On Apr. 25, 2025, SEC published proposals in federal register, comment May 16, 2025.
On Apr. 15, FICC proposed rules on intraday margin, covered clearing.
FICC and NSCC proposed rule amendments to clarify calculation of margin, to address SEC adopted amendments to standards for covered clearing agencies (CCA), #194594.
Amendments to FICC’s Government Securities Division (GSD) Rulebook and Mortgage-Backed Securities Division (MBSD) Clearing Rules, as well as to NSCC Procedure XV.
Also, FICC issued notices, NSCC notice on proposed rule revisions to intraday margin.
FICC Proposed Amendments
Clarify that calculation of margin, i.e., required fund deposit portion and segregated customer margin requirements to be performed more frequently than twice daily.
If FICC deems appropriate per margin component schedule, subject to GSD Rule 4.
Provided examples of elevated volatility market conditions to include, not limited to, sudden swings in US Treasury yields or mortgage-backed security (MBS) spreads.
Outside of historically observed market moves, conditions to intraday risk exposures, in aggregate, materially exceed intraday risk exposure under normal market condition.
Proposed add language to make clearer FICC procedures for ongoing monitoring and collection of member’s intraday supplemental fund deposit or intraday VaR charge.
Also make amendments on MBSD intraday mark-to-market charge; made it clearer that intraday mark-to-market charge re-calculated intraday, each business day.
NSCC Amendments
Provide additional clarity and transparency on process for ongoing monitoring and recalculation of intraday mark-to-market and volatility exposures, collection of charge.
Additional clarity and transparency how facilitate compliance with CCAS margin rules.
Each CCA have policies and procedures reasonably to monitor intraday exposures on ongoing basis, make intraday margin calls, as frequently as circumstances warrant.
Effectiveness
Expects implement proposed change by Dec. 15, 2025, announce by Important Notice.
Consultation
Comments on proposed rule change due 21 days from publication in federal register.
Apr. 21, 2025 SEC Proposals
On Apr. 21, 2025, SEC issued notice of FICC, NSCC proposal, 21-day comment period.
Apr. 25, 2025 Fed Reg Proposals
On Apr. 25, 2025, SEC published proposals in federal register, comment May 16, 2025.