity of the 
transaction data may include but is not limited to information 
concerning the business context, explanation or rationale supporting 
the validity and confirmation of the pended transaction.
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    NSCC believes the proposed rule change would improve Members' 
understanding of the reasonability check process and the requirements 
for confirming transactions so that valid pended ETF transactions can 
be timely confirmed and accepted by NSCC into their intended ETF 
processing cycle while mitigating the risk of NSCC processing misvalued 
or erroneous transactions.
Implementation Timeframe
    NSCC would implement the proposed rule change on November 23, 2026.
2. Statutory Basis
    NSCC believes that the proposed rule change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a registered clearing agency. Section 17A(b)(3)(F) of the 
Act \22\ requires that the rules of a clearing agency be designed to, 
among other things, promote the prompt and accurate clearance and 
settlement of securities transactions. NSCC believes the proposed rule 
change is consistent with the requirements of Section 17A(b)(3)(F) of 
the Act for the reasons stated below.
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    \22\ 15 U.S.C. 78q-1(b)(3)(F).
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    As described above, NSCC proposes to enhance its automated 
reasonability checks for the submission of ETF creation and redemption 
transactions by including authorized participants that are Members of 
NSCC in the reasonability check process and clarifying certain 
obligations of Index Receipt Agents and such authorized participants 
with respect to the reasonability check and confirmation process. The 
ETF create/redeem reasonability checks currently provide ETF Agents 
with an opportunity to review and confirm certain potentially misvalued 
or erroneous transactions that have been submitted to NSCC before such 
transactions are processed by NSCC. The proposed rule change would 
provide for an additional layer of review and confirmation by the 
authorized participants to the transactions and further reduce the 
likelihood of NSCC processing misvalued or erroneous transactions. In 
turn, this would further mitigate the risks that may arise from 
incorrect and potentially outsized Clearing Fund, liquidity or 
settlement obligations caused by misvalued or erroneous transactions. 
The proposed rule change would also clarify requirements concerning 
method of receipt of notifications for pended transactions and the 
form, manner and timing of confirmations needed to confirm pended 
transaction data to ensure that Index Receipt Agents and authorized 
participants can satisfactorily communicate with NSCC and fulfill 
anticipated commitments to and meet the operational requirements of 
NSCC with necessary promptness and accuracy, as required by NSCC's 
membership standards. NSCC believes the proposed rule change would 
improve Members' understanding of the reasonability check process and 
the requirements for confirming transactions, thereby improving the 
efficiency and effectiveness of the reasonability check process. Taken 
together, the proposed rule change would enhance the process for 
reviewing and confirming pended transactions so that such transactions 
can be promptly and accurately included in their intended ETF 
processing cycle while reducing the likelihood that misvalued or 
erroneous transactions are allowed to proceed through NSCC's clearing 
and settlement processes. NSCC therefore believes the proposed rule 
change would promote the prompt and accurate clearance and settlement 
of securities transactions in accordance with the requirements of 
Section 17A(b)(3)(F) of the Act.\23\
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    \23\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Act \24\ requires that the rules of the 
clearing agency do not impose any burden on competition not necessary 
or appropriate in furtherance of the Act. NSCC does not believe that 
the proposed rule change would impose a burden or otherwise have an 
impact on competition. The proposed rule change would not impact 
Members' general ability to engage in ETF creation or redemption 
transactions or to submit such transactions to NSCC for clearing and 
settlement. The proposed rule change would provide an opportunity for 
the authorized participant to the transaction to review and confirm 
transaction data that exceeds NSCC's reasonability check thresholds and 
reduce the likelihood of NSCC processing a misvalued or erroneous 
transaction for such Members. The proposed rule change would also 
provide further clarity regarding the required form, manner and timing 
of the confirmation of pended transactions. Section F.2 of Procedure II 
of the NSCC Rules currently requires Index Receipt Agents to provide 
confirmation of pended transactions ``in the form and within the 
timeframe required'' by NSCC. The proposed rule change would clarify 
that Index Receipt Agents and authorized participants must provide 
written confirmations by an authorized approver, including supporting 
information explaining the validity of the transaction data, within 
required timeframes, and that the failure to provide such confirmation 
within required timeframes will result in the ultimate rejection of 
such transactions. Finally, the proposed rule change would clarify and 
codify specific obligations for Index Receipt Agents and authorized 
participants to subscribe to necessary notifications and maintain 
authorized approver contacts for notifications and confirmations to 
ensure that they can satisfactorily communicate with NSCC and fulfill 
anticipated commitments to and meet the operational requirements of 
NSCC with necessary promptness and accuracy, as required by Section 
1.C. of Addendum B of the NSCC Rules. NSCC

[[Page 69614]]

believes the proposed rule change would improve Members' understanding 
of the reasonability check process and the requirements for confirming 
pended transactions and thereby improve the efficiency and 
effectiveness of NSCC's ETF reasonability checks. For these reasons, 
NSCC believes the proposed rule change would not impose any burden on 
competition not necessary or appropriate in furtherance of the Act.
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    \24\ 15 U.S.C. 78q-1(b)(3)(I).
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(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    NSCC has not received or solicited any written comments relating to 
this proposal. If any written comments are received by NSCC, they will 
be publicly filed as an 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/rules-regulations/how-submit-comment">www.sec.gov/rules-regulations/how-submit-comment</a>. General questions regarding the rule 
filing process or logistical questions regarding this filing should be 
directed to the Main Office of the Commission's Division of Trading and 
Markets at <a href="/cdn-cgi/l/email-protection#0e7a7c6f6a6760696f606a636f7c656b7a7d4e7d6b6d20696178"><span class="__cf_email__" data-cfemail="493d3b282d20272e28272d24283b222c3d3a093a2c2a672e263f">[email&#160;protected]</span></a> or 202-551-5777.
    NSCC reserves the right not to respond to any comments received.

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 \25\ and 
Rule 19b-4(f)(6) thereunder.\26\
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    \25\ 15 U.S.C. 78s(b)(3)(A).
    \26\ 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="http://www.sec.gov/rules/sro.shtml">www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#d2a0a7beb7ffb1bdbfbfb7bca6a192a1b7b1fcb5bda4"><span class="__cf_email__" data-cfemail="3b494e575e16585456565e554f487b485e58155c544d">[email&#160;protected]</span></a>. Please include 
File Number SR-NSCC-2026-012 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-NSCC-2026-012. 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="http://www.sec.gov/rules/sro.shtml">www.sec.gov/rules/sro.shtml</a>). Copies 
of the filing will be available for inspection and copying at the 
principal office of NSCC and on DTCC's website (<a href="http://www.dtcc.com/legal/sec-rule-filings">www.dtcc.com/legal/sec-rule-filings</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-NSCC-2026-
012 and should be submitted on or before November 25, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22457 Filed 11-3-26; 8:45 am]
BILLING CODE 8011-01-P


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