Self-Regulatory Organizations; National Securities Clearing Corporation; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To Enhance Capital Requirements and Make Other Changes, 18444-18446 [2022-06512]
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18444
Federal Register / Vol. 87, No. 61 / Wednesday, March 30, 2022 / Notices
fact that this market is competitive has
also long been recognized by the courts.
In NetCoalition v. Securities and
Exchange Commission, the D.C. Circuit
stated as follows: ‘‘[n]o one disputes
that competition for order flow is
‘fierce.’ . . . As the SEC explained, ‘[i]n
the U.S. national market system, buyers
and sellers of securities, and the brokerdealers that act as their order-routing
agents, have a wide range of choices of
where to route orders for execution’;
[and] ‘no exchange can afford to take its
market share percentages for granted’
because ‘no exchange possesses a
monopoly, regulatory or otherwise, in
the execution of order flow from broker
dealers’. . . .’’.18 Accordingly, the
Exchange does not believe its proposed
fee change imposes any burden on
competition that is not necessary or
appropriate in furtherance of the
purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
The Exchange neither solicited nor
received comments on the proposed
rule change.
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)
of the Act 19 and paragraph (f) of Rule
19b–4 20 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. If the
Commission takes such action, the
Commission will institute proceedings
to determine whether the proposed rule
change should be approved or
disapproved.
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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:
18 NetCoalition v. SEC, 615 F.3d 525, 539 (D.C.
Cir. 2010) (quoting Securities Exchange Act Release
No. 59039 (December 2, 2008), 73 FR 74770, 74782–
83 (December 9, 2008) (SR–NYSEArca–2006–21)).
19 15 U.S.C. 78s(b)(3)(A).
20 17 CFR 240.19b–4(f).
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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–
CboeEDGX–2022–014 on the subject
line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeEDGX–2022–014. 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 the Exchange. 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–CboeEDGX–2022–014 and
should be submitted on or before April
20, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.21
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–06631 Filed 3–29–22; 8:45 am]
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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94494; File No. SR–NSCC–
2021–016]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Order Instituting
Proceedings To Determine Whether To
Approve or Disapprove a Proposed
Rule Change To Enhance Capital
Requirements and Make Other
Changes
March 23, 2022.
I. Introduction
On December 13, 2021, National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
proposed rule change SR–NSCC–2021–
016 (the ‘‘Proposed Rule Change’’)
pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder.2
The Proposed Rule Change was
published for comment in the Federal
Register on December 29, 2021,3 and the
Commission has received comments
regarding the changes proposed in the
Proposed Rule Change.4
On January 26, 2022, pursuant to
Section 19(b)(2) of the Act,5 the
Commission designated a longer period
within which to approve, disapprove, or
institute proceedings to determine
whether to approve or disapprove the
Proposed Rule Change.6 This order
institutes proceedings, pursuant to
Section 19(b)(2)(B) of the Act,7 to
determine whether to approve or
disapprove the Proposed Rule Change.
II. Summary of the Proposed Rule
Change
As described in the Notice, NSCC
proposes to amend the Rules and
Procedures (‘‘Rules’’) in order to (1)
revise its capital requirements for
Members and Limited Members
(collectively, ‘‘members’’), (2)
streamline its two credit risk monitoring
systems, Watch List and enhanced
surveillance list, and (3) make certain
other clarifying, technical, and
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Securities Exchange Act Release No. 93856
(December 22, 2021), 86 FR 74185 (December 29,
2021) (SR–NSCC–2021–016) (‘‘Notice’’).
4 Comments are available at https://www.sec.gov/
comments/sr-nscc-2021-016/srnscc2021016.htm.
5 15 U.S.C. 78s(b)(2).
6 Securities Exchange Act Release No. 94068
(January 26, 2022), 87 FR 5544 (February 1, 2022)
(SR–NSCC–2021–016).
7 15 U.S.C. 78s(b)(2)(B).
2 17
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Federal Register / Vol. 87, No. 61 / Wednesday, March 30, 2022 / Notices
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supplementary changes to implement
items (1) and (2).8
First, NSCC proposes to revise various
aspects of its capital requirements for
several types of members. NSCC
proposes to increase minimum capital
requirements for certain members. For
example, for U.S. broker-dealers, the
capital requirements would be
determined using a tiered system based
generally on the volatility component of
a member’s margin (referred to as the
value-at-risk tier). NSCC also proposes
to revise how it measures certain
members’ capital by incorporating
common equity tier 1 capital, and the
standards established in the capital
adequacy rules and regulations of the
Federal Deposit Insurance Corporation.
