[Federal Register Volume 87, Number 68 (Friday, April 8, 2022)]
[Notices]
[Pages 20901-20905]
[FR Doc No: 2022-07465]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-94594; File No. SR-CBOE-2022-009]

Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of
Filing of a Proposed Rule Change To Amend Rule 4.3.06 To Allow the
Exchange To List and Trade Options on the Goldman Sachs Physical Gold
ETF

April 4, 2022.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on March 25, 2022, Cboe Exchange, Inc. (the ``Exchange'' or
``Cboe Options'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe Exchange, Inc. (the ``Exchange'' or ``Cboe Options'') proposes
to amend Rule 4.3.06 to allow the Exchange to list and trade options on
the Goldman Sachs Physical Gold ETF (``AAAU''). The text of the
proposed rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx), at the Exchange's Office of the
Secretary, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the Exchange 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. The Exchange 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

1. Purpose
    The Exchange proposes to amend Rule 4.3.06 to allow the Exchange to
list and trade options on the Goldman Sachs Physical Gold ETF (``AAAU''
or the ``Trust'') as a Unit deemed appropriate for options trading on
the Exchange. Rule 4.3.06(a) provides that securities deemed
appropriate for options trading include Units (also referred to as
Exchange-Traded Funds (``ETFs'')) \3\ that represent certain types of
interests,\4\ and

Rule 4.3.06(a)(4), in particular, includes Units that represent
interests in the SPDR Gold Trust or the iShares COMEX Gold Trust or the
iShares Silver Trust or the ETFS Silver Trust or the ETFS Gold Trust or
the ETFS Palladium Trust or the ETFS Platinum Trust or the Sprott
Physical Gold Trust. The proposed rule change expands the ETFs under
Rule 4.3.06(a)(4) deemed appropriate for options trading on the
Exchange to include AAAU. The Exchange notes that the proposed rule
change makes a nonsubstantive change to Rule 4.3.06(a)(4) by replacing
superfluous conjunctions with commas to simplify the rule language, and
by updating the ``ETFS Silver Trust'', the ``ETFS Gold Trust'', the
``ETFS Palladium Trust'' and the ``ETFS Platinum Trust'' to the
``Aberdeen Standard Physical Silver Trust'', the ``Aberdeen Standard
Physical Gold Trust'', the ``Aberdeen Standard Physical Palladium
Trust'', the ``Aberdeen Standard Physical Platinum Trust'',
respectively, as these ETFs were renamed in 2018.
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    \3\ See Rule 1.1, definition of ``Unit and ETF''.
    \4\ See Rules 4.3.06(a)(1)-(3) and (5), which, respectively,
include Units that represent interests in registered investment
companies (or series thereof) organized as open-end management
investment companies, unit investment trusts or similar entities
that hold portfolios of securities and/or financial instruments
including, but not limited to, stock index futures contracts,
options on futures, options on securities and indexes, equity caps,
collars and floors, swap agreements, forward contracts, repurchase
agreements and reverse purchase agreements (the ``Financial
Instruments''), and money market instruments, including, but not
limited to, U.S. government securities and repurchase agreements
(the ``Money Market Instruments'') comprising or otherwise based on
or representing investments in indexes or portfolios of securities
and/or Financial Instruments and Money Market Instruments (or that
hold securities in one or more other registered investment companies
that themselves hold such portfolios of securities and/or Financial
Instruments and Money Market Instruments); interests in a trust or
similar entity that holds a specified non-U.S. currency deposited
with the trust or similar entity when aggregated in some specified
minimum number may be surrendered to the trust by the beneficial
owner to receive the specified non-U.S. currency and pays the
beneficial owner interest and other distributions on deposited non-
U.S. currency, if any, declared and paid by the trust (``Currency
Trust Shares''); commodity pool interests principally engaged,
directly or indirectly, in holding and/or managing portfolios or
baskets of securities, commodity futures contracts, options on
commodity futures contracts, swaps, forward contracts and/or options
on physical commodities and/or non-U.S. currency (``Commodity Pool
Units''); or represents an interest in a registered investment
company (``Investment Company'') organized as an open-end management
investment company or similar entity, that invests in a portfolio of
securities selected by the Investment Company's investment adviser
consistent with the Investment Company's investment objectives and
policies, which is issued in a specified aggregate minimum number in
return for a deposit of a specified portfolio of securities and/or a
cash amount with a value equal to the next determined net asset
value (``NAV''), and when aggregated in the same specified minimum
number, may be redeemed at a holder's request, which holder will be
paid a specified portfolio of securities and/or cash with a value
equal to the next determined NAV (``Managed Fund Share'')
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    Like the SPDR Gold Trust (``GLD''), iShares COMEX Gold Trust
(``IAU''), Aberdeen Standard Physical Gold Trust (``SGOL''), and Sprott
Physical Gold Trust (``PHYS''), currently deemed appropriate for
options trading pursuant to Rule 4.3.06(a)(4), AAAU is a gold-backed
commodity ETF structured as a trust. Specifically, the Trust's
investment objective is for its shares to reflect the performance of
the price of gold (less the expenses of the Trust's operations),
offering investors an opportunity to gain exposure to gold without the
complexities of gold delivery. The Trust issues Goldman Sachs Physical
Gold ETF Shares, which represent units of fractional undivided
beneficial interest in the Trust, the assets of which consist
principally of gold.\5\ AAAU is a competitively priced commodity ETF,
the cost of which is comparatively lower than the industry average for
commodity ETFs. AAAU provides investors with a cost-efficient
alternative that allows a level of participation in the gold market
through the securities market. Likewise, the GLD, IAU, SGOL and PHYS
trusts also issue shares that represent fractional undivided beneficial
interest in the respective trust, each of which holds physical gold and
is designed to track gold or the performance of the price of gold and
offer access to the gold market.\6\
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    \5\ The Trust may include minimal cash.
    \6\ The trusts may include minimal cash.
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    The Exchange believes that offering options on AAAU will benefit
investors by providing them with an additional, relatively lower cost
investing tool to gain exposure to the price of gold and hedging
vehicle to meet their investment needs in connection with gold-related
products and positions. The Exchange understands from customers that
investors may currently transact in options on AAAU in the unregulated
over-the-counter (``OTC'') options market, but may prefer to trade such
options in a listed environment to receive the benefits of trading
listing options, including (1) enhanced efficiency in initiating and
closing out position; (2) increased market transparency; and (3)
heightened contra-party creditworthiness due to the role of OCC as
issuer and guarantor of all listed options. The Exchange believes that
listing AAAU options may shift liquidity from the OTC market onto the
Exchange, would increase market transparency and enhance the process of
price discovery conducted on the Exchange through increased order flow.
As described above, the gold-backed commodity ETFs (GLD, IAU, SGOL and
PHYS) on which the Exchange may already list and trade options are
trusts structured in substantially the same manner as AAAU and
essentially offer the same objectives and benefits to investors. The
Exchange notes that it has not identified any issues with the continued
listing and trading of the gold-backed commodity ETF options that it
currently lists and trades on the Exchange.
    AAAU options will trade in the same manner as any other ETF options
on the Exchange. The Exchange Rules that currently apply to the listing
and trading of all ETF options on the Exchange, including, for example,
Rules that govern listing criteria, expiration and exercise prices,
minimum increments, position and exercise limits, margin requirements,
customer accounts and trading halt procedures will apply to the listing
and trading of options on AAAU on the Exchange in the same manner as
they apply to other options on all other Units that are listed and
traded on the Exchange, including the gold-backed commodity ETFs
already deemed appropriate for options trading on the Exchange pursuant
to Rule 4.3.06(a)(4).
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    \7\ The Exchange notes that the year-to-date (March 23, 2022)
average daily volume (``ADV'') of AAAU shares is approximately
845,200 shares, the market capitalization of AAAU as of March 23,
2022 is approximately $727.3 million and the NAV of its shares is
$19.19.
    \8\ See Rule 4.3.01, which provides for guidelines established
by the Board of Directors to be considered by the Exchange in
evaluating potential underlying securities for Exchange option
transactions.
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    The Exchange's initial listing standards for ETFs on which options
may be listed and traded on the Exchange will apply to AAAU. The
Exchange notes that AAAU satisfies the initial listing standards as set
forth in Rule 4.3(a) and Rule 4.3.06(b). Pursuant to Rule 4.3(a), a
security (which includes an ETF) on which options may be listed and
traded on the Exchange must be duly registered and be an NMS stock, and
characterized by a substantial number of outstanding shares which are
widely held and actively traded.\7\ Rule 4.3.06(b) requires that Units
must meet either (1) the criteria and guidelines under Rule 4.3.01,\8\
or (2) they must be available for creation or redemption each business
day from or through the issuer in cash or in kind at a price related to
net asset value, and the issuer must be obligated to issue Units in a
specified aggregate number even if some or all of the investment assets
required to be deposited have not been received by the issuer, subject
to the condition that the person obligated to deposit the investments
has undertaken to deliver the investment assets as soon as possible and
such undertaking is

