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.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
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!
2026-10241 — Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Operational Arrangements (Necessary for Securities to Become and Remain Eligible for DTC Services)
The Depository Trust Company (DTC) is updating its rules to make it easier and clearer for agents handling corporate offers like tenders and subscriptions through its automated systems. This change affects companies and agents using DTC services to process these offers and starts right away with no extra costs. It’s all about smoother, faster, and more reliable processing for everyone involved!
2026-10244 — Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule Applicable to Members Concerning Equities Transaction Pricing
Investors Exchange (IEX) is updating its fee schedule starting June 1, 2026. Members who trade stocks will see changes in how they qualify for rebates and fee discounts based on their trading volume. These tweaks aim to make fees fairer and encourage more trading activity on the exchange.
2026-10245 — Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3120 To Increase the Position and Exercise Limits for Options on the iShares Bitcoin Trust ETF
BOX Exchange is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF. This change lets bigger players trade more freely and takes effect immediately, matching similar moves by other exchanges. If you trade these options, get ready for bigger opportunities starting now!
2026-10129 — The Goldman Sachs Group, Inc.
Goldman Sachs is asking the SEC for special permission to create investment funds just for its employees, letting them skip some usual rules. This change mainly affects Goldman Sachs workers and could speed up how these funds work without changing important protections. If no one objects by June 12, 2026, the SEC will approve this request.
2026-10168 — Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 17a-2
The SEC is asking to keep the rules that require underwriters to keep records about certain stock market activities for three years. About 647 companies spend around 3,235 hours and $530,000 yearly to follow these rules. This extension keeps things running smoothly without adding new costs or changes.
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.