[Federal Register: January 16, 2007 (Volume 72, Number 9)]
[
Notices]
[Page 1711-1712]
[DOCID:fr16ja07-33]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. ER07-254-000]

Casselman Windpower, LLC; Notice of Issuance of Order

January 8, 2007.
    Casselman Windpower, LLC (Casselman) 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 at market-based rates. Casselman also requested
waivers of various Commission regulations. In particular, Casselman
requested that the Commission grant blanket approval under 18 CFR part
34 of all future issuances of securities and assumptions of liability
by Casselman.
    On December 29, 2006, pursuant to delegated authority, the
Director, Division of Tariffs and Market Development--West, granted the
requests for blanket approval under part 34. 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 or to protest the blanket approvals of issuances of securities or
assumptions of liability by Casselman should file a motion to intervene
or protest with the Federal Energy Regulatory Commission, 888 First
Street, NE., Washington, 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 motions to
intervene or protest is January 30, 2007.
    Absent a request to be heard in opposition by the deadline above,
Casselman 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
Casselman, 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 Casselman'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.

Magalie R. Salas,
Secretary.
 [FR Doc. E7-433 Filed 1-12-07; 8:45 am]

BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 93 (Wednesday, May 14, 2014)]
[Notices]
[Pages 27658-27661]
[FR Doc No: 2014-11036]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72132; File No. SR-DTC-2014-805]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing and No Objection To Advance Notice To Renew DTC's
Existing Credit Facility

May 8, 2014.
    Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, entitled the Payment,
Clearing, and Settlement Supervision Act of 2010 (``Clearing
Supervision Act'') \1\ and Rule 19b-4(n)(1)(i) under the Securities
Exchange Act of 1934,\2\ notice is hereby given that on April 21, 2014,
The Depository Trust Company (``DTC'')

filed with the Securities and Exchange Commission (``Commission'')
advance notice SR-DTC-2014-805 (``Advance Notice'') as described in
Items I, II and III below, which Items have been prepared primarily by
DTC. The Commission is publishing this notice to solicit comments on
the Advance Notice from interested persons and provide notice that the
Commission does not object to the Advance Notice.
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    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    DTC is renewing its 364-day syndicated revolving credit facility
(``Renewal''), as more fully described below.

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

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

A. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice

1. Purpose
    As part of its liquidity risk management regime, DTC maintains a
$1.9 billion 364-day committed revolving line of credit with a
syndicate of commercial lenders which is renewed every year. The terms
and conditions of the current Renewal will be specified in the
Thirteenth Amended and Restated Revolving Credit Agreement, to be dated
as of May 13, 2014 (``Renewal Agreement''), among The Depository Trust
Company, National Securities Clearing Corporation (``NSCC''),\3\ the
Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative
Agent, and are substantially the same as the terms and conditions of
the existing credit agreement, dated as of May 14, 2013 (``Existing
Agreement''),\4\ among the same parties. The substantive terms of the
Renewal are set forth in the Summary of Indicative Principal Terms and
Conditions, dated March 17, 2014, which is not a public document. The
aggregate commitments being sought under the Renewal will be for an
amount of up to $15 billion for NSCC and DTC together, with a $1.9
billion aggregate commitment to DTC, as provided in the Existing
Agreement.
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    \3\ The Renewal Agreement will provide for both DTC and NSCC as
borrowers, with an aggregate commitment of $1.9 billion for DTC and
the amount of any excess aggregate commitment for NSCC. The
borrowers are not jointly and severally liable and each lender has a
ratable commitment to each borrower. DTC and NSCC have separate
collateral to secure their separate borrowings.
    \4\ Last year, the Commission published notice of no objection
to DTC's advance notice filing with respect to DTC's renewal
beginning on May 14, 2013. See Release No. 34-69556 (May 10, 2013),
78 FR 28933 (May 16, 2013) (SR-DTC-2013-802).
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    This agreement and its substantially similar predecessor agreements
have been in place since the introduction of same day funds settlement
at DTC. DTC requires same-day liquidity resources to cover the failure-
to-settle of the Participant or affiliated family of Participants with
the largest net settlement obligation. If a Participant fails to
satisfy its end-of-day net settlement obligation, DTC may borrow under
the line to enable it, if necessary, to fund settlement among non-
defaulting Participants. Any borrowing would be secured principally by
securities that were intended to be delivered to the defaulting
Participant upon payment of its net settlement obligation and
securities previously designated by the defaulting Participant as
collateral. The liquidity facility is built into DTC's primary risk
management controls, the net debit cap and collateral monitor, which
together require that the end-of-day net funds settlement obligation of
a Participant cannot exceed DTC's liquidity resources and is fully
collateralized.
2. Statutory Basis
    The Renewal is consistent with Section 805(b) of the Clearing
Supervision Act \5\ and with Commission Rule 17Ad-22(d)(11) \6\
(regarding default procedures) because it mitigates liquidity risk.
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    \5\ 12 U.S.C. 5461(b). The Financial Stability Oversight Council
(``FSOC'') designated DTC a systemically important financial market
utility (``SIFMU'') on July 18, 2012. See FSOC 2012 Annual Report,
Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf (``FSOC Designation''). Therefore, DTC is
required to comply with the Clearing Supervision Act.
    \6\ 17 CFR 240.17Ad-22(d)(11).
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B. Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants, or Others

