Search Results for keywords:"financial stability"

ICE Clear Credit LLC (ICC) has filed a proposed rule change with the Securities and Exchange Commission (SEC) to update its Treasury Operations Policies and Procedures. The main purpose is to formally document their intraday margin call procedures, which are important for managing cash and collateral to ensure financial stability in volatile market conditions. These changes aim to enhance transparency without altering current practices, aligning with SEC regulations that require a risk-based margin system. The SEC is seeking public comments on this proposal.

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.

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 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 National Securities Clearing Corporation (NSCC) has proposed a rule change related to how it handles disruptions in participant systems to ensure the safety and continuity of its operations. This change would update definitions and procedures within its rules to better manage events that could impact its systems, improve notification and reporting requirements when disruptions occur, and set new standards for how an affected participant could be reconnected. These measures aim to enhance the NSCC's ability to maintain efficient and secure securities transactions and protect the broader financial market from the effects of such disruptions. The Securities and Exchange Commission is inviting public comments on this proposal.

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 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 Office of the Comptroller of the Currency, the Federal Reserve Board, and the Federal Deposit Insurance Corporation have finalized a rule called the Net Stable Funding Ratio (NSFR). This rule is designed to ensure large banking organizations maintain stable funding over a one-year period to support their various financial activities. By requiring stable funding, the rule aims to reduce liquidity risks, ensuring banks can continue to operate smoothly even in challenging economic conditions. This rule applies to large U.S. banks and some foreign banks with significant assets, enhancing the overall stability of the financial system.

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 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.