[Federal Register: February 3, 2009 (Volume 74, Number 21)]
[Notices]
[Page 5958-5965]
[DOCID:fr03fe09-62]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-59294; File No. SR-OCC-2008-20]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change Relating To Establishing a Market Loan Program

January 23, 2009.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on December 23, 2008, The
Options Clearing Corporation (``OCC'') filed with the Securities and
Exchange Commission (``Commission'') the proposed rule change as
described in Items I and II below, which items have been prepared
primarily by OCC. The Commission is publishing this notice and order to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The proposed rule change would create a framework for OCC to
provide clearing services for stock loan and borrow transactions
effected through electronic trading systems.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. OCC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of such
statements.\2\
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    \2\ The Commission has modified parts of these statements.
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A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    The purpose of this proposed rule change is to revise OCC's By-Laws
and Rules to create a framework (``Market Loan Program'') that can
accommodate securities lending transactions proposed to be executed
through electronic trading systems (``Loan Markets''), such as the
market to be operated by Automated Equity Finance Markets, Inc.
(``AQS''), a wholly-owned subsidiary of Quadriserv, Inc. The
relationship between OCC and AQS will be governed by the Agreement for
Clearing and Settlement Services (``AQS Agreement'') included as
Exhibit 5 to Filing No. SR-OCC-2008-20.
    Securities lending contributes to the overall liquidity and
efficiency of the equity and equity options markets. For options market
participants, securities lending supports market making, arbitrage
trading, and equity financing and assists participants in meeting
deliveries resulting from options exercises and assignments. OCC's
Stock Loan/Hedge Program, which allows approved Clearing Members to
register their privately negotiated securities lending transactions
with OCC, benefits OCC's Clearing Members and the industry by reducing
the cost of credit, increasing operational efficiency, and providing
stability through a central counterparty guarantee. OCC believes that
it is important to keep pace with innovations in the securities lending
markets and therefore proposes to launch the Market Loan Program.
    The bulk of the proposed changes are based on procedures and
protections that OCC has utilized in the operation of the Stock Loan/
Hedge Program, with necessary modifications to account for those
aspects of the Market Loan Program that are different from the Stock
Loan/Hedge Program. OCC intends the provisions of its By-Laws and Rules
governing the Market Loan Program and the provisions governing the
Stock Loan/Hedge Program to be the same substantively except where
differences were clearly intended or where the context requires a
different interpretation. For example, under the Market Loan Program
OCC would create a process by which it will accept anonymously matched
stock loan transactions from a Loan Market and then send instructions
to The Depository Trust Company (``DTC'') to settle the transactions.
In comparison, under the Stock Loan/Hedge Program OCC does not
participate in a stock loan transaction until after two clearing
members have transferred the securities and required collateral between
themselves through the facilities of DTC. See below for a discussion of
such differences.

B. Overview of the Proposed Market Loan Program

    The Loan Market operated by AQS would be the first market supported
by the proposed Market Loan Program. Additional markets that are
operated in a manner similar to the AQS Loan Market could be included
in the Market Loan Program in the future.
    A Loan Market would provide a centralized source for price
discovery and trade matching of stock loan transactions, for example,
by implementing periodic auctions throughout the trading day. In the
case of an auction-based market, participant lenders would provide the
Loan Market with available inventory for auction, and participant
borrowers would ordinarily compete on rebate rates with the lowest rate
earning the trade. Lenders and borrowers would ordinarily be matched
based on the Loan Market's trade-matching algorithm. A Loan Market
could also provide, as does AQS, for submission of privately negotiated
transactions for processing through the Loan Market, including
clearance and settlement through OCC. Such transactions will not be
separately identified to OCC and will be treated by OCC like any other
matched loan transactions submitted by the Loan Market.
    Clearing Members would need to meet certain requirements in order
to be approved for participation in the Market Loan Program. For
example, Clearing Members would need to be active subscribers to a Loan
Market that is supported by the Market Loan Program. Clearing Members
would also be required to set their ``Receiver Authorized Delivery''
(``RAD'') Limits at DTC in respect of transactions with OCC as the
counterparty to the highest limit permitted under DTC rules.\3\ For
tax-related reasons, OCC presently intends to permit only U.S. Clearing
Members to participate in the Market Loan Program, at least initially.
Clearing Members approved for participation in the Market Loan Program
would be referred to as ``Market Loan Clearing Members.'' When
additional markets are included in the Market Loan Program in the
future, a separate designation will be required for a Clearing Member's
participation in each Loan Market.
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    \3\ The RAD Limit is a risk control mechanism which allows the
DTC participant to set individual dollar limits against each contra
participant so that deliveries with a settlement value exceeding the
specified limit are not processed until the participant has reviewed
and approved them. Clearing Members participating in the Market Loan
Program are expected to comply with the requirement of setting their
RAD Limits against OCC to the highest level permissible under DTC
rules. However, DTC will not be asked to monitor or enforce this
requirement.
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    The Loan Market would submit matched loan transactions to OCC for
clearance and settlement. OCC would then conduct routine validation
processes before passing electronic instructions to DTC to move
securities and cash between the Market Loan Clearing Members' accounts
at DTC. Because a Loan Market may, as does AQS, match lenders and
borrowers on an anonymous basis, OCC and DTC would establish an account
structure involving the transfer of securities and cash between the
lender and the borrower through a DTC account owned by OCC (``OCC
Account''), thereby permitting stock loan transactions originated
through a Loan Market to be settled in a manner that preserves
anonymity to both the lender and borrower.
    Because OCC would substitute itself as the counterparty to all such
DTC transactions, it is essential to OCC, from a risk management
perspective, that there would never be a net settlement obligation
against the OCC Account at the end of any day (i.e., OCC's obligations
with respect to all completed DTC transactions to which the OCC Account
was a party should net to zero both with respect to securities and
cash). Avoidance of any net settlement obligation is essential both
because OCC has no mechanism for funding such settlement obligations
and for other operational reasons. In order to provide reasonable
assurance that OCC will have no net settlement obligations, DTC will
implement procedures intended to ensure that if one side of a loan
transaction does not settle, the other side will be blocked as well. In
addition, under current DTC rules, a

