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[Federal Register Volume 90, Number 14 (Thursday, January 23, 2025)]
[Notices]
[Pages 8060-8064]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01546]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-102217; File No. SR-LCH SA-2024-005]

Self-Regulatory Organizations; LCH SA; Order Granting Approval of 
Proposed Rule Change by LCH SA Relating to Dealer Status

January 16, 2025.

I. Introduction

    On November 21, 2024, Banque Centrale de Compensation, which 
conducts business under the name LCH SA (``LCH SA''), filed with the 
Securities and Exchange Commission (``Commission'' or ``SEC''), 
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change (the ``Proposed Rule Change'') to amend its CDS 
Clearing Rule Book (``Rule Book'') and CDS Clearing Procedures 
(``Procedures'') (collectively ``CDS Clearing Rules'') to accept 
transactions entered into by affiliates of a Clearing Member (``CDS 
Dealers'') registered in the name of the Clearing Member, as well as 
various technical amendments. The Proposed Rule Change was published 
for comment in the Federal Register on December 6, 2024.\3\ The 
Commission has not received any comments on the Proposed Rule Change. 
For the reasons discussed below, the Commission is approving the 
Proposed Rule Change.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 101790 (Dec. 2, 2024), 
89 FR 97142 (Dec. 6, 2024) (File No. SR-LCH SA-2024-005) 
(``Notice'').
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II. Description of the Proposed Rule Change

    LCH SA is a clearing agency registered with the Commission.

[[Page 8061]]

Through its CDSClear business unit, LCH SA provides central 
counterparty services for security-based swaps, including credit 
default swaps and options on credit default swaps. LCH SA is an 
affiliate of LCH Ltd, through common ownership by LCH Group.\4\ LCH 
SA's ultimate parent company is London Stock Exchange Group 
(``LSEG'').\5\
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    \4\ LCH SA, Comprehensive Disclosure As required by SEC Rule 
17Ad-22(e)(23), Section 3.2, available at https://www.lch.com/
system/files/media_root/
LCH%20SA%20Comprehensive%20Disclosure%20Covered%20Clearing%20Agency%2
0standards%20-%20SEC%20-
%202020_Final%20version.pdf#:~:text=LCH%20SA%20provides%2C%20on%20its
%20website%2C%20a%20comprehensive,elements%20required%20by%20regulati
on%20EU%20N%C2%B0%20575%2F2013%20%28CRR%29.
    \5\ Id.
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    Currently, LCH SA's Clearing Members \6\ may submit transactions to 
LCH SA for clearing for their own account (i.e., House transactions). 
Clearing Members may submit House transactions using an Approved Trade 
Source System (``ATSS'').\7\ An ATSS is an entity, such as a trading 
venue, that allows Clearing Members to agree to transactions and submit 
those transactions for clearing at LCH SA.
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    \6\ Capitalized terms not otherwise defined herein have the 
meanings assigned to them in the LCH SA CDS Clearing Rule Book or 
CDS Clearing Procedures, as applicable.
    \7\ LCH SA CDS Clearing Rule Book, Article 3.1.2.2 and Article 
3.1.4.1.
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    Clearing Members currently submit these House transactions directly 
to LCH SA through an ATSS. Under the Proposed Rule Change, Affiliates 
of Clearing Members, under certain conditions, could submit 
transactions through an ATSS for clearing at LCH SA on behalf of their 
affiliated Clearing Members, as House transactions of those Clearing 
Members.
    LCH SA thus proposes adding a new source of proprietary trades for 
Clearing Members, as submitted by their affiliates. The proposed 
updates comprise two categories. The first category would make changes 
to the Rule Book and Procedures to allow these Affiliates to submit 
House transactions on behalf of Clearing Members. LCH SA would do so by 
onboarding these Affiliates into a new category of participant known as 
CDS Dealer. The second category includes other miscellaneous changes.

