[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8964-8968]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03092]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88163; File No. SR-NSCC-2020-002]


Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Filing of Proposed Rule Change to Enhance the 
Calculation of the Family-Issued Securities Charge

February 11, 2020.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on January 28, 2020, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') the proposed rule change as described in Items I, II 
and III below, which Items have been prepared by the clearing 
agency.\3\ The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On January 28, 2020, NSCC filed this proposed rule change as 
an advance notice (SR-NSCC-2020-801) with the Commission pursuant to 
Section 806(e)(1) of Title VIII of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act entitled the Payment, Clearing, and 
Settlement Supervision Act of 2010, 12 U.S.C. 5465(e)(1), and Rule 
19b-4(n)(1)(i) under the Act, 17 CFR 240.19b-4(n)(1)(i). A copy of 
the advance notice is available at http://www.dtcc.com/legal/sec-rule-filings.aspx.
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I. Clearing Agency's Statement of the Terms of Substance of the 
Proposed Rule Change

    The proposed rule change consists of modifications to NSCC's Rules 
and Procedures (``Rules'') \4\ in order to enhance the calculation of 
NSCC's existing charge applied to long positions in Family-Issued 
Securities \5\ (``FIS Charge'') by using the same haircut percentages 
for all Members and no longer using Members' ratings on the Credit Risk 
Rating Matrix (``CRRM'') \6\ in calculating this charge, as described 
below.
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    \4\ Terms not defined herein are defined in the Rules, available 
at www.dtcc.com/~/media/Files/Downloads/legal/rules/nscc_rules.pdf.
    \5\ A Family-Issued Security is defined in Rule 1 (Definitions 
and Descriptions) of the Rules as ``a security that was issued by a 
Member or an affiliate of that Member.'' Supra note 4.
    \6\ See Rule 1 and Section 4 of Rule 2B of the Rules, supra note 
4. See also Securities Exchange Act Release Nos. 80734 (May 19, 
2017), 82 FR 24177 (May 25, 2017) (SR-DTC-2017-002, SR-FICC-2017-
006, SR-NSCC-2017-002); and 80731 (May 19, 2017), 82 FR 24174 (May 
25, 2017) (SR-DTC-2017-801, SR-FICC-2017-804, SR-NSCC-2017-801).
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency included 
statements concerning the purpose of and basis for the proposed rule 
change and discussed any comments it received on the proposed rule 
change. The text of these statements may be examined at the places 
specified in Item IV below. The clearing agency has prepared summaries, 
set forth in sections A, B, and C below, of the most significant 
aspects of such statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis 
for, the Proposed Rule Change

1. Purpose
    NSCC is proposing to modify the Rules to enhance the calculation of 
the FIS Charge by using the same haircut percentages for all Members 
and no longer using Members' ratings on the CRRM in calculating this 
charge. By using the same haircut percentages to calculate the FIS 
Charge for all Members, NSCC believes this proposed enhancement would 
better mitigate the specific wrong-way risk posed by long positions in 
Family-Issued Securities that the charge was designed to address, as 
described below.
Background
    As a central counterparty, NSCC occupies an important role in the 
securities settlement system by interposing itself between 
counterparties to financial transactions, thereby reducing the risk 
faced by participants and contributing to global financial stability. 
The effectiveness of a central counterparty's risk controls and the 
adequacy of its financial resources are critical to achieving these 
risk-reducing goals. As part of its market risk management strategy, 
NSCC manages its credit exposure to Members by determining the 
appropriate Required Fund Deposits to the Clearing Fund and monitoring 
its sufficiency, as provided for in the Rules.\7\ The Required Fund 
Deposit serves as each Member's margin.
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    \7\ See Rule 4 (Clearing Fund) and Procedure XV (Clearing Fund 
Formula and Other Matters) of the Rules, supra note 4.

