Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Partial Amendment No. 1 to Proposed Rule Change To Modify the GSD Rules Relating to the Adoption of a Trade Submission Requirement, 84211-84213 [2024-24205]
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Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices
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section 4203(a) of ERISA on or after
January 1, 2021; (ii) partial withdrawals
under section 4205(a)(1) of ERISA
during any three-year testing period
beginning on or after January 1, 2019;
and (iii) partial withdrawals under
section 4205(a)(2) of ERISA on or after
January 1, 2021. Under 29 CFR
4203.3(a), a special withdrawal liability
may not be put into effect until it is
approved by PBGC.
Determinations Regarding the Special
Rule
Under section 4203(f) of ERISA and
29 CFR 4203.5(a), PBGC must make two
determinations before approving a plan
amendment that provides a special
withdrawal liability rule. First, based on
a showing by the plan, PBGC must
determine that the special withdrawal
liability rule will apply only to an
industry with characteristics that would
make it appropriate to exempt
employers from withdrawal liability
under the rule. Second, PBGC must
determine that the special withdrawal
liability rule will not pose a significant
risk to the insurance system. After
review of the information submitted by
the Plan, and having received no public
comments, PBGC has made the
determinations required to approve the
Special Rule.
The Special Rule would apply only to
a narrow, Plan-specific industry
consisting of Original Employers
obligated to contribute to the Plan for
work performed under a Federal
Contract, and only when an Original
Employer loses its contract to a
Successor Employer that signs an
agreement with the Union requiring
contributions to the Plan. PBGC
determined that the characteristics of
this narrowly defined industry make it
appropriate to exempt employers from
withdrawal liability under the terms of
the Special Rule.
Those terms limit the risk of loss to
PBGC. The Special Rule only applies if
a Successor Employer contributes at the
same or a higher contribution rate as the
highest contribution rate, and for a
comparable number of CBUs, as the
Original Employer. The Plan has
demonstrated a history of stable or
increasing aggregate contributions
notwithstanding employer withdrawals,
which is consistent with the amount of
covered work being undiminished when
one federal contractor providing
commissary services at a federal facility
is replaced by another obligated to
contribute to the Plan at the same rate
for the same work at the facility.
The Plan is a green-zone plan. Its
annual reports for plan years 2011
through 2022 show increasing active
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participants and contributions, despite
at least a dozen employer withdrawals
over that period. The Plan reports that
it was 103 percent funded on an
actuarial basis as of January 1, 2022.
Conclusion
Based on the Plan’s submissions and
representations in connection with the
request for approval, PBGC has
determined that the Special Rule: (1)
will apply only to an industry that has
characteristics that would make the use
of the Special Rule appropriate; and (2)
will not pose a significant risk to the
insurance system. Therefore, under 29
CFR 4203.5, PBGC approves the plan
amendment describing the Special Rule.
PBGC’s approval is specific to the Plan
and to the plan amendment submitted
for PBGC’s approval. Any plan
amendment revising the the Special
Rule, other than to eliminate it entirely,
must be submitted for PBGC’s approval.
Issued in Washington, DC.
Ann Y. Orr,
Acting Director, Pension Benefit Guaranty
Corporation.
[FR Doc. 2024–24212 Filed 10–18–24; 8:45 am]
BILLING CODE 7709–02–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101340; File No. SR–FICC–
2024–009]
Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Partial Amendment No. 1 to
Proposed Rule Change To Modify the
GSD Rules Relating to the Adoption of
a Trade Submission Requirement
October 15, 2024.
