Search Results for keywords:"financial stability"

The Securities and Exchange Commission approved proposed changes to the investment policies of the Depository Trust Company, Fixed Income Clearing Corporation, and National Securities Clearing Corporation. These changes are intended to align their policies with new rules for managing U.S. Treasury securities transactions and safeguarding customer margins. The proposal includes a process to keep proprietary and customer funds separate and independently managed, which aims to enhance the stability and security of these financial transactions. The updated policies are meant to ensure that funds are secure and properly managed even in the event of a financial default.

The Securities and Exchange Commission (SEC) is considering a proposed rule change by the Fixed Income Clearing Corporation (FICC) to introduce a "Volatility Event Charge." This charge is designed to help FICC manage and reduce its risk during periods of significant market upheaval, like major elections or economic announcements, that could cause large market movements. The proposed change is aimed at ensuring FICC has enough financial resources to protect against potential losses if a clearing member defaults during such volatile times. The SEC invites public comments on this proposal, which would add more stability to financial markets by proactively managing associated risks.

The Options Clearing Corporation (OCC) has proposed a rule change to adjust its fee schedule, specifically focusing on the Operational Loss Fee, to ensure it aligns with their Capital Management Policy. This change aims to enable the OCC to replenish its capital efficiently if their equity falls below a certain level. The updated fee structure would see clearing members potentially share the cost if OCC's assets drop below required thresholds, with the aim of maintaining stability and fulfilling their obligations. The OCC believes this adjustment is fair and necessary to support their Recovery and Orderly Wind-Down Plan, complying with regulatory requirements.

The Securities and Exchange Commission (SEC) has introduced Rule 17Ad-24, which exempts certain activities of registered security-based swap dealers, execution facilities, and individuals engaged in minimal dealing activity from being classified as a "clearing agency" under the Securities Exchange Act. This exemption aims to prevent unnecessary regulatory overlaps and burdens, ensuring that only activities posing significant risks are subjected to clearing agency requirements. By doing so, the SEC seeks to foster efficiency, competition, and capital formation in the security-based swap market without compromising investor protection and financial stability.

CME Securities Clearing, Inc. (CMESC) is seeking to register as a clearing agency with the Securities and Exchange Commission under the Securities Exchange Act of 1934. If registered, CMESC would provide central counterparty clearing services for transactions involving U.S. Treasury securities and related agreements. The application details CMESC’s structure, including its board and risk management framework, and outlines its plans for ensuring financial stability and resilience. The Commission is requesting public comments on whether the application meets the requirements of the Exchange Act.

The Federal Deposit Insurance Corporation (FDIC) is inviting comments from the public and federal agencies on a proposed information collection related to deposit insurance awareness. This initiative is part of the FDIC's responsibilities under the Paperwork Reduction Act of 1995. They will conduct a survey to evaluate public awareness and understanding of deposit insurance and its effects on financial decisions. The survey aims to gather input that will help enhance the FDIC's communication, education, and outreach efforts, ensuring the financial system's stability and public confidence.

The proposed rule requires banking organizations to notify their primary federal regulator within 36 hours of determining in good faith that a "computer-security incident" has occurred that could cause significant disruptions to operations. A "notification incident" is an incident deemed serious enough to impact banking services or financial stability. Additionally, bank service providers must alert at least two individuals at affected banking organization customers immediately upon experiencing a significant disruption lasting four or more hours. This rule aims to ensure timely and effective responses to potential cybersecurity threats impacting the banking sector.

The Postal Regulatory Commission is seeking public input on potential new regulations to improve the effectiveness of the Market Dominant ratemaking system in accordance with the Postal Accountability and Enhancement Act (PAEA). This process aims to address challenges such as increasing efficiency, reducing costs, maintaining high-quality service standards, and assuring financial stability. To gather opinions and discuss potential changes, comments are invited until April 15, 2021, and reply comments until May 17, 2021. The Commission is also exploring how performance-based regulations and financial incentives might guide the Postal Service towards desired improvements.

The Options Clearing Corporation (OCC) is proposing changes to its rules and policies to introduce a persistent minimum amount of its own financial resources, known as "skin-in-the-game," to be used in covering losses if any member defaults. The OCC's new proposal aims to ensure this minimum amount is always available before tapping into members' clearing fund contributions. This effort is part of their broader plan to enhance financial stability and align their operations with global standards. Additionally, the changes are intended to improve risk management processes and ensure the OCC meets its regulatory obligations.

The Securities and Exchange Commission (SEC) has approved a rule change by the New York Stock Exchange (NYSE) that restricts certain companies from using reverse stock splits to continue being listed on the exchange. This new rule targets companies that repeatedly use reverse stock splits, especially if they have done so in the past year or have a significant reverse split history in the last two years. The SEC believes this rule will help protect investors by ensuring that companies listed on the exchange are financially stable and suitable for continuing public trading. Companies can still appeal if they are delisted due to these new rules.