September 20, 2026 to September 26, 2026

This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for professionals in the financial industry, banking, credit unions, insurance, payment processing, fintech, credit card issuing, asset management, venture capital, private equity, and crypto-currencies. Once a week, we break down the most important updates in this space in under five minutes.

Want to track other GR news in adjacent industries? Don’t miss this week’s updates in ICT & Cybersecurity. Also consider subscribing to our Finance - Ottawa edition covering critical GR news north of the border.

📋 In This Week's Newsletter

• 🇺🇸 Federal Government News
• 📚 What We're Reading This Week

Federal Government News

FDIC Issues Proposed Rule Modernizing Bank Merger Review Under the Bank Merger Act

The Federal Deposit Insurance Corporation released a proposed rule on September 22, 2026, seeking comment on major reforms to its evaluation and processing of merger transactions governed by the Bank Merger Act. The proposal addresses competitive effects by including credit union deposits and centrally booked deposits in market analysis, introduces a fast-tracked approval process for de minimis transactions, and introduces new categories for merger types and significant asset transfers. The FDIC also proposes tailored timelines for reviewing merger filings, sets out a non-objection regime for large asset transfers, and codifies its competitive and financial stability factors. The comment period for the proposal closes on November 23, 2026. The rule would modernize and clarify FDIC procedures in alignment with current market dynamics, including introducing more discipline and transparency in filing processes.

Sources: www.federalregister.gov

OCC Approved to Pay Interest on Clearing Members’ Cash Margin Held at Fed

On September 21, 2026, the Securities and Exchange Commission approved the Options Clearing Corporation’s (OCC) rule change enabling payment of interest on clearing members’ margin cash held at the Federal Reserve Bank. OCC will set the rate at the Federal Reserve’s Interest on Reserve Balances (IORB), less an administrative fee, with payments made monthly. The OCC also amended its rules to deposit customer cash margin at its Federal Reserve account. The rule includes controls for potential Federal Reserve account service charges and administrative fees. OCC expects the change will encourage clearing members to hold more cash margin, improving capital efficiency and liquidity risk management.

Sources: www.federalregister.gov

SEC Extends Information Collection Under Rule 15c3-3 for Broker-Dealers’ Customer Protection

The SEC submitted a request to OMB to extend the information collection for Rule 15c3-3 of the Securities Exchange Act of 1934, governing broker-dealer customer protection requirements. The rule compels brokers holding customer securities to retain possession and perform regular computations for segregation of customer funds, file notices of shortfalls, and provide customer notifications related to futures and security-based swaps. Carrying broker-dealers with certain credit levels must conduct daily reserve computations as of 2024. The estimated annual compliance burden is 1,459,681 hours and $5,076,465, with comments due by October 26, 2026.

Sources: www.federalregister.gov

SEC Extends Recordkeeping Requirement for Investment Company Funds Under Rule 31a-2

On September 25, 2026, the SEC filed for extension of the information collection under Rule 31a-2 of the Investment Company Act, which requires registered investment companies, underwriters, advisers, and brokers to maintain and preserve specified records for set periods. Funds must retain certain documentation permanently and others for six years, supporting regulatory compliance and SEC inspections. The SEC estimates 2,741 funds spend 221 hours annually on this requirement, with total annual costs nearing $135 million. Comments are open until October 26, 2026.

Sources: www.federalregister.gov

Federal Reserve Reviews Proposals for Permissible Nonbanking Activities and Mutual Federal Bancorp Conversion

The Federal Reserve System published notice on September 23, 2026, of proposals for companies to engage in or acquire firms engaged in permissible nonbanking activities under section 10 of the Home Owners’ Loan Act and Regulation LL. Notably, Mutual Federal Bancorp, MHC (Chicago, IL) seeks to convert from mutual to stock form, with Mutual Federal Bank becoming a wholly-owned subsidiary of a newly-formed holding company. Public comments on these proposals are open until October 23, 2026.

Sources: www.federalregister.gov

What We're Reading This Week

• Yields Subside, Stocks Breathe Easier: U.S. equity markets rallied as bond yields eased after recent months of volatility.
• Rising Interest Rates Are Causing Alarm. Here’s What to Know.: Analysis of how higher interest rates affect the economy and borrowing costs.
• Opinion | It’s a Good Time to Buy Bonds: Opinion piece contends current bond market conditions may be attractive for buyers.
• IMF review calls for 'fewer but deeper' reforms in design of loan programs: IMF internal review recommends less frequent but more robust reforms in its lending practices.
• Prosecutors seize bank accounts of Montana firm linked to Tether: Federal authorities seized accounts belonging to a Montana company with ties to stablecoin Tether.
• The Morning Risk Report: Polymarket’s Rush to Grow Left a Door Wide Open for Fraudsters: Risk and compliance report examines fraud vulnerabilities amid rapid growth at prediction market Polymarket.
• Explainer: India's insurance overhaul: What changes and why it matters: Reuters details key elements of India's insurance sector reform and its implications.
• PB Fintech's $3 billion rout leads Indian insurance sector's slump on commission-cap plan: Indian insurance distribution stocks fell sharply following a government plan to cap commissions.
• The Rise of the Almost-Premium Credit Card: New credit card products are emerging between traditional and premium tiers.

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