secured by the delivery and maintenance of collateral consisting of
cash or cash equivalents satisfactory to the issuer, as provided in the
respective prospectus. The Exchange represents that, at minimum, AAAU
satisfies Rule 4.3.06(b)(2).\9\
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    \9\ See Goldman Sachs Physical Gold ETF, Prospectus (January 8,
2021) available at https://www.gsam.com/content/gsam/us/en/individual/products/etf-fund-finder/goldman-sachs-physical-gold-etf.html#activeTab=overview.
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    AAAU will also be subject to the Exchange's continued listing
standards set forth in Rule 4.4.06 for ETFs deemed appropriate for
options trading pursuant to Rule 4.3.06. Specifically, Rule 4.4.06
provides that Units that were initially approved for options trading
pursuant to Rule 4.3.06 shall be deemed not to meet the requirements
for continued approval, and the Exchange shall not open for trading any
additional series of option contracts of the class covering that such
Units, if the Units cease to be an NMS stock or the Units are halted
from trading in their primary market. Additionally, options on Units
may be subject to the suspension of opening transactions in any of the
following circumstances: (1) In the case of options covering Units
approved for trading under Rule 4.3.06(b)(1), in accordance with the
terms of paragraphs (a), (b), and (c) of Rule 4.4.01; (2) in the case
of options covering Units approved for trading under Rule 4.3.06(b)(2),
following the initial twelve-month period beginning upon the
commencement of trading in the Units on a national securities exchange
and are defined as an NMS stock, there are fewer than 50 record and/or
beneficial holders of such Units for 30 or more consecutive trading
days; (3) the value of the index or portfolio of securities, non-U.S.
currency, or portfolio of commodities including commodity futures
contracts, options on commodity futures contracts, swaps, forward
contracts and/or options on physical commodities and/or Financial
Instruments and Money Market Instruments on which the Units are based
is no longer calculated or available; or (4) such other event shall
occur or condition exist that in the opinion of the Exchange makes
further dealing in such options on the Exchange inadvisable.
    AAAU options are physically settled contracts with American-style
exercise.\10\ Consistent with current Rule 4.5, which governs the
opening of options series on a specific underlying security (including
ETFs), the Exchange will open at least one expiration month for options
on AAAU \11\ and may also list series of options on AAAU for trading on
a weekly \12\ or quarterly \13\ basis. The Exchange may also list long-
term equity option series (``LEAPS'') that expire from 12 to 180 months
from the time they are listed.\14\
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    \10\ See Rule 4.2, which provides that the rights and
obligations of holders and writers shall be as set forth in the
Rules of the Clearing Corporation; and see Cboe Equity Options
Product Specifications (March 23, 2022) available at https://www.cboe.com/exchange_traded_stock/equity_options_spec/?msclkid=8079efbbaaf111ec83b46e77a2984348; see also OCC Rules,
Chapter VIII, which governs exercise and assignment, and Chapter IX,
which governs the discharge of delivery and payment obligations
arising out of the exercise of physically settled stock option
contracts.
    \11\ See Rule 4.5(b). The monthly expirations are subject to
certain listing criteria for underlying securities described within
Rule 4.3. Monthly listings expire the third Friday of the month. The
term ``expiration date'' when used in respect of a series of binary
options other than event options means the last day on which the
options may be automatically exercised. In the case of a series of
event options (other than credit default options or credit default
basket options) that are be automatically exercised prior to their
expiration date upon receipt by the Corporation of an event
confirmation, the expiration date is the date specified by the
listing Exchange; provided, however, that when an event confirmation
is deemed to have been received by the Corporation with respect to
such series of options, the expiration date will be accelerated to
the date on which such event confirmation is deemed to have been
received by the Corporation or such later date as the Corporation
may specify. In the case of a series of credit default options or
credit default basket options, the expiration date is the fourth
business day after the last trading day for such series as such
trading day is specified by the Exchange on which the series of
options is listed; provided, however, that when an event
confirmation is deemed to have been received by the Corporation with
respect to a series of credit default options or single payout
credit default basket options prior to the last trading day for such
series, the expiration date for options of that series will be
accelerated to the second business day following the day on which
such event confirmation is deemed to have been received by the
Corporation. ``Expiration date'' means, in respect of a series of
range options expiring prior to February 1, 2015, the Saturday
immediately following the third Friday of the expiration month of
such series, and, in respect of a series of range options expiring
on or after February 1, 2015 means the third Friday of the
expiration month of such series, or if such Friday is a day on which
the Exchange on which such series is listed is not open for
business, the preceding day on which such Exchange is open for
business. See The Options Clearing Corporation (``OCC'') By-Laws at
Section 1.
    \12\ The weekly listing program is known as the Short Term
Option Series Program and is described within Rule 4.5(d).
    \13\ See Rule 4.5(e).
    \14\ See Rule 4.5(f).
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    Pursuant to Rule 4.5.07, which governs strike prices of series of
options on Units, the interval between strike prices for series of
options on AAAU will be $1 or greater where the strike price is $200 or
less and $5.00 or greater where the strike price is greater than
$200.\15\
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    \15\ The Exchange notes that for options listed pursuant to the
Short Term Option Series Program, Rule 4.5(d)(5) specifically sets
forth intervals between strike prices on Short Term Option Series.
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    Additionally, the Exchange may list series of options pursuant to
the $1 Strike Price Interval Program,\16\ the $0.50 Strike Program,\17\
the $2.50 Strike Price Program,\18\ and the $5 Strike Program.\19\ Rule
5.4 governs the minimum increment for bids and offers for both equity
and index options. Pursuant to Rule 5.4, where the price of a series of
AAAU options is less than $3.00 the minimum increment will be $0.05,
and where the price is $3.00 or higher, the minimum increment will be
$0.10.\20\ Any and all new series of AAAU options that the Exchange
lists will be consistent and comply with the expirations, strike prices
and minimum increments set forth in Rules 4.5 and 5.4, as applicable.
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    \16\ See Rule 4.5.01(a).
    \17\ See Rule 4.5.01(b).
    \18\ See Rule 4.5.04.
    \19\ The $5 Strike Program is described within Rule 4.5.01(f).
    \20\ If options on AAAU are eligible to participate in the Penny
Interval Program, the minimum increment will be $0.01 below $3.00
and $0.50 above $3.00. See also Rule 5.4(d), which governs the
requirements for the Penny Interval Program.
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    Position and exercise limits for options on ETFs, including options
on AAAU, are determined pursuant to Rule 8.30 and Rule 8.32,
respectively. Position and exercise limits for ETF options vary
according to the number of outstanding shares and the trading volumes
of the underlying ETF over the past six months, where the largest in
capitalization and the most frequently traded ETFs have an option
position and exercise limit of 250,000 contracts (with adjustments for
splits, re-capitalizations, etc.) on the same side of the market; and
smaller capitalization ETFs have position and exercise limits of
200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for
splits, re-capitalizations, etc.) on the same side of the market.\21\
The Exchange further notes that Rule 10.3, which governs margin
requirements applicable to the trading of all options on the Exchange,
including options on ETFs, will also apply to the trading of AAAU
options.
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    \21\ Given AAAU volume over the previous six months, the
Exchange anticipates that, upon initial listing, AAAU options will
fall into the position limit bucket of 75,000 contracts.
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    The Exchange represents that the same surveillance procedures
applicable to all other options on other Units currently listed and
traded on the Exchange will apply to options on AAAU, and that it has
the necessary systems capacity to support the new option series. The
Exchange believes that its existing surveillance and reporting
safeguards are designed to

