SEC Approves Changes to CME Securities Clearing By-Laws and Charters
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The SEC has approved changes to the governance documents of CME Securities Clearing Inc., which involve shifting to a new Board structure and clarifying committee roles. It affects the internal governance procedures of CME Securities Clearing and aims to enhance their efficiency and transparency. Parties involved, including stakeholders and board members, need to familiarize themselves with the adjustments in director elections and committee responsibilities.
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Key Changes
- Board changes to a non-staggered annual term structure
- Clarified committee director composition requirements
- Added oversight of Enterprise Risk Management Framework
Obligations
What this law requires
CME Securities Clearing Inc. must adopt its Amended and Restated By-Laws as a first step in implementing the Governance Framework.
CMESC must ensure that a majority of the Directors serving on the Risk Management Committee are Independent Directors.
The Board of Directors must be composed of a sufficient number of Directors to meet the composition requirements described in the Board Charter, with a majority being Independent Directors.
CMESC must submit an annual review of its Enterprise Risk Management Framework to the Board for approval.
The Nominating Committee shall review and recommend candidates to serve on the Board, including for the initial Board after adoption of the By-Laws.