Federal Register #SR-LCH SA-2026-007

SEC Notice of Proposed Rule Change for LCH SA Minimum Cash Collateral Requirement and Liquidity Risk Policy

This notice from the Securities and Exchange Commission (SEC) concerns a proposed rule change submitted by LCH SA (Banque Centrale de Compensation) regarding its minimum cash collateral requirement and liquidity risk policy. - Government buyer: - Securities and Exchange Commission (SEC) - OEM/vendor mentioned: - LCH SA (Banque Centrale de Compensation) - Products/services requested: - No products or services are being procured; this is a regulatory notice - Notable requirements and changes: - Introduction of a hard minimum cash collateral requirement for clearing members' house accounts - Amendments to the CDS Clearing Rule Book, CDS Clearing Procedures, and LCH Liquidity Risk Policy - Strengthening of liquidity risk management practices - Clarification of collateral management provisions - Updates to references for regulatory requirements and governance processes - This is a regulatory filing, not a procurement opportunity

Description

The Securities and Exchange Commission has filed a proposed rule change related to the LCH SA's minimum cash collateral requirement and liquidity risk policy. LCH SA proposes to amend its CDS Clearing Rule Book, CDS Clearing Procedures, and Liquidity Risk Policy to introduce a minimum cash collateral requirement for clearing members' house accounts. The amendments aim to strengthen liquidity risk management by ensuring a minimum level of cash collateral is maintained, while allowing the use of non-cash collateral for other margin obligations. The proposal also includes clarifications and organizational improvements to collateral management provisions and updates to liquidity risk policy references and governance.

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