    Written comments on the Advance Notice have not yet been solicited
or received. DTC will notify the Commission of any written comments
received by DTC.

C. Advance Notice Filed Pursuant to Section 806(e) of the Payment,
Clearing and Settlement Supervision Act

1. Description of Change
    The terms and conditions to be specified in the Renewal Agreement
are substantially the same as the terms and conditions specified in the
Existing Agreement, except that, in order to help protect against
concentration risk, an enhancement is being added for a back-up
Administrative Agent and Collateral Agent in case the primary
Administrative Agent and Collateral Agent is unable to perform its
obligations.
2. Anticipated Effect on and Management of Risks
    As noted, the committed revolving line of credit is a cornerstone
of DTC risk management and this Renewal is critical to the DTC risk
management infrastructure. The Renewal does not otherwise affect or
alter the management of risk at DTC.

III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action

    The proposed change may be implemented if the Commission does not
object to the proposed change within 60 days of the later of (i) the
date that the proposed change was filed with the Commission or (ii) the
date that any additional information requested by the Commission is
received. DTC shall not implement the proposed change if the Commission
has any objection to the proposed change.
    The Commission may extend the period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission providing DTC with prompt written notice of the
extension. A proposed change may be implemented in less than 60 days
from the date the advance notice is filed, or the date further
information requested by the Commission is received, if the Commission
notifies DTC in writing that it does not object to the proposed change
and authorizes DTC to implement the proposed change on an earlier date,
subject to any conditions imposed by the Commission.
    DTC shall post notice on its Web site of proposed changes that are
implemented.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the Advance
Notice is consistent with the Clearing

Supervision 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_ADDRESS>Please include
File No. SR-DTC-2014-805 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-DTC-2014-805. 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 Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the Advance Notice that are filed
with the Commission, and all written communications relating to the
Advance Notice 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 Web site 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 the filing also will be available for inspection
and copying at the principal office of DTC and on DTC's Web site at
http://dtcc.com/en/legal/sec-rule-filings.aspx.
    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. SR-DTC-2014-805 and
should be submitted on or before June 4, 2014.

