BusinessSEC To Expand Rules For Too-Big-To-Fail Clearing Houses

The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

SEC To Expand Rules For Too-Big-To-Fail Clearing Houses

September 28, 2016

By: THEWILL_

The U.S. Securities and Exchange Commission on Wednesday said it would adopt rules to strengthen the regulatory framework for clearing agencies deemed systematically important or that are involved in complex transactions, such as security-based swaps.

Clearing agencies act as a middleman between the parties to securities transactions by ensuring the smooth transfer of funds and securities and in some cases serve as a backstop in case a brokerage defaults.

REUTERS