Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Clearing Agency Model Risk Management Framework, 38163-38166 [2021-15189]
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Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices
proceedings to determine whether to
disapprove, the proposed rule change
(File No. SR–CboeBZX–2021–039).
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92388; File No. SR–
CboeBZX–2021–039]
Self-Regulatory Organizations; Cboe
BZX Exchange, Inc.; Notice of
Designation of a Longer Period for
Commission Action on a Proposed
Rule Change To List and Trade Shares
of the Wise Origin Bitcoin Trust Under
BZX Rule 14.11(e)(4), CommodityBased Trust Shares
July 13, 2021.
lotter on DSK11XQN23PROD with NOTICES1
On May 10, 2021, Cboe BZX
Exchange, Inc. (‘‘BZX’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 a proposed rule change to
list and trade shares of the Wise Origin
Bitcoin Trust under BZX Rule
14.11(e)(4), Commodity-Based Trust
Shares. The proposed rule change was
published for comment in the Federal
Register on June 1, 2021.3 The
Commission has received comments on
the proposed rule change.4
Section 19(b)(2) of the Act 5 provides
that within 45 days of the publication of
notice of the filing of a proposed rule
change, or within such longer period up
to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission shall either
approve the proposed rule change,
disapprove the proposed rule change, or
institute proceedings to determine
whether the proposed rule change
should be disapproved. The 45th day
after publication of the notice for this
proposed rule change is July 16, 2021.
The Commission is extending this 45day time period.
The Commission finds that it is
appropriate to designate a longer period
within which to take action on the
proposed rule change so that it has
sufficient time to consider the proposed
rule change and the comments received.
Accordingly, pursuant to Section
19(b)(2) of the Act,6 the Commission
designates August 30, 2021, as the date
by which the Commission shall either
approve or disapprove, or institute
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91994
(May 25, 2021), 86 FR 29321 (June 1, 2021).
4 Comments received on the proposed rule change
are available at: https://www.sec.gov/comments/srcboebzx-2021-039/srcboebzx2021039.htm.
5 15 U.S.C. 78s(b)(2).
6 Id.
2 17
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.7
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–15192 Filed 7–16–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92381; File No. SR–NSCC–
2021–008]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change To Amend the Clearing
Agency Model Risk Management
Framework
July 13, 2021.
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 July 7,
2021, 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)(1) thereunder.4 The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
The proposed rule change clarifies the
scope of the Clearing Agency Model
Risk Management Framework
(‘‘Framework’’) of NSCC and its
affiliates The Depository Trust Company
(‘‘DTC’’) and Fixed Income Clearing
Corporation (‘‘FICC,’’ and together with
NSCC, the ‘‘CCPs,’’ and the CCPs
together with DTC, the ‘‘Clearing
Agencies’’).5 The Framework has been
CFR 200.30–3(a)(31).
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)(1).
5 The Framework sets forth the model risk
management practices that the Clearing Agencies
follow to identify, measure, monitor, and manage
the risks associated with the design, development,
implementation, use, and validation of quantitative
models. The Framework is filed as a rule of the
Clearing Agencies. See Securities Exchange Act
PO 00000
7 17
1 15
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adopted by the Clearing Agencies to
support their compliance with Rule
17Ad–22(e) (the ‘‘Covered Clearing
Agency Standards’’).6 The proposed rule
change 7 would amend the Framework
to clarify that the Framework applies
solely to models 8 utilized by the
Clearing Agencies that are subject to the
model risk management requirements
set forth in Rule 17Ad–22(e)(4), (e)(6),
and (e)(7) under the Act.9 The proposed
rule change also makes other technical
and clarifying changes to the text, as
more fully described below.
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 proposed rule change clarifies the
scope of the Framework to make clear
that it applies solely to models that are
subject to Rule 17Ad–22(e)(4), (e)(6),
and (e)(7).10 The proposed rule change
also makes other technical and
clarifying changes to the text.
Release No. 81485 (August 25, 2017), 82 FR 41433
(August 31, 2017) (File Nos. SR–DTC–2017–008;
SR–FICC–2017–014; SR–NSCC–2017–008) (‘‘2017
Notice’’) and Securities Exchange Act Release No.
88911 (May 20, 2020), 85 FR 31828 (May 27, 2020)
(File Nos. SR–DTC–2020–008; SR–FICC–2020–004;
SR–NSCC–2020–008) (‘‘2020 Notice’’) (collectively,
the MRMF Filings’’).
6 17 CFR 240.17Ad–22(e). Each of DTC, NSCC
and FICC is a ‘‘covered clearing agency’’ as defined
in Rule 17Ad–22(a)(5) and must comply with Rule
17Ad–22(e).
7 Amending the Framework does not require any
changes to the Rules, By-Laws and Organization
Certificate of DTC, the Rulebook of the Government
Securities Division of FICC, the Clearing Rules of
the Mortgage-Backed Securities Division of FICC, or
the Rules & Procedures of NSCC, because the
Framework is a standalone document. See MRMF
Filings, supra note 5.
8 See infra note 16 for the definition of ‘‘model’’
as adopted by the Clearing Agencies pursuant to the
Framework.
9 17 CFR 240.17Ad–22(e)(4), (e)(6) and (e)(7).
References to Rule 17Ad–22(e)(6) and compliance
therewith apply to the CCPs only and do not apply
to DTC.
