On October 26th, the SEC provided notice of the Fixed Income Clearing Corporation's proposal to expand the applicability of the fails charge to Agency debt securities transactions. Specifically, transactions in debentures issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks would be subject to the charge. The proposed fails charge for Agencies will be the same as that currently in place for Treasuries and is equal to the greater of: (a) 0 percent and (b) 3 percent per annum minus the federal funds target rate. The charge will accrue each calendar day that a fail is outstanding. Comments should be submitted within 21 days after publication in the Federal Register, which is expected during the week of October 31. SEC Release No. 34-65632.