FICC Removes Sponsoring Member Reporting Requirement
Sponsoring Members of the Fixed Income Clearing Corporation's Government Securities Division no longer must provide written notice of non-compliance or reportable events, effective immediately.
The Securities and Exchange Commission published a notice on November 4, 2026 announcing that Fixed Income Clearing Corporation (FICC) filed a proposed rule change on October 29, 2026 that is effective immediately. The filing, identified as Release No. 34-106815 and File No. SR-FICC-2026-011 (FR Doc No. 2026-22755), seeks to amend the Government Securities Division Rulebook.
The amendment deletes the requirement in Section 2(g) of Rule 3A that a Sponsoring Member must submit written notice to FICC when it becomes aware a Sponsored Member is out of compliance with Section 3(a) of Rule 3A, and also removes the obligation to notify FICC before the effective date of any Reportable Event affecting a Sponsored Member.
FICC states that recent enhancements to its monitoring of Sponsored Members - including periodic due-diligence requests, use of Legal Entity Identifiers, and a third-party compliance tool - render the former reporting obligations unnecessary. The agency also notes that the reporting language was retained in error after earlier rule changes eliminated the underlying compliance requirements.
The change aligns with other recent adjustments to FICC's access models, such as the removal of the qualified institutional buyer eligibility requirement for Sponsored Members. These broader reforms were implemented in response to the SEC's final rule on standards for covered clearing agencies for U.S. Treasury securities.
The Commission is soliciting comments on the proposed rule change. Interested parties may submit comments in accordance with the procedures outlined in the notice.
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