💼SEC's FICC Proposes New Collateral-in-Lieu Offering Rules
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Establish a New Collateral-in-Lieu Offering Within the Sponsored GC Service, and Expand the Sponsored GC Service To Allow a Sponsoring Member To Submit for Clearing a “Done-Away” Sponsored GC Trade
Summary
The SEC has released details on proposed rule changes by the Fixed Income Clearing Corporation to establish a new Collateral-in-Lieu offering, expanding access to clearing services for registered investment companies. This change aims to improve operational efficiency, reduce costs, and facilitate trading by allowing for done-away transactions and eliminating double margining requirements.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed regulatory changes create significant implications for financial firms by modifying the clearance and settlement processes, thereby facilitating greater access for registered investment companies and other cash providers. This includes eliminating double margining and enabling done-away transactions, which can improve operational efficiency and reduce costs.