Securities and Exchange Commission December 5, 2023 – Federal Register Recent Federal Regulation Documents

The Securities and Exchange Commission (``Commission'') is adopting rules under the Securities Exchange Act of 1934 (``Exchange Act'') to improve the governance of clearing agencies registered with the Commission (``registered clearing agencies'') by reducing the likelihood that conflicts of interest may influence the board of directors or equivalent governing body (``board'') of a registered clearing agency. The rules identify certain responsibilities of the board, increase transparency into board governance, and, more generally, improve the alignment of incentives among owners and participants of a registered clearing agency. In support of these objectives, the rules establish new requirements for board and committee composition, independent directors, management of conflicts of interest, and board oversight.