Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Notices 102231 

52 17 CFR 200.30–3(a)(12). 

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

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

4The term ‘‘Participant’’ is defined in Article 1, 

Rule 1(s) to mean, among other things, any 

Participant Firm that holds a valid Trading Permit 

and that a Participant shall be considered a 

‘‘member’’ of the Exchange for purposes of the Act. 

If a Participant is not a natural person, the 

Participant may also be referred to as a Participant 

Firm. 

5See Securities Exchange Act Release No. 51808 

(June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) 

(File No. S7–10–04) (Final Rule) (‘‘Regulation 

NMS’’). 

6See Securities Exchange Act Release No. 61358, 

75 FR 3594, 3597 (January 21, 2010) (File No. S7– 

02–10) (Concept Release on Equity Market 

Structure). 

7See Cboe U.S Equities Market Volume 

Summary, available at https://markets.cboe.com/us/ 

equities/market_share. 

8See FINRA ATS Transparency Data, available at 

https://otctransparency.finra.org/otctransparency/ 

AtsIssueData. A list of alternative trading systems 

registered with the Commission is available at 

https://www.sec.gov/foia/docs/atslist.htm. 

9See Cboe Global Markets U.S. Equities Market 

Volume Summary, available at http://

markets.cboe.com/us/equities/market_share/. 

10See id. 

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–GEMX–2024–42 and should be 

submitted on or before January 7, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.52

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29623 Filed 12–16–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101879; File No. SR– 

NYSECHX–2024–35] 

Self-Regulatory Organizations; NYSE 

Chicago, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend the Fee 

Schedule of NYSE Chicago, Inc. 

December 11, 2024. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on December 

2, 2024, the NYSE Chicago, Inc. (‘‘NYSE 

Chicago’’ or ‘‘Exchange’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I and II 

below, which Items have been prepared 

by the self-regulatory organization. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend the 

Fee Schedule of NYSE Chicago, Inc. (the 

‘‘Fee Schedule’’) by modifying certain 

fees and credits applicable to 

Participants for executions resulting 

from single-sided orders. The proposed 

rule change is available on the 

Exchange’s website at www.nyse.com, at 

the principal office of the Exchange, and 

at the Commission’s Public Reference 

Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

self-regulatory organization 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 those statements may be examined at 

the places specified in Item IV below. 

The Exchange has prepared summaries, 

set forth in sections A, B, and C below, 

of the most significant parts of such 

statements. 

A. Self-Regulatory Organization’s 

Statement of the Purpose of, and the 

Statutory Basis for, the Proposed Rule 

Change 

1. Purpose 

The Exchange proposes to amend the 

Fee Schedule by modifying certain fees 

and credits applicable to Participants 4

for executions resulting from singlesided orders, as described below. The 

Exchange proposes to implement the fee 

changes effective December 2, 2024. 

Background 

The Exchange operates in a highly 

competitive market. The Commission 

has repeatedly expressed its preference 

for competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and, also, recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 5

While Regulation NMS has enhanced 

competition, it has also fostered a 

‘‘fragmented’’ market structure where 

trading in a single stock can occur 

across multiple trading centers. When 

multiple trading centers compete for 

order flow in the same stock, the 

Commission has recognized that ‘‘such 

competition can lead to the 

fragmentation of order flow in that 

stock.’’ 6 Indeed, equity trading is 

currently dispersed across 16 

exchanges,7 numerous alternative 

trading systems,8 and broker-dealer 

internalizers and wholesalers, all 

competing for order flow. Based on 

publicly available information, no single 

exchange currently has more than 20% 

market share.9 Therefore, no exchange 

possesses significant pricing power in 

the execution of equity order flow. More 

specifically, the Exchange’s share of 

executed volume of equity trades in 

Tapes A, B and C securities is less than 

1%.10

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can move order flow, or discontinue or 

reduce use of certain categories of 

products. While it is not possible to 

know a firm’s reason for shifting order 

flow, the Exchange believes that one 

such reason is because of fee changes at 

any of the registered exchanges or nonexchange venues to which the firm 

routes order flow. Accordingly, 

competitive forces compel the Exchange 

to use exchange transaction fees and 

credits because market participants can 

readily trade on competing venues if 

they deem pricing levels at those other 

venues to be more favorable. 

Proposed Rule Change 

Pursuant to Section E.1 of the Fee 

Schedule, the Exchange currently 

charges a fee for removing liquidity and 

for providing liquidity in single-sided 

orders in Tape A, B and C securities. For 

each of Tape A, B and C securities with 

a share price equal to or greater than 

$1.00, the Exchange charges a fee of 

$0.0010 per share for orders that both 

remove liquidity and provide liquidity. 

