NSCC Revises Recovery Plan for Market Stability Rules
Published Date: 4/29/2025
Notice
Summary
The National Securities Clearing Corporation (NSCC) is updating its plan to handle big money problems or business troubles so it can keep running smoothly or shut down safely if needed. This change affects NSCC and anyone relying on its services to clear trades, making sure they follow new rules by mid-2025. No extra costs are expected, but the update keeps the financial system safer and stronger.
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
NSCC updates plan to protect clearing services
NSCC is amending its Recovery & Wind-down Plan to meet SEC Rule 17ad-26 and says the changes must be effective by December 15, 2025. The updates are meant to help keep NSCC's core clearing and settlement services running in extreme stress and to allow transfer of NSCC membership and business if a wind-down is triggered.
Annual testing and member simulations required
The amended Plan will include procedures to test NSCC's ability to implement recovery and wind-down at least every 12 months. NSCC would require certain Members to participate in simulations, with Member selection based on factors like account structure, affiliated family structure, business model, operational details, and Member size.
NSCC says no added burden or costs expected
NSCC states it does not believe the proposed amendments will have any impact on competition or impose burdens, and it does not expect the changes to affect its day-to-day operations under normal circumstances. NSCC says the updates are intended to clarify and align the Plan with Rule 17ad-26 rather than change the Plan's overall recovery or wind-down strategy.
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