A. Dealer Status

Proposed Changes to the Rule Book
    In the Rule Book, the proposed changes first would amend an 
existing provision to allow LCH SA to onboard Affiliates of CDS 
Dealers. As explained below, a Clearing Member that is a CCM \8\ would 
be allowed to onboard an Affiliate as a CDS Dealer, subject to certain 
conditions. Current Article 5.1.1.1 provides that, pursuant to EMIR, an 
Affiliate of a CCM shall be treated as a CCM Client. The Proposed Rule 
Change would remove this sentence requiring an Affiliate of a CCM to be 
treated as a CCM Client from Article 5.1.1.1 and instead specify that a 
CCM Client may include an Affiliate of a CCM. This change would allow 
LCH SA to onboard an Affiliate of a CCM as a CDS Dealer, instead of as 
a CCM Client only.
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    \8\ The Rule Book defines a CCM as any legal entity admitted as 
a Clearing Member in accordance with the CDS Clearing Rules at LCH 
SA and a party to the CDS Admission Agreement, including General 
Members and Select Members. LCH SA CDS Clearing Rule Book Chapter 1 
Article 1.1.1.
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    The proposed changes also set out certain requirements for the 
relationship between a Clearing Member and its Affiliate registered as 
a CDS Dealer. Specifically, under new Article 2.5.1.1, a CDS Dealer may 
only submit transactions to LCH SA for a Clearing Member with which the 
CDS Dealer has entered into a CDS Dealer Clearing Agreement. The 
proposed changes also modify existing Article 2.3.1.1 to require that 
each Clearing Member notify LCH SA of any material breach of CDS 
Clearing Documentation by any CDS Dealer with which the Clearing Member 
has entered into a CDS Dealer Clearing Agreement. The proposed changes 
also amend Article 2.3.1.5 (ii) to clarify that Clearing Members will 
not be in breach of any obligation to provide information to LCH SA if 
they are prevented by the refusal of a CDS Dealer to provide the 
information. Finally, the proposed changes would amend Article 4.2.7.2 
to authorize Clearing Members to provide Markit LCH Settlement Prices 
to CDS Dealers.
    The proposed changes add a new Chapter 5 in Title II of the Rule 
Book to explain how a CDS Dealer presents Original Transactions to LCH 
SA for clearing, novation, and registration in the name of an affiliate 
Clearing Member. As noted, under new Article 2.5.1.1, a CDS Dealer may 
only submit transactions to LCH SA for a Clearing Member with which the 
CDS Dealer has entered into a CDS Dealer Clearing Agreement. Moreover, 
a CDS Dealer must be admitted by LCH SA into the Register of CDS 
Dealers, and as explained in new Article 2.5.1.2, an applicant for 
admission into the Register must satisfy the criteria in Section 1 of 
the Procedures. The proposed changes state that a CDS Dealer is bound 
by CDS Clearing Documentation once admitted to the Register of Dealers. 
The proposed changes in new Chapter 5 also reference Section 1 of the 
Procedures, specifying the conditions for admission as a CDS Dealer. 
The proposed changes specify that LCH SA may suspend or remove a CDS 
Dealer and the CDS Dealer remains bound by its obligations under the 
CDS Clearing Documentation and the CDS Dealer Clearing Agreement. The 
proposed changes also automatically suspend a CDS Dealer if the 
affiliate Clearing Member is suspended.
    With respect to the novation of trades submitted by a CDS Dealer, 
the proposed changes amend Articles 3.1.6.1(iii) and (iv) to state that 
a Clearing Member in a CDS Dealer Clearing Agreement with a CDS Dealer 
will be party to any trade novated from an Original Transaction 
presented by that CDS Dealer for clearing. The proposed changes replace 
``Clearing Member concerned'' with ``Clearing Member in whose Trade 
Accounts such Cleared Transactions are registered'' in Article 3.1.6.7.
    In addition to these amendments, the proposed changes add new 
defined terms, and modify existing defined terms, regarding CDS 
Dealers. For example, the proposed changes add the term ``CDS Dealer'' 
to mean a Person admitted by LCH SA to the Register of CDS Dealers and 
who has not been removed from the Register of CDS Dealers and is not a 
Clearing Member. The proposed changes also add the term ``Register of 
CDS Dealers'' to refer to LCH SA's list of CDS Dealers eligible to 
submit transactions for clearing. The proposed changes add the term 
``CDS Dealer Clearing Agreement'' to describe the written agreement a 
CDS Dealer must execute with LCH SA and a CCM. The proposed changes add 
a reference to a CDS Dealer in the term ``ATSS Participant,'' add the 
term ``CDS Dealer'' to the terms ``Clearing Notice,'' ``House Trade 
Leg,'' ``Index Swaption Clearing Service,'' and ``Procedures,'' and 
amends the term ``CCM Client'' to exclude CDS Dealers. The proposed 
changes also amend the term ``House Trade Account'' to include Cleared 
Transactions resulting from the novation of Original Transactions 
presented by a CDS Dealer.
    Finally, the proposed changes modify existing provisions of the 
Rule Book to include the term CDS Dealer. For example, the proposed 
changes specify in Article 1.2.4.1 that LCH SA can waive the time fixed 
by the CDS Clearing Documentation for actions by a CDS Dealer, as it 
can for actions by a Clearing Member. Similarly, the proposed changes 
ensure that CDS Dealers are covered by the Rule Book by adding

