[Federal Register Volume 85, Number 9 (Tuesday, January 14, 2020)]
[Notices]
[Pages 2187-2191]
[FR Doc No: 2020-00367]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-87912; File No. SR-NSCC-2019-802]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing of Advance Notice To Issue Term Debt as
Part of Its Liquidity Risk Management

January 8, 2020.
    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 (``Act''),\2\ notice is hereby given that on
December 13, 2019, National Securities Clearing Corporation (``NSCC'')
filed with the Securities and Exchange Commission (``Commission'') the
advance notice SR-NSCC-2019-802 (``Advance Notice'') as described in
Items I, II and III below, which Items have been prepared by the
clearing agency. The Commission is publishing this notice to solicit
comments on the Advance Notice from interested persons.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
---------------------------------------------------------------------------

I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice

    This Advance Notice is filed by NSCC in connection with a proposal
to raise additional prefunded liquidity resources through the periodic
issuance and private placement of term debt (``Debt Issuance''). The
proceeds from the Debt Issuance would supplement NSCC's existing
default liquidity risk management resources. The proposed changes are
described in greater detail below.

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

    In its filing with the Commission, NSCC 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. NSCC has prepared summaries, set forth in sections A and B
below, of the most significant aspects of such statements.

(A) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants, or Others

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

(B) Advance Notice Filed Pursuant to Section 806(e) of the Clearing
Supervision Act

Description of Proposed Change
    NSCC is proposing to raise additional prefunded liquidity through
the periodic issuance and private placement of term debt to qualified
institutional investors in an aggregate amount not to exceed $10
billion, as described in

greater detail below. The proceeds of the Debt Issuance would
supplement NSCC's existing default liquidity resources, which also
include, for example, the proceeds of the issuance and private
placement of short-term, unsecured notes in the form of commercial
paper and extendable notes (``Commercial Paper Program'') \3\ and cash
that would be obtained by drawing upon NSCC's committed 364-day credit
facility with a consortium of banks (``Line of Credit'').\4\
---------------------------------------------------------------------------

    \3\ See Securities Exchange Act Release Nos. 75730 (August 19,
2015), 80 FR 51638 (August 25, 2015) (File No. SR-NSCC-2015-802);
82676 (February 9, 2018), 83 FR 6912 (February 15, 2018) (File No.
SR-NSCC-2017-807).
    \4\ See Securities Exchange Act Release No. 80605 (May 5, 2017),
82 FR 21850 (May 10, 2017) (File Nos. SR-DTC-2017-802; SR-NSCC-2017-
802).
---------------------------------------------------------------------------

    NSCC, along with its affiliates, The Depository Trust Company
(``DTC'') and Fixed Income Clearing Corporation (``FICC,'' and,
together with NSCC and DTC, the ``Clearing Agencies''), maintain a
Clearing Agency Liquidity Risk Management Framework (``Framework''),
which sets forth the manner in which NSCC measures, monitors and
manages the liquidity risks that arise in or are borne by it.\5\ NSCC
periodically measures its liquidity needs pursuant to the Framework.\6\
NSCC's default liquidity resources collectively provide NSCC with
liquidity to complete end-of-day settlement in the event of the default
of a Member.\7\ The proposed Debt Issuance would supplement its
existing default liquidity resources and provide NSCC with an
additional resource it may draw from to meet its future liquidity
needs, as measured pursuant to the Framework.\8\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release Nos. 82377 (December 21,
2017), 82 FR 61617 (December 28, 2017) (File Nos. SR-DTC-2017-004;
SR-FICC-2017-008; SR-NSCC-2017-005). Following approval of this
proposal, the Clearing Agencies would file a proposed rule change to
amend the Framework to include the proceeds of the Debt Issuance as
an additional qualifying liquidity resource of NSCC.
    \6\ Id.
    \7\ Terms not defined herein are defined in NSCC's Rules and
Procedures (``Rules'') available at http://www.dtcc.com/~/media/
Files/Downloads/legal/rules/nscc_rules.pdf. The events that
constitute a Member default are specified in Rule 46 (Restrictions
on Access to Services) of the Rules, which provides that NSCC's
Board of Directors may suspend a Member or prohibit or limit a
Member's access to NSCC's services in enumerated circumstances; this
includes default in delivering funds or securities to NSCC, or a
Member's experiencing such financial or operational difficulties
that NSCC determines, in its discretion, that restriction on access
to services is necessary for its protection and for the protection
of its membership. Id.
    \8\ Supra note 5.
---------------------------------------------------------------------------

