Federal Register #SR-CMESC-2026-004

SEC Notice: Proposed Rule Changes by CME Securities Clearing Inc. for Member Risk Management and User Authorization

This notice from the Securities and Exchange Commission (SEC) outlines proposed rule changes by CME Securities Clearing Inc. (CMESC) to improve risk management and user authorization for members clearing U.S. Treasury securities. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs/Vendors Mentioned: - CME Securities Clearing Inc. (CMESC) - The Nasdaq Stock Market LLC (regulatory context only) - Products/Services Requested: - No physical products or purchase quantities are requested - Regulatory services: Proposed rule changes to the CMESC Rulebook - Enhancements to members' ability to authorize and terminate users - Establishment of secondary security interests in user funds - Clarification of member participation in liquidation of user positions upon default - New rules to support regulatory capital requirements for banks and affiliates - Nasdaq proposes a rule to delist securities suspended for potential manipulation - Unique/Notable Requirements: - Focus on improving risk management flexibility for clearing members - Legal structures for security entitlements and user position close-out - Designed to support prompt and accurate clearance and settlement of U.S. Treasury securities - No procurement of goods or traditional services; this is a regulatory/operational change

Description

The Securities and Exchange Commission (SEC) published a notice regarding a proposed rule change by CME Securities Clearing Inc. The rule change aims to support members' risk management and enhance their ability to authorize persons as users. It includes modifications to the CMESC Rulebook to provide members means to enforce contractual termination rights against authorized users, create legal structures for security entitlement, and strengthen members' ability to participate in the close-out of user positions in case of default. These changes are designed to support members' risk management flexibility and regulatory capital considerations.

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