Federal Register / Vol. 90, No. 19 / Thursday, January 30, 2025 / Notices 8555 

11 17 CFR 200.30–3(a)(12) and (59). 

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

2 17 CFR 240.19b–4. 

3See 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. Terms not defined herein are 

defined in the GSD Rules, available at 

www.dtcc.com/∼/media/Files/Downloads/legal/ 

rules/ficc_gov_rules.pdf. 

4See Securities Exchange Act Release No. 101883 

(Dec. 11, 2024), 89 FR 102195 (Dec. 17, 2024) (File 

No. SR–DTC–2024–011) (‘‘DTC Notice of Filing’’); 

Securities Exchange Act Release No. 101882 (Dec. 

11, 2024), 89 FR 102234 (Dec. 17, 2024) (File No. 

SR–FICC2024–011) (‘‘FICC Notice of Filing’’); 

Securities Exchange Act Release No. 101885 (Dec. 

11, 2024), 89 FR 102211 (Dec. 17, 2024) (File No. 

SR–NSCC–2024–010) (‘‘NSCC Notice of Filing’’). 

5See Securities Exchange Act Release No. 79528 

(December 12, 2016), 81 FR 91232 (December 16, 

2016) (SR–DTC–2016–007; SR–FICC–2016–005; 

SR–NSCC–2016–003) (‘‘2016 Framework Order’’). 

6The DTC Participants Fund and the respective 

Clearing Funds of NSCC and FICC are described 

further in DTC Rules, NSCC Rules, MBSD Rules, 

GSD Rules, respectively. See DTC Rules, Rule 4 

(Participants Fund and Participants Investment); 

NSCC Rules, Rule 4 (Clearing Fund); GSD Rules 

Rule 4 (Clearing Fund and Loss Allocation); MBSD 

Rules, Rule 4 (Clearing Fund and Loss Allocation). 

7See 2016 Framework Order, 81 FR at 91233. 

8See 2016 Framework Order, 81 FR at 91232–33. 

9See Securities Exchange Act Release Nos. 91291 

(March 10, 2021), 86 FR 14500, 14501 (March 16, 

2021) (SR–DTC–2021–002); Securities Exchange 

Act Release Nos. 91292 (March 10, 2021), 86 FR 

14503, 14504 (March 16, 2021) (SR–FICC–2021– 

001); and Securities Exchange Act Release Nos. 

91293 (March 10, 2021), 86 FR 14506, 14507 (March 

16, 2021) (SR–NSCC–2021–003). 

10See Securities Exchange Act Release No. 99149 

(Dec. 13, 2023), 89 FR 2714 (Jan. 16, 2024) (S7–23– 

22) (‘‘Adopting Release,’’ and the rules adopted 

therein as ‘‘Treasury Clearing Rules’’). See also 17 

CFR 240.15c3–3a. 

11 17 CFR 240.17ad–22(e)(6)(i). 

12 17 CFR 240.15c3–3. 

13 17 CFR 240.15c3–3a. 

14See supra note 10. 

15See supra note 3. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.11

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01932 Filed 1–29–25; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–102280; File Nos. SR–DTC– 

2024–011; SR–FICC–2024–011; SR–NSCC– 

2024–010] 

Self-Regulatory Organizations; The 

Depository Trust Company; Fixed 

Income Clearing Corporation; National 

Securities Clearing Corporation; Order 

Approving Proposed Rule Change To 

Amend the Clearing Agency 

Investment Policy 

January 24, 2025. 

I. Introduction 

On December 3, 2024, The Depository 

Trust Company (‘‘DTC’’), Fixed Income 

Clearing Corporation (‘‘FICC’’), and 

National Securities Clearing Corporation 

(‘‘NSCC,’’ each a subsidiary of The 

Depository Trust & Clearing Corporation 

(‘‘DTCC’’) and each a ‘‘Clearing 

Agency,’’ and collectively, the ‘‘Clearing 

Agencies’’), filed with the Securities and 

Exchange Commission (‘‘Commission’’) 

proposed rule changes SR–DTC–2024– 

011, SR–FICC–2024–011, and SR– 

NSCC–2024–010, respectively, pursuant 

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

Exchange Act of 1934 (‘‘Act’’) 1 and Rule 

19b–4 thereunder (‘‘Proposed Rule 

Changes’’).2 The Proposed Rule Changes 

would amend the Clearing Agency 

Investment Policy (‘‘Investment Policy’’, 

or ‘‘Policy’’) of the Clearing Agencies to 

conform the Policy to the changes made 

to the FICC Government Securities 

Division Rulebook (‘‘GSD Rules’’) by 

SR–FICC–2024–007.3 The Proposed 

Rule Changes were published for 

comment in the Federal Register on 

December 17, 2024.4 The Commission 

has received no comments on the 

Proposed Rule Changes. For the reasons 

discussed below, the Commission is 

approving the Proposed Rule Changes. 

