Document ID: SEC-2020-2124-0001
Agency: sec
Document Type: Notice
Title: Self-Regulatory Organizations; Proposed Rule Changes: Fixed Income Clearing Corp.
Posted Date: 2020-12-30T05:00Z

[Federal Register Volume 85, Number 250 (Wednesday, December 30, 2020)]
[Notices]
[Pages 86591-86592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28892]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-90794; File No. SR-FICC-2020-017]

Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Designation of Longer Period for Commission Action and Longer 
Period for Comment on Proposed Rule Change To Modify the Calculation of 
the MBSD VaR Floor To Incorporate a Minimum Margin Amount

December 23, 2020.
    On November 20, 2020, Fixed Income Clearing Corporation (``FICC'') 
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-
FICC-2020-017 to introduce a new ``Minimum Margin Amount'' to 
complement the existing VaR Floor calculation.\3\ The proposed rule 
change was published for comment in the Federal Register on December 
10, 2020.\4\ As of December 23, 2020, the Commission has received five 
comment letters to the proposed rule change.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ On November 27, 2020, FICC also filed the proposal contained 
in the proposed rule change as advance notice SR-FICC-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\ Securities Exchange Act Release No. 90568 (December 4, 
2020), 85 FR 79541 (December 10, 2020) (SR-FICC-2020-017) 
(``Notice'').
    \5\ See Letter from Kelli McMorrow, Head of Government Affairs, 
American Securities Association, dated December 18, 2020, to Vanessa 
Countryman, Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017.htm (``ASA Letter''); Letter 
from Pete Mills, Senior Vice President, Mortgage Bankers 
Association, dated December 17, 2020, to Jay Clayton, Chairman, 
Commission, available at https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017-8155338-226778.pdf (``MBA Letter''); Letter from 
Christopher Killian, Managing Director, Securities Industry and 
Financial Markets Association, dated December 16, 2020, to Vanessa 
Countryman, Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017-8154310-226759.pdf (``SIFMA 
Letter''); Letter from Curtis Richins, President & CEO, Mortgage 
Capital Trading, Inc., dated December 15, 2020, to Vanessa 
Countryman, Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017-8156568-226839.pdf (``MCT 
Letter''); and Letter from James Tabacchi, Chairman, Independent 
Dealer and Trader Association, dated December 10, 2020, to Vanessa 
Countryman, Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017-8127766-226454.pdf (``IDTA 
Letter''). See comments on the proposed rule change (SR-FICC-2020-
017), available at https://www.sec.gov/comments/sr-ficc-2020-017/srficc2020017.htm. Because the proposal contained in the proposed 
rule change was also filed as an advance notice, supra note 3, the 
Commission is considering all public comments received on the 
proposal regardless of whether the comments were submitted to the 
advance notice or the proposed rule change.

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[[Page 86592]]

    Section 19(b)(2) of the Act \6\ 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 January 24, 2020.
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    \6\ 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 \7\ and for 
the reasons stated above, the Commission designates March 10, 2020 as 
the date by which the Commission shall either approve, disapprove, or 
institute proceedings to determine whether to disapprove the proposed 
rule change (File No. SR-FICC-2020-017).
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    \7\ Id.
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    The Commission also seeks to extend the comment period to help 
further inform its analysis of the proposed rule change. The comment 
period for the proposed rule change ends on December 31, 2020.\8\ As of 
December 23, 2020, the Commission has received five comment letters to 
the proposed rule change.\9\ The Commission is extending the comment 
period for the proposed rule change to allow interested persons 
additional time to analyze the issues and prepare their comments. 
Accordingly, the Commission designates January 29, 2021 as the date 
comments should be submitted on or before.
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    \8\ Notice, 85 FR at 79548.
    \9\ See supra note 5.
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    Specifically, the Commission invites interested persons to provide 
views, data, and arguments concerning the proposed rule change, 
including whether the proposed rule change is consistent with the Act 
and the applicable rules or regulations thereunder. Please note that 
comments previously received on the substance of the proposed rule 
change will be considered together with comments submitted in response 
to this notice. Therefore, while commenters are free to submit 
additional comments at this time, they need not re-submit earlier 
comments.
    Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File Number SR-FICC-2020-017 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-FICC-2020-017. This file 
number should be included on the subject line if email is used. 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 (http://www.sec.gov/rules/sro.shtml). 
Copies 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 10:00 a.m. and 
3:00 p.m. Copies of the filing also will be available for inspection 
and copying at the principal office of FICC and on DTCC's website 
(http://dtcc.com/legal/sec-rule-filings.aspx). All comments received 
will be posted without change. Persons submitting comments are 
cautioned that we do not redact or edit personal identifying 
information from comment submissions. You should submit only 
information that you wish to make available publicly. All submissions 
should refer to File Number SR-FICC-2020-017 and should be submitted on 
or before January 21, 2021.
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    \10\ 17 CFR 200.30-3(a)(31).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2020-28892 Filed 12-29-20; 8:45 am]
BILLING CODE 8011-01-P