Quiero saber acerca de...

44552

Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 / Notices
Customer Omnibus Accounts, to the same extent as such sections apply to any Required Fund Deposit and any other obligations of a Member. For purposes of Section 1 of Rule 4, obligations and liabilities of a Member to NSCC that shall be secured shall include, without limitation, a Members obligations as an Agent Clearing Member under the Rules, including, without limitation, any obligation of any such Agent Clearing Member to provide the Agent Clearing Member Required Fund Deposit and such Agent Clearing Members obligations arising under SFTs established in the Agent Clearing Member Customer Omnibus Accounts of such Agent Clearing Member.
Section 6e of proposed Rule 2D
would provide that an Agent Clearing Member shall be subject to such fines as may be imposed in accordance with the Rules for any late satisfaction of a Clearing Fund deficiency call.

lotter on DSK11XQN23PROD with NOTICES3

Proposed Rule 2D, Section 7 Right of Offset Section 7 of proposed Rule 2D would provide that in the ordinary course, with respect to satisfaction of any Agent Clearing Members obligations under the Rules, the Agent Clearing Members Agent Clearing Member Customer Omnibus Accounts, the Agent Clearing Members proprietary accounts, and the Agent Clearing Members Sponsored Member Sub-Accounts, if any, at NSCC
shall be treated separately, as if they were accounts of separate entities.
Notwithstanding the previous sentence, however, NSCC may, in its sole discretion, at any time any obligation of the Agent Clearing Member arises in respect of any Agent Clearing Member Customer Omnibus Account, exercise a right of offset and net any such obligation against any obligations of NSCC to the Agent Clearing Member in respect of such Agent Clearing Members proprietary accounts at NSCC.
Proposed Rule 2D, Section 8 Loss Allocation Obligations Section 8 of proposed Rule 2D would establish loss allocation obligations for Agent Clearing Members.
Section 8a of proposed Rule 2D
would provide that, to the extent NSCC
incurs a loss or liability from a Defaulting Member Event or a Declared Non-Default Loss Event and a loss allocation obligation arises, that would be the responsibility of the Agent Clearing Member Customer Omnibus Account as if the Agent Clearing Member Customer Omnibus Account were a Member, NSCC shall calculate such loss allocation obligation and the Agent Clearing Member shall be, as
VerDate Sep<11>2014

21:18 Aug 11, 2021

Jkt 253001

principal, responsible for satisfying such obligations.
Section 8b of proposed Rule 2D
would provide that the entire amount of the Required Fund Deposit associated with the Agent Clearing Members proprietary accounts at NSCC and the entire amount of the Agent Clearing Member Required Fund Deposit may be used to satisfy any amount allocated against an Agent Clearing Member, whether in its capacity as a Member, an Agent Clearing Member, or otherwise.
With respect to an obligation to make payment due to any loss allocation amounts assessed on an Agent Clearing Member pursuant to Section 8a of proposed Rule 2D, the Agent Clearing Member may instead elect to terminate its membership in NSCC pursuant to Section 6 of Rule 4 and thereby benefit from its Loss Allocation Cap pursuant to Section 4 of Rule 4; however, for the purpose of determining the Loss Allocation Cap for such Agent Clearing Member, its Required Fund Deposit shall be the sum of its Required Fund Deposits associated with its proprietary accounts at NSCC including its proprietary SFT Account pursuant to proposed Rule 56, its Agent Clearing Member Required Fund Deposit for each of its Agent Clearing Member Customer Omnibus Accounts, and its Sponsoring Member Required Fund Deposit, if any.
Proposed Rule 2D, Section 9
Restrictions on Access to Services by an Agent Clearing Member Section 9 of proposed Rule 2D would establish the rights of NSCC to restrict an Agent Clearing Members access to NSCCs services.
Section 9a of proposed Rule 2D
would provide that the Board of Directors may at any time upon NSCC
providing notice to an Agent Clearing Member pursuant to Section 5 of Rule 45 Notices, suspend an Agent Clearing Member in its capacity as an Agent Clearing Member from any service provided by NSCC either with respect to a particular transaction or transactions or with respect to transactions generally, or prohibit or limit such Agent Clearing Members access to services offered by NSCC in the event that one or more of the factors set forth in Section 1 of Rule 46 Restrictions on Access to Services is present with respect to the Agent Clearing Member.
Section 9b of proposed Rule 2D
would provide that Rule 46 shall apply with respect to an Agent Clearing Member in the same way as it applies to Members, including the Board of Directors right to summarily suspend the Agent Clearing Member and to cease to act for such Agent Clearing Member.

PO 00000

Frm 00024

Fmt 4701

Sfmt 4703

As under Rule 46, the Board of Directors would need to make the determination of whether to suspend, prohibit or limit an Agent Clearing Members access to services offered by NSCC on the basis of the factors set forth in that rule.
Section 9c of proposed Rule 2D
would provide that if NSCC ceases to act for an Agent Clearing Member in its capacity as an Agent Clearing Member, Section 14 of proposed Rule 56 shall apply and NSCC shall decline to accept or process data from the Agent Clearing Member on Agent Clearing Member Transactions and close-out any Agent Clearing Member Transactions that have been novated to NSCC. Section 9c would also provide that if NSCC
suspends, prohibits or limits an Agent Clearing Member in its capacity as an Agent Clearing Member with respect to such Agent Clearing Members access to services offered by NSCC, NSCC shall decline to accept or process data from the Agent Clearing Member on Agent Clearing Member Transactions for so long as NSCC is suspending, prohibiting or limiting the Agent Clearing Member.
Furthermore, Section 9c would state that, in addition, NSCC would close-out any Agent Clearing Member Transactions which have been novated to NSCC.
This is different from how NSCC
would treat Sponsored Member Transactions of a Sponsoring Member under Section 10 of proposed Rule 2C
if NSCC ceases to act for the Sponsoring Member. With respect to such transactions, NSCC would have the option to either terminate or settle a Sponsored Members positions after ceasing to act for the Sponsoring Member. The reason for this difference is that NSCC would have the practical and legal capability to make such an election because each Sponsored Member would be a limited-purpose member of NSCC. Accordingly, NSCC
would have the requisite information about each of the Sponsored Members novated positions by virtue of each Sponsored Members novated portfolio represented as a different sub-account of the Sponsoring Member i.e., Sponsored Member Sub-Account on the books and records of NSCC to make such an election. By contrast, an Agent Clearing Members Customers would not be limited-purpose members of NSCC nor would NSCC know which transactions within an Agent Clearing Member Customer Omnibus Account belong to which Customers. As such, NSCC
would not be able to separately terminate or complete settlement with respect to Customers novated positions.

E:FRFM12AUN3.SGM

12AUN3