22 Apr 2025
💧LCH SA's Proposed Rule Change on Liquidity Risk Framework
Self-Regulatory Organizations; LCH SA; Notice of Filing of Proposed Rule Change Relating to Revisions to its Liquidity Risk Modelling Framework
Summary
The Securities and Exchange Commission published a notice concerning LCH SA’s proposed amendments to its Liquidity Risk Modelling Framework. The revisions aim to enhance the management of liquidity risks and clarify the treatment of collateral by detailing processes for liquidity needs arising from daily settlement, thereby aligning operational procedures with empirical data and regulatory standards.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The text outlines proposed changes by LCH SA concerning liquidity risk management that affect regulatory compliance and liquidity requirements for clearing agencies. Enhanced rules around liquidity models and collateral impact financial obligations and operational planning for businesses involved in clearing and settlement processes.