Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Notices 78425 

14 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 98589 

(Sept. 28, 2023), 88 FR 68777 (Oct. 4, 2023) (File 

No. SR–NSCC–2023–009) (‘‘Notice of Filing’’). 

4Capitalized terms not defined herein are defined 

in the NSCC Rulebook (‘‘NSCC Rules’’), available at 

https://www.dtcc.com/∼/media/Files/Downloads/ 

legal/rules/nscc_rules.pdf. 

5See NSCC Rule 4, supra note 4 (requiring 

members to make Required Fund Deposits to the 

Clearing Fund with the amount of each member’s 

deposit being determined by NSCC in accordance 

with these rules). 

6The NSCC 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 NSCC Rule 46 (Restrictions 

on Access to Services), supra note 4. 

7See NSCC Rule 4, Section 1 (Required Fund 

Deposits), supra note 4. 

8See NSCC 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. 

9See Section II.(A)1. of Procedure XV, supra note 

4. 

10Notice of Filing, supra note 3, 88 FR at 68777. 

11 Id. 

12See Section III.(A) of Procedure XV, supra note 

4. Section III.(A) was last modified in 2011 in order 

to conform the haircuts to requirements of NSCC’s 

lenders under its credit facilities. See Securities 

Exchange Act Release No. 64487 (May 13, 2011), 76 

FR 29019 (May 19, 2011) (SR–NSCC–2011–02). 

13Notice of Filing, supra note 3, 88 FR at 68777. 

NSCC also filed excerpts from its internal market 

risk management procedures as Confidential 

Exhibit 3b to its filing. 

14 Id. 

15 Id. 

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 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. 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–NYSECHX–2023–21 and should be 

submitted on or before December 6, 

2023. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.14

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25207 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98881; File No. SR–NSCC– 

2023–009] 

Self-Regulatory Organizations; 

National Securities Clearing 

Corporation; Order Approving 

Proposed Rule Change Relating to the 

Schedule of Haircuts for Eligible 

Clearing Fund Securities 

November 8, 2023. 

I. Introduction 

On September 22, 2023, National 

Securities Clearing Corporation 

(‘‘NSCC’’) filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

proposed rule change SR–NSCC–2023– 

009 to modify the schedule of haircuts 

for Eligible Clearing Fund Securities, 

and to remove it and the related 

concentration limits from Procedure XV 

of the NSCC Rules (‘‘Procedure XV’’), 

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

II. Background 

NSCC 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. As such, NSCC is 

exposed to the risk that one or more of 

its members may fail to make a payment 

or to deliver securities. 

A key tool that NSCC uses to manage 

its credit exposures to its members is 

the daily collection of margin (referred 

to as ‘‘Required Fund Deposit’’ in the 

NSCC Rules) from each member.5 The 

aggregated amount of all NSCC 

members’ margin constitutes the 

Clearing Fund. The objective of the 

Clearing Fund 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’’).6 NSCC would be able to 

access the Clearing Fund should a 

defaulting member’s own margin be 

insufficient to satisfy losses to NSCC 

caused by the liquidation of that 

member’s portfolio. 

A member may provide its required 

margin in the form of cash or an open 

account indebtedness secured by 

Eligible Clearing Fund Securities.7

Eligible Clearing Fund Securities are 

defined to include certain agency, 

mortgage-backed, and Treasury 

securities.8 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.9

NSCC states that haircuts are used to 

protect NSCC and its members from 

price fluctuations, i.e., if NSCC 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 NSCC.10

NSCC also states that concentration 

limits are intended to reduce NSCC’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 NSCC.11

Currently, collateral haircuts 

applicable to relevant security types and 

remaining maturity terms are specified 

as fixed percentages in Section III.(A) of 

Procedure XV (‘‘Section III.(A)’’).12

According to NSCC 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.13

Specifically, NSCC 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 NSCC.14 NSCC 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.15 On a quarterly basis, NSCC 

reviews the composition of the Eligible 

Clearing Fund Securities that members 

have pledged to secure their Required 

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 


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16 Id. at 68778. 