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[[Page 8965]]

    The objective of a Member's Required Fund Deposit is to mitigate 
potential losses to NSCC associated with liquidating a Member's 
portfolio in the event NSCC ceases to act for that Member (hereinafter 
referred to as a ``default'').\8\ The aggregate of all Members' 
Required Fund Deposits constitutes the Clearing Fund of NSCC.\9\ NSCC 
may access its Clearing Fund should a defaulting Member's own Required 
Fund Deposit be insufficient to satisfy losses to NSCC caused by the 
liquidation of that Member's portfolio.\10\
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    \8\ The Rules identify when NSCC may cease to act for a Member 
and the types of actions NSCC may take. For example, NSCC may 
suspend a firm's membership with NSCC or prohibit or limit a 
Member's access to NSCC's services in the event that Member defaults 
on a financial or other obligation to NSCC. See Rule 46 
(Restrictions on Access to Services) of the Rules, supra note 4.
    \9\ See Rule 4 (Clearing Fund) of the Rules, supra note 4.
    \10\ Id.
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    Pursuant to the Rules, each Member's Required Fund Deposit amount 
consists of a number of applicable components, each of which is 
calculated to address specific risks faced by NSCC, as identified 
within Procedure XV of the Rules.\11\ NSCC regularly assesses the 
market, liquidity and other risks that its margining methodologies are 
designed to mitigate to evaluate whether margin levels are commensurate 
with the particular risk attributes of each relevant product, 
portfolio, and market.
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    \11\ Supra note 4.
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    Among the various risks that NSCC considers when evaluating the 
effectiveness of its margining methodology are its counterparty risks, 
including wrong-way risk. In particular, NSCC seeks to identify and 
mitigate its exposures to specific wrong-way risk, which is defined as 
the risk that an exposure to a counterparty is highly likely to 
increase when the creditworthiness of that counterparty 
deteriorates.\12\ NSCC has identified exposure to specific wrong-way 
risk when it acts as central counterparty to a Member with long 
positions in Family-Issued Securities. In the event a Member with long 
positions in Family-Issued Securities defaults, NSCC would close out 
those positions following a likely drop in the creditworthiness of the 
issuer, possibly resulting in a loss to NSCC.
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    \12\ See Principles for financial market infrastructures, issued 
by the Committee on Payment and Settlement Systems and the Technical 
Committee of the International Organization of Securities 
Commissions, pg. 47 n.65 (April 2012), available at http://www.bis.org/publ/cpss101a.pdf.
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    In order to address this exposure to specific wrong-way risk, NSCC 
implemented the FIS Charge in 2015.\13\ The FIS Charge is applied to a 
Member's long positions in Family-Issued Securities, which are the 
positions NSCC would need to sell into the market following a Member 
default.\14\
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    \13\ See Securities Exchange Act Release No. 76077 (October 5, 
2015), 80 FR 61256 (October 9, 2015) (SR-NSCC-2015-003) (``Initial 
FIS Filing'').
    \14\ Short positions in Family-Issued Securities are not subject 
to the FIS Charge and are subject to the applicable volatility 
charge, as provided for under the Rules. See Sections 
I.(A)(1)(a)(iv) and I.(A)(2)(a)(iv) of Procedure XV (Clearing Fund 
Formula and Other Matters) of the Rules, supra note 4.
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    When the FIS Charge was initially implemented, it was only applied 
to Members that were placed on the Watch List based on the CRRM 
rating.\15\ As part of its ongoing monitoring of its membership, NSCC 
utilizes the internal CRRM to evaluate its credit risk exposures to its 
Members based on a scale from strongest to weakest.\16\ Members that 
fall within the higher risk rating categories are considered on NSCC's 
