On April 16th, the SEC announced that it is publishing its proposed information‑collection requirements under Rule 17Ad‑27 for public review and comment. The rule applies to central matching service providers (CMSPs) that offer matching services but are exempted from registering as clearing agencies. These CMSPs help broker‑dealers, institutional investors, advisers, and custodians electronically agree on trade details to accelerate automated settlement.
As a component of the transition from the standard two-business-day settlement cycle for securities transactions to a one-business-day settlement cycle, Rule 17Ad‑27 requires CMSPs to:
- Maintain policies and procedures designed to promote straight‑through processing of institutional trades.
- Submit an annual report to the SEC that describes its policies and progress includes detailed monthly data on confirmations, affirmation rates, trade submissions, allocations, matching activity, and the use of manual versus automated processes. These reports must present data in an anonymized and aggregated format and on a month-by-month basis, separated by asset class, user type, and service type.
The SEC has determined that ongoing compliance with Rule 17Ad‑27, including monitoring, documentation, and preparation of the annual report, will impose an annual burden of 37 hours on the single CMSP currently operating under the exemption.
To ensure the necessity, accuracy, and usefulness of this proposed information collection before it is finalized, the SEC will accept comments through 60 days following the proposal’s publication in the Federal Register. For more information, including how to submit remarks, please see the Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 17Ad-27 proposed collection of information on the SEC’s site.
Source:
Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 17Ad-27 (federalregister.gov)