10 Id.
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Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices
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Background
The Framework is maintained by the
Clearing Agencies to support their
compliance with the requirements of the
Covered Clearing Agency Standards
relating to model risk management. The
Covered Clearing Agency Standards
require that the Clearing Agencies take
a variety of steps to manage the models
that they employ in identifying,
measuring, monitoring, and managing
their respective credit exposures and
liquidity risks, including that the
Clearing Agencies conduct daily
backtesting of model performance,
periodic sensitivity analyses of models,
and annual validation of models.11
The Framework outlines the
applicable regulatory requirements
described above, describes the risks that
the Clearing Agencies’ model risk
management program are designed to
mitigate, and sets forth specific model
risk management practices and
requirements adopted by the Clearing
Agencies in order to ensure compliance
with the Covered Clearing Agency
Standards. These practices and
requirements include, among other
things, the maintenance of a model
inventory, a process for rating model
materiality and complexity, processes
for performing model validations and
resolving findings identified during
model validation, and processes for
model performance monitoring,
including backtesting and sensitivity
analyses. The Framework also describes
applicable internal ownership and
governance requirements.12
The Depository Trust & Clearing
Corporation (‘‘DTCC’’), the parent
company of the Clearing Agencies, has
established a robust model risk
management program, which applies to
models employed across multiple
business lines and corporate
functions.13 DTCC may implement
changes in its model risk management
program from time to time, some of
which changes may impact only lowerrisk, lower-materiality models that are
not subject to the specific model risk
management requirements of the
Covered Clearing Agency Standards.
The Clearing Agencies previously
adopted changes to the Framework in
connection with proposed
enhancements to their model risk
management program, which rule
11 Id.
12 See MRMF Filings, supra note 5, for additional
information on the contents of the Framework.
13 DTCC operates on a shared services model with
respect to the Clearing Agencies. Most corporate
functions are established and managed on an
enterprise-wide basis pursuant to intercompany
agreements under which it is generally DTCC that
provides a relevant service to a Clearing Agency.
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changes also deleted the defined term
‘‘Clearing Agency Model’’ on grounds
that the Framework related solely to
models of the Clearing Agencies, and it
was unnecessary to use the modifier
‘‘Clearing Agency’’.14 In view of
continued expansion of DTCC’s model
risk management program, however, the
Clearing Agencies desire to avoid any
doubt as to the applicability of the
Framework to specific models, and
therefore propose to adopt further
clarifying changes to the text of the
Framework.
Proposed Rule Change
Section 1 (Executive Summary) of the
Framework recites the regulatory
requirements applicable to model risk
management for credit risk models,
liquidity risk models, and margin
models that are set forth in the Covered
Clearing Agency Standards. The
proposed rule change clarifies the
Framework’s scope by (i) amending
Section 1 of the Framework to add a
sentence that states that the Framework
supports the Clearing Agencies in
complying with their rule filing
requirements under Rule 19b–4 15
because the Framework itself is a rule
that governs the Clearing Agencies’
management of their credit risk, margin,
and liquidity risk management models
and (ii) adding a footnote that states that
only those models that satisfy the
definition of ‘‘model’’ set forth in
Section 3.1 of the Framework, and that
support the Clearing Agencies’
compliance with the Standards, are
models subject to the Framework and,
in contrast, models of the Clearing
Agencies that would satisfy the
definition of ‘‘model’’ as set forth under
Section 3.1 of the Framework, but do
not support the Clearing Agencies’
compliance with the Standards, are not
subject to the Framework.16 In this
2020 Notice, supra note 5.
CFR 240.19b–4.
16 Pursuant to Section 3.1 of the Framework, the
Clearing Agencies have adopted the following
definition of ‘‘model’’: ‘‘[M]odel’’ refers to a
quantitative method, system, or approach that
applies statistical, economic, financial, or
mathematical theories, techniques, and
assumptions to process input data into quantitative
estimates. A ‘‘model’’ consists of three components:
An information input component, which delivers
assumptions and data to the model; a processing
component, which transforms inputs into estimates;
and a reporting component, which translates the
estimates into useful business information. The
definition of ‘model’ also covers quantitative
approaches whose inputs are partially or wholly
qualitative or based on expert judgment, provided
that the output is quantitative in nature. See 2017
Notice, supra note 5. See also Supervisory
Guidance on Model Risk Management, SR Letter
11–7 Attachment, dated April 4, 2011, issued by the
Board of Governors of the Federal Reserve System
and the Office of the Comptroller of the Currency,
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14 See
15 17
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regard, the proposed rule change would
also amend certain references to models
in subsequent sections to refer to
models ‘‘subject to this Framework’’.
Specifically, the text ‘‘subject to this
Framework’’ would modify references to
models in (i) Section 3.1 with respect to
(a) models to be added to the Clearing
Agencies’ model inventory and (b)
models subject to validation as set forth
in Section 2,17 (ii) Section 3.2 (Model
Materiality and Complexity) with
respect to the assignment of complexity
ratings to models,18 (iii) Section 3.3
(Full Model Validation) with respect to
a requirement relating to the validation
of new models,19 (iv) Section 3.4
(Periodic Model Validation) with
respect to periodic validation of
models,20 (v) Section 3.5 (Model Change
Management) with respect to models
that require changes in either structure
or technique, (vi) Section 3.7
(Resolution of Model Validation
Findings) with respect to internal
tracking and reporting relating to model
validations 21 and (vii) Section 4.2
(Escalation) 22 with respect to internal
escalation of model performance
monitoring oversight concerns.23
available at https://www.federalreserve.gov/
supervisionreg/srletters/sr1107a1.pdf, page 3.