The Exchange proposes the following 

changes for single-sided orders in Tape 

A, B and C securities that remove 

liquidity and provide liquidity. For each 

single-sided order in Tape A, B and C 


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102232 Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Notices 

11A MPL Order is a limit order that is not 

displayed and does not route, with a working price 

at the lower (higher) of the midpoint of the 

Protected Best Bid/Offer or its limit price. See 

NYSE Chicago Rule 7.31(d)(3). 

12See infra, note 17. 

13 15 U.S.C. 78f(b). 

14 15 U.S.C. 78f(b)(4) and (5). 

15See Cboe U.S Equities Market Volume 

Summary, available at https://markets.cboe.com/us/ 

equities/market_share. 

16 Id. 

17See Regulation NMS, supra note 5, 70 FR at 

37499. 

18Cboe EDGA Exchange, Inc. (‘‘EDGA’’), for 

example, charges a fee of $0.0030 per share for 

orders that remove liquidity in securities priced at 

or above $1.00. See EDGA fee schedule, available 

at https://www.cboe.com/us/equities/membership/ 

fee_schedule/edga/. Long-Term Stock Exchange 

(‘‘LTSE’’) similarly charges a fee of $0.0030 per 

share for orders that remove liquidity in securities 

priced at or above $1.00. See LTSE fee schedule, 

available at https://ltse.com/trading/fee-schedules. 

securities that removes liquidity, the 

Exchange proposes to modify the fee 

from $0.0010 per share to $0.0030 per 

share. For each single-sided order in 

Tape A, B and C securities that provides 

liquidity, the Exchange proposes to 

replace the current fee of $0.0010 per 

share with a credit of $0.0029 per share 

for orders that provide displayed 

liquidity, and a credit of $0.0014 per 

share for orders that provide nondisplayed liquidity, including MidPoint Liquidity (‘‘MPL’’) Orders.11

The proposed rule change is intended 

to encourage Participants to direct 

orders that add liquidity, thereby 

contributing to robust levels of trading, 

which would benefit all market 

participants. The Exchange believes that 

the proposed changes, taken together, 

will encourage submission of additional 

liquidity in Tape A, B and C securities 

to qualify for higher credits, thereby 

promoting price discovery and 

transparency and enhancing order 

execution opportunities for Participants. 

The Exchange notes that despite the fee 

increase proposed for orders that 

remove liquidity, the Exchange’s fees 

remain competitive with the fees to 

remove liquidity in securities with a 

share price equal to or greater than 

$1.00 charged by other equities 

exchanges.12

In connection with the proposed rule 

change, the Exchange also proposes to 

amend the heading of Section E. of the 

Fee Schedule by adding the words ‘‘and 

Credits.’’ With this proposed change, 

Section E. would be titled ‘‘Transaction 

and Order Processing Fees and Credits.’’ 

The Exchange similarly proposes to add 

the words ‘‘and credits’’ to the text that 

immediately follows the pricing table 

under Section E.1. Additionally, the 

Exchange proposes to amend the text of 

paragraph (a) under Section E.1 by 

adding the word ‘‘fee’’ after ‘‘liquidity 

removing’’ and replacing the word ‘‘fee’’ 

with ‘‘credits’’ after ‘‘liquidity 

providing’’ and replace the word 

‘‘charged’’ with ‘‘assessed’’ to account 

for the proposed change to adopt credits 

payable to Participants under this 

proposed rule change. Finally, the 

Exchange proposes to amend the 

heading titled ‘‘Liquidity Providing 

Fee’’ under Section E.1 of the Fee 

Schedule to ‘‘Liquidity Providing Rate’’ 

as that column will now contain fees 

and credits assessed to Participants. 

2. Statutory Basis 

The Exchange believes that the 

proposed rule change is consistent with 

Section 6(b) of the Act,13 in general, and 

furthers the objectives of Sections 

6(b)(4) and (5) of the Act,14 in particular, 

because it provides for the equitable 

allocation of reasonable dues, fees, and 

other charges among its members, 

issuers and other persons using its 

facilities and does not unfairly 

discriminate between customers, 

issuers, brokers or dealers. 

