Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proposed Rule Change To Modify the GSD Rules Regarding the Separate Calculation, Collection and Holding of Margin for Proprietary Transactions and That for Indirect Participant Transactions, and To Address the Conditions of Note H to Rule 15c3-3a, 77950 [2024-21754]

Agencies

• SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 89, Number 185 (Tuesday, September 24, 2024)]
[Notices]
[Page 77950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21754]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-101082; File No. SR-FICC-2024-007)]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action on 
Proposed Rule Change To Modify the GSD Rules Regarding the Separate 
Calculation, Collection and Holding of Margin for Proprietary 
Transactions and That for Indirect Participant Transactions, and To 
Address the Conditions of Note H to Rule 15c3-3a

September 18, 2024.
    On March 14, 2024, Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change SR-FICC-2024-007 pursuant to Section 19(b) of the 
Securities Exchange Act of 1934 (``Exchange Act'') \1\ and Rule 19b-4 
\2\ thereunder to modify FICC's Government Securities Division 
(``GSD'') Rulebook (``GSD Rules'') to calculate, collect, and hold 
margin for proprietary transactions of a Netting Member separately from 
margin that the Netting Member submits to FICC on behalf of indirect 
participants and to address conditions of Note H to Rule 15c3-3a under 
the Act.\3\ The Proposed Rule Change was published for public comment 
in the Federal Register on March 28, 2024.\4\ The Commission has 
received comments regarding the substance of the changes proposed in 
the Proposed Rule Change.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 99149 (Dec. 13, 
2023), 89 FR 2714 (Jan. 16, 2024) (S7-23-22) (``Adopting Release,'' 
and the rules adopted therein as ``Treasury Clearing Rules''). See 
also 17 CFR 240.15c3-3a.
    \4\ Securities Exchange Act Release No. 99844 (March 22, 2024), 
89 FR 21586 (Mar. 28, 2024) (File No. SR-FICC-2024-007) (``Notice of 
Filing''). FICC also filed a related Advance Notice with the 
Commission pursuant to Section 806(e)(1) of Title VIII of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, entitled the 
Payment, Clearing, and Settlement Supervision Act of 2010 and Rule 
19b-4(n)(1)(i) under the Exchange Act. 12 U.S.C. 5465(e)(1). 15 
U.S.C. 78s(b)(1) and 17 CFR 240.19b-4, respectively. The Advance 
Notice was published in the Federal Register on March 28, 2024. 
Securities Exchange Act Release No. 99845 (Mar. 22, 2024), 89 FR 
21603 (Mar. 28, 2024) (File No. SR-FICC-2024-802).
    \5\ Comments on the Proposed Rule Change are available at 
https://www.sec.gov/comments/sr-ficc-2024-007/srficc2024007.htm.
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    On April 24, 2024, pursuant to Section 19(b)(2) of the Act,\6\ 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.\7\ On June 21, 2024, pursuant to 
Section 19(b)(2)(B) of the Exchange Act,\8\ the Commission instituted 
proceedings to determine whether to approve or disapprove the Proposed 
Rule Change.\9\
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    \6\ 15 U.S.C. 78s(b)(2).
    \7\ Securities Exchange Act Release No. 100022 (Apr. 24, 2024), 
89 FR 34289 (Apr. 30, 2024) (File No. SR-FICC-2024-007).
    \8\ 15 U.S.C. 78s(b)(2)(B).
    \9\ Securities Exchange Act Release No. 100401 (Jun. 21, 2024), 
89 FR 53690 (Jun. 27, 2024) (File No. SR-FICC-2024-007).
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    Section 19(b)(2) of the Act \10\ provides that proceedings to 
determine whether to approve or disapprove a proposed rule change must 
be concluded within 180 days of the date of publication of notice of 
filing of the proposed rule change. The time for conclusion of the 
proceedings may be extended for up to 60 days if the Commission 
determines that a longer period is appropriate and publishes the 
reasons for such determination.\11\ The 180th day after publication of 
the Notice in the Federal Register is September 24, 2024.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 15 U.S.C 78s(b)(2)(B)(ii)(II).
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    The Commission is extending the period for Commission action on the 
Proposed Rule Change. The Commission finds that it is appropriate to 
designate a longer period within which to take action on the Proposed 
Rule Change so that the Commission has sufficient time to consider the 
issues raised by the Proposed Rule Change and to take action on the 
Proposed Rule Change. Accordingly, pursuant to Section 
19(b)(2)(B)(ii)(II) of the Act,\12\ the Commission designates November 
23, 2024, as the date by which the Commission should either approve or 
disapprove the Proposed Rule Change SR-FICC-2024-007.
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    \12\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(57).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-21754 Filed 9-23-24; 8:45 am]
BILLING CODE 8011-01-P