17See Section II.(A)1. of Procedure XV, supra 

note 4. 

18 Id. 

19Notice of Filing, supra note 3, 88 FR at 68778; 

see also note 13 supra. 

20 Id. 

21 Id. 

22 Id. 

23 Id. 

24 Id. 

25 Id. 

26 Id. 

27Specifically, NSCC is proposing to delete 

subsections (a) and (b) of Section II.(A)1. of 

Procedure XV (Special Provisions Related to 

Eligible Clearing Fund Securities), and delete 

Section III of Procedure XV (Collateral Value of 

Eligible Clearing Fund Securities) to remove all 

haircuts and concentration limits from the Rules. 

NSCC is also proposing to (i) remove references to 

Section III of Procedure XV in two places in Rule 

4, and replace them with a reference to Section 

II.(A) of Procedure XV; (ii) remove references to 

subsections 1(a) and (b) of Section II.(A) of 

Procedure XV and references to Section III of 

Procedure XV in Rule 56; and (iii) remove a 

reference to Section III of Procedure XV in Section 

II.(A) of Procedure XV, and replace it with a 

reference to the proposed haircut schedule, to 

reflect the proposed changes described above. 

28Notice of Filing, supra note 3, 88 FR at 68779 

and n. 11 (citing 12 U.S.C. 5465(e)(1) and 17 CFR 

240.19b–4(n)(1)(i)). 

29 Id. 

30 Id. 

31TIPS are a type of Treasury security issued by 

the U.S. government that are indexed to inflation 

instances where the simulated losses 

from available historical stress testing 

scenario dates have exceeded the 

collateral haircut values, and market 

conditions.16

In addition to collateral haircuts, 

NSCC applies concentration limits to 

certain Eligible Clearing Fund Securities 

set forth in the NSCC 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.17 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 Section III.(A), 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.18

Changes to the collateral haircuts and 

concentration limits are subject to 

NSCC’s internal governance process.19

According to NSCC and based on its 

internal risk management procedures, if 

NSCC 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 NSCC’s assessment of market 

conditions, such outcome or result 

could cause NSCC to amend the 

haircuts/concentration limits in the 

haircut schedule.20 If NSCC 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.21 Before making 

adjustments to the haircut schedule, 

NSCC measures the potential impact of 

such adjustments to ensure any impact 

is both necessary and appropriate.22

III. Description of the Proposed Rule 

Change 

In the Notice of Filing, NSCC 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, NSCC 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 NSCC 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 NSCC.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 

NSCC 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. 

Therefore, to provide NSCC with 

more flexibility in adjusting the haircuts 

and concentration limits so NSCC can 

respond to changing market conditions 

more promptly in order to mitigate the 

additional risk exposure, NSCC is 

proposing to remove Section III.(A) and 

concentration limits from the Rules, and 

to publish the haircuts and 

concentration limits in a haircut 

schedule on NSCC’s website.27

In addition, NSCC is proposing to add 

language in Section II.(A)1. 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 NSCC 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 

NSCC, which may include, for example, 

backtesting results and NSCC’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 

NSCC shall be set forth in a haircut 

schedule that is published on NSCC’s 

website. The proposed language would 

also state that it shall be the member’s 

responsibility to retrieve the haircut 

schedule, and that NSCC would provide 

members with at a minimum one 

Business Day’s advance notice of any 

change in the haircut schedule. 

NSCC states that the proposed change 

to move the haircuts and concentration 

limits from the Rules to the website 

would enable NSCC 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 NSCC).28 NSCC 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 NSCC collects sufficient 

margin from members as well as risk 

manages its credit exposures to its 

members.30

In its Notice of Filing, NSCC also 

provides an overview regarding its 

changes to the categories relating to 

Treasury Inflation-Protected Securities 

(‘‘TIPS’’).31 NSCC states that, as part of 


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such that the principal value of the security rises 

as inflation rises. 

32Notice of Filing, supra note 3, 88 FR at 68779. 

