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Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 / Notices Pertaining to Information Sharing, and Addendum P Fine Schedule shall apply to SFTs and SFT Members, unless the context otherwise requires.

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D Other Rule Changes In connection with proposed Rules 2C, 2D and 56, NSCC is also proposing to make conforming and technical changes to the following Rules to accommodate the proposed introduction of the new membership categories and the proposed SFT Clearing Service.
Rule 1 Definitions and Descriptions In connection with proposed Rules 2C, 2D and 56, NSCC is proposing to add the following defined terms to Rule 1, in alphabetical order: Agent Clearing Member, Agent Clearing Member Agreement, Agent Clearing Member Customer Omnibus Account, Agent Clearing Member Required Fund Deposit, Agent Clearing Member Termination Date, Agent Clearing Member Transaction, Agent Clearing Member Voluntary Termination Notice, Aggregate Net SFT Close-out Value, Approved SFT Submitter, Bilaterally Initiated SFT, Buy-In, Buy-In Amount, Buy-In Costs, Buy-In Indemnified Parties, Contract Price, Corresponding SFT Cash, Customer, Customer Clearing Service, Deemed Buy-In Costs, Defaulting SFT Member, Default-Related SFT, Distribution, Distribution Amount, Distribution Payment, Existing Master Agreement, Final Net Settlement Position, Final Settlement, Final Settlement Date, Former Sponsored Member, Incremental Additional Independent Amount SFT Cash, Independent Amount Percentage, Independent Amount SFT Cash, Independent Amount SFT Cash Deposit, Independent Amount SFT Cash Deposit Requirement, Ineligibility Date, Ineligible SFT, Ineligible SFT Security, Initial Settlement, Linked SFT, Market Value SFT Cash, Net Capital, Net Member Capital, Net Worth, NonReturned SFT, Price Differential, Rate Payment, Recall Date, Recall Notice, Recalled SFT, Required SFT Deposit, Securities Financing Transaction or SFT, Securities Financing Transaction Clearing Service or SFT Clearing Service, Settling SFT, SFT Account, SFT Cash, SFT Close-out Value, SFT
Deposit, SFT Long Position, SFT
Member, SFT Position, SFT Security, SFT Short Position, Sponsored Member, Sponsored Member Agreement, Sponsored Member Liquidation Amount, Sponsored Member SubAccount, Sponsored Member Termination Date, Sponsored Member Transaction, Sponsored Member Voluntary Termination Notice,
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Sponsoring Member, Sponsoring Member Agreement, Sponsoring Member Guaranty, Sponsoring Member Liquidation Amount, Sponsoring Member Required Fund Deposit, Sponsoring Member Settling Bank Omnibus Account, Sponsoring Member Termination Date, Sponsoring Member Voluntary Termination Notice, Sponsoring/Sponsored Membership Program Indemnified Parties or SMP
Indemnified Parties, Transferee, Transferor and Volatility Charge.
In addition, NSCC is proposing to add three defined terms: CNS Market Value, which is already defined in Rule 41 Corporation Default, CNS
Transaction, which is already defined in Rule 11 CNS System, and Corporation Default, which is already defined in Rule 41 Corporation Default.
NSCC is also proposing to add the defined term FICC to mean Fixed Income Clearing Corporation. The term FICC is already used in Addendum P
Fine Schedule but has not been defined.
Furthermore, NSCC is proposing to reorder the defined term Index Receipt Agent so it would be in alphabetical order.
In connection with proposed Rules 2C, 2D and 56, NSCC is also proposing to modify the definitions for the following defined terms in Rule 1, in alphabetical order: Clearing Fund, FFI
Member, Qualified Securities Depository, and Required Fund Deposit.
Specifically, NSCC is proposing to expand the definition of Clearing Fund to include SFT Deposit, unless noted otherwise in the Rules. NSCC is also proposing to revise the definition of FFI
Member and the proposed definition of Tax Certification 88 to add references to Sponsored Members. Furthermore, NSCC is proposing to revise the definition of Qualified Securities Depository to include a reference to transfer of securities in respect of the proposed SFT Clearing Service. Lastly, NSCC is proposing to expand the definition of Required Fund Deposit to include Sponsoring Member Required Fund Deposit, the Agent Clearing Member Required Fund Deposit, and the Required SFT Deposit, unless noted otherwise in the Rules.
88 NSCC has proposed to add Tax Certification as a defined term in Rule 1 Definitions and Descriptions under a separate proposal. See SR
NSCC2021009, which was filed with the Commission but has not yet been published in the Federal Register. A copy of this proposed rule change is available at http www.dtcc.com/legal/
sec-rule-filings.aspx.

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Rule 2 Members and Limited Members NSCC is proposing to revise the title of Rule 2 to include a reference to Sponsored Members. As proposed, Rule 2 would be retitled as Members, Limited Members and Sponsored Members.
NSCC is also proposing to revise Section 2 of Rule 2. Specifically, NSCC
is proposing to clarify in Section 2i that a Member shall include a Member in its capacity as a Sponsoring Member to the extent specified in proposed Rule 2C and an Agent Clearing Member to the extent specified in proposed Rule 2D. In addition, NSCC is proposing to add a new subsection iii to Section 2 that would describe Sponsored Members as any Person that has been approved by NSCC to become a Sponsored Member and only participates in NSCCs SFT
Clearing Service as provided for in proposed Rule 56. In addition, NSCC is proposing to add references to Sponsored Members in the last paragraph of Section 2, Sections 4i and 4ii, and proposed Section 5 89 of Rule 2.
Rule 3 Lists to be Maintained NSCC is proposing to add subsection g to Section 1 of Rule 3 to provide that NSCC shall maintain a list of the securities that may be the subject of a novated SFT and may from time to time add securities to such list or remove securities therefrom.
NSCC is also proposing to modify Sections 3b and 4 of Rule 3 to include references to Sponsored Members.
Rule 4 Clearing Fund NSCC is proposing to modify Section 1 of Rule 4 in order to make it clear that the minimum Required Fund Deposit amount provided therein shall not include Required SFT Deposit, which is subject to a separate minimum $250,000
deposit requirement pursuant to Section 12c of proposed Rule 56, as described above.
Rule 5 General Provisions NSCC is proposing to modify Section 1 of Rule 5 in order to provide that delivery of SFT Securities and SFT Cash to NSCC shall be made through the facilities of a Qualified Securities Depository. In addition, NSCC is also proposing changes in Section 1 of Rule 5 to provide that delivery and payment with respect to SFT Securities and SFT
Cash shall be effected as prescribed in 89 NSCC has proposed to add Section 5 to Rule 2 in a separate proposal that has been filed with the Commission. See Securities Exchange Act Release No. 92334 July 7, 2021, 86 FR 36815 July 13, 2021 SRNSCC2021007.

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