SEC Adopts Rules to Improve Clearing Agency Governance and Mitigate Conflicts of Interest

The Securities and Exchange Commission has adopted new rules to improve the governance of all registered clearing agencies by reducing the likelihood that conflicts of interest may influence their boards of directors or equivalent governing bodies. “I am pleased to support this adoption because it helps foster more resilient clearinghouses,” said SEC Chair Gary Gensler. “Congress has said that the Commission has an important role relating to clearinghouses. This adoption seeks to enhance standards to achieve several goals: promote board independence, consider the views of relevant stakeholders, and reduce the potential for conflicts of interest with respect to the board and senior management.