2025-05893Notice

Clearing Corp Polishes Its Doomsday Financial Playbook

Published Date: 4/7/2025

Notice

Summary

The National Securities Clearing Corporation (NSCC) updated its Recovery and Wind-Down Plan to keep up with new business changes and make the plan clearer and easier to follow. This affects financial firms that rely on NSCC to safely handle trades and helps ensure smooth operations if things go wrong. The changes took effect right away with no new costs announced.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Plan Updated to Protect Member Access

If you are an NSCC Member or Limited Member (a financial firm), NSCC updated its Recovery & Wind-Down Plan to reflect business and product developments and to clarify procedures meant to support continuity of NSCC's critical services and enable the transfer of membership if NSCC defaults or the Wind‑down Plan is triggered. These amendments were filed on March 25, 2025 and are intended to help Members maintain access to NSCC services during recovery or wind-down scenarios.

Critical Services Renamed and Consolidated

NSCC updated Table 3-B and Table 3-C to rename and consolidate certain services for consistency with DTCC's enterprise service catalogue: examples include renaming 'Trade Recording' to 'Trade Capture and Reporting (Universal Trade Capture),' renaming 'Real Time Trade Matching' to 'Corporate, Municipals, and Unit Investment Trusts (CMU) Service,' moving several rows to be material components of 'Continuous Net Settlement,' and adding items like 'ACATS-IPS,' 'Commissions and Compensation (COM),' and 'Positions and Valuations (POV)' to the non-critical services list. These changes were filed March 25, 2025.

Changes Took Effect Immediately

NSCC filed the amendments on March 25, 2025 and the changes became effective immediately upon filing. NSCC stated no new costs were announced in connection with these amendments, and the SEC may suspend the change within 60 days of the filing.

Liquidity Tools List Updated and Clarified

NSCC revised the liquidity tools in Table 5-C: it removed language about using Master Repurchase Agreements under 'Non-Qualifying Liquid Resources,' deleted the entry for 'Uncommitted stock loan and equity repos' because NSCC does not use it, revised a footnote to replace 'a significant number of lenders' with 'some of the lenders,' and changed the term 'facility' to 'program' for 'Unissued Commercial Paper.' These updates were included in the filing on March 25, 2025.

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Key Dates

Effective Date
Published Date
3/25/2025
4/7/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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