Board of Governors; Sunshine Act Meeting, 51503 [2020-18366]
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Federal Register / Vol. 85, No. 162 / Thursday, August 20, 2020 / Notices
Filing Authority: 39 U.S.C. 3642, 39 CFR
3040.130 through 3040.135, and 39 CFR
3035.105; Public Representative:
Christopher C. Mohr; Comments Due:
August 24, 2020.
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2020–18270 Filed 8–19–20; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Board of Governors; Sunshine Act
Meeting
TIME AND DATE:
August 15, 2020, at 3:00
p.m.
Washington, DC
STATUS: Closed.
ITEMS CONSIDERED:
1. Administrative Issues.
2. Strategic Issues.
On August 15, 2020, a majority of the
members of the Board of Governors of
the United States Postal Service voted
unanimously to hold and to close to
public observation a special meeting in
Washington, DC, via teleconference. The
Board determined that no earlier public
notice was practicable.
GENERAL COUNSEL CERTIFICATION: The
General Counsel of the United States
Postal Service has certified that the
meeting may be closed under the
Government in the Sunshine Act.
CONTACT PERSON FOR MORE INFORMATION:
Michael J. Elston, Secretary of the
Board, U.S. Postal Service, 475 L’Enfant
Plaza SW, Washington, DC 20260–1000.
Telephone: (202) 268–4800.
PLACE:
Michael J. Elston,
Secretary.
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–89560; File No. SR–FICC–
2020–009]
jbell on DSKJLSW7X2PROD with NOTICES
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Amendment No. 1 made clarifications and
corrections to the description of the proposed rule
change and Exhibits 3 and 5 of the filing, and these
clarifications and corrections have been
incorporated, as appropriate, into the description of
the proposed rule change in Item II below.
4 On July 30, 2020, FICC filed the proposed rule
change as an advance notice (SR–FICC–2020–802)
with the Commission pursuant to Section 806(e)(1)
of Title VIII of the Dodd-Frank Wall Street Reform
and Consumer Protection Act entitled the Payment,
Clearing, and Settlement Supervision Act of 2010,
12 U.S.C. 5465(e)(1), and Rule 19b–4(n)(1)(i) under
the Act, 17 CFR 240.19b–4(n)(1)(i). On August 13,
2020, FICC filed Amendment No. 1 to the advance
notice to make similar clarifications and corrections
to the advance notice. A copy of the advance notice,
as modified by Amendment No. 1 (hereinafter, the
‘‘Advance Notice’’) is available at https://
www.dtcc.com/legal/sec-rule-filings.aspx.
5 Capitalized terms not defined herein are defined
in the GSD Rules, available at https://
www.dtcc.com/∼/media/Files/Downloads/legal/
rules/ficc_gov_rules.pdf, and the MBSD Rules,
available at www.dtcc.com/∼/media/Files/
Downloads/legal/rules/ficc_mbsd_rules.pdf.
2 17
BILLING CODE 7710–12–P
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change, as
Modified by Amendment No. 1, To
Introduce the Margin Liquidity
Adjustment Charge and Include a BidAsk Risk Charge in the VaR Charges
August 14, 2020.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
18:01 Aug 19, 2020
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The Proposed Rule Change consists of
modifications to the FICC Government
Securities Division (‘‘GSD’’) Rulebook
(‘‘GSD Rules’’) and the FICC MortgageBacked Securities Division (‘‘MBSD’’)
Clearing Rules (‘‘MBSD Rules,’’ and
together with the GSD Rules, ‘‘Rules’’)
to introduce the Margin Liquidity
Adjustment (‘‘MLA’’) charge as an
additional component of GSD and
MBSD’s respective Clearing Funds, as
described in greater detail below.5
This Proposed Rule Change also
consists of modifications to the GSD
Rules, the MBSD Rules, the GSD
Methodology Document—GSD Initial
Market Risk Margin Model (‘‘GSD QRM
Methodology Document’’) and the
MBSD Methodology and Model
Operations Document—MBSD
Quantitative Risk Model (‘‘MBSD QRM
1 15
[FR Doc. 2020–18366 Filed 8–18–20; 11:15 am]
VerDate Sep<11>2014
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on July 30,
2020, Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) proposed rule change
SR–FICC–2020–009. On August 13,
2020, FICC filed Amendment No. 1 to
the proposed rule change, to make
clarifications and corrections to the
proposed rule change.3 The proposed
rule change, as modified by Amendment
No. 1 (hereinafter, the ‘‘Proposed Rule
Change’’), is described in Items I, II and
III below, which Items have been
prepared primarily by the clearing
agency.4 The Commission is publishing
this notice to solicit comments on the
Proposed Rule Change from interested
persons.
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51503
Methodology Document,’’ and together
with the GSD QRM Methodology
Document, the ‘‘QRM Methodology
Documents’’) in order to (i) enhance the
calculation of the VaR Charges of GSD
and MBSD to include a bid-ask spread
risk charge, and (ii) make necessary
technical changes to the QRM
Methodology Documents in order to
implement this proposed change.
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
FICC is proposing to enhance the
methodology for calculating Required
Fund Deposits to the respective Clearing
Funds of GSD and MBSD by (1)
introducing a new component, the MLA
charge, which would be calculated to
address the risk presented to FICC when
a Member’s portfolio contains large net
unsettled positions in a particular group
of securities with a similar risk profile
or in a particular transaction type
(referred to as ‘‘asset groups’’),6 and (2)
enhancing the calculation of the VaR
Charges of GSD and MBSD by including
a bid-ask spread risk charge, as
described in more detail below.7
FICC is also proposing to make certain
technical changes to the QRM
Methodology Documents, as described
in below, in order to implement the
proposed enhancement to the VaR
Charges.
(i) Overview of the Required Fund
Deposits and the Clearing Funds
As part of its market risk management
strategy, FICC manages its credit
6 References herein to ‘‘Members’’ refer to GSD
Netting Members and MBSD Clearing Members, as
such terms are defined in the Rules. References
herein to ‘‘net unsettled positions’’ refer to, with
respect to GSD, Net Unsettled Positions, as such
term is defined in GSD Rule 1 (Definitions) and,
with respect to MBSD, refers to the net positions
that have not yet settled. Supra note 4.
7 The results of a study of the potential impact of
adopting the proposed changes have been provided
to the Commission.
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[Federal Register Volume 85, Number 162 (Thursday, August 20, 2020)]
[Notices]
[Page 51503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18366]
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POSTAL SERVICE
Board of Governors; Sunshine Act Meeting
TIME AND DATE: August 15, 2020, at 3:00 p.m.
PLACE: Washington, DC
STATUS: Closed.
ITEMS CONSIDERED:
1. Administrative Issues.
2. Strategic Issues.
On August 15, 2020, a majority of the members of the Board of
Governors of the United States Postal Service voted unanimously to hold
and to close to public observation a special meeting in Washington, DC,
via teleconference. The Board determined that no earlier public notice
was practicable.
GENERAL COUNSEL CERTIFICATION: The General Counsel of the United States
Postal Service has certified that the meeting may be closed under the
Government in the Sunshine Act.
CONTACT PERSON FOR MORE INFORMATION: Michael J. Elston, Secretary of
the Board, U.S. Postal Service, 475 L'Enfant Plaza SW, Washington, DC
20260-1000. Telephone: (202) 268-4800.
Michael J. Elston,
Secretary.
[FR Doc. 2020-18366 Filed 8-18-20; 11:15 am]
BILLING CODE 7710-12-P
