[Federal Register Volume 88, Number 219 (Wednesday, November 15, 2023)]
[Notices]
[Pages 78404-78407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25106]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-98882; File No. SR-FICC-2023-014]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Order Approving Proposed Rule Change Relating to the GSD and MBSD 
Schedules of Haircuts for Eligible Clearing Fund Securities

November 8, 2023.

I. Introduction

    On September 22, 2023, Fixed Income Clearing Corporation (``FICC'') 
filed with the Securities and Exchange Commission (``Commission'') 
proposed rule change SR-FICC-2023-014 to modify the GSD and MBSD 
Schedules of Haircuts for Eligible Clearing Fund Securities, and to 
remove them and the related concentration limits from the respective 
Rules, and make other clarifying changes (``Proposed Rule Change''), 
pursuant to section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder.\2\ The Proposed Rule Change 
was published for comment in the Federal Register on October 4, 
2023.\3\ The Commission has received no comments on the Proposed Rule 
Change. For the reasons discussed below, the Commission is approving 
the Proposed Rule Change.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 985925 (Sept. 28, 
2023), 88 FR 68803 (Oct. 4, 2023) (File No. SR-FICC-2023-014) 
(``Notice of Filing'').
    \4\ Capitalized terms not defined herein are defined in the GSD 
Rulebook (``GSD Rules''), available at https://www.dtcc.com/~/media/
Files/Downloads/legal/rules/ficc_gov_rules.pdf, or the MBSD Rulebook 
(``MBSD Rules''), available at https://www.dtcc.com/~/media/Files/
Downloads/legal/rules/ficc_mbsd_rules.pdf.
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II. Background

    FICC is a central counterparty (``CCP''), which means it interposes 
itself as the buyer to every seller and seller to every buyer for the 
financial transactions it clears. FICC's Government Securities Division 
(``GSD'') provides CCP services for the U.S. Government securities 
market, and FICC's Mortgage Backed-Securities Division (``MBSD'') 
provides CCP services for the U.S. mortgage-backed securities 
markets.\5\ As such, FICC is exposed to the risk that one or more of 
its members may fail to make a payment or to deliver securities.
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    \5\ GSD and MBSD maintain separate sets of rules, margin models, 
and clearing funds.
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    A key tool that FICC uses to manage its credit exposures to its 
members is the daily collection of margin (referred to as ``Required 
Fund Deposit'' in the GSD and MBSD Rules) from each member.\6\ The 
aggregated amount of all GSD and MBSD members' margin constitutes the 
GSD Clearing Fund and MBSD Clearing Fund. The objective of the GSD and 
MBSD Clearing Funds is to mitigate potential losses to FICC associated 
with liquidating a member's portfolio in the event FICC ceases to act 
for that member (hereinafter referred to as a ``default'').\7\ FICC 
would be able to access the Clearing Fund should a defaulting member's 
own margin be insufficient to satisfy losses to FICC caused by the 
liquidation of that member's portfolio.
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    \6\ See GSD Rule 4 and MBSD Rule 4, supra note 4 (requiring 
members to make Required Fund Deposits to the GSD and MBSD Clearing 
Funds, as applicable, with the amount of each member's deposit being 
determined by FICC in accordance with these rules).
    \7\ The GSD Rules and MBSD Rules each identify when FICC may 
cease to act for a member and the types of actions FICC may take. 
For example, FICC may suspend a firm's membership with FICC or 
prohibit or limit a member's access to FICC's services in the event 
that member defaults on a financial or other obligation to FICC. See 
GSD Rule 21 (Restrictions on Access to Services) and MBSD Rule 14 
(Restrictions on Access to Services), supra note 4.
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    A member may provide its required margin in the form of cash or an 
open account indebtedness secured by Eligible Clearing Fund 
Securities.\8\ Eligible Clearing Fund Securities are defined to include 
certain agency, mortgage-backed, and Treasury securities.\9\ These 
securities are valued based on the prior Business Day's closing market 
price, less a haircut, and may be subject to a concentration limit.\10\ 
FICC states that haircuts are used to protect FICC and its members from 
price fluctuations, i.e., if FICC is required to liquidate collateral 
of an insolvent member and such collateral is worth less at the time of 
liquidation than when it is pledged to FICC.\11\ FICC also states that 
concentration limits are intended to reduce FICC's risk by limiting the 
percentage of certain types of Eligible Clearing Fund Securities 
pledged by members to secure the Clearing Fund deposits, because when a 
member's portfolio contains large net unsettled positions in a 
particular group of securities with a similar risk profile or in a 
particular asset type, such securities could present additional risk to 
FICC.\12\
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    \8\ See GSD Rule 4, Section 3 (Form of Deposit) and MBSD Rule 4, 
Section 3 (Form of Deposit), supra note 4.
    \9\ See GSD Rule 1 and MBSD Rule 1 (defining what constitutes 
Eligible Clearing Fund Securities and the components thereof, which 
are Eligible Clearing Fund Agency Securities, Eligible Clearing Fund 
Mortgage-Backed Securities, and Eligible Clearing Fund Treasury 
Securities), supra note 4.
    \10\ See GSD Rule 4, Section 3b and MBSD Rule 4, Section 3b, 
supra note 4 (referencing the applicability of haircuts and 
concentration limits to certain types of Eligible Clearing Fund 
Securities).
    \11\ Notice of Filing, supra note 3, 88 FR at 68804.
    \12\ Id.
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    Currently, collateral haircuts applicable to relevant security 
types and remaining maturity terms are specified as fixed percentages 
in the Schedule of Haircuts for Eligible Clearing Fund Securities in 
the GSD Rules and MBSD Rules.\13\ According to FICC and set forth in 
its internal risk management procedures, the sufficiency of collateral 
haircuts is evaluated through use of back-tests, stress-tests and 
market observations.\14\ Specifically, FICC conducts daily backtesting 
analysis by comparing the collateral haircut for each member in 
simulated liquidations with the member's actual collateral held on 
deposit at FICC.\15\ FICC escalates any exceptions that it observes to 
assess the root cause and determine whether further analysis and/or 
review would be appropriate, taking into account whether a particular 
security may present inherent volatility and/or liquidity risks that 
could likely result in an erosion in the value of the security 
exceeding the applicable collateral haircut.\16\ On a quarterly basis, 
FICC reviews the composition of the Eligible Clearing Fund Securities 
that members have pledged to secure their Required

