Document ID: SEC-2020-1580-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: National Securities Clearing Corp.
Posted Date: 2020-10-08T04:00Z

[Federal Register Volume 85, Number 196 (Thursday, October 8, 2020)]
[Notices]
[Page 63607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22256]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90084; File No. SR-NSCC-2020-016]

Self-Regulatory Organizations; National Securities Clearing 
Corporation; Designation of Longer Period for Commission Action on a 
Proposed Rule Change, as Modified by Amendment No. 1, To Introduce the 
Margin Liquidity Adjustment Charge and Include a Bid-Ask Risk Charge in 
the VaR Charge

October 2, 2020.
    On July 30, 2020, National Securities Clearing Corporation 
(``NSCC'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ 
proposed rule change SR-NSCC-2020-016 to add two new charges to NSCC's 
margin methodology.\3\ On August 13, 2020, NSCC filed Amendment No. 1 
to the proposed rule change, to make clarifications and corrections to 
the proposed rule change.\4\ The proposed rule change, as modified by 
Amendment No. 1, was published for public comment in the Federal 
Register on August 20, 2020.\5\ The Commission has received two comment 
letters on the proposed rule change, as modified by Amendment No. 1.\6\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ NSCC also filed the proposals contained in the proposed rule 
change as advance notice SR-NSCC-2020-804 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), and Rule 19b-4(n)(1)(i) of the Act, 17 CFR 
240.19b-4(n)(1)(i).
    \4\ Amendment No. 1 made clarifications and corrections to the 
description of the proposed rule change and Exhibits 3 and 5 of the 
filing. On August 13, 2020, NSCC filed Amendment No. 1 to the 
advance notice to make similar clarifications and corrections to the 
advance notice.
    \5\ Securities Exchange Act Release No. 89558 (August 14, 2020), 
85 FR 51521 (August 20, 2020) (``Notice''). The advance notice, as 
modified by Amendment No. 1, was published for public comment in the 
Federal Register on September 4, 2020. Securities Exchange Act 
Release No. 89719 (September 1, 2020), 85 FR 55332 (September 4, 
2020) (File No. SR-NSCC-2020-804). The comment period for the 
advance notice, as modified by Amendment No. 1 closed on September 
21, 2020, and the Commission received no comments.
    \6\ Letter from Cass Sanford, Associated General Counsel, OTC 
Markets Group (September 11, 2020) (``OTC Letter''); Letter from 
James C. Snow, President/CCO, Wilson-Davis & Co., Inc. (received 
September 30, 2020) (``Wilson-Davis Letter''), all available at 
https://www.sec.gov/comments/sr-nscc-2020-016/srnscc2020016.htm.
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    Section 19(b)(2) of the Act \7\ provides that, within 45 days of 
the publication of notice of the filing of a proposed rule change, or 
within such longer period up to 90 days as the Commission may designate 
if it finds such longer period to be appropriate and publishes its 
reasons for so finding or as to which the self-regulatory organization 
consents, the Commission shall either approve the proposed rule change, 
disapprove the proposed rule change, or institute proceedings to 
determine whether the proposed rule change should be disapproved. The 
45th day after publication of the notice for the proposed rule change 
is October 4, 2020.
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    \7\ 15 U.S.C. 78s(b)(2).
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    The Commission is extending the 45-day time 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 it has sufficient time to consider and 
take action on the proposed rule change.
    Accordingly, pursuant to Section 19(b)(2) of the Act \8\ and for 
the reasons stated above, the Commission designates November 18, 2020 
as the date by which the Commission shall either approve, disapprove, 
or institute proceedings to determine whether to disapprove proposed 
rule change SR-NSCC-2020-016.
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    \8\ Id.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(31).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-22256 Filed 10-7-20; 8:45 am]
BILLING CODE 8011-01-P