📈FICC Proposed Rule Changes on Default Management and Porting
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Amendment No. 1, and Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Amendment No. 1, To Modify the GSD Rulebook Relating to Default Management and Porting With Respect to Indirect Participant Activity
Summary
The Securities and Exchange Commission published a notice regarding the FICC's proposed amendment to enhance its default management rules. The changes aim to clarify the management of government securities and improve operational efficiency for indirect participants, including mechanisms for liquidation of transactions amid defaults. Comments and further evaluations are invited from stakeholders in the financial industry.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The text outlines proposed rule changes by the Fixed Income Clearing Corporation (FICC) related to default management and participant activity, which affects compliance and regulatory requirements for businesses in the financial sector. Businesses engaged in securities transactions must prepare for potential changes in their operations and risk management strategies due to these modifications.