⚖️Proposed Disruption Rule Change by NSCC and SEC
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing of Proposed Rule Change Relating to a Participant System Disruption
Summary
The SEC has published a notice regarding the NSCC's proposed rule change to update the Disruption Rules, focusing on system interruptions. Key changes include refined definitions, enhanced notification requirements, and provisions for reconnection of disrupted systems, aiming to improve operational resilience and risk management across associated clearing agencies and participants.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The notice details proposed amendments to the Disruption Rules affecting obligations for DTCC Systems Participants related to system disruptions, thereby imposing compliance requirements and impacting operational risks for businesses within the clearing and settlement industry. This may require businesses to adapt their processes and systems to comply with new reporting and reconnection conditions.