[Federal Register Volume 87, Number 57 (Thursday, March 24, 2022)]
[Rules and Regulations]
[Pages 16632-16634]
[FR Doc No: 2022-06043]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2021-0021; Project Identifier MCAI-2020-01088-R;
Amendment 39-21994; AD 2021-03-16R1]
RIN 2120-AA64

Airworthiness Directives; Airbus Helicopters

AGENCY: Federal Aviation Administration (FAA), Department of
Transportation (DOT).

ACTION: Final rule; removal; request for comments.

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SUMMARY: The FAA is removing Airworthiness Directive (AD) 2021-03-16,
which applied to all Airbus Helicopters Model AS350B, AS350B1, AS350B2,
AS350B3, AS350BA, AS350D, AS355E, AS355F, AS355F1, AS355F2, AS355N, and
AS355NP helicopters. AD 2021-03-16 required inspecting each sliding
door and replacing the upper rail or front roller or removing the front
roller from service if necessary. Since the FAA issued AD 2021-03-16,
inspection results and further investigation have confirmed that the
in-flight loss of a sliding door, which prompted AD 2021-03-16, was an
isolated case resulting from incorrect operation and maintenance error.
Therefore, the FAA has determined that no unsafe condition is likely to
exist or develop on the sliding doors on other helicopters in the
fleet. Accordingly, AD 2021-03-16 is removed.

DATES: This AD becomes effective March 24, 2022.
    The FAA must receive comments on this AD by May 9, 2022.

ADDRESSES: You may send comments, using the procedures found in 14 CFR
11.43 and 11.45, by any of the following methods:
     Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments.
     Fax:<PHONE_NUMBER>.
     Mail: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590.
     Hand Delivery: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.

Examining the AD Docket

    You may examine the AD docket at https://www.regulations.gov by
searching for and locating Docket No. FAA-2021-0021; or in person at
Docket Operations between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket contains this final rule, the
European Union Aviation Safety Agency (EASA) AD, any comments received,
and other information. The address for Docket Operations is U.S.
Department of Transportation, Docket Operations, M-30, West Building
Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC
20590.

FOR FURTHER INFORMATION CONTACT: Matt Fuller, AD Program Manager,
General Aviation & Rotorcraft Unit, Airworthiness Products Section,
Operational Safety Branch, FAA, 10101 Hillwood Pkwy., Fort Worth, TX
76177; telephone<PHONE_NUMBER>; email [email protected].

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites you to send any written data, views, or arguments
about this final rule. Send your comments to an address listed under
ADDRESSES. Include ``Docket No. FAA-2021-0021 and Project Identifier
MCAI-2020-01088-R'' at the beginning of your comments. The most helpful
comments reference a specific portion of the final rule, explain the
reason for any recommended change, and include supporting data. The FAA
will consider all comments received by the closing date and may amend
this final rule because of those comments.
    Except for Confidential Business Information (CBI) as described in
the following paragraph, and other information as described in 14 CFR
11.35, the FAA will post all comments received, without change, to
https://www.regulations.gov, including any personal information you
provide. The agency will also post a report summarizing each
substantive verbal contact received about this final rule.

Confidential Business Information

    CBI is commercial or financial information that is both customarily
and actually treated as private by its owner. Under the Freedom of
Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public
disclosure. If your comments responsive to this AD contain commercial
or financial information that is customarily treated as private, that
you actually treat as private, and that is relevant or responsive to
this AD, it is important that you clearly designate the submitted
comments as CBI. Please mark each page of your submission containing
CBI as ``PROPIN.'' The FAA will treat such marked submissions as
confidential under the FOIA, and they will not be placed in the public
docket of this AD. Submissions containing CBI should be sent to Matt
Fuller, AD Program Manager, General Aviation & Rotorcraft Unit,
Airworthiness Products Section, Operational Safety Branch, FAA, 10101
Hillwood Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>; email
[email protected]. Any commentary that the FAA receives which is
not specifically designated as CBI will be placed in the public docket
for this rulemaking.