17 Also in this regard, the applicable sentence that
this reference would be added to would also replace
the words ‘‘All models (including, without
limitation, all credit risk models margin models,
and liquidity risk models)’’ with ‘‘All models.’’ The
described reference to ‘‘subject to this Framework’’
would be added after the newly added text ‘‘All
models.’’
18 In this instance, the new text ‘‘subject to this
Framework’’ would be preceded with the added
text ‘‘that is’’ so that the reference to ‘‘model’’ in
this context reads ‘‘. . . model that is subject to this
Framework . . . .’’
19 Similar to the prior reference from Section 3.1,
the added reference to ‘‘subject to this Framework’’
in Section 3.3 would be preceded with the added
text ‘‘that is’’ so that the reference to ‘‘model’’ in
this context reads ‘‘. . . new model that is subject
to this Framework . . . .’’
20 Similar to the prior reference from Section 3.3,
the added reference to ‘‘subject to this Framework
in Section 3.4 would be followed with the added
text ‘‘that is’’ so that the reference to ‘‘model’’ in
this context reads ‘‘. . . model subject to this
Framework that is . . . .’’
21 The reference to model in this instance also
refers to a new model or a model change and the
applicable text reads ‘‘. . . new model or model
change . . . .’’ To improve the flow of the text, the
words ‘‘or model change’’ would be deleted and ‘‘or
changed’’ would be added after ‘‘new.’’ Also, the
addition of ‘‘subject to this Framework’’ would be
preceded by newly added words ‘‘that is’’ so that
the reference to ‘‘model’’ in this case refers to ‘‘. . .
new or changed model that is subject to this
Framework . . . .’’
22 In this instance the existing text does not use
the word ‘‘model’’ even though it is referencing the
escalation of issues relating to models. The
applicable sentence currently begins with ‘‘[a]ll
model performance monitoring oversight concerns
. . . .’’
23 See MRMF Filings, supra note 5, for additional
information on the contents of these sections, and
the Framework in general.
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The proposed rule change makes
several other technical and clarifying
changes to the text of the Framework. It
revises a sentence in Section 1 that
currently states ‘‘FICC/GSD, FICC/
MBSD, and NSCC are each a ‘‘Central
Counterparty’’ or ‘‘CCP’’ and are
collectively referred to as the ‘‘Central
Counterparties’’ or ‘‘CCPs’’. The
proposed revisions to this sentence (i)
changes the first reference to ‘‘Central
Counterparty’’ from a capitalized term
to an uncapitalized term, (ii) deletes the
second reference to this term in this
sentence (shown as ‘‘Central
Counterparties’’) such that ‘‘CCP’’ will
be the sole defined term used to
described central counterparties, and
(iii) adds ‘‘below’’ after the words
‘‘referred to.’’
It defines a term for ‘‘Clearing Agency
Model Documentation’’ to reduce the
repetition of listing numerous
documents that are subordinate to the
Framework with respect to model risk
management. The proposed rule change
updates the titles of certain Clearing
Agency Model Documentation.24 It also
consolidates a reference to
supplementary model risk
documentation applicable to the
Clearing Agencies that may be created
from time to time into the newly
defined term ‘‘Clearing Agency Model
Documentation’’. The proposed rule
change adds this defined term to three
sentences in Section 1 to replace
references in the section to specifically
named model documentation and
supplemental model documentation. It
also consolidates two references that
respectively provide that the
documentation that is specifically
named in the Framework, and the
supplemental documentation that may
be created, are subordinate to the
Framework and are reasonably and
fairly implied by the Framework, into
one such reference with respect to
Clearing Agency Model Documentation.
The proposed rule change updates
prior references to the Model Validation
& Control unit (defined in the
Framework as ‘‘MVC’’), the name of
which has recently changed, to instead
refer generically to the unit within the
24 Section 1 provides that this documentation
each of which may be updated, amended, retired,
or replaced from time to time. In this regard, the
text would be updated to reflect that (i) ‘‘DTCC
Model Validation Procedures’’ has been changed to
‘‘Model Validation Procedures’’, (ii) ‘‘DTCC Model
Performance Monitoring Procedures’’ has been
changed to ‘‘DTCC Model Performance Standards &
Policy’’, and (iii) ‘‘DTCC Backtesting Procedures’’
has been changed to ‘‘Clearing Agency Backtesting
Procedures.’’ Also, the ‘‘Quantitative Risk
Management Policy’’ and ‘‘Quantitative Risk
Management Monitoring Procedures’’ would be
added as supporting documents.
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Clearing Agencies’ Group Chief Risk
office that performs second-line model
risk management functions. This generic
reference to this unit would be defined
as ‘‘MRM’’ in the Framework and,
therefore, all references to ‘‘MVC’’
would be replaced with ‘‘MRM’’
beginning from the first use of ‘‘MVC’’
in Section 3, and with respect to all
subsequent references to ‘‘MVC,’’
through and including the last reference
to ‘‘MVC’’ in the second to last
paragraph of Section 5.
In addition, a sentence in Section 3.1
that states ‘‘[a]ll Model Validations are
performed by MVC, which consists of
qualified persons who are free from
influence from the persons responsible
for the development or operation of the
models being validated, as required by
the risk management standards
described in Section 2[.]’’ would be
revised to delete the clause ‘‘as required
by the risk management standards
described in Section 2’’ and the comma
immediately preceding that clause
would be deleted. This clause is
unnecessary because it follows in a
paragraph that already makes reference
to the referenced ‘‘risk management
standards’’ in a similar context.
