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📈Proposed Rule Change for Basis Risk Haircut Charge by FICC

The Securities and Exchange Commission has announced a proposed rule change by the Fixed Income Clearing Corporation to add a basis risk haircut charge into margin models. The change aims to enhance the management of market risk associated with mortgage-backed securities and clarify methodologies in the QRM Methodology Document.

📈Proposed Rule Change on Backtesting Charge Impacts Margin Requirements

The Securities and Exchange Commission has published a notice regarding a proposed rule change by the Fixed Income Clearing Corporation to clarify and modify the definition of the Backtesting Charge in its Government Securities Division Rulebook. The changes aim to enhance understanding and accuracy in margin calculations, potentially increasing margin requirements for affected members.

📊Proposed Amendments to MBSD Rule 33 by FICC Enhancing Flexibility

The proposed rule change aims to amend MBSD Rule 33 to allow the Fixed Income Clearing Corporation to waive, suspend, or extend rules beyond emergency circumstances. The amendments intend to streamline operations while ensuring compliance and maintaining investor protections, enabling quicker responses to various market situations and promoting efficiency in securities transactions.

📈Proposed FICC Rule Change Enhances Default Management Procedures

The Securities and Exchange Commission has published a proposal from the Fixed Income Clearing Corporation to modify its Government Securities Division Rulebook. The changes aim to enhance understanding of default management procedures and facilitate transfers of indirect participant activity, ultimately promoting greater financial stability and clarity within the securities market.

📈FICC Proposes Changes to Intraday Margin Collection Rules

The SEC is considering proposed rule changes by the FICC to enhance the collection of intraday margin for clearing agencies. These updates aim to comply with recently adopted standards, ensure effective monitoring of exposure, and clarify procedures for margin collection. The changes provide clearer guidelines for when and how intraday margin calls will be made, enhancing transparency and operational readiness for businesses involved in fixed income transactions.

📈Business Implications of the Proposed Intraday Mark-to-Market Charge

The SEC has published a notice regarding the Fixed Income Clearing Corporation's proposal to implement an Intraday Mark-to-Market Charge at GSD. This rule change aims to mitigate intraday risk exposures for members by assessing fees based on portfolio fluctuations. Comments are being sought from interested parties to evaluate the implications and facilitate broader market safety.

📈FICC Proposes Amendments to Risk Management Framework

The SEC published a notice regarding FICC's proposed rule change to amend its Risk Management Framework. The changes aim to clarify the quarterly escalation process, annual reviews, and eliminate references to the Systemic Risk Council. Stakeholders are invited to submit comments regarding the proposed changes.

💰FICC Proposes Rule Change on Funds-Only Settlement Amount Payments

The Securities and Exchange Commission publishes a notice regarding the Fixed Income Clearing Corporation's proposed rule change to modify Funds-Only Settlement Amount payment provisions within its Government Securities Division Rulebook. The changes aim to clarify settlement designations and discharge obligations upon payment, enhancing compliance for participants in the securities market. Comments are invited from interested parties.

📊FICC Proposal on Voluntary Withdrawal Provisions – Key Business Implications