The Exchange operates in a highly 

fragmented and competitive market in 

which market participants can readily 

direct their order flow to competing 

venues if they deem fee levels at a 

particular venue to be excessive or 

incentives to be insufficient. More 

specifically, the Exchange is only one of 

sixteen registered equities exchanges, 

and there are a number of alternative 

trading systems and other off-exchange 

venues, to which market participants 

may direct their order flow. As noted 

above, based on publicly available 

information, no single registered 

equities exchange has more than 

approximately 20% of the total market 

share of executed volume of equities 

trading.15 Thus, in such a lowconcentrated and highly competitive 

market, no single equities exchange 

possesses significant pricing power in 

the execution of order flow, and the 

Exchange represents less than 1% of the 

overall market share.16 The Commission 

and the courts have repeatedly 

expressed their preference for 

competition over regulatory 

intervention in determining prices, 

products, and services in the securities 

markets. In Regulation NMS, the 

Commission highlighted the importance 

of market forces in determining prices 

and SRO revenues and also recognized 

that current regulation of the market 

system ‘‘has been remarkably successful 

in promoting market competition in its 

broader forms that are most important to 

investors and listed companies.’’ 17

The Exchange believes that the evershifting market share among the 

exchanges from month to month 

demonstrates that market participants 

can shift order flow or discontinue or 

reduce use of certain categories of 

products, in response to new or 

different pricing structures being 

introduced into the market. 

Accordingly, competitive forces 

constrain the Exchange’s transaction 

fees and rebates, and market 

participants can readily trade on 

competing venues if they deem pricing 

levels at those other venues to be more 

favorable. The Exchange believes the 

proposal reflects a reasonable and 

competitive pricing structure designed 

to incentivize Participants to direct 

orders that add and remove liquidity to 

the Exchange, which the Exchange 

believes would deepen liquidity and 

promote market quality on the Exchange 

to the benefit of all market participants. 

Fees for Orders That Remove Liquidity 

The Exchange believes that the 

proposed increase to the fees for 

transactions that remove liquidity in 

Tape A, B and C securities with a share 

price equal to or greater than $1.00 is 

reasonable, equitably allocated and not 

unfairly discriminatory. Combined with 

the adoption of credits proposed herein, 

the purpose of this proposed rule 

change is to encourage additional 

liquidity on the Exchange. The 

proposed pricing structure is designed 

to continue to encourage Participants to 

maintain or increase their order flow 

directed to the Exchange, thereby 

contributing to a deeper and more liquid 

market to the benefit of all market 

participants and enhancing the 

attractiveness of the Exchange as a 

trading venue. The Exchange notes that 

the proposed fee for executions of 

single-sided orders that remove 

liquidity is comparable to, and 

competitive with, the fees charged for 

executions of liquidity-removing orders 

charged by other equities exchanges.18

The Exchange further believes the 

proposed increased fee is fair, equitable 

and not unfairly discriminatory because 

the pricing tier will continue to be 

available to all Participants whose 

orders remove liquidity. In addition, the 

Exchange believes that the proposed 

increased fee is equitable and not 

unfairly discriminatory as all similarly 

situated market participants will be 

subject to the same fee on an equal and 

non-discriminatory basis. 


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Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Notices 102233 

19LTSE, for example, provides a credit of $0.0028 

per share for orders that provide displayed 

liquidity, and a credit of $0.0014 per share for 

orders that provide non-displayed liquidity. See 

LTSE fee schedule, available at https://ltse.com/ 

trading/fee-schedules. NYSE Arca, Inc. (‘‘NYSE 

Arca’’), for example, provides a credit of $0.0010 

per share for MPL Orders. See NYSE Arca fee 

schedule, available at https://www.nyse.com/ 

publicdocs/nyse/markets/nyse-arca/NYSE_Arca_

Marketplace_Fees.pdf. 

20 15 U.S.C. 78f(b)(8). 

21See Securities Exchange Act Release No. 51808, 

70 FR 37495, 37498–99 (June 29, 2005) (S7–10–04) 

(Final Rule). 

Credits for Orders That Provide 

Displayed and Non-Displayed Liquidity 

The Exchange believes that the 

proposed changes to replace the current 

fee with proposed credits for orders that 

provide displayed and non-displayed 

liquidity in Tape A, B and C securities 

with a share price equal to or greater 

than $1.00, including MPL Orders, are 

reasonable, equitable and not unfairly 

discriminatory. The proposed credits for 

adding liquidity are reasonable because 

they would serve to incentivize 

submission of liquidity to a public 

exchange, thereby benefiting all 

Participants. The Exchange believes the 

proposed credits are also reasonable as 

they would apply to all Participants. 