deter and detect possible manipulative behavior which might potentially
arise from listing and trading ETF options, including AAAU options, as
proposed. Also, the Exchange may obtain information from the CME Group
New York Mercantile Exchange, Inc. (``NYMEX'') (a member of the
Intermarket Surveillance Group) related to any financial instrument
that is based, in whole or in part, upon an interest in or performance
of gold.
    The Exchange has also analyzed its capacity and represents that it
believes the Exchange and OPRA have the necessary systems capacity to
handle the additional traffic associated with the listing of new series
that may result from the introduction of options on AAAU up to the
number of expirations currently permissible under the Exchange Rules.
Because the proposal is limited to one class, the Exchange believes any
additional traffic that may be generated from the introduction of AAAU
options will be manageable.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with
the Securities Exchange Act of 1934 (the ``Act'') and the rules and
regulations thereunder applicable to the Exchange and, in particular,
the requirements of Section 6(b) of the Act.\22\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \23\ requirements that the rules of an exchange be
designed to prevent fraudulent and manipulative acts and practices, to
promote just and equitable principles of trade, to foster cooperation
and coordination with persons engaged in regulating, clearing,
settling, processing information with respect to, and facilitating
transactions in securities, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. Additionally,
the Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \24\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \22\ 15 U.S.C. 78f(b).
    \23\ 15 U.S.C. 78f(b)(5).
    \24\ Id.
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    In particular, the Exchange believes that the proposal to list and
trade options on AAAU will remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, protect investors because offering options on AAAU will
provide investors with greater opportunity to realize the benefits of
utilizing options on a commodity-based ETF, including cost efficiencies
and increased hedging strategies. The Exchange believes that offering
options on a competitively priced gold-backed commodity ETF will
benefit investors by providing them with an additional, relatively
lower cost risk management tool allowing them to more easily manage
their positions and associated risk in their portfolios in connection
with exposure to the price of gold and with gold-related products and
positions. Additionally, the Exchange's offering of AAAU options will
provide investors with the ability to transact in such options in a
listed market environment as opposed to in the unregulated OTC options
market; shifting liquidity from the OTC market onto the Exchange, thus
increasing market transparency and enhancing the process of price
discovery conducted on the Exchange through increased order flow to the
benefit of all investors. The Exchange also notes that it already lists
options on other gold-based ETFs, which, as described above, are trusts
structured in substantially the same manner as AAAU and essentially
offer the same objectives and benefits to investors, and for which the
Exchange has not identified any issues with the continued listing and
trading of the gold-backed ETF options it currently lists for trading.
    The Exchange also believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, because it is consistent with current
Exchange Rules, previously filed with the Commission. Options on AAAU
must satisfy the initial listing standards and continued listing
standards currently in the Exchange Rules, applicable to options on all
Units, including other gold-backed commodity ETFs already deemed
appropriate for options trading on the Exchange. AAAU options will
trade in the same manner as any other ETF [sic]--the same Exchange
Rules that currently govern the listing and trading of all ETF options,
including permissible expirations, strike prices and minimum
increments, and applicable position and exercise limits and margin
requirements, will govern the listing and trading of options on AAAU in
the same manner.
    The Exchange represents that it has the necessary systems capacity
to support the new ETF option series. The Exchange believes that its
existing surveillance and reporting safeguards are designed to deter
and detect possible manipulative behavior which might arise from
listing and trading ETF options, including AAAU options.
    Finally, the Exchange believes that the proposed nonsubstantive
rule change to simplify the rule language and update the names of
certain ETFs in Rule 4.3.06(a)(4) will protect investors and the public
interest by adding clarity to the Rule and making the Rule more
accurate, thereby mitigating any potential investor confusion and
making the Rule easier to understand.

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act as AAAU satisfies initial
listing standards set forth in the Exchange Rules and options on AAAU
will be equally available to all market participants who wish to trade
such options. The Exchange Rules currently applicable to the listing
and trading of options on Units on the Exchange will apply in the same
manner to the listing and trading of all options traded on AAAU. Also,
and as stated above, the Exchange already lists options on other gold-
based ETFs.
    The Exchange does not believe that the proposal to list and trade
options on AAAU will impose any burden on intermarket competition that
is not necessary or appropriate in furtherance of the purposes of the
Act. To the extent that the advent of AAAU options trading on the
Exchange may make the Exchange a more attractive marketplace to market
participants at other exchanges, such market participants are free to
elect to become market participants on the Exchange. Additionally,
other options exchanges are free to amend their listing rules, as
applicable, to permit them to list and trade options on AAAU.
Additionally, the Exchange notes that listing and trading AAAU options
on the Exchange will subject such options to transparent exchange-based
rules as well as price discovery and liquidity, as opposed to
alternatively trading such options in the OTC market. The Exchange
believes that the proposed rule change may relieve any burden on, or
otherwise promote, competition as it is designed to increase
competition for order flow on the Exchange in a manner that is
beneficial to investors by providing them with a lower-cost option to
hedge their

investment portfolios. The Exchange notes that it operates in a highly
competitive market in which market participants can readily direct
order flow to competing venues that offer similar products. Ultimately,
the Exchange believes that offering AAAU options for trading on the
Exchange will promote competition by providing investors with an
additional, relatively low-cost means to hedge their portfolios and
meet their investment needs in connection with gold prices and gold-
related products and positions on a listed options exchange.
    The Exchange does not believe that the proposed nonsubstantive rule
change will impose any burden on intramarket or intermarket competition
as the proposed rule change is not intended as a competitive change,
but merely adds clarity to and provides for more accuracy within the
Exchange Rules. The proposed rule change makes no substantive changes
to the Exchange Rules, and thus will have no impact on trading on the
Exchange.

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

    The Exchange neither solicited nor received comments on the
proposed rule change.

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 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.

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-CBOE-2022-009 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-CBOE-2022-009. 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 the filing also will be available for inspection
and copying at the principal office of the Exchange. 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-CBOE-2022-009 and should be submitted on
or before April 29, 2022.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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    \25\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-07465 Filed 4-7-22; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 14 (Wednesday, January 22, 2020)]
[Notices]
[Pages 3665-3666]
[FR Doc No: 2020-00955]

=======================================================================
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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

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

    Docket Numbers: ER20-711-001.
    Applicants: Cambria Wind, LLC.
    Description: Tariff Amendment: Amendment to MBR Application to be
effective 1/31/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5107.
    Comments Due: 5 p.m. ET 1/22/20.

    Docket Numbers: ER20-793-000.
    Applicants: American Transmission Systems, Incorporated, PJM
Interconnection, L.L.C.

    Description: Sec.  205(d) Rate Filing: ATSI submits (3) ECSAs,
Service Agreement Nos. 5390, 5506, 5516 to be effective 3/14/2020.
    Filed Date: 1/14/20.
    Accession Number: 20200114-5153.
    Comments Due: 5 p.m. ET 2/4/20.