DTC participant can return a delivery of securities (``Reclaim'') to
the original delivering party. DTC will block Reclaims against the OCC
Account in order to prevent such Reclaims from resulting in a net
settlement obligation in that account.\4\
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    \4\ DTC filed a proposed rule change (File No. SR-DTC-2008-15)
with the Commission to describe proposed changes in its rules for
purposes of supporting the Market Loan Program that is being
approved simultaneously with this proposed rule change.
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    Upon receiving the end of the day stock loan activity file from DTC
showing settled stock loans (i.e., transfer of the loaned securities
against the specified collateral) originated through a Loan Market, OCC
would perform additional validation processes to confirm that the
transactions match the instructions given by OCC before affirmatively
accepting settled stock loans and substituting itself as counterparty
to these transactions (such accepted stock loan transactions are
defined as ``Market Loans''). Upon OCC's acceptance of a Market Loan,
the lending Market Loan Clearing Member would be a ``Lending Clearing
Member'' and the borrowing Market Loan Clearing Member would be a
``Borrowing Clearing Member'' in respect of that Market Loan for all
purposes of the By-Laws and Rules. Any stock loan transactions
identified as originated through a Loan Market that are not ultimately
confirmed and accepted by OCC would be rejected by OCC.
    Upon acceptance of a Market Loan, OCC would create the stock loan
position in the designated account of the Lending Clearing Member and
the stock borrow position in the designated account of the Borrowing
Clearing Member. Positions resulting from Market Loans would be
maintained in the same manner as positions resulting from stock loans
accepted by OCC under the Stock Loan/Hedge program (the latter are
defined as ``Hedge Loans'' in the By-Laws and Rules \5\). However,
positions resulting from Market Loans would be separately identified
from, and would not be fungible with, positions resulting from Hedge
Loans.
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    \5\ OCC proposes to introduce the term ``Hedge Loan'' to refer
to stock loans accepted by OCC under the Stock Loan/Hedge Program.
OCC proposes to amend the term ``Stock Loan'' to mean either a
``Hedge Loan'' or a ``Market Loan'' or both as the context requires.
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    As with stock borrow or stock loan positions resulting from Hedge
Loans, OCC would guarantee the daily mark-to-market payments generated
by the open positions resulting from Market Loans. In addition, OCC
would also provide a limited guaranty of payments in lieu of cash
dividends and distributions (``dividend equivalent payments'') and
stock loan rebates, in each case limited to the amount for which the
Corporation has collected margins from the responsible Market Loan
Clearing Member(s) prior to the payment date. The amount of these
payments would be calculated by the relevant Loan Market, and OCC would
effect the payments only as instructed by the Loan Market. OCC would
have no responsibility to verify the accuracy of the Loan Market's
calculations and would not be liable to Clearing Members for any errors
in such calculations. A Market Loan Clearing Member would be required
to maintain margin with the Corporation in respect of any scheduled
dividend equivalent payments and accrued rebate payments that such
Clearing Member is obligated to make.
    Termination of a Market Loan, in whole or in part, could be
initiated by the Lending Clearing Member calling for the return of the
loaned securities (a ``recall''), or by the Borrowing Clearing Member
indicating its intention to return the loaned securities (a
``return''). The Loan Market would assign (randomly or by some other
method) the recall to a participant who borrowed the same securities or
the return to a participant who lent the same securities. Recalls/
returns would be submitted to OCC and would be processed by OCC in the
same manner as new stock loan transactions except that (i) the Loan
Market would distinguish recalls/returns from new stock loan
transactions; and (ii) if a recall/return were not settled by DTC and
confirmed by OCC after a specified period of time, the Loan Market
would instruct an independent broker to initiate the ``buy-in'' or
``sell-out'' process (described in more detail in Part C below), as
applicable, in order to complete such recall/return.
    A Loan Market would have the authority to direct OCC to terminate
all or a portion of the outstanding Market Loans carried in the
account(s) of a Clearing Member that were originated through that Loan
Market. In addition, OCC would have the authority under Rule 305(a) to
require a Clearing Member to reduce or eliminate stock loan or stock
borrow positions, including positions resulting from Market Loans, upon
a determination that circumstances warrant such action. In either case,
OCC would give written notice to all affected Clearing Members
specifying the date on which such termination would become effective.
If any such termination were not settled by the specified time, the
relevant Loan Market would instruct an independent broker to initiate
the ``buy-in'' or ``sell-out'' process, as applicable, in order to
complete the termination. Any such buy-in or sell-out would be for the
account and liability of OCC, which would in turn have rights against
the defaulting Market Loan Clearing Member.
    In the event that OCC, a Loan Market, or DTC suspends a Market Loan
Clearing Member, OCC would not accept any settled stock loan
transaction to which the suspended Clearing Member is a party as a
Market Loan after the time at which the Clearing Member was suspended.
Finally, OCC would take action under proposed Rule 2211A and Chapter XI
of the rules to close out the open stock loan and stock borrow
positions carried in the suspended Clearing Member's account(s), using
the ``buy-in'' or ``sell-out'' process or exercising setoff rights as
appropriate. Temporary hedging transactions would also be permitted
under the Chapter XI rules.
    If a Market Loan Clearing Member were to believe that a Market Loan
was executed on such Clearing Member's behalf in error or that a
material term of the loan was erroneous, the Clearing Member would
contact the relevant Loan Market to seek correction. Every
determination as to whether a Market Loan was entered into in error
would be within the sole discretion of the relevant Loan Market and
would not be subject to review by OCC. OCC would have no liability to
Clearing Members for any action taken, or any delay or failure to take
any action, in reasonable reliance on information that OCC receives
from a Loan Market or DTC.

C. Proposed Changes to the By-Laws and Rules

    In order to provide clearing services for Market Loans, OCC
proposes to (i) add a new Article XXIA to the By-Laws and a new Chapter
XXIIA to the Rules that would govern the clearance of Market Loans,
(ii) introduce new terms and amend the definitions of existing terms,
and (iii) amend a few other provisions of the By-Laws and Rules in
connection with the introduction of Market Loans.
Changes in Terminology--Article I, Section 1; Article XXI, Section 1;
Article XXIA, Section 1
    In Article I, Section 1, OCC proposes to introduce the terms
``Hedge Loan,'' ``Loan Market,'' ``Market Loan,'' ``Market Loan
Clearing Member'' and ``Market Loan Program.'' The definition of
``Eligible Stock'' would be amended so that it will be applicable to
the Market Loan Program. OCC also proposes to amend the term ``Stock
Loan'' to refer to