Watch List and may be subject to enhanced surveillance or additional 
margin charges, as permitted under the Rules.\17\ Therefore, the FIS 
Charge was applied only to Members on the Watch List based on the 
reasoning that these Members present a heightened credit risk to NSCC 
or have demonstrated higher risk related to their ability to meet 
settlement. However, in the Initial FIS Filing, NSCC proposed to 
further evaluate its exposure to wrong-way risk presented by positions 
in Family-Issued Securities by reviewing the impact of expanding the 
application of the FIS Charge to positions in Family-Issued Securities 
of all Members.\18\
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    \15\ See supra note 13.
    \16\ See supra note 6.
    \17\ Id.
    \18\ Supra note 13, at 61257.
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    Following that evaluation, NSCC implemented the current methodology 
for calculating the FIS Charge, which expanded the application of the 
charge to all Members, but continues to take into account Members' 
ratings on the CRRM in calculating the applicable charge.\19\ 
Therefore, under the current methodology, in calculating its Members' 
Required Fund Deposits, NSCC first excludes long positions in Family-
Issued Securities of Members from the applicable volatility charge, and 
instead charges an amount calculated by multiplying the absolute value 
of the long Net Unsettled Positions (as such term is defined in 
Procedure XV of the Rules) in that Member's Family-Issued Securities by 
a percentage that is no less than 40 percent.\20\ The percentage that 
is used in calculating the FIS Charge depends on a Member's rating on 
the CRRM. Under Procedure XV of the Rules, long Net Unsettled Positions 
in (1) fixed income securities that are Family-Issued Securities are 
charged a haircut rate of no less than 80 percent for Members that are 
rated 6 or 7 on the CRRM, and no less than 40 percent for Members that 
are rated 1 through 5 on the CRRM; and (2) equity securities that are 
Family-Issued Securities are charged a haircut rate of 100 percent for 
Members that are rated 6 or 7 on the CRRM, and no less than 50 percent 
for Members that are rated 1 through 5 on the CRRM.\21\ The haircut 
rates used in the FIS Charge as applied to positions in fixed income 
securities were calibrated based on historical corporate issue recovery 
rate data and address the risk that the Family-Issued Securities of a 
Member would be devalued in the event of that Member's default.
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    \19\ See Securities Exchange Act Release Nos. 81550 (September 
7, 2017), 82 FR 43061 (September 13, 2017) (SR-NSCC-2017-010); and 
81545 (September 7, 2017), 82 FR 43054 (September 13, 2017) (SR-
NSCC-2017-804).
    \20\ See Sections I.(A)(1)(a)(iv) and I.(A)(2)(a)(iv) of 
Procedure XV (Clearing Fund Formula and Other Matters) of the Rules, 
supra note 4.
    \21\ Id.
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Proposed Change
    NSCC is now proposing to enhance the methodology for calculating 
the FIS Charge by using the higher applicable percentage for all 
Members, and no longer using a Member's CRRM rating in the calculation.
    Since implementation of the current calculation, NSCC has continued 
to monitor its exposure to specific wrong-way risk and determined that 
the risk characteristics to be considered when margining Family-Issued 
Securities extend beyond Members' creditworthiness as measured through 
the CRRM. More specifically, NSCC believes it may be exposed to 
specific wrong-way risk despite a Members' rating on the CRRM, and NSCC 
can better mitigate its exposure to this risk by calculating the FIS 
Charge without considering Members' CRRM ratings. While the current 
methodology appropriately assumes that Members with a higher rating on 
the CRRM present a heightened credit risk to NSCC or have demonstrated 
higher risk related to their ability to meet settlement, NSCC believes 
this approach does not take into account the risk that a firm may 
default due to unanticipated causes (referred to as a ``jump-to-
default'' scenario) not captured by the CRRM rating. The CRRM rating 
necessarily relies on historical data as a predictor of future risks. 
Jump-to-default scenarios

