A FINRA proposal to amend >Rule 11900 ("Clearance of Corporate Debt Securities") was published in the Federal Register. Comments must be submitted by February 20, 2020.
As previously covered, the proposal would 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.
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