The Fixed Income Clearing Corporation (FICC) has submitted a proposed rule change to the Securities and Exchange Commission (SEC) concerning the GSD Rulebook. This proposal aims to revise how Funds-Only Settlement Amount (FOS) payments are handled, clarifying their designation as a settlement, not a collateral payment, and detailing when payments are final. Additionally, FICC plans to remove its right to offset a FOS payment against any additional funds required from a Netting Member. The SEC invites public comments on whether this rule change aligns with the Securities Exchange Act of 1934.
Simple Explanation
The FICC wants to change some money rules so that everyone clearly knows how payments work and are final. They also want to stop using one payment to cover another, and they want people to say if they think this is a good idea.