[[Page 8966]]

are triggered by unanticipated causes that could not be predicted based 
on historical trends or data, for example fraud or other bad acts by 
management. The proposed change is designed to improve NSCC's ability 
to cover the specific wrong-way risk posed by long positions in Family-
Issued Securities by applying the higher applicable percentage in 
calculating the FIS Charge for all Members.
    In order to implement this proposal, NSCC would amend Sections 
I.(A)(1)(a)(iv) and I.(A)(2)(a)(iv) of Procedure XV of the Rules, which 
describe the methodology for calculating the FIS Charge, and provide 
that (1) fixed income securities that are Family-Issued Securities 
shall be charged a haircut rate of no less than 80 percent; and (2) 
equity securities that are Family-Issued Securities shall be charged a 
haircut rate of 100 percent.
2. Statutory Basis
    NSCC believes that the proposed change is consistent with the 
requirements of the Act and the rules and regulations thereunder 
applicable to a covered clearing agency. In particular, NSCC believes 
that the proposed change is consistent with Section 17A(b)(3)(F) of the 
Act,\22\ and Rules 17Ad-22(e)(4)(i),\23\ and (e)(6)(i) and (v),\24\ 
each promulgated under the Act, for the reasons described below.
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    \22\ 15 U.S.C. 78q-1(b)(3)(F).
    \23\ 17 CFR 240.17Ad-22(e)(4)(i).
    \24\ 17 CFR 240.17Ad-22(e)(6)(i) and (v).
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    Section 17A(b)(3)(F) of the Act requires, in part, that the Rules 
be designed to promote the prompt and accurate clearance and settlement 
of securities transactions and to protect investors and the public 
interest.\25\ The proposed change would enhance the margin methodology 
applied to long positions in Family-Issued Securities by using the 
higher applicable percentage for all Members, rather than considering 
Members' CRRM ratings in the calculation. The proposal would improve 
NSCC's ability to mitigate specific wrong-way risk exposures in a jump-
to-default scenario and, in this way, would assist NSCC in collecting 
margin that more accurately reflects NSCC's exposure to a Member that 
clears Family-Issued Securities. The proposal would also assist NSCC in 
its continuous efforts to improve the reliability and effectiveness of 
its risk-based margining methodology by taking into account specific 
wrong-way risk. As such, the proposal would help NSCC, as a central 
counterparty, promote robust risk management, and thus promote the 
prompt and accurate clearance and settlement of securities 
transactions, as well as, in general, protect investors and the public 
interest, consistent with the requirements of Section 17A(b)(3)(F) of 
the Act.\26\
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    \25\ 15 U.S.C. 78q-1(b)(3)(F).
    \26\ Id.
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    Rule 17Ad-22(e)(4)(i) under the Act requires that each covered 
clearing agency establish, implement, maintain and enforce written 
policies and procedures reasonably designed to effectively identify, 
measure, monitor, and manage its credit exposures to participants and 
those arising from its payment, clearing, and settlement processes, 
including by maintaining sufficient financial resources to cover its 
credit exposure to each participant fully with a high degree of 
confidence.\27\ The specific wrong-way risk presented by Family-Issued 
Securities is the risk that, in the event a Member with unsettled long 
positions in Family-Issued Securities defaults, NSCC would close out 
those positions following a likely drop in the credit-worthiness of the 
issuer, possibly resulting in a loss to NSCC. The haircut rates used in 
calculating the FIS Charge as applied to positions in fixed income 
securities were calibrated based on historical corporate issue recovery 
rate data, and, therefore, address the risk that the Family-Issued 
