Federal Register #SR-DTC-2026-005

Proposed Rule Change by DTC for Enhanced Risk Management and Regulatory Compliance

This notice concerns a proposed rule change by The Depository Trust Company (DTC) to enhance regulatory compliance and risk management in securities clearing: - Government buyer: - Securities and Exchange Commission (SEC) - The Depository Trust Company (DTC) as the regulated entity - No OEMs or vendors are mentioned; this is not a procurement opportunity - No products or services are requested - Notable requirements: - DTC seeks to amend Rule 2 to align with SEC Rule 17ad-22(e)(19) - The amendment would allow DTC to inspect books, records, and information about relationships between DTC Participants and indirect participants - The goal is to improve DTC's ability to identify, monitor, and manage material risks from indirect participants - Focus is on regulatory compliance, risk management, and operational transparency within the clearing agency framework

Description

The Depository Trust Company (DTC) proposes a rule change to amend its rules to align with Rule 17ad-22(e)(19) under the Securities Exchange Act of 1934. The amendment updates DTC Rule 2 to permit DTC to inspect books, records, and information relating to Participants' relationships with indirect participants, enabling better risk management. This change supports DTC's compliance with regulatory requirements to identify, monitor, and manage material risks posed by indirect participants relying on direct participants for access to clearing services.

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