Background

    EASA, which is the Technical Agent for the Member States of the
European Union, has issued EASA AD 2020-0175-CN, dated September 13,
2021 (EASA AD 2020-0175-CN) to cancel EASA AD 2020-0175, dated August
5, 2020 (EASA AD 2020-0175) which was issued to correct an unsafe
condition for all serial-numbered Airbus Helicopters Model AS 350 and
AS 355 helicopters if equipped with a left-hand (LH) and/or right-hand
(RH) sliding door. EASA AD 2020-0175 prompted FAA
    AD 2021-03-16, Amendment 39-21419 (86 FR 9433, February 16, 2021)
(AD 2021-03-16). AD 2021-03-16 applied to Airbus Helicopters Model
AS350B, AS350B1, AS350B2, AS350B3, AS350BA, AS350D, AS355E, AS355F,
AS355F1, AS355F2, AS355N, and AS355NP helicopters with any sliding door
installed. AD 2021-03-16 required, within 30 hours time-in-service,
inspecting the upper rail of each RH and LH door for parallelism,
deformation, corrosion, and cracking and repairing or replacing the
upper rail before further flight if necessary; and

with each sliding door removed, inspecting the front roller to
determine if it is below the minimum diameter and height, if it has any
corrosion or flat spot, and if it is correctly installed. If the front
roller was below the minimum diameter, below the minimum height, or had
any flat spot or corrosion, AD 2021-03-16 required removing the front
roller from service before further flight. If the front roller was not
correctly installed, AD 2021-03-16 required reinstalling it correctly
before further flight.

Actions Since AD 2021-03-16 Was Issued

    Since the FAA issued AD 2021-03-16, reported inspection results and
further investigation have confirmed that the in-flight loss of the
sliding door, which prompted EASA AD 2020-0175 and AD 2021-03-16, was
an isolated case resulting from incorrect operation and maintenance
error, and therefore no unsafe condition is likely to exist or develop
on the affected helicopters. The FAA is issuing this AD to remove AD
2021-03-16.

Justification for Immediate Adoption and Determination of the Effective
Date

    Section 553(b)(3)(B) of the Administrative Procedure Act (APA) (5
U.S.C. 551 et seq.) authorizes agencies to dispense with notice and
comment procedures for rules when the agency, for ``good cause,'' finds
that those procedures are ``impracticable, unnecessary, or contrary to
the public interest.'' Under this section, an agency, upon finding good
cause, may issue a final rule without providing notice and seeking
comment prior to issuance. Further, section 553(d) of the APA
authorizes agencies to make rules effective in less than thirty days,
upon a finding of good cause.
    There are currently 965 helicopters of U.S. registry affected by AD
2021-03-16. However, the FAA notes that AD 2021-03-16 required
unnecessary inspections because the identified unsafe condition does
not exist on these helicopters. Therefore, it is unlikely that the FAA
would receive any adverse comments or useful information about this AD
from U.S. operators that would cause a need for public comment prior to
adoption. Accordingly, notice and opportunity for prior public comment
are unnecessary, pursuant to 5 U.S.C. 553(b)(3)(B). In addition, for
the foregoing reasons, the FAA finds that good cause exists pursuant to
5 U.S.C. 553(d) for making this amendment effective in less than 30
days.

FAA's Conclusions

    Upon further consideration, the FAA has determined that AD 2021-03-
16 is not necessary. Accordingly, this AD removes AD 2021-03-16.
Removal of AD 2021-03-16 does not preclude the FAA from issuing another
related action or commit the FAA to any course of action in the future.

Regulatory Flexibility Act

    The requirements of the Regulatory Flexibility Act (RFA) do not
apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt
a rule without prior notice and comment. Because FAA has determined
that it has good cause to adopt this rule without prior notice and
comment, RFA analysis is not required.

Related Costs of Compliance

    This AD adds no cost. This AD removes AD 2021-03-16 from 14 CFR
part 39; therefore, operators are no longer required to show compliance
with that AD.

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. 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.
    The FAA is issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: General requirements.
Under that section, Congress charges the FAA with promoting safe flight
of civil aircraft in air commerce by prescribing regulations for
practices, methods, and procedures the Administrator finds necessary
for safety in air commerce. This regulation is within the scope of that
authority.

Regulatory Findings

    The FAA determined that this AD will not have federalism
implications under Executive Order 13132. This AD will not have a
substantial direct effect on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.
    For the reasons discussed above, I certify that this AD:
    1. Is not a ``significant regulatory action'' under Executive Order
12866; and
    2. Will not affect intrastate aviation in Alaska.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by:
0
a. Removing Airworthiness Directive (AD) 2021-03-16, Amendment 39-21419
(86 FR 9433, February 16, 2021), and
0
b. Adding the following new AD:

2021-03-16R1 Airbus Helicopters: Amendment 39-21994; Docket No. FAA-
2021-0021; Project Identifier MCAI-2020-01088-R.