NSCC would revise the reporting
requirements concerning the capital
requirements for certain members. In
addition, for certain types of members
who currently do not have specific
amounts for their minimum capital
requirements, the proposal would
establish such a requirement.
Second, NSCC proposes to revise its
Watch List and enhanced surveillance
list, which are both currently used for
credit risk monitoring. NSCC proposes
to revise its Watch List and delete its
enhanced surveillance list. NSCC also
proposes to clarify that members on the
Watch List are reported to NSCC’s
management committees and regularly
reviewed by NSCC’s senior
management.
Third, NSCC proposes to (1) revise or
add headings and sub-headings as
appropriate, (2) revise defined terms
and add appropriate defined terms to
facilitate the proposed changes, (3)
rearrange and consolidate paragraphs to
promote readability, (4) fix
typographical and other errors, and (5)
other changes in order to improve
clarity and the accessibility and
transparency of the Rules.
III. Proceedings To Determine Whether
To Approve or Disapprove the
Proposed Rule Change and Grounds for
Disapproval Under Consideration
The Commission is instituting
proceedings pursuant to Section
19(b)(2)(B) of the Act 9 to determine
whether the Proposed Rule Change
should be approved or disapproved.
Institution of proceedings is appropriate
at this time in view of the legal and
8 The description of the Proposed Rule Change is
based on the statements prepared by NSCC in the
Notice. See Notice, supra note 3. Capitalized terms
used herein and not otherwise defined herein are
defined in the Rules, available at https://
www.dtcc.com/-/media/Files/Downloads/legal/
rules/nscc_rules.pdf.
9 15 U.S.C. 78s(b)(2)(B).
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policy issues raised by the Proposed
Rule Change. Institution of proceedings
does not indicate that the Commission
has reached any conclusions with
respect to any of the issues involved.
Rather, the Commission seeks and
encourages interested persons to
comment on the Proposed Rule Change,
providing the Commission with
arguments to support the Commission’s
analysis as to whether to approve or
disapprove the Proposed Rule Change.
Pursuant to Section 19(b)(2)(B) of the
Act,10 the Commission is providing
notice of the grounds for disapproval
under consideration. The Commission is
instituting proceedings to allow for
additional analysis of, and input from
commenters with respect to, the
Proposed Rule Change’s consistency
with Section 17A of the Act,11 and the
rules thereunder, including the
following provisions:
• Section 17A(b)(3)(F) of the Act,12
which requires, among other things, that
the rules of a clearing agency must be
designed to promote the prompt and
accurate clearance and settlement of
securities transactions, 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, and to protect investors and
the public interest;
• Section 17A(b)(3)(I) of the Act,13
which requires that the rules of a
clearing agency do not impose any
burden on competition not necessary or
appropriate in furtherance of the
purposes of the Act;
• Rule 17Ad–22(e)(18) under the
Act,14 which requires that a covered
clearing agency establish, implement,
maintain, and enforce written policies
and procedures reasonably designed to
establish objective, risk-based, and
publicly disclosed criteria for
participation, which permit fair and
open access by direct and, where
relevant, indirect participants and other
financial market utilities, require
participants to have sufficient financial
resources and robust operational
capacity to meet obligations arising from
participation in the clearing agency, and
monitor compliance with such
participation requirements on an
ongoing basis.
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
Proposed Rule Change. In particular, the
Commission invites the written views of
interested persons concerning whether
the Proposed Rule Change is consistent
with Section 17A(b)(3)(F) of the Act,15
Section 17A(b)(3)(I) of the Act,16 Rule
17Ad–22(e)(18) under the Act,17 or any
other provision of the Act, or the rules
and regulations thereunder.
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
Proposed Rule Change should be
approved or disapproved by April 20,
2022. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
May 4, 2022.
The Commission asks that
commenters address the sufficiency of
NSCC’s statements in support of the
Proposed Rule Change, which are set
forth in the Notice,18 in addition to any
other comments they may wish to
submit about the Proposed Rule Change.
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–2021–016 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–NSCC–2021–016. 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
10 Id.
U.S.C. 78q–1.
