📊LCH SA's Proposed Rule Change on Clearing Member Testing Requirements
Self-Regulatory Organizations; LCH SA; Notice of Filing of Proposed Rule Change Relating to Revisions to Its Rule Book and FCM/BD Regulations Related To Clearing Member Testing Requirements
Summary
LCH SA is proposing amendments to its rulebook to require Clearing Members to participate in testing of business continuity and disaster recovery plans, as well as comply with new margin adequacy regulations. These changes aim to enhance operational resilience and compliance under the Securities Exchange Act. The proposal seeks comment from stakeholders and emphasizes the importance of thorough testing to maintain orderly market functions.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change by LCH SA mandates that Clearing Members participate in mandatory testing of business continuity and disaster recovery plans, which imposes compliance obligations and potential costs. Compliance with new margin adequacy requirements further affects financial operations and risk management strategies.