(a) Effective Date

    This airworthiness directive (AD) becomes effective March 24,
2022.

(b) Affected AD

    This AD replaces AD 2021-03-16, Amendment 39-21419 (86 FR 9433,
February 16, 2021).

(c) Applicability

    This airworthiness directive (AD) applies to Airbus Helicopters
Model AS350B, AS350B1, AS350B2, AS350B3, AS350BA, AS350D, AS355E,
AS355F, AS355F1, AS355F2, AS355N, and AS355NP helicopters,
certificated in any category, with any sliding door installed.

(d) Subject

    Joint Aircraft System Component (JASC) Code 5210, Passenger/Crew
Doors.

(e) Related Information

    (1) For more information about this AD, contact Matt Fuller, AD
Program Manager, General Aviation & Rotorcraft Unit, Airworthiness
Products Section, Operational Safety Branch, FAA, 10101 Hillwood
Pkwy., Fort Worth, TX 76177; telephone<PHONE_NUMBER>; email
[email protected].
    (2) The subject of this AD is addressed in European Union
Aviation Safety Agency (EASA) AD No. 2020-0175-CN, dated September
13, 2021. You may view the EASA AD on the internet at https://www.regulations.gov by searching for and locating it in Docket No.
FAA-2021-0021.

(f) Material Incorporated by Reference

    None.

    Issued on March 17, 2022.
Lance T. Gant,
Director, Compliance & Airworthiness Division, Aircraft Certification
Service.
[FR Doc. 2022-06043 Filed 3-23-22; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register: August 7, 2008 (Volume 73, Number 153)]
[Notices]
[Page 46133-46136]
[DOCID:fr07au08-126]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-58258; File No. SR-OCC-2008-12]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing and Order Granting Accelerated Approval of a Proposed
Rule Change Relating to Cross-Margining

July 30, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of
1934,\1\ notice is hereby given that on June 10, 2008, 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 primarily by
OCC. The Commission is publishing this notice and order to solicit
comments on the proposed rule change from interested persons and to
grant accelerated approval of the proposal.
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    \1\ 15 U.S.C. 78s(b)(1).
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I. Self-Regulatory Organization's Statement of the Terms of the
Substance of the Proposed Rule Change

    The proposed rule change would amend OCC Rule 705 to add shares of
money market funds as a form of collateral that may be deposited and
recognized with respect to cross-margin (``XM'') accounts. In addition,
the proposed rule change revises the cross-

margining agreement between OCC and the Chicago Mercantile Exchange,
Inc., (``CME'') to reflect the allowance of money market fund shares as
acceptable collateral.

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

    In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. OCC has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.

