11 Mar 2025
💰Proposed Volatility Event Charge Affects FICC Member Obligations
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Adopt a Volatility Event Charge
Summary
The Securities and Exchange Commission is reviewing a proposal from the Fixed Income Clearing Corporation to adopt a Volatility Event Charge. This charge aims to enhance risk management during periods of heightened market volatility by adjusting margin requirements to improve the resilience of clearing operations.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed Volatility Event Charge will require businesses to increase their Required Fund Deposits and Segregated Customer Margin Requirements. This change aims to mitigate risks associated with scheduled market events, directly impacting financial obligations for FICC members.