    Docket Numbers: ER20-794-000.
    Applicants: Midcontinent Independent System Operator, Inc, Otter
Tail Power Company.
    Description: Sec.  205(d) Rate Filing: 2020-01-15_SA 3403 OTP-NSP
FSA (J460) CapX Brookings to be effective 3/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5058.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-795-000.
    Applicants: Southern California Edison Company.
    Description: Sec.  205(d) Rate Filing: Amended SGIA Buck Wind Park
Project WDT685 SA No. 523 to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5067.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-796-000.
    Applicants: Adelanto Solar, LLC.
    Description: Sec.  205(d) Rate Filing: Adelanto Solar, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5081.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-797-000.
    Applicants: Adelanto Solar II, LLC.
    Description: Sec.  205(d) Rate Filing: Adelanto Solar II, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5084.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-798-000.
    Applicants: Blythe Solar 110, LLC.
    Description: Sec.  205(d) Rate Filing: Blythe Solar 110, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5085.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-799-000.
    Applicants: Blythe Solar II, LLC.
    Description: Sec.  205(d) Rate Filing: Blythe Solar II, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5086.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-800-000.
    Applicants: Casa Mesa Wind, LLC.
    Description: Sec.  205(d) Rate Filing: Casa Mesa Wind, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5087.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-801-000.
    Applicants: Golden Hills Interconnection, LLC.
    Description: Sec.  205(d) Rate Filing: Golden Hills
Interconnection, LLC Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5088.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-802-000.
    Applicants: Golden Hills North Wind, LLC.
    Description: Sec.  205(d) Rate Filing: Golden Hills North Wind, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5089.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-803-000.
    Applicants: Golden Hills Wind, LLC.
    Description: Sec.  205(d) Rate Filing: Golden Hills Wind, LLC
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5090.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-804-000.
    Applicants: Luz Solar Partners Ltd., V.
    Description: Sec.  205(d) Rate Filing: Luz Solar Partners Ltd., V
Amendment to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5091.
    Comments Due: 5 p.m. ET 2/5/20.

    Docket Numbers: ER20-805-000.
    Applicants: McCoy Solar, LLC.
    Description: Sec.  205(d) Rate Filing: McCoy Solar, LLC Amendment
to MBR Tariff to be effective 1/16/2020.
    Filed Date: 1/15/20.
    Accession Number: 20200115-5093.
    Comments Due: 5 p.m. ET 2/5/20.

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

    Dated: January 15, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020-00955 Filed 1-21-20; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 82, Number 224 (Wednesday, November 22, 2017)]
[Rules and Regulations]
[Pages 55500-55502]
[FR Doc No: 2017-25019]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 25

[Docket No. FAA-2017-0951; Special Conditions No. 25-706-SC]

Special Conditions: Mitsubishi Aircraft Corporation Model MRJ-200
airplane; Design Roll Maneuver for Electronic Flight Controls

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final special conditions; request for comments.

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

SUMMARY: These special conditions are issued for Mitsubishi Aircraft
Corporation (Mitsubishi) Model MRJ-200 airplanes. These airplanes will
have a novel or unusual design feature when compared to the state of
technology

envisioned in the airworthiness standards for transport category
airplanes. This design feature is an electronic flight-control system
(EFCS) that provides control of the airplane through pilot inputs to
the flight computer. The applicable airworthiness regulations do not
contain adequate or appropriate safety standards for this design
feature. These special conditions contain the additional safety
standards that the Administrator considers necessary to establish a
level of safety equivalent to that established by the existing
airworthiness standards.

DATES: This action is effective on Mitsubishi on November 22, 2017. We
must receive your comments January 8, 2018.

ADDRESSES: Send comments identified by docket number FAA-2017-0951
using any of the following methods:
     Federal eRegulations Portal: Go to http://www.regulations.gov/ and follow the online instructions for sending
your comments electronically.
     Mail: Send comments to Docket Operations, M-30, U.S.
Department of Transportation (DOT), 1200 New Jersey Avenue SE., Room
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket
Operations in Room W12-140 of the West Building Ground Floor at 1200
New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.,
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at<PHONE_NUMBER>.
    Privacy: The FAA will post all comments it receives, without
change, to http://www.regulations.gov/, including any personal
information the commenter provides. Using the search function of the
docket Web site, anyone can find and read the electronic form of all
comments received into any FAA docket, including the name of the
individual sending the comment (or signing the comment for an
association, business, labor union, etc.). DOT's complete Privacy Act
Statement can be found in the Federal Register published on April 11,
2000 (65 FR 19477-19478).
    Docket: Background documents or comments received may be read at
http://www.regulations.gov/ at any time. Follow the online instructions
for accessing the docket or go to Docket Operations in Room W12-140 of
the West Building Ground Floor at 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday,
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Todd Martin, FAA, Airframe and Cabin
Safety Section, AIR-675, Policy and Innovation Division, Transport
Standards Branch, Aircraft Certification Service, 1601 Lind Avenue SW.,
Renton, Washington 98057-3356; telephone<PHONE_NUMBER>; facsimile 425-
227-1320.

SUPPLEMENTARY INFORMATION: The FAA has determined that notice of, and
opportunity for prior public comment on, these special conditions is
unnecessary because the substance of these special conditions has been
subject to the public-comment process in several prior instances with
no substantive comments received. The FAA finds good cause that prior
notice and comment are unnecessary, and for the same reason finds that
good cause exists for adopting these special conditions upon
publication in the Federal Register.

Comments Invited

    The FAA is requesting comments to allow interested persons to
submit views that may not have been submitted in response to the prior
opportunities for comment described above. We invite interested people
to take part in this rulemaking by sending written comments, data, or
views. The most helpful comments reference a specific portion of the
special conditions, explain the reason for any recommended change, and
include supporting data.
    We will consider all comments we receive by the closing date for
comments. We may change these special conditions based on the comments
we receive.

Background

    On August 19, 2009, Mitsubishi applied for a type certificate for
their new Model MRJ-200 airplane. The Model MRJ-200 airplane is a low-
wing, conventional-tail design with two wing-mounted turbofan engines.
The airplane is equipped with an electronic flight-control system, has
seating for 96 passengers and a maximum takeoff weight of 98,800 lbs.

Type Certification Basis

    Under the provisions of title 14, Code of Federal Regulations (14
CFR) 21.17, Mitsubishi must show that the Model MRJ-200 airplane meets
the applicable provisions of part 25, as amended by Amendments 25-1
through 25-141; part 36, as amended by Amendments 36-1 through 36-30;
and part 34, as amended by Amendments 34-1 through the amendment
effective at the time of design approval.
    If the Administrator finds that the applicable airworthiness
regulations (i.e., 14 CFR part 25) do not contain adequate or
appropriate safety standards for the Model MRJ-200 airplane because of
a novel or unusual design feature, special conditions are prescribed
under the provisions of Sec.  21.16.
    Special conditions are initially applicable to the Model for which
they are issued. Should the type certificate for that model be amended
later to include any other model that incorporates the same novel or
unusual design feature, these special conditions would also apply to
the other model under Sec.  21.101.
    In addition to the applicable airworthiness regulations and special
conditions, the model MRJ-200 airplane must comply with the fuel-vent
and exhaust-emission requirements of 14 CFR part 34, and the noise-
certification requirements of 14 CFR part 36.
    The FAA issues special conditions, as defined in 14 CFR 11.19, in
accordance with Sec.  11.38, and they become part of the type
certification basis under Sec.  21.17(a)(2).

Novel or Unusual Design Features

    The Model MRJ-200 airplane will incorporate the following novel or
unusual design feature:
    An electronic flight-control system that provides control of the
airplane through pilot inputs to the flight computer. Current part 25
airworthiness regulations account for control laws where aileron
deflection is proportional to control-stick deflection. They do not
address any nonlinearities, i.e., situations where output does not
change in the same proportion as input, or other effects on aileron
actuation that may be caused by electronic flight controls.

Discussion

    The flight-control system for the Model MRJ-200 airplane does not
have a direct mechanical link, nor a linear gain, between the airplane
flight-control surface and the pilot's flight-deck control device,
which is not accounted for in Sec.  25.349(a). Instead, a flight-
control computer commands the airplane flight-control surfaces, based
on input received from the flight-deck control device. The flight-
control computer modifies pilot input before the command is given to
the flight-control surface.
    These special conditions differ from current regulatory
requirements in that they require that the roll maneuvers result from
defined movements of the flight-deck roll control as opposed to defined
aileron deflections. Also, these special conditions require an
additional load condition at design maneuvering speed (VA),
in which the flight-deck roll

control is returned to neutral following the initial roll input.
    These special conditions differ from similar special conditions
previously issued on this topic. These special conditions are limited
to the roll axis only, whereas other special conditions also included
pitch and yaw axes. Special conditions are no longer needed for the yaw
axis because Sec.  25.351 was revised at Amendment 25-91 to take into
account effects of an electronic flight-control system. No special
conditions are needed for the pitch axis because the method that
Mitsubishi proposed for the pitch maneuver takes into account effects
of an electronic flight-control system.
    These special conditions contain the additional safety standards
that the Administrator considers necessary to establish a level of
safety equivalent to that established by the existing airworthiness
standards.