[[Page 78405]]

Fund Deposits in order to assess the sufficiency of the collateral 
haircuts applied and whether any haircut changes would be needed, 
taking into account backtesting results, any instances where the 
simulated losses from available historical stress testing scenario 
dates have exceeded the collateral haircut values, and market 
conditions.\17\
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    \13\ See Schedule of Haircuts for Eligible Clearing Fund 
Securities in the GSD Rules and MBSD Rules, supra note 4. The 
Schedule of Haircuts for Eligible Clearing Fund Securities in the 
GSD Rules and MBSD Rules was last modified in 2011 in order to 
harmonize with the increased haircuts on clearing fund collateral at 
the National Securities Clearing Corporation, an affiliate of FICC. 
See Securities Exchange Act Release No. 64488 (May 13, 2011), 76 FR 
29018 (May 19, 2011) (SR-FICC-2011-03).
    \14\ Notice of Filing, supra note 3, 88 FR at 68804. FICC also 
filed excerpts from its internal market risk management procedures 
as Confidential Exhibit 3b to its filing.
    \15\ Id.
    \16\ Id.
    \17\ Id. at 68804-05.
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    In addition to collateral haircuts, FICC applies concentration 
limits to certain Eligible Clearing Fund Securities set forth in the 
GSD and MBSD Rules. Under these limits, no more than 20 percent of a 
member's Required Fund Deposit may be in the form of Eligible Clearing 
Fund Agency Securities that are of a single issuer and no member may 
post as eligible collateral Eligible Clearing Fund Agency Securities of 
which it is the issuer.\18\ In addition, any deposits of Eligible 
Clearing Fund Agency Securities or Eligible Clearing Fund Mortgage-
Backed Securities in excess of 25 percent of a member's Required Fund 
Deposit will be subject to a haircut that is twice the amount of the 
percentage noted in the haircut schedule, and a member may deposit 
Eligible Clearing Fund Mortgage-Backed Securities of which it is the 
issuer, however such securities will be subject to a premium haircut, 
with the initial haircut being 14 percent, and if a member also exceeds 
the 25 percent concentration limit, the haircut shall be 21 
percent.\19\
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    \18\ GSD Rule 4, Section 3b(b) and MBSD Rule 4, Section 3c(b), 
supra note 4.
    \19\ Schedule of Haircuts for Eligible Clearing Fund Securities 
in GSD and MBSD Rules, supra note 4.
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    Changes to the collateral haircuts and concentration limits are 
subject to FICC's internal governance process.\20\ According to FICC 
and based on its internal risk management procedures, if FICC 
determines that, based on the analyses that it performs, there is 
insufficient/excessive collateral haircut/concentration due to an 
identifiable cause that affected multiple members and such cause would 
likely persist based on FICC's assessment of market conditions, such 
outcome or result could cause FICC to amend the haircuts/concentration 
limits in the haircut schedule.\21\ If FICC determines that a change to 
the haircut schedule is warranted, it would document the recommendation 
and rationale for the change at the time of such determination and 
obtain approval from an executive director or above with a notice to 
the risk management committee.\22\ Before making adjustments to the 
haircut schedule, FICC measures the potential impact of such 
adjustments to ensure any impact is both necessary and appropriate.
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    \20\ Notice of Filing, supra note 3, 88 FR at 68805; see also 
note 14 supra.
    \21\ Id.
    \22\ Id.
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III. Description of the Proposed Rule Change