On June 12, 2024, Fixed Income
Clearing Corporation (‘‘FICC’’) filed
with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change SR–FICC–2024–
009 (‘‘Proposed Rule Change’’) 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’’) as it relates to the adoption of
a requirement for its direct participants
to submit for clearance and settlement
all eligible secondary market
transactions in U.S. Treasury securities
to which such direct participant is a
counterparty. The Proposed Rule
Change was published for comment in
1 15
2 17
PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
Frm 00103
Fmt 4703
Sfmt 4703
84211
the Federal Register on July 1, 2024.3
The Commission has received
comments regarding the substance of
the changes proposed in the Proposed
Rule Change.4
On August 16, 2024, pursuant to
Section 19(b)(2) of the Exchange 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
On September 26, 2024, pursuant to
Section 19(b)(2)(B) of the Exchange
Act,7 the Commission instituted
proceedings to determine whether to
approve or disapprove the Proposed
Rule Change.8
On September 24, 2024, FICC filed
Partial Amendment No. 1 to the
Proposed Rule Change.9 Pursuant to
Section 19(b)(1) of the Act 10 and Rule
19b-4 thereunder,11 the Commission is
publishing notice of this Partial
Amendment No.1 to the Proposed Rule
Change as described in Item I below.
The Commission is publishing this
notice to solicit comment on Partial
Amendment No. 1 from interested
persons.
I. Summary of the Terms of Substance
of Partial Amendment No. 1 to the
Proposed Rule Change
FICC filed Partial Amendment No. 1
to its previously submitted Proposed
Rule Change, which would make several
changes to FICC’s GSD Rules to (1)
adopt a membership requirement that
all Netting Members submit to FICC for
clearance and settlement eligible
secondary market transactions to which
they are a counterparty and defines the
scope of such trade submission
requirement; (2) adopt ongoing
membership requirements to enable
FICC to identify and monitor Netting
3 Securities Exchange Act Release No. 100417
(June 25, 2024), 89 FR 54602 (July 1, 2024) (File No.
SR–FICC–2024–009) (‘‘Notice of Filing’’).
4 Comments on the Proposed Rule Change are
available at https://www.sec.gov/comments/sr-ficc2024-009/srficc2024009.htm.
5 15 U.S.C. 78s(b)(2).
6 Securities Exchange Act Release No. 100693
(Aug. 12, 2024), 89 FR 66746 (Aug. 16, 2024) (File
No. SR–FICC–2024–009).
7 15 U.S.C. 78s(b)(2).
8 Securities Exchange Act Release No. 101194
(Sep. 26, 2024), 89 FR 80296 (Oct. 02, 2024) (File
No. SR–FICC–2024–009).
9 Text of the proposed changes made by the
Partial Amendment No. 1 to the Proposed Rule
Change is available at https://www.sec.gov/
comments/sr-ficc-2024-009/srficc2024009-5240751504142.pdf. The GSD Rules are available at
https://www.dtcc.com/∼/media/Files/Downloads/
legal/rules/ficc_gov_rules.pdf. Terms not otherwise
defined herein are defined in the GSD Rules or in
the Proposed Rule Change.
10 15 U.S.C. 78s(b)(1).
11 17 CFR 240.19b–4.
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84212
Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices
Members’ ongoing compliance with the
proposed trade submission
requirements; (3) amend certain initial
qualifications for direct membership
with GSD and the ongoing membership
obligations of Netting Members; and (4)
makes other revisions to the Rules to
clarify, conform and enhance the
disclosure of the Rules. Partial
Amendment No. 1 makes several
changes within the first three categories
above.
Within category (1) regarding FICC’s
proposed adoption of a membership
requirement that all Netting Members
submit to FICC for clearance and
settlement eligible secondary market
transactions to which they are a
counterparty and defines the scope of
such trade submission requirement,
Partial Amendment No. 1 makes the
following changes. First, as originally
proposed, the Proposed Rule Change
would require all Netting Members to
submit to FICC all Eligible Secondary
Market Transactions for novation as a
condition of membership.12 Partial
Amendment No. 1 would revise the
Proposed Rule Change to clarify that
Netting Members would be able to
submit Eligible Secondary Market
Transactions for novation to any
Covered Clearing Agency that provides
central counterparty services for
transactions in U.S. Treasury
securities.13 Second, Partial
Amendment No. 1 would delete text
from the existing rule regarding FICC’s
initial membership requirements that
currently requires Netting Members to,
as part of the Membership Agreement,
submit to FICC for comparison,
pursuant to Rule 5, data on all eligible
trades with other Netting Members.