a Hedge Loan or a Market Loan or both, as the context requires, except
that the term ``Stock Loan'' is redefined in Article XXI of the By-Laws
so that, as used there and in Chapter XXII of the Rules, the term
refers only to ``Hedge Loans'' and not to ``Market Loans.''
    The terms ``Borrowing Clearing Member'' and ``Lending Clearing
Member'' are amended to encompass Market Loan Clearing Members that
borrow or lend Eligible Stocks in Market Loans. The terms ``stock
borrow position,'' and ``stock loan position'' will, where appropriate,
apply to positions resulting from Market Loans without amendment.
    In Article XXIA, Section 1, OCC proposes to introduce the terms
``dividend equivalent payment,'' ``recall'' and ``return.'' The terms
``Collateral,'' ``Loaned Stock,'' ``mark-to-market payment'' and
``settlement price,'' which are defined in Article XXI in the context
of the Stock Loan/Hedge Program, would be redefined in Article XXIA to
reflect their specific application in the context of a Market Loan.
Finally, OCC proposes to introduce the term ``rebate,'' which refers to
a periodic payment payable by the Lending Clearing Member or the
Borrowing Clearing Member (depending on whether the rebate rate is
positive or negative) in respect of a Market Loan.
Article XXI, Section 5
    Paragraph (b) of Section 5 is being deleted to eliminate the
existing requirement that a Clearing Member represent that the Loaned
Stock does not constitute customer fully paid or excess margin
securities. The Commission's Rule 15c3-3 requires a broker-dealer to
maintain possession and control of customer fully-paid and excess
margin securities. Paragraph (b)(3) of Rule 15c3-3 sets forth
conditions (which include customer consent, provision of specified
collateral to the customer, etc.) under which a broker-dealer may
borrow fully paid or excess margin securities from customers for its
own use without violating the rule's possession or control requirement.
The deletion of paragraph (b) will maintain consistency between the
existing Stock/Loan Hedge rules and the Market Loan rules, where no
such representation is proposed to be required. Rules 2202(e) and
2202A(f) require Clearing Members to represent that each stock loan is
in compliance with Rule 15c3-3 and other customer protection rules, and
OCC believes that this representation is sufficient without further
specificity.
Qualifications for Designation as a Market Loan Clearing Member--
Article V, Section 1
    Interpretation .03(e) of Article V, Section 1 would be amended to
clarify that a Clearing Member must be approved as a Market Loan
Clearing Member before it can participate in the Market Loan Program.
OCC proposes to add a new interpretation .06A which will set out the
conditions that a Clearing Member must meet in order to be approved as
a Market Loan Clearing Member.
OCC's Role With Respect to Market Loans--Article XXIA, Section 2
    Upon acceptance of a Market Loan, OCC's role with respect to such
Market Loan would be that of a principal and OCC would have the
position of borrower to the Lending Clearing Member and the position of
lender to the Borrowing Clearing Member. All rights and/or obligations
of a Clearing Member in respect of a Market Loan would be against OCC,
including the right and/or obligation to receive or make mark-to-market
payments, dividend equivalent payments, and rebate payments and to
deliver or receive the Loaned Stock or Collateral.
Agreement of the Borrowing Clearing Member and the Lending Clearing
Member in Respect of Market Loans--Article XXIA, Sections 3 and 4
    Under Section 3, the Borrowing Clearing Member would represent that
it would fulfill its obligations to OCC in respect of a Market Loan,
including making required margin deposits, mark-to-market payments,
dividend equivalent payments, rebate payments (in the case of a
negative rebate), and delivering the Loaned Stock against Collateral
upon the termination of the Market Loan, all in accordance with the By-
Laws and Rules. The Lending Clearing Member would make reciprocal
representations under Section 4.
Maintaining Stock Loan and Stock Borrow Positions Resulting From Market
Loans in Accounts--Article XXIA, Section 5; Rule 2201A
    Under Article XXIA, Section 5, upon the acceptance of a Market
Loan, OCC would create the stock loan position in the Lending Clearing
Member's designated account and the stock borrow position in the
Borrowing Clearing Member's designated account. OCC would aggregate,
separately for Market Loans effected through each Loan Market, all
stock loan positions and stock borrow positions of a Clearing Member
resulting from such Market Loans relating to the same Eligible Stock
for position reporting purposes and would also net all such stock loan
positions against such stock borrow positions for purposes of
determining the Clearing Member's margin obligations to OCC (referring
to the margin that a Clearing Member would be required to be deposited
with OCC to cover OCC's risk that the market might move against a stock
loan position or a stock borrow position on any day and that the
Clearing Member might fail before making the required mark-to-market
payment to OCC on the next business day). Positions resulting from
Market Loans would be maintained in Clearing Members' accounts in the
same manner as positions resulting from Hedge Loans. However, OCC would
separately identify stock loan and stock borrow positions resulting
from Market Loans, and would not deem such positions to be fungible
with positions resulting from Hedge Loans.
    Rule 2201A would require each Market Loan Clearing Member to give
OCC standing instructions in respect of Market Loans similar to the way
in which Rule 2201 requires a Clearing Member participating in the
Stock Loan/Hedge Program to give standing instructions in respect of
Hedge Loans, the differences being that Rule 2201A: (i) Would not
include any references to margin-ineligible accounts because all
positions resulting from Market Loans would be carried on a fully
margined basis \6\, (ii) would not require a Market Loan Clearing
Member to specify the Collateral requirement that will be applicable to
its stock loan positions because such requirement will be specified by
the relevant Loan Market when it submits the matched trades to OCC, and
(iii) would not include any references to stock loan baskets or stock
borrow baskets because such concepts will not apply to positions
resulting from Market Loans.
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    \6\ The Commission has approved in a separate rule change OCC's
proposal to eliminate Clearing Members' ability to carry stock loan
and stock borrow positions on a margin-eligible basis. However, the
proposal will not be fully implemented until February 1, 2009. See
Securities Exchange Act Release 58901 (December 1, 2008).
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Initiation of Market Loans--Rule 2202A
    As described in Part B above, a Market Loan would be initiated when
the Loan Market submits a matched trade to OCC. If the matched trade
passes OCC's validation processes, OCC would instruct DTC to effect the
transfer of Eligible Stock against Collateral between the accounts of
two Market Loan Clearing Members, provided that such transfers would
flow through

