SEC Adopts Dodd-Frank Risk Guidelines For Clearing Agencies

Law360, New York (October 22, 2012, 11:23 PM EDT) -- The U.S. Securities and Exchange Commission on Monday adopted a final rule detailing guidelines for how registered clearing agencies should manage risks and run their operations.

The rule sets standards for managing credit exposures, margin requirements and financial resources and also establishes record-keeping and financial disclosure requirements for registered clearing agencies, which act as middlemen in a securities transaction, the SEC said.

The rule was implemented under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which gave the agency authority to establish standards for clearing...
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