The Securities and Exchange Commission (SEC) is announcing a new rule change proposed by The Depository Trust Company (DTC) intended to update an existing agreement with the National Securities Clearing Corporation (NSCC). This change, which has already been filed and is effective immediately, aims to enhance processes like cross-endorsement and liquidity obligations between the two clearing agencies. These updates include consolidating obligations into a single guaranty, improving valuation of securities, better information sharing, and allowing more precise selection of securities. The public is invited to submit comments on whether the changes align with legal standards until February 13, 2025.
Simple Explanation
The Securities and Exchange Commission wants to change a rule to help two big companies that handle lots of money and stocks work better together, make sure everything is fair, and share helpful information more safely. People can share their thoughts on this change until February 13, 2025.