Statement Summary
The SEC announced an extension for reviewing proposed rule changes submitted by The Depository Trust Company, Fixed Income Clearing Corporation, and National Securities Clearing Corporation regarding their Disruption Rules. Originally published for public comment on March 27, 2025, the Commission now has until June 25, 2025, to either approve, disapprove, or initiate proceedings to further evaluate the proposals. These changes relate to modifying existing rules that address significant system disruptions affecting the Clearing Agencies operations. This decision allows for a more thorough evaluation of the proposed modifications.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102981; File Nos. SR-DTC-2025-003; SR-FICC-2025-006; SR-NSCC-2025-003]
Self-Regulatory Organizations; The Depository Trust Company; Fixed Income Clearing Corporation; and National Securities Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proposed Rule Changes Relating to a Participant System Disruption
May 2, 2025
On March 14, 2025, The Depository Trust Company (“DTC”), Fixed Income Clearing Corporation (“FICC”) and National Securities Clearing Corporation (“NSCC,” and together with DTC and FICC, the “Clearing Agencies,” or “Clearing Agency” when referring to one of the three Clearing Agencies) filed with the Securities and Exchange Commission (“Commission”) the proposed rule changes SR-DTC-2025-003; SR-FICC-2025-006; and SR-NSCC-2025-003 pursuant to Section 19(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 19b-4 thereunder to modify the Clearing Agencies’ Disruption Rules. The Proposed Rule Changes were published for public comment in the Federal Register on March 27, 2025. The Commission has received comments regarding the substance of the changes proposed in the Proposed Rule Change.
Details of the Proposed Rule Changes
Section 19(b)(2)(i) of the Exchange Act provides that, within 45 days of the publication of notice of the filing of a proposed rule change, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved unless the Commission extends the period within which it must act as provided in Section 19(b)(2)(ii) of the Exchange Act. This section allows the Commission to designate a longer period for review (up to 90 days from the publication of notice of the filing) if the Commission finds it appropriate and publishes its reasons for doing so.
The 45th day after publication of the Notice of Filing is May 11, 2025. To provide the Commission with sufficient time to consider the Proposed Rule Change, it has been deemed appropriate to designate a longer period for action on the proposed rule changes. Therefore, the deadline has been extended to June 25, 2025.
Conclusion
Accordingly, the Commission, pursuant to Section 19(b)(2) of the Exchange Act, designates June 25, 2025, as the date by which the Commission shall either approve, disapprove, or institute proceedings to determine whether to disapprove proposed rule changes SR-DTC-2025-003; SR-FICC-2025-006; and SR-NSCC-2025-003.
For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
Sherry R. Haywood, Assistant Secretary.
