The Securities and Exchange Commission published a notice about a proposed rule change by the National Securities Clearing Corporation (NSCC). This proposal involves updating the Clearing Agency Investment Policy to enhance how different funds are managed and invested. Notably, these changes aim to segregate and independently manage funds from direct and indirect participants to comply with new regulatory requirements. The updates are designed to ensure the safeguarding of these funds and may involve using only safe investments like U.S. Treasuries for certain categories of funds.
Simple Explanation
The National Securities Clearing Corporation wants to change how they manage money using safer choices like U.S. Treasuries, so everyone's funds are handled safely and separately. This update is to follow new rules and might be a bit tricky to understand without knowing the special language they use.