Also, a sentence in Section 3.8
describes that as part of model
performance monitoring, on at least a
monthly basis, a sensitivity analysis is
performed on each CCP’s margin
models, the key parameters and
assumptions for backtesting of such
margin models are reviewed, and
modifications will be considered to
ensure the backtesting practices are
appropriate for determining the
adequacy of such CCP’s margin
resources. This sentence ends with a
clause that states ‘‘which Quantitative
Risk Management (‘‘QRM’’) performs as
required by the risk management
standards described in Section 2.’’ The
reference to the requirements of Section
2 is unnecessary when naming the
group that performs these tasks.
Therefore, Clearing Agencies will delete
the clause referencing these
requirements, and a comma that
proceeds it, from the sentence in
Section 3.8 described immediately
above, and add a new sentence, to
follow the existing sentence, stating that
Quantitative Risk Management performs
these functions, without referencing the
requirements described in Section 2.
The new sentence will read
‘‘Quantitative Risk Management
(‘‘QRM’’) performs these functions.’’ In
addition, in this same sentence, the
proposed rule change will delete ‘‘a’’
that currently appears before the words
‘‘sensitivity analysis’’.
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38165
The proposed rule change also makes
certain technical and grammatical
corrections, including elimination of
unused or misapplied defined terms.
The proposed rule change deletes the
text ‘‘in compliance with applicable
legal requirements’’ from sentence in
Section 1 (Executive Summary) that
states that Section 3 of the Framework
describes key aspects of the Framework
in terms of the manner in which the
Clearing Agencies identify, measure,
monitor, and manage model risk.
Referring to compliance with applicable
legal requirements with respect to an
individual section is unnecessary,
because Section 1 contains a separate
reference indicating that the Framework
itself is designed to support compliance
with the legal requirements set forth
under the Covered Clearing Agency
Standards relating to model risk
management. The proposed rule change
would also modify the beginning of the
sentence described immediately above
that currently includes the text ‘‘Section
3 describes key aspects of the
Framework in terms of the manner in
which the Clearing Agencies identify,
measure, monitor, and manage model
risk . . .’’ to delete the words
‘‘Framework in terms of the’’ to simplify
the text by deleting a clause that does
not enhance the meaning of the
sentence.
Finally, the proposed rule change
replaces a reference to ‘‘quantitative
models’’ to ‘‘models’’ in the Executive
Summary under Section 1. This use of
‘‘quantitative’’ is redundant because, by
definition, models covered by the
Framework are quantitative in nature.25
2. Statutory Basis
NSCC believes that the proposed rule
change is consistent with Section
17A(b)(3)(F) of the Act,26 as well as Rule
17Ad–22(e)(4), (e)(6), and (e)(7)
thereunder,27 for the reasons described
below.
Section 17A(b)(3)(F) of the Act 28
requires, inter alia, that the rules of a
clearing agency be designed to assure
the safeguarding of securities and funds
which are in the custody or control of
the clearing agency or for which it is
responsible. As described above, the
25 As noted above, pursuant to Section 3.1 of the
Framework, the term ‘‘model’’ refers to a
quantitative method, system, or approach that
applies statistical, economic, financial, or
mathematical theories, techniques, and
assumptions to process input data into quantitative
estimates.
26 15 U.S.C. 78q–1(b)(3)(F).
27 17 CFR 240.17Ad–22(e)(4), (e)(6) and (e)(7).
References to Rule 17Ad–22(e)(6) and compliance
therewith apply to the CCPs only and do not apply
to DTC.
28 15 U.S.C. 78q–1(b)(3)(F).
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Framework describes the process by
which the Clearing Agencies identify,
measure, monitor, and manage the risks
associated with the design,
development, implementation, use, and
validation of quantitative models. The
quantitative models covered by the
Framework are utilized by the Clearing
Agencies, as applicable, to manage risks
associated with the safeguarding of
securities and funds that are in their
custody or control or for which they are
responsible, and the proposed rule
change clarifies the applicability of the
Framework to specific models, thereby
better supporting the ability of the
Clearing Agencies to perform these
important risk management functions
and comply with other regulatory
requirements, including Rule 19b–4.
Rule 17Ad–22(e)(4), (e)(6), and
(e)(7) 29 requires, inter alia, that a
covered clearing agency establish,
implement, maintain and enforce
written policies and procedures
reasonably designed to manage risks
associated with its credit risk
management models, margin models,
and liquidity risk management models,
as applicable. As discussed above, the
proposed rule change clarifies the
applicability of the Framework to such
types of models, thereby better
supporting the ability of the Clearing
Agencies to comply with these
requirements. Therefore, the Clearing
Agencies believe that the proposed
changes to the Framework are consistent
with Rule 17Ad–22(e)(4), (e)(6), and
(e)(7).30
(B) Clearing Agency’s Statement on
Burden on Competition
The Clearing Agencies do not believe
that the proposed rule change would
have any impact, or impose any burden,
on competition because the proposed
rule change simply clarifies the scope
and administration of the Framework by
the Clearing Agencies and would not
effectuate any changes to the Clearing
Agencies’ model risk management tools
as they currently apply to their
respective Members or Participants.
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(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants, or Others
The Clearing Agencies have not
solicited or received any written
comments relating to this proposal. The
Clearing Agencies will notify the
29 17 CFR 240.17Ad–22(e)(4), (e)(6) and (e)(7).
References to Rule 17Ad–22(e)(6) and compliance
therewith apply to the CCPs only and do not apply
to DTC.