    In the Notice of Filing, FICC states that it has observed that 
under volatile market conditions with elevated frequency and magnitude 
of securities price movements, the collateral value of Eligible 
Clearing Fund Securities may shift in a relatively short period of time 
and the current haircuts may not sufficiently account for the change in 
value.\23\ When the erosion in the value of the Eligible Clearing Fund 
Securities exceeds the relevant haircuts, FICC is exposed to increased 
risk of potential losses associated with liquidating a member's 
portfolio in the event of a member default when the defaulting member's 
own margin is insufficient to satisfy losses to FICC caused by the 
liquidation of that member's portfolio.\24\ Similarly, when a member's 
portfolio contains large net unsettled positions in a particular group 
of securities with a similar risk profile or in a particular asset 
type, such securities could present additional risk to FICC.\25\ The 
additional risk exposures associated with liquidating a member's 
portfolio in the event of a member default could lead to an increase in 
the likelihood that FICC would need to mutualize losses among non-
defaulting members during the liquidation process.\26\ However, any 
changes to the haircuts and/or concentration limits currently requires 
a proposed rule change to be filed with the Commission.
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    \23\ Notice of Filing, supra note 3, 88 FR at 68805.
    \24\ Id.
    \25\ Id.
    \26\ Id.
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    Therefore, to provide FICC with more flexibility in adjusting the 
haircuts and concentration limits so FICC can respond to changing 
market conditions more promptly in order to mitigate the additional 
risk exposure, FICC is proposing to remove the GSD and MBSD Schedules 
of Haircuts for Eligible Clearing Fund Securities and concentration 
limits from the respective Rules, and to publish the haircuts and 
concentration limits in a haircut schedule on FICC's website.\27\
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    \27\ Specifically, FICC is proposing to delete subsections (a), 
(b) and (c) of Section 3b (Special Provisions Relating to Deposits 
of Eligible Clearing Fund Securities) in GSD Rule 4 and Section 3c 
(Special Provisions Relating to Deposits of Eligible Clearing Fund 
Securities) in MBSD Rule 4, respectively, to remove all haircuts and 
concentration limits from the Rules. FICC is also proposing to 
delete a sentence from Section 3b in GSD Rule 4 and Section 3c in 
MBSD Rule 4, respectively, that references haircuts set forth in the 
Rules, and add a general reference to applicable haircuts.
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    In addition, FICC is proposing to add language in Section 3b in GSD 
Rule 4 and Section 3c in MBSD Rule 4, respectively, that makes it clear 
that all Eligible Clearing Fund Securities pledged to secure Clearing 
Fund deposits shall, for collateral valuation purposes, be subject to a 
haircut and may be subject to a concentration limit. The proposed 
language would provide that FICC shall determine the applicable 
haircuts and any concentration limits from time to time in accordance 
with its internal policy and governance process, based on factors 
determined to be relevant by FICC, which may include, for example, 
backtesting results and FICC's assessment of market conditions, in 
order to set appropriately conservative haircuts and/or concentration 
limits for the Eligible Clearing Fund Securities and minimize 
backtesting deficiency occurrences. The proposed language would also 
provide that the haircuts and any concentration limits prescribed by 
FICC shall be set forth in a haircut schedule that is published on 
FICC's website. The proposed language would also state that it shall be 
the member's responsibility to retrieve the haircut schedule, and that 
FICC would provide members with at a minimum one Business Day's advance 
notice of any change in the haircut schedule.
    FICC states that the proposed change to move the haircuts and 
concentration limits from the Rules to the website would enable FICC to 
adjust the haircuts and concentration limits without undergoing a rule 
filing process (although it could still necessitate an advance notice 
under Title VIII of the Dodd-Frank Act, if a change materially affects 
the nature or level of risks presented by FICC).\28\ FICC states that 
by being able to make appropriate and timely adjustments to the 
haircuts and concentration limits, it would have the flexibility to 
respond to changing market conditions more promptly.\29\ Having the 
flexibility to respond to changing market conditions more promptly 
would in turn help better ensure that FICC collects sufficient margin 
from members as well as risk manages its credit exposures to its 
members.\30\
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    \28\ Notice of Filing, supra note 3, 88 FR at 68806 and n. 8 
(citing 12 U.S.C. 5465(e)(1) and 17 CFR 240.19b-4(n)(1)(i)).
    \29\ Id.
    \30\ Id.