Third, Partial Amendment No. 1 would
delete certain text from an existing rule
regarding FICC’s Comparison System, to
accommodate the changes to the trade
submission requirement. Specifically, it
would text stating that a member of
FICC’s Comparison System must submit
to FICC for comparison trade data on all
of its trades that are of the type
processed by FICC (including trades
executed and settled on the same day),
calling for delivery of Eligible
Securities, between it or an Executing
Firm on whose behalf it is acting, and
another Member or an Executing Firm
on whose behalf it or another Member
is acting, that if FICC determines that a
Comparison-Only Member has, without
good cause, violated its obligations
12 Notice
of Filing supra note 3.
Partial Amendment No. 1 would
include a definition of the term ‘‘Covered Clearing
Agency’’ which shall have the meaning of that term
in Rule 17Ad–22(a)(5) under the Exchange Act.
13 Additionally,
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16:27 Oct 18, 2024
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pursuant to this section, such
Comparison-Only Member may be
reported to the appropriate regulatory
body, placed on the Watch List and/or
subject to an additional fee, and that, in
addition, FICC may discipline a
Comparison-Only Member for a
violation of this section of the rule
regarding FICC’s Comparison System, in
accordance with Rule 48.
Within category (2) regarding FICC’s
proposed adoption of ongoing
membership requirements to enable
FICC to identify and monitor Netting
Members’ ongoing compliance with the
proposed trade submission requirement,
Partial Amendment No. 1 makes the
following changes. First, with regard to
the proposed Annual Trade Submission
Requirement, Partial Amendment No. 1
would add language that a Netting
Member shall not be required to submit
an Annual Trade Submission
Attestation in the same calendar year in
which it delivers to FICC its required
Triennial Independent Trade
Submission Report. Partial Amendment
No. 1 would also add language
regarding item (iv) of the required
attestations in the Annual Trade
Submission Requirement that the
Netting Member has, at all times during
the 12 months prior to the date of the
attestation, complied with the trade
submission requirement in Rule 5.
Specifically, it would amend this item
to add that this attestation is other than
with respect to matters that the Netting
Member has, of the date of the Annual
Trade Submission Attestation, disclosed
to FICC pursuant to the Rules.
Second, regarding the Triennial
Independent Trade Submission Review
and Report, Partial Amendment No. 1
would add language stating that FICC
will stagger the years in which Netting
Members are required to conduct their
Triennial Independent Trade
Submission Review. Additionally,
Partial Amendment No. 1 would add
language that FICC shall make available
to Netting Members a list of
independent third parties that have
been approved to conduct a Triennial
Independent Trade Submission Review,
that Netting Members may request that
FICC include additional third parties to
such list, at FICC’s sole discretion, and
that FICC shall make available to
Netting Members standard frameworks
for the completion of the Triennial
Independent Trade Submission Review
and Report.
Within category (3) regarding FICC’s
amendment of certain initial
qualifications for direct membership
with GSD and the ongoing membership
obligations of Netting Members, Partial
Amendment No. 1 makes the following
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
changes. First, Partial Amendment No. 1
would amend the ongoing membership
requirements to add language that
requires Members to notify FICC if
compliance with any membership
requirements of FICC would cause a
Member to violate an applicable law,
rule or regulation. The additional
language also states that FICC shall
work with such Member to modify a
requirement or request so that
compliance would not cause such
violation.
Second, Partial Amendment No. 1
would also amend the initial
membership requirements to add
language that a bank or trust company
shall have one membership and may
apply to be a Netting member through
either its parent bank entity or through
a branch of the bank.
