[Federal Register Volume 90, Number 65 (Monday, April 7, 2025)]
[Notices]
[Pages 15013-15017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05896]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-102755; File No. SR-FICC-2025-007]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Filing and Immediate Effectiveness of Proposed Rule Change To 
Amend the Recovery and Wind-Down Plan

April 1, 2025.
    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 March 25, 2025, Fixed Income Clearing Corporation (``FICC'') 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. FICC filed the 
proposed rule change pursuant to Section 19(b)(3)(A) of the Act \3\ and 
Rule 19b-4(f)(4) thereunder.\4\ 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\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
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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 amendments to the R&W Plan to 
reflect business and product developments that have taken place since 
the time it was last amended,\5\ make certain changes to improve the 
clarity of the Plan and make other updates and technical revisions.\6\
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    \5\ See Securities Exchange Act Release Nos. 98335 (Sept. 8, 
2023), 88 FR 63157 (Sept. 14, 2023) (SR-FICC-2023-013); and 91430 
(Mar. 29, 2021), 86 FR 17432 (Apr. 2, 2021) (SR-FICC-2021-002).
    \6\ Capitalized terms not defined herein are defined in the FICC 
Government Securities Division (``GSD'') Rulebook (the ``GSD 
Rules'') or the FICC Mortgage-Backed Securities Division (``MBSD'') 
Clearing Rules (the ``MBSD Rules,'' and collectively with the GSD 
Rules, the ``Rules''), available at www.dtcc.com/legal/rules-and-procedures, or in the Recovery & Wind-down Plan of FICC (the ``R&W 
Plan'' or ``Plan'').
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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
Executive Summary
    The R&W Plan was adopted in August 2018 \7\ and is maintained by 
FICC for compliance with Rule 17ad-22(e)(3)(ii) under the Act.\8\ This 
section of the Act requires registered clearing agencies to, in short, 
establish, implement and maintain plans for the recovery and orderly 
wind-down of the covered clearing agency necessitated by credit losses, 
liquidity shortfalls, losses from general business risk, or any other 
losses. The Plan is intended to be used by the Board and FICC 
management in the event FICC encounters scenarios that could 
potentially prevent it from being able to provide its critical services 
to the marketplace as a going concern.
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    \7\ See Securities Exchange Act Release Nos. 83973 (Aug. 28, 
2018), 83 FR 44942 (Sept. 4, 2018) (SR-FICC-2017-021); and 83954 
(Aug. 27, 2018), 83 FR 44361 (Aug. 30, 2018) (SR-FICC-2017-805).
    \8\ 17 CFR 240.17ad-22(e)(3)(ii). FICC is a ``covered clearing 
agency'' as defined in Rule 17ad-22(a)(5) under the Act and must 
comply with paragraph (e) of Rule 17ad-22.
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    The R&W Plan is comprised of two primary sections: (i) the 
``Recovery Plan,'' that sets out the tools and strategies to enable 
FICC to recover, in the event it experiences losses that exceed its 
prefunded resources, and (ii) the ``Wind-down Plan,'' that describes 
the tools and strategies to be used to conduct an orderly wind-down of 
FICC's business in a manner designed to permit the continuation of 
FICC's critical services in the event that its recovery efforts are not 
successful.
    FICC believes that by helping to ensure that the R&W Plan reflects 
current business and product developments, providing additional 
clarity, and making necessary grammatical corrections, that the 
proposed rule change would help it continue to maintain the Plan in a 
manner that supports the continuity of

[[Page 15014]]