Applicability

    As discussed above, these special conditions are applicable to the
Model MRJ-200 airplanes. Should Mitsubishi apply at a later date for a
change to the type certificate to include another model incorporating
the same novel or unusual design feature, these special conditions
would apply to that model as well.

Conclusion

    This action affects only certain novel or unusual design features
on one model of airplanes. It is not a rule of general applicability.

List of Subjects in 14 CFR Part 25

    Aircraft, Aviation safety, Reporting and recordkeeping
requirements.

    The authority citation for these special conditions is as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701, 44702, 44704.

The Special Conditions

    Accordingly, pursuant to the authority delegated to me by the
Administrator, the following special conditions are issued as part of
the type certification basis for Mitsubishi Model MRJ-200 airplanes.
    In lieu of compliance to 14 CFR 25.349(a), the following
conditions, speeds, and flight-deck roll-control motions (except as the
motions may be limited by pilot effort) must be considered in
combination with an airplane load factor of zero, and of two-thirds of
the positive maneuvering factor used in design. In determining the
resulting control-surface deflections, the torsional flexibility of the
wing must be considered in accordance with Sec.  25.301(b).
    (a) Conditions corresponding to steady rolling velocities must be
investigated. In addition, conditions corresponding to maximum angular
acceleration must be investigated for airplanes with engines or other
weight concentrations outboard of the fuselage. For the angular
acceleration conditions, zero rolling velocity may be assumed in the
absence of a rational time-history investigation of the maneuver.
    (b) At VA, sudden movement of the flight-deck roll
control up to the limit is assumed. The position of the flight-deck
roll control must be maintained until a steady roll rate is achieved,
and then must be returned suddenly to the neutral position.
    (c) At VC, the flight-deck roll control must be moved
suddenly and maintained so as to achieve a roll rate not less than that
obtained in special condition (b).
    (d) At VD, the flight-deck roll control must be moved
suddenly and maintained so as to achieve a roll rate not less than one
third of that obtained in special condition (b).

Victor Wicklund,
Manager, Transport Standards Branch, Policy and Innovation Division,
Aircraft Certification Service.
[FR Doc. 2017-25019 Filed 11-21-17; 8:45 am]
 BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 8 (Wednesday, January 13, 2016)]
[Notices]
[Page 1624]
[FR Doc No: 2016-00487]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #1

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

    Docket Numbers: ER16-205-001.
    Applicants: DATC Path 15, LLC.
    Description: Tariff Amendment: amendment to 300011 to be effective
1/1/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5070.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-208-001.
    Applicants: International Transmission Company, Michigan Electric
Transmission Company, LLC, ITC Midwest LLC.
    Description: Compliance Filing of the ITC Companies.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5135.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-316-001.
    Applicants: PJM Interconnection, L.L.C.
    Description: Tariff Amendment: Amendment to Clean-Up Filing in
Docket No. ER16-316-000 to be effective 12/31/9998.
    Filed Date: 1/6/16.
    Accession Number: 20160106-5316.
    Comments Due: 5 p.m. ET 1/27/16.

    Docket Numbers: ER16-688-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Section 205(d) Rate Filing: 2016-01-07_SA 2748 ATC-WPL
Amended CFA to be effective 3/7/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5085.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-689-000
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Section 205(d) Rate Filing: 2016-01-07_SA 2756 ATC-
WPSC Amended CFA to be effective 3/7/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5086.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-690-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Section 205(d) Rate Filing: 2016-01-07_SA 2761 ATC-
UPPCO Amended CFA to be effective 3/7/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5087.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-691-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Section 205(d) Rate Filing: 2016-01-07_SA 2772 ATC-MGE
Amended CFA to be effective 3/7/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5088.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-692-000.
    Applicants: Midcontinent Independent System Operator, Inc.
    Description: Section 205(d) Rate Filing: 2016-01-07_SA 2779 ATC-WE
Amended CFA to be effective 3/7/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5089.
    Comments Due: 5 p.m. ET 1/28/16.

    Docket Numbers: ER16-693-000.
    Applicants: California Independent System Operator Corporation.
    Description: Section 205(d) Rate Filing: 2016-01-07 IPE 2015
Process Enhancements to be effective 3/8/2016.
    Filed Date: 1/7/16.
    Accession Number: 20160107-5140.
    Comments Due: 5 p.m. ET 1/28/16.

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

    Dated: January 7, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-00487 Filed 1-12-16; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 87, Number 3 (Wednesday, January 5, 2022)]
[Notices]
[Pages 508-513]
[FR Doc No: 2021-28518]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93873; File No. SR-NSCC-2021-017]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Add Fees for NSCC's MF Info Xchange Service, Modify Fees
for NSCC's Alternative Investment Product Service and Make Certain
Other Clarification Changes to Addendum A of the NSCC Rules

December 29, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on December 27, 2021, National Securities Clearing Corporation
(``NSCC'') 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 the clearing
agency. NSCC filed the proposed rule change pursuant to Section
19(b)(3)(A) \3\ of the Act and subparagraphs (f)(2) and (f)(4) \4\ of
Rule 19b-4 thereunder. 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.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(2) and (f)(4).
---------------------------------------------------------------------------

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

    (a) The proposed rule change of National Securities Clearing
Corporation (``NSCC'') is annexed hereto as Exhibit 5 and consists of
modifications to Addendum A (Fee Structure) (``Addendum A'') of NSCC's
Rules & Procedures (``Rules'') in order to (i) add fees for NSCC's MF
Info Xchange service, (ii) make certain adjustments in the fees for
NSCC's Alternative Investment Product service (``AIP'') and (iii) make
certain other clarification changes to Addendum A, as described
below.\5\
---------------------------------------------------------------------------

    \5\ Capitalized terms used herein and not otherwise defined
shall have the meaning assigned to such terms in the Rules,
available at http://dtcc.com/~/media/Files/Downloads/legal/rules/
nscc_rules.pdf.
---------------------------------------------------------------------------

II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

    In its filing with the Commission, the clearing agency 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.
The clearing agency 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 Proposed Rule Change

1. Purpose
    The purpose of this proposed rule change is to (i) add fees for MF
Info Xchange, (ii) make certain adjustments in the fees for AIP and
(iii) make certain clarifications to Addendum A, as described below.
The fee changes are being made to better align fees with the costs of
services provided by NSCC by adjusting the fees so that the revenue
received by NSCC would be closer to the costs of building and providing
the services consistent with NSCC's cost-based plus markup fee
model.\6\ In general, fee levels for NSCC are set by NSCC after
periodic reviews of a number of factors, including revenues, operating
costs and potential service enhancements. NSCC also continuously
engages in discussions with NSCC Members regarding proposed fee changes
and potential impacts.
---------------------------------------------------------------------------

    \6\ NSCC has in place procedures to control costs and to
regularly review pricing levels against costs of operation. NSCC's
fees are cost-based plus a markup as approved by its Board of
Directors. This markup is applied to recover development costs and
operating expenses, and to accumulate capital sufficient to meet
regulatory and economic requirements. See NSCC Disclosure Framework
for Covered Clearing Agencies and Financial Market Infrastructures,
available at https://www.dtcc.com/-/media/Files/Downloads/legal/policy-and-compliance/NSCC_Disclosure_Framework.pdf, at 120.
---------------------------------------------------------------------------

(i) MF Info Xchange Fees
    MF Info Xchange facilitates and centralizes the delivery and
receipt of time-critical notifications, including corporate actions,
service disruptions, large trade notifications and other critical
alerts. The service was launched on November 30, 2018 with 3 event
types.\7\ Given the limited number of event types available for event
notifications upon the launch of MF Info Xchange, NSCC did not charge
fees initially for the use of the service.\8\ NSCC indicated that it
would file with the Commission an appropriate rule change proposal to
implement any fees for MF Info Xchange if NSCC added fees for the
service.\9\ Fund Members are typically funds or asset managers of funds
and use MF Info Xchange to send notifications regarding the funds to
their distribution partners. NSCC Members that are not Fund Members are
typically broker/dealers or other distributors that use MF Info Xchange
to receive and track such notifications sent by the Fund Members as
well as send notifications to Fund Members about their funds.
---------------------------------------------------------------------------

