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Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Extension of the Review Period of an Advance Notice, as Modified by Partial Amendment No. 1, To Establish a Guaranty Fund at the Government Securities Division
Plain English Summary
The Fixed Income Clearing Corporation (FICC) is making changes that affect how it manages its Clearing Fund. They will now need to keep this fund either in a bank account at a commercial bank that is federally insured or in an account at the Federal Reserve Bank of New York. If they choose the bank option, the account must be separate from other funds. Agents should stay informed about these changes as they may impact how transactions are processed in the future.
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In addition, the proposed changes to Section 1 of GSD Rule 4 would require FICC to hold Clearing Fund either (i) in an account at a commercial bank, which must be a “bank” within the meaning of the Exchange Act that is insured by the Federal Deposit <span class="match">Insurance</span> Corporation and is a qualified custodian under the Investment Company Act of 1940, as amended or (ii) in an account at the Federal Reserve Bank of New York (“FRBNY”). In the case of the former, the proposed rules would require that the account be segregated from any other