18 Jun 2025
📊New SEC Regulations for Clearing Agencies on Securities Valuation
Self-Regulatory Organizations; The Depository Trust Company; Fixed Income Clearing Corporation; National Securities Clearing Corporation; Notice of Filing of Partial Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Partial Amendment No. 1, To Update the Clearing Agency Securities Valuation Framework To Include Use of Substantive Inputs
Summary
The SEC has approved partial amendments to rule changes concerning the Clearing Agency Securities Valuation Framework. This update mandates the use of substantive inputs alongside timely price data for risk management and margin calculations, enhancing operational stability and regulatory compliance in the clearing process.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule changes establish new regulatory requirements regarding the valuation framework used by clearing agencies. This impacts businesses engaged in trading and clearing as they need to align processes with these updated requirements, which include evaluating substantive inputs for margin calculations and maintaining more robust risk management, thus increasing compliance and operational costs.