OCC's account at DTC in order to maintain anonymity between the lender
and borrower.
    Only those settled stock loan transactions that are affirmatively
accepted by OCC following receipt of the end-of-day stock loan activity
file from DTC and OCC's validation processes would be deemed Market
Loans. OCC would substitute itself as counterparty to the Borrowing
Clearing Member and the Lending Clearing Member, respectively, in
respect of each Market Loan. Any stock loan transactions purported to
have originated through a Loan Market that are not accepted by OCC
would be rejected by OCC and would have no further effect as regards
OCC.
    Paragraphs (d) and (e) of Rule 2202A would clarify the Lending
Clearing Member's rights and obligations with respect to the Collateral
posted and the Borrowing Clearing Member's rights and obligations with
respect to the Loaned Stock. Under paragraph (f), a Market Loan
Clearing Member would be required to represent to OCC that the Clearing
Member's participation in each Market Loan is in compliance, and will
continue to comply, with all applicable laws and regulations.
Margin Deposited With OCC in Respect of Market Loans--Rule 2203A
    As mentioned in the description of proposed Article XXIA, Section 5
above, a Market Loan Clearing Member would be required to meet its
margin obligations to OCC with respect to its stock loan and stock
borrow positions resulting from Market Loans. Rule 2203A would
reiterate this obligation and clarify that margin calculation shall be
determined pursuant to Rule 601.
Mark-to-Market Payments in Respect of Market Loans--Rule 2204A
    Rule 2204A would govern the calculation and payment of mark-to-
market payments in respect of Market Loans. Using the same calculation
method and collection/payment procedures that OCC practices with
respect to Stock Loans, OCC would calculate on a daily basis the net
amount owed by or to each Market Loan Clearing Member in respect of
stock loan and stock borrow positions resulting from Market Loans
carried in a Clearing Member's accounts and collect such net amount
from, or deposit such net amount to, as applicable, the Clearing
Member's designated bank account.
Daily Reports--Rule 2205A
    As mentioned in the description of proposed Article XXIA, Section 5
above, OCC would aggregate, separately for Market Loans effected
through each Loan Market, all stock loan positions and stock borrow
positions of a Clearing Member resulting from such Market Loans
relating to the same Eligible Stock for position reporting purposes.
Pursuant to Rule 2205A, OCC would make these position reports available
to each Market Loan Clearing Member on a daily basis.
Dividends, Distributions and Rebates in Respect of Market Loans--Rule
2206A
    Paragraph (a) of Rule 2206A would clarify that a Lending Clearing
Member will be entitled to receive all dividends and distributions made
in respect of Loaned Stock on the record dates that occur during the
term of a Market Loan and the Borrowing Clearing Member will be
obligated to pay or deliver all such dividends and distributions.
Because a Market Loan Clearing Member generally would not know the
identity of the counterparty to a Market Loan, the Loan Market and OCC
would facilitate the payment of dividend equivalents between Market
Loan Clearing Members. The Loan Market would be solely responsible for
calculating the dividend equivalent amounts that each Market Loan
Clearing Member is entitled to receive or obligated to pay. On the
expected payment date, OCC would guarantee and effect such payments
between Market Loan Clearing Members as instructed by the Loan Market,
in each instance up to the amount for which the Corporation has
collected margins from the responsible Market Loan Clearing Member(s)
prior to the expected payment date. However, OCC would not be
responsible for any errors in the Loan Market's calculations or
instructions.
    OCC would add non-cash dividends and distributions to the Loaned
Stock and transfer them to the Lending Clearing Member upon termination
of the Market Loan if OCC determines in its sole discretion that such
transfer is legally permissible and can be made through DTC. The Loan
Market could also determine to fix a cash settlement value with respect
to any non-cash dividends and/or distributions that are not added to
the Loaned Stock, in which case the Loan Market would instruct OCC to
effect collection and payment of such cash settlement. With respect to
any other non-cash dividend or distribution, the Lending Clearing
Member would receive the benefit of the dividend or distribution only
if it recalls the Loaned Stock in time to receive such dividend or
distribution directly.
    Paragraph (b) of Rule 2206A would govern the periodic payments of
rebates to Market Loan Clearing Members. As in the case of dividend
equivalent payments, the Loan Market would be solely responsible for
calculating the amount of rebate payments that each Market Loan
Clearing Member is entitled to receive or obligated to pay. On the
specified settlement date, OCC would guarantee and effect such payments
and collections as instructed by the Loan Market, in each instance up
to the amount for which the Corporation has collected margin from the
responsible Market Loan Clearing Member(s) prior to the specified
settlement date. Again, OCC would not be responsible for any errors in
the Loan Market's calculations or instructions. Rebate payments would
be paid on at least a monthly basis. If a Market Loan Clearing Member
were to be suspended, OCC would have the discretion to accelerate
settlement of accrued rebate payments with respect to such suspended
Clearing Member.
Correction of Erroneous Market Loans--Rule 2207A
    If a Market Loan Clearing Member were to believe that a Market Loan
was executed on such Clearing Member's behalf in error or that a
material term of the loan was erroneous, the remedy available to the
Clearing Member would be to contact the relevant Loan Market to request
correction. The decision to void a Market Loan would be in the Loan
Market's sole discretion and would not be subject to review by OCC.
Furthermore, interpretation .01 to Rule 2207A would clarify that in
carrying out OCC's role with respect to Market Loans, OCC would be
entitled to rely on information provided by a Loan Market or DTC and
would not be liable to Clearing Members for any actions taken in
reliance of such information.
Indemnification by Borrowing Clearing Member--Rule 2208A
    Rule 2208A would require a Borrowing Clearing Member in respect of
a Market Loan to indemnify, defend, and hold harmless OCC from any
consequences resulting from the Borrowing Clearing Member's use of the
Loaned Stock.
Termination of Market Loans--Rule 2209A
    Rule 2209A would govern the different ways that a Market Loan may
be terminated. In the case of a recall or a return that is the subject
of paragraph (a) of Rule 2209A, the transaction would be submitted by
the Loan Market to OCC and would be processed by OCC in basically the
same manner as a new stock loan transaction. The Loan Market

would distinguish a recall/return from a new stock loan transaction so
that upon OCC's confirmation that a recall/return was settled by DTC,
OCC would extinguish the corresponding stock loan and stock borrow
positions instead of creating new positions on its books.
    If a recall fails to settle because the Borrowing Clearing Member
fails to return the Loaned Stock within the timeframe specified in Rule
2209A, the relevant Loan Market would instruct an independent broker to
initiate the ``buy-in'' process on the morning of the following stock
loan business day. The broker would be instructed to purchase the
Loaned Stock in a commercially reasonable manner as promptly as
practicable (and in any event, at or prior to the time when a buy-in
would be required under applicable regulatory requirements). The buy-in
would be for OCC's account and liability because of OCC's role as the
principal to each Market Loan.
    The buy-in procedures are intended to facilitate compliance by the
Clearing Member with buy-in requirements under applicable rules of the
Commission and self-regulatory organizations, including the
requirements imposed by Regulation SHO. The ultimate responsibility for
compliance with Regulation SHO rests with the Clearing Member, and OCC
would not be liable for any Clearing Member's failure to comply with
its obligations.
    The bought-in Loaned Stock would ultimately be delivered to the
Lending Clearing Member's account at DTC in exchange for the
Collateral. Any difference between (i) the amount of the Collateral and
(ii) the price paid on the buy-in plus any other costs, fees or
interest incurred by the broker in connection with such buy-in and any
penalties or charges that the Loan Market may assess against the
Borrowing Clearing Member would be credited to or debited from the
Borrowing Clearing Member's designated bank account.
    If a return fails to settle because the Lending Clearing Member
fails to return the Collateral within the timeframe specified in Rule
2209A, the relevant Loan Market would instruct an independent broker to
initiate the ``sell-out'' process on the morning of the following stock
loan business day. The sell-out process is essentially the inverse of
the buy-in process. The broker would be instructed to sell the Loaned
Stock for OCC's account and liability. The sale proceeds would
ultimately be delivered to the Borrowing Clearing Member's account at
DTC against delivery of the Loaned Stock. Any difference between (i)
the sale proceeds and (ii) the amount of the Collateral plus any other
costs, fees or interest incurred by the broker in connection with such
sell-out, and any penalties or charges that the Loan Market may assess
against the Lending Clearing Member would be credited to or collected
from the Lending Clearing Member's designated bank account.
    Paragraph (c) of Rule 2009A would provide that OCC would have the
authority to terminate Market Loans in circumstances where a Loan
Market so directs OCC or where OCC deems such action warranted. In
either case, OCC would give written notice to all affected Clearing
Members specifying the date on which such termination would become
effective. As with a recall or a return, if a Market Loan termination
initiated by a Loan Market or OCC fails to settle by the specified time
set forth in paragraph (c), the relevant Loan Market would instruct an
independent broker to initiate the ``buy-in'' or ``sell-out'' process,
as applicable, in order to complete the termination.
Suspension of Market Loan Clearing Members--Rule 2210A and 2211A
    Under Rule 2210A, OCC would not accept any stock loans to which the
suspended Clearing Member is a party as a Market Loan after the time at
which the Clearing Member was suspended, and would instruct DTC to
unwind any such transaction. Open stock loan and stock borrows
positions of the suspended Clearing Member would be liquidated in
accordance with Rule 2211A by an independent broker designated by OCC
for such purposes.
Collection of Fees and Charges on Behalf of a Loan Market--Rule 209
    OCC proposes to amend paragraph (b) of Rule 209 so that OCC would
have the authority to withdraw from a Market Clearing Member's bank
account the amount of any fees or charges that the Clearing Member owes
to a Loan Market.
Certain Conforming Changes in the By-Laws and Rules--Article XXI,
Section 2 and 5; Rule 1103, 2201, 2202, 2204, 2205 and 2210
    Sections 2 and 5 of Article XXI of the By-Laws and Rule 1103, 2201,
2202, 2204, 2205 and 2210 would be amended to conform to the new Market
Loan rules as appropriate.