U.S.C. 78q–1(b)(3)(F).
13 15 U.S.C. 78q–1(b)(3)(I).
14 17 CFR 240.17Ad–22(e)(18).
11 15
15 15
12 15
16 15
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18445
U.S.C. 78q–1(b)(3)(F).
U.S.C. 78q–1(b)(3)(I).
17 17 CFR 240.17Ad–22(e)(18).
18 See Notice, supra note 3.
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Federal Register / Vol. 87, No. 61 / Wednesday, March 30, 2022 / Notices
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-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–
2021–016 and should be submitted on
or before April 20, 2022. Rebuttal
comments should be submitted by May
4, 2022.
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.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.19
J. Matthew DeLesDernier,
Assistant Secretary.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange 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
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
[FR Doc. 2022–06512 Filed 3–29–22; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94513; File No. SR–CBOE–
2022–012]
Self-Regulatory Organizations; Cboe
Exchange, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Amend Its Rules
Relating to the Continuing Education
for Registered Persons as Provided
Under Exchange Rule 3.33 and To
Amend Related Registration
Requirements as Provided Under Rule
3.30
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March 24, 2022.
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (the
‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on March 15,
2022, Cboe Exchange, Inc. (the
‘‘Exchange’’ or ‘‘Cboe Options’’) filed
with the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Exchange filed the proposal as a ‘‘noncontroversial’’ proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend its
rules relating to the Continuing
Education for Registered Persons as
provided under Exchange Rule 3.33 and
to amend related Registration
Requirements as provided under Rule
3.30. The text of the proposed rule
change is provided in Exhibit 5.
The text of the proposed rule change
is also available on the Exchange’s
website (https://www.cboe.com/
AboutCBOE/
CBOELegalRegulatoryHome.aspx), at
the Exchange’s Office of the Secretary,
and at the Commission’s Public
Reference Room.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
(i) Background
The continuing education program for
registered persons of broker-dealers
(‘‘CE Program’’) currently requires
registered persons to complete
continuing education consisting of a
Regulatory Element and a Firm Element.
The Regulatory Element is delivered
through a web-based delivery method
called ‘‘CE Online,’’ which is
administered through the Financial
Industry Regulatory Authority, Inc.
(‘‘FINRA’’) online continuing education
system, and focuses on regulatory
requirements and industry standards,
while the Firm Element is provided by
each firm and focuses on securities
19 17
1 15
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4 17
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U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6).
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products, services and strategies the
firm offers, firm policies and industry
trends. The CE Program for registered
persons is codified under Exchange
Rule 3.33.
The Securities and Exchange
Commission (the ‘‘SEC’’ or the
‘‘Commission’’) recently approved a
proposal submitted by FINRA relating to
its CE Program.5 The Exchange
understands that other exchanges have
or will propose similar amendments
based on FINRA’s rule changes.
Therefore, the Exchange proposes to
amend and enhance its own CE Program
as provided under Rule 3.33 and its
related Registration Requirements as
provided under Rule 3.30 in response to
FINRA’s amended CE Program and to
facilitate compliance with the
Exchange’s CE Program requirements by
members of multiple exchanges. The
Exchange proposes to implement the
proposed rule changes to align with
FINRA’s CE Program implementation
dates.6 Specifically, the proposed
implementation dates are as follows:
Changes relating to proposed Rule
3.33(c) (Continuing Education Program
for Persons Maintaining Their
Qualification Following the
Termination of a Registration Category)
will become effective March 15, 2022;
changes relating to Rule 3.30.09 (Waiver
of Examination for Individuals Working
for a Financial Services Industry
Affiliate of a TPH) 7 (referred to as the
‘‘FSA waiver program’’ or ‘‘FSAWP’’)
will become effective March 15, 2022;
and all other changes, including
changes to Rules 3.33(a) (Regulatory
Element) 8 and 3.33(b) (Firm Element)
will become effective January 1, 2023.
a. Regulatory Element
Exchange Rule 3.33(a) currently
requires a registered person to complete
the applicable Regulatory Element
initially within 120 days after the
person’s second registration anniversary
date and, thereafter, within 120 days
after every third registration anniversary
date.9 The Exchange may extend these
5 See Securities and Exchange Act No. 93097
(September 21, 2021), 86 FR 53358 (September 27,
2021) (SR–FINRA–2021–015) (Order Approving a
Proposed Rule Change To Amend FINRA Rules
1210 (Registration Requirements) and 1240
(Continuing Education Requirements)).