30 Id.
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Commission of any written comments
received by the Clearing Agencies.
III. Date of Effectiveness of the
Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become
effective pursuant to Section
19(b)(3)(A) 31 of the Act and paragraph
(f) 32 of Rule 19b–4 thereunder. 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
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
NSCC–2021–008 on the subject line.
Paper Comments
• 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–2021–008. 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 (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
PO 00000
31 15
32 17
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f).
Frm 00180
Fmt 4703
Sfmt 4703
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of NSCC and on DTCC’s website
(https://dtcc.com/legal/sec-rulefilings.aspx). All comments received
will be posted without change. Persons
submitting comments are cautioned that
we do not redact or edit personal
identifying information from comment
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NSCC–
2021–008 and should be submitted on
or before August 9, 2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.33
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–15189 Filed 7–16–21; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–92398; File No. SR–IEX–
2021–06]
Self-Regulatory Organizations;
Investors Exchange LLC; Notice of
Filing of Amendment No. 1 and Order
Granting Accelerated Approval of a
Proposed Rule Change, as Modified by
Amendment No. 1, To Revise the
Definitions of Retail Orders and Retail
Liquidity Provider Orders and
Disseminate a Retail Liquidity Identifier
Under the IEX Retail Price
Improvement Program
July 13, 2021.
I. Introduction
On April 1, 2021, the Investors
Exchange LLC (‘‘IEX’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘SEC’’ or ‘‘Commission’’),
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a
proposed rule change to enhance its
Retail Price Improvement Program for
the benefit of retail investors. The
proposed rule change was published for
comment in the Federal Register on
April 15, 2021.3 On May 26, 2021,
pursuant to Section 19(b)(2) of the Act,4
33 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
3 See Securities Exchange Act Release No. 91523
(April 9, 2021), 86 FR 19912 (April 15, 2021)
(‘‘Notice’’).
4 15 U.S.C. 78s(b)(2).
1 15
E:\FR\FM\19JYN1.SGM
19JYN1
]]>Agencies
[Federal Register Volume 86, Number 135 (Monday, July 19, 2021)]
[Notices]
[Pages 38163-38166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15189]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-92381; File No. SR-NSCC-2021-008]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of Proposed
Rule Change To Amend the Clearing Agency Model Risk Management
Framework
July 13, 2021.
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 July 7, 2021, 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)(1) 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)(1).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change
The proposed rule change clarifies the scope of the Clearing Agency
Model Risk Management Framework (``Framework'') of NSCC and its
affiliates The Depository Trust Company (``DTC'') and Fixed Income
Clearing Corporation (``FICC,'' and together with NSCC, the ``CCPs,''
and the CCPs together with DTC, the ``Clearing Agencies'').\5\ The
Framework has been adopted by the Clearing Agencies to support their
compliance with Rule 17Ad-22(e) (the ``Covered Clearing Agency
Standards'').\6\ The proposed rule change \7\ would amend the Framework
to clarify that the Framework applies solely to models \8\ utilized by
the Clearing Agencies that are subject to the model risk management
requirements set forth in Rule 17Ad-22(e)(4), (e)(6), and (e)(7) under
the Act.\9\ The proposed rule change also makes other technical and
clarifying changes to the text, as more fully described below.
---------------------------------------------------------------------------
\5\ The Framework sets forth the model risk management practices
that the Clearing Agencies follow to identify, measure, monitor, and
manage the risks associated with the design, development,
implementation, use, and validation of quantitative models. The
Framework is filed as a rule of the Clearing Agencies. See
Securities Exchange Act Release No. 81485 (August 25, 2017), 82 FR
41433 (August 31, 2017) (File Nos. SR-DTC-2017-008; SR-FICC-2017-
014; SR-NSCC-2017-008) (``2017 Notice'') and Securities Exchange Act
Release No. 88911 (May 20, 2020), 85 FR 31828 (May 27, 2020) (File
Nos. SR-DTC-2020-008; SR-FICC-2020-004; SR-NSCC-2020-008) (``2020
Notice'') (collectively, the MRMF Filings'').
\6\ 17 CFR 240.17Ad-22(e). Each of DTC, NSCC and FICC is a
``covered clearing agency'' as defined in Rule 17Ad-22(a)(5) and
must comply with Rule 17Ad-22(e).
\7\ Amending the Framework does not require any changes to the
Rules, By-Laws and Organization Certificate of DTC, the Rulebook of
the Government Securities Division of FICC, the Clearing Rules of
the Mortgage-Backed Securities Division of FICC, or the Rules &
Procedures of NSCC, because the Framework is a standalone document.
See MRMF Filings, supra note 5.
\8\ See infra note 16 for the definition of ``model'' as adopted
by the Clearing Agencies pursuant to the Framework.
\9\ 17 CFR 240.17Ad-22(e)(4), (e)(6) and (e)(7). References to
Rule 17Ad-22(e)(6) and compliance therewith apply to the CCPs only
and do not apply to DTC.
---------------------------------------------------------------------------
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 proposed rule change clarifies the scope of the Framework to
make clear that it applies solely to models that are subject to Rule
17Ad-22(e)(4), (e)(6), and (e)(7).\10\ The proposed rule change also
makes other technical and clarifying changes to the text.