FICC's critical services and enables its Members and Limited Members to 
maintain access to FICC's services through the transfer of its 
membership in the event FICC defaults or the Wind-down Plan is ever 
triggered by the Board.
Background
    The R&W Plan is managed by the Office of Recovery & Resolution 
Planning (referred to in the Plan as the ``R&R Team'') of FICC's parent 
company, the Depository Trust & Clearing Corporation (``DTCC''),\9\ on 
behalf of FICC, with review and oversight by the DTCC Executive 
Committee and the Board. In accordance with the SEC's Approval Order 
covering the Plan,\10\ the Board, or such committees as may be 
delegated authority by the Board from time to time, is required to 
review and approve the R&W Plan biennially and would also review and 
approve any changes that are proposed to the R&W Plan outside of the 
biennial review. FICC completed its most recent biennial review in 
2024.\11\ The proposed rule change reflects amendments proposed to the 
Plans resulting from that review, which are described in greater detail 
below. None of the proposed changes modify FICC's general objectives 
and approach with respect to its recovery and wind-down strategy as set 
forth under the current Plan.
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    \9\ DTCC operates on a shared service model with respect to FICC 
and its other affiliated clearing agencies, National Securities 
Clearing Corporation (``NSCC'') and The Depository Trust Company 
(``DTC''). Most corporate functions are established and managed on 
an enterprise-wide basis pursuant to intercompany agreements under 
which it is generally DTCC that provides relevant services to FICC, 
NSCC and DTC (collectively, the ``Clearing Agencies'').
    \10\ Supra note 7.
    \11\ Upon the effective date of recently adopted SEC Rule 17ad-
26(9), FICC will be updating its procedures to require review and 
approval of the Plan by the Board at least every 12 months or 
following material changes to FICC's operations that would 
significantly affect the viability or execution of the Plan.
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A. Proposed Amendments to the R&W Plan
    FICC is proposing the changes to the following sections of the Plan 
based upon business updates and product developments that have occurred 
since the Plan was last amended.\12\
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    \12\ Supra note 2.
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    Section 2.2 (GSD) describes the cross-margining arrangement that 
GSD has established with the Chicago Mercantile Exchange (the 
``CME'').\13\ Based on enhancements made to the arrangement that became 
effective in 2024,\14\ FICC proposes to delete the existing description 
and replace it with the following, ``In this arrangement, GSD and CME 
will each treat a participant's relevant products as a single portfolio 
to independently calculate the margin requirements to determine the 
more conservative percentage of margin savings that would be applied to 
a Cross-Margining Account. FICC and CME would then compare their 
respective margin savings percentages with one another, and, if the 
lesser of such margin savings percentage exceeds the maximum margin 
offset threshold agreed by the Clearing Organizations, each Clearing 
Organization would reduce the Cross-Margining Participant's margin 
reduction.
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    \13\ See GSD Rule 43 (Cross Margining Arrangements), supra note 
6.
    \14\ See Securities Exchange Act Release No. 98327 (Sept. 8, 
2023); 88 FR 63185 (Sept. 14, 2023) (SR-FICC-2023-010).
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    Section 2.4 (Intercompany Arrangements) describes how corporate 
support services are provided to FICC from DTCC and DTCC's other 
subsidiaries, through intercompany agreements under a shared services 
model. This section includes a table, (Facilities, Table 2-B), that 
lists each of the DTCC facilities utilized by the Clearing Agencies and 
indicates whether the facility is owned or leased. FICC proposes to 
update this table to add Hyderabad, India as an additional facility 
location that is leased by DTCC, which site is expected to be 
operational by the end of 2024. In addition, for purposes of clarity, 
the proposed rule change would update the table to make clear that the 
owner of the Tampa, Florida location is DTCC.
    Section 2.5 (FMI Links) \15\ describes some of the key financial 
market infrastructures (``FMIs''), both domestic and foreign, that FICC 
has identified as critical ``links.'' \16\ This section of the Plan 
also identifies the group within DTCC that is responsible for 
maintaining the inventory of links and that has set forth a set of 
practices and protocols for managing and reviewing the various risks 
and controls associated with clearing agency links. Based on a change 
to the name of this internal group from ``the DTCC Systemic Risk Office 
(``SRO'') to the ``Emerging and Systemic Risk (``ESR'') team,'' the 
proposed rule change would replace all references to ``SRO'' with 
``ESR.'' The reference to the ``Chief Systemic Risk Officer 
(``CSRO'')'' would be replaced with ``Operational Risk management.'' 
Also, for the same reason, the reference in the first sentence of this 
section to the ``DTCC Systemic Risk Office (``SRO'') Clearing Agency 
Links--Risk Review Procedures'' would be changed to the ``Clearing 
Agency Links--Risk Review Procedures.'' Additionally, for purposes of 
consistency, in other sections of the Plan where a reference is made to 
``linked FMIs,'' which are Sections 1.3, 3.2, 7.3, 8.4.2 and 8.4.5., it 
would be replaced with ``Clearing Agency Links.''
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    \15\ For purposes of consistency, under the proposed rule change 
all references to ``FMI Links'' would be revised to refer to these 
as ``Clearing Agency Links.''
    \16\ As defined in Rule 17ad-22(a)(8) under the Act, a link 
``means, for purposes of paragraph (e)(20) of Rule 17ad-22, a set of 
contractual and operational arrangements between two or more 
clearing agencies, financial market utilities, or trading markets 
that connect them directly or indirectly for the purposes of 
participating in settlement, cross margining, expanding their 
services to additional instruments or participants, or for any other 
purposes material to their business.'' 17 CFR 240.17ad-22(a)(8).
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    In addition to the relationships that meet the definition of a 
``link,'' this section of the Plan describes a list of other 
relationships that management designates from time to time as `Schedule 
A Relationships.'' \17\ For purposes of clarity, the proposed rule 
change would revise the description of the Federal Reserve Bank--U.S., 
Treasury Auction Takedown Service, which is a Schedule A Relationship. 
The revised description would state that, ``As part of the auction 
takedown process, GSD receives securities awarded from the Members' 
winning bids directly from the Federal Reserve Bank (``FRB'') into 
GSD's auction account at BNY. GSD then redelivers to Members based on 
the results of the netting process.''
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    \17\ Schedule A Relationships are contractual or operational 
arrangements between a DTCC registered clearing agency and one or 
more other entities or systems that management determines meet 
certain criteria (e.g., they satisfy some, but not all, aspects of 
the regulatory definition of ``link.'')
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    Section 3 (Critical Services) defines the criteria for classifying 
certain of FICC's services as ``critical,'' \18\ and identifies such 
critical services and the rationale for their classification. The 
identification of FICC's critical services is important for evaluating 
how the recovery tools and the wind-down strategy would facilitate and 
provide for the continuation of FICC's critical