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

    OCC Rule 705 specifies the forms of collateral that may be
deposited with respect to cross-margin (``XM'') accounts to meet
required margin. Such forms of collateral currently include cash,
government securities, government sponsored debt securities, letters of
credit, and, if mutually acceptable to the XM clearing organizations,
common stock. OCC staff regularly reviews these forms of collateral
with an approach of determining a suitable balance between its clearing
members' desire for a diverse combination of readily-available and
cost-effective financial instruments and OCC's interest to access
financial instruments that are relatively stable in value and easily
converted to cash. Based on such a review, OCC is proposing to expand
the forms of margin collateral acceptable for XM accounts to include
shares in money market funds (``MMF Shares'').
    MMF Shares have been increasingly used to collateralize accounts at
futures clearinghouses following the December 2000 amendments to
Commodity Futures Trading Commission Regulation 1.25, which allow a
futures commission merchant or a derivatives clearing organization to
invest segregated funds in money market funds.\2\ OCC has accepted MMF
Shares as collateral for several years.\3\ XM participants therefore
desire to hypothecate shares in such funds as margin for their XM
accounts as well.
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    \2\ Rules Relating to Intermediaries of Commodity Interest
Transactions, 65 FR 77993 (Dec. 13, 2000). OCC estimates that MMF
shares account for approximately 30% of the performance bond
deposits at the two largest futures clearinghouses, CME and the New
York Mercantile Exchange.
    \3\ Securities Exchange Act Release No. 47599 (Mar. 31, 2003),
68 FR 16849 (Apr. 7, 2003).
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    Under the rule change, the underlying money market funds will be
required to continuously meet the qualification standards of both OCC
and the participating Commodity Clearing Organization (``CCO'') and
will be valued at the lowest value given to MMF Shares under OCC's or
the CCO's rules. Initially, OCC proposes to permit MMF Shares to be
deposited as collateral in connection with its XM program with CME.\4\
Operationally, the shares will be transferred into an account held with
the fund issuer that will be jointly controlled by OCC and CME for
purposes of perfecting their security interest in deposited shares.
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    \4\ Presently, OCC maintains XM programs with the CME, The
Clearing Corporation (``CCorp'') and ICE Clear U.S., Inc. (``ICE
Clear''). However, there is currently no clearing member
participating in the OCC/CCorp XM program. If that XM program
becomes active again in the future and there is interest in MMF
Shares as a form of margin collateral, OCC would then file with the
Commission a proposed rule change to amend the OCC/CCorp XM
agreement to include MMF Shares. OCC and ICE Clear have determined
to defer including MMF Shares in their XM program until the clearing
organizations have determined that there is clearing member interest
in using such collateral. Because MMF Shares will not be an
allowable form of collateral in all OCC XM programs, Rule 705 has
been amended to provide that forms of margin collateral must be
mutually acceptable to OCC and each participating CCO. This
requirement is currently applied to deposits of common stock.
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    Clearing members will request the purchase of money market mutual
fund shares from either OCC or CME. The shares will be jointly
purchased by the clearinghouses using the funds of the requesting
clearing member(s) that have been drafted from the bank account
established in respect of the applicable cross-margining account (i.e.,
proprietary or segregated funds account). These shares will then be
deposited in an account jointly controlled by OCC and the CME, and the
clearing member(s) will receive margin credit for the collateral value
less the applicable haircut of the shares purchased. Shares will be
redeemed for cash from the fund issuer upon the instruction of either
(i) the clearing member(s), with the proceeds being returned to the
appropriate bank account, or (ii) the clearing organizations, upon the
suspension of the clearing member(s) with proceeds being deposited into
the appropriate liquidating settlement account for distribution in
accordance with the XM agreement between OCC and CME.
    To permit the use of MMF Shares as a form of margin once all
necessary regulatory approvals are obtained, OCC and CME have amended
and restated their Cross-Margining Agreement (``Original Agreement''),
which also has been updated to reflect the withdrawal in 2004 of the
New York Clearing Corporation (``NYCC'') as a party thereto.\5\ With
the elimination of NYCC as a party to the Original Agreement, the New
Agreement accommodates the current OCC/CME bilateral cross-margining
program but no longer provides for a trilateral cross-margining
program. Other significant differences between the Original Agreement
and the New Agreement are as follows.
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    \5\ The Amended and Restated Cross-Margining Agreement (``New
Agreement'') is attached to OCC's rule filing as Exhibit 5A. From
1997 to 2004, NYCC (now known as ICE Clear, U.S., Inc.) participated
in a trilateral XM program with OCC and CME. See Securities Exchange
Act Release No. 38584 (May 8, 1997), 62 FR 26602 (May 14, 1997)
(order approving a cross-margining agreement among OCC, CME, and the
Commodity Clearing Corporation). The agreement governing this
trilateral XM also sets forth the terms and conditions governing the
current bilateral program between OCC and CME.
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    Section 1 of the New Agreement contains definitional terms. Section
1 has been modified to add a definitional term for MMF Shares (Section
1(q)) and to revise other definitions to reflect the bilateral nature
of the OCC/CME XM program. As defined, MMF Shares refer to shares in a
money market fund that meet the requirements established under OCC's
and CME's rules.\6\ References to NYCC have been eliminated from all
the definition provisions and throughout the cross-margining agreement.
The term ``Carrying Clearing Organization'' has been eliminated as
unnecessary. The terms ``Pair of Non-Proprietary X-M Accounts'' and
``Pair of X-M Accounts,'' respectively, have replaced the terms ``Sets
of Non-Proprietary X-M Accounts'' and ``Sets of Proprietary X-M
Accounts'' (Sections 1(s) and (w)) in order to reflect the bilateral
nature of the OCC/CME XM program. Changes reflecting the deletion of
the terms ``Carrying Clearing Organization,'' ``Sets of Non-Proprietary
X-M Accounts,'' and ``Sets of Proprietary X-M Accounts'' have been made
throughout the New Agreement. The definition of ``Market Professional''
(Section 1(p)) has been revised to eliminate references to NYFE
members, which is the former name of the market for which NYCC provides
clearing services. Other than referencing pairs of XM accounts, as
applicable, no substantive changes have been made to Sections 2, 3, and
4. Section 5, which relates to the calculation of margin, is also
substantively unchanged other than