    By supplementing NSCC's existing default liquidity resources, the
proposal would mitigate risks to NSCC that it is unable to secure
default liquidity resources in an amount necessary to meet its
liquidity needs. For example, the proposal would help mitigate the
risks that investor demand for the short-term notes issued under the
Commercial Paper Program weakens, or that NSCC is unable to renew its
Line of Credit at the targeted amount.
    Terms of the Debt Issuance. NSCC would engage a trustee and
underwriting banks to issue the term debt to qualified institutional
investors through a private placement and offering in reliance on an
exemption from registration under Section 4(a)(2) of the Securities Act
of 1933.\9\ NSCC would be party to certain transaction documents in
connection with each issuance and private placement, including an
indenture with the trustee and purchase agreements. The purchase
agreements would each be based on the standard form of dealer agreement
for similar debt issuances, which is published by the Securities
Industry and Financial Markets Association. The material terms and
conditions of the Debt Issuance are summarized below.
---------------------------------------------------------------------------

    \9\ 15 U.S.C. 77d(a)(2).
---------------------------------------------------------------------------

    NSCC is proposing to issue up to an aggregate amount of $10 billion
in term debt, with an expected average amount issued and outstanding at
any time of approximately $2-3 billion, as necessitated by liquidity
needs. While, at the time of this filing, NSCC's current liquidity
needs would not require it to issue up to an aggregate amount of $10
billion, NSCC believes that is advisable to authorize up to this
aggregate amount in order to help manage its potential future liquidity
needs and the potential risk that it is not able to obtain the
requisite amounts from its other sources of default liquidity.
    NSCC estimates that each issuance would be in an amount between
approximately $250 million and $1.5 billion, with an initial issuance
expected to be approximately $1 billion.\10\ NSCC believes an initial
issuance should be at an amount that would attract the attention of
potential investors. Therefore, NSCC believes that approximately $1
billion would be an appropriate amount for the initial issuance for
this reason.
---------------------------------------------------------------------------

    \10\ If market conditions at the time of the inaugural issuance
are favorable, NSCC may issue an initial aggregate amount of more
than $1 billion.
---------------------------------------------------------------------------

    The term debt would be represented by unsecured, unsubordinated and
non-convertible medium-term and long-term global notes held in the name
of The Depository Trust Company (``DTC''), or its nominee, Cede & Co.
The notes would be issued and transferred only through the book-entry
system of DTC. The term debt would be interest bearing at either fixed
or floating interest rates that are set at market rates customary for
such type of debt and reflective of the creditworthiness of NSCC.
    NSCC expects the average maturity of the term debt issued under the
Debt Issuance would range between two and ten years, which are the
typical lengths of medium- and long-term debt. NSCC already issues
short-term debt through the Commercial Paper Program,\11\ and NSCC does
not believe maturities over ten years would be suitable as debt with
longer maturities are generally more expensive to issue and may present
higher risks related to interest rates. NSCC would time each debt
issuance and stagger maturity dates of each issuance in order to ladder
the maturities. NSCC would have the ability to make use of optional
features to call any of the issued term debt, in whole or in part, at
any time prior to the maturity date of that debt. The issued term debt
may also contain renewable terms.
---------------------------------------------------------------------------

    \11\ Supra note 3.
---------------------------------------------------------------------------

    NSCC would hold the proceeds from the Debt Issuance in either its
cash deposit account at the Federal Reserve Bank of New York
(``FRBNY'') or in accounts at other creditworthy financial institutions
in accordance with the Clearing Agency Investment Policy.\12\ These
amounts would be available to draw to complete settlement as needed.
---------------------------------------------------------------------------

