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.