[[Page 8062]]

references to the term CDS Dealer to the following provisions: Articles 
1.2.5.1 (communicating with Clearing Members), 1.2.13.1 and 1.2.13.4 
(disclosures on handling personal data of individuals disclosed to LCH 
SA), 1.2.13.5 (consent to phone recording), 2.2.7.7 (relationship with 
ATTS); 3.1.6.6 (disclaimer of warranty for use of ATSS), 3.1.6.4 
(stipulating no credit event notice occurs before novation), 3.1.10.1 
and 3.1.10.2 (removal of Backloading Transactions and Intraday 
Transactions from the TIW), 3.1.9.1 (notice of Loss Distribution post-
default); 4.3.2.3 (suspension of trading privileges following a 
Clearing Member default); and Section 1.2.10 (liability of Clearing 
Members and CDS Dealers to LCH SA and disclaimer of liability by LCH 
SA). The proposed changes also add the term ``CDS Dealer'' to ensure 
that CDS Dealers are among the entities notified by LCH SA of an Early 
Termination Trigger Date in Article 3.1.9.4 and remove a reference to 
``Clearing Members'' at the end of the same article to broaden the 
scope of trade submitters to include CDS Dealers.
Proposed Changes to CDS Clearing Procedures
    The proposed changes amend Section 1, Section 4, and Section 5 of 
LCH SA's CDS Clearing Procedures (the ``Procedures'').
    In Section 1 of the Procedures, the proposed changes establish the 
application procedure for an Affiliate applying to become a CDS Dealer. 
The proposed changes first rename the title of Section 1 from 
``Membership'' to ``Clearing Member and CDS Dealer Status,'' to clarify 
that the section relates to Clearing Members and CDS Dealers, not just 
Clearing Members. Similarly, the proposed changes amend Paragraph 1.1 
to indicate that it relates to the application procedures for Clearing 
Member status to distinguish it from the new application procedure for 
CDS Dealer status, which will be found in Paragraph 1.2. Finally, the 
proposed changes add references to the status of Clearing Member in 1.1 
and deletes the reference to Regulatory Body in Paragraph 1.1(d)(iii).
    The proposed changes add a new paragraph 1.2 for the application 
procedure for CDS Dealer Status. Under new Paragraph 1.2(a), an 
application for CDS Dealer status must be made in such form and fashion 
as prescribed by LCH SA from time to time and may be obtained from LCH 
SA's CDSClear Business Development & Relationship Management team. 
Moreover, Applicants approved by LCH SA for the CDS Dealer status must, 
within six months of notification of their approval, fulfil all 
conditions attached to their approval.\9\ Paragraph 1.2(b) describes 
the actions LCH SA can take as part of its due diligence and review 
process, including making inquiries about the nature of an applicant 
and asking an applicant to supply additional information.\10\ The 
proposed changes also set out in Paragraph 1.2(c) several criteria a 
CDS Dealer applicant must satisfy to be considered for admission: be 
validly incorporated and existing under the laws of its jurisdiction of 
incorporation in good standing; execute, maintain, and comply with a 
CDS Dealer Clearing Agreement; accept and comply with the CDS Clearing 
Documentation by executing the CDS Dealer Clearing Agreement; comply 
with all Applicable Law relating to its status as CDS Dealer and the 
performance of obligations from the CDS Clearing Documentation; pay all 
required fees and amounts in accordance with CDS Clearing Documentation 
and/or CDS Dealer Clearing Agreement; be an ATSS Participant for 
submitting Original Transactions; if the applicant specifies branches, 
require those branches to be the same legal entity as the CDS Dealer; 
and have a clearing arrangement governing the submission of Original 
Transactions in place with a Clearing Member within the CDS Dealer's 
Financial Group, such as a give-up agreement or agency agreement.
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    \9\ This provision is similar to existing paragraph 1.1(f), 
which allows LCH SA to impose limitations on an Applicant for 
Clearing Member status and requires a Clearing Member to begin 
operations within six months after LCH SA approves its application.
    \10\ Such inquiries are nearly identical to the authority LCH SA 
has in conducting inquiries on Clearing Member applicants and could 
include obtaining information from third parties.
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    Finally, the proposed changes also clarify the scope of Paragraph 
1.3 by adding a reference to the clearing membership, excluding CDS 
Dealer status.
    In Section 4 of the Procedures, the proposed changes amend 
Paragraph 4.1(c), which specifies certain criteria that a transaction 
submitted to LCH SA for clearing must satisfy. Among other things, the 
Clearing Member submitting the transaction must not be suspended, and 
LCH SA must be permitted to clear the transaction pursuant to 
Applicable Law. The proposed changes specify that these Eligibility 
Requirements for the Clearing Member to submit an Original Transaction 
also apply to a Clearing Member whose CDS Dealers and/or Clients submit 
Original Transactions, with certain modifications. Specifically, the 
proposed changes (i) add new criteria pursuant to which a CDS Dealer 
presenting an Original Transaction shall not be suspended or removed 
from the Register of CDS Dealers and (ii) require that LCH SA shall be 
permitted to clear such Original Transaction, including when a CDS 
Dealer is presenting the transaction.
    The proposed changes modify Paragraphs 4.2(f)(ii), 4.3(e)(ii), and 
4.4(e)(ii). These provisions currently provide that a Clearing Member 
may submit a transaction to LCH SA for clearing, even where the 
transaction does not meet the Eligibility Requirements discussed above, 
if the transaction is a risk reducing transaction. The proposed changes 
also add that CDS Dealers and Clients will also be able to submit such 
risk-reducing transactions in those same circumstances.
    Finally, the proposed changes amend Section 5 of the Procedures, 
which relates to the operations of LCH SA's CDS Clearing services. 
Paragraph 5.13 currently allows a Clearing Member to reverse a cleared 
transaction in certain circumstances. The proposed changes add that a 
Clearing Member may also reverse a transaction submitted on its behalf 
by a CDS Dealer, in the same circumstances as a transaction submitted 
directly by the Clearing Member.

