15 Sep 2025
📊Proposed Rule Change on Backtesting Charge and Margin Requirements
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Order Approving of Proposed Rule Change To Revise the Definition of the Backtesting Charge
Summary
The SEC has approved a proposed rule change by the Fixed Income Clearing Corporation to revise the definition of the Backtesting Charge in its government securities division. The revisions aim to clarify margin calculations and enhance the ability to manage credit risk, ensuring sufficient financial resources are available to accommodate potential member defaults.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The content involves a proposed rule change regarding the Backtesting Charge, affecting how member firms assess margin requirements. This directly impacts compliance and risk management for financial institutions involved in government securities, making it crucial for business strategy and financial planning.