Securities and Exchange Commission
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 [Release No. 34-105553; File No. SR-LCH SA-2026-001] May 26, 2026. I. Introduction On April 8, 2026, Banque Centrale de Compensation, which conducts business under the name LCH SA (“LCH SA”), filed with the Securities and Exchange Commission (the “Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”)  [ 1 ] and Rule 19b-4 thereunder, [ 2 ] a proposed rule change to ( printed page 32137) modify its CDS Clearing risk framework. The proposed rule change was published for comment in the Federal Register on April 17, 2026. [ 3 ] The Commission did not receive comments regarding the proposed rule change. For the reasons discussed below, the Commission is approving the proposed rule change. II. Description of the Proposed Rule Change LCH SA is a clearing agency registered with the Commission that provides central counterparty (“CCP”) services for security-based swaps, including credit default swaps (“CDS”) and options on CDS, through its CDSClear business unit. Part of LCH SA's CCP function is to interpose itself as the buyer to every seller and the seller to every buyer for certain financial transactions, which exposes it to certain risks arising from providing clearing and settlement services to its clearing members. One such risk is the credit risk stemming from the trading activities of LCH SA's clearing members because LCH SA is obligated…
Citation: 91 FR 32136