[[Page 15015]]

services to the markets it serves. Included in this section are two 
tables (Table 3-B: GSD Critical Services and Table 3-C: MBSD Critical 
Services) that list each of the services, functions or activities that 
FICC has identified as ``critical'' based on the applicability of the 
criteria.
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    \18\ The criteria that is used to identify a FICC service or 
function as critical includes consideration as to whether (1) there 
is a lack of alternative providers or products; (2) the inability of 
FICC to act as a central counterparty through either Division would 
increase Members' credit risk and disrupt their ability to initiate 
new transactions.; (3) The failure or disruption of the multilateral 
netting performed by each FICC Division could materially and 
negatively impact the volume of financial transactions and the 
liquidity of the U.S. Fixed Income markets; and (4) the service is 
interconnected with other participants and processes within the U.S. 
financial system (for example, with other FMIs, settlement banks, 
broker-dealers, and exchanges).
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    There are two tables (Table 3-B: GSD Critical Services and Table 3-
C: MBSD Critical Services) that lists each of the services, functions 
or activities that FICC has identified as ``critical'' based on the 
applicability of the criteria. For purposes of consolidation and 
consistency with the naming conventions, and broader description of 
these services to those set forth in DTCC's enterprise service 
catalogue (the ``ESC''), which is used by FICC's internal stakeholders, 
the proposed rule change would (i) make changes to the names and 
descriptions of certain critical services, and (ii) remove some rows in 
the respective table that are currently designated as separate critical 
services and list them instead as material components of a more broadly 
described critical service(s). These proposed changes are described in 
more detail below:
Table 3-B: GSD Critical Services
    (i) The separate row for ``GSD RTTM[supreg],'' which is the common 
electronic platform that is used to provide all of FICC's Critical 
Services, would be deleted and moved under the row for the ``GSD 
Delivery-versus Payment (DVP) Service,'' as a material component of 
that service. ``GSD RTTM[supreg] would also be identified in the row 
for the ``GSD GCF Repo[supreg] Service'' as being used to provide that 
service.
    (ii) The row for ``GSD DVP Cash/Repo Services'' would be renamed 
``GSD Delivery-versus Payment (DVP) Service,'' and the following 
separate rows would be deleted and moved to be identified as material 
components of this service: ``GSD Auction Takedown,'' ``GSD Netting and 
Settlement,'' ``GSD Automated Funds Only Settlement Service,'' and 
``GSD Repo Collateral Substitution Service.''
    (iii) The row for ``GSD GCF Repo[supreg] Service'' would be 
modified to remove all references to the ``DTCC GCF Repo[supreg] 
Index'' because it is not a critical service nor a material component 
of this service. In addition, ``GSD Automated Funds Only Settlement 
Service,'' would be identified as a material component of this service.
Table 3-C: MBSD Critical Services
    (i) The row for ``MBSD RTTM[supreg]'' would be renamed ``MBSD 
Clearing, Netting and Settlement Services.'' A broader description of 
this service would be added to this row and the current description of 
``MBSD RTTM[supreg] would be retained.
    (ii) The separate rows for ``MBSD TBA Netting,'' ``MBSD Pool 
Netting and Settlement,'' and ``MBSD Automated Funds Only Settlement 
Services'' would be deleted and moved under ``MBSD Clearing, Netting 
and Settlement Services'' as material components of this service.
    Section 5.2.4 (Recovery Corridor and Recovery Phase) outlines the 
early warning indicators to be used by FICC to evaluate its options and 
potentially prepare to enter the ``Recovery Phase,'' which phase refers 
to the actions to be taken by FICC to restore its financial resources 
and avoid a wind-down of its business. This section contains 
descriptions of potential stress events that could lead to recovery, 
and several early warning indicators and metrics that FICC has 
established to evaluate its options and potentially prepare to enter 
the Recovery Phase. These indicators, which are referred to in the 
