CMESC proposes rules-based CLF master agreement and liquidity policy updates

On August 21, 2026 CME Securities Clearing Inc. (CMESC) filed a proposed rule change with the Securities and Exchange Commission (SEC) under Section 19(b)(2) of the Securities Exchange Act of 1934. The filing, identified as Release No. 34-106243 and File No. SR-CMESC-2026-008, seeks to amend Rule 410, Rule 101, the Capped Liquidity Facility (CLF) Procedure, and the Liquidity Risk Management Policy (LRMP). The notice, published in the Federal Register on August 31, 2026 (Vol. 91, No. 170, pp. 56678-56685), invites comment from interested parties.

The core of the proposal is to convert the existing CLF Master Repurchase Agreement (MRA) into a rules-based agreement embedded in Rule 410. Under the current text, each Member must execute a separate CLF MRA with CMESC. The amendment would make the MRA operative by rule, incorporate the SIFMA Master Repurchase Agreement (September 1996 version) by reference, and add specific paragraphs (a)-(g) to address default events, transaction terms, and conflict resolution between the SIFMA MRA and the CLF MRA. The changes also clarify the calculation of each Member's Allocated CLF Amount and require newly approved Members to provide information needed for that determination.

Conforming revisions to Rule 101, which defines the CLF MRA, and to the CLF Procedure and LRMP are included to eliminate ambiguities and improve consistency across CMESC's governance documents. The proposed language moves existing provisions from Rule 410(a)(ii) into the new rules-based MRA, renumbers sections, and removes redundant language concerning eligible securities categories.

If adopted, the amendments will bind all CMESC clearing members that engage in eligible securities transactions, aligning the CLF framework with SEC Rule 17ad-22(e) liquidity requirements. Comments must be submitted by the deadline indicated in the Federal Register notice.