The Exchange believes that providing a 

credit of $0.0029 per share for 

executions of single-sided orders that 

provide displayed liquidity, and a credit 

of $0.0014 per share for executions of 

single-sided orders that provide nondisplayed liquidity and for MPL Orders 

is also reasonable because the proposed 

credits are comparable to credits 

provided by other equities exchanges.19

The Exchange believes that the 

proposed changes will encourage the 

submission of a greater number of 

orders to a national securities exchange, 

thus promoting price discovery and 

transparency and enhancing order 

execution opportunities for Participants 

on the Exchange. However, without 

having a view of Participant’s activity 

on other markets and off-exchange 

venues, the Exchange has no way of 

knowing whether this proposed rule 

change would result in a change in 

trading behavior by Participants. The 

Exchange believes that the recalibrated 

fees and credits for orders that add and 

remove liquidity may provide an 

incentive for Participants to increase the 

number of orders they submit to the 

Exchange, thereby promote price 

discovery and increased execution 

opportunities for all Participants. 

The Exchange believes the proposed 

rule change would improve market 

quality for all market participants on the 

Exchange and, as a consequence, attract 

more liquidity to the Exchange, thereby 

improving market-wide quality and 

price discovery. Additionally, with 

respect to MPL Orders, the Exchange 

believes that the proposed credit is 

reasonable, equitable and not unfairly 

discriminatory because it may provide 

increased opportunities for market 

participants to interact with orders 

priced at the midpoint of the PBBO, 

thus providing price improving 

liquidity to market participants and 

thereby increase the quality of order 

execution on the Exchange, which 

would benefit all market participants. 

Moreover, all market participants would 

be eligible for the proposed credit. 

The Exchange also believes that the 

proposed changes to the text under 

Section E.1. of the Fee Schedule would 

not be inconsistent with the public 

interest and the protection of investors 

because investors will not be harmed 

and in fact would benefit from increased 

clarity and transparency, thereby 

reducing potential confusion. 

The proposal neither targets nor will 

it have a disparate impact on any 

particular category of market 

participant. 

Finally, the submission of orders to 

the Exchange is optional for Participants 

in that they could choose whether to 

submit orders to the Exchange and, if 

they do, the extent of its activity in this 

regard. The Exchange believes that it is 

subject to significant competitive forces, 

as described below in the Exchange’s 

statement regarding the burden on 

competition. For the foregoing reasons, 

the Exchange believes that the proposal 

is consistent with the Act. 

B. Self-Regulatory Organization’s 

Statement on Burden on Competition 

In accordance with Section 6(b)(8) of 

the Act,20 the Exchange believes that the 

proposed rule change would not impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act. Instead, as 

discussed above, the Exchange believes 

that the proposed changes would 

encourage the submission of orders to a 

public exchange, thereby promoting 

market depth, price discovery and 

transparency and enhancing order 

execution opportunities for Participants. 

As a result, the Exchange believes that 

the proposed change furthers the 

Commission’s goal in adopting 

Regulation NMS of fostering integrated 

competition among orders, which 

promotes ‘‘more efficient pricing of 

individual stocks for all types of orders, 

large and small.’’ 21

Intramarket Competition. The 

Exchange believes the proposed change 

would not impose any burden on 

competition that is not necessary or 

appropriate in furtherance of the 

purposes of the Act. The proposed 

change is designed to attract additional 

orders to the Exchange. The Exchange 

believes that despite the increased fee, 

Participants would continue to direct 

their orders to be executed on the 

Exchange instead of at a competing 

exchange, given the introduction of 

credits for adding liquidity. Greater 

overall order flow, trading 

opportunities, and pricing transparency 

benefit all market participants on the 

Exchange by enhancing market quality 

and continuing to encourage 

Participants to send orders, thereby 

contributing towards a robust and wellbalanced market ecosystem. 

Additionally, the Exchange believes the 

proposed credits applicable to orders 

that provide non-displayed liquidity 

and to MPL Orders would enhance 

order execution opportunities for all 

Participants. The Exchange notes that 

the current and proposed fees would be 

available to all similarly situated market 

participants, and, as such, the proposed 

change would not impose a disparate 

burden on competition among market 

participants on the Exchange. As noted, 

the proposal would apply to all 

similarly situated Participants on the 

same and equal terms, who would 

benefit from the changes on the same 

basis. 

