(Updates with details from SEC statement)
Nov 16 (Reuters) – The U.S. Securities and Exchange Commission (SEC) on Thursday said it had adopted new rules aimed improving governance at clearing agencies registered with the agency.
The new rules, which are aimed to reducing conflicts of interest and promoting board independence, create new requirements for board composition, independent directors, and certain committees, the SEC said in a statement.
They require that a majority of the board be independent directors, require firms to create risk management committees and demand policies and procedures to identify or eliminate conflicts of interest, among other changes.
Clearing agencies will have two years to comply with new independence requirements for boards and board committees. They will need to meet all the other new requirements of the rules a year after it is published in the federal register. (Reporting by Chris Prentice; Editing by Chris Reese and Jane Merriman)