the deletion of an unnecessary provision regarding NYCC's election to
use the margin calculation produced by the designated clearing
organization's margin system.
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    \6\ OCC's criteria for accepting deposits of MMF shares as
margin are set forth in OCC Rule 604(b)(3). This rule, among other
things, establishes concentration, control, and valuation standards
governing money market fund shares.
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    Section 6 relates to the forms and method of holding initial
margin. As revised, Section 6 permits the deposit of MMF Shares as a
form of initial margin and requires such shares to be held for the
joint benefit of the clearing organizations on the books of the issuing
fund or its agent or in such other manner as mutually agreed upon by
the clearing organizations.\7\ Unnecessary references to the CME acting
as NYCC's agent for the purpose of executing instructions to release
forms of collateral from deposit have been deleted.\8\
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    \7\ Proposed Section 6(a) and (b).
    \8\ Id.
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    Section 7 describes daily settlement procedures, which are subject
to joint coordination and authorization. References to the CME acting
as NYCC's agent for purposes of authorizing fund transfers and other
provisions relating to trilateral cross-margining have been deleted.\9\
The time at which the Clearing Organizations are to share position and
other related information to the XM accounts has been advanced to 1
a.m. (Central Time) from 3 a.m. (Central Time).\10\
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    \9\ Proposed Section 7(a) and (b).
    \10\ Proposed Section 7(d).
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    Section 8 concerns the suspension and liquidation of one or more XM
clearing members. Section 8 has been modified to eliminate the loss or
surplus sharing provisions that were effective in the event NYCC was a
Carrying Clearing Organization in respect of an XM account, leaving in
place terms that provide for equal loss or surplus sharing subject to
the limitation that sharing in a surplus by a clearing organization for
purposes of covering its other losses experienced is capped at an
amount equal to such other losses.\11\ In addition, Section 8 has been
amended to provide that OCC and CME would demand immediate payment of
any letter of credit deposited as margin unless both agreed not to take
such action. Provisions that permitted the clearing organizations to
defer drawing on a letter of credit on receipt of satisfactory written
assurances from the issuing bank extending its irrevocable commitment
under the letter have been deleted in favor of the formulation
described in the preceding sentence.\12\ No substantive changes have
been made to Sections 9 through 12.
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    \11\ Proposed Section 8(d) and (f).
    \12\ Proposed Section 8(c).
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    Section 13 concerns the termination of the New Agreement.
Provisions that specifically related to termination by NYCC have been
deleted.\13\ Proposed Section 13, paragraph (d), which concerns the
treatment of collateral deposited as margin on termination, has been
modified to provide for the return of deposited MMF Shares to the
depositing clearing member. No substantive changes have been made to
Section 14. Section 15, which addresses information sharing, has been
modified to reflect the OCC/ICE Clear XM Agreement other than as it
relates to use of a recorded phone line for providing notices pursuant
to Section 15.\14\ No substantive changes have been made to Sections 16
and 17. OCC states that any other changes made to the XM Agreement not
specifically described above are not material in nature and therefore
were not described in this narrative of the proposed rule change.
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    \13\ Proposed Section 13(a), (b), and (c).
    \14\ See Securities Exchange Act Release No. 57118 (Jan. 9,
2008), 73 FR 2970 (Jan. 16, 2008) (order approving the cross-
margining agreement between OCC and ICE Clear U.S., Inc.).
---------------------------------------------------------------------------

    In addition to Exhibit 5A, the following are attached as exhibits
to the proposed rule change filing:

------------------------------------------------------------------------
                Exhibit                               Name
------------------------------------------------------------------------
EXHIBIT 5B............................  Proprietary Cross-Margin Account
                                         Agreement and Security
                                         Agreement (Joint Clearing
                                         Member).
EXHIBIT 5C............................  Proprietary Cross-Margin Account
                                         Agreement and Security
                                         Agreement (Affiliated Clearing
                                         Members).
EXHIBIT 5D............................  Non-Proprietary Cross-Margin
                                         Account Agreement and Security
                                         Agreement (Joint Clearing
                                         Member).
EXHIBIT 5E............................  Non-Proprietary Cross-Margin
                                         Account Agreement and Security
                                         Agreement (Affiliated Clearing
                                         Members).
EXHIBIT 5F............................  Market Professional's Agreement
                                         for Cross-Margining (Joint
                                         Clearing Member).
EXHIBIT 5G............................  Market Professional's Agreement
                                         for Cross-Margining (Affiliated
                                         Clearing Members).
------------------------------------------------------------------------