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[[Page 78406]]

    In its Notice of Filing, FICC also provides an overview regarding 
its changes to the categories relating to Treasury Inflation-Protected 
Securities (``TIPS'').\31\ FICC states that, as part of its daily 
backtesting regarding the adequacy of collateral haircuts, FICC has 
determined that in periods where the inflation rate fluctuates, the 
current haircut levels for TIPS have been inadequate to address the 
fluctuations from time to time.\32\ This is because TIPS are indexed to 
the inflation rate, and prices on TIPS move inversely to their yields, 
e.g., when the inflation rate increases, prices on TIPS decrease. When 
the decline in market value of TIPS exceeds the haircut for TIPS, FICC 
would be exposed to potential liquidation losses.\33\
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    \31\ TIPS are a type of Treasury security issued by the U.S. 
government that are indexed to inflation such that the principal 
value of the security rises as inflation rises.
    \32\ Notice of Filing, supra note 3, 88 FR at 68806.
    \33\ Id. Specifically, during the period from September 1, 2021 
to August 31, 2022, with TIPS comprising less than 10 percent of the 
total collateral value across the GSD and MBSD divisions at FICC, 
FICC has observed 29 backtesting deficiencies at FICC, 26 at GSD and 
3 at MBSD, where the collateral value that FICC attributed to the 
TIPS that were posted by members as margin (inclusive of the 
applicable current haircuts) was insufficient to cover the 
liquidation of such securities by FICC without incurring a loss. Id. 
The 29 backtesting deficiencies represent a sum total of 
approximately $9.4 million across four days during the impact study 
period, less than 0.1% of the total collateral value at FICC on each 
of those days. Id.
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    Accordingly, FICC is planning to address haircuts for TIPS in a 
separate category, as opposed to as part of a category also including 
Treasury Bills, Notes, and Bonds, and to increase the haircut levels 
for TIPS to ensure that the haircut levels would be commensurate with 
the particular risk attributes of TIPS.\34\ FICC describes the new TIPS 
haircut categories as follows:\35\
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    \34\ Id. FICC also stated that its review of TIPS haircuts at 
other registered clearing agencies demonstrate that FICC's current 
haircut levels for TIPS are generally lower than the TIPS haircuts 
required by other clearing agencies and foreign CCPs, particularly 
with respect to maturity ranges of 10 years or longer. Id. 
(summarizing and citing various other clearing agency rules).
    \35\ Id. FICC also reflected the changes with respect to 
haircuts for TIPS on the haircut schedule filed as Exhibit 3c to the 
Notice of Filing, which would be posted to its website if the 
Proposed Rule Change were approved.