D. Summary of Certain Provisions of the AQS Agreement

    In connection with providing clearing and settlement services to
AQS, OCC will enter into the AQS Agreement, which is similar in form to
clearing agreements that OCC has entered into with futures markets. In
addition to (i) defining each party's obligations in connection with
the clearance and settlement of Market Loans, as discussed in Part B
above, and (ii) identifying aspects of OCC's services that will be
provided in accordance with the provisions of OCC's By-Laws and Rules,
as discussed in Part C above, the AQS Agreement will set forth other
terms and conditions that will govern the parties' relationship,
including the following:

Regulatory Requirements

    AQS will represent that (i) it will have obtained all necessary
registrations, memberships, approvals or other consents that are
required to have been obtained by it from any federal or state
regulatory agencies or any self-regulatory organizations, (ii) it will
have procedures (as amended from time to time, the ``Market
Procedures'') that comply with the provisions of all applicable
regulations and will have filed with the Commission the necessary
information with respect to the Market Procedures, and (iii) it will
have all requisite power and authority, whether arising under
applicable federal or state law or the rules and regulations of any
regulatory or self-regulatory organization to which AQS is subject, to
enter into and perform its obligations under the AQS Agreement. OCC
will make similar representations, and in addition will clarify that
OCC's provision of clearing services in respect of Market Loans will
depend on the Commission's approval of this proposed rule change.
    AQS and OCC will each be required to notify the other party of any
action taken by any regulatory body or agency that, in the judgment of
the relevant party, has or will have a material adverse effect on such
party's performance of its obligations under the AQS Agreement.
Fees for Clearing Services
    OCC will establish fee structures for the services it performs for
Clearing Members consistent with the provisions of its By-Laws. Fees
charged to subscribers of AQS for services performed by OCC under the
AQS Agreement shall not be greater than the fees charged by OCC in
respect of substantially similar services performed for other markets
in connection with Market Loan transactions; provided that OCC may
offer alternative fee structures to such markets so long as it offers
the same alternatives to AQS on substantially the same terms and so
long

as the alternative fee structure provides for the equitable allocation
of reasonable dues, fees, and other charges among Clearing Members.
Indemnification
    AQS will indemnify and hold harmless OCC and each of its directors,
officers, committee members, agents, employees and any person or entity
who controls OCC (as the term ``control'' is defined in Rule 405 of the
Securities Act of 1933, as amended) from and against any and all
losses, damages, liabilities, judgments, claims, expenses and amounts
incurred and/or paid in settlement (collectively referred to as
``Losses'') arising out of or based on (i) any violation or alleged
violation by AQS of any of the terms of the AQS Agreement or (ii) any
violation or alleged violation by AQS of any law (including patent
infringement or other intellectual property law violation) or
governmental regulation. OCC will indemnify and hold harmless AQS and
each of its directors, officers, committee members, agents, employees
and any person or entity who controls the Market from and against any
and all Losses arising out of or based on (i) any violation or alleged
violation by OCC of any of the terms of the AQS Agreement, (ii) any
alleged default by OCC in performing its obligations in accordance with
its By-Laws and Rules in respect of any Market Loans it has accepted
for clearing, or (iii) any violation or alleged violation by OCC of any
law (including patent infringement or other intellectual property law
violation) or governmental regulation. The indemnifications provided by
each party will include indemnification against any Losses arising out
of or based on any allegation that any termination of a Market Loan
transaction initiated by the indemnifying party was wrongful.
Term and Termination
    The AQS Agreement may be terminated (i) by either party at any time
upon giving a specified number of days' prior written notice to the
other party, (ii) by a party upon giving notice to the other party if
the other party has breached in any material respect the provisions of
the AQS Agreement, or (iii) by OCC upon giving notice to AQS if, among
other grounds, AQS has ceased to effect stock loan transactions or
OCC's By-Laws or Rules have ceased to be in effect in a material
respect. From the time that any notice of termination is given or any
event of termination occurs until such time as all stock loan and
borrow positions resulting from Market Loans have been closed or
transferred to an alternative clearing organization, OCC and AQS will
continue to provide all services and perform all of their respective
obligations under the AQS Agreement and OCC's By-Laws and Rules to the
extent necessary or appropriate to service open stock loan and borrow
positions. Finally, in the event of a voluntary termination of the AQS
Agreement, OCC will use reasonable efforts to effect transfer of the
open positions to AQS's successor clearing organization subject to
reasonable agreements with such successor clearing organization, AQS
and/or Clearing Members whose positions are being transferred, as
appropriate, that protect the interests of OCC.
Dispute Resolution
    If a dispute arises between AQS and OCC relating to the clearing
services in respect of Market Loans, the AQS Agreement will provide
that senior officers of AQS and OCC will endeavor in good faith to
resolve the dispute and to mitigate its deleterious effects and will
confer with each other to those ends.
Certain Loan Market Obligations
    Schedule B of the AQS Agreement sets forth certain specific
services that the Loan Market is required to perform to facilitate the
performance by OCC of its obligations under its By-Laws and Rules. With
respect to such obligations, the AQS Agreement provides that the Loan
Market will be bound by the provisions of OCC's By-Laws and Rules to
the extent that they impose obligations on the Market.
    The proposed changes to OCC's Rules are consistent with the
purposes and requirements of Section 17A of the Act because they are
designed to promote the prompt and accurate clearance and settlement of
stock loan transactions executed on an electronic marketplace, and to
foster cooperation and coordination with persons engaged in the
clearance and settlement of such transactions, to remove impediments to
and perfect the mechanism of a national system for the prompt and
accurate clearance and settlement of such transactions, and, in
general, to protect investors and the public interest. The proposed
rule change accomplishes these purposes by expanding the number of
securities lending transactions that will be cleared and settled by
OCC, which, in turn, benefits OCC's Clearing Members and the industry
by reducing the cost of credit, increasing operational efficiency, and
providing stability through a central counterparty guarantee by
applying many of the same rules and procedures to these transactions as
OCC applies to the Hedge Loan transactions. The proposed rule change is
not inconsistent with the existing rules of OCC, including any rules
proposed to be amended.

B. Self-Regulatory Organization's Statement on Burden on Competition

    OCC does not believe that the proposed rule change would impose any
burden on competition.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    The Commission finds that the proposed rule change is consistent
with the requirements of the Act and the rules and regulations
thereunder and particularly with the requirements of Section
17A(b)(3)(F).\7\ Section 17A(b)(3)(F) requires, among other things,
that the rules of a clearing agency be designed to remove impediments
to and perfect the mechanism for a national system for the prompt and
accurate clearance and settlement of securities transactions and to
assure the safeguarding of securities and funds which are in the
custody or control of the clearing agency or for which it is
responsible. The proposed rule change is consistent with these
requirements because while it allows OCC to expand its existing Stock
Loan/Hedge Program to accommodate securities lending transactions
executed through electronic trading systems, it addresses the
differences between the Stock Loan/Hedge Program and the new Market
Loan program by amending several provisions of OCC's Rules and entering
into the AQS Agreement, both of which are designed to assure that OCC
and its members comply with Commission rules and to reduce the risk of
operational disruption or financial loss to OCC or to its members.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    OCC has requested that the Commission approve this rule change
prior to the thirtieth day after the date of publication of notice of
the filing. The Commission finds good cause for approving the proposed
rule change prior to the thirtieth day after publication of notice
because by so approving, OCC may begin providing

clearing services for stock loan and borrow transactions effected
through the AQS Loan Market in time for its anticipated launch date of
January 31, 2008.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2008-20 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-OCC-2008-20. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549, on official business days between the hours
of 10 a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of OCC and on OCC's Web
site at http://www.theocc.com/publications/rules/proposed_changes/sr_
occ_08_20.pdf. All comments received will be posted without change;
the Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-OCC-
2008-20 and should be submitted on or before February 24, 2009.

V. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular with the requirements of Section 17A of the Act and the
rules and regulations thereunder applicable.\8\
---------------------------------------------------------------------------

    \8\ In approving the proposed rule changes, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule change (File No. SR-OCC-2008-20) be, and hereby
is, approved.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\9\
---------------------------------------------------------------------------

    \9\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-2204 Filed 2-2-09; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 84, Number 187 (Thursday, September 26, 2019)]
[Notices]
[Pages 50826-50827]
[FR Doc No: 2019-20947]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2006-0525; FRL-9998-35-OMS]

Information Collection Request Submitted to OMB for Review and
Approval; Comment Request; Registration of Fuels and Fuel Additives:
Health-Effects Research Requirements for Manufacturers (Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) has submitted an
information collection request (ICR), Registration of Fuels and Fuel
Additives: Health-Effects Research Requirements for Manufacturers (EPA
ICR Number 1696.10, OMB Control Number 2060-0297) to the Office of
Management and Budget (OMB) for review and approval in accordance with
the Paperwork Reduction Act. This is a proposed extension of the ICR,
which is currently approved through November 30, 2019. Public comments
were previously requested via the Federal Register on May 21, 2019
during a 60-day comment period. This notice allows for an additional 30
days for public comments. A fuller description of the ICR is given
below, including its estimated burden and cost to the public. An agency
may not conduct or sponsor and a person is not required to respond to a
collection of information unless it displays a currently valid OMB
control number.

DATES: Additional comments may be submitted on or before October 28,
2019.

ADDRESSES: Submit your comments, referencing Docket ID Number EPA-HQ-
OAR-2006-0525, to (1) EPA online using www.regulations.gov (our
preferred method), by email to<EMAIL_ADDRESS>or by mail to:
EPA Docket Center, Environmental Protection Agency, Mail Code 28221T,
1200 Pennsylvania Ave. NW, Washington, DC 20460, and (2) OMB via email
to<EMAIL_ADDRESS>Address comments to OMB Desk Officer
for EPA.
    EPA's policy is that all comments received will be included in the
public docket without change including any personal information
provided, unless the comment includes profanity, threats, information
claimed to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute.

FOR FURTHER INFORMATION CONTACT: James W. Caldwell, Compliance
Division, Office of Transportation and Air Quality, Mail Code: 6406J,
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington,
DC 20460; telephone number:<PHONE_NUMBER>; fax number:<PHONE_NUMBER>;
email address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Supporting documents, which explain in
detail the information that the EPA will be collecting, are available
in the public docket for this ICR. The docket can be viewed online at
www.regulations.gov or in person at the EPA Docket Center, WJC West,
Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone
number for the Docket Center is<PHONE_NUMBER>. For additional
information about EPA's public docket, visit http://www.epa.gov/dockets.
    Abstract: In accordance with the regulations at 40 CFR 79, Subparts
A, B, C, and D, Registration of Fuels and Fuel Additives, manufacturers
(including importers) of motor-vehicle gasoline, motor-vehicle diesel
fuel, and additives for those fuels, are required to have these
products registered by the EPA prior to their introduction into
commerce. Registration involves providing a chemical description of the
fuel or additive, and certain technical, marketing, and health-effects
information. The development of health-effects data, as required by 40
CFR 79, Subpart F, is the subject of this ICR. The health-effects data
will be used to determine if there are any products which have
evaporative or combustion emissions that may pose an unreasonable risk
to public health, thus meriting further investigation and potential
regulation. This information is required for specific groups of fuels
and additives as defined in the regulations.
    Manufacturers may perform the research independently or may join
with other manufacturers to share in the costs for each applicable
group. Several research consortiums (groups of manufacturers) have been
formed. The largest consortium, organized by the American Petroleum
Institute (API), represents most of the manufacturers of baseline
gasoline, baseline diesel fuel, baseline fuel additives, and the
prominent non-baseline oxygenated additives for gasoline. The research
is structured into three tiers of requirements for each group. Tier 1
requires an emissions characterization and a literature search for
information on the health effects of those emissions. Voluminous Tier 1
data for gasoline and diesel fuel were submitted by API and others in
1997. Tier 1 data have been submitted for biodiesel, water/diesel
emulsions, several atypical additives, and renewable gasoline and
diesel fuels. Tier 2 requires short-term inhalation exposures of
laboratory animals to emissions to screen for adverse health effects.
Tier 2 data have been submitted for baseline diesel, biodiesel, and
water/diesel emulsions. Alternative Tier 2 testing can be required in
lieu of standard Tier 2 testing if EPA concludes that such testing
would be more appropriate. EPA reached that conclusion with respect to
gasoline and gasoline-oxygenate blends, and alternative requirements
were established for the API consortium for baseline gasoline and six
gasoline-oxygenate blends. Alternative Tier 2

requirements have also been established for the manganese additive MMT
manufactured by the Afton Chemical Corporation (formerly the Ethyl
Corporation). Tier 3 provides for follow-up research, at EPA's
discretion, when remaining uncertainties as to the significance of
observed health effects, welfare effects, and/or emissions exposures
from a fuel or fuel/additive mixture interfere with EPA's ability to
make reasonable estimates of the potential risks posed by emissions
from a fuel or additive. To date, EPA has not imposed any Tier 3
requirements. Under regulations promulgated pursuant to Section 211 of
the Clean Air Act, (1) submission of the health-effects information is
necessary for a manufacturer to obtain registration of a motor-vehicle
gasoline, diesel fuel, or fuel additive, and thus be allowed to
introduce that product into commerce, and (2) the information shall not
be considered confidential.
    Form Numbers: None.
    Respondents/affected entities: Manufacturers of motor-vehicle
gasoline, motor-vehicle diesel fuel, and additives for those fuels.
    Respondent's obligation to respond: Mandatory per 40 CFR 79,
subpart F.
    Estimated number of respondents: 2.
    Frequency of response: On occasion.
    Total estimated burden: 35,200 hours per year. Burden is defined at
5 CFR 1320.03(b).
    Total estimated cost: $3,697,000 per year, includes $597,000
annualized capital or operation & maintenance costs.
    Changes in the Estimates: There is an increase of 17,600 hours in
the total estimated respondent burden compared with the ICR currently
approved by OMB. This increase is based on input from an industry
representative who stated that their actual literature review and Tier
2/Alternative Tier 2 costs were double the EPA estimate.

