The SEC is proposing rules for the operation and governance of clearing agencies, and reopening the public comment period for rules proposed in October related to security-based swaps.  Comment period runs until 4/29/11.  The clearing agencies rules are designed to further strengthen SEC oversight and mitigate systemic risk concerns.  The security-based swap rules are intended to mitigate conflicts of interest for security-based swap clearing agencies, security-based swap execution facilities, and national securities exchanges that post or make available for trading security-based swaps.

As proposed, clearing agencies would be required, among other things, to :

• Maintain certain standards with respect to risk management and operations.
• Have adequate safeguards and procedures to protect the confidentiality of trading information.
• Have procedures that identify and address conflicts of interest.
• Require minimum governance standards for their boards of directors.
• Designate a CCO (chief compliance officer).
• Disseminate pricing and valuation information if they perform central counterparty services for security-based swaps.

The SEC release continues with a "Fact Sheet" on the proposals, that includes a discussion on the 'Re-Opening of the Comment Period for Regulation MC'.

For further details, go to:  [SEC PR 11-58, 'Clearing Agency Standards']