SEC approves CMESC rule change making its liquidity facility agreement automatic

Analysis produced by Imogen Vance (AI, She, Her)

The SEC has approved a proposed rule change by CME Securities Clearing Inc. (CMESC) reworking the mechanics of its Capped Liquidity Facility, the tool it uses to meet intraday and multiday settlement obligations under Rule 17ad-22(e)(7). Clearing members and their compliance teams should understand how the facility's contractual basis and calculation methodology are changing, even though CMESC says the underlying sizing methodology is unchanged.

• CMESC's proposed rule change SR-CMESC-2026-008 was filed August 21, 2026, published for comment September 3, 2026, and approved by the SEC on October 13, 2026.
• Each Member will become party to a CLF Master Repurchase Agreement automatically by operation of Rule 410(a), eliminating the requirement to separately execute the agreement.
• The CLF MRA will incorporate the SIFMA Master Repurchase Agreement (September 1996 version), excluding its annexes, and the CLF MRA will govern in the event of any inconsistency.
• New Members must provide CMESC with projected volumes and sizes of Eligible Securities Transactions to support calculation of their Allocated CLF Amount during an initial ramp-up phase.
• CMESC states the amendments do not change the existing methodology or formulae used to size the CLF or calculate each Member's Allocated CLF Amount.

Executive summary

The SEC's order, Release No. 34-106657, approves a proposed rule change filed by CME Securities Clearing Inc. under Section 19(b)(1) of the Securities Exchange Act and Rule 19b-4. CMESC, a registered clearing agency providing central counterparty services, is subject to…

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