Securities of a Member would be devalued in the event of that Member's 
default. The proposal to apply the higher haircuts to all Members would 
assist NSCC in addressing specific wrong-way risk exposures in a jump-
to-default scenario. By addressing this additional risk exposure, NSCC 
believes the proposal would allow it to calculate the FIS Charge in a 
way that more accurately reflects the risk characteristics of Family-
Issued Securities. The proposal would, therefore, permit NSCC to more 
accurately identify, measure, monitor and manage its credit exposures 
to Members with long positions in Family-Issued Securities, and would 
assist NSCC in collecting and maintaining financial resources that 
reflect its credit exposures to those Members. Therefore, NSCC believes 
the proposed change is consistent with Rule 17Ad-22(e)(4)(i).\28\
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    \27\ 17 CFR 240.17Ad-22(e)(4)(i).
    \28\ Id.
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    Rule 17Ad-22(e)(6)(i) under the Act requires that each covered 
clearing agency that provides central counterparty services establish, 
implement, maintain and enforce written policies and procedures 
reasonably designed to cover its credit exposures to its participants 
by establishing a risk-based margin system that, at a minimum, 
considers, and produces margin levels commensurate with, the risks and 
particular attributes of each relevant product, portfolio, and 
market.\29\ Rule 17Ad-22(e)(6)(v) under the Act requires that each 
covered clearing agency that provides central counterparty services 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to cover its credit exposures to its 
participants by establishing a risk-based margin system that, at a 
minimum, uses an appropriate method for measuring credit exposure that 
accounts for relevant product risk factors and portfolio effects across 
products.\30\
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    \29\ 17 CFR 240.17Ad-22(e)(6)(i).
    \30\ 17 CFR 240.17Ad-22(e)(6)(v).
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    As stated above, long positions in Family-Issued Securities present 
NSCC with exposure to specific wrong-way risk that, in the event a 
Member with these positions defaults, NSCC would close out those 
positions following a likely drop in the credit-worthiness of the 
issuer, possibly resulting in a loss to NSCC. The haircut rates used in 
the current methodology would continue to be used in the proposed 
methodology and as applied to positions in fixed income securities were 
calibrated based on historical corporate issue recovery rate data and 
address the risk that the Family-Issued Securities of a Member would be 
devalued in the event of that Member's default. Therefore, the 
calculation of the charge would continue to reflect the risk 
characteristics of Family-Issued Securities. As described above, the 
proposed change to apply the higher haircut rates to all Members would 
improve NSCC's ability to mitigate its exposure to specific wrong-way 
risk in a jump-to-default scenario. In this way, the proposal would 
assist NSCC in maintaining a risk-based margin system that considers, 
and produces margin levels commensurate with, the risks and particular 
attributes of long positions in Family-Issued Securities. Additionally, 
NSCC believes the proposed enhancement to the methodology for 
calculating the FIS Charge is an appropriate method for measuring its 
credit exposures to its Members, because the FIS Charge would continue 
to account for the risk factors presented by these securities, i.e., 
the risk that these securities would be devalued in the event of a 
Member default. Therefore, NSCC believes the proposed change is 
consistent with Rule 17Ad-22(e)(6)(i) and (v).\31\
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    \31\ 17 CFR 240.17Ad-22(e)(6)(i) and (v).