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
[[Page 38164]]
Background
The Framework is maintained by the Clearing Agencies to support
their compliance with the requirements of the Covered Clearing Agency
Standards relating to model risk management. The Covered Clearing
Agency Standards require that the Clearing Agencies take a variety of
steps to manage the models that they employ in identifying, measuring,
monitoring, and managing their respective credit exposures and
liquidity risks, including that the Clearing Agencies conduct daily
backtesting of model performance, periodic sensitivity analyses of
models, and annual validation of models.\11\
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\11\ Id.
---------------------------------------------------------------------------
The Framework outlines the applicable regulatory requirements
described above, describes the risks that the Clearing Agencies' model
risk management program are designed to mitigate, and sets forth
specific model risk management practices and requirements adopted by
the Clearing Agencies in order to ensure compliance with the Covered
Clearing Agency Standards. These practices and requirements include,
among other things, the maintenance of a model inventory, a process for
rating model materiality and complexity, processes for performing model
validations and resolving findings identified during model validation,
and processes for model performance monitoring, including backtesting
and sensitivity analyses. The Framework also describes applicable
internal ownership and governance requirements.\12\
---------------------------------------------------------------------------
\12\ See MRMF Filings, supra note 5, for additional information
on the contents of the Framework.
---------------------------------------------------------------------------
The Depository Trust & Clearing Corporation (``DTCC''), the parent
company of the Clearing Agencies, has established a robust model risk
management program, which applies to models employed across multiple
business lines and corporate functions.\13\ DTCC may implement changes
in its model risk management program from time to time, some of which
changes may impact only lower-risk, lower-materiality models that are
not subject to the specific model risk management requirements of the
Covered Clearing Agency Standards. The Clearing Agencies previously
adopted changes to the Framework in connection with proposed
enhancements to their model risk management program, which rule changes
also deleted the defined term ``Clearing Agency Model'' on grounds that
the Framework related solely to models of the Clearing Agencies, and it
was unnecessary to use the modifier ``Clearing Agency''.\14\ In view of
continued expansion of DTCC's model risk management program, however,
the Clearing Agencies desire to avoid any doubt as to the applicability
of the Framework to specific models, and therefore propose to adopt
further clarifying changes to the text of the Framework.
---------------------------------------------------------------------------
\13\ DTCC operates on a shared services model with respect to
the Clearing Agencies. Most corporate functions are established and
managed on an enterprise-wide basis pursuant to intercompany
agreements under which it is generally DTCC that provides a relevant
service to a Clearing Agency.
\14\ See 2020 Notice, supra note 5.
---------------------------------------------------------------------------
Proposed Rule Change
Section 1 (Executive Summary) of the Framework recites the
regulatory requirements applicable to model risk management for credit
risk models, liquidity risk models, and margin models that are set
forth in the Covered Clearing Agency Standards. The proposed rule
change clarifies the Framework's scope by (i) amending Section 1 of the
Framework to add a sentence that states that the Framework supports the
Clearing Agencies in complying with their rule filing requirements
under Rule 19b-4 \15\ because the Framework itself is a rule that
governs the Clearing Agencies' management of their credit risk, margin,
and liquidity risk management models and (ii) adding a footnote that
states that only those models that satisfy the definition of ``model''
set forth in Section 3.1 of the Framework, and that support the
Clearing Agencies' compliance with the Standards, are models subject to
the Framework and, in contrast, models of the Clearing Agencies that
would satisfy the definition of ``model'' as set forth under Section
3.1 of the Framework, but do not support the Clearing Agencies'
compliance with the Standards, are not subject to the Framework.\16\ In
this regard, the proposed rule change would also amend certain
references to models in subsequent sections to refer to models
``subject to this Framework''. Specifically, the text ``subject to this
Framework'' would modify references to models in (i) Section 3.1 with
respect to (a) models to be added to the Clearing Agencies' model
inventory and (b) models subject to validation as set forth in Section
2,\17\ (ii) Section 3.2 (Model Materiality and Complexity) with respect
to the assignment of complexity ratings to models,\18\ (iii) Section
3.3 (Full Model Validation) with respect to a requirement relating to
the validation of new models,\19\ (iv) Section 3.4 (Periodic Model
Validation) with respect to periodic validation of models,\20\ (v)
Section 3.5 (Model Change Management) with respect to models that
require changes in either structure or technique, (vi) Section 3.7
(Resolution of Model Validation Findings) with respect to internal
tracking and reporting relating to model validations \21\ and (vii)
Section 4.2 (Escalation) \22\ with respect to internal escalation of
model performance monitoring oversight concerns.\23\
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\15\ 17 CFR 240.19b-4.
\16\ Pursuant to Section 3.1 of the Framework, the Clearing
Agencies have adopted the following definition of ``model'':
``[M]odel'' refers to a quantitative method, system, or approach
that applies statistical, economic, financial, or mathematical
theories, techniques, and assumptions to process input data into
quantitative estimates. A ``model'' consists of three components: An
information input component, which delivers assumptions and data to
the model; a processing component, which transforms inputs into
estimates; and a reporting component, which translates the estimates
into useful business information. The definition of `model' also
covers quantitative approaches whose inputs are partially or wholly
qualitative or based on expert judgment, provided that the output is
quantitative in nature. See 2017 Notice, supra note 5. See also
Supervisory Guidance on Model Risk Management, SR Letter 11-7
Attachment, dated April 4, 2011, issued by the Board of Governors of
the Federal Reserve System and the Office of the Comptroller of the
Currency, available at https://www.federalreserve.gov/supervisionreg/srletters/sr1107a1.pdf, page 3.