II. Background 

Each Clearing Agency established the 

Clearing Agency Investment Policy,5

which governs the management, 

custody, and investment of cash 

deposited to the DTC Participants Fund 

and the respective NSCC and FICC 

Clearing Funds,6 the proprietary liquid 

net assets (cash and cash equivalents) of 

the Clearing Agencies, and other funds 

held by the Clearing Agencies pursuant 

to their respective rules. The Investment 

Policy states that it establishes a 

conservative investment philosophy 

that places the highest priority on 

maximizing the liquidity and avoiding 

risk to the funds in the custody of the 

Clearing Agencies.7

The Investment Policy includes, 

generally, a glossary of key terms, the 

roles and responsibilities of DTCC staff 

in administering the Investment Policy, 

guiding principles for investments, 

sources of investable funds, allowable 

investments of those funds, limitations 

on such investments, authority required 

for those investments, and authority 

required to exceed established 

investment limits.8 In particular, the 

Investment Policy provides that 

allowable investments include bank 

deposits, reverse repurchase 

agreements, direct obligations of the 

U.S. government, money market mutual 

funds, high grade corporate debt, hedge 

transactions, and further specifies 

which particular allowable investment 

is permitted for different portions of the 

Clearing Agencies’ resources.9

On December 13, 2023, the 

Commission adopted amendments to 

the standards applicable to covered 

clearing agencies that clear transactions 

in U.S. Treasury securities (‘‘Treasury 

CCAs’’), such as FICC.10 These 

amendments require Treasury CCAs to 

establish, implement, maintain, and 

enforce written policies and procedures 

reasonably designed to, among other 

things, calculate, collect, and hold 

margin for direct participants’ 

proprietary positions separately and 

independently from margin calculated, 

collected, and held for indirect 

participants that rely on the services 

provided by the direct participant to 

access the Treasury CCA’s payment, 

clearing, or settlement facilities.11 The 

Commission also amended its brokerdealer customer protection rule (‘‘Rule 

15c3–3’’) 12 and the customer and 

proprietary accounts of broker-dealer 

(‘‘PAB’’ reserve formulas thereunder 

(‘‘Rule 15c3–3a’’) 13 to permit margin 

required and on deposit with Treasury 

CCAs to be included under certain 

conditions as a debit in the reserve 

formulas.14

On November 21, 2024, the 

Commission issued an order approving 

a proposed rule change filed by FICC to 

modify the GSD Rules to calculate, 

collect, and hold margin for transactions 

that a direct GSD participant enters into 

for its own benefit (‘‘proprietary 

transactions’’) separately from margin a 

direct participant submits to FICC on 

behalf of indirect participants and to 

address conditions of Note H to Rule 

15c3–3a under the Exchange Act.15

Such changes are expected to be 

implemented by FICC in the GSD Rules 

by no later than March 31, 2025. 

The proposed changes to the 

Investment Policy would conform the 

Policy to the changes made to the GSD 

Rules pursuant to the Account 

Segregation Filing. 

III. Description of the Proposed Rule 

Change 

The Clearing Agencies propose to 

modify the Investment Policy to (i) 

conform the Policy to the changes made 

to GSD Rules to calculate, collect, and 

hold margin for proprietary transactions 

of GSD Netting Members separately 

from transactions submitted on behalf of 

individual participants; (ii) implement 

changes to comply with SEC rules 

(specifically Rule 15c3–3 and 15c3–3a) 


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8556 Federal Register / Vol. 90, No. 19 / Thursday, January 30, 2025 / Notices 

16See DTC Notice of Filing, supra note 4, at 

102212; FICC Notice of Filing, supra note 4, at 

102235; and NSCC Notice of Filing, supra note 4, 

at 102197. 

17See DTC Notice of Filing, supra note 4, at 

102213; FICC Notice of Filing, supra note 4, at 

102236; NSCC Notice of Filing, supra note 4, at 

102197. 

