SEC Proposes Enhanced Regulatory Framework For Covered Clearing Agencies

On September 28 2016 the Securities and Exchange Commission (SEC) voted to establish enhanced standards for the operation and governance of securities clearing agencies that are deemed systemically important by the Financial Stability Oversight Council or that are involved in complex transactions, such as security-based swaps.¹

Covered securities clearing agencies are required to adopt specific enhancements relating to financial risk management, governance, recovery planning, operations and disclosure to market participants. The rules, if adopted, will come into effect 60 days after the final rule is published in the Federal Register and covered security clearing agencies will be required to comply with the rule's requirements within 120 days thereafter.