Standards for Covered Clearing Agencies for U.S. Treasury Securities and Application of the Broker-Dealer Customer Protection Rule With Respect to U.S. Treasury Securities
Abstract
The Securities and Exchange Commission ("Commission") is adopting rules under the Securities Exchange Act of 1934 ("Exchange Act") to amend the standards applicable to covered clearing agencies for U.S. Treasury securities to require that such covered clearing agencies have written policies and procedures reasonably designed to require that every direct participant of the covered clearing agency submit for clearance and settlement all eligible secondary market transactions in U.S. Treasury securities to which it is a counterparty. In addition, the Commission is adopting additional amendments to the Covered Clearing Agency Standards with respect to risk management. These requirements are designed to protect investors, reduce risk, and increase operational efficiency. Finally, the Commission is amending the broker-dealer customer protection rule to permit margin required and on deposit with covered clearing agencies for U.S. Treasury securities to be included as a debit in the reserve formulas for accounts of customers and proprietary accounts of broker-dealers ("PAB"), subject to certain conditions.
Federal Register Source
This document is published by the Office of the Federal Register, National Archives and Records Administration. Access the full regulatory text, preamble, and docket comments below.
View Full Text on FederalRegister.gov →Opens in new tab · federalregister.gov
Other Rules from SEC
Frequently Asked Questions
What is the 2023-27860 Federal Register document?
Document 2023-27860 is a Final Rule published by the Securities and Exchange Commission in the Federal Register on January 16, 2024, with an effective date of March 18, 2024. The Securities and Exchange Commission ("Commission") is adopting rules under the Securities Exchange Act of 1934 ("Exchange Act") to amend the standards applicable to covered clearing agencies for U.S. Treasury securities to require that such covered clearing agencies have written policies and procedures reasonably designed to require that every direct participant of the covered clearing agency submit for clearance and settlement all eligible secondary market transactions in U.S. Treasury securities to which it is a counterparty. In addition, the Commission is adopting additional amendments to the Covered Clearing Agency Standards with respect to risk management. These requirements are designed to protect investors, reduce risk, and increase operational efficiency. Finally, the Commission is amending the broker-dealer customer protection rule to permit margin required and on deposit with covered clearing agencies for U.S. Treasury securities to be included as a debit in the reserve formulas for accounts of customers and proprietary accounts of broker-dealers ("PAB"), subject to certain conditions. View the original at https://www.federalregister.gov/documents/2024/01/16/2023-27860/standards-for-covered-clearing-agencies-for-us-treasury-securities-and-application-of-the.
Is document 2023-27860 an economically significant rule?
No. Document 2023-27860 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.