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SEC allows NSCC, DTC and FICC risk management framework amendments to take effect

SEC allows NSCC, DTC and FICC risk management framework amendments to take effect

Rule Changes

Amendments align the framework with SEC rules on core service providers and recovery planning

Today: SEC publishes immediate effectiveness notices

Overview

Updated 1 hour ago

The Securities and Exchange Commission (SEC) published notices on October 2 allowing three clearing agencies to immediately implement amendments to their risk management framework. The National Securities Clearing Corporation (NSCC), The Depository Trust Company (DTC), and the Fixed Income Clearing Corporation (FICC) filed the changes on September 18.

The amendments are housekeeping, not overhauls. They restructure the framework's format, add disclosures about core service provider risk and recovery planning, and fold in a governance framework the agencies adopted in 2024. The changes don't alter how the agencies comply with the SEC's core risk management rule, 17ad-22(e).

Why it matters

These three agencies clear nearly every US stock, bond, and Treasury trade — their risk framework governs what happens if a major member fails.

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Key Indicators

3
Clearing agencies affected
NSCC, DTC, and FICC filed nearly identical amendments to their shared Risk Management Framework.
60
SEC suspension window
The SEC can suspend the rule change within 60 days of the September 18 filing if it appears contrary to the public interest.
4
Categories of changes
The amendments revise format, update rule references, add governance framework descriptions, and make administrative updates.

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Organizations Involved

Timeline

January 2023 October 2026

4 events Latest: Today
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  1. SEC publishes immediate effectiveness notices

    Today Regulatory

    The SEC published notices of filing and immediate effectiveness for all three proposed rule changes.

  2. Clearing agencies file framework amendments

    Filing

    NSCC, DTC, and FICC filed proposed rule changes to amend the Risk Management Framework with the SEC.

  3. Governance framework adopted

    Adoption

    The clearing agencies adopted the Clearing Agency Framework for Certain Requirements on Governance and Conflicts of Interests.

  4. Earlier framework amendments filed

    Filing

    NSCC, DTC, and FICC filed similar amendments to the Risk Management Framework, which also became immediately effective.

Scenarios

1

SEC lets amendments stand

Likely Resolves by Nov 17, 2026

Discussed by: Federal Register notice; the rule change is effective immediately under Section 19(b)(3)(A) of the Exchange Act

The 60-day suspension window expires without SEC action. The amendments remain in effect. This is the most likely outcome given the administrative nature of the changes, which the SEC itself notes do not alter how the agencies comply with Rule 17ad-22(e).

2

SEC suspends the rule change

Unlikely Resolves by Nov 17, 2026

Discussed by: Section 19(b)(3)(A) of the Exchange Act permits the SEC to suspend rule changes

The SEC finds the amendments are contrary to the public interest and suspends them. This would be unusual for administrative amendments that the SEC itself describes as clarifying and conforming.

3

SEC requests modifications after comment period

Possible Resolves by Dec 15, 2026

Discussed by: The notice solicits comments from interested persons

Commenters raise concerns about the amendments, and the SEC requests modifications or additional information from the clearing agencies. The SEC could also extend its review period.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2023

2023 Risk Management Framework Amendments

NSCC, DTC, and FICC filed similar amendments to the Risk Management Framework in 2023, which also became immediately effective. The SEC published notices of filing and immediate effectiveness for these changes.

Then

The 2023 amendments took effect immediately and updated the framework's language and structure.

Now

The 2023 amendments established the pattern of routine framework updates that the 2026 amendments continue.

Why this matters now

Shows that these framework amendments are a recurring, administrative process rather than a substantive change in risk management.

2016

Rule 17ad-22 Adoption (2016)

The SEC adopted Rule 17ad-22 under the Securities Exchange Act, establishing risk management standards for clearing agencies. The rule requires clearing agencies to maintain comprehensive risk management frameworks.

Then

Clearing agencies were required to adopt and maintain risk management frameworks covering credit, liquidity, operational, and other risks.

Now

Rule 17ad-22 became the foundation for the Risk Management Framework that NSCC, DTC, and FICC maintain and update.

Why this matters now

The 2026 amendments reference Rule 17ad-22(e) and confirm that the changes do not alter compliance with this core risk management rule.

September 2008

Lehman Brothers Failure (2008)

Lehman Brothers filed for bankruptcy on September 15, 2008, triggering a cascade of failures across the financial system. The failure exposed weaknesses in clearing and settlement infrastructure.

Then

The failure froze credit markets and required government intervention to stabilize the financial system.

Now

The crisis prompted the Dodd-Frank Act and the push for stronger clearing agency risk management, including Rule 17ad-22.

Why this matters now

The risk management framework that NSCC, DTC, and FICC maintain exists to prevent a similar cascade if a major member fails.

Sources

(8)