Courtney Kerwin,
Director, Regulatory Support Division.
[FR Doc. 2019-20947 Filed 9-25-19; 8:45 am]
 BILLING CODE 6560-50-P


[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Notices]
[Pages 4683-4685]
[FR Doc No: 2014-01679]

-----------------------------------------------------------------------

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings 2

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC14-43-000.
    Applicants: Wolverine Power Supply Cooperative, Inc.
    Description: Application for Authorization for Disposition of
Jurisdictional Facilities Pursuant to Federal Power Act Section 203,
and Request for Expedited Treatment and Limited Waivers of Wolverine
Power Supply Cooperative, Inc.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5176.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: EC14-44-000.
    Applicants: Longview Power, LLC.
    Description: Application under Section 203 of Longview Power, LLC.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5266.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: EC14-45-000.
    Applicants: Verso Bucksport Power LLC, Hydro-Quebec.
    Description: Application For Authorization Pursuant to Section 203
of the Federal Power Act and Requests for Confidential Treatment,
Expedited Consideration and Waivers of Verso Bucksport Power LLC, et.
al.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5271.
    Comments Due: 5 p.m. ET 2/7/14.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER11-2211-003; ER11-2209-003; ER11-2210-003; ER11-
2207-003; ER11-2206-003; ER10-3244-002; ER11-2843-002; ER13-1586-001;
ER10-1992-007.
    Applicants: Alta Wind I, LLC, Alta Wind II, LLC, Alta Wind III,
LLC, Alta Wind IV, LLC, Alta Wind V, LLC, Alta Wind X, LLC, Alta Wind
XI, LLC, Coso Geothermal Power Holdings, LLC, Oak Creek Wind Power,
LLC, TGP Energy Management, LLC, Victory Garden Phase IV, LLC.
    Description: Notice of Non-Material Change in Status of Alta Wind
I, LLC, et. al.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5300.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER13-2490-003.
    Applicants: Simon Solar Farm, LLC.
    Description: Name Change/Correction--Supplemental Information to be
effective 11/27/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5234.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1044-000.
    Applicants: Emera Energy U.S. Subsidiary No. 2, Inc.
    Description: Filing in Compliance with Order No. 784 to be
effective 11/27/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5155.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1045-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Original Service Agreement No. 3740; Queue No. X1-110
to be effective 12/23/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5158.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1046-000.
    Applicants: Rumford Power Inc.
    Description: Filing in Compliance with Order No. 784 to be
effective 11/27/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5167.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1047-000.
    Applicants: Tiverton Power LLC.
    Description: Filing in Compliance with Order No. 784 to be
effective 11/27/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5174.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1048-000.
    Applicants: Public Service Company of New Mexico.
    Description: Aragonne TSA's to be effective 1/1/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5183.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1049-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: 2014-01-17 ER14-106-001--Gaming Filing Compliance to
be effective 10/17/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5186.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1050-000.
    Applicants: ISO New England Inc., New England Power Pool
Participants Committee.
    Description: Performance Incentives Market Rule Changes--Part 1 of
2 to be effective 6/1/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5190.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1050-001.
    Applicants: ISO New England Inc., New England Power Pool
Participants Committee.

    Description: Performance Incentives Market Rule Changes--Part 2 of
2 to be effective 6/1/2018.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5260.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1051-000.
    Applicants: Southern California Edison Company.
    Description: Amendment to Distribution Service Agmt for SCE-QF
Resources to be effective 12/15/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5191.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1052-000.
    Applicants: Alcoa Power Generating Inc.
    Description: Request for Waiver of the Order No. 1000 Transmission
Planning Requirements [complying with order in ER13-88] of Alcoa Power
Generating Inc.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5196.
    Comments Due: 5 p.m. ET 2/17/14.

    Docket Numbers: ER14-1053-000.
    Applicants: Plum Point Energy Associates, LLC.
    Description: Notice of Non-Material Change in Status to be
effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5198.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1054-000.
    Applicants: Plum Point Services Company, LLC.
    Description: Notice of Non-Material Change in Status to be
effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5200.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1055-000.
    Applicants: PacifiCorp.
    Description: Iberdrola NITSA Rev 1 to be effective 1/6/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5201.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1056-000.
    Applicants: Duke Energy Beckjord, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5204.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1057-000.
    Applicants: Duke Energy Commercial Asset Management, Inc.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5207.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1058-000.
    Applicants: Southwest Power Pool, Inc.
    Description: 2652 Waverly Wind GIA; Cancellation of 2501 Waverly
Wind GIA to be effective 12/30/2013.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5208.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1059-000.
    Applicants: Duke Energy Commercial Enterprises, Inc.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5209.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1060-000.
    Applicants: Duke Energy Conesville, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5211.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1061-000.
    Applicants: Duke Energy Dicks Creek, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5218.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1062-000.
    Applicants: Duke Energy Fayette II, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5219.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1063-000.
    Applicants: Duke Energy Hanging Rock II, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5220.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1064-000.
    Applicants: Duke Energy Kentucky, Inc.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5222.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1065-000.
    Applicants: Duke Energy Killen, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5223.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1066-000.
    Applicants: Duke Energy Lee II, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5224.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1067-000.
    Applicants: Duke Energy Miami Fort, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5226.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1068-000.
    Applicants: Duke Energy Piketon, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5232.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1069-000.
    Applicants: Duke Energy Retail Sales, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5236.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1070-000.
    Applicants: Duke Energy Stuart, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5237.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1071-000.
    Applicants: Duke Energy Washington II, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5239.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1072-000.
    Applicants: Duke Energy Zimmer, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5243.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1073-000.
    Applicants: Laurel Hill Wind Energy, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5245.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1074-000.
    Applicants: North Allegheny Wind, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5246.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1075-000.

    Applicants: CinCap V, LLC.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5247.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1076-000.
    Applicants: Duke Energy Ohio, Inc.
    Description: Duke Northeast Triennial Filing to be effective 3/1/
2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5255.
    Comments Due: 5 p.m. ET 3/18/14.

    Docket Numbers: ER14-1077-000.
    Applicants: Victory Garden Phase IV, LLC.
    Description: First Revised MBR Tariff to be effective 3/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5278.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1078-000.
    Applicants: Alta Wind I, LLC.
    Description: Second Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5279.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1079-000.
    Applicants: Alta Wind II, LLC.
    Description: Second Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5280.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1080-000.
    Applicants: Alta Wind III, LLC.
    Description: Second Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5283.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1081-000.
    Applicants: Alta Wind IV, LLC.
    Description: Second Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5284.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1082-000.
    Applicants: Alta Wind V, LLC.
    Description: Second Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5285.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1083-000.
    Applicants: Alta Wind X, LLC.
    Description: First Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5288.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1084-000.
    Applicants: Alta Wind XI, LLC.
    Description: First Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5290.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1085-000.
    Applicants: Chandler Wind Partners, LLC.
    Description: 2nd Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5294.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1086-000.
    Applicants: Coso Geothermal Power Holdings, LLC.
    Description: 2nd Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5295.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1087-000.
    Applicants: Oak Creek Wind Power, LLC.
    Description: 2nd Revised MBR to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5296.
    Comments Due: 5 p.m. ET 2/7/14.

    Docket Numbers: ER14-1088-000.
    Applicants: TGP Energy Management, LLC.
    Description: First Revised MBR Tariff to be effective 1/18/2014.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5297.
    Comments Due: 5 p.m. ET 2/7/14.