6 See FINRA Regulatory Notice 21–41 (November
17, 2021).
7 ‘‘TPH’’ refers to Trading Permit Holder. See Rule
1.1.
8 An individual’s initial annual Regulatory
Element due date will be December 31, 2023.
9 See Rule 3.33(a). An individual’s registration
anniversary date is generally the date they initially
registered in the Central Registration Depository
(‘‘CRD®’’) system. However, an individual’s
registration anniversary date would be reset if the
individual has been out of the industry for two or
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]]>Agencies
[Federal Register Volume 87, Number 61 (Wednesday, March 30, 2022)]
[Notices]
[Pages 18444-18446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06512]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-94494; File No. SR-NSCC-2021-016]
Self-Regulatory Organizations; National Securities Clearing
Corporation; Order Instituting Proceedings To Determine Whether To
Approve or Disapprove a Proposed Rule Change To Enhance Capital
Requirements and Make Other Changes
March 23, 2022.
I. Introduction
On December 13, 2021, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') proposed rule change SR-NSCC-2021-016 (the ``Proposed
Rule Change'') pursuant to Section 19(b)(1) of the Securities Exchange
Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The Proposed
Rule Change was published for comment in the Federal Register on
December 29, 2021,\3\ and the Commission has received comments
regarding the changes proposed in the Proposed Rule Change.\4\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ Securities Exchange Act Release No. 93856 (December 22,
2021), 86 FR 74185 (December 29, 2021) (SR-NSCC-2021-016)
(``Notice'').
\4\ Comments are available at https://www.sec.gov/comments/sr-nscc-2021-016/srnscc2021016.htm.
---------------------------------------------------------------------------
On January 26, 2022, pursuant to Section 19(b)(2) of the Act,\5\
the Commission designated a longer period within which to approve,
disapprove, or institute proceedings to determine whether to approve or
disapprove the Proposed Rule Change.\6\ This order institutes
proceedings, pursuant to Section 19(b)(2)(B) of the Act,\7\ to
determine whether to approve or disapprove the Proposed Rule Change.
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
\6\ Securities Exchange Act Release No. 94068 (January 26,
2022), 87 FR 5544 (February 1, 2022) (SR-NSCC-2021-016).
\7\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
II. Summary of the Proposed Rule Change
As described in the Notice, NSCC proposes to amend the Rules and
Procedures (``Rules'') in order to (1) revise its capital requirements
for Members and Limited Members (collectively, ``members''), (2)
streamline its two credit risk monitoring systems, Watch List and
enhanced surveillance list, and (3) make certain other clarifying,
technical, and
[[Page 18445]]
supplementary changes to implement items (1) and (2).\8\
---------------------------------------------------------------------------
\8\ The description of the Proposed Rule Change is based on the
statements prepared by NSCC in the Notice. See Notice, supra note 3.
Capitalized terms used herein and not otherwise defined herein are
defined in the Rules, available at https://www.dtcc.com/-/media/Files/Downloads/legal/rules/nscc_rules.pdf.
---------------------------------------------------------------------------
First, NSCC proposes to revise various aspects of its capital
requirements for several types of members. NSCC proposes to increase
minimum capital requirements for certain members. For example, for U.S.
broker-dealers, the capital requirements would be determined using a
tiered system based generally on the volatility component of a member's
margin (referred to as the value-at-risk tier). NSCC also proposes to
revise how it measures certain members' capital by incorporating common
equity tier 1 capital, and the standards established in the capital
adequacy rules and regulations of the Federal Deposit Insurance
Corporation. NSCC would revise the reporting requirements concerning
the capital requirements for certain members. In addition, for certain
types of members who currently do not have specific amounts for their
minimum capital requirements, the proposal would establish such a
requirement.
Second, NSCC proposes to revise its Watch List and enhanced
surveillance list, which are both currently used for credit risk
monitoring. NSCC proposes to revise its Watch List and delete its
enhanced surveillance list. NSCC also proposes to clarify that members
on the Watch List are reported to NSCC's management committees and
regularly reviewed by NSCC's senior management.