B. Technical Amendments

    LCH SA also proposes several minor formatting changes, 
typographical corrections, and updates to internal cross references. 
For example, in the Rule Book, the proposed changes modify the defined 
term ``Trading Venue Transaction'' by replacing ``[w]ith respect of a 
Clearing Member'' to ``[w]ith respect to a Clearing Member.'' The 
proposed changes correct other typos and extraneous spaces in Articles 
2.2.3.1, 2.2.1.1(iv), 2.2.2.1(iv), 2.4.1.1, 4.2.7.7., 5.1.1.3(xviii), 
the second paragraph of Article 5.3.3.2 and Articles 5.3.5.1, 5.3.5.2, 
5.3.5.4 and 6.1.1.3(xvi). Similarly, the proposed changes replace 
references to a ``person'' with the defined term ``Person'' in Article 
1.0.1.2, Section 1.1.1, Articles 1.2.12.1, 1.2.12.2, 2.1.1.2, 4.2.7.5, 
6.1.1.2, and the Annex of Appendix 1. The proposed changes also remove 
``CCM'' before ``House Cleared Transactions'' in the term ``CCM House 
Margin Account.''
    In the Procedures Section 1, LCH proposes new numbering of sub-
paragraphs of paragraphs 1.1 and new paragraph 1.2 and the use of the 
defined term ``Person.'' The proposed changes

[[Page 8063]]

also correct a typo in the reference to the ``Access Agreement.''
    In the Procedures Section 5, the proposed changes replace ``LCH 
Website'' with defined term ``Website'' in paragraphs 5.2(a)(iii), 
5.5(a), 5.18.3, 5.18.4, 5.18.5(a), 5.6(a) and 5.8(a), and remove 
reference to the ``CDSClear Margin And Product Flows Document'' in 
Paragraph 5.16(a)(iii)(G)(1).
    Finally, the proposed changes update references to certain laws 
applicable to LCH SA. Specifically, the proposed changes update the 
term ``Data Protection Law'' to the latest EU and French regulations. 
Similarly, the proposed changes add a new Article 1.1.3.10 to Section 
1.1.3 to state that nothing in the CDS Clearing Documentation shall 
compel LCH SA to act in contravention of Applicable Law or other 
regulatory obligations.