18 GSD Rules also state that any interest earned 

on Segregated Customer Margin consisting of cash 

must be paid to the Netting Member on behalf of, 

and as agent for, its Segregated Indirect Participant. 

See Securities Exchange Act Release No. 101454 

(Oct. 28, 2024), 89 FR 87441, 87443 (Nov. 1, 2024) 

(File No. SR–FICC–2024–007). 

19 In addition to FICC requirements to hold 

Segregated Customer Margin in accounts at a bank 

within the meaning of the Act that is insured by the 

FDIC, GSD Rules require those accounts to be held 

at a bank that is a qualified custodian under the 

Investment Company Act of 1940 Act. See id. 

20See DTC Notice of Filing, supra note 4, at 

102213; FICC Notice of Filing, supra note 4, at 

102236; NSCC Notice of Filing, supra note 4, at 

102197. 

21See id. For example, the Notices of Filing state 

that the Management Committee has recently 

changed its name to the Executive Committee. 

22 15 U.S.C. 78s(b)(2)(C). 

23 15 U.S.C. 78q–1(b)(3)(F). 

regarding legal segregation of designated 

funds and restricting how they are held 

and invested; and (iii) update terms and 

make conforming changes. 

A. Separating and Holding Indirect 

Participant Margin 

The Clearing Agencies propose to 

modify the Investment Policy to 

conform the Policy to the changes made 

to GSD Rules to calculate, collect, and 

hold margin for proprietary transactions 

of GSD Netting Members separately 

from transactions submitted on behalf of 

individual participants. First, the 

Clearing Agencies propose to add a 

definition in Section 2 (Glossary of 

Terms) of the Investment Policy for the 

term Indirect Participants Clearing Fund 

Deposits which shall mean ‘‘the total 

amount deposited in the GSD Clearing 

Fund to support activity in Agency 

Clearing Member Omnibus Accounts 

and Sponsoring Member Omnibus 

Accounts, other than Segregated 

Indirect Participants Accounts, as such 

terms are defined in the FICC 

Government Securities Division (‘GSD’) 

Rulebook (‘GSD Rules’).’’ 16

Second, the Clearing Agencies 

propose to amend Section 3.2 (Guiding 

Principles) to specify that Indirect 

Participants Clearing Fund Deposits will 

be held by separately and 

independently on FICC’s books and 

records from all other deposits to the 

GSD Clearing Fund. 

Third, the Clearing Agencies propose 

to amend Section 5 (Investable Funds) 

to specify that Indirect Participants 

Clearing Fund Deposits are included in 

the GSD Clearing Fund. 

B. Legally Segregating and Limiting 

Investments of Segregated Customer 

Margin 

The Clearing Agencies propose to 

modify the Investment Policy to 

implement changes to comply with SEC 

rules (specifically Rule 15c3–3 and 

15c3–3a) regarding legal segregation of 

designated funds and restricting how 

they are held and invested. First, the 

Clearing Agencies propose to amend 

Section 2 (Glossary of Terms) to include 

a definition of the term Segregated 

Customer Margin which shall have the 

meaning given such term in the GSD 

Rules. 

Second, the Clearing Agencies 

propose to amend Section 3.2 

(Separation/Segregation of Funds) to 

include a statement that that Segregated 

Customer Margin will be segregated and 

held separately and independently from 

any other funds as described in the GSD 

Rules, specifically, Section 1a of GSD 

Rule 4. The Clearing Agencies state that 

the proposed changes to this section 

address how FICC would comply with 

the conditions set forth in Rule 15c3–3 

and Rule 15c3–3a regarding segregating 

and holding Segregated Customer 

Margin.17

Third, the Clearing Agencies propose 

to amend Section 5 (Investable Funds) 

to include Segregated Customer Margin 

as a source of investable funds as 

described in the GSD Rules, specifically, 

Section1a of GSD Rule 4. The Clearing 

Agencies also propose to add a 

description of the recipient of 

investment income for Segregated 

Customer Margin which shall be GSD 

Netting Members for the benefit of the 

respective Indirect Participants.18

Additionally, the Clearing Agencies 

would clarify in the description of 

Participants Fund and Clearing Funds 

that Segregated Customer Margin is not 

treated as general FICC Clearing Fund. 

Fourth, the Clearing Agencies propose 

to amend Section 6.1 (Allowable 

Investments) by including Segregated 

Customer Margin as a separate category 

of Allowable Investments and 

specifying these funds may only be 

invested in bank deposits, including the 

Federal Reserve Bank of New York. 

