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Clearing Agencies

Dec. 18, 2018

Section 17A of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 17Ab2-1 require entities to register with the Commission prior to performing the functions of a clearing agency. Under the statute, the Commission is not permitted to grant registration unless it determines that the rules and operations of the clearing agency meet the standards set forth in Section 17A.

Clearing agencies are broadly defined under Section 3(a)(23)(A) of the Exchange Act and undertake a variety of functions. Two common functions of registered clearing agencies are the functions of a central counterparty (“CCP”) or a central securities depository (“CSD”).

Under Rule 17Ad-22(a)(2), a clearing agency performs the functions of a CCP when it interposes itself between the counterparties to securities transactions, acting functionally as the buyer to every seller and the seller to every buyer.

As defined in Rule 17Ad-22(a)(3), CSD services means services of a clearing agency that is a securities depository as described in Section 3(a)(23)(A) of the Exchange Act. Generally, a clearing agency performs the functions of a CSD when it operates a centralized system for the handling of securities certificates.

Following is a list of clearing agencies registered with the Commission under Section 17A of the Exchange Act and Rule 17Ab2-1:

Link to SRO Proposed Rule Change and Advance Notice Filings

Following is a list of clearing agencies exempt from registration with the Commission under Section 17A(b)(1) of the Exchange Act:

Selected Releases and Documents

  • Amendment to Securities Transaction Settlement Cycle
  • Standards for Covered Clearing Agencies
  • Definition of Covered Clearing Agency
  • Clearing Agency Standards
  • Process for Submissions for Review of Security-Based Swaps for Mandatory Clearing and Notice Filing Requirements for Clearing Agencies
  • Order Pursuant to Section 36 of the Securities Exchange Act of 1934 Granting Temporary Exemptions From Clearing Agency Registration Requirements Under Section 17A(b) of the Exchange Act for Entities Providing Certain Clearing Services for Security-Based Swaps
  • Securities Transactions Settlement
  • Confirmation and Affirmation of Securities Trades
  • SEC Registration of Clearing Agencies
  • Regulation of Clearing Agencies
    • Announcement of Standards for the Registration of Clearing Agencies, Release 34-16900 (June 17, 1980)
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