Back to News
Federal RegisterFederal
Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing of Proposed Rule Change, 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 to its rules that will affect how it manages its Clearing Fund. From now on, FICC must keep this fund either in a bank account at a commercial bank that is insured by the Federal Deposit Insurance Corporation or in an account at the Federal Reserve Bank of New York. If the fund is held in a commercial bank, it must be kept separate from other accounts. Insurance agents should be aware of these changes as they may impact their operations and compliance requirements.
+View original text
more detail below.
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