    These forms of agreements have been slightly modified from the
forms currently used in OCC/CME cross-margining. Modifications include:
(i) Deleting provisions and terminology (e.g., ``Carrying Clearing
Organization'') that were applicable to trilateral cross-margining,
(ii) reflecting the definition of ``market professional'' as used in
the New Agreement, and (iii) eliminating the requirement that clearing
members and market professionals furnish the clearing organizations
with financing statements relating to positions, collateral and
property maintained with respect to accounts subject to cross-
margining. The adoption by all 50 states of revisions to Articles 8 and
9 of the Uniform Commercial Code (``UCC'') has eliminated the need to
obtain financing statements that were required to perfect security
interests in futures and options under earlier versions of those
Articles.
    OCC states that the proposed rule change is consistent with the
purposes and requirements of Section 17A of the Act \15\ because it
updates the (i) forms of collateral that are currently permitted to be
deposited with respect to XM accounts under the OCC/CME cross-margining
program to include MMF Shares, a form of collateral currently permitted
by both clearing organizations to be deposited with respect to accounts
other than cross-margin accounts; and (ii) documents used in connection
with OCC/CME cross-margining. Cross-margining enhances the safety of
the clearing system while providing lower clearing margin costs to
participants. Expanding acceptable collateral for cross-margin accounts
should encourage their use and is therefore beneficial to the clearing
system and its participants. Updating the documents governing the OCC/
CME cross-margining program provides greater clarity and certainty with
respect to the program's operation. Moreover, OCC states that the
proposed rule change is not inconsistent with OCC's by-laws and rules,
including any proposed to be amended.
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    \15\ 15 U.S.C. 78q-1.
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B. Self-Regulatory Organization's Statement on Burden on Competition

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

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

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

III. Commission's Findings and Order Granted Accelerated Approval of
the Proposed Rule Change

    Section 17A(b)(3)(F) of the Act \16\ requires the rules of a
clearing agency to assure the safeguarding of securities and funds that
are in the custody or control of the clearing agency or for which it is
responsible. The Commission believes the proposal is consistent with
this requirement because money market fund shares are already an
acceptable form of margin asset that may be deposited at OCC and are
subject to OCC's prudent controls. Moreover, the use of money market
fund shares for cross-margining purposes should further diversify the
portfolio of assets that may be deposited to collateralize cross-margin
accounts thereby enhancing OCC's ability to access financial
instruments that are relatively liquid and stable in value.
Accordingly, the proposed rule change should not affect OCC's ability
to assure the safeguarding of securities and funds in its custody or
control or for which it is responsible.
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    \16\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Pursuant to section 19(b)(2) of the Act,\17\ OCC has requested the
Commission to approve the proposed rule change prior to the thirtieth
day after the date of publication of notice of the filing. The
Commission finds good cause for approving because the new OCC/CME
cross-margining program is based on and is substantially similar to
other cross-margining programs that the Commission has approved and
because such approval will allow OCC to implement the new program in
late July pursuant to its implementation schedule.
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    \17\ 15 U.S.C. 78s(b)(2).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File No. SR-OCC-2008-12 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 No. SR-OCC-2008-12. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official business days between the hours of 10
a.m. to 3 p.m. Copies of such filing also will be available for
inspection and copying at OCC's principal office and on OCC's Web site
at http://www.theocc.com/publications/rules/proposed_changes/
proposed_changes.jsp. All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File No. OCC-
2008-12 and should be submitted on or before August 28, 2008.

V. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule change is consistent with the requirements of the Act and
in particular section 17A of the Act \18\ and the rules and regulations
thereunder.
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    \18\ 15 U.S.C. 78q-1.
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    It is therefore ordered, pursuant to section 19(b)(2) of the
Act,\19\ that the proposed rule change (SR-OCC-2008-12) be, and it
hereby is, approved on an accelerated basis.\20\
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    \19\ 15 U.S.C. 19s(b)(2).
    \20\ In approving the proposed rule change, the Commission
considered the proposal's impact on efficiency, competition and
capital formation. 15 U.S.C. 78c(f).

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\21\
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    \21\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-18237 Filed 8-6-08; 8:45 am]

BILLING CODE 8010-01-P