Recovery Plan as recovery corridor indicators (``Corridor Indicators'' 
or ``Indicator(s)''),\19\ are calibrated against FICC's financial 
resources and are designed to give FICC the ability to replenish 
financial resources, typically through business-as-usual tools applied 
prior to entering the Recovery Phase. Included in this section is a 
table (Table 5-A: Corridor Indicators) that identifies for each 
Indicator (i) how it is measured, (ii) the basis for the evaluation of 
the status of the Indicator, (iii) the type of metrics used for 
determining the status of the deterioration or improvement of the 
Indicator, and (iv) ``Corridor Actions & Escalation,'' which are those 
steps that may be taken to improve the status of the Indicator and the 
management escalations required to authorize those steps. The proposed 
rule change would make the following clarifications to Table 5-A.
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    \19\ The majority of the Corridor Indicators, as identified in 
the Recovery Plan, relate directly to conditions that may require 
FICC to adjust its strategy for hedging and liquidating a defaulting 
Member's portfolio, and any such changes would include an assessment 
of the status of the Corridor Indicators.
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    First, for purposes of additional clarity, in the row that 
describes the ``Uncommitted Repo Agreements'' Indicator, a reference to 
``including inter-dealer brokers'' would be added to the sentence that 
describes the types of Members with whom FICC has entered into Master 
Repurchase Agreements. Second, the row for the ``Capped Contingency 
Liquidity Facility (CCLF[supreg])'' \20\ Indicator, would be clarified 
to describe that CCLF[supreg] is in place as a FICC ``Qualifying Liquid 
Resource'' and that FICC may declare a CCLF[supreg] Event to address 
FICC's liquidity needs.
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    \20\ Participation in the CCLF facility is a membership 
requirement for all full-service FICC Members. Members must attest 
to their ability to participate in the CCLF facility. Daily reports 
provide Members with information on their current and potential 
future commitments. FICC may also seek to obtain a loan from its 
clearing bank(s) at the discretion of such bank(s). See GSD Rule 
22A, Section 2a and MBSD Rule 17, Section 2a, supra note 6.
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    Section 5.3 (Liquidity Shortfalls) describes that there is 
interaction between market and liquidity actions on FICC's overall risk 
exposures. Table 5-C of the Plan sets out the tools that are intended 
to address foreseeable liquidity shortfalls that would not be covered 
by FICC's existing liquid resources, including modifications to those 
existing liquid resources, for example, and how FICC's existing 
qualifying liquid resources may be replenished. These tools can be used 
as appropriate during the Crisis Continuum to address liquidity 
shortfalls if they arise and certain actions that may have the effect 
of reducing liquidity needs. For purposes of clarity, the entry in 
Table 5-C for ``Non-Qualifying Liquid Resources,'' would be revised to 
state that FICC would utilize existing Master Repurchase Agreements, 
and alternatively, FICC could pursue financing arrangements such as 
commercial bank loans. In addition, to better reflect its purpose, the 
name of the entry for ``Uncommitted repos'' would be changed to 
``Uncommitted Master Repurchase Agreements'' and the description would 
note that FICC could seek new additional Master Repurchase Agreement 
counterparties for uncommitted repurchase agreements.
B. Other Updates, Clarifications and Technical Revisions
    FICC is also proposing to make other updates and technical 
revisions to the Plan. These technical revisions would, for example, 
make grammatical corrections, update the names of certain FICC internal 
groups, and clarify the description of internal organizations, without 
changing the substantive statements being revised.
    For example, in Section 4.1 (DTCC and SIFMU Governance Structure), 
for purposes of reflecting organizational updates and internal name 
changes, FICC proposes to make the following changes, (i) revise the 
number of Board committees from six to seven, (ii) revise

