The Securities and Exchange Commission has announced a proposed rule change filed by the National Securities Clearing Corporation (NSCC) to update their Clearing Agency Securities Valuation Framework. This update involves new rules for how clearing agencies like NSCC, Fixed Income Clearing Corporation (FICC), and The Depository Trust Company (DTC) manage the use of reliable data sources in their risk-based margin systems, particularly when some data may not be readily available or reliable. The proposal also suggests adding a glossary of key terms to improve clarity, and is designed to ensure these organizations continue to meet regulatory requirements for managing financial risks effectively. Public comments are invited on the proposed changes, which aim to strengthen NSCC's policies and procedures for managing credit exposure and ensuring accurate clearance and settlement of securities.
Simple Explanation
The Securities and Exchange Commission wants to make sure that special money helpers, like the NSCC, use good, reliable numbers when figuring out how much money is safe to keep in a piggy bank for trading. They're adding some new rules to make this work better, and they want people to tell them what they think about these changes.