SEC Lifts Bond Trading Caps for Smoother Market Flows
Published Date: 3/23/2026
Notice
Summary
The Fixed Income Clearing Corporation (FICC) just got the green light to remove the activity limit for some of its members in the Government Securities Division (GSD). This means sponsoring members can now trade more freely, while certain rules will only apply to those with big trading volumes. The change kicks in soon and aims to make trading smoother without extra costs or risks.
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Smaller Intraday VaR Charges for Most Sponsored Members
FICC changed the intraday VaR methodology so the 'higher of' calculation would apply only when an indirect participant's liquidity needs exceed FICC's daily liquidity need. FICC's Impact Study (April 1, 2024 to October 31, 2025) found 95.5% of the Sponsored Members in the study would have had a reduction in their VaR Charges, with an average daily reduction of about $20.2 million (approximately 32%).
Removal of Sponsoring Member Activity Cap
On March 18, 2026 the SEC approved removing the GSD activity limit that previously stopped a Sponsoring Member from submitting activity when its Aggregate VaR Charges exceeded its Netting Member Capital. This change means Sponsoring Members can submit activity even if their Aggregate VaR Charges exceed their capital, per the amendment to GSD Rule 3A.
Higher-of Methodology Extended to Segregated Indirect Accounts
The rule change expands the application of the 'higher of' intraday VaR calculation to Segregated Indirect Participants Accounts so these accounts are monitored and risk-managed similarly to Sponsoring Member Omnibus Accounts. FICC stated the extension is because both account types record transactions submitted on behalf of indirect participants.
Liquidity Threshold Triggers 25-Business-Day Margin Change
FICC will apply the 'higher of' intraday VaR Charge to a Sponsored Member or Segregated Indirect Participant if that indirect participant's aggregate liquidity needs across all accounts exceed FICC's daily liquidity need on any Business Day. If triggered, the 'higher of' intraday VaR Charge is applied to that indirect participant for the following 25 Business Days.
Measures to Limit Mutualized Loss Exposure
The Commission found the change should allow FICC to assess margin more accurately and thus help limit non-defaulting members' exposure to mutualized losses. FICC retains tools like intraday supplemental fund deposits and the Excess Capital Ratio monitoring to manage exposures.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-16853, Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Its Price List
The New York Stock Exchange is changing its price rules starting August 11, 2026. They’re tweaking the share amount needed to get free late D Orders at the market close and cleaning up some wording. This affects traders using these order types and could save or cost them money depending on their order size.
2026-16855, Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Equity 4, Rule 3100 Regarding Trading Halts
Previous / Next Documents
Previous: 2026-05561, Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment Nos. 1 and 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified and Superseded by Amendment No. 2, To Amend Rule 5.4 To Change the Minimum Increment for Options on the Cboe Magnificent 10 Index
Cboe Exchange is changing the smallest price step for options on its Magnificent 10 Index to make trading smoother and more precise. This change affects traders using these options and kicks in soon, helping them save money and trade smarter. The SEC gave this update a speedy thumbs-up, so watch for the new rules rolling out shortly!
Next: 2026-05563, Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order Approving a Proposed Rule Change, as Modified by Amendment No. 2, To Amend the Exchange's Rules To Enable the Trading of Securities on the Exchange in Tokenized Form
Nasdaq just got a futuristic upgrade! Starting soon, investors can trade securities in a cool new way—using digital tokens instead of traditional shares. This change opens the door for faster, more flexible trading and could shake up how money moves in the market.