Economy News

U.S. SEC proposes rules to mitigate clearing agency governance arrangement conflicts

WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) on Monday proposed rules aimed at mitigating conflicts of interest around registered clearing agencies’ governance arrangements.

Under the Wall Street watchdog’s proposal, registered clearing houses would disclose more details on board composition, independent directors, and nominating and risk management committees, among other details, the agency said.

“I think these rules would help to build more transparent and reliable clearinghouses, SEC Chair Gary Gensler said in a statement on the proposal, which would replace two related measures proposed following the 2009-2010 global financial crises, but which were never adopted.

“This in turn would help ensure our markets are more resilient, protecting investors and building trust in our markets,” Gensler said.

Source:reuters

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