Partial Amendment No. 1 would not
change the purpose of, or statutory basis
for the proposed rule change. All other
representations in the Initial Filing
remain as stated therein and no other
changes are being made.
II. 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-regulations/self-regulatoryorganization-rulemaking); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
FICC–2024–009 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–FICC–2024–009. 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-regulations/self-regulatoryorganization-rulemaking). 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
E:\FR\FM\21OCN1.SGM
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Federal Register / Vol. 89, No. 203 / Monday, October 21, 2024 / Notices
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 such
filing also will be available for
inspection and copying at the principal
office of FICC and on DTCC’s website at
(https://dtcc.com/legal/sec-rulefilings.aspx). Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to File
Number SR–FICC–2024–009 and should
be submitted on or before November 12,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.14
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–24205 Filed 10–18–24; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101345; File No. SR–DTC–
2024–009]
Self-Regulatory Organizations;
Depository Trust Company; Notice of
Designation of Longer Period for
Commission Action on Proposed Rule
Change To Adopt the Clearing Agency
Framework for Certain Requirements
on Governance and Conflicts of
Interest
lotter on DSK11XQN23PROD with NOTICES1
October 15, 2024.
On August 15, 2024, the Depository
Trust Company (‘‘DTC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change SR–DTC–2024–009 (‘‘Proposed
Rule Change’’) pursuant to Section 19(b)
of the Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4 2
thereunder to adopt a new framework
entitled the ‘‘Clearing Agency
Framework for Certain Requirements on
Governance and Conflicts of Interest’’
(‘‘Framework’’) of DTC and its affiliates,
the Fixed Income Clearing Corporation
(‘‘FICC’’) and National Securities
14 17
CFR 200.30–3(a)(31).
U.S.C. 78s(b)(1).
2 17 CFR 240.19b–4.
1 15
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16:27 Oct 18, 2024
Jkt 265001
Clearing Corporation (‘‘NSCC,’’ and
together with FICC and DTC, the
‘‘Clearing Agencies’’).3 The Proposed
Rule Change was published for public
comment in the Federal Register on
September 3, 2024.4 The Commission
has received no comments regarding the
Proposed Rule Change.
Section 19(b)(2)(i) of the Exchange
Act 5 provides that, within 45 days of
the publication of notice of the filing of
a proposed rule change, 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 unless
the Commission extends the period
within which it must act as provided in
Section 19(b)(2)(ii) of the Exchange
Act.6 Section 19(b)(2)(ii) of the
Exchange Act allows the Commission to
designate a longer period for review (up
to 90 days from the publication of notice
of the filing of a proposed rule change)
if the Commission finds such longer
period to be appropriate and publishes
its reasons for so finding, or as to which
the self-regulatory organization
consents.7
The 45th day after publication of the
Notice of Filing is October 18, 2024. To
provide the Commission with sufficient
time to consider the Proposed Rule
Change, the Commission finds that it is
appropriate to designate a longer period
within which to act on the Proposed
Rule Change and therefore is extending
this 45-day time period.
Accordingly, the Commission,
pursuant to Section 19(b)(2) of the
Exchange Act,8 designates December 2,
2024, as the date by which the
Commission shall either approve,
disapprove, or institute proceedings to
determine whether to disapprove
proposed rule change SR–DTC–2024–
009.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.9
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–24207 Filed 10–18–24; 8:45 am]
BILLING CODE 8011–01–P
Notice of Filing infra note 4, at 71 FR 597.
Exchange Act Release No. 100842
(August 27, 2024), 71 FR 597 (September 3, 2024)
(File No. SR–DTC–2024–009) (‘‘Notice of Filing’’).
5 15 U.S.C. 78s(b)(2)(i).
6 15 U.S.C. 78s(b)(2)(ii).
7 Id.
8 Id.
9 17 CFR 200.30–3(a)(12).
84213
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–101337; File No. SR–
NSCC–2024–006]
Self-Regulatory Organizations;
National Securities Clearing
Corporation; Notice of Designation of
Longer Period for Commission Action
on Proposed Rule Change To Adopt
the Clearing Agency Framework for
Certain Requirements on Governance
and Conflicts of Interest
October 15, 2024.
On August 15, 2024, National
Securities Clearing Corporation
(‘‘NSCC’’) filed with the Securities and
Exchange Commission (‘‘Commission’’)
the proposed rule change SR–NSCC–
2024–006 (‘‘Proposed Rule Change’’)
pursuant to Section 19(b) of the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) 1 and Rule 19b–4 2
thereunder to adopt a new framework
entitled the ‘‘Clearing Agency
Framework for Certain Requirements on
Governance and Conflicts of Interest’’
(‘‘Framework’’) of NSCC and its
affiliates, the Depository Trust Company
(‘‘DTC’’) and Fixed Income Clearing
Corporation (‘‘FICC,’’ and together with
NSCC and DTC, the ‘‘Clearing
Agencies’’).3 The Proposed Rule Change
was published for public comment in
the Federal Register on September 3,
2024.4 The Commission has received no
comments regarding the Proposed Rule
Change.
Section 19(b)(2)(i) of the Exchange
Act 5 provides that, within 45 days of
the publication of notice of the filing of
a proposed rule change, 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 unless
the Commission extends the period
within which it must act as provided in
Section 19(b)(2)(ii) of the Exchange
Act.6 Section 19(b)(2)(ii) of the
Exchange Act allows the Commission to
designate a longer period for review (up
to 90 days from the publication of notice
of the filing of a proposed rule change)
if the Commission finds such longer
period to be appropriate and publishes
its reasons for so finding, or as to which
3 See
4 Securities
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
1 15
U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Notice of Filing infra note 4, at 71 FR 646.
4 Securities Exchange Act Release No. 100841
(August 27, 2024), 71 FR 646 (September 3, 2024)
(File No. SR–NSCC–2024–006) (‘‘Notice of Filing’’).
5 15 U.S.C. 78s(b)(2)(i).
6 15 U.S.C. 78 s(b)(2)(ii).
2 17
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]]>Agencies
[Federal Register Volume 89, Number 203 (Monday, October 21, 2024)]
[Notices]
[Pages 84211-84213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24205]
=======================================================================
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-101340; File No. SR-FICC-2024-009]
Self-Regulatory Organizations; Fixed Income Clearing Corporation;
Notice of Filing of Partial Amendment No. 1 to Proposed Rule Change To
Modify the GSD Rules Relating to the Adoption of a Trade Submission
Requirement
October 15, 2024.
On June 12, 2024, Fixed Income Clearing Corporation (``FICC'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change SR-FICC-2024-009 (``Proposed Rule Change'')
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'') as it
relates to the adoption of a requirement for its direct participants to
submit for clearance and settlement all eligible secondary market
transactions in U.S. Treasury securities to which such direct
participant is a counterparty. The Proposed Rule Change was published
for comment in the Federal Register on July 1, 2024.\3\ The Commission
has received comments regarding the substance of 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. 100417 (June 25, 2024),
89 FR 54602 (July 1, 2024) (File No. SR-FICC-2024-009) (``Notice of
Filing'').
\4\ Comments on the Proposed Rule Change are available at
https://www.sec.gov/comments/sr-ficc-2024-009/srficc2024009.htm.
---------------------------------------------------------------------------
On August 16, 2024, pursuant to Section 19(b)(2) of the Exchange
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\
---------------------------------------------------------------------------
\5\ 15 U.S.C. 78s(b)(2).