V. Commission Findings and Notice of No Objection

    Although the Clearing Supervision Act does not specify a standard
of review for advance notices, the Commission believes that the stated
purpose of the Clearing Supervision Act is instructive.\7\ The stated
purpose is to mitigate systemic risk in the financial system and
promote financial stability by, among other things, promoting uniform
risk management standards for SIFMUs.\8\
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    \7\ 12 U.S.C. 5461(b).
    \8\ Id.
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    Section 805(a)(2) of the Clearing Supervision Act authorizes the
Commission to prescribe risk management standards for the payment,
clearing, and settlement activities of designated clearing entities and
financial institutions engaged in designated activities for which it is
the supervisory agency or the appropriate financial regulator.\9\
Section 805(b) of the Clearing Supervision Act states that the
objectives and principles for the risk management standards prescribed
under Section 805(a) shall be to:
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    \9\ 12 U.S.C. 5464(a)(2).
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     promote robust risk management;
     promote safety and soundness;
     reduce systemic risks; and
     support the stability of the broader financial system.\10\
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    \10\ 12 U.S.C. 5464(b).
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    The Commission adopted risk management standards under Section
805(a)(2) of the Clearing Supervision Act on October 22, 2012
(``Clearing Agency Standards'').\11\ The Clearing Agency Standards
became effective on January 2, 2013 and require registered clearing
agencies to establish, implement, maintain, and enforce written
policies and procedures that are reasonably designed to meet certain
minimum requirements for their operations and risk management practices
on an ongoing basis.\12\ As such, it is appropriate for the Commission
to review advance notices against the objectives and principles for
risk management standards as described in Section 805(b) of the
Clearing Supervision Act,\13\ as well as the applicable Clearing Agency
Standards promulgated under Section 805(a) of the Clearing Supervision
Act.\14\
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    \11\ Release No. 34-68080 (Oct. 22, 2012), 77 FR 66219 (Nov. 2,
2012).
    \12\ The Clearing Agency Standards are substantially similar to
the risk management standards established by the Board of Governors
of the Federal Reserve System governing the operations of SIFMUs
that are not clearing entities and financial institutions engaged in
designated activities for which the Commission or the Commodity
Futures Trading Commission is the Supervisory Agency. See Financial
Market Utilities, 77 FR 45907 (Aug. 2, 2012).
    \13\ See 12 U.S.C. 5464(b).
    \14\ See 12 U.S.C. 5464(a).
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    The Advance Notice is a proposal to enter into a renewed credit
facility, as described above, which is designed to help mitigate the
risk that DTC would fail to meet its settlement obligations event that
a Participant would fail to satisfy its end-of-day net settlement
obligation. Consistent with Section 805(b) of the Clearing Supervision
Act,\15\ the Commission believes the proposal promotes robust risk
management, as well as the safety and soundness of DTC's operations,
while reducing systemic risks and supporting the stability of the
broader financial system, by providing a readily available source of
liquidity for DTC.
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    \15\ See 12 U.S.C. 5464(b).
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    Additionally, Commission Rule 17Ad-22(d)(11) regarding default
procedures,\16\ adopted as part of the Clearing Agency Standards,\17\
requires that registered clearing agencies ``establish, implement,
maintain and enforce written policies and procedures reasonably
designed to, as applicable . . . establish default procedures that
ensure that the clearing agency can take timely action to contain
losses and liquidity pressures and to continue meeting its obligations
in the event of a participant default.'' \18\ Here, as described above,
the renewed credit facility will help DTC continue to meet its
respective obligations in a timely fashion in the event that a
Participant fails-to-settle, thereby helping to contain losses and
liquidity pressures from that failure.
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    \16\ 17 CFR 240.17Ad-22(d)(11).
    \17\ Release No. 34-68080 (Oct. 22, 2012), 77 FR 66219 (Nov. 2,
2012).
    \18\ 17 CFR 240.17Ad-22(d)(11).
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    As described in Item III above, Section 806(e)(1)(G) of the
Clearing Supervision Act provides that a SIFMU may implement a change
contained in an advance notice if it has not received an objection to
the proposed change within the applicable 60 day period.\19\ However,
Section 806(e)(1)(I) of the Clearing Supervision Act allows the
Commission to issue no objection prior to the 60th day.\20\ If the
Commission chooses to issue no objection prior to the 60th day, it must
notify the SIFMU in writing that it does not object and authorize
implementation of the change on an earlier date.\21\ If the Commission
chooses to object prior to the 60th day, it must similarly notify the
SIFMU.\22\
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    \19\ See 12 U.S.C. 5465(e)(1)(G).
    \20\ 12 U.S.C. 5465(e)(1)(I).
    \21\ Id.
    \22\ 12. U.S.C. 5465(e)(1)(E).
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    In its filing with the Commission, DTC requested that the
Commission notify DTC, under Section 806(e)(1)(I) of the Clearing
Supervision Act, that the Commission has no objection to the Advance
Notice no later than Thursday, May 8, 2014, three business days before
the existing credit facility is set to expire on Tuesday, May 13, 2014,
to ensure that there is no period of time

that DTC operates without a credit facility.
    For the reasons stated above, the Commission does not object to the
Advance Notice.

VI. Conclusion

    It is therefore noticed, pursuant to Section 806(e)(1)(I) of the
Clearing Supervision Act,\23\ that the Commission does not object to
the change described in advance notice SR-DTC-2014-805 and that DTC be
and hereby is authorized to implement the change as of the date of this
notice.
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    \23\ 12 U.S.C. 5465(e)(1)(I).

    By the Commission.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-11036 Filed 5-13-14; 8:45 am]
BILLING CODE 8011-01-P