33 Id. 

34 Id. NSCC also stated that its review of TIPS 

haircuts at other registered clearing agencies 

demonstrate that NSCC’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. NSCC 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. 

36NSCC filed this Impact Study as confidential 

Exhibit 3a to the Notice of Filing. 

37Notice of Filing, supra note 3, 88 FR at 68780 

(also providing a more detailed summary of the 

Impact Study). 

38See Securities Exchange Act Release No. 93722 

(Dec. 6, 2021), 86 FR 70548 (Dec. 10, 2021) (SR– 

NSCC–2021–015). 

39Notice of Filing, supra note 3, 88 FR at 68779. 

40 15 U.S.C. 78s(b)(2)(C). 

41 15 U.S.C. 78q–1(b)(3)(F). 

42 17 CFR 240.17Ad–22(e)(5) and (e)(23). 

43 15 U.S.C. 78q–1(b)(3)(F). 

44 Id. 

45 In addition, the Commission believes that the 

changes relating to the haircuts for TIPS would 

allow NSCC 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. 

its daily backtesting regarding the 

adequacy of collateral haircuts, NSCC 

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, 

NSCC would be exposed to potential 

liquidation losses.33

Accordingly, NSCC 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 NSCC describes the new TIPS 

haircut categories as follows:35

Maturity Current 

(%) 

Proposed 

(%) 

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 

NSCC 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, it 

would have resulted in an average daily 

increase of $197,000 in the Clearing 

Fund assuming TIPS were deposited.37

Finally, NSCC is proposing to clarify 

language in Sections I.(B)(1), II.(A), 

II.(B), II.(C) and II.(D) of Procedure XV 

to reflect that Mutual Fund/Insurance 

Services Members and other Limited 

Members are no longer required to make 

deposits into the Clearing Fund. In 

2022, NSCC removed the requirement 

that any Limited Members, including 

Mutual Fund/Insurance Services 

Members, make any deposits to the 

Clearing Fund.38 Sections I.(B)(1), II.(A), 

II.(B), II.(C) and II.(D) of Procedure XV 

still contain references to Mutual Fund/ 

Insurance Service Members and/or 

Limited Members making deposits into 

the Clearing Fund, and NSCC states that 

it would remove those references for 

clarity.39

IV. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 40

directs the Commission to approve a 

proposed rule change of a selfregulatory 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 NSCC. In particular, the 

Commission finds that the Proposed 

Rule Change is consistent with section 

17A(b)(3)(F) 41 of the Act and Rules 

17Ad–22(e)(5) and (e)(23), each 

promulgated under the Act.42

A. Consistency With Section 

17A(b)(3)(F) of the Act 

Section 17A(b)(3)(F) of the Act 43

requires that the rules of a clearing 

agency, such as NSCC, 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.44 The Commission believes 

that the Proposed Rule Change is 

consistent with section 17A(b)(3)(F) of 

the Act for the reasons stated below. 

As stated in Part II supra, a key tool 

that NSCC uses to manage its credit 

exposures to its members is the daily 

collection of margin from each member 

described above, and NSCC applies 

haircuts to securities collected as 

margin to protect NSCC and its 

members from price fluctuations, i.e., if 

NSCC 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 

NSCC. 

By moving the location where 

collateral haircuts and concentration 

limits are published from NSCC’s Rules 

to its website, the Proposed Rule change 

would add flexibility for NSCC 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 NSCC 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.45

By helping NSCC to collect sufficient 

margin, the Proposed Rule Change 

would better ensure that, in the event of 

a member default, NSCC’s operation of 

its critical clearance and settlement 

services would not be disrupted because 

of insufficient financial resources. 


ddrumheller on DSK120RN23PROD with NOTICES1
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46 15 U.S.C. 78q–1(b)(3)(F). 

47 Id. 

48 Id. 

49 17 CFR 240.17Ad–22(e)(5). 

50 Id. 

51 17 CFR 240.17Ad–22(e)(23)(i) and (ii). 

52 Id. 

53 Id. 

54 15 U.S.C. 78q–1. 

