Stock market volatility and the rise of meme stocks are prompting the SEC to consider tightening oversight of potential conflicts of interest at securities clearing agencies.
The Securities and Exchange Commission’s proposed rules, announced on Aug. 8, aim to enhance governance standards by requiring clearing agencies—intermediary firms that facilitate and settle securities transactions—to identify and snuff out potential conflicts of interest, particularly among their board members and directors.
The SEC’s move, aimed at companies like the National Securities Clearing Corp. and the Depository Trust Co., reflects the regulator’s desire, under Chair Gary Gensler, to work proactively given recent market turbulence, ...
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