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act requires the Commission to approve a 
proposed rule change of a self-regulatory organization if it finds that 
the Proposed Rule Change is consistent with the requirements of the Act 
and the rules and regulations thereunder applicable to the 
organization.\11\ Under the Commission's Rules of Practice, the 
``burden to demonstrate that a proposed rule change is consistent with 
the Exchange Act and the rules and regulations issued thereunder . . . 
is on the self-regulatory organization [`SRO'] that proposed the rule 
change.'' \12\
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    \11\ 15 U.S.C. 78s(b)(2)(C).
    \12\ Rule 700(b)(3), Commission Rules of Practice, 17 CFR 
201.700(b)(3).
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    The description of a proposed rule change, its purpose and 
operation, its effect, and a legal analysis of its consistency with 
applicable requirements must all be sufficiently detailed and specific 
to support an affirmative Commission finding,\13\ and any failure of an 
SRO to provide this information may result in the Commission not having 
a sufficient basis to make an affirmative finding that a proposed rule 
change is consistent with the Exchange Act and the applicable rules and 
regulations.\14\ Moreover, ``unquestioning reliance'' on an SRO's 
representations in a proposed rule change is not sufficient to justify 
Commission approval of a proposed rule change.\15\
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    \13\ Id.
    \14\ Id.
    \15\ Susquehanna Int'l Group, LLP v. Securities and Exchange 
Commission, 866 F.3d 442, 447 (D.C. Cir. 2017).
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    After carefully considering the Proposed Rule Change, the 
Commission finds that the Proposed Rule Change is consistent with the 
requirements of the Exchange Act and the rules and regulations 
thereunder applicable to LCH SA. More specifically, for the reasons 
given below, the Commission finds that the Proposed Rule Change is 
consistent with Section 17A(b)(3)(A) and (F) of the Act \16\ and Rule 
17Ad-22(e)(18)(i).\17\
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    \16\ 15 U.S.C. 78q-1(b)(3)(A) and 15 U.S.C. 78q-1(b)(3)(F).
    \17\ 17 CFR 240.17Ad-22(e)(18)(i).
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A. Consistency With Section 17A(b)(3)(A) of the Act

    Section 17A(b)(3)(A) of the Act requires, among other things, that 
LCH SA has the capacity to be able to facilitate the prompt and 
accurate clearance and settlement of securities transactions and 
derivative agreements and has the capacity to be able to comply with 
the provisions of the Act and the rules and regulations thereunder.\18\ 
Based on review of the record, and for the reasons discussed below, LCH 
SA's changes are consistent with LCH SA having the capacity to 
facilitate prompt and accurate clearance and settlement of derivatives 
agreements and having the capacity to be able to comply with provisions 
of the Act and rules thereunder.
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    \18\ 15 U.S.C. 78q-1(b)(3)(A).
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    As described above, the proposed changes allow affiliates of 
Clearing Members to submit trades on behalf of those Clearing Members 
after being admitted as CDS Dealers. Having more trade sources 
available to a Clearing Member can help facilitate clearing where a 
Clearing Member wants to clear house trades from an affiliate without 
having a to go through a client onboarding process. Expanding trade 
sources for Clearing Members will also facilitate clearing by providing 
Clearing Members with additional options for conducting house business 
as well as managing risk offsets for customer business. The proposed 
changes also require a potential CDS Dealer to go through a formal 
application process and secure documentation formalizing the 
relationship between the Affiliate, Clearing Member, and LCH SA. This 
formalized application process should help facilitate accurate 
clearance and settlement by ensuring that only qualified CDS Dealers 
are approved. The proposed changes also add flexibility for more 
efficient access to cleared markets, which could help encourage and 
facilitate clearing. Additionally, Clearing Members accepting House 
trades from an Affiliate may also benefit from more efficient margin by 
having all trades for the same financial group in a single margin 
account which would also facilitate prompt and accurate clearance and 
settlement.
    Based on the foregoing, the Proposed Rule Change is consistent with 
the requirements of Sections 17A(b)(3)(A) of the Act.\19\
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    \19\ Id.
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B. Consistency With Section 17A(b)(3)(F) of the Act