    \7\ See Securities Exchange Act Release No. 84611 (November 16,
2018), 83 FR 59427 (November 23, 2018) (SR-NSCC-2018-010). The
initial 3 event types were Fund Merger, Fund Closure--Hard Close and
Fund Closure--Soft Close.
    \8\ Id.
    \9\ Id.
---------------------------------------------------------------------------

    Since the launch, MF Info Xchange has been enhanced with an
additional 25 event types and additional user interface capabilities.
NSCC believes that it is appropriate to begin charging fees for the
service given the added capabilities and in order to offset the costs
of building and maintaining the service.
    NSCC is proposing to implement a two-tiered billing structure for
MF Info Xchange based on the anticipated amount of use of the service
by NSCC Members.\10\ Based on a review of the usage by NSCC Members,
NSCC believes that NSCC Members that are not Fund Members and larger
Fund Members use the service more than smaller Fund Members. NSCC
believes that the number of Security Issue IDs that a Fund Member
maintains on Fund/SERV[supreg] is a good indication of the size of the
Fund Member and the level of usage of MF Info Xchange by such Fund
Member. Most notifications in MF Info Xchange relate to a specific
security issuance and each Security Issue ID represents a security
issuance. Therefore, Fund Members that maintain more Security Issue
IDs, will have a greater number of security issuances for which
notifications will need to be sent. NSCC Members that are not Fund
Members typically receive notifications from multiple Fund Members and
often benefit from receiving notifications for a large number of
security issuances.
---------------------------------------------------------------------------

    \10\ For purposes of this filing, NSCC Members refers to Members
and Limited Members.
---------------------------------------------------------------------------

    Fund/SERV is an NSCC service providing for the processing and
settling of Fund/SERV Eligible Funds.\11\ Each Fund/SERV Eligible Fund
that is processed through Fund/SERV is required to be assigned a
Security Issue ID, such as a CUSIP.\12\ NSCC is proposing to charge
NSCC Members that are not Fund Members that use MF Info Xchange and
Fund Members that maintain more than 25 Security Issue IDs on Fund/SERV
that use MF Info Xchange, $1,500 per month (``Tier 1''). NSCC is
proposing to charge Fund Members that maintain 25 or fewer Security
Issue IDs on Fund/SERV that use MF Info Xchange $250 per month (``Tier
2'').
---------------------------------------------------------------------------

    \11\ Fund/SERV Eligible Fund means a fund or other pooled
investment entity which are subject of orders processed through
Mutual Fund Services. See definition of ``Fund/SERV Eligible Fund,
Rule 1, supra note 5 and Section 1(c) of Rule 3, supra note 5.
    \12\ See Section 1(c) of Rule 3, supra note 5, which requires
that unless otherwise required by NSCC, each Fund/SERV Eligible Fund
be assigned a CUSIP number. CUSIP is a registered trademark of the
American Bankers Association.
---------------------------------------------------------------------------

    NSCC believes that the tiered structure will align the fees with
the costs of services provided by NSCC by setting the fees so that the
revenue received by NSCC would be sufficient to recover the costs of
building and maintaining the service. The tiered billing structure is
similar to NSCC's billing structure for its Mutual Fund Profile Service
(``MFPS''). Users of MFPS that use Phases I & II \13\ that have greater
than 25 Security Issue IDs in MFPS pay $1,250.00 per month whereas
users that have 25 or fewer Security Issue IDs registered in MFPS that
use Phases I & II pay $250.00 per month.\14\ Based on its experience
with MFPS \15\ and discussions with Fund Members, NSCC believes that
the threshold of greater than 25 Security Issue IDs has been a good
estimation of the size of the Fund Member and the amount of use of the
service by each Fund Member. Also based on pricing levels and usage in
MFPS and discussions with NSCC Members, NSCC believes that the $1,500
and $250 pricing levels are sufficient to recover the costs of building
and maintaining the service without being so excessive as to materially
disincentivize use of MF Info Xchange.
---------------------------------------------------------------------------

    \13\ Phases I & II are also known as MFPS I (Daily Price and
Rate File) and MFPS II (Security Issue Database and Distribution
Database). The terms Phase I and Phase II are used in the Rules
because MFPS I and MFPS II were implemented in phases with MFPS I
implemented first in 1996 and MFPS II implemented in 1999. See
Securities Exchange Act Release No. 37171 (May 8, 1996), 61 FR 24344
(May 14, 1996) (SR-NSCC-96-04) (order approving MFPS I
implementation) and Securities Exchange Act Release No. 40614
(October 28, 1998), 63 FR 59615 (November 4, 1998) (SR-NSCC-98-09)
(notice of filing of rule change implementing MFPS II).
    \14\ Section IV.J.b. of Addendum A and accompanying footnote 5
in Addendum A, supra note 5. See also Securities Exchange Act
Release No. 61413 (January 25, 2010), 75 FR 4894 (January 29, 2010)
(SR-NSCC-2009-12) (NSCC introduced the credit for MFPS for smaller
fund families that had 25 or fewer funds in their fund family) and
Securities Exchange Act Release No. 84771 (December 10, 2018), 83 FR
64393 (December 14, 2018) (SR-NSCC-2018-012) (NSCC reduced the fees
in MFPS to current levels) (``2018 Filing'').
    \15\ After NSCC lowered its fees in 2019 for funds with 25 or
fewer Security IDs on MFPS from $850 to $250, the number of such
funds using MFPS has doubled. See 2018 Filing, Id.

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(ii) AIP Fee Changes
    AIP is a standardized, trading and reporting platform that links
the alternative investments industry to securely and efficiently
exchange data and money relating to alternative investment products,
including hedge funds, funds of funds, private equity, non-traded real
estate investment trusts, managed futures and limited partnerships.
NSCC has undertaken a strategic review of its pricing structure for
AIP, and developed a revenue and pricing strategy with the goal of
aligning the pricing of AIP with costs of providing the service. As a
result of the review, NSCC has determined that certain fees in AIP
have, over time, become misaligned with the costs of service as a
result of increased technology run costs relating to the service. NSCC
would also like to lower certain fees relating to capital calls and
lower volume transfers \16\ to incentivize greater use of those
products. In connection with the realignment, NSCC is proposing to
eliminate a cap of $250,000 currently in place for AIP Distributors.
Currently, there are certain products for which a $250,000 fee cap
applies for AIP Distributors.\17\ Once an AIP Distributor has been
charged $250,000 for transactions relating to such products in a
calendar year, it will not pay with respect to transactions in those
products for the remainder of the calendar year.\18\ The fee cap was
put in place to incentivize greater use of AIP with respect to certain
products for AIP Distributors.\19\
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    \16\ AIP has a tiered billing system based on whether services
are being used for higher volume products or lower volume products.
See Section L.O.3 of Addendum A, supra note 5, which indicates which
products are considered higher volume and which are considered lower
volume. Fees are lower with respect to higher volume products.
    \17\ See Section IV.O.3. of Addendum A and accompanying footnote
12 of Addendum A, supra note 5.
    \18\ Id.
    \19\ See Securities Exchange Act Release No. 63634 (January 3,
2011), 76 FR 1475 (January 10, 2011) (SR-NSCC-2010-19) (stating that
the fee cap was implemented to ``encourage broker-dealers to use the
service and expand coverage of these products and increase the value
of the overall market'').
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    NSCC believes that the fee cap has been successful in incentivizing
AIP Distributors to use AIP and to require more of their fund
counterparties (i.e., AIP Manufacturers) to use AIP.\20\ Given the
growth of AIP and to readjust the overall revenues, NSCC no longer
believes that the fee cap is necessary as an incentive or appropriate
given AIP's operating margin.
---------------------------------------------------------------------------

    \20\ For instance, since the fee cap was put in place in 2010,
the number of Eligible AIP Products on the AIP platform has grown
from under 500 to over 7000.
---------------------------------------------------------------------------