Fifth, the Clearing Agencies propose 

to amend Section 6.2 (Investment 

Limits) to clarify that Segregated 

Customer Margin shall only be held in 

an account of FICC at a bank within the 

meaning of the Act that is insured by 

the Federal Deposit Insurance 

Corporation (‘‘FDIC’’), or at the Federal 

Reserve Bank of New York, as described 

in GSD Rule 4.19 Additionally, the 

Clearing Agencies propose to include 

language that higher investments limits 

may apply to investments of Segregated 

Customer Margin. 

C. Update Terms and Conforming 

Changes 

The Clearing Agencies propose to 

update terms in the Investment Policy 

and make conforming changes. The 

Clearing Agencies would replace 

references to the ‘‘Management 

Committee’’ with the term ‘‘senior most 

management committee,’’ which the 

Clearing Agencies state would more 

accurately describe the internal 

governing body without referring to its 

formal name.20 The Clearing Agencies 

state the change to replace the formal 

name of the internal governing 

committee will ensure this body is 

accurately described in the Investment 

Policy in the event of any future 

changes to its formal name.21 The 

Clearing Agencies would also include a 

new defined term for ‘‘senior most 

management committee’’ in Section 2 to 

make clear it references the highestlevel committee of DTCC. 

Additionally, the Clearing Agencies 

would make several conforming changes 

to Section 4.3 (regarding authorization 

to establish new investment 

relationships), Section 6.2.3 (regarding 

authorization of investment transactions 

in U.S. Treasury securities), Section 

6.2.5 (regarding authorization of 

investment transactions in high-grade 

corporate debt) and Section 7.2 

(regarding authorization to exceed 

investment limits). 

IV. Discussion and Commission 

Findings 

Section 19(b)(2)(C) of the Act 22

directs the Commission to approve a 

proposed rule change of a selfregulatory organization if it finds that 

such proposed rule change is consistent 

with the requirements of the Act and 

rules and regulations thereunder 

applicable to such organization. After 

carefully considering the Proposed Rule 

Changes, the Commission finds that the 

Proposed Rule Changes are consistent 

with the requirements of the Act and the 

rules and regulations thereunder 

applicable to the Clearing Agencies. In 

particular, the Commission finds that 

the Proposed Rule Changes are 

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

the Act.23

A. Consistency With Section 

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

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

requires that the rules of a clearing 

agency, such as the Clearing Agencies, 

be designed to, among other things, 

promote the prompt and accurate 


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Federal Register / Vol. 90, No. 19 / Thursday, January 30, 2025 / Notices 8557 

24 15 U.S.C. 78q–1(b)(3)(F). 

25 15 U.S.C. 78q–1(b)(3)(F). 

26 15 U.S.C. 78q–1(b)(3)(F). 

27 15 U.S.C. 78q–1(b)(3)(F). 

28 15 U.S.C. 78q–1. 

29 15 U.S.C. 78s(b)(2). 

30 In approving the Proposed Rule Changes, the 

Commission considered its impact on efficiency, 

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

31 17 CFR 200.30–3(a)(12). 