 
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                                                        Maturity               Current (%)        Proposed (%)
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TIPS.......................................  Zero to 1 year...............                2.0                2.0
                                             1 year to 2 years............                2.0                3.0
                                             2 years to 5 years...........                3.0                5.0
                                             5 years to 10 years..........                4.0                7.0
                                             10 years to 15 years.........                6.0                7.0
                                             15 years or greater..........                6.0               10.0
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    FICC conducted an impact study for the period from September 1, 
2021 through August 31, 2022 (``Impact Study'').\36\ The results of the 
Impact Study indicate that, if the haircut changes for TIPS had been in 
place, all 29 backtesting deficiencies would have been eliminated.\37\
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    \36\ FICC filed this Impact Study as confidential Exhibit 3a to 
the Notice of Filing.
    \37\ Notice of Filing, supra note 3, 88 FR at 68807 (also 
providing a more detailed summary of the Impact Study).
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IV. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act \38\ directs the Commission to 
approve a proposed rule change of a self-regulatory organization if it 
finds that such proposed rule change is consistent with the 
requirements of the Act and rules and regulations thereunder applicable 
to such organization. After carefully considering the Proposed Rule 
Change, the Commission finds that the Proposed Rule Change is 
consistent with the requirements of the Act and the rules and 
regulations thereunder applicable to FICC. In particular, the 
Commission finds that the Proposed Rule Change is consistent with 
section 17A(b)(3)(F) \39\ of the Act and Rules 17Ad-22(e)(5) and 
(e)(23), each promulgated under the Act.\40\
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    \38\ 15 U.S.C. 78s(b)(2)(C).
    \39\ 15 U.S.C. 78q-1(b)(3)(F).
    \40\ 17 CFR 240.17Ad-22(e)(5) and (e)(23).
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A. Consistency With Section 17A(b)(3)(F) of the Act

    Section 17A(b)(3)(F) of the Act \41\ requires that the rules of a 
clearing agency, such as FICC, be designed to, among other things, 
promote the prompt and accurate clearance and settlement of securities 
transactions and assure the safeguarding of securities and funds which 
are in the custody or control of the clearing agency or for which it is 
responsible.\42\ The Commission believes that the Proposed Rule Change 
is consistent with section 17A(b)(3)(F) of the Act for the reasons 
stated below.
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    \41\ 15 U.S.C. 78q-1(b)(3)(F).
    \42\ Id.
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    As stated in Part II supra, a key tool that FICC uses to manage its 
credit exposures to its members is the daily collection of margin from 
each member described above, and FICC applies haircuts to securities 
collected as margin to protect FICC and its members from price 
fluctuations, i.e., if FICC is required to liquidate collateral of an 
insolvent member and such collateral is worth less at the time of 
liquidation than when it is pledged to FICC.
    By moving the location where collateral haircuts and concentration 
limits are published from FICC's Rules to its website, the Proposed 
Rule change would add flexibility for FICC to make timely adjustments 
to collateral haircuts and concentration limits during a time of 
potentially deteriorating market or other conditions, while preserving 
notice requirements to ensure that members are aware of risk management 
changes. This added flexibility should allow FICC to continue to ensure 
that it can address changing market conditions rapidly and ensure that 
it is collecting sufficient margin to cover its credit exposures to 
members and minimizing exposures from members with large collateral 
positions in a particular group of securities with a similar risk 
profile or in a particular asset type.\43\
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    \43\ In addition, the Commission believes that the changes 
relating to the haircuts for TIPS would allow FICC to ensure that 
the haircut levels would be commensurate with the particular risk 
attributes of TIPS, and thereby assure the safeguarding of 
securities and funds that are in its custody or control.
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    By helping FICC to collect sufficient margin, the Proposed Rule 
Change would better ensure that, in the event of a member default, 
FICC's operation of its critical clearance and settlement services 
would not be disrupted because of insufficient financial resources. 
Accordingly, the Proposed Rule Change should help FICC to continue 
providing