\17\ Also in this regard, the applicable sentence that this
reference would be added to would also replace the words ``All
models (including, without limitation, all credit risk models margin
models, and liquidity risk models)'' with ``All models.'' The
described reference to ``subject to this Framework'' would be added
after the newly added text ``All models.''
\18\ In this instance, the new text ``subject to this
Framework'' would be preceded with the added text ``that is'' so
that the reference to ``model'' in this context reads ``. . . model
that is subject to this Framework . . . .''
\19\ Similar to the prior reference from Section 3.1, the added
reference to ``subject to this Framework'' in Section 3.3 would be
preceded with the added text ``that is'' so that the reference to
``model'' in this context reads ``. . . new model that is subject to
this Framework . . . .''
\20\ Similar to the prior reference from Section 3.3, the added
reference to ``subject to this Framework in Section 3.4 would be
followed with the added text ``that is'' so that the reference to
``model'' in this context reads ``. . . model subject to this
Framework that is . . . .''
\21\ The reference to model in this instance also refers to a
new model or a model change and the applicable text reads ``. . .
new model or model change . . . .'' To improve the flow of the text,
the words ``or model change'' would be deleted and ``or changed''
would be added after ``new.'' Also, the addition of ``subject to
this Framework'' would be preceded by newly added words ``that is''
so that the reference to ``model'' in this case refers to ``. . .
new or changed model that is subject to this Framework . . . .''
\22\ In this instance the existing text does not use the word
``model'' even though it is referencing the escalation of issues
relating to models. The applicable sentence currently begins with
``[a]ll model performance monitoring oversight concerns . . . .''
\23\ See MRMF Filings, supra note 5, for additional information
on the contents of these sections, and the Framework in general.
---------------------------------------------------------------------------
[[Page 38165]]
The proposed rule change makes several other technical and
clarifying changes to the text of the Framework. It revises a sentence
in Section 1 that currently states ``FICC/GSD, FICC/MBSD, and NSCC are
each a ``Central Counterparty'' or ``CCP'' and are collectively
referred to as the ``Central Counterparties'' or ``CCPs''. The proposed
revisions to this sentence (i) changes the first reference to ``Central
Counterparty'' from a capitalized term to an uncapitalized term, (ii)
deletes the second reference to this term in this sentence (shown as
``Central Counterparties'') such that ``CCP'' will be the sole defined
term used to described central counterparties, and (iii) adds ``below''
after the words ``referred to.''
It defines a term for ``Clearing Agency Model Documentation'' to
reduce the repetition of listing numerous documents that are
subordinate to the Framework with respect to model risk management. The
proposed rule change updates the titles of certain Clearing Agency
Model Documentation.\24\ It also consolidates a reference to
supplementary model risk documentation applicable to the Clearing
Agencies that may be created from time to time into the newly defined
term ``Clearing Agency Model Documentation''. The proposed rule change
adds this defined term to three sentences in Section 1 to replace
references in the section to specifically named model documentation and
supplemental model documentation. It also consolidates two references
that respectively provide that the documentation that is specifically
named in the Framework, and the supplemental documentation that may be
created, are subordinate to the Framework and are reasonably and fairly
implied by the Framework, into one such reference with respect to
Clearing Agency Model Documentation.
---------------------------------------------------------------------------
\24\ Section 1 provides that this documentation each of which
may be updated, amended, retired, or replaced from time to time. In
this regard, the text would be updated to reflect that (i) ``DTCC
Model Validation Procedures'' has been changed to ``Model Validation
Procedures'', (ii) ``DTCC Model Performance Monitoring Procedures''
has been changed to ``DTCC Model Performance Standards & Policy'',
and (iii) ``DTCC Backtesting Procedures'' has been changed to
``Clearing Agency Backtesting Procedures.'' Also, the ``Quantitative
Risk Management Policy'' and ``Quantitative Risk Management
Monitoring Procedures'' would be added as supporting documents.
---------------------------------------------------------------------------
The proposed rule change updates prior references to the Model
Validation & Control unit (defined in the Framework as ``MVC''), the
name of which has recently changed, to instead refer generically to the
unit within the Clearing Agencies' Group Chief Risk office that
performs second-line model risk management functions. This generic
reference to this unit would be defined as ``MRM'' in the Framework
and, therefore, all references to ``MVC'' would be replaced with
``MRM'' beginning from the first use of ``MVC'' in Section 3, and with
respect to all subsequent references to ``MVC,'' through and including
the last reference to ``MVC'' in the second to last paragraph of
Section 5.
In addition, a sentence in Section 3.1 that states ``[a]ll Model
Validations are performed by MVC, which consists of qualified persons
who are free from influence from the persons responsible for the
development or operation of the models being validated, as required by
the risk management standards described in Section 2[.]'' would be
revised to delete the clause ``as required by the risk management
standards described in Section 2'' and the comma immediately preceding
that clause would be deleted. This clause is unnecessary because it
follows in a paragraph that already makes reference to the referenced
``risk management standards'' in a similar context.
Also, a sentence in Section 3.8 describes that as part of model
performance monitoring, on at least a monthly basis, a sensitivity
analysis is performed on each CCP's margin models, the key parameters
and assumptions for backtesting of such margin models are reviewed, and
modifications will be considered to ensure the backtesting practices
are appropriate for determining the adequacy of such CCP's margin
resources. This sentence ends with a clause that states ``which
Quantitative Risk Management (``QRM'') performs as required by the risk
management standards described in Section 2.'' The reference to the
requirements of Section 2 is unnecessary when naming the group that
performs these tasks. Therefore, Clearing Agencies will delete the
clause referencing these requirements, and a comma that proceeds it,
from the sentence in Section 3.8 described immediately above, and add a
new sentence, to follow the existing sentence, stating that
Quantitative Risk Management performs these functions, without
referencing the requirements described in Section 2. The new sentence
will read ``Quantitative Risk Management (``QRM'') performs these
functions.'' In addition, in this same sentence, the proposed rule
change will delete ``a'' that currently appears before the words
``sensitivity analysis''.
