8060 Federal Register / Vol. 90, No. 14 / Thursday, January 23, 2025 / Notices 

7 17 CFR 200.30–3(a)(12). 

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). 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. 

If the Commission takes such action, the 

Commission will institute proceedings to determine 

whether the proposed rule change should be 

approved or disapproved. 

5An ‘‘Industry Member’’ is defined as ‘‘a member 

of a national securities exchange or a member of a 

national securities association.’’ See Nasdaq Rule 

General 7(u) (MRX General 7 incorporates The 

Nasdaq Stock Market LLC Rule General 7 by 

reference); See also Section 1.1 of the CAT NMS 

Plan. Unless otherwise specified, capitalized terms 

used in this rule filing are defined as set forth in 

the CAT NMS Plan and/or the CAT Compliance 

Rule. Nasdaq MRX Rule General 7 (Consolidated 

Audit Trail Compliance). 

6Copies 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 

SRO. 

7 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3Securities Exchange Act Release No. 101790 

(Dec. 2, 2024), 89 FR 97142 (Dec. 6, 2024) (File No. 

SR–LCH SA–2024–005) (‘‘Notice’’). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01625 Filed 1–22–25; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102211; File No. SR–MRX– 

2025–01] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Establish Fees for 

Industry Members Related to 

Reasonably Budgeted CAT Costs of 

the National Market System Plan 

Governing the Consolidated Audit Trail 

for 2025 

January 16, 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 January 2, 

2025, Nasdaq MRX, LLC (‘‘MRX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Item I below, 

which Item has been substantially 

prepared by the Exchange. The 

Exchange has designated this proposal 

for immediate effectiveness pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f) thereunder.4 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 a rule change 

to establish fees for Industry Members 5

related to reasonably budgeted CAT 

costs of the National Market System 

Plan Governing the Consolidated Audit 

Trail for 2025. 

The proposed rule change, including 

the Exchange’s statement of the purpose 

of, and statutory basis for, the proposed 

rule change, is available on the 

Exchange’s website at https://

listingcenter.nasdaq.com/rulebook/mrx/ 

rulefilings, at the principal office of the 

Exchange, and on the Commission’s 

website at https://www.sec.gov/rulesregulations/self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-MRX-2025- 

01. 

II. 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.6

Comments may be submitted 

electronically by using the 

Commission’s internet comment form 

(https://www.sec.gov/rules-regulations/ 

self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-MRX-2025- 

01) or by sending an email to rulecomments@sec.gov. Please include file 

number SR–MRX–2025–01 on the 

subject line. Alternatively, paper 

comments may be sent to Secretary, 

Securities and Exchange Commission, 

100 F Street NE, Washington, DC 

20549–1090. All submissions should 

refer to file number SR–MRX–2025–01. 

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-regulations/ 

self-regulatory-organizationrulemaking/national-securitiesexchanges?file_number=SR-MRX-2025- 

01 ). 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–MRX–2025–01 and should be 

submitted on or before February 13, 

2025. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.7

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01553 Filed 1–22–25; 8:45 am] 

BILLING CODE 8011–01–P 

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. 

II. Description of the Proposed Rule 

Change 

LCH SA is a clearing agency 

registered with the Commission. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 90, No. 14 / Thursday, January 23, 2025 / Notices 8061 

4LCH 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%20

Agency%20standards%20-%20SEC%20-%202020_

Final%20version.pdf#:∼:text=LCH%20SA%20

provides%2C%20on%20its%20website%2C%20

a%20comprehensive,elements%20

required%20by%20regulation%20EU%20N%C2%

B0%20575%2F2013%20%28CRR%29. 

5 Id. 

6Capitalized 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. 

7LCH SA CDS Clearing Rule Book, Article 3.1.2.2 

and Article 3.1.4.1. 

8The 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. 

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

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. 

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. 

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 


ddrumheller on DSK120RN23PROD with NOTICES1
8062 Federal Register / Vol. 90, No. 14 / Thursday, January 23, 2025 / Notices 

9This 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. 

10Such 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. 

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 postdefault); 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. 

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 riskreducing 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 subparagraphs of paragraphs 1.1 and new 

paragraph 1.2 and the use of the defined 

term ‘‘Person.’’ The proposed changes 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 90, No. 14 / Thursday, January 23, 2025 / Notices 8063 

11 15 U.S.C. 78s(b)(2)(C). 

12Rule 700(b)(3), Commission Rules of Practice, 

17 CFR 201.700(b)(3). 

13 Id. 

14 Id. 

15Susquehanna Int’l Group, LLP v. Securities and 

Exchange Commission, 866 F.3d 442, 447 (D.C. Cir. 