    Take notice that the Commission received the following electric
securities filings:

    Docket Numbers: ES14-22-000.
    Applicants: Southern Indiana Gas & Electric Company, Inc.
    Description: Application for Authority to Issue Short-Term Debt of
Southern Indiana Gas & Electric Company.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5227.
    Comments Due: 5 p.m. ET 2/7/14.

    Take notice that the Commission received the following land
acquisition reports:

    Docket Numbers: LA13-4-000.
    Applicants: Alabama Power Company, Georgia Power Company, Gulf
Power Company, Mississippi Power Company, Southern Power Company.
    Description: Quarterly Land Acquisition Report of the Southern
Companies.
    Filed Date: 1/17/14.
    Accession Number: 20140117-5273.
    Comments Due: 5 p.m. ET 2/7/14.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: January 17, 2014.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2014-01679 Filed 1-28-14; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Notices]
[Page 59390]
[FR Doc No: 2013-23424]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-70465; File No. SR-BATS-2013-035]

Self-Regulatory Organizations; BATS Exchange, Inc.; Notice of
Withdrawal of Proposed Rule Change, as Modified by Amendment No. 1
Thereto, To Amend the Competitive Liquidity Provider Program

September 20, 2013.
    On June 17, 2013, BATS Exchange, Inc. (``Exchange'' or ``BATS'')
filed with the Securities and Exchange Commission (``Commission''),
pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change to establish the Competitive Liquidity Provider
Program for Exchange Traded Products on a pilot basis, and to amend its
existing Competitive Liquidity Provider Program to apply only to
corporate issues. On June 24, 2013, the Exchange submitted Amendment
No. 1 to the proposed rule change.\3\ The proposed rule change, as
modified by Amendment No. 1 thereto, was published for comment in the
Federal Register on July 5, 2013.\4\ The Commission received no comment
letters on the proposed rule change. On August 13, 2013, pursuant to
Section 19(b)(2) of the Act,\5\ the Commission designated a longer
period within which to either approve the proposed rule change,
disapprove the proposed rule change, or institute proceedings to
determine whether to disapprove the proposed rule change.\6\ On
September 19, 2013, the Exchange withdrew the proposed rule change (SR-
BATS-2013-035).
    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\7\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange made technical corrections
and amended the proposed rule text for clarification purposes.
    \4\ Securities Exchange Act Release No. 69889 (June 28, 2013),
78 FR 40531.
    \5\ 15 U.S.C. 78s(b)(2).
    \6\ Securities Exchange Act Release No. 70166 (Aug. 13, 2013),
78 FR 50476 (Aug. 19, 2013).
    \7\ 17 CFR 200.30-3(a)(12).

Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-23424 Filed 9-25-13; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Notices]
[Page 49970]
[FR Doc No: 2016-18039]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC16-13-000]

Commission Information Collection Activities (FERC-547); Comment
Request; Extension

AGENCY: Federal Energy Regulatory Commission.

ACTION: Notice of information collection and request for comments.

-----------------------------------------------------------------------

SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995, 44 U.S.C. 3506(c)(2)(A), the Federal Energy Regulatory
Commission (Commission or FERC) is soliciting public comment on the
currently approved information collection, FERC-547 (Gas Pipeline
Rates: Refund Report Requirements).

DATES: Comments on the collection of information are due September 27,
2016.

ADDRESSES: You may submit comments (identified by Docket No. IC16-13-
000) by either of the following methods:
     eFiling at Commission's Web site: http://www.ferc.gov/docs-filing/efiling.asp.
     Mail/Hand Delivery/Courier: Federal Energy Regulatory
Commission, Secretary of the Commission, 888 First Street NE.,
Washington, DC 20426.
    Instructions: All submissions must be formatted and filed in
accordance with submission guidelines at: http://www.ferc.gov/help/submission-guide.asp. For user assistance contact FERC Online Support
by email at<EMAIL_ADDRESS>or by phone at:<PHONE_NUMBER>
(toll-free), or<PHONE_NUMBER> for TTY.
    Docket: Users interested in receiving automatic notification of
activity in this docket or in viewing/downloading comments and
issuances in this docket may do so at http://www.ferc.gov/docs-filing/docs-filing.asp.

FOR FURTHER INFORMATION CONTACT: Ellen Brown may be reached by email at
<EMAIL_ADDRESS>telephone at<PHONE_NUMBER>, and fax at (202)
273-0873.

SUPPLEMENTARY INFORMATION:
    Title: Gas Pipeline Rates: Refund Report Requirements.
    OMB Control No.: 1902-0084.
    Type of Request: Three-year extension of the FERC-547 information
collection requirements with no changes to the current reporting
requirements.
    Abstract: The Commission uses FERC-547 (Gas Pipeline Rates: Refund
Report Requirements) to implement the statutory refund provisions
governed by Sections 4, 5 and 16 of the Natural Gas Act (NGA).\1\
Sections 4 and 5 authorize the Commission to order a refund (with
interest) for any portion of a natural gas company's increased rate or
charge found to be unjust or unreasonable. Refunds may also be
instituted by a natural gas company as a stipulation to a Commission-
approved settlement agreement or a provision under the company's
tariff. Section 16 of the NGA authorizes the Commission to prescribe
rules and regulations necessary to administer its refund mandates. The
Commission's refund reporting requirements are located in 18 CFR
154.501 and 154.502.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 717-717w.
---------------------------------------------------------------------------

    The Commission uses the data to monitor refunds owed by natural gas
companies to ensure that the flow-through of refunds owed by these
companies are made as expeditiously as possible and to assure that
refunds are made in compliance with the Commission's regulations.
    Type of Respondents: Natural gas companies.
    Estimate of Annual Burden: \2\ The Commission estimates the annual
public reporting burden for the information collection as:
---------------------------------------------------------------------------

    \2\ The Commission defines burden as the total time, effort, or
financial resources expended by persons to generate, maintain,
retain, or disclose or provide information to or for a Federal
agency. For further explanation of what is included in the
information collection burden, reference 5 Code of Federal
Regulations 1320.3.
    \3\ The cost is based on FERC's 2016 average cost (salary plus
benefits) of $74.50/hour. The Commission staff believes that the
industry's level and skill set is comparable to FERC.

                                                FERC--547: Gas Pipeline Rates: Refund Report Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                       Annual  number                    Average burden    Total annual burden
       Number of respondents           of  responses     Total humber      & cost per     hours & total annual    Cost per  respondent
                                      per  respondent    of responses     response \5\            cost                     ($)
                                                 (1)              (2)      (1)x(2)=(3)   (4)...................  (3)*(4)=(5)...........         (5)/(1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Natural Gas Pipelines...............              11                1               11   75 hrs.; $5,587.50....  825 hrs.; $61,462.50..       $5,587.50
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Comments: Comments are invited on: (1) Whether the collection of
information is necessary for the proper performance of the functions of
the Commission, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden and
cost of the collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility and clarity of the information collection; and (4) ways to
minimize the burden of the collection of information on those who are
to respond, including the use of automated collection techniques or
other forms of information technology.

    Dated: July 25, 2016.
Kimberly D. Bose,
Secretary.
[FR Doc. 2016-18039 Filed 7-28-16; 8:45 am]
 BILLING CODE 6717-01-P