The proposed rule change also makes certain technical and
grammatical corrections, including elimination of unused or misapplied
defined terms. The proposed rule change deletes the text ``in
compliance with applicable legal requirements'' from sentence in
Section 1 (Executive Summary) that states that Section 3 of the
Framework describes key aspects of the Framework in terms of the manner
in which the Clearing Agencies identify, measure, monitor, and manage
model risk. Referring to compliance with applicable legal requirements
with respect to an individual section is unnecessary, because Section 1
contains a separate reference indicating that the Framework itself is
designed to support compliance with the legal requirements set forth
under the Covered Clearing Agency Standards relating to model risk
management. The proposed rule change would also modify the beginning of
the sentence described immediately above that currently includes the
text ``Section 3 describes key aspects of the Framework in terms of the
manner in which the Clearing Agencies identify, measure, monitor, and
manage model risk . . .'' to delete the words ``Framework in terms of
the'' to simplify the text by deleting a clause that does not enhance
the meaning of the sentence.
Finally, the proposed rule change replaces a reference to
``quantitative models'' to ``models'' in the Executive Summary under
Section 1. This use of ``quantitative'' is redundant because, by
definition, models covered by the Framework are quantitative in
nature.\25\
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\25\ As noted above, pursuant to Section 3.1 of the Framework,
the term ``model'' refers to a quantitative method, system, or
approach that applies statistical, economic, financial, or
mathematical theories, techniques, and assumptions to process input
data into quantitative estimates.
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2. Statutory Basis
NSCC believes that the proposed rule change is consistent with
Section 17A(b)(3)(F) of the Act,\26\ as well as Rule 17Ad-22(e)(4),
(e)(6), and (e)(7) thereunder,\27\ for the reasons described below.
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\26\ 15 U.S.C. 78q-1(b)(3)(F).
\27\ 17 CFR 240.17Ad-22(e)(4), (e)(6) and (e)(7). References to
Rule 17Ad-22(e)(6) and compliance therewith apply to the CCPs only
and do not apply to DTC.
---------------------------------------------------------------------------
Section 17A(b)(3)(F) of the Act \28\ requires, inter alia, that the
rules of a clearing agency be designed to assure the safeguarding of
securities and funds which are in the custody or control of the
clearing agency or for which it is responsible. As described above, the
[[Page 38166]]
Framework describes the process by which the Clearing Agencies
identify, measure, monitor, and manage the risks associated with the
design, development, implementation, use, and validation of
quantitative models. The quantitative models covered by the Framework
are utilized by the Clearing Agencies, as applicable, to manage risks
associated with the safeguarding of securities and funds that are in
their custody or control or for which they are responsible, and the
proposed rule change clarifies the applicability of the Framework to
specific models, thereby better supporting the ability of the Clearing
Agencies to perform these important risk management functions and
comply with other regulatory requirements, including Rule 19b-4.
---------------------------------------------------------------------------
\28\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Rule 17Ad-22(e)(4), (e)(6), and (e)(7) \29\ requires, inter alia,
that a covered clearing agency establish, implement, maintain and
enforce written policies and procedures reasonably designed to manage
risks associated with its credit risk management models, margin models,
and liquidity risk management models, as applicable. As discussed
above, the proposed rule change clarifies the applicability of the
Framework to such types of models, thereby better supporting the
ability of the Clearing Agencies to comply with these requirements.
Therefore, the Clearing Agencies believe that the proposed changes to
the Framework are consistent with Rule 17Ad-22(e)(4), (e)(6), and
(e)(7).\30\
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\29\ 17 CFR 240.17Ad-22(e)(4), (e)(6) and (e)(7). References to
Rule 17Ad-22(e)(6) and compliance therewith apply to the CCPs only
and do not apply to DTC.
\30\ Id.
---------------------------------------------------------------------------
(B) Clearing Agency's Statement on Burden on Competition
The Clearing Agencies do not believe that the proposed rule change
would have any impact, or impose any burden, on competition because the
proposed rule change simply clarifies the scope and administration of
the Framework by the Clearing Agencies and would not effectuate any
changes to the Clearing Agencies' model risk management tools as they
currently apply to their respective Members or Participants.
(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants, or Others
The Clearing Agencies have not solicited or received any written
comments relating to this proposal. The Clearing Agencies will notify
the Commission of any written comments received by the Clearing
Agencies.
III. Date of Effectiveness of the Proposed Rule Change, and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \31\ of the Act and paragraph (f) \32\ of Rule 19b-4
thereunder. 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.
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\31\ 15 U.S.C. 78s(b)(3)(A).
\32\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------
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
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-NSCC-2021-008 on the subject line.
Paper Comments
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-2021-008. 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 (https://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549 on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of the filing also will be available for inspection
and copying at the principal office of NSCC and on DTCC's website
(https://dtcc.com/legal/sec-rule-filings.aspx). All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NSCC-2021-008 and should be submitted on
or before August 9, 2021.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\33\
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\33\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-15189 Filed 7-16-21; 8:45 am]
BILLING CODE 8011-01-P
