Securities and Exchange Commission November 2020 – Federal Register Recent Federal Regulation Documents

The Securities and Exchange Commission (``SEC'') is issuing a policy statement and guidance regarding future applications from a central counterparty (``CCP'') authorized under the European Market Infrastructure Regulation (``EMIR'') and based in the European Union (an ``EU CCP'') that is seeking to register as a clearing agency with the SEC under the Securities Exchange Act of 1934 (``Exchange Act'') and future requests by EU CCPs for exemptions from certain SEC requirements.

The Commodity Futures Trading Commission (``CFTC'') and the Securities and Exchange Commission (``SEC'') (collectively, the ``Commissions'') are adopting rule amendments to lower the margin requirement for an unhedged security futures position from 20% to 15% and adopting certain conforming revisions to the security futures margin offset table.

The Securities and Exchange Commission (the ``Commission'') is adopting a new rule under the Investment Company Act of 1940 (``Investment Company Act'' or ``Act'') to streamline and enhance the regulatory framework applicable to funds that invest in other funds (``fund of funds'' arrangements). In connection with the new rule, the Commission is rescinding rule 12d1-2 under the Act and certain exemptive relief that has been granted from sections 12(d)(1)(A), (B), (C), and (G) of the Act permitting certain fund of funds arrangements. Finally, the Commission is adopting related amendments to rule 12d1-1 under the Act and to Form N-CEN.