SEC Adopts Enhanced Regulatory Framework For Securities Clearing Agencies

The SEC voted to adopt final rules to require securities clearing agencies that are deemed systemically important or that are involved in complex transactions ("covered clearing agencies") to "establish, implement, maintain, and enforce policies and procedures reasonably designed to address all major aspects of [their] operations, including [their] governance, risk management (including financial, business, and operational risks), access requirements, and settlement and depository systems." In addition, the SEC voted to propose the application of these enhanced standards to all SEC-registered central counterparties.

The adopted rules apply to SEC-registered securities clearing agencies that have been designated as systemically important by the Financial Stability Oversight Council ("FSOC"). The rules require a covered clearing agency to have policies and procedures that, among other things: