[Federal Register Volume 80, Number 44 (Friday, March 6, 2015)]
[Notices]
[Page 12159]
[FR Doc No: 2015-05203]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. OR15-19-000]

Targa NGL Pipeline Company LLC; Notice of Temporary Waiver of
Filing and Reporting Requirements

    Take notice that on February 23, 2015, pursuant to Rule 204 of the
Commission's Rules of Practice and Procedure, 18 CFR 385.204 (2014),
Targa NGL Pipeline Company LLC (Targa) requests that the Commission
grant it a temporary waiver of Interstate Commerce Act section 6 and
section 20, and the Commission's filing and reporting requirements
thereunder at 18 CFR parts 341 and 357, for a natural gas liquids (NGL)
pipeline located entirely in Texas that only transports NGLs owned by
Targa or an affiliate.
    Any person desiring to intervene or to protest this filing must
file in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedure (18 CFR 385.211, 385.214). Protests will be
considered by the Commission in determining the appropriate action to
be taken, but will not serve to make protestants parties to the
proceeding. Any person wishing to become a party must file a notice of
intervention or motion to intervene, as appropriate. Such notices,
motions, or protests must be filed on or before the comment date.
Anyone filing a motion to intervene or protest must serve a copy of
that document on the Petitioner.
    The Commission encourages electronic submission of protests and
interventions in lieu of paper using the ``eFiling'' link at http://www.ferc.gov. Persons unable to file electronically should submit an
original and 5 copies of the protest or intervention to the Federal
Energy Regulatory Commission, 888 First Street NE., Washington, DC
20426. This filing is accessible on-line at http://www.ferc.gov, using
the ``eLibrary'' link and is available for review in the Commission's
Public Reference Room in Washington, DC. There is an ``eSubscription''
link on the Web site that enables subscribers to receive email
notification when a document is added to a subscribed docket(s). For
assistance with any FERC Online service, please email
<EMAIL_ADDRESS>or call<PHONE_NUMBER> (toll free). For
TTY, call<PHONE_NUMBER>.
    Comment Date: 5:00 p.m. Eastern time on March 9, 2015.

    Dated: March 2, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-05203 Filed 3-5-15; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 78, Number 216 (Thursday, November 7, 2013)]
[Notices]
[Pages 66940-66941]
[FR Doc No: 2013-26691]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2013-D-1295]

Regulatory Requirements for Hearing Aid Devices and Personal
Sound Amplification Products; Draft Guidance for Industry and Food and
Drug Administration Staff; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing the
availability of the draft guidance entitled ``Regulatory Requirements
for Hearing Aid Devices and Personal Sound Amplification Products.''
This draft guidance clarifies the distinction between hearing aids and
personal sound amplification products (PSAPs), as well as the
regulatory controls that apply to each. This draft guidance is not
final nor is it in effect at this time.

DATES: Although you can comment on any guidance at any time (see 21 CFR
10.115(g)(5)), to ensure that the Agency considers your comment on this
draft guidance before it begins work on the final version of the
guidance, submit either electronic or written comments on the draft
guidance by February 5, 2014.

ADDRESSES: Submit written requests for single copies of the draft
guidance document entitled ``Regulatory Requirements for Hearing Aid
Devices and Personal Sound Amplification Products'' to the Division of
Small Manufacturers, International, and Consumer Assistance, Center for
Devices and Radiological Health, Food and Drug Administration, 10903
New Hampshire Ave., Bldg. 66, Rm. 4613, Silver Spring, MD 20993-0002.
Send one self-addressed adhesive label to assist that office in
processing your request, or fax your request to<PHONE_NUMBER>. See the
SUPPLEMENTARY INFORMATION section for information on electronic access
to the guidance.
    Submit electronic comments on the draft guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852. Identify comments with the docket number
found in brackets in the heading of this document.

FOR FURTHER INFORMATION CONTACT: Eric A. Mann, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 2438, Silver Spring, MD 20993-0002,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    Since issuance of the February 25, 2009 guidance entitled,
``Regulatory Requirements for Hearing Aid Devices and Personal Sound
Amplification Products'' FDA has become aware of a lack of clarity
regarding how the Agency defines a hearing aid versus a personal sound
amplification product (PSAP), which has also led, in some cases, to
inappropriate application of regulatory requirements for such products.
These inconsistent interpretations of the definitions may inadvertently
result in hearing-impaired consumers bypassing safeguards that were
implemented to promote the prompt diagnosis of treatable medical
conditions causing hearing loss. To ensure consistent interpretation,
consistent application of relevant regulatory requirements, and
adequate protection of the public health, FDA seeks to further clarify
the definitions of hearing aids and PSAPs.
    This draft guidance, when finalized, will supersede the guidance
entitled ``Guidance for Industry and FDA Staff: Regulatory Requirements
for Hearing Aid Devices and Personal Sound Amplification Products,''
dated February 25, 2009.

II. Significance of Guidance

    This draft guidance is being issued consistent with FDA's good
guidance practices regulation (21 CFR 10.115). The draft guidance, when
finalized, will represent the Agency's current thinking on the
definitions and regulatory requirements for hearing aids and PSAPs. It
does not create or confer any rights for or on any person and does not
operate to bind FDA or the public. An alternative approach may be used
if such approach satisfies the requirements of the applicable statute
and regulations.

III. Electronic Access

    Persons interested in obtaining a copy of the draft guidance may do
so by using the Internet. A search capability for all CDRH guidance
documents is available at http://www.fda.gov/MedicalDevices/DeviceRegulationandGuidance/GuidanceDocuments/default.htm. Guidance
documents are also available at http://www.regulations.gov. To receive
``Regulatory Requirements for Hearing Aid Devices and Personal Sound
Amplification Products'' you may either send an email request to
<EMAIL_ADDRESS>to receive an electronic copy of the document or
send a fax request to<PHONE_NUMBER> to receive a hard copy. Please use
the document number 1832 to identify the guidance you are requesting.

IV. Paperwork Reduction Act of 1995

    This draft guidance refers to previously approved collections of
information found in FDA regulations. These collections of information
are subject to review by the Office of Management and Budget (OMB)
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
collections of information in 21 CFR part 801 have been approved under
OMB control number 0910-0485; and the collections of information in 21
CFR part 807 subpart E have been approved under OMB control number
0910-0120.

V. Comments

    Interested persons may submit either electronic comments regarding
this document to http://www.regulations.gov or written comments to the
Division of Dockets Management (see ADDRESSES). It is only necessary to
send one set of comments. Identify comments with the docket number
found in brackets in the heading of this document. Received comments
may be seen in the Division of Dockets Management between 9 a.m. and 4
p.m., Monday through Friday, and will be posted to the docket at http://www.regulations.gov.

    Dated: November 1, 2013.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2013-26691 Filed 11-6-13; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register: December 18, 2007 (Volume 72, Number 242)]
[Notices]
[Page 71673-71674]
[DOCID:fr18de07-42]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. ER08-38-000, ER08-38-001, ER08-38-002]

Northern Renewable Energy (USA) Ltd; Notice of Issuance of Order

December 11, 2007.
    Northern Renewable Energy (USA) Ltd. (NREL USA) filed an
application for market-based rate authority, with an accompanying rate
schedule. The proposed market-based rate schedule provides for the sale
of energy, capacity and ancillary services at market-based rates. NREL
USA so requested waivers of various Commission regulations. In
particular, NREL USA requested that the Commission grant blanket
approval under 18 CFR part 34 of all future issuances of securities and
assumptions of liability by NREL USA.
    On December 10, 2007, pursuant to delegated authority, the
Director, Division of Tariffs and Market Development--West, granted the
requests for blanket approval under Part 34 (Director's Order). The
Director's Order also stated that the Commission would publish a
separate notice in the Federal Register establishing a period of time
for the filing of protests. Accordingly, any person desiring to be
heard concerning the blanket approvals of issuances of securities or
assumptions of liability by NREL USA, should file a protest with the
Federal Energy Regulatory Commission, 888 First Street, NE.,
Washington, DC 20426, in accordance with Rules 211 and 214 of the
Commission's Rules of Practice and

Procedure. 18 CFR 385.211, 385.214 (2004).
    Notice is hereby given that the deadline for filing protests is
January 9, 2008.
    Absent a request to be heard in opposition to such blanket
approvals by the deadline above, NREL USA is authorized to issue
securities and assume obligations or liabilities as a guarantor,
indorser, surety, or otherwise in respect of any security of another
person; provided that such issuance or assumption is for some lawful
object within the corporate purposes of NREL USA, compatible with the
public interest, and is reasonably necessary or appropriate for such
purposes.
    The Commission reserves the right to require a further showing that
neither public nor private interests will be adversely affected by
continued approvals of NREL USA's issuance of securities or assumptions
of liability.
    Copies of the full text of the Director's Order are available from
the Commission's Public Reference Room, 888 First Street, NE.,
Washington, DC 20426. The Order may also be viewed on the Commission's
Web site at http://www.ferc.gov, using the eLibrary link. Enter the

docket number excluding the last three digits in the docket number
filed to access the document. Comments, protests, and interventions may
be filed electronically via the internet in lieu of paper. See, 18 CFR
385.2001(a)(1)(iii) and the instructions on the Commission's Web site
under the ``e-Filing'' link. The Commission strongly encourages
electronic filings.

Kimberly D. Bose,
 Secretary.
[FR Doc. E7-24420 Filed 12-17-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Notices]
[Pages 55714-55715]
[FR Doc No: 2018-24331]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. IC19-4-000]

Commission Information Collection Activities (FERC-714); Comment
Request Extension

AGENCY: Federal Energy Regulatory Commission, DOE.

ACTION: Comment request.

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

SUMMARY: In compliance with the requirements of the Paperwork Reduction
Act of 1995, the Federal Energy Regulatory Commission (Commission or
FERC) is soliciting public comment on the currently approved
information collection, FERC-714 (Annual Electric Balancing Authority
Area and Planning Area Report) to the Office of Management and Budget
(OMB) for review of the information collection requirements.

DATES:  Comments on the collections of information are due by January
7, 2019.

ADDRESSES: You may submit comments (identified by Docket No. IC19-4-
000) by either of the following methods:
     eFiling at Commission's Website: 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 protected], 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 protected], by telephone at<PHONE_NUMBER>, and by fax at
(202) 273-0873.

SUPPLEMENTARY INFORMATION:
    Title: FERC-714, Annual Electric Balancing Authority Area and
Planning Area Report.
    OMB Control No.: 1902-0140.
    Type of Request: Three-year extension of the FERC-714 information
collection requirements with no changes to the current reporting
requirements.
    Abstract: The Commission uses the FERC-714 data to analyze power
system operations. These analyses estimate the effect of changes in
power system operations resulting from the installation of a new
generating unit or plant, transmission facilities, energy transfers
between systems, and/or new points of interconnections. The FERC-714
data assists in providing a broad picture of interconnected balancing
authority area operations including comprehensive information of
balancing authority area generation, actual and scheduled inter-
balancing authority area power transfers, and net energy for load,
summer and winter generation peaks and system lambda. The Commission
also uses the data to prepare status reports on the electric utility
industry including a review of inter-balancing authority area bulk
power trade information.
    The Commission uses the collected data from planning areas to
monitor forecasted demands by electric utilities with fundamental
demand responsibilities and to develop hourly demand characteristics.
    Type of Respondent: Electric utility balancing authorities and
planning areas in the United States.
    Estimate of Annual Burden \1\: The Commission estimates the annual
public reporting burden and cost \2\ (rounded) for the information
collection as follows:
---------------------------------------------------------------------------

    \1\ Burden is defined 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, refer to 5 CFR 1320.3.
    \2\ The hourly cost (for salary plus benefits) uses the figures
from the Bureau of Labor Statistics, May 2017, for the listed
reporting requirements. These figures include salary (https://www.bls.gov/oes/current/naics2_22.htm) and benefits http://www.bls.gov/news.release/ecec.nr0.htm) and are:
     Management (Code 11-0000), $94.28/hr.
     Computer and mathematical (Code 15-0000), $63.25/hr.
     Electrical Engineers (Code 17-2071), $66.90/hr.
     Economist (Code 19-3011), $71.98/hr.
     Computer and Information Systems Managers (Code 11-
3021), $96.51/hr.
     Accountants and Auditors (Code 13-2011), $56.59/hr.
     Transportation, Storage, and Distribution Managers
(Code 11-3071), $75.34/hr.
     Power Distributors and Dispatchers (Code 51-8012),
$53.48/hr.
    The average hourly cost (wages plus benefits) for the above
wages is $72.29/hour (rounded $72.00).

                                                                        FERC-714
                                           [Annual Electric Balancing Authority Area and Planning Area Report]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Annual number of                       Average burden      Total annual
                  Number of respondents                      responses per     Total number of      and cost per     burden hours and       Cost per
                                                               respondent         responses           response      total annual cost    respondent ($)
(1)                                                                      (2)    (1) * (2) = (3)                (4)    (3) * (4) = (5)          (5) / (1)
--------------------------------------------------------------------------------------------------------------------------------------------------------
177......................................................                  1                177                 87             15,399          $6,264.00
                                                                                $6,264.00      $1,108,728.00
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Comments: Comments are invited on: (1) Whether the collections of
information are 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 estimates of the burden and
cost of the collections of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility and clarity of the information collections; and (4) ways to
minimize the burden of the collections of information on those who are
to respond, including the use of automated collection techniques or
other forms of information technology.

    Dated: November 1, 2018.
Kimberly D. Bose,
Secretary.
[FR Doc. 2018-24331 Filed 11-6-18; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 81, Number 28 (Thursday, February 11, 2016)]
[Rules and Regulations]
[Pages 7200-7201]
[FR Doc No: 2016-02672]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2015-3967; Airspace Docket No. 15-ASW-12]

Establishment of Class E Airspace; Clinton AR

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This action establishes Class E airspace extending upward from
700 feet above the surface at Clinton Municipal Airport, Clinton, AR,
to accommodate new Standard Instrument Approach Procedures (SIAPs) for
the safety and management of Instrument Flight Rules (IFR) operations
at the airport. This action also corrects the state identifier in the
legal airspace description.

DATES: Effective 0901 UTC, May 26, 2016. The Director of the Federal
Register approves this incorporation by reference action under Title 1,
Code of Federal Regulations, part 51, subject to the annual revision of
FAA Order 7400.9 and publication of conforming amendments.

ADDRESSES: FAA Order 7400.9Z, Airspace Designations and Reporting
Points, and subsequent amendments can be viewed on line at http://www.faa.gov/air_traffic/publications. For further information, you can
contact the Airspace Policy Group, Federal Aviation Administration, 800
Independence Avenue SW., Washington, DC 29591; telephone:<PHONE_NUMBER>.
The Order is also available for inspection at the National Archives and
Records Administration (NARA). For information on the availability of
FAA Order 7400.9Z at NARA, call<PHONE_NUMBER>, or go to http://www.archives.gov/federal_register/code_of_federal-regulations/ibr_locations.html.
    FAA Order 7400.9, Airspace Designations and Reporting Points is
published yearly and effective on September 15.

FOR FURTHER INFORMATION CONTACT: Rebecca Shelby, Central Service
Center, Operations Support Group, Federal Aviation Administration,
Southwest Region, 10101 Hillwood Parkway, Fort Worth, TX 76177;
telephone:<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority. This rulemaking is promulgated under the authority described
in Subtitle VII, Part A, Subpart I, Section 40103. Under that section,
the FAA is charged with prescribing regulations to assign the use of
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it establishes Class E airspace at Clinton Municipal Airport,
Clinton, AR.

History

    On November 30, 2015, the FAA published in the Federal Register a
notice of proposed rulemaking (NPRM) to establish Class E airspace
extending upward from 700 feet above the surface at Clinton Municipal
Airport, Clinton, AR. (80 FR 74736). Interested parties were invited to
participate in this rulemaking effort by submitting written comments on
the proposal to the FAA. No comments were received. The FAA also notes
that in the NPRM, the state identifier was incorrectly written as LA,
and is corrected in the airspace description to AR.
    Class E airspace designations are published in paragraph 6005 of
FAA Order 7400.9Z, dated August 6, 2015, and effective September 15,
2015, which is incorporated by reference in 14 CFR part 71.1. The Class
E airspace designations listed in this document will be published
subsequently in the Order.

Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.9Z, Airspace Designations and
Reporting Points, dated August 6, 2015, and effective September 15,
2015. FAA Order 7400.9Z is publicly available as listed in the
ADDRESSES section of this document. FAA Order 7400.9Z lists Class A, B,
C, D, and E airspace areas, air traffic service routes, and reporting
points.

The Rule

    This action amends Title 14, Code of Federal Regulations (14 CFR),
Part 71 by establishing Class E airspace extending upward from 700 feet
above the surface within a 6.0-mile radius of Clinton Municipal
Airport, Clinton, AR, to accommodate new Standard Instrument Approach
Procedures for IFR operations at the airport. Also, the correct state
identifier is noted in the airspace description, changing it from LA to
AR.

Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current, is
non-controversial and unlikely to result in adverse or negative
comments. It, therefore: (1) Is not a ``significant regulatory action''
under Executive Order 12866; (2) is not a ``significant rule'' under
DOT Regulatory Policies and Procedures (44

FR 11034; February 26, 1979); and (3) does not warrant preparation of a
regulatory evaluation as the anticipated impact is so minimal. Since
this is a routine matter that only affects air traffic procedures and
air navigation, it is certified that this rule, when promulgated, does
not have a significant economic impact on a substantial number of small
entities under the criteria of the Regulatory Flexibility Act.

Environmental Review

    The FAA has determined that this action qualifies for categorical
exclusion under the National Environmental Policy Act in accordance
with FAA Order 1050.1F, ``Environmental Impacts: Policies and
Procedures'' paragraph 5-6.5a. This airspace action is not expected to
cause any potentially significant environmental impacts, and no
extraordinary circumstances exists that warrant preparation of an
environmental assessment.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation
Administration amends 14 CFR part 71 as follows:

PART 71--DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND REPORTING POINTS

0
1. The authority citation for Part 71 continues to read as follows:

     Authority: 49 U.S.C. 106(f), 106(g), 40103, 40113, 40120; E.O.
10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

Sec.  71.1  [Amended]

0
2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.9Z,
Airspace Designations and Reporting Points, dated August 6, 2015, and
effective September 15, 2015, is amended as follows:

Paragraph 6005 Class E Airspace Areas Extending Upward From 700
Feet or More Above the Surface of the Earth.

* * * * *

ASW AR E5 Clinton, AR [New]

Clinton Municipal Airport, AR
    (Lat. 35[deg]35'52'' N., long. 092[deg]27'06'' W.)

    That airspace extending upward from 700 feet above the surface
within a 6.0-mile radius of Clinton Municipal Airport.

    Issued in Fort Worth, TX, on February 3, 2016.
Vonnie Royal,
Acting Manager, Operations Support Group, ATO Central Service Center.
[FR Doc. 2016-02672 Filed 2-10-16; 8:45 am]
 BILLING CODE 4910-13-P


California No Discharge Zone Proposed Rule Fact Sheet
August 25, 2010 Press Event

U.S. Environmental Protection Agency Regional Administrator Jared Blumenfeld will sign a proposed rule to establish a No Discharge Zone under the Clean Water Act for vessel sewage in California marine waters.  EPA developed the rule in response to a request from the California Water Resources Control Board (pursuant to a provision in the State's Clean Coast Act of 2005).  The rule will prohibit both treated and untreated sewage discharges in State marine waters from all cruise ships, and from large oceangoing ships with adequate sewage holding capacity (defined in the rule as two days storage capacity).  The rule will be the first application of the Clean Water Act to prohibit vessel sewage discharges for an entire State's marine waters under CWA Section 312 (f)(4)(A) and for a specific class of vessels.
Sewage contains pathogens, nutrients and other contaminants that can result in negative human health, environmental, and economic impacts.  Of the 434 California beaches monitored in 2009, 40% experienced advisories for exceeding water quality standards for pathogens. Advisories were issued for all 50 Los Angeles County beaches, over 85% of San Francisco beaches, and 75% of San Diego beaches.  Although significant ocean water quality improvements have been made due to regulation of land-based municipal sewage discharges and stormwater runoff, vessel sewage has not received the same level of attention until now.  Prohibiting large vessel sewage discharges will provide additional protection and improvement of California's marine water quality vital to supporting unique ecological environments, commercial and economic interests, and human health.  Economic impacts to the cruise and shipping industry will be minimal while providing important water quality benefits to California's marine resources.
The rule will apply along California's 1624 mile coastline within 3 miles of shore, including major islands and tidally influenced bays estuaries and rivers.  For example, in addition to the State's ocean coastline, the rule will apply to San Francisco Bay, the Sacramento-San Joaquin Delta, San Pedro Bay, San Diego Bay, Santa Cruz Harbor, and Humboldt Bay.  The rule will prohibit the discharge of approximately 20.4 million (80%) gallons of treated vessel sewage currently allowed in State marine waters each year.  Twenty million gallons per year would fill a line of tanker trucks 29 miles long.
The bulk of the vessel sewage not covered by this proposed rule is generated by recreational vessels that are required to continue using available harbor pumpout stations throughout the State. Other vessels not coved by the rule (e.g., smaller fishing boats) are currently required to treat sewage before discharging with approved marine sanitation devices.  Instead of discharging close to sensitive beaches and near-coastal habitat areas, the rule authorizes discharges  only in much deeper ocean waters beyond the 3 mile limit while ships are moving at higher speeds, thereby increasing sewage mixing and dilution.

Proposed California No Discharge Zone Treated Vessel Sewage Prohibition
Vessel Sewage Generated in California Marine Waters that Can Now Be Discharged (EPA estimate)
Vessel Sewage Prohibited from Discharge in California NDZ
                         25.4 million gallons per year
                      20.4 million gallons per year (80%)

The rule is consistent with the current Clean Water Act ban on vessel discharges of untreated sewage in State waters and will provide added water quality protection from pollutants EPA has found in treated vessel sewage.  The rule will also compliment the recent ban on treated and untreated vessel sewage discharges in California's four National Marine Sanctuaries (Gulf of the Farallones, Cordell Bank, Monterey Bay, and Channel Islands).  The rule supplements existing, small no discharge zones in place for all vessels.

Status of Treated Sewage Protection in California Marine Waters
Area Currently Protected
Area Proposed for Protection
                          1,755 square miles (33.5%)
                           5,222 square miles (100%)

California's ports and ocean waters receive hundreds of cruise ship visits and thousands of large cargo ship calls each year.  California is home to three of America's largest ports -- Los Angeles, Long Beach, and Oakland, and three of the country's largest cruise ship ports -- Los Angeles, Long Beach, and San Diego.  Other significant ports that handle large ships subject to the regulation include San Francisco, Stockton, West Sacramento, Port Hueneme, San Francisco, and Humboldt Bay.  The environmental benefits of the proposed rule will vary based on vessel traffic in different regions of the State.  In 2009 the Ports of Los Angeles and Long Beach together served approximately 1.2 million cruise ship passengers and received approximately 10,000 cargo ship calls.  San Diego and San Francisco served around 800,000 and 150,000 cruise ship passengers respectively. The Port of Oakland received nearly 2,000 cargo vessel visits while the Port of Stockton handled 115 ship calls.

Numbers to call for sewage or other vessel spill violations:
      Coast Guard:
      San Francisco Area:<PHONE_NUMBER>
      Los Angeles/Long Beach Area:<PHONE_NUMBER>
      San Diego Area:<PHONE_NUMBER>

      Federal National Response Center:<PHONE_NUMBER>

      State of California:<PHONE_NUMBER>
      State Water Resources Control Board (to report spills from large ships):<PHONE_NUMBER>

For Further Information:
Paul Amato<PHONE_NUMBER>
David Smith<PHONE_NUMBER>


[Federal Register Volume 80, Number 159 (Tuesday, August 18, 2015)]
[Rules and Regulations]
[Pages 49895-49897]
[FR Doc No: 2015-20317]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

21 CFR Part 870

[Docket No. FDA-2015-N-2723]

Medical Devices; Cardiovascular Devices; Classification of the
Esophageal Thermal Regulation Device

AGENCY: Food and Drug Administration, HHS.

ACTION: Final order.

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

SUMMARY: The Food and Drug Administration (FDA) is classifying the
esophageal thermal regulation device into class II (special controls).
The special controls that will apply to the device are identified in
this order and will be part of the codified language for the esophageal
thermal regulation device's classification. The Agency is classifying
the device into class II (special controls) in order to provide a
reasonable assurance of safety and effectiveness of the device.

DATES: This order is effective August 18, 2015. The classification was
applicable on June 23, 2015.

FOR FURTHER INFORMATION CONTACT: Lydia Glaw, Center for Devices and
Radiological Health, Food and Drug Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 1102, Silver Spring, MD 20993-0002,<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    In accordance with section 513(f)(1) of the Federal Food, Drug, and
Cosmetic Act (the FD&C Act) (21 U.S.C. 360c(f)(1)), devices that were
not in commercial distribution before May 28, 1976 (the date of
enactment of the Medical Device Amendments of 1976), generally referred
to as postamendments devices, are classified automatically by statute
into class III without any FDA rulemaking process. These devices remain
in class III and require premarket approval, unless and until the
device is classified or reclassified into class I or II, or FDA issues
an order finding the device to be substantially equivalent, in
accordance with section 513(i) of the FD&C Act, to a predicate device
that does not require premarket approval. The Agency determines whether
new devices are substantially equivalent to predicate devices by means
of premarket notification procedures in section 510(k) of the FD&C Act
(21 U.S.C. 360(k)) and part 807 (21 CFR part 807) of the regulations.
    Section 513(f)(2) of the FD&C Act, as amended by section 607 of the
Food and Drug Administration Safety and Innovation Act (Pub. L. 112-
144), provides two procedures by which a person may request FDA to
classify a device under the criteria set forth in section 513(a)(1).
Under the first procedure, the person submits a premarket notification
under section 510(k) of the FD&C Act for a device that has not
previously been classified and, within 30 days of receiving an order
classifying the device into class III under section 513(f)(1), the
person requests a classification under section 513(f)(2) of the FD&C
Act. Under the second procedure, rather than first submitting a
premarket notification under section 510(k) of the FD&C Act and then a
request for classification under the first procedure, the person
determines that there is no legally marketed device upon which to base
a determination of substantial equivalence and requests a
classification under section 513(f)(2) of the FD&C Act. If the person
submits a request to classify the device under this second procedure,
FDA may decline to undertake the classification request if FDA
identifies a legally marketed device that could provide a reasonable
basis for review of substantial equivalence with the device or if FDA
determines that the device submitted is not of ``low-moderate risk'' or
that general controls would be inadequate to control the risks and
special controls to mitigate the risks cannot be developed.
    In response to a request to classify a device under either
procedure provided by section 513(f)(2) of the FD&C Act, FDA will
classify the device by written order within 120 days. This
classification will be the initial classification of the device. On May
8, 2014, Advanced Cooling Therapy, LLC, submitted a request for
classification of the Esophageal Cooling Device under section 513(f)(2)
of the FD&C Act. The manufacturer recommended that the device be
classified into class II (Ref. 1).
    In accordance with section 513(f)(2) of the FD&C Act, FDA reviewed
the request in order to classify the device under the criteria for
classification set forth in section 513(a)(1). FDA classifies devices
into class II if general controls by themselves are insufficient to
provide reasonable assurance of safety and effectiveness, but there is
sufficient information to establish special controls to provide
reasonable assurance of the safety and effectiveness of the device for
its intended use. After review of the information submitted in the
request, FDA determined that the device could be classified into class
II with the

establishment of special controls. FDA believes these special controls,
in addition to general controls, will provide reasonable assurance of
the safety and effectiveness of the device.
    Therefore, on June 23, 2015, FDA issued an order to the requestor
classifying the device into class II. FDA is codifying the
classification of the device by adding 21 CFR 870.5910.
    Following the effective date of this final classification order,
any firm submitting a premarket notification (510(k)) for an esophageal
thermal regulation device will need to comply with the special controls
named in this final order. The device is assigned the generic name
esophageal thermal regulation device, and it is identified as a
prescription device used to apply a specified temperature to the
endoluminal surface of the esophagus via an external controller. This
device may incorporate a mechanism for gastric decompression and
suctioning. The device is used to regulate patient temperature.
    FDA has identified the following risks to health associated
specifically with this type of device, as well as the mitigation
measures required to mitigate these risks in table 1.

   Table 1--Esophageal Thermal Regulation Device Risks and Mitigation
                                Measures
------------------------------------------------------------------------
              Identified risk                    Mitigation measure
------------------------------------------------------------------------
Adverse tissue reaction...................  Biocompatibility testing.
Gastric distension........................  Non-clinical performance
                                             evaluation.
                                            Labeling.
Injury to the esophagus...................  Non-clinical performance
                                             evaluation.
                                            Animal testing.
                                            Labeling.
Harmful hypo/hyperthermia.................  Non-clinical performance
                                             evaluation.
                                            Animal testing.
                                            Labeling.
Injury to the trachea.....................  Labeling.
------------------------------------------------------------------------

    FDA believes that the following special controls, in combination
with the general controls, address these risks to health and provide
reasonable assurance of the safety and effectiveness:
     The patient contacting materials must be demonstrated to
be biocompatible.
     Non-clinical performance evaluation must demonstrate that
the device performs as intended under anticipated conditions of use.
The following performance characteristics must be tested:
    [cir] Mechanical integrity testing;
    [cir] Testing to determine temperature change rate(s);
    [cir] Testing to demonstrate compatibility with the indicated
external controller; and
    [cir] Shelf life testing.
     Animal testing must demonstrate that the device does not
cause esophageal injury and that body temperature remains within
appropriate boundaries under anticipated conditions of use.
     Labeling must include the following:
    [cir] Detailed insertion instructions;
    [cir] Warning against attaching the device to unintended
connections, such as external controllers for which the device is not
indicated, or pressurized air outlets instead of vacuum outlets for
those devices, including gastric suction;
    [cir] The operating parameters, name, and model number of the
indicated external controller; and
    [cir] The intended duration of use.
    Esophageal thermal regulation devices are prescription devices
restricted to patient use only upon the authorization of a practitioner
licensed by law to administer or use the device; see 21 CFR 801.109
(Prescription devices).
    Section 510(m) of the FD&C Act provides that FDA may exempt a class
II device from the premarket notification requirements under section
510(k), if FDA determines that premarket notification is not necessary
to provide reasonable assurance of the safety and effectiveness of the
device. For this type of device, FDA has determined that premarket
notification is necessary to provide reasonable assurance of the safety
and effectiveness of the device. Therefore, this device type is not
exempt from premarket notification requirements. Persons who intend to
market this type of device must submit to FDA a premarket notification,
prior to marketing the device, which contains information about the
esophageal thermal regulation device they intend to market.

II. Environmental Impact

    The Agency has determined under 21 CFR 25.34(b) that this action is
of a type that does not individually or cumulatively have a significant
effect on the human environment. Therefore, neither an environmental
assessment nor an environmental impact statement is required.

III. Paperwork Reduction Act of 1995

    This final order establishes special controls that refer to
previously approved collections of information found in other FDA
regulations. These collections of information are subject to review by
the Office of Management and Budget (OMB) under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501-3520). The collections of information in
part 807, subpart E, regarding premarket notification submissions have
been approved under OMB control number 0910-0120, and the collections
of information in 21 CFR part 801, regarding labeling have been
approved under OMB control number 0910-0485.

IV. Reference

    The following reference has been placed on display in the Division
of Dockets Management (HFA-305), Food and Drug Administration, 5630
Fishers Lane, Rm. 1061, Rockville, MD 20852, and may be seen by
interested persons between 9 a.m. and 4 p.m., Monday through Friday,
and is available electronically at http://www.regulations.gov.

1. DEN140018: De Novo Request per 513(f)(2) from Advanced Cooling
Therapy, LLC, dated May 8, 2014.

List of Subjects in 21 CFR Part 870

    Medical devices.

    Therefore, under the Federal Food, Drug, and Cosmetic Act and under
authority delegated to the Commissioner of Food and Drugs, 21 CFR part
870 is amended as follows:

PART 870--CARDIOVASCULAR DEVICES

0
1. The authority citation for 21 CFR part 870 continues to read as
follows:

    Authority:  21 U.S.C. 351, 360, 360c, 360e, 360j, 371.

0
2. Add Sec.  870.5910 to subpart F to read as follows:

Sec.  870.5910  Esophageal thermal regulation device.

    (a) Identification. An esophageal thermal regulation device is a
prescription device used to apply a specified temperature to the
endoluminal surface of the esophagus via an external controller. This
device may incorporate a mechanism for gastric decompression and
suctioning. The device is used to regulate patient temperature.
    (b) Classification. Class II (special controls). The special
controls for this device are:
    (1) The patient contacting materials must be demonstrated to be
biocompatible.
    (2) Non-clinical performance evaluation must demonstrate that the
device performs as intended under anticipated conditions of use. The

following performance characteristics must be tested:
    (i) Mechanical integrity testing.
    (ii) Testing to determine temperature change rate(s).
    (iii) Testing to demonstrate compatibility with the indicated
external controller.
    (iv) Shelf life testing.
    (3) Animal testing must demonstrate that the device does not cause
esophageal injury and that body temperature remains within appropriate
boundaries under anticipated conditions of use.
    (4) Labeling must include the following:
    (i) Detailed insertion instructions.
    (ii) Warning against attaching the device to unintended
connections, such as external controllers for which the device is not
indicated, or pressurized air outlets instead of vacuum outlets for
those devices, including gastric suction.
    (iii) The operating parameters, name, and model number of the
indicated external controller.
    (iv) The intended duration of use.

    Dated: August 12, 2015.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2015-20317 Filed 8-17-15; 8:45 am]
 BILLING CODE 4164-01-P


[Federal Register Volume 78, Number 249 (Friday, December 27, 2013)]
[Notices]
[Pages 78953-78954]
[FR Doc No: 2013-31115]

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

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2007-1158; FRL-9904-81-OAR]

Proposed Information Collection Request; Comment Request;
Alternative Affirmative Defense Requirements for Ultra-Low Sulfur
Diesel

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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

SUMMARY: The Environmental Protection Agency is planning to submit an
information collection request (ICR), ``Alternative Affirmative Defense
Requirements for Ultra-low Sulfur Diesel'' (EPA ICR No.2364.04, OMB
Control No. 2060-0639 to the Office of Management and Budget (OMB) for
review and approval in accordance with the Paperwork Reduction Act (44
U.S.C. 3501 et seq.). Before doing so, EPA is soliciting public
comments on specific aspects of the proposed information collection as
described below. This is a proposed extension of the ICR, which is
currently approved through March 31, 2014. 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: Comments must be submitted on or before February 25, 2014.

ADDRESSES: Submit your comments, referencing Docket ID No. EPA-HQ-OAR-
2007-1158, online using www.regulations.gov (our preferred method), or
by mail to: EPA Docket Center, Environmental Protection Agency, Mail
Code 28221T, 1200 Pennsylvania Ave. NW., Washington, DC 20460.
    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: Geanetta Heard, Fuels Compliance
Center, 6406J, Environmental Protection Agency, 1200 Pennsylvania Ave.
NW., Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax number:
202-565-2085; 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.
    Pursuant to section 3506(c)(2)(A) of the PRA, EPA is soliciting
comments and information to enable it to: (i) evaluate whether the
proposed collection of information is necessary for the proper
performance of the functions of the Agency, including whether the
information will have practical utility; (ii) evaluate the accuracy of
the Agency's estimate of the burden of the proposed collection of
information, including the validity of the methodology and assumptions
used; (iii) enhance the quality, utility, and clarity of the
information to be collected; and (iv) minimize the burden of the
collection of information on those who are to respond, including
through the use of appropriate automated electronic, mechanical, or
other technological collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses. EPA
will consider the comments received and amend the ICR as appropriate.
The final ICR package will then be submitted to OMB for review and
approval. At that time, EPA will issue another Federal Register notice
to announce the submission of the ICR to OMB and the opportunity to
submit additional comments to OMB.
    Abstract: With this ICR renewal, EPA is seeking permission to
continue recordkeeping and reporting requirements under the ultra-low
sulfur diesel (ULSD) fuel regulations. Where a violation of the 15 ppm
sulfur standard is identified at a retail outlet, the retailer
responsible for dispensing the noncompliant fuel is deemed liable, as
well as the refiner(s), importer(s) and distributor(s) of such fuel.
The highway diesel regulations further provide, however, that any
person deemed liable can rebut this presumption by establishing an
affirmative defense that includes, among other things, showing that it
conducted a quality assurance sampling and testing program as
prescribed by the regulations. This ICR covers burdens and costs
associated with provisions that allow refiners and importers of ULSD an
alternative means of meeting the affirmative defense requirements in
the ULSD regulations by participating in a nationwide diesel fuel
sampling and testing program. The reporting burden covered by this ICR
renewal relates to reports that refiners, importers and distributors,
have to submit in the event they have a non-complying sulfur test
result.
    Form Numbers: None.
    Respondents/affected entities: 5.
    Respondent's obligation to respond: mandatory.
    Estimated number of respondents: 5 (total).
    Frequency of response: On occasion.
    Total estimated burden: 80 hours (per year). Burden is defined at 5
CFR 1320.03(b).
    Total estimated cost: $9,200 (per year), includes no annualized
capital or operation & maintenance costs.
    Changes in Estimates: There is no increase of hours in the total
estimated respondent burden compared with the ICR currently approved by
OMB. The respondent universe and responses decreased in this collection
due to a higher than expected compliance rate. There was in increase in
cost to the industry per response of $704 due to more accurate numbers
used to calculate the industry burden and to account for inflation.
There was a decrease in cost to the industry overall of $13,520 due to
the reduction of expected responses from 20 to five.

    Dated: December 20, 2013.
Byron Bunker,
Director, Compliance Division, Office of Transportation and Air
Quality, Office of Air and Radiation.
[FR Doc. 2013-31115 Filed 12-26-13; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 87, Number 8 (Wednesday, January 12, 2022)]
[Notices]
[Pages 1819-1825]
[FR Doc No: 2022-00378]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93916; File No. SR-OCC-2021-014]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Concerning the Options
Clearing Corporation's Cash and Investment Management

January 6, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on December 23, 2021, the Options Clearing
Corporation (``OCC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II,
and III below, which Items have been prepared by OCC. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change would (1) formalize OCC's policy for
safeguarding cash and related investments and (2) amend OCC's Rules
governing use of the Clearing Fund in the event of the failure of a
bank to meet a settlement obligation with OCC to ensure such access
extends to the failure of an investment counterparty with whom OCC has
invested cash deposited by Clearing Members in respect of margin or
Clearing Fund requirements under the conditions identified in OCC Rule
1006(c) and (f), regardless of whether the investment counterparty is a
bank. The Cash and Investment Management Policy is included in
confidential Exhibit 5a of File Number SR-OCC-2021-014. Proposed
amendments to OCC's Rules are included in Exhibit 5b of File Number SR-
OCC-2021-014. All terms with initial capitalization that are not
otherwise defined herein have the same meaning as set forth in the OCC
By-Laws and Rules.\3\
---------------------------------------------------------------------------

    \3\ OCC's By-Laws and Rules can be found on OCC's website:
https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
---------------------------------------------------------------------------

II. Clearing Agency'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 these statements.

(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

(1) Purpose
    OCC is proposing to enhance its cash and investment management
practices by: (1) Formalizing OCC's policy for safeguarding cash and
related investments, and (2) amending OCC's Rules to ensure access to
the Clearing Fund if a non-bank investment counterparty fails to return
Clearing Member cash deposited in respect of margin or Clearing Fund
requirements under the conditions identified in OCC Rule 1006(c) and
(f).
Background
    OCC's By-Laws and Rules govern the management and investment of
OCC's own funds and cash deposited by Clearing Members. With respect to
OCC's own funds (other than Clearing Fund deposits), Article IX,
Section 1 of OCC's By-Laws provides that funds in excess of the amount
needed as working capital may be invested by the Board in Government
securities or such other securities or financial instruments as the
Board or a Board-level committee may from time to time approve.\4\ With
respect to cash deposited by Clearing Members, OCC Rules 604(a) and
1002(c) provide that cash deposited in respect of a Clearing Member's
margin requirements or Clearing Fund contributions may from time to
time be partially or wholly invested by OCC for its account in
Government securities.\5\ OCC does not propose to amend these By-Laws
or Rules by this proposed rule change.
---------------------------------------------------------------------------

    \4\ See By-Law Art. IX, Sec. 1.
    \5\ See OCC Rule 604(a); Rule 1006(c).
---------------------------------------------------------------------------

    OCC's investments historically have been limited to overnight
transactions under deliver-versus-payment (``DVP'') reverse repurchase
agreements. As collateral, the investment counterparty deliveries
Government securities equal to 102% of the cash invested at the time
the investment is made. Such investments reduce OCC's investment risks
by permitting quick liquidation with little adverse price effect and
controlling the movement of OCC's assets via a custodian bank. To
minimize counterparty risk, OCC restricts its potential counterparties
to financial institutions that meet certain standards of size, capital
adequacy, product offering and operational capacity.
    In the event of a failure or disruption of an investment
counterparty that is a bank, OCC's Rules provide OCC with authority to
access the Clearing Fund to address liquidity shortfalls, including
shortfalls arising from the investment of Clearing Member cash in
Government securities. Specifically, OCC Rule 1006(f) authorizes OCC to
take possession of cash or securities deposited by Clearing Members in
respect of the Clearing Fund when OCC reasonably believes it necessary
to meet its liquidity needs for same-day settlement as a result of the
failure of any bank to achieve daily settlement with OCC.\6\ In the
extremely unlikely event that a bank investment counterparty failed to
return the cash versus return of the Government securities to unwind a
transaction under a reverse repurchase agreement--e.g., because of a
systems disruption, operational outage, or otherwise--OCC could
exercise authority under Rule 1006(f) to borrow from the Clearing Fund
to the extent required for OCC to meet its settlement obligations with
Clearing Members.\7\
---------------------------------------------------------------------------

    \6\ See OCC Rule 1006(f). As discussed, infra, this proposed
rule change would amend this clause to apply when OCC reasonably
believes it necessary to meet its liquidity needs for ``daily
settlement'' as a result of the failure of any bank ``to perform any
obligation to the Corporation when due.''
    \7\ OCC amended its Rules in 2018 to extend access to the
Clearing Fund in the extraordinary event that OCC faces a liquidity
need in order to complete same-day settlement for reasons other than
a bank or clearing organization's bankruptcy, insolvency,
receivership, suspension of operations, or any similar event. See
Securities Exchange Act (``Exchange Act'') Release No. 82309 (Dec.
13, 2017), 82 FR 60262 (Dec. 19, 2017) (File No. SR-OCC-2017-017).
---------------------------------------------------------------------------

    In the unlikely event that any part of the borrowing under Rule
1006(f) is outstanding after 30 calendar days, or if OCC determines
that some or all of the amount borrowed constituted an actual loss, OCC
would charge the loss to the Clearing Fund.\8\ In the unlikely event
that OCC incurred an investment loss resulting from a bank's failure to
return the invested cash because of bankruptcy, insolvency,
receivership, suspension of operations or other similar event, OCC may,
at its discretion, charge the loss to the Clearing Fund.\9\ OCC may
also, at its discretion, apply skin-in-the-game to a loss resulting
from a borrowing or bank failure in the form of liquid net assets
funded by equity \10\ in excess of 110% of OCC's Target Capital
Requirement.\11\
---------------------------------------------------------------------------

    \8\ See OCC Rule 1006(c)(ii).
    \9\ See OCC Rule 1006(c)(i).
    \10\ OCC's Capital Management Policy defines ``liquid net assets
funded by equity'' to be the level of cash or cash equivalents, no
greater than OCC's shareholders' equity, less any approved
adjustments (e.g., agency-related liabilities such as Section 31
fees held by OCC and the Minimum Corporate Contribution). See
Exchange Act Release No. 91199 (Feb. 24, 2021), 86 FR 12237, 12241
(Mar. 2, 2021) (File No. SR-OCC-2021-003).
    \11\ See OCC Rule 1006(e)(ii).
---------------------------------------------------------------------------

Proposed Changes
Cash and Investment Management Policy
    OCC proposes to file its Cash and Investment Management Policy (or
``Policy'') as a proposed rule of the clearing agency within the
meaning of Section 19(b)(1) of the Exchange Act \12\ and SEC Rule 19b-
4.\13\ The Policy would include statements of purpose, applicability
and scope, safeguarding standards for maintaining cash and related
investments to minimize credit and liquidity risk, and guidelines for
investing OCC Cash and Clearing Member Cash, as defined below.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(1).
    \13\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

Purpose, Applicability and Scope
    The Policy would include statements of the Policy's purpose,
applicability, and scope. The purpose of the Policy would be to (1)
outline the safeguarding standards for cash and related investments
managed by OCC to minimize credit and liquidity risk, and (2) provide
guidelines for investments permitted by OCC's By-Laws and Rules. The
Policy principally would apply to OCC's Treasury department
(``Treasury''), which has responsibility for managing cash on behalf of
OCC. The Policy's scope would include the safeguarding standards and
investment activities specific to OCC's own cash (``OCC Cash'') and
cash from OCC's Clearing Members (``Clearing Member Cash'').
    The Policy would define OCC Cash to include working capital related
to future operating costs, inclusive of financial resource held to meet
liquidity and resiliency requirements,\14\ proceeds from lines of
credit, if any, maintained to support OCC's working capital,\15\ the

Minimum Corporate Contribution,\16\ and investments made with OCC Cash.
The Policy would not apply to cash held in respect of OCC's pension
plan, post-retirement welfare plan, or other deferred compensation
plans. The Policy would define Clearing Member Cash to include Clearing
Fund cash deposits; cash deposited by Clearing Members in respect of
margin requirements; cash held in liquidating settlement accounts for
suspended Clearing Members,\17\ proceeds from OCC's syndicated credit
facility and liquidity facilities,\18\ and investments made with
Clearing Member Cash.\19\ The Policy would not apply to non-cash
collateral deposited by Clearing Members to satisfy margin or Clearing
Fund requirements.
---------------------------------------------------------------------------

    \14\ See Exchange Act Release No. 88029 (Jan. 24, 2020), 85 FR
5500, 5501-02 (Jan. 30, 2020) (File No. SR-OCC-2019-007) (discussing
the determination of Target Capital Requirement under OCC's Capital
Management Policy).
    \15\ Working capital lines of credit, if any, are separate from
the syndicated credit facility and liquidity facilities that OCC
maintains to cover default losses or liquidity shortfalls. See
Exchange Act Release No. 88971 (May 28, 2020), 85 FR 34257 (June 3,
2020) (File No. SR-OCC-2020-804) (discussing OCC's revolving credit
facility); Exchange Act Release No. 89039 (June 10, 2020), 85 FR
36444 (June 16, 2020) (File No. SR-OCC-2020-803) (discussing OCC's
non-bank liquidity facility).
    \16\ See Exchange Act Release No. 92038 (May 27, 2021), 86 FR
29861 (Jun. 3, 2021) (File No. SR-OCC-2021-003) (establishing a
persistent minimum level of OCC's own capital that it would
contribute to default losses or liquidity shortfalls prior to
allocating a default loss to the Clearing Fund contributions of non-
defaulting Clearing Members).
    \17\ See OCC Rule 1104.
    \18\ See supra note 17 (citing SEC notices of no-objection to
advance notices concerning OCC's credit and liquidity facilities).
    \19\ See supra note 7 and accompanying text.
---------------------------------------------------------------------------

Safeguarding Standards
    The Policy would address the safeguarding standards for managing
OCC Cash and Clearing Member Cash, which OCC would either hold in a
demand deposit or Federal Reserve Bank accounts or invest in accordance
with OCC's By-Laws and investment strategy, as discussed below.
OCC Cash
    Unless invested, OCC Cash would be held in demand deposit accounts
or at a Federal Reserve Bank. Demand deposit accounts would be limited
to commercial financial institutions that meet initial and ongoing
standards for depository banks outlined in OCC's procedures concerning
its banking relationships.
    Treasury would be responsible for maintaining appropriate levels of
liquidity in OCC's operating accounts to meet general business
obligations and regulatory requirements. To fulfill this
responsibility, the Policy would provide that OCC may maintain bank
lines of credit for working capital purposes. The source of such credit
line would need to meet the standards for credit facility banks
outlined in OCC's procedures concerning its banking relationships.
Clearing Member Cash
    The Policy would provide that unless invested, Clearing Member Cash
would be held in a demand deposit account or in accounts at a Federal
Reserve Bank. With respect to commercial banks, Clearing Member Cash
would only be held in financial institutions that meet the initial and
ongoing standards for depository banks as provided in in OCC's
procedures concerning banking relationships. The Policy would provide
that Clearing Member Cash collected at OCC's settlement banks may be
transferred to other depository banks, including to and from OCC's bank
accounts for settlement, investment, and cash management purposes. Upon
the suspension of a Clearing Member, OCC would promptly move all margin
and Clearing Fund cash related to the Clearing Member into a
liquidating settlement account for use in meeting the obligations of
the Clearing Member, as provided under OCC's Rules.\20\ Treasury would
be responsible for ensuring accounts are appropriately funded to meet
financial obligations. Interest earned on Clearing Fund cash deposits
held at a Federal Reserve Bank would accrue to the benefit of Clearing
Members, less a cash management fee.
---------------------------------------------------------------------------

    \20\ See OCC Rule 1104.
---------------------------------------------------------------------------

    The Policy would also provide that OCC would employ a bank account
structure that segregates customer funds per applicable regulatory
requirements \21\ and OCC's By-Laws and Rules.\22\ Futures customer
segregated cash would be held in segregated fund accounts pursuant to
applicable Commodity and Futures Trading Commission (``CFTC'')
regulations, including that OCC ensures that it receives proper written
acknowledgment from the depository for each new segregated funds
account that the account has been established to hold segregated cash
generated from futures customers.\23\ The Policy would further provide
that if OCC sustains an investment loss with respect to invested margin
cash OCC will not pass on the loss to a futures customer segregated
account.
---------------------------------------------------------------------------

    \21\ See 17 CFR 39.15 (requiring a derivatives clearing
organization to comply with the segregation requirements section 4d
of the Commodity Exchange Act).
    \22\ See OCC By-Laws Art. VI, Sec. 3(f) (providing for
maintenance of segregated futures accounts).
    \23\ See 17 CFR 1.20(g)(4).
---------------------------------------------------------------------------

Investment Guidelines
    The Policy would also provide guidelines for investments permitted
by OCC's By-Laws and Rules and approved by the Board or Compensation
and Performance Committee (``CPC''), including OCC's investment
strategy, investment governance principles, and guidelines for the
investment of OCC Cash and Clearing Member Cash.
Investment Strategy
    The Policy would provide that OCC's investment strategy is to
preserve principal and maintain adequate liquidity. After principal and
liquidity requirements are satisfied, only then would Management seek
to optimize investment returns. OCC would disclose its investment
strategy through its public website on a periodic basis via its
qualitative disclosures to the Principles for Financial Market
Infrastructure Disclosures.\24\
---------------------------------------------------------------------------

    \24\ See Disclosure Framework, available at https://www.theocc.com/Risk-Management/PFMI-Disclosures.
---------------------------------------------------------------------------

Investment Governance Principles
    The Policy would provide that OCC may invest OCC Cash and Clearing
Member Cash in permitted investments per applicable regulatory
requirements, OCC's By-Laws and Rules, the investment strategy and the
following governance principles. Current investment practices would be
outlined in procedures maintained by OCC. Investment counterparties
would need to be financial institutions or financial market utilities
that meet initial and on-going standards outlined in OCC's procedures
concerning its banking relationships, which consider the financial
institution's size, capital adequacy, product offering and operational
capabilities. Any interest or gain received on the investments would
belong to OCC except as may otherwise be provided in OCC's By-Laws,
Rules or Board-approved policies.\25\ OCC would not commingle
investments of OCC Cash with investments of Clearing Member Cash.
---------------------------------------------------------------------------

    \25\ As discussed, interest earned on Clearing Fund cash
deposits held at a Federal Reserve Bank would accrue to the benefit
of Clearing Members, less a cash management fee.
---------------------------------------------------------------------------

Investment of OCC Cash
    The Policy would provide that OCC Cash may be invested in
instruments that pose minimal credit and liquidity risk pursuant to
applicable regulatory requirements, OCC's By-Laws, the investment
strategy, and Board or CPC approved investments. Approved investments
other than in Government securities would continue to be subject to
Board or CPC approval, as required under Section 1 of Article IX of
OCC's By-Laws.\26\ In addition, investment of

working capital in excess of 110% of OCC's Target Capital Requirement
would not be limited to overnight transactions.\27\
---------------------------------------------------------------------------

    \26\ In addition to investments in Government securities through
overnight DVP transactions, the Board has approved investments of
OCC's own cash in U.S. government money market mutual funds.
    \27\ With respect to OCC's liquid net assets funded by equity in
excess of 110% of the Target Capital Requirement, the Board has
initially approved investment of such funds in Government securities
through DVP transactions for terms no more than 30 days.
---------------------------------------------------------------------------

Investment of Clearing Member Cash
    The Policy would further provide that Clearing Member Cash may be
invested in Government securities by OCC in transactions that provide
next-day liquidity in accordance with applicable regulatory
requirements, OCC's Rules, and the investment strategy, subject to the
following guiding principles. First, the Policy would provide that
notwithstanding the authority to invest Clearing Fund cash under OCC
Rule 1002(c), it is OCC's policy not to invest Clearing Fund cash,
which is instead maintained in accounts at a Federal Reserve Bank or a
commercial bank. This policy would be subject to an exception approved
by the Chief Executive Officer or Chief Operating Officer in emergency
situations (such as a disruption at a Federal Reserve Bank) when
necessary or advisable for the protection of the Corporation or
otherwise in the public interest to continue to facilitate the prompt
and accurate clearance and settlement of confirmed trades or other
transactions and to provide OCC's services in a safe and sound manner.
Second, the Policy would provide that margin cash would only be
invested in instruments that provide liquidity to OCC by the following
business day. Third, the Policy would provide that OCC will implement
procedures to ensure that end-of-day margin cash balances remain above
the aggregate level of any Required Cash Deposits, as that term is
defined in OCC's Liquidity Risk Management Framework.\28\ The policy
with respect to investing Required Cash Deposits would be subject to
the same exception as for investment of Clearing Fund cash. Fourth, any
change regarding whether to investment futures customer segregated
funds would be approved by OCC's Chief Financial Officer in
consultation with OCC's Legal and Compliance departments.\29\
---------------------------------------------------------------------------

    \28\ The Liquidity Risk Management Framework defines ``Required
Cash Deposits'' (sometimes referred to as minimum cash requirements
or ``MCR'') as deposits of cash under OCC's Contingency Funding Plan
that supplement OCC's Base Liquidity Resources (i.e., the amount of
committed liquidity resources maintained at all times by OCC to meet
its minimum Cover 1 liquidity resource requirements under the
applicable regulations). Under that framework, OCC may require a
Clearing Member Group to post such additional cash collateral to
supplement OCC's Available Liquidity Resources (i.e., Base Liquidity
Resources plus allowed Clearing Fund cash deposits in excess of the
minimum required amount) when stressed liquidity demands for that
Clearing Member Group are above established thresholds or until the
settlement demand is met. See Exchange Act Release No. 89014 (June
4, 2020), 85 FR 35446, 35449 (June 10, 2020) (File No. SR-OCC-2020-
003).
    \29\ Like Clearing Fund cash, OCC does not currently invest
futures customer segregated funds. If OCC determined to invest such
funds, such investments would be subject to CFTC regulations
regarding a derivatives clearing organization's investment of
futures customer funds. See 17 CFR 1.25.
---------------------------------------------------------------------------

    The Policy would also describe how OCC maintains liquidity
facilities for immediate access to liquidity in the event of a
suspension of a Clearing Member or a failure of a bank, securities or
commodity clearing organization, or investment counterparty (with
respect to the investment of Clearing Member Cash) to meet an
obligation owing to OCC, or in anticipation thereof, pursuant to OCC
Rules 1006(c) and (f), proposed amendments to which are discussed
below. The liquidity providers for these facilities would be approved
and monitored according to the OCC's Third-Party Risk Management
Framework and Liquidity Risk Management Framework.\30\
---------------------------------------------------------------------------

    \30\ See Exchange Act Release No. 90797 (Dec. 23, 2020), 85 FR
86592 (Dec. 30, 2020) (File No. SR-OCC-2020-014) (approving OCC's
framework for identifying, measuring, monitoring, and managing OCC's
exposures to its counterparties); Exchange Act Release No. 89014, 85
FR 35446 (approving OCC's approach to managing liquidity risk).
---------------------------------------------------------------------------

Amendments to OCC Rule 1006
    OCC proposes to amend OCC Rule 1006, which governs its ability to
access the Clearing Fund in the event of the failure (or anticipated
failure) of bank to meet a settlement obligation with OCC, to extend
such access to the failure of a non-bank investment counterparty to
meet settlement obligations with OCC under the conditions identified in
OCC Rule 1006(c) and (f). In addition, OCC proposes to restate OCC Rule
1006(f) for clarity.
    To ensure that OCC may access the Clearing Fund in the event of a
failure or disruption of a non-bank counterparty with whom OCC has
invested Clearing Member Cash, OCC would amend OCC Rule 1006(f) to
include ``investment counterparty'' to the list of counterparties--
currently, any bank or securities or commodities clearing
organization--whose failure or disruption may result in a borrowing
under Rule 1006(f). Similarly, OCC would also amend OCC Rule 1006(a)
and (c) to add the same phrase to the list of counterparties whose
failure resulting from bankruptcy, insolvency, receivership, suspension
of operations, or any similar event may result in allocation of losses
to the Clearing Fund. Rule 1006(c) and (f) would be further amended to
provide that failure of an investment counterparty under those
paragraphs would be limited to a failure with respect to Clearing
Member Cash (i.e., cash invested under Rule 604(a) or Rule
1002(c)).\31\ Any investment loss resulting from investment of OCC Cash
would be treated as an operational loss that would be addressed under
OCC's Capital Management Policy, rather than a loss that would be
allocated to the Clearing Fund.\32\
---------------------------------------------------------------------------

    \31\ The same limitation would apply to Rule 1006(a), which
incorporates the reasons specified in Rule 1006(c) by reference.
    \32\ See Exchange Act Release No. 88029, 85 FR at 5502-03
(discussing OCC's plan for replenishing its capital in the event
that shareholders' equity falls below certain thresholds).
---------------------------------------------------------------------------

    OCC would also amend the condition that triggers borrowing
authority under Rule 1006(f)--currently clause (iii) of the first
sentence of Rule 1006(f)--which would be renumbered as Rule
1006(f)(1)(C). That condition would be amended to apply when the
Corporation reasonably believes it necessary to borrow to meet its
liquidity needs for ``daily settlement'' rather than ``same-day
settlement,'' as in the current text. OCC may reasonably believe that a
disruption at a bank, securities or commodities clearing organization,
or investment counterparty could last multiple days, resulting in
liquidity needs for daily settlement over more than one day. This
amendment would ensure that OCC has authority to initiate a borrowing
for the amount OCC believes necessary to meet its liquidity needs over
the timeframe OCC believes the disruption will affect OCC's ability to
meet daily settlement requirements with Clearing Members, rather than
only that amount that OCC believes it needs on a day-by-day basis.
    OCC would further amend the condition in Rule 1006(f)(1)(C) to
apply when OCC reasonably believes such a liquidity need will arise
because of one of the identified counterparty's failure ``to perform
any obligation to the Corporation when due,'' rather than such a
counterparty's failure ``to achieve daily settlement.'' This change
aligns with the condition for allocation of losses under Rule 1006(c)
and eliminates any ambiguity that might arise concerning the settlement
obligations to which the current Rule refers. As under the current
Rule, use of funds obtained through such a

borrowing would continue to be limited to the purposes described in
Rule 1006(f)(1)(C), as amended, i.e., to meet OCC's liquidity needs for
daily settlement with Clearing Members.
    In addition to the substantive changes discussed above, OCC would
also restate Rule 1006(f) for clarity. The current paragraph would be
divided into four subparagraphs with courtesy headings: (1) Conditions;
(2) Uses; (3) Term; Clearing Fund Charge; and (4) Substitution
Requests. The conditions in Rule 1006(f)(1) would begin with the first
sentence of current Rule 1006(f), less the conjoined clause beginning
with ``and use such assets,'' the substance of which would be moved to
paragraph (f)(2). The remaining clause before the conjunction would be
amended to describe OCC's investment of Clearing Fund cash
contributions in the active voice. The three conditions for a borrowing
identified in Rule 1006(f), currently numbered (i) through (iii), would
then follow after the conjunction as items (A) through (C). Item (A)
would be further amended to remove legalese and state the condition
more plainly. Item (C) would be amended substantively as discussed
above.
    The prescribed uses for the borrowed funds described in several
places throughout current Rule 1006(f) would be aggregated in Rule
1006(f)(2). As currently found in the conjoined clause in the first
sentence of current Rule 1006(f), Rule 1006(f)(2)(A) would provide that
OCC may use funds it takes possession of under Rule 1006(f) to (i) meet
obligations, losses or liquidity needs; or (ii) borrow or otherwise
obtain funds through any means determined to be reasonable at the
discretion of the Chairman, Chief Executive Officer or the Chief
Operating Officer (including, without limitation, pledging such assets
as security for loans and/or using such assets to effect repurchase,
securities lending or other transactions). Proposed Rule 1006(f)(ii)
would also be restated to remove a gendered pronoun. Rule 1006(f)(2)(B)
would describe the limitations on use of funds borrowed under the
renumbered conditions in Rule 1006(f)(1)(A) and (C).
    Rule 1006(f)(3) would contain the term for a borrowing, as well as
the conditions that would trigger a loss chargeable to the Clearing
Fund. The 30-day period before which OCC would be obligated to charge a
borrowed amount as a loss to the Clearing Fund would be located at Rule
1006(f)(3)(A), with certain non-substantive edits to the text. The
conditions that would trigger the loss allocation to the Clearing Fund
would be located at Rule 1006(f)(3)(B) and would be restated to move
the lengthy conditions after the main clause, among other non-
substantive revisions.
    Finally, Rule 1006(f)(4) would relocate OCC's authority to refuse
Clearing Member substitution requests regarding securities contributed
to the Clearing Fund that the Corporation has taken possession of under
Rule 1006(f). In addition to relocating that provision to the end of
Rule 1006(f), this proposed rule change would restate that provision to
reflect the reorganization of Rule 1006(f).
(2) Statutory Basis
    Section 17A(b)(3)(F) of the Exchange Ac,\33\ requires, among other
things, that the rules of a clearing agency be designed to promote the
prompt and accurate clearance and settlement of securities
transactions, 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, to perfect the mechanism of a national system for the
prompt and accurate clearance and settlement of securities
transactions, and, in general, to protect investors and the public
interest. For the reasons discussed below, OCC believes the proposed
rule change is consistent with Section 17A(b)(3)(F) \34\ of the
Exchange Act and Rule 17Ad-22(e)(7)(viii),\35\ Rule 17Ad-22(e)(13),\36\
and Rule 17Ad-22(e)(16) \37\ thereunder.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78q-1(b)(3)(F).
    \34\ 15 U.S.C. 78q-1(b)(3)(F).
    \35\ 17 CFR 240.17Ad-22(e)(7)(viii).
    \36\ 17 CFR 240.17Ad-22(e)(13).
    \37\ 17 CFR 240.17Ad-22(e)(16).
---------------------------------------------------------------------------

Consistency With Section 17A(b)(3)(F) of the Exchange Act
    The Cash and Investment Management Policy is designed to safeguard
cash and related investments within OCC's custody or control. The
Policy applies to, among other things, cash deposited by Clearing
Members in respect of margin and Clearing Fund requirements, any
Government securities in which OCC invests such cash, and the Minimum
Corporate Contribution, each of which are liquid resources available to
facilitate settlement and to cover potential losses in the event of a
Clearing Member default. The Policy also extends to OCC's own cash,
including cash OCC maintains to cover potential general business losses
so that OCC can continue operations and services as a going concern if
those losses materialize, in accordance with OCC's Capital Management
Policy. By providing safeguarding standards for managing such cash and
related investments, the Policy would help ensure those resources will
be available to facilitate settlement, cover potential default losses,
or cover potential general business losses, as applicable. Therefore,
OCC believes the Policy is designed to promote the prompt and accurate
clearance and settlement of securities transactions, 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, and, in
general, to protect investors and the public interest, consistent with
Section 17A(b)(3)(F) of the Exchange Act.\38\
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The proposed rule change is also designed to ensure that OCC can
continue to promptly settle the securities and derivatives transactions
it clears by enhancing the existing tools OCC has to address potential
liquidity shortfalls. Specifically, the proposed rule change would
expand the existing borrowing authority in OCC's By-Laws to authorize
borrowing in the extraordinary event that OCC faces a liquidity need in
order to complete daily settlement with its Clearing Members resulting
from the failure or disruption of an investment counterparty with whom
OCC has invested Clearing Member Cash that is not a bank.
    It is conceivable, though extremely unlikely, that an investment
counterparty may fail to return Clearing Member Cash that OCC has
invested in Government securities with the counterparty in a DVP
transaction as a result of a disruption or failure at that investment
counterparty. The proposed rule change would enable OCC to borrow
against the Clearing Fund in this scenario in order to avoid disrupting
OCC's ordinary settlement cycle. In the extremely unlikely event that
OCC incurs a loss resulting from the investment of Clearing Member
Cash, OCC would retain authority to allocate such loss to the Clearing
Fund, at OCC's discretion. Accordingly, OCC believes the proposed rule
change is designed to promote the prompt and accurate clearance and
settlement of securities transactions, in accordance with the
requirements of Section 17A(b)(3)(F) of the Exchange Act.\39\
---------------------------------------------------------------------------

    \39\ Id.
---------------------------------------------------------------------------

Consistency With Rule 17Ad-22(e)(16)

    Rule 17Ad-22(e)(16) under the Exchange Act requires, in part, that
OCC establish, implement, maintain and enforce written policies and
procedures reasonably designed to safeguard OCC's

own and its participants' assets, minimize the risk of loss and delay
in access to these assets, and invest such assets in instruments with
minimal credit, market, and liquidity risks.\40\ As discussed above,
the Policy outlines safeguarding standards for cash and related
investments intended to minimize credit and liquidity risks. In
addition, the Policy sets forth OCC's conservative investment strategy,
according to which OCC's primary objective is to preserve principal and
maintain adequate liquidity. The Policy also requires cash and related
investments to be maintained with counterparties that have been
initially approved and routinely monitored in accordance with OCC's
Third Party Risk Management Policy and procedures governing banking
relationships. Accordingly, OCC believes that the Policy is consistent
with Rule 17Ad-22(e)(16).
---------------------------------------------------------------------------

    \40\ 17 CFR 240.17Ad-22(e)(16).
---------------------------------------------------------------------------

Consistency With Rule 17Ad-22(e)(7)(viii)
    Additionally, Rule 17Ad-22(e)(7)(viii) requires that OCC address
foreseeable liquidity shortfalls that would not be covered by OCC's
liquid resources and seek to avoid unwinding, revoking, or delaying the
settlement of payment obligations.\41\ As stated above, OCC believes
that it could be foreseeable, though extremely unlikely, that an
investment counterparty that is not a bank may fail to return Clearing
Member Cash as the result of the investment counterparty's disruption
or failure. An alternative available to OCC for addressing uncovered
liquidity shortfalls would be to exercise authority under Rule 505 to
extend the settlement window to the close of Fedwire.\42\ The proposed
rule change would improve OCC's ability to address such situations by
expanding OCC's borrowing authority to enable OCC to borrow against the
Clearing Fund to address a failure or disruption at a non-bank
investment counterparty rather than disrupting its ordinary settlement
cycle. Accordingly, OCC believes that proposed changes to OCC Rules are
consistent with Rule 17Ad-22(e)(7)(viii).
---------------------------------------------------------------------------

    \41\ 17 CFR 240.17Ad-22(e)(7)(viii).
    \42\ See OCC Rule 505 (Extension of Settlements).
---------------------------------------------------------------------------

Consistency With Rule 17Ad-22(e)(13)
    Finally, Rule 17Ad-22(e)(13) requires, in part, that OCC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to ensure OCC has the authority to take timely
action to contain losses and liquidity demands and continue to meet its
obligations.\43\ As described above, this proposal would amend OCC's
Rules concerning loss allocation in the extremely unlikely event that
the failure or disruption of a non-bank investment counterparty results
in a loss to OCC arising from the investment of Clearing Member Cash.
The expansion of existing authority to allocate such losses
attributable to a non-bank investment counterparty helps establish a
more transparent and clear loss allocation process that ensures OCC's
authority to take action to contain losses and continue to meet its
clearance and settlement obligations. Accordingly, OCC believes the
proposed changes to OCC's Rules are consistent with Rule 17Ad-
22(e)(13).
---------------------------------------------------------------------------

    \43\ 17 CFR 240.17Ad-22(e)(13).
---------------------------------------------------------------------------

(B) Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Exchange Act \44\ requires that the
rules of a clearing agency not impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Exchange
Act. OCC does not believe the proposed rule change would have any
impact or impose any burden on competition. The primary purpose of the
proposed rule change is to formalize OCC's Cash and Investment
Management Policy and enhance OCC's access to the Clearing Fund by
expanding the existing authority concerning bank failures to also apply
in the case of failures by other investment counterparties. The
proposed rule change would not affect Clearing Members' access to OCC's
services or disadvantage or favor any particular user in relationship
to another user. As such, OCC believes that the proposed changes would
not have any impact or impose any burden on competition.
---------------------------------------------------------------------------

    \44\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

(C) Clearing Agency's Statement on Comments on the Proposed Rule Change
Received From Members, Participants or Others

    Written comments on the proposed rule change 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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove such proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be disapproved.
    OCC shall post notice on its website of proposed changes that are
implemented. The proposal shall not take effect until all regulatory
actions required with respect to the proposal are completed.

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 email to [email protected]. Please include
File Number SR-OCC-2021-014 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2021-014. This file
number should be included on the subject line if email 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 website (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 website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at

https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules.
    All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly.
    All submissions should refer to File Number SR-OCC-2021-014 and
should be submitted on or before February 2, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\45\
---------------------------------------------------------------------------

    \45\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00378 Filed 1-11-22; 8:45 am]
BILLING CODE 8011-01-P