Search Results for keywords:"risk-based margin systems"

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.

The Securities and Exchange Commission received a proposed rule change from the Fixed Income Clearing Corporation (FICC). The rule update aims to amend the Clearing Agency Securities Valuation Framework by ensuring reliable data inputs for risk-based margin systems, in line with recent amendments to the Commission's Standards for Covered Clearing Agencies. These changes encompass adding new sections to address various data inputs, a glossary for key terms, and enhancements to policies for handling data that may be unavailable or unreliable. The goal is to improve FICC's processes for managing margins and collateral to continue safeguarding securities and ensuring accurate transaction settlements.

The Securities and Exchange Commission has received a proposed rule change from The Depository Trust Company (DTC) to update its Securities Valuation Framework. This change is intended to include the use of substantive inputs in the clearing agencies’ risk-based margin systems, following newly adopted rules by the Commission. The proposal includes adding a section to the Framework about handling margin input data, introducing a glossary, and making clarifying changes concerning securities valuation. The goal is to ensure that reliable price data and other essential inputs are used, and to have policies for when such data are unavailable.