Proposed Rule Change to Increase the National Securities Clearing Corporation Minimum Required Fund Deposit

      June 22nd | 2021

      The National Securities Clearing Corporation (“NSCC”) recently proposed rule change to increase the minimum Required Fund Deposit, which the NSCC uses to manage its credit exposure to Members. The aggregate of all Members’ Required Fund Deposits, together with certain other deposits make up the Clearing Fund of NSCC, which it would be used to satisfy losses to NSCC caused by the liquidation of a Member’s portfolio. Currently, the Required Fund Deposit amount of $10,000; the proposal seeks to increase it to $250,000. One commenter noted this proposal’s relevance to the highly publicized trading in meme stocks like GME and AMC and the brokers who restricted trading in those names.

      Previous post Next post

      More like this

      CFTC Staff Issues Advisory to Swap Dealers

      June 24th | 2021 The CFTC recently issued an advisory to swap dealers clarifying the use of internal models in…
      Read more

      Adjustment for Inflation of the Dollar Amount Tests in Rule 205-3 under the Investment Advisers Act

      June 22nd | 2021 The SEC recently approved an order that adjusts for inflation the dollar amount thresholds of the…
      Read more

      FINRA Eliminates the Order Audit Trail System (OATS) Rules

      June 22nd | 2021 FINRA recently announced September 1, 2021 as the effective date for the elimination of the Order…
      Read more

      SEC Approves FINRA Changes to Rule 5122 and FINRA Rule 5123

      June 15th | 2021 On June 9, 2021, the SEC approved FINRA’s proposal to amend FINRA Rule 5122 ("Private Placements…
      Read more

      FINRA Requests Comment on Short Interest Position Reporting Enhancements

      June 9th | 2021FINRA is requesting comment on potential enhancements to its short sale reporting program. Pursuant to FINRA Rule…
      Read more

      Consolidated Audit Proposed Funding Model

      May 26th | 2021 The comment period on a revised funding model (“Proposed Funding Model”) for the consolidated audit trail…
      Read more