    NSCC is also proposing to increase lower volume record transaction
fees for AIP Manufacturers from $1 to $2 (AIP Distributors will
continue to pay $1) in order to better align revenues of AIP with the
costs of providing the services.
    NSCC is proposing to lower fees relating to capital calls to
incentivize use of AIP with respect to capital calls. Capital calls are
considered ``Trades'' in the Rules and higher volume Trades are
currently priced at a range from $5 per trade to $4 per trade depending
on the number of trades in each calendar year \21\ and lower volume
Trades are $10 per trade.\22\ In addition to capital calls, Trades
include initial purchases, subsequent purchases, partial redemption
requests, full redemption requests and commitments. NSCC has received
feedback from AIP Members indicating that capital calls are performed
more frequently than other types of Trades and as a result, AIP Members
have not been using AIP for capital calls because the AIP Members
believe the price is currently too high for both higher volume products
and lower volume products with respect to capital calls. As a result,
NSCC is proposing to reduce the price for all capital calls to $2 to
incentivize use of AIP for capital calls. This reduction would apply to
capital calls with respect to higher volume products and lower volume
products.
---------------------------------------------------------------------------

    \21\ Section IV.O.1.ii of Addendum A, supra note 5.
    \22\ Section IV.O.2.ii of Addendum A, supra note 5.
---------------------------------------------------------------------------

    NSCC is also proposing to lower fees relating to lower volume
transfers to incentivize use of AIP with respect to lower volume
transfers. NSCC has received feedback from AIP Members that lower
volume transfers are also priced too high and as a result AIP Members
have not been using AIP for lower volume transfers. NSCC is proposing
to reduce lower volume transfers from $5 to $2 in order to incentivize
use of AIP for lower volume transfers.
(iii) Clarification Changes
    NSCC is also proposing to add a heading for Mutual Fund Services in
Addendum A and renumber the headings in Addendum A to reflect that a
number of services listed in Addendum A fall within Mutual Fund
Services. NSCC would also renumber other sections of Addendum A to
reflect the renumbering for Mutual Fund Services.
(iv) Proposed Rule Changes
A. MF Info Xchange Fees
    NSCC is proposing to add the fees to MF Info Xchange in new
proposed section IV.G.5 of Addendum A.
B. AIP Fee Changes
    NSCC is proposing to state that all capital calls are $2 per trade
in new proposed Section IV.L.1.c (for higher volume capital calls) and
new proposed Section IV.L.2.c (for lower volume capital calls) of
Addendum A. NSCC would add ``(other than capital calls)'' in proposed
sections IV.L.1.b. and IV.L.2.b. of Addendum A to reflect that capital
calls would be separately covered in other sections. NSCC is proposing
to increase the lower volume record transactions fees for AIP
Manufacturers in new proposed section IV.L.2.a. of Addendum A from $1
dollar per trade to $2 dollar per trade. NSCC is also proposing to
reduce lower volume transfers from $5 to $2 in new proposed Section
IV.L.2.d. of Addendum A. NSCC is proposing to remove the $250,000 fee
cap for AIP Distributors in new proposed Section IV.L.3. and to remove
the accompanying footnote 12 of Addendum A.
    Based on feedback from NSCC Members and a review of other pricing
levels, NSCC believes that:

 Reducing fees to $2 for all capital calls and reducing lower
volume transfers to $2 would incentivize NSCC Members to begin using
AIP with respect to capital calls and with respect to lower volume
transfers
 increasing the lower volume record transaction fees from $1 to
$2 and removing the fee cap for AIP Distributors would raise revenue to
an appropriate level to help ensure that AIP operates with a positive
operating margin without being so excessive as to materially
disincentivize the use of AIP for lower volume record transactions or
the use of AIP by AIP Distributors
C. Clarification Changes
    NSCC is proposing to add a heading ``Mutual Fund Services'' in
Section IV.G. of Addendum A and proposing to renumber Mutual Fund
Services under that heading to reflect the services that fall within
Mutual Fund Services. NSCC is also proposing to renumber sections
following Section IV.G. to reflect the renumbering within Section IV.G.
of Addendum A.
(iii) Expected Member/NSCC Impact
A. MF Info Xchange Fees
    The fee changes for MF Info Xchange would impact all users of the
service.

Based on a review of users in the first quarter of 2021, it is
anticipated that initially approximately 67% of the users will fall
within Tier 1 and be charged $1,500 per month and approximately 33% of
the users will fall within Tier 2 and be charged $250 per month. Of the
users in Tier 1, approximately 67% are expected to be Fund Members that
maintain more than 25 Security Issue IDs and approximately 33% are
expected to be NSCC Members that are not Fund Members.
    The fees are intended to cover the costs of developing and
maintaining MF Info Xchange in accordance with NSCC's cost-based plus
markup fee model.\23\ Following the implementation of fees, assuming
revenues and expenses remain constant,\24\ NSCC anticipates recouping
the costs of building MF Info Xchange within approximately three years
of implementing the fees and expects to have a positive operating
margin thereafter.
---------------------------------------------------------------------------

    \23\ See note 6, supra.
    \24\ It is not certain that revenues and expenses will remain
constant. Costs of providing the service may change, for instance,
if NSCC Members request service enhancements or NSCC's technology
costs change. In addition, revenues may change depending on the
number of users of the service. NSCC regularly reviews pricing
levels against costs of operation. As with its other services, if
NSCC determines that its operating margin is too high or too low,
NSCC would change pricing levels accordingly. See 2018 Filing, supra
note 14.
---------------------------------------------------------------------------

B. AIP Fee Changes
    In general, NSCC anticipates that, as result of the proposed
changes to remove the $250,000 fee cap, four AIP Distributors will see
a fee increase for use of the affected products. Based on a review of
client invoices in June 2021, which NSCC believes is representative of
typical AIP usage, NSCC anticipates that as a result of all of the fee
changes approximately 59% of AIP users comprised of mainly AIP
Manufacturers engaging in lower volume activity will see a fee
increase, approximately 40% of AIP users comprised of mainly AIP users
engaging in higher volume activity will see no fee impact and less than
1% of AIP users will see a fee decrease.
    The fee changes are intended to realign AIPs revenue with its
costs. AIP had a negative operating margin in 2020 and it is
anticipated to have a negative operating margin in 2021. Following the
fee changes, AIP anticipates that it will have a positive operating
margin in 2022 and going forward, consistent with NSCC's cost-based
plus markup fee model.\25\
---------------------------------------------------------------------------

    \25\ Id.
---------------------------------------------------------------------------

(iv) Implementation Timeline
    NSCC expects to implement the proposed rule changes on January 1,
2022. As proposed, a legend would be added to Addendum A stating there
are changes that became effective upon filing with the Commission but
have not yet been implemented. The proposed legend also would include
January 1, 2022, as the date on which such changes would be implemented
and the file number of this proposal, and state that, once this
proposal is implemented, the legend would automatically be removed from
Addendum A.
2. Statutory Basis
    NSCC believes this proposal is consistent with the requirements of
the Act and the rules and regulations thereunder applicable to a
registered clearing agency. Specifically, NSCC believes this proposal
is consistent with Sections 17A(b)(3)(D) \26\ and 17A(b)(3)(F) \27\ of
the Act and Rule 17Ad-22(e)(23)(ii),\28\ as promulgated under the Act,
for the reasons described below.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78q-1(b)(3)(D).
    \27\ 15 U.S.C. 78q-1(b)(3)(F).
    \28\ 17 CFR 240.17Ad-22(e)(23)(ii).
---------------------------------------------------------------------------

