Clearing Agency Governance and Conflicts of Interest

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Securities and Exchange Commission 17 CFR Parts 240 and 242 [Release No. 34-95431; File No. S7-21-22] RIN 3235-0695 AGENCY: Securities and Exchange Commission. ACTION: Proposed rule; partial withdrawal of proposed rule; withdrawal of applicability of proposed rule. SUMMARY: The Securities and Exchange Commission (“Commission”) is proposing rules under the Securities Exchange Act of 1934 (“Exchange Act”) to help improve the governance of clearing agencies registered with the Commission (“registered clearing agencies”) by reducing the likelihood that conflicts of interest may influence the board of directors or equivalent governing body (“board”) of a registered clearing agency. The proposed rules would identify certain responsibilities of the board, increase transparency into board governance, and, more generally, improve the alignment of incentives among owners and participants of a registered clearing agency. In support of these objectives, the proposed rules would establish new requirements for board and committee composition, independent directors, management of conflicts of interest, and board oversight. DATES: As of August 23, 2022, SEC withdraws amendatory instructions # 7 and 8 (§§ 240.17Ad-25 and 240.17Ad-26 in Release No. 34-64017), published at 76 FR 14472 on March 16, 2011. Also as of August 23, 2022, SEC withdraws the applicability of the proposed rule published at 75 FR 65881 on October 26, 2010 (Re…