Document ID: SEC-2020-1537-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2020-09-28T04:00Z

[Federal Register Volume 85, Number 188 (Monday, September 28, 2020)]
[Notices]
[Pages 60854-60855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21270]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-89949; File No. SR-NSCC-2020-003]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Notice of Designation of Longer Period for Commission 
Action on Proceedings To Determine Whether To Approve or Disapprove a 
Proposed Rule Change To Enhance National Securities Clearing 
Corporation's Haircut-Based Volatility Charge Applicable to Illiquid 
Securities and UITs and Make Certain Other Changes to Procedure XV

September 22, 2020.
    On March 16, 2020, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission'') proposed rule change SR-NSCC-2020-003 (``Proposed Rule 
Change'') pursuant to Section 19(b)(1) of the Securities Exchange Act 
of 1934 (``Act'') \1\ and Rule 19b-4 thereunder.\2\ The Proposed Rule 
Change was published for comment in the Federal Register on March 31, 
2020.\3\ The Commission received

[[Page 60855]]

comment letters on the Proposed Rule Change.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Securities Exchange Act Release No. 88474 (March 25, 2020), 
85 FR 17910 (March 31, 2020) (SR-NSCC-2020-003) (``Notice''). NSCC 
also filed the proposal contained in the Proposed Rule Change as 
advance notice SR-FICC-2020-802 (``Advance Notice'') with the 
Commission pursuant to Section 806(e)(1) of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act entitled the Payment, 
Clearing, and Settlement Supervision Act of 2010 (``Clearing 
Supervision Act''). 12 U.S.C. 5465(e)(1); 17 CFR 240.19b-4(n)(1)(i). 
Notice of filing of the Advance Notice was published for comment in 
the Federal Register on April 15, 2020. Securities Exchange Act 
Release No. 88615 (April 9, 2020), 85 FR 21037 (April 15, 2020) (SR-
NSCC-2020-802). The proposal contained in the Proposed Rule Change 
and the Advance Notice shall not take effect until all regulatory 
actions required with respect to the proposal are completed.
    \4\ Letter from Christopher R. Doubek, CEO, Alpine Securities 
Corporation (April 21, 2020); Letter from John Busacca, Founder, 
Securities Industry Professional Association (April 23, 2020); 
Letter from Charles F. Lek, Lek Securities Corporation (April 30, 
2020); Letter from James C. Snow, President/CCO, Wilson-Davis & Co., 
Inc. (May 1, 2020), all available at https://www.sec.gov/comments/sr-nscc-2020-003/srnscc2020003.htm.
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    On May 21, 2020, pursuant to Section 19(b)(2) of the Act,\5\ the 
Commission designated a longer period within which to approve, 
disapprove, or institute proceedings to determine whether to approve or 
disapprove the Proposed Rule Change.\6\ On June 24, 2020, the 
Commission instituted proceedings pursuant to Section 19(b)(2)(B) of 
the Act,\7\ to determine whether to approve or disapprove the Proposed 
Rule Change.\8\ The Commission received additional comment letters on 
the Proposed Rule Change.\9\
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    \5\ 15 U.S.C. 78s(b)(2).
    \6\ Securities Exchange Act Release No. 88885 (May 15, 2020), 85 
FR 31007 (May 21, 2020) (SR-NSCC-2020-003).
    \7\ 15 U.S.C. 78s(b)(2)(B).
    \8\ Securities Exchange Act Release No. 89145 (June 24, 2020), 
85 FR 39244 (June 30, 2020) (SR-NSCC-2020-003).
    \9\ Letter from Daniel Zinn, General Counsel, and Cass Sanford, 
Associate General Counsel, OTC Markets Group Inc. (June 26, 2020); 
Letter from Kim Unger, CEO/Executive Director, The Security Traders 
Association of New York, Inc. (June 30, 2020); Letter from Daniel 
Zinn, General Counsel, and Cass Sanford, Associate General Counsel, 
OTC Markets Group Inc. (July 21, 2020); Letter from James C. Snow, 
CCO, Wilson-Davis & Co., Inc. (July 29, 2020); Letter from Timothy 
J. Cuddihy, Managing Director, DTCC Financial Risk Management 
(September 3, 2020) all available at https://www.sec.gov/comments/sr-nscc-2020-003/srnscc2020003.htm.
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    Section 19(b)(2) of the Act \10\ provides that proceedings to 
determine whether to approve or disapprove a proposed rule change must 
be concluded within 180 days of the date of publication of notice of 
filing of the proposed rule change. The time for conclusion of the 
proceedings may be extended for up to 60 days if the Commission 
determines that a longer period is appropriate and publishes the 
reasons for such determination.\11\ The 180th day after publication of 
the Notice in the Federal Register is September 27, 2020.
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    \10\ 15 U.S.C. 78s(b)(2).
    \11\ 15 U.S.C. 78s(b)(2)(B)(ii)(II).
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    The Commission is extending the period for Commission action on the 
Proposed Rule Change. The Commission finds that it is appropriate to 
designate a longer period within which to take action on the Proposed 
Rule Change so that the Commission has sufficient time to consider the 
issues raised by the Proposed Rule Change and to take action on the 
Proposed Rule Change. Accordingly, pursuant to Section 
19(b)(2)(B)(ii)(II) of the Act,\12\ the Commission designates November 
26, 2020, as the date by which the Commission should either approve or 
disapprove the Proposed Rule Change SR-NSCC-2020-003.
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    \12\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\13\
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    \13\ 17 CFR 200.30-3(a)(57).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-21270 Filed 9-25-20; 8:45 am]
BILLING CODE 8011-01-P