\6\ Securities Exchange Act Release No. 100693 (Aug. 12, 2024),
89 FR 66746 (Aug. 16, 2024) (File No. SR-FICC-2024-009).
---------------------------------------------------------------------------
On September 26, 2024, pursuant to Section 19(b)(2)(B) of the
Exchange Act,\7\ the Commission instituted proceedings to determine
whether to approve or disapprove the Proposed Rule Change.\8\
---------------------------------------------------------------------------
\7\ 15 U.S.C. 78s(b)(2).
\8\ Securities Exchange Act Release No. 101194 (Sep. 26, 2024),
89 FR 80296 (Oct. 02, 2024) (File No. SR-FICC-2024-009).
---------------------------------------------------------------------------
On September 24, 2024, FICC filed Partial Amendment No. 1 to the
Proposed Rule Change.\9\ Pursuant to Section 19(b)(1) of the Act \10\
and Rule 19b-4 thereunder,\11\ the Commission is publishing notice of
this Partial Amendment No.1 to the Proposed Rule Change as described in
Item I below. The Commission is publishing this notice to solicit
comment on Partial Amendment No. 1 from interested persons.
---------------------------------------------------------------------------
\9\ Text of the proposed changes made by the Partial Amendment
No. 1 to the Proposed Rule Change is available at https://www.sec.gov/comments/sr-ficc-2024-009/srficc2024009-524075-1504142.pdf. The GSD Rules are available at https://www.dtcc.com/~/
media/Files/Downloads/legal/rules/ficc_gov_rules.pdf. Terms not
otherwise defined herein are defined in the GSD Rules or in the
Proposed Rule Change.
\10\ 15 U.S.C. 78s(b)(1).
\11\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Summary of the Terms of Substance of Partial Amendment No. 1 to the
Proposed Rule Change
FICC filed Partial Amendment No. 1 to its previously submitted
Proposed Rule Change, which would make several changes to FICC's GSD
Rules to (1) adopt a membership requirement that all Netting Members
submit to FICC for clearance and settlement eligible secondary market
transactions to which they are a counterparty and defines the scope of
such trade submission requirement; (2) adopt ongoing membership
requirements to enable FICC to identify and monitor Netting
[[Page 84212]]
Members' ongoing compliance with the proposed trade submission
requirements; (3) amend certain initial qualifications for direct
membership with GSD and the ongoing membership obligations of Netting
Members; and (4) makes other revisions to the Rules to clarify, conform
and enhance the disclosure of the Rules. Partial Amendment No. 1 makes
several changes within the first three categories above.
Within category (1) regarding FICC's proposed adoption of a
membership requirement that all Netting Members submit to FICC for
clearance and settlement eligible secondary market transactions to
which they are a counterparty and defines the scope of such trade
submission requirement, Partial Amendment No. 1 makes the following
changes. First, as originally proposed, the Proposed Rule Change would
require all Netting Members to submit to FICC all Eligible Secondary
Market Transactions for novation as a condition of membership.\12\
Partial Amendment No. 1 would revise the Proposed Rule Change to
clarify that Netting Members would be able to submit Eligible Secondary
Market Transactions for novation to any Covered Clearing Agency that
provides central counterparty services for transactions in U.S.
Treasury securities.\13\ Second, Partial Amendment No. 1 would delete
text from the existing rule regarding FICC's initial membership
requirements that currently requires Netting Members to, as part of the
Membership Agreement, submit to FICC for comparison, pursuant to Rule
5, data on all eligible trades with other Netting Members. Third,
Partial Amendment No. 1 would delete certain text from an existing rule
regarding FICC's Comparison System, to accommodate the changes to the
trade submission requirement. Specifically, it would text stating that
a member of FICC's Comparison System must submit to FICC for comparison
trade data on all of its trades that are of the type processed by FICC
(including trades executed and settled on the same day), calling for
delivery of Eligible Securities, between it or an Executing Firm on
whose behalf it is acting, and another Member or an Executing Firm on
whose behalf it or another Member is acting, that if FICC determines
that a Comparison-Only Member has, without good cause, violated its
obligations pursuant to this section, such Comparison-Only Member may
be reported to the appropriate regulatory body, placed on the Watch
List and/or subject to an additional fee, and that, in addition, FICC
may discipline a Comparison-Only Member for a violation of this section
of the rule regarding FICC's Comparison System, in accordance with Rule
48.
