FINRA proposed amending Rule 11900 ("Clearance of Corporate Debt Securities") to provide an exception to the general requirement that a clearing firm must clear OTC transactions in corporate debt securities through a registered clearing agency (i.e., the National Securities Clearing Corporation (the "NSCC")).
Under the proposal, where a clearing firm is clearing both the buy and sell side of the transaction, the clearing firm would be permitted to clear the transaction through bookkeeping transfers between the parties' accounts at the clearing firm without submitting the transaction to the NSCC for clearance.
FINRA filed the proposed rule change for immediate effectiveness; the change will become operative 30 days after filing. Comments must be submitted within 21 days of publication in the Federal Register.
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