Rule detail : 204894

FICC Margin for Transactions

Updated on: Mar 3, 2025

Latest Event

Feb. 2025 DTC Implementation Notice
On Feb. 26, 2025, DTC issued Notice GOV1909-25, on Mar. 24, 2025, implementation of treasury clearing rule changes related to separation and segregation of accounts.
Any GSD netting member not ready to comply should contact relationship manager to discuss actions FICC authorized take consistent with SEC exemptive relief, #194594.

On Mar. 14, FICC proposed amendments and issued notice re margin.

FICC filed a proposed rule change with the SEC, as well as an advance notice filing.
Proposed to amend Government securities division (GSD) rulebook to ensure FICC has appropriate rules re separate, independent calculation, collection, holding of margin.
Margin for proprietary transactions and that for indirect participant transactions.
Follows SEC adoption of amended standards for Treasuries clearing agencies, #194594
Proposed Amendments
Provides for FICC to calculate, collect, and hold margin for the proprietary transactions of a netting member separately and independently from the margin for transactions.
Margin that the netting member submits to FICC on behalf of indirect participants.
Also, simplifies and revises the account types through which members may record transactions at FICC and adopt a new Rule 2B to provide clearer public disclosures.
Allows netting members to elect for margin for indirect participant transactions to be calculated on a gross basis (i.e., an indirect participant-by-indirect participant basis).
Also, be legally segregated from the margin for member’s proprietary transactions.
In addition, aligns FICC’s margin calculation methodology with the expanded account types and enhance public disclosure through rules of that calculation methodology.
Lastly, simplifies requirements for brokered transactions so that they only apply to transactions executed by an inter-dealer broker netting member on platform offered.
Redline version of proposed amendments included as Exhibit 5 of filing on pg. 106.
Consultation
Comments should be submitted within 21 days of publication in the federal register.
Mar. 22, 2024 SEC Proposal, Extension of Review
On Mar. 22, 2024, SEC issued notice of filing of proposed rule change for a 21-day comment period and extension of review period of advance notice to Jul. 12, 2024.
Mar. 28, 2024 Fed Reg Proposal, Extension
On Mar. 28, 2024, SEC publish proposal, extension in fed register, comments Apr. 18.
In Apr. 2024, SIFMA sought extension of FICC proposal to modify GSD rules, #209042
In Apr. 2024, FIA responded to FICC access and segregation proposals, see #209268.
Apr. 24, 2024 SEC Designated Longer Period
On Apr. 24, 2024, SEC designated a longer period to take action, by Jun. 26, 2024.
Apr. 30, 2024 SEC Fed Reg Longer Period
On Apr. 30, 2024, SEC published designation in the federal register, by Jun. 26, 2024.
In May 2024, SIFMA issued comments on the FICC margin proposal, see #213628.
Jun. 21, 2024 SEC Proceedings
On Jun. 21, 2024, SEC instituted proceedings to approve or disapprove, comments due 21 days after date of publication in federal register, rebuttal comments due in 35 days.
Jun. 27, 2024 SEC Fed Reg Proceedings
On Jun. 27, 2024, SEC published order instituting proceedings in the federal register.
Comments should be submitted by Jul. 18, 2024, rebuttal comments by Aug. 1, 2024.
Sep. 18, 2024 SEC Longer Period
On Sep. 18, 2024, SEC designated longer period to take action, until Nov. 23, 2024.
Sep. 24, 2024 Fed Reg Longer Period
On Sep. 24, 2024, SEC published designation of longer period in the federal register.
Oct. 28, 2024 SEC Partial Amendment to Proposal
On Oct. 28, 2024, SEC published partial amendment to the proposed GSD rulebook.
Comments on the partial amendment due 21 days from publication in federal register.
Oct. 28, 2024 SEC Amendment to Advance Notice
On Oct. 28, 2024, SEC issued notice of partial amendment no. 1 to advance notice.
Comments on the partial amendment due 21 days from publication in federal register.
Nov. 1, 2024 Fed Reg Amendment
On Nov. 1, 2024, SEC published amendment to FICC-2024-802 in the federal register.
On the same day, SEC published amendment to FICC-2024-007 in the federal register.
Comments on the FICC proposals must be submitted on or before Nov. 18, 2024.
Nov. 14, 2024 FICC Required Forms
On Nov. 14, 2024, FICC requested each GSD netting member to complete and return an Existing account designation form with regard to GSD netting member accounts.
Form will be sent to members via DocuSign in the next days; return by Jan. 15, 2025.
Nov. 21, 2024 SEC Approval
On Nov. 21, 2024, SEC approved FICC proposal as modified by amendment no. 1.
Nov. 21, 2024 SEC Notice of No Objection
On Nov. 21, 2024, SEC issued notice of no objection to advance notice re GSD rules.
SEC does not object to advance notice (FICC-2024-802), as modified by partial amendment no. 1, and that FICC is authorized to implement the proposed change.
As of date of notice or date of order by approving FICC-2024-007, whichever is later.
In Nov. 2024, SEC published notice to B/Ds re reserve computations, see #234710.
Nov. 27, 2024 Fed Reg No Objection, Approval
On Nov. 27, 2024, SEC published notices of no objection, approval in federal register.
Jan. 2025 FICC Filing Deadline Notice
On Jan. 9, 2025, FICC issued notice reminding existing GSD netting members to review and complete Existing account designation form no later than Jan. 15, 2025.
Existing GSD netting members should have received form via DocuSign in Nov. 2024.
Feb. 2025 DTC Implementation Notice
On Feb. 26, 2025, DTC issued Notice GOV1909-25, on Mar. 24, 2025, implementation of treasury clearing rule changes related to separation and segregation of accounts.
Any GSD netting member not ready to comply should contact relationship manager to discuss actions FICC authorized take consistent with SEC exemptive relief, #194594.

Regulators

FICC

Entity Types

B/D; Depo

Reference

Nt GOV1909-25, 2/26/2025; GOV1882-25, 1/9/2025; 89 FR 93735, 89 FR 93763, 11/27/2024; SEC RF 34-101695, 34-101675, 11/21/2024; Nt GOV1820-24, 11/14/2024; 89 FR 87449, 11/1/2024; FICC SEC RF 34-101455, SEC RF 34-101454, 10/28/2024; 89 FR 77950, 9/24/2024; SEC RF 34-101082, 9/18/2024; 89 FR 53690, 6/27/2024; SEC RF 34-100401, 6/21/2024; 89 FR 34289, 4/30/2024; SEC RF 34-100022, 4/24/2024; 89 FR 21603, 89 FR 21586, 3/28/2024; SEC RF 34-99845, 34-99844, 3/22/2024; Nt GOV1665-24, RF SR-FICC-2024-007, FICC-2024-802, 3/14/2024;

Functions

Compliance; Financial; Legal; Operations; Risk; Settlement; Trading; Treasury

Countries

United States of America