    Section 17A(b)(3)(F) of the Act requires, among other things, that 
LCH SA's rules be designed to promote the prompt and accurate clearance 
and settlement of securities transactions, and, to the extent 
applicable, derivatives agreements, and foster cooperation and 
coordination with persons engaged in the clearance and settlement of 
securities transactions.\20\ Based on review of the record, and for the 
reasons discussed below, LCH SA's changes are consistent with LCH SA 
having rules designed to promote the prompt and accurate clearance and 
settlement of securities transactions and derivatives agreements and 
fostering cooperation and coordination with persons engaged in the 
clearance and settlement of securities transactions.
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    \20\ 15 U.S.C. 78q-1(b)(3)(F).
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    As discussed above, the proposed change would allow an Affiliate of 
a Clearing Member to submit House transactions on behalf of that 
Clearing Member. By allowing more trade origination sources, the 
Proposed Rule Change helps facilitate prompt and accurate clearance of 
security-based swaps. Having more trade sources for a Clearing Member 
could lead to more trades being cleared. Moreover, the Proposed Rule 
Change helps foster cooperation and coordination between CDS Dealers 
and Clearing Members because a Clearing Member may want to consolidate 
risk with an Affiliate or allow the Affiliate to handle some trading or 
risk offsetting strategies for a common margin account for a financial 
group. The Proposed Rule Change also fosters cooperation between CDS 
Dealers and customers by allowing CDS Dealers to submit for clearing on 
behalf of their affiliated Clearing Members transactions where the 
counterparties are Clients of another Clearing Member. This may foster 
cooperation and promote clearance of transactions, given that some 
customers may choose to enter into transactions with CDS Dealers 
instead of a Clearing Member directly.
    Based on the foregoing, the Proposed Rule Change is consistent with 
the

[[Page 8064]]

requirements of Sections 17A(b)(3)(F) of the Act.\21\
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    \21\ Id.
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C. Consistency With Rule 17Ad-22(e)(18)(i) Under the Act

    Rule 17Ad-22(e)(18)(i) requires covered clearing agencies to, among 
other things, establish objective and publicly disclosed criteria for 
participation which permit fair and open access by indirect 
participants.\22\
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    \22\ 17 CFR 240.17Ad-22(e)(18)(i).
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    The proposed changes will facilitate LCH SA's ability to permit 
fair and open access by indirect participants by applying the same 
public and objective membership standards to potential CDS Dealers as 
are applied to regular Clearing Members, and by by creating a new 
category of CDS Dealer, which will allow eligible indirect participants 
to place trades as a CDS Dealer into an affiliate Clearing Member's 
house account.
    Based on the foregoing, the Proposed Rule Change is consistent with 
the requirements of Rule 17Ad-22(e)(18)(i) under the Act.\23\
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    \23\ Id.
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IV. Conclusion

    On the basis of the foregoing, the Commission finds that the 
Proposed Rule Change is consistent with the requirements of the Act, 
and in particular, Sections 17A(b)(3)(A) and (F) of the Act \24\ and 
Rule 17Ad-22(e)(18)(i).\25\
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    \24\ 15 U.S.C. 78q-1(b)(3)(A) and 15 U.S.C. 78q-1(b)(3)(F).
    \25\ 17 CFR 240.17Ad-22(e)(18)(i).
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    It is therefore ordered pursuant to Section 19(b)(2) of the Act 
that the Proposed Rule Change (SR-LCH SA-2024-005) be, and hereby is, 
approved.\26\
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    \26\ In approving the Proposed Rule Change, the Commission 
considered the proposal's impacts on efficiency, competition, and 
capital formation. 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets, 
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-01546 Filed 1-22-25; 8:45 am]
BILLING CODE 8011-01-P
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