SEC Allows More Input On Clearing Agency Rule

Law360, New York (March 2, 2011, 3:41 PM EST) -- The U.S. Securities and Exchange Commission elected Wednesday to reopen the comment period on an October rule proposal governing conflicts of interest in the operation and governance of clearing agencies, while approving a rule proposal on incentive-based compensation practices.

The commission unanimously approved the renewed comment period as well as a related rule proposal that would mandate that clearing agencies maintain risk management standards, safeguards for confidentiality and other operational requirements.

The October proposal seeks to limit conflicts of interest in clearing agencies and related trading...
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