    Section 17A(b)(3)(D) of the Act \29\ requires, in part, that the
Rules provide for the equitable allocation of reasonable dues, fees,
and other charges among its participants. The proposed fee changes set
forth above are consistent with 17A(b)(3)(D) of the Act \30\ because
the proposed fees would be allocated equitably among the NSCC Members
that subscribe for those services based on each NSCC Member's use of
such services. In addition, NSCC believes that the proposed fee changes
are reasonable because they would enable NSCC to better align its
revenue with the costs and expenses required for NSCC to provide the
services to NSCC Members consistent with NSCC's cost-based plus markup
fee model.\31\ Specifically, NSCC has determined that assuming revenue
and expenses remain constant,\32\ adding the fee for MF Info Xchange
would allow NSCC to recoup the investments it has made in building the
service within approximately three years and allow it to operate with a
positive operating margin going forward. Based on the current usage and
projected revenue for AIP, the realignment of fees would result in
overall revenue that would be closer to the costs of providing the
service and at the same time provide incentives for users to use AIP
for capital calls and lower volume transfers. Therefore, by
establishing fees that align with the costs of delivery of these
products and services and allocating those fees equitably among the
subscribing NSCC Members, the proposed fee changes are consistent with
the requirements of Section 17A(b)(3)(D) of the Act.\33\
---------------------------------------------------------------------------

    \29\ 15 U.S.C. 78q-1(b)(3)(D).
    \30\ Id.
    \31\ See note 6, supra.
    \32\ See note 24, supra.
    \33\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

    Section 17A(b)(3)(F) of the Act \34\ requires, in part, that the
Rules promote the prompt and accurate clearance and settlement of
securities transactions. NSCC believes that the proposed clarifications
adding the Mutual Fund Services heading in Addendum A and renumbering
Addendum A as forth above would enhance NSCC Members' ability to
understand the fees associated with Mutual Fund Services. Specifically,
the proposed clarifications would clarify which services fall within
Mutual Fund Services, similar to the structure for Insurance &
Retirement Services and AIP in Addendum A. As such, the proposed
clarifications would allow NSCC Members to have a better understanding
of the Rules in relation to their activities and thereby assist in
promoting the requirements of Section 17A(b)(3)(F) of the Act.\35\
---------------------------------------------------------------------------

    \34\ 15 U.S.C. 78q-1(b)(3)(F).
    \35\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(23)(ii) under the Act \36\ requires NSCC to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to provide sufficient information to
enable participants to identify and evaluate the risks, fees, and other
material costs they incur by participating in the covered clearing
agency. The proposed clarifications adding the Mutual Fund Services
heading in Addendum A and renumbering Addendum A as set forth above
would help ensure that the fees set forth in Addendum A are clear and
transparent to NSCC Members. Having a clear and transparent Addendum A
would help NSCC Members to better understand NSCC's fees and help
provide NSCC Members with increased predictability and certainty
regarding the fees they incur in participating in NSCC. As such, by
improving the clarity and transparency of the Rules, NSCC believes the
proposed clarifications are consistent with Rule 17Ad-22(e)(23)(ii)
under the Act.\37\
---------------------------------------------------------------------------

    \36\ 17 CFR 240.17Ad-22(e)(23)(ii).
    \37\ Id.
---------------------------------------------------------------------------

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

    NSCC believes the proposed rule changes to add fees for MF Info
Xchange

and increase certain fees for AIP, may have an impact on competition.
NSCC believes these proposed rule changes could burden competition by
negatively affecting such NSCC Members' operating costs. While these
NSCC Members may experience increases in their fees when compared to
their fees under the current fee structure, NSCC does not believe such
change in fees would in and of itself mean that the burden on
competition is significant. This is because even though the amount of
the fee increase may seem significant in some instances to certain NSCC
Members (e.g., charging $1,500/mo for MF Info Xchange when it is free
now and removing the AIP $250,000 fee cap), NSCC believes the increase
in fees would similarly affect all NSCC Members that utilize the
services, and therefore the burden on competition would not be
significant.
    Regardless of whether the burden on competition is deemed
significant, NSCC believes any burden on competition that is created by
these proposed rule changes would be necessary and appropriate in
furtherance of the purposes of the Act, as permitted by Section
17A(b)(3)(I) of the Act.\38\
---------------------------------------------------------------------------

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

    The proposed rule changes to add fees for MF Info Xchange and
increase certain fees for AIP would be necessary in furtherance of the
purposes of the Act because the Rules must provide for the equitable
allocation of reasonable dues, fees, and other charges among its
participants.\39\ As described above, NSCC believes that the proposed
rule changes would result in fees that are equitably allocated (by
applying uniformly to all NSCC Members that use the applicable
services) and would result in reasonable fees (by allowing NSCC to
recoup its expenses in building MF Info Xchange and allow both MF Info
Xchange and AIP to operate with a positive operating margin). As such,
NSCC believes these proposed rule changes would be necessary in
furtherance of the purposes of the Act, as permitted by Section
17A(b)(3)(I) of the Act.\40\
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78q-1(b)(3)(D).
    \40\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    NSCC also believes that the fees are appropriate in furtherance of
the purposes of the Act because the fees are set so that the revenue
received by NSCC would be closer to the costs of building and providing
the services consistent with NSCC's cost-based plus markup fee model
and are being equitably allocated among NSCC Members.\41\ Moreover,
NSCC believes that the fees will enable NSCC to pay for building and
continue to operate MF Info Xchange. NSCC believes MF Info Xchange has
a positive effect on competition among users because the service allows
data providers to more effectively communicate event notifications
relating to funds and other pooled investment entities (``Funds''). The
service provides data providers with a more efficient method of
distributing event notifications to parties that need to see such
information in order to facilitate the trading and processing of Fund
securities. NSCC believes this enhances competition among Funds and
Fund participants by allowing parties to distribute such information
more quickly and in a more streamlined manner. Based on experiences
with the similar billing structure used in MFPS and discussions with
NSCC Members, NSCC does not believe that that the addition of the
proposed fees for MF Info Xchange would materially disincentivize use
of MF Info Xchange. As such, NSCC believes these proposed rule changes
would be appropriate in furtherance of the purposes of the Act, as
permitted by Section 17A(b)(3)(I) of the Act.\42\
---------------------------------------------------------------------------

    \41\ See note 6, supra.
    \42\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    NSCC does not believe that any proposed fee reductions would have a
burden on competition and may promote competition because the proposed
fee reductions would allow NSCC Members to engage in a greater number
of transactions with lower costs than the prices they would incur today
for the same transactions.
    NSCC does not believe that the proposed clarifications to add the
Mutual Fund Services heading to Addendum A and to renumber Addendum A
would have any impact on competition because such changes are
clarifications of the Rules that would not affect the rights or
obligations of NSCC Members.

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

    NSCC has conducted ongoing outreach to NSCC Members in order to
provide them with notice of the proposed changes to the affected fees.
    NSCC has not received or solicited any written comments relating to
this proposal. If any written comments are received by NSCC, they will
be publicly filed as an Exhibit 2 to this filing, as required by Form
19b-4 and the General Instructions thereto.
    Persons submitting comments are cautioned that, according to
Section IV (Solicitation of Comments) of the Exhibit 1A in the General
Instructions to Form 19b-4, the Commission does not edit personal
identifying information from comment submissions. Commenters should
submit only information that they wish to make available publicly,
including their name, email address, and any other identifying
information.
    All prospective commenters should follow the Commission's
instructions on how to submit comments, available at https://www.sec.gov/regulatory-actions/how-to-submit-comments. General
questions regarding the rule filing process or logistical questions
regarding this filing should be directed to the Main Office of the
Commission's Division of Trading and Markets at
[email protected] or<PHONE_NUMBER>.
    NSCC reserves the right not to respond to any comments received.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) \43\ of the Act and paragraph (f) \44\ of Rule 19b-4
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
---------------------------------------------------------------------------

    \43\ 15 U.S.C 78s(b)(3)(A).
    \44\ 17 CFR 240.19b-4(f).
---------------------------------------------------------------------------

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-NSCC-2021-017 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange

Commission, 100 F Street NE, Washington, DC 20549.

All submissions should refer to File Number SR-NSCC-2021-017. 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 the filing also will be available for inspection
and copying at the principal office of NSCC and on DTCC's website
(https://dtcc.com/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 Number SR-NSCC-2021-017 and should be submitted on
or before January 26, 2022.

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

    \45\ 17 CFR 200.30-3(a)(12).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2021-28518 Filed 1-4-22; 8:45 am]
BILLING CODE 8011-01-P