5 Aug 2025
📈Proposed Rule Change on Backtesting Charge Impacts Margin Requirements
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change To Revise the Definition of the Backtesting Charge
Summary
The Securities and Exchange Commission has published a notice regarding a proposed rule change by the Fixed Income Clearing Corporation to clarify and modify the definition of the Backtesting Charge in its Government Securities Division Rulebook. The changes aim to enhance understanding and accuracy in margin calculations, potentially increasing margin requirements for affected members.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule changes by the FICC concerning the Backtesting Charge affect how financial obligations for members are assessed, directly impacting their margin requirements. The changes aim to enhance transparency, allowing businesses to understand their credit exposure better, which could influence financial planning and compliance obligations.