FIXED INCOME CLEARING CORPORATION GOVERNMENT SECURITIES DIVISION RULEBOOK

FIXED INCOME CLEARING CORPORATION

GOVERNMENT SECURITIES DIVISION RULEBOOK

EFFECTIVE AS OF JUNE 21, 2024

TABLE OF CONTENTS

RULE 1 ¨C DEFINITIONS .............................................................................................................. 6

RULE 2 ¨C MEMBERS.................................................................................................................. 75

RULE 2A ¨C INITIAL MEMBERSHIP REQUIREMENTS......................................................... 76

RULE 3 ¨C ONGOING MEMBERSHIP REQUIREMENTS ....................................................... 87

RULE 3A ¨C SPONSORING MEMBERS AND SPONSORED MEMBERS ............................ 101

RULE 3B ¨C CENTRALLY CLEARED INSTITUTIONAL TRIPARTY SERVICE............... 122

RULE 4 ¨C CLEARING FUND AND LOSS ALLOCATION .................................................... 142

RULE 5 ¨C COMPARISON SYSTEM ........................................................................................ 157

RULE 6A ¨C BILATERAL COMPARISON ............................................................................... 160

RULE 6B ¨C DEMAND COMPARISON.................................................................................... 162

RULE 6C ¨C LOCKED-IN COMPARISON ............................................................................... 165

RULE 7 ¨C REPO TRANSACTIONS ......................................................................................... 170

RULE 8 ¨C EXECUTING FIRM TRADES ................................................................................. 171

RULE 9 ¨C YIELD TO PRICE CONVERSION .......................................................................... 173

RULE 10 ¨C ENHANCED COMPARISON PROCESSES PRESUMED MATCH DATA ...... 175

RULE 11 ¨C NETTING SYSTEM ............................................................................................... 178

RULE 11A ¨C RESERVED.......................................................................................................... 185

RULE 12 ¨C SECURITIES SETTLEMENT................................................................................ 186

RULE 13 ¨C FUNDS-ONLY SETTLEMENT ............................................................................. 193

RULE 14 ¨C FORWARD TRADES............................................................................................. 205

RULE 15 ¨C SPECIAL PROVISIONS FOR CERTAIN NETTING MEMBERS ...................... 206

RULE 16 ¨C NETTING OF LOCKED-IN TRADES .................................................................. 207

RULE 17 ¨C NETTING AND SETTLEMENT OF NETTING-ELIGIBLE AUCTION

PURCHASES ............................................................................................................................. 208

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RULE 18 ¨C SPECIAL PROVISIONS FOR REPO TRANSACTIONS ..................................... 210

RULE 19 ¨C SPECIAL PROVISIONS FOR BROKERED REPO TRANSACTIONS ............. 213

RULE 20 ¨C SPECIAL PROVISIONS FOR GCF REPO TRANSACTIONS ............................ 215

RULE 21 ¨C RESTRICTIONS ON ACCESS TO SERVICES .................................................... 221

RULE 21A ¨C WIND-DOWN OF A NETTING MEMBER ....................................................... 224

RULE 22 ¨C INSOLVENCY OF A MEMBER ........................................................................... 226

RULE 22A ¨C PROCEDURES FOR WHEN THE CORPORATION CEASES TO ACT ........ 228

RULE 22B ¨C CORPORATION DEFAULT ............................................................................... 236

RULE 22C ¨C INTERPRETATION IN RELATION TO THE FEDERAL DEPOSIT

INSURANCE CORPORATION IMPROVEMENT ACT OF 1991 .......................................... 238

RULE 22D ¨C WIND-DOWN OF THE CORPORATION ......................................................... 239

RULE 23 ¨C FINE PAYMENTS .................................................................................................. 249

RULE 24 ¨C CHARGES FOR SERVICES RENDERED ........................................................... 250

RULE 25 ¨C BILLS RENDERED................................................................................................ 251

RULE 26 ¨C RESERVED ............................................................................................................ 252

RULE 27 ¨C ADMISSION TO PREMISES OF THE CORPORATION, POWERS OF

ATTORNEY, ETC. .................................................................................................................... 253