55 15 U.S.C. 78s(b)(2). 

56 In approving the Proposed Rule Change, the 

Commission considered its impact on efficiency, 

competition, and capital formation. 15 U.S.C. 78c(f). 

57 17 CFR 200.30–3(a)(12). 

1See Letter from Hester Serafini, President, ICE 

Clear Europe, to Vanessa Countryman, Secretary, 

Commission, dated Aug. 10, 2023. 

2 15 U.S.C. 78q–1. 

3See Notice of Withdrawal Request, infra at note 

4, 88 FR at 63176. 

4Securities Exchange Act Release No. 98339 

(Sept. 8, 2023), 88 FR 63173 (Sept. 14, 2023) (File 

No. 4–809) (‘‘Notice of Withdrawal Request’’). 

Accordingly, the Proposed Rule Change 

should help NSCC to continue 

providing prompt and accurate 

clearance and settlement of securities 

transactions, consistent with section 

17A(b)(3)(F) of the Act.46

Moreover, because the Proposed Rule 

Change would continue to ensure that 

NSCC collects sufficient margin from 

members, it should also help minimize 

the likelihood that NSCC would have to 

access the Clearing Fund, thereby 

limiting non-defaulting members’ 

exposure to mutualized losses. By 

helping to limit the exposure of NSCC’s 

non-defaulting members to mutualized 

losses, the Proposed Rule Change 

should help NSCC assure the 

safeguarding of securities and funds 

which are in its custody or control, 

consistent with section 17A(b)(3)(F) of 

the Act.47

Finally, the proposed clarifying 

changes should help to ensure that 

NSCC’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.48

B. Consistency With Rule 17Ad–22(e)(5) 

Rule 17Ad–22(e)(5) under the Act 49

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 NSCC’s 

Rules should provide NSCC 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, NSCC would have 

the flexibility to respond to changing 

market conditions more promptly. 

Specifically, NSCC 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 NSCC set and enforce 

appropriately conservative collateral 

haircuts and concentration limits, 

consistent with the requirements of Rule 

17Ad–22(e)(5) under the Act.50

C. Consistency With Rule 17Ad– 

22(e)(23) 

Rule 17Ad–22(e)(23)(i) and (ii) 51

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).52

By adopting rules that require NSCC 

to provide prior notice through public 

disclosures on its website relating to 

information on collateral haircuts and 

concentration limits, NSCC’s Rules 

would support the communication of 

information that its members may use to 

identify and evaluate the haircuts and 

concentration limits resulting from 

NSCC’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.53

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 54 and the rules 

and regulations promulgated 

thereunder. 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act 55 that 

proposed rule change SR–NSCC–2023– 

009, be, and hereby is, approved.56

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.57

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–25104 Filed 11–14–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–98902; File No. 4–809] 

Order Granting ICE Clear Europe 

Limited’s Request To Withdraw From 

Registration as a Clearing Agency 

November 9, 2023. 

I. Introduction 

On August 10, 2023, ICE Clear Europe 

Limited (‘‘ICE Clear Europe’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a written 

request (the ‘‘Written Request’’) 1 to 

withdraw from registration as a clearing 

agency under section 17A of the 

Securities Exchange Act of 1934 (the 

‘‘Exchange Act’’).2 ICE Clear Europe also 

requested the withdrawal of an 

exemption related to the clearance and 

settlement of certain futures and options 

contracts.3 The Commission published 

notice of ICE Clear Europe’s request in 

the Federal Register on September 14, 

2023, to solicit comments from 

interested persons.4 The Commission 

received no comments regarding the 

request. For the reasons discussed 

below, the Commission is granting ICE 

Clear Europe’s requests and requiring 

ICE Clear Europe to retain and produce 

upon request certain records. 

II. Discussion and Commission 

Findings 

ICE Clear Europe is registered with 

the Commission as a clearing agency 

under section 17A of the Exchange Act 

solely for the purpose of clearing 


ddrumheller on DSK120RN23PROD with NOTICES1