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[[Page 8967]]

(B) Clearing Agency's Statement on Burden on Competition

    By enhancing the methodology for calculating the FIS Charge, and, 
therefore, increasing the amount of margin that Members may be charged 
under the Rules, the proposed change may impose a burden on 
competition. More specifically, those Members that are currently rated 
1-5 on the CRRM would be subject to an increased FIS Charge relative to 
the current applicable FIS Charge. However, Members' ratings on the 
CRRM are re-evaluated periodically and change from time to time. 
Therefore, all Members could have become subject to the higher FIS 
Charge at any time under the current methodology if their CRRM rating 
was increased to a 6 or 7 following a periodic reevaluation of their 
rating. Similarly, the volume of Net Unsettled Positions in Family-
Issued Securities in a Member's portfolio could change periodically. 
The proposed enhancement to the calculation of the FIS Charge would be 
imposed on all Members on an individualized basis, based on the 
positions in their cleared portfolio, in an amount reasonably 
calculated to mitigate the risks posed to NSCC by those positions. 
Therefore, Members that present similar Net Unsettled Positions would 
have similar impacts on their Required Fund Deposits, and, as such, 
NSCC does not believe any burden on competition imposed by the proposed 
change would be significant.
    Further, NSCC believes that any burden on competition imposed by 
the proposed change would be both necessary and appropriate in 
furtherance of NSCC's efforts to mitigate its risk exposures and meet 
the requirements of the Act,\32\ as described in this filing and 
further below.
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    \32\ 15 U.S.C. 78q-1(b)(3)(I).
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    NSCC believes that the above described burden on competition that 
may be created by the proposed changes would be necessary in 
furtherance of the purposes of the Act, specifically Section 
17A(b)(3)(F) of the Act,\33\ because, as described above, the Rules 
must be designed to promote the prompt and accurate clearance and 
settlement of securities transactions and to protect investors and the 
public interest.
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    \33\ 15 U.S.C. 78q-1(b)(3)(F).
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    NSCC also believes the proposed change would be necessary in order 
to support NSCC's compliance with Rules 17Ad-22(e)(4)(i), and (e)(6)(i) 
and (v),\34\ each promulgated under the Act, which require NSCC to 
establish, implement, maintain and enforce written policies and 
procedures reasonably designed to (x) effectively identify, measure, 
monitor, and manage its credit exposures to participants and those 
arising from its payment, clearing, and settlement processes, including 
by maintaining sufficient financial resources to cover its credit 
exposure to each participant fully with a high degree of confidence; 
(y) cover its credit exposures to its participants by establishing a 
risk-based margin system that, at a minimum, considers, and produces 
margin levels commensurate with, the risks and particular attributes of 
each relevant product, portfolio, and market; and (z) cover its credit 
exposures to its participants by establishing a risk-based margin 
system that, at a minimum, uses an appropriate method for measuring 
credit exposure that accounts for relevant product risk factors and 
portfolio effects across products. As described above, NSCC believes 
implementing the proposed enhancements to the FIS Charge would improve 
the risk-based methodology that NSCC employs to measure market price 
risk and would better limit NSCC's credit exposures to Members, 
consistent with these requirements.
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    \34\ 17 CFR 240.17Ad-22(e)(4) and (e)(6).
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    NSCC believes that the above described burden on competition that 
could be created by the proposed changes would be appropriate in 
furtherance of the purposes of the Act, because such changes have been 
designed to promote the prompt and accurate clearance and settlement of 
securities transactions and to protect investors and the public 
interest, as described in detail above.
    The proposed rule change would use the higher applicable haircut 
percentage in calculating the FIS Charge for all Members. These haircut 
percentages as applied to positions in fixed income securities were 
calibrated to address the risk that the Family-Issued Securities of a 
Member would be devalued in the event of that Member's default. 
Therefore, the proposed FIS Charge would better address NSCC's 
exposures to specific wrong-way risk with respect to all Members' 
positions in Family-Issued Securities, particularly in jump-to-default 
scenarios. By mitigating specific wrong-way risk for NSCC, the proposed 
change would also mitigate risk for Members, because lowering the risk 
profile for NSCC would in turn lower the risk exposure that Members may 
have with respect to NSCC in its role as a central counterparty. 
Further, NSCC believes that any burden on competition that may be 
imposed by this proposal would be appropriate in furtherance of the 
purposes of the Act, because it is designed to meet NSCC's risk 
management goals and its regulatory obligations.

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change 
Received From Members, Participants, or Others

    NSCC has not received or solicited any written comments relating to 
this proposal. NSCC will notify the Commission of any written comments 
received by NSCC.

III. Date of Effectiveness of the Proposed Rule Change, and Timing for 
Commission Action

    Within 45 days of the date of publication of this notice in the 
Federal Register or within such longer period up to 90 days (i) as the 
Commission may designate if it finds such longer period to be 
appropriate and publishes its reasons for so finding or (ii) as to 
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule 
change should be disapproved.
    The proposal shall not take effect until all regulatory actions 
required with respect to the proposal are completed.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-NSCC-2020-002 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-NSCC-2020-002. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (http://www.sec.gov/rules/sro.shtml). 
Copies of the submission, all subsequent amendments, all written 
statements

[[Page 8968]]

with respect to the proposed rule change that are filed with the 
Commission, and all written communications relating to the proposed 
rule change between the Commission and any person, other than those 
that may be withheld from the public in accordance with the provisions 
of 5 U.S.C. 552, will be available for website viewing and printing in 
the Commission's Public Reference Room, 100 F Street NE, Washington, DC 
20549 on official business days between the hours of 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of NSCC and on DTCC's website 
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-NSCC-2020-002 and should be submitted on 
or before March 10, 2020.
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    \35\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\35\
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-03092 Filed 2-14-20; 8:45 am]
 BILLING CODE 8011-01-P