RULE 28 ¨C FORMS.................................................................................................................... 254

RULE 29 ¨C RELEASE OF CLEARING DATA ........................................................................ 255

RULE 30 ¨C LISTS TO BE MAINTAINED ............................................................................... 256

RULE 31 ¨C RESERVED ............................................................................................................ 257

RULE 32 ¨C SIGNATURES ........................................................................................................ 258

RULE 33 ¨C PROCEDURES ....................................................................................................... 259

RULE 34 ¨C INSURANCE .......................................................................................................... 260

RULE 35 ¨C FINANCIAL REPORTS ......................................................................................... 261

RULE 36 ¨C RULE CHANGES ................................................................................................... 262

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RULE 37 ¨C HEARING PROCEDURES .................................................................................... 263

RULE 38 ¨C GOVERNING LAW AND CAPTIONS ................................................................. 266

RULE 39 ¨C LIMITATIONS OF LIABILITY ............................................................................ 267

RULE 40 ¨C GENERAL PROVISIONS ...................................................................................... 269

RULE 41 ¨C CROSS GUARANTY AGREEMENTS ................................................................. 270

RULE 42 ¨C SUSPENSION OF RULES ..................................................................................... 272

RULE 43 ¨C CROSS-MARGINING ARRANGEMENTS .......................................................... 273

RULE 44 ¨C ACTION BY THE CORPORATION ..................................................................... 276

RULE 45 ¨C NOTICES ................................................................................................................ 277

RULE 46 ¨C INTERPRETATION OF TERMS ........................................................................... 278

RULE 47 ¨C INTERPRETATION OF RULES ........................................................................... 279

RULE 48 ¨C DISCIPLINARY PROCEEDINGS ......................................................................... 280

RULE 49 ¨C DTCC SHAREHOLDERS AGREEMENT ............................................................ 282

RULE 50 ¨C MARKET DISRUPTION AND FORCE MAJEURE ............................................ 284

RULE 50A ¨C SYSTEMS DISCONNECT: THREAT OF SIGNIFICANT IMPACT TO THE

CORPORATION¡¯S SYSTEMS ................................................................................................. 287

SCHEDULE OF TIMEFRAMES ............................................................................................... 289

SCHEDULE OF GCF REPO TIMEFRAMES ........................................................................... 291

SCHEDULE OF SPONSORED GC TRADE TIMEFRAMES ................................................ 292

SCHEDULE FOR THE DELETION OF TRADE DATA ......................................................... 293

SCHEDULE OF REQUIRED MATCH DATA ......................................................................... 294

SCHEDULE OF REQUIRED DATA SUBMISSION ITEMS .................................................. 295

SCHEDULE OF REQUIRED AND ACCEPTED DATA SUBMISSION ITEMS FOR A

SUBSTITUTION OF EXISTING SECURITIES COLLATERAL .......................................... 296

SCHEDULE OF REQUIRED AND ACCEPTED DATA SUBMISSION ITEMS FOR A

SUBSTITUTION FOR NEW SECURITIES COLLATERAL .................................................. 297

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SCHEDULE OF REQUIRED AND OTHER DATA SUBMISSION ITEMS FOR GCF REPO

TRANSACTIONS ...................................................................................................................... 298

SCHEDULE OF MONEY TOLERANCES ............................................................................... 300

SCHEDULE OF GC COMPARABLE SECURITIES ............................................................... 301

FEE STRUCTURE ..................................................................................................................... 304

FINE SCHEDULES.................................................................................................................... 314

CROSS-MARGINING AGREEMENTS ................................................................................... 318

BOARD STATEMENTS OF POLICY ...................................................................................... 319

INTERPRETIVE GUIDANCE WITH RESPECT TO WATCH LIST CONSEQUENCES .... 320

INTERPRETIVE GUIDANCE WITH RESPECT TO SETTLEMENT FINALITY ............... 322

BY-LAWS AND RESTATED CERTIFICATE OF INCORPORATION ................................. 325

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