clearance and settlement of securities 

transactions and assure the safeguarding 

of securities and funds which are in the 

custody or control of the clearing agency 

or for which it is responsible.24

As described above, the Clearing 

Agencies propose to amend the 

Investment Policy to support changes 

made to GSD Rules pursuant to the 

Account Segregation Filing. The 

proposed changes to the Investment 

Policy in Section 3.2 to state that 

Segregated Customer Margin shall be 

segregated and held separately and 

independently from any other funds in 

compliance with applicable conditions 

set out in Rule 15c3–3 and Rule 15c3– 

3a should enhance the Clearing 

Agencies’ ability to meet their 

settlement obligations in the event of a 

Netting Member or indirect participant 

default. By doing so, the Proposed Rule 

Changes should better ensure that, in 

the event of a default, the Clearing 

Agencies’ operation of its critical 

clearance and settlement services would 

not be disrupted because of insufficient 

financial resources and, therefore, that 

the Clearing Agencies would be able to 

continue providing prompt and accurate 

clearance and settlement of securities 

transactions, consistent with Section 

17A(b)(3)(F).25

In addition, the investment guidelines 

and governance procedures set forth in 

the Investment Policy are designed to 

safeguard the securities and funds that 

are in the custody or control of the 

Clearing Agencies on behalf of thier 

members. Specifically, the Proposed 

Rule Changes amend Section 6.1 of the 

Investment Policy to specify Segregated 

Customer Margin as an Allowable 

Investment and those funds shall only 

be held in an account of FICC at a bank 

that is insured by the FDIC, or at the 

Federal Reserve Bank of New York 

consistent with GSD Rules. In addition, 

the Proposed Rule Changes would align 

the terminology used in the Investment 

Policy with the terminology used in the 

GSD Rules to clarify the investable 

funds that are subject to the Investment 

Policy. By eliminating inconsistent use 

of terminology, the proposed changes 

should help to improve the effectiveness 

of the Investment Policy. Therefore, the 

Proposed Rule Changes would 

implement changes to the Investment 

Policy that are consistent with changes 

made to the GSD Rules pursuant the 

Account Segregation Filing, and also 

should safeguard the securities and 

funds in custody or control of the 

Clearing Agencies on behalf of its 

members, consistent with Section 

17A(b)(3)(F).26

For these reasons, the Proposed Rule 

Changes are designed to promote the 

prompt and accurate clearance and 

settlement of securities transactions and 

assure the safeguarding of securities and 

funds which are in the custody or 

control of the clearing agency or for 

which it is responsible, consistent with 

Section 17A(b)(3)(F) of the Act.27

IV. Conclusion 

On the basis of the foregoing, the 

Commission finds that the Proposed 

Rule Changes are consistent with the 

requirements of the Act and in 

particular with the requirements of 

Section 17A of the Act 28 and the rules 

and regulations promulgated 

thereunder. 

It is therefore ordered, pursuant to 

Section 19(b)(2) of the Act 29 that 

proposed rule changes SR–DTC–2024– 

011, SR–FICC–2024–011, and SR– 

NSCC–2024–010, be, and hereby are, 

approved.30

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.31

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2025–01931 Filed 1–29–25; 8:45 am] 

BILLING CODE 8011–01–P 

SELECTIVE SERVICE SYSTEM 

Recission of Performance Review 

Board 

AGENCY: Selective Service System. 

ACTION: Notice. 

SUMMARY: Selective Service System 

Rescinds its Performance Review Board 

[FR Doc. 2024–24311 Filed 10–18–24; 

8:45 a.m.] per the President’s 

Memorandum on Restoring 

Accountability for Career Senior 

Executives, dated January 20, 2025. 

FOR FURTHER INFORMATION CONTACT: Lee 

Levells, Human Resources Officer, 

Selective Service System, 1501 Wilson 

Blvd., Arlington, VA 22209, telephone: 

703–605–4011. 

SUPPLEMENTARY INFORMATION: Sec. 

4314(c) (1) through (5) of title 5, U.S.C., 

requires each agency to establish, in 

accordance with regulations prescribed 

by the Office of Personnel Management, 

one or more performance review boards. 

The board shall review and evaluate the 

initial appraisal of a senior executive’s 

performance by the supervisor, along 

with any recommendations to the 

appointing authority relative to the 

performance of the senior executive. 

President’s Memorandum on Restoring 

Accountability for Career Senior 

Executives, dated January 20, 2025, 

directs Agency heads to rescind their 

Performance Review Board and reconstitute membership with individuals 

committed to full enforcement of SES 

performance evaluations that promote 

and assure an SES of the highest caliber. 

The SSS PRB will be established at a 

later date once the Agency’s appointees 

are in place. 

Daniel A. Lauretano, Sr., 

General Counsel. 

[FR Doc. 2025–01947 Filed 1–29–25; 8:45 am] 

BILLING CODE 8015–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

[Docket No.: FAA–2024–2560; Summary 

Notice No. –2025–06] 

Petition for Exemption; Summary of 

Petition Received; The Board of 

Regents of the Nevada System of 

Higher Education on Behalf of Desert 

Research Institute. 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice. 

SUMMARY: This notice contains a 

summary of a petition seeking relief 

from specified requirements of Federal 

Aviation Regulations. The purpose of 

this notice is to improve the public’s 

awareness of, and participation in, the 

FAA’s exemption process. Neither 

publication of this notice nor the 

inclusion nor omission of information 

in the summary is intended to affect the 

legal status of the petition or its final 

disposition. 

DATES: Comments on this petition must 

identify the petition docket number and 

must be received on or before February 

19, 2025. 

ADDRESSES: Send comments identified 

by docket number FAA–2024–2560 

using any of the following methods: 

• Federal eRulemaking Portal: Go to 

https://www.regulations.gov and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30; U.S. Department of 


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