[[Page 78407]]

prompt and accurate clearance and settlement of securities 
transactions, consistent with section 17A(b)(3)(F) of the Act.\44\
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    \44\ 15 U.S.C. 78q-1(b)(3)(F).
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    Moreover, because the Proposed Rule Change would continue to ensure 
that FICC collects sufficient margin from members, it should also help 
minimize the likelihood that FICC would have to access the Clearing 
Fund, thereby limiting non-defaulting members' exposure to mutualized 
losses. By helping to limit the exposure of FICC's non-defaulting 
members to mutualized losses, the Proposed Rule Change should help FICC 
assure the safeguarding of securities and funds which are in its 
custody or control, consistent with section 17A(b)(3)(F) of the 
Act.\45\
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    \45\ Id.
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    Finally, the proposed clarifying changes should help to ensure that 
FICC's Rules are clear to members. When members better understand their 
rights and obligations regarding the Rules, members are more likely to 
act in accordance with the Rules, which should promote the prompt and 
accurate clearance and settlement of securities transactions. As such, 
the proposed clarifying changes are consistent with section 
17A(b)(3)(F) of the Act.\46\
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    \46\ Id.
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B. Consistency With Rule 17Ad-22(e)(5)

    Rule 17Ad-22(e)(5) under the Act \47\ requires, in part, a covered 
clearing agency to establish, implement, maintain and enforce written 
policies and procedures reasonably designed to set and enforce 
appropriately conservative haircuts and concentration limits if the 
covered clearing agency requires collateral to manage its or its 
participants' credit exposure. As described in Part II supra, the 
proposed changes to move the collateral haircuts and concentration 
limits from FICC's Rules should provide FICC with more flexibility to 
respond to changing market conditions because adjustments to the 
haircuts and concentration limits would no longer require a rule 
change. By being able to make appropriate and timely adjustments to the 
haircuts and concentration limits, FICC would have the flexibility to 
respond to changing market conditions more promptly. Specifically, FICC 
would have the ability to promptly set and enforce conservative 
collateral haircuts and concentration limits that are reflective of the 
current market conditions. In this way, the proposed changes to move 
the collateral haircuts and concentration limits from the Rules to the 
website should help FICC set and enforce appropriately conservative 
collateral haircuts and concentration limits, consistent with the 
requirements of Rule 17Ad-22(e)(5) under the Act.\48\
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    \47\ 17 CFR 240.17Ad-22(e)(5).
    \48\ Id.
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C. Consistency With Rule 17Ad-22(e)(23)

    Rule 17Ad-22(e)(23)(i) and (ii) \49\ under the Act requires each 
covered clearing agency to establish, implement, maintain, and enforce 
written policies and procedures reasonably designed to, among other 
things, publicly disclose all relevant rules and material procedures; 
and provide sufficient information to enable participants to identify 
and evaluate the risks, fees, and other material costs they incur by 
participating in the covered clearing agency. Based on its review of 
the record, and for the reasons described below, the Commission finds 
that the proposed changes, taken together, are consistent with the 
requirements of Rule 17Ad-22(e)(23)(i) and (ii).\50\
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    \49\ 17 CFR 240.17Ad-22(e)(23)(i) and (ii).
    \50\ Id.
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    By adopting rules that require FICC to provide prior notice through 
public disclosures on its website relating to information on collateral 
haircuts and concentration limits, FICC's Rules would support the 
communication of information that its members may use to identify and 
evaluate the haircuts and concentration limits resulting from FICC's 
processes. As such, the Proposed Rule Change is consistent with 
publicly disclosing all relevant rules and material procedures; and 
providing sufficient information to enable participants to identify and 
evaluate the risks, fees, and other material costs incurred with 
participation in the covered clearing agency. The Commission finds, 
therefore, that the Proposed Rule Change is consistent with the 
requirements of Rule 17Ad-22(e)(23)(i) and (ii) under the Act.\51\
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    \51\ Id.
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
Proposed Rule Change is consistent with the requirements of the Act and 
in particular with the requirements of section 17A of the Act \52\ and 
the rules and regulations promulgated thereunder.
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    \52\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to section 19(b)(2) of the Act 
\53\ that proposed rule change SR-FICC-2023-014, be, and hereby is, 
approved.\54\
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    \53\ 15 U.S.C. 78s(b)(2).
    \54\ In approving the Proposed Rule Change, the Commission 
considered its impact on efficiency, competition, and capital 
formation. 15 U.S.C. 78c(f).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\55\
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    \55\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-25106 Filed 11-14-23; 8:45 am]
BILLING CODE 8011-01-P