Intermarket Competition. The 

Exchange operates in a highly 

competitive market in which market 

participants can readily choose to send 

their orders to other exchange and offexchange venues if they deem fee levels 

at those other venues to be more 

favorable. As noted above, the 

Exchange’s market share of intraday 

trading (i.e., excluding auctions) is 

currently less than 1%. In such an 

environment, the Exchange must 

continually review, and consider 

adjusting its fees and rebates to remain 

competitive with other exchanges and 

with off-exchange venues. Because 

competitors are free to modify their own 

fees and credits in response, the 

Exchange does not believe its proposed 

fee change can impose any burden on 

intermarket competition. 

The Exchange believes that the 

proposed changes could promote 

competition between the Exchange and 

other execution venues, including those 

that currently offer similar order types 

and comparable transaction pricing, by 

encouraging additional orders to be sent 

to the Exchange for execution. 


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102234 Federal Register / Vol. 89, No. 242 / Tuesday, December 17, 2024 / Notices 

22 15 U.S.C. 78s(b)(3)(A)(ii). 

23 17 CFR 240.19b–4(f)(2). 

24 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. 79528 

(Dec. 12, 2016), 81 FR 91232 (Dec. 16, 2016) (SR– 

DTC–2016–007, SR–FICC–2016–005, SR–NSCC– 

2016–003). 

4See Securities Exchange Act Release No. 101695 

(Nov. 21, 2024), 89 FR 93763 (Nov. 27, 2024) (SR– 

FICC–2024–007) (‘‘Account Segregation Filing’’). 

The changes proposed in the Account Segregation 

Filing are expected to be implemented by no later 

than March 31, 2025, on a date to be announced by 

an Important Notice posted to FICC’s website. 

Terms not defined herein are defined in the GSD 

Rules, available at www.dtcc.com/∼/media/Files/ 

Downloads/legal/rules/ficc_gov_rules.pdf. 

5 17 CFR 240.17ad–22(e)(6)(i). See Securities 

Exchange Act Release No. 99149 (Dec. 13, 2023), 89 

FR 2714 (Jan. 16, 2024) (‘‘Adopting Release,’’ and 

the rules adopted therein referred to herein as 

‘‘Treasury Clearing Rules’’). 

6 17 CFR 240.15c3–3a, Note H. See id. 

C. Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

No written comments were solicited 

or received with respect to the proposed 

rule change. 

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)(ii) of the Act 22 and Rule 

19b–4(f)(2) thereunder.23 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 rule-comments@

sec.gov. Please include file number SR– 

NYSECHX–2024–35 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–NYSECHX–2024–35. 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 

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–2024–35 and should be 

submitted on or before January 7, 2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.24

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–29626 Filed 12–16–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101882; File No. SR–FICC– 

2024–011] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing of Proposed Rule Change To 

Amend the Clearing Agency 

Investment Policy 

December 11, 2024. 

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 December 

3, 2024, 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. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change consists of 

amendments to the Clearing Agency 

Investment Policy (‘‘Investment Policy’’, 

or ‘‘Policy’’) of FICC and its affiliates, 

The Depository Trust Company (‘‘DTC’’) 

and National Securities Clearing 

Corporation (‘‘NSCC,’’ and together with 

FICC and DTC, the ‘‘Clearing 

Agencies’’) 3 and would facilitate 

changes to the FICC Government 

Securities Division Rulebook (‘‘GSD 

Rules’’) that will be implemented by 

FICC.4

Specifically, as described in greater 

detail in the Account Segregation Filing, 

FICC will implement changes to the 

GSD Rules that will, among other 

things, provide for FICC to (1) hold 

margin collected with respect to the 

proprietary transactions of a Netting 

Member separately and independently 

from the margin collected with respect 

to transactions that a Netting Member 

submits to FICC on behalf of indirect 

participants, (2) legally segregate certain 

margin collected with respect to indirect 

participant transactions from the margin 

for a Netting Member’s proprietary 

transactions (as well as those of other 

indirect participants), and (3) limit 

investments of certain margin collected 

with respect to indirect participant 

transactions to only U.S. Treasuries 

with a maturity date of one year or less. 

The Clearing Agencies are proposing to 

amend the Policy to facilitate 

implementation of these changes and 

would also make other clean-up changes 

to the Policy, as described in greater 

detail below. 

The changes that were proposed in 

the Account Segregation Filing and the 

changes proposed to the Investment 

Policy herein are collectively designed 

to comply with certain requirements of 

Rule 17ad–22(e)(6)(i) under the Act,5

and to ensure that FICC has appropriate 

rules to satisfy certain conditions of 

Note H to Rule 15c3–3a under the Act 

for a broker-dealer to record a debit in 

the customer and broker-dealer 

proprietary account reserve formulas.6


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