[[Page 15016]]

the name of the ``Businesses, Technology and Operations'' committee to 
the ``Technology & Cyber Committee, and add to the committees list a 
new committee, the ``Enterprise Services Committee,'' (iii) throughout 
the Plan, replace all references to ``Management Committee'' with 
``Executive Committee,'' based on a change made to the name of this 
existing committee, (iv) in Section 4.3 (Recovery and Wind-down Program 
Governance), for purposes consolidating of the list of risk groups that 
comprise representation on DTCC's Recovery & Wind-down Planning 
Council, revise reference to the ``Financial Risk Management'' and 
``Operational Risk'' to ``Group Chief Risk Office,'' and remove all 
references to ``Embedded Risk Management,'' (v) with respect to Section 
6.3.1 (Financial Risk and Capital Management), the last sentence 
describes that at the center of DTCC's approach to measuring and 
managing its capital is a framework comprised of regulatory and 
economic components designed to comprehensively assess the capital 
needs of the consolidated enterprise and its operating subsidiaries. 
Based on a change in terminology that does not impact how FICC measures 
or manages its capital, the term ``economic components'' would be 
replaced with ``management views,'' and (vi) for purposes of clarity 
and to avoid redundancy, at the end of Section 8.7 (Costs and Time to 
Effectuate Plan), (x) the following sentence would be revised to add 
the words ``at least'' before ``four months, ``Based on the foregoing 
analysis, the costs to execute FICC's recovery or orderly wind-down are 
estimated at an amount equal to four months of operating expenses, and 
(y) the subsequent sentence that ``This amount thus should be less than 
the amount based upon six months of operating costs,'' would be 
deleted.
    FICC believes the proposed updates and technical revisions would 
improve the clarity and accuracy of the Plan and, therefore, would help 
facilitate the execution of Plan, if necessary.
2. Statutory Basis
    FICC believes that the proposal is consistent with the requirements 
of the Act and the rules and regulations thereunder applicable to a 
registered clearing agency. In particular, FICC believes that the 
amendments to the R&W Plan are consistent with Section 17A(b)(3)(F) of 
the Act \21\ and Rule 17ad-22(e)(3)(ii) under the Act \22\ for the 
reasons described below.
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    \21\ 15 U.S.C. 78q-1(b)(3)(F).
    \22\ 17 CFR 240.17ad-22(e)(3)(ii).
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    Section 17A(b)(3)(F) of the Act requires, in part, that the rules 
of FICC be designed to promote the prompt and accurate clearance and 
settlement of securities transactions. As described above, the proposed 
rule change would update the R&W Plan to reflect business and product 
developments and make certain technical corrections. By helping to 
ensure that the R&W Plan reflects current business and product 
developments, and providing additional clarity, FICC believes that the 
proposed rule change would help it continue to maintain the Plan in a 
manner that supports the continuity of FICC's critical services and 
enables its Participants and Pledgees to maintain access to FICC's 
services through the transfer of its membership in the event FICC 
defaults or the Wind-down Plan is ever triggered by the Board. Further, 
by facilitating the continuity of its critical clearance and settlement 
services, FICC believes the Plan and the proposed rule change would 
continue to promote the prompt and accurate clearance and settlement of 
securities transactions. Therefore, FICC believes the proposed 
amendments to the R&W Plan are consistent with the requirements of 
Section 17A(b)(3)(F) of the Act.
    Rule 17ad-22(e)(3)(ii) under the Act requires FICC to establish, 
implement, maintain and enforce written policies and procedures 
reasonably designed to maintain a sound risk management framework for 
comprehensively managing legal, credit, liquidity, operational, general 
business, investment, custody, and other risks that arise in or are 
borne by the covered clearing agency, which includes plans for the 
recovery and orderly wind-down of the covered clearing agency 
necessitated by credit losses, liquidity shortfalls, losses from 
general business risk, or any other losses.\23\
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    \23\ Id.
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    Specifically, the Recovery Plan defines the risk management 
activities, stress conditions and indicators, and tools that FICC may 
use to address stress scenarios that could eventually prevent it from 
being able to provide its critical services as a going concern. Through 
the framework of the Crisis Continuum, the Recovery Plan addresses 
measures that FICC may take to address risks of credit losses and 
liquidity shortfalls, and other losses that could arise from a 
Participant default. The Recovery Plan also addresses the management of 
general business risks and other non-default risks that could lead to 
losses. The Wind-down Plan would be triggered by a determination by the 
Board that recovery efforts have not been, or are unlikely to be, 
successful in returning FICC to viability as a going concern. Once 
triggered, the Wind-down Plan sets forth clear mechanisms for the 
transfer of FICC's membership and business and is designed to 
facilitate continued access to FICC's critical services and to minimize 
market impact of the transfer. By establishing the framework and 
strategy for the execution of the transfer and wind-down of FICC in 
order to facilitate continuous access to its critical services, the 
Wind-down Plan establishes a plan for the orderly wind-down of FICC.
    As described above, the proposed rule change would update the R&W 
Plan to reflect business and product developments and make certain 
technical corrections. By ensuring that material provisions of the Plan 
are current, clear, and technically correct, FICC believes that the 
proposed amendments are designed to support the maintenance of the Plan 
for the recovery and orderly wind-down of the covered clearing agency 
necessitated by credit losses, liquidity shortfalls, losses from 
general business risk, or any other losses, and, as such, meets the 
requirements of Rule 17ad-22(e)(3)(ii) under the Act.\24\ Therefore, 
the proposed changes would help FICC to maintain the Plan in a way that 
continues to be consistent with the requirements of Rule 17ad-
22(e)(3)(ii).
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    \24\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    FICC does not believe that the proposed rule change would have any 
impact, or impose any burden, on competition. FICC does not anticipate 
that the proposal would affect its day-to-day operations under normal 
circumstances, or in the management of a typical Member default 
scenario or non-default event. The R&W Plan was developed and 
documented in order to satisfy applicable regulatory requirements, as 
discussed above. The proposal is intended to enhance and update the 
Plan to ensure it is clear and remains current in the event it is ever 
necessary to be implemented. The proposed revisions would not affect 
any changes to the overall structure or operation of the Plan or FICC's 
recovery and wind-down strategy as set forth under the current Plan. As 
such, FICC believes the proposal would not have any impact, or impose 
any burden, on competition.

