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lotter on DSK11XQN23PROD with NOTICES3

Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 / Notices Securities than the corresponding Settling SFT.
The term Market Value SFT Cash would mean the portion of the SFT Cash for an SFT equal to the amount of the SFT Cash for such SFT minus the Independent Amount SFT Cash of such SFT.
The term Price Differential would mean a for purposes of the discharge of offsetting Final Settlement and Initial Settlement obligations, i the SFT Cash for the Settling SFT or if the Settling SFT has a greater quantity of SFT
Securities as its subject than the corresponding Linked SFT, the Corresponding SFT Cash minus ii the SFT Cash for the Linked SFT; and b for all other purposes, i the SFT Cash for the SFT minus ii the product of the Independent Amount Percentage, if any, and the Current Market Price of the SFT
Securities.
The term Rate Payment would mean an amount payable from one party to an SFT to the other party to the SFT
at the Final Settlement expressed as a percentage of the amount of SFT Cash for the SFT. As an example, if the Rate Payment is specified as 0.02%, the amount payable would be the product 0.02% and the SFT Cash for the SFT.
The term Recall Date would mean, in respect of a Recall Notice, the second Business Day following NSCCs receipt of such Recall Notice.
The term Recall Notice would mean a notice that triggers the provisions of Section 9b of proposed Rule 56, relating to a Buy-In in respect of an SFT
and that is submitted by an Approved SFT Submitter on behalf of a Transferor in accordance with the communication links, formats, timeframes and deadlines established by NSCC for such purpose.
The term Recalled SFT would mean an SFT that has been novated to NSCC
in respect of which a Recall Notice has been submitted.
The term Securities Financing Transaction or SFT would mean a transaction between two SFT Members pursuant to which a one SFT Member agrees to transfer specified SFT
Securities to another SFT Member versus the SFT Cash; and b the Transferee agrees to retransfer such specified SFT Securities or equivalent SFT Securities including quantity and CUSIP to the Transferor versus the SFT
Cash on the following Business Day.
The term Settling SFT would mean, as of any Business Day, an SFT that has been novated to NSCC, the Final Settlement of which is scheduled to occur on that Business Day.
The term SFT Account would mean a ledger maintained on the books and records of NSCC that reflects the
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outstanding SFTs that an SFT Member enters into and that have been novated to NSCC, the SFT Positions or SFT Cash associated with those transactions and any debits or credits of cash associated with such transactions effected pursuant to Rule 12 Settlement. As proposed, the term SFT Account would include any Agent Clearing Member Customer Omnibus Account and any Sponsored Member Sub-Account.
The term SFT Cash would mean the specified amount of U.S. dollars that the Transferee agrees to transfer to the Transferor at the Initial Settlement of an SFT, i plus any Price Differential paid by NSCC to the SFT Member as Transferor or by the SFT Member as Transferee to NSCC during the term of the SFT and ii less any Price Differential paid by NSCC to the SFT
Member as Transferee or by the SFT
Member as Transferor to NSCC during the term of the SFT.
The term SFT Close-out Value would mean, with respect to an SFT
Position of an SFT Member, an amount equal to: i If the SFT Member is the Transferor of the SFT Securities that are the subject of such SFT, a the CNS
Market Value of the SFT Securities that are the subject of such SFT minus b the SFT Cash for such SFT; and ii if the SFT Member is a Transferee of the SFT Securities that are the subject of such SFT, a the SFT Cash for such SFT
minus b the CNS Market Value of the SFT Securities that are the subject of such SFT.
The term SFT Long Position would mean the number of units of an SFT
Security which an SFT Member is entitled to receive from NSCC at Final Settlement of an SFT against payment of the SFT Cash.
The term SFT Member would mean any Member, Sponsored Member acting in its principal capacity, Sponsoring Member acting in its principal capacity or Agent Clearing Member acting on behalf of a Customer, in each case that is a party to an SFT, permitted to participate in NSCCs SFT Clearing Service.
The term SFT Position would mean an SFT Members SFT Long Position or SFT Short Position as defined below and in the proposed rule change in an SFT Security that is the subject of an SFT that has been novated to NSCC.
The term SFT Security would mean a security that is eligible to be the subject of an SFT novated to NSCC and is included in the list for which provision is made in proposed Section 1g of Rule 3 Lists to be Maintained, as described below. As proposed, if any new or different security is exchanged for any SFT Security in connection with
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a recapitalization, merger, consolidation or other corporate action, such new or different security shall, effective upon such exchange, become an SFT Security in substitution for the former SFT
Security for which such exchange is made.
The term SFT Short Position would mean the number of units of an SFT
Security that an SFT Member is obligated to deliver to NSCC at Final Settlement of an SFT against payment of the SFT Cash.
The term Transferee would mean the SFT Member party to an SFT that agrees to receive SFT Securities from the other SFT Member party to the SFT
in exchange for SFT Cash in connection with the Initial Settlement of the SFT.
The term Transferor would mean the SFT Member party to an SFT that agrees to transfer SFT Securities to the other SFT Member party to the SFT in exchange for SFT Cash in connection with the Initial Settlement of the SFT.
Proposed Rule 56, Section 1 General Section 1 of proposed Rule 56 would be a general provision regarding the SFT
Clearing Service applicable to Members, Sponsoring Members and Agent Clearing Members that participate in the proposed SFT Clearing Service.
Section 1a of proposed Rule 56
would establish that NSCC may accept for novation SFTs entered into between i a Member and another Member, ii a Sponsoring Member and its Sponsored Member, or iii an Agent Clearing Member acting on behalf of a Customer and either x a Member or y the same or another Agent Clearing Member acting on behalf of a Customer.
Section 1b of proposed Rule 56
would provide that any SFT that is submitted to NSCC for novation, and any Member and Sponsored Member that enters into an SFT and any Customer on behalf of whom an Agent Clearing Member enters into an SFT
shall be subject to the provisions of proposed Rule 56; provided that Sections 15 and 16 of proposed Rule 56
shall only apply to Sponsoring Members, Agent Clearing Members, Sponsored Members and Customers, as applicable.
Section 1c of proposed Rule 56
would further provide that any amount of cash described in proposed Rule 56
may be rounded up to the nearest one cent, five cents, 10 cents, 25 cents or dollar according to the rounding convention requested by the SFT
Member parties to the relevant SFT as conveyed to NSCC in accordance with the communication links, formats, timeframes and deadlines established by NSCC for such purpose.

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