2017). 

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). 

18 15 U.S.C. 78q–1(b)(3)(A). 

19 Id. 

20 15 U.S.C. 78q–1(b)(3)(F). 

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

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

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

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. 

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

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. 

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 


ddrumheller on DSK120RN23PROD with NOTICES1
8064 Federal Register / Vol. 90, No. 14 / Thursday, January 23, 2025 / Notices 

21 Id. 

22 17 CFR 240.17Ad–22(e)(18)(i). 

23 Id. 

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). 

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). 

27 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 Nos. 

102043 (December 27, 2024), 90 FR 351 (SR–NYSE– 

2024–81); 102042 (December 27, 2024), 90 FR 360 

(SR–NYSEAMER–2024–80); 102041 (December 27, 

2024), 90 FR 347 (SR–NYSEARCA–2024–113); 

102040 (December 27, 2024), 90 FR 356 (SR– 

NYSECHX–2024–37); 102039 (December 27, 2024), 

90 FR 342 (SR–NYSENAT–2024–33). 

4 17 CFR 200.30–3(a)(12). 

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

2 17 CFR 240.19b–4. 

3The Exchange previously submitted the 

proposed rule change on December 13, 2024 (SR– 

CboeBZX–2024–124). See Securities Exchange Act 

Release No. 102044 (December 27, 2024), 90 FR 

342, (January 3, 2025) (SR–CboeBZX–2024–124). 

The Exchange is withdrawing SR–CboeBZX–2024– 

124 and submitting this filing to make clarifying, 

non-substantive changes to more clearly reflect the 

excluded trades in the Missed Liquidity Report, 

which the Exchange believes will avoid potential 

confusion. 

requirements of Sections 17A(b)(3)(F) of 

the Act.21

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

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

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

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

For the Commission by the Division of 

Trading and Markets, pursuant to delegated 

authority.27

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01546 Filed 1–22–25; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102215; File Nos. SR– 

NYSE–2024–81, SR–NYSEAMER–2024–80, 

SR–NYSEARCA–2024–113, SR–NYSECHX– 

2024–37, SR–NYSENAT–2024–33] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; NYSE 

American LLC; NYSE Arca, Inc.; NYSE 

Chicago, Inc.; NYSE National, Inc.; 

Notice of Withdrawal of Proposed Rule 

Change To Amend the Connectivity 

Fee Schedule 

January 16, 2025. 

On December 17, 2024, New York 

Stock Exchange LLC, NYSE American 

LLC, NYSE Arca, Inc., NYSE Chicago, 

Inc., and NYSE National, Inc. (the 

‘‘Exchanges’’) each filed with the 

Securities and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 1 and Rule 19b–4 thereunder,2 a 

proposed rule change to amend the 

connectivity fee schedule to add fees for 

connectivity from the Mahwah Data 

Center to one or more trading floors. 

The proposed rule changes were 

published for comment in the Federal 

Register on January 3, 2025.3

On December 31, 2024, the Exchanges 

withdrew the proposed rule changes 

(SR–NYSE–2024–81, SR–NYSEAMER– 

2024–80, SR–NYSEARCA–2024–113, 

SR–NYSECHX–2024–37, SR– 

NYSENAT–2024–33). 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.4

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01545 Filed 1–22–25; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102239; File No. SR– 

CboeBZX–2025–004] 

Self-Regulatory Organizations; Cboe 

BZX Exchange, Inc.; Notice of Filing 

and Immediate Effectiveness of a 

Proposed Rule Change To Amend Rule 

21.15(b) (Exchange Data Products) To 

Adopt Cboe Timestamping Service, 

Which Is a Market Data Service 

Comprised of Two Distinct Market Data 

Reports 

January 17, 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 January 

10, 2025, Cboe BZX Exchange, Inc. 

(‘‘Exchange’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Item I below, 

which Item has been substantially 

prepared by the Exchange. 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 

Rule 21.15(b) (Exchange Data Products) 

to adopt the Cboe Timestamping 

Service, which is a market data service 

comprised of two distinct market data 

reports.3 The Cboe Timestamping 

Service will provide timestamp 

information for orders, quotes and 

cancels for market participants. More 

specifically, the Cboe Timestamping 

Service reports will provide various 

timestamps relating to the message 

lifecycle throughout the exchange 

system. The first report—the Missed 

Liquidity Report—will cover order and 

quote messages and the second report— 

Cancels Report—will cover cancel 

messages. The proposed reports are 

optional products that will be available 

to all Members and Members may opt to 

choose both reports, one report, or 

neither report. Corresponding fees will 

be assessed based on the number of 


ddrumheller on DSK120RN23PROD with NOTICES1