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\12\ Notice of Filing supra note 3.
\13\ Additionally, Partial Amendment No. 1 would include a
definition of the term ``Covered Clearing Agency'' which shall have
the meaning of that term in Rule 17Ad-22(a)(5) under the Exchange
Act.
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Within category (2) regarding FICC's proposed adoption of ongoing
membership requirements to enable FICC to identify and monitor Netting
Members' ongoing compliance with the proposed trade submission
requirement, Partial Amendment No. 1 makes the following changes.
First, with regard to the proposed Annual Trade Submission Requirement,
Partial Amendment No. 1 would add language that a Netting Member shall
not be required to submit an Annual Trade Submission Attestation in the
same calendar year in which it delivers to FICC its required Triennial
Independent Trade Submission Report. Partial Amendment No. 1 would also
add language regarding item (iv) of the required attestations in the
Annual Trade Submission Requirement that the Netting Member has, at all
times during the 12 months prior to the date of the attestation,
complied with the trade submission requirement in Rule 5. Specifically,
it would amend this item to add that this attestation is other than
with respect to matters that the Netting Member has, of the date of the
Annual Trade Submission Attestation, disclosed to FICC pursuant to the
Rules.
Second, regarding the Triennial Independent Trade Submission Review
and Report, Partial Amendment No. 1 would add language stating that
FICC will stagger the years in which Netting Members are required to
conduct their Triennial Independent Trade Submission Review.
Additionally, Partial Amendment No. 1 would add language that FICC
shall make available to Netting Members a list of independent third
parties that have been approved to conduct a Triennial Independent
Trade Submission Review, that Netting Members may request that FICC
include additional third parties to such list, at FICC's sole
discretion, and that FICC shall make available to Netting Members
standard frameworks for the completion of the Triennial Independent
Trade Submission Review and Report.
Within category (3) regarding FICC's amendment of certain initial
qualifications for direct membership with GSD and the ongoing
membership obligations of Netting Members, Partial Amendment No. 1
makes the following changes. First, Partial Amendment No. 1 would amend
the ongoing membership requirements to add language that requires
Members to notify FICC if compliance with any membership requirements
of FICC would cause a Member to violate an applicable law, rule or
regulation. The additional language also states that FICC shall work
with such Member to modify a requirement or request so that compliance
would not cause such violation.
Second, Partial Amendment No. 1 would also amend the initial
membership requirements to add language that a bank or trust company
shall have one membership and may apply to be a Netting member through
either its parent bank entity or through a branch of the bank.
Partial Amendment No. 1 would not change the purpose of, or
statutory basis for the proposed rule change. All other representations
in the Initial Filing remain as stated therein and no other changes are
being made.
II. 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-regulations/self-regulatory-organization-rulemaking);
or
Send an email to [email protected]. Please include
file number SR-FICC-2024-009 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-FICC-2024-009. 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-regulations/self-regulatory-organization-rulemaking). 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
[[Page 84213]]
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
such filing also will be available for inspection and copying at the
principal office of FICC and on DTCC's website at (https://dtcc.com/legal/sec-rule-filings.aspx). Do not include personal identifiable
information in submissions; you should submit only information that you
wish to make available publicly. We may redact in part or withhold
entirely from publication submitted material that is obscene or subject
to copyright protection. All submissions should refer to File Number
SR-FICC-2024-009 and should be submitted on or before November 12,
2024.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
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\14\ 17 CFR 200.30-3(a)(31).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-24205 Filed 10-18-24; 8:45 am]
BILLING CODE 8011-01-P