Third, NSCC proposes to (1) revise or add headings and sub-headings
as appropriate, (2) revise defined terms and add appropriate defined
terms to facilitate the proposed changes, (3) rearrange and consolidate
paragraphs to promote readability, (4) fix typographical and other
errors, and (5) other changes in order to improve clarity and the
accessibility and transparency of the Rules.
III. Proceedings To Determine Whether To Approve or Disapprove the
Proposed Rule Change and Grounds for Disapproval Under Consideration
The Commission is instituting proceedings pursuant to Section
19(b)(2)(B) of the Act \9\ to determine whether the Proposed Rule
Change should be approved or disapproved. Institution of proceedings is
appropriate at this time in view of the legal and policy issues raised
by the Proposed Rule Change. Institution of proceedings does not
indicate that the Commission has reached any conclusions with respect
to any of the issues involved. Rather, the Commission seeks and
encourages interested persons to comment on the Proposed Rule Change,
providing the Commission with arguments to support the Commission's
analysis as to whether to approve or disapprove the Proposed Rule
Change.
---------------------------------------------------------------------------
\9\ 15 U.S.C. 78s(b)(2)(B).
---------------------------------------------------------------------------
Pursuant to Section 19(b)(2)(B) of the Act,\10\ the Commission is
providing notice of the grounds for disapproval under consideration.
The Commission is instituting proceedings to allow for additional
analysis of, and input from commenters with respect to, the Proposed
Rule Change's consistency with Section 17A of the Act,\11\ and the
rules thereunder, including the following provisions:
---------------------------------------------------------------------------
\10\ Id.
\11\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------
Section 17A(b)(3)(F) of the Act,\12\ which requires, among
other things, that the rules of a clearing agency must be designed to
promote the prompt and accurate clearance and settlement of securities
transactions, 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, and to protect investors and the public interest;
---------------------------------------------------------------------------
\12\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------
Section 17A(b)(3)(I) of the Act,\13\ which requires that
the rules of a clearing agency do not impose any burden on competition
not necessary or appropriate in furtherance of the purposes of the Act;
---------------------------------------------------------------------------
\13\ 15 U.S.C. 78q-1(b)(3)(I).
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Rule 17Ad-22(e)(18) under the Act,\14\ which requires that
a covered clearing agency establish, implement, maintain, and enforce
written policies and procedures reasonably designed to establish
objective, risk-based, and publicly disclosed criteria for
participation, which permit fair and open access by direct and, where
relevant, indirect participants and other financial market utilities,
require participants to have sufficient financial resources and robust
operational capacity to meet obligations arising from participation in
the clearing agency, and monitor compliance with such participation
requirements on an ongoing basis.
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\14\ 17 CFR 240.17Ad-22(e)(18).
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IV. Procedure: Request for Written Comments
The Commission requests that interested persons provide written
submissions of their views, data, and arguments with respect to the
issues identified above, as well as any other concerns they may have
with the Proposed Rule Change. In particular, the Commission invites
the written views of interested persons concerning whether the Proposed
Rule Change is consistent with Section 17A(b)(3)(F) of the Act,\15\
Section 17A(b)(3)(I) of the Act,\16\ Rule 17Ad-22(e)(18) under the
Act,\17\ or any other provision of the Act, or the rules and
regulations thereunder.
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\15\ 15 U.S.C. 78q-1(b)(3)(F).
\16\ 15 U.S.C. 78q-1(b)(3)(I).
\17\ 17 CFR 240.17Ad-22(e)(18).
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Interested persons are invited to submit written data, views, and
arguments regarding whether the Proposed Rule Change should be approved
or disapproved by April 20, 2022. Any person who wishes to file a
rebuttal to any other person's submission must file that rebuttal by
May 4, 2022.
The Commission asks that commenters address the sufficiency of
NSCC's statements in support of the Proposed Rule Change, which are set
forth in the Notice,\18\ in addition to any other comments they may
wish to submit about the Proposed Rule Change.
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\18\ See Notice, supra note 3.
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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-2021-016 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-NSCC-2021-016. 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
[[Page 18446]]
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-2021-016
and should be submitted on or before April 20, 2022. Rebuttal comments
should be submitted by May 4, 2022.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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\19\ 17 CFR 200.30-3(a)(31).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06512 Filed 3-29-22; 8:45 am]
BILLING CODE 8011-01-P