[[Page 15017]]

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

    FICC has not received or solicited any written comments relating to 
this proposal. If any written comments are received, FICC will amend 
this filing to publicly file such comments as an Exhibit 2 to this 
filing, as required by Form 19b-4 and the General Instructions thereto.
    Persons submitting written comments are cautioned that, according 
to Section IV (Solicitation of Comments) of the Exhibit 1A in the 
General Instructions to Form 19b-4, the Commission does not edit 
personal identifying information from comment submissions. Commenters 
should submit only information that they wish to make available 
publicly, including their name, email address, and any other 
identifying information.
    All prospective commenters should follow the Commission's 
instructions on How to Submit Comments, available at www.sec.gov/regulatory-actions/how-to-submit-comments. General questions regarding 
the rule filing process or logistical questions regarding this filing 
should be directed to the Main Office of the Commission's Division of 
Trading and Markets at [email protected] or 202-551-5777.
    FICC reserves the right to not respond to any comments received.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A) of the Act and paragraph (f) of Rule 19b-4 thereunder. At 
any time within 60 days of the filing of the proposed rule change, the 
Commission summarily may temporarily suspend such rule change if it 
appears to the Commission that such action is necessary or appropriate 
in the public interest, for the protection of investors, or otherwise 
in furtherance of the purposes of the Act.

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 (https://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include 
File Number SR-FICC-2025-007 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-FICC-2025-007. 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 (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements 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 FICC and on 
DTCC's website (https://dtcc.com/legal/sec-rule-filings.aspx). Do not 
include personal identifiable information in submissions; you should 
submit only information that you wish to make available publicly. We 
may redact in part or withhold entirely from publication submitted 
material that is obscene or subject to copyright protection. All 
submissions should refer to File Number SR-FICC-2025-007 and should be 
submitted on or before April 28, 2025.
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    \25\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\25\
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-05896 Filed 4-4-25; 8:45 am]
BILLING CODE 8011-01-P