    \12\ See Securities Exchange Act Release Nos. 79528 (December
12, 2016), 81 FR 91232 (December 16, 2016) (File Nos. SR-DTC-2016-
007, SR-FICC-2016-005, SR-NSCC-2016-003); 84949 (December 21, 2018),
83 FR 67779 (December 31, 2018) (File Nos. SR-DTC-2018-012, SR-FICC-
2018-014, SR-NSCC-2018-013). Following notice of no-objection by the
Commission of this proposal, the Clearing Agencies would file a
proposed rule change to amend the Clearing Agency Investment Policy
to include the proceeds of the Debt Issuance as default liquidity
funds, within the definition of ``Investable Funds,'' as such term
is defined therein, and provide that such amounts would be held in
bank deposits at eligible commercial banks or at NSCC's cash deposit
account at the FRBNY.
---------------------------------------------------------------------------

    NSCC Liquidity Risk Management. As a central counterparty
(``CCP''), NSCC occupies an important role in the securities settlement
system by interposing itself between counterparties to financial
transactions, thereby reducing the risk faced by its Members and
contributing to global financial stability. NSCC's liquidity risk
management plays an integral part in NSCC's ability to perform its role
as a CCP. If a Member defaults, as a CCP, NSCC will need to complete
settlement of guaranteed transactions on the failing Member's behalf
from the date of default through the remainder of the settlement cycle
(currently two days for securities

that settle on a regular way basis in the U.S. markets).
    As noted above, the Framework describes NSCC's liquidity risk
management strategy to maintain sufficient liquidity resources in order
to meet the potential funding required to settle outstanding
transactions of a defaulting Member, or affiliated family of Members,
in a timely manner.\13\ The Framework also addresses how NSCC meets its
requirement to hold qualifying liquid resources, as such term is
defined in Rule 17Ad-22(a)(14) under the Act,\14\ sufficient to meet
its minimum liquidity resource requirement in each relevant currency
for which it has payment obligations owed to its Members. NSCC
considers each of its existing default liquidity resources to be
qualifying liquid resources.\15\ These resources include: (1) The cash
in NSCC's Clearing Fund; \16\ (2) the cash that would be obtained by
drawing upon its Line of Credit; (3) additional cash deposits, known as
``Supplemental Liquidity Deposits'', designed to cover the heightened
liquidity exposure arising around monthly option expiry periods,
required from those Members whose activity would pose the largest
liquidity exposure to NSCC; \17\ and (4) cash proceeds from the
Commercial Paper Program. The proceeds from the Debt Issuance would
also be default liquidity that is considered a qualifying liquid
resource.
---------------------------------------------------------------------------

    \13\ Supra note 5.
    \14\ 17 CFR 240.17Ad-22(a)(14).
    \15\ Id.
    \16\ See Rule 4 and Procedure XV of the Rules, supra note 5.
    \17\ Supplemental Liquidity Deposits are described in Rule 4A of
the Rules, supra note 7.
---------------------------------------------------------------------------

    By providing NSCC with additional, prefunded, and readily available
qualifying liquid resources to be used to complete end-of-day
settlement as needed in the event of a Member default, the Debt
Issuance would provide additional certainty, stability, and safety to
NSCC, its Members, and the U.S. equities market that it serves as a
CCP.
    NSCC believes the Debt Issuance may also reduce its concentration
risk with respect to its default liquidity resources. NSCC would not
limit the potential qualified institutional investors that purchase
term debt and, therefore, is not able to ensure that the Debt Issuance
would reduce concentration risk. However, the types of entities who
typically invest in term debt include, for example, insurance
companies, asset managers and pension funds, and these entities are
generally not Members of NSCC or lenders under the Line of Credit.
While these types of entities are the same types of entities that
invest in commercial paper, the firms that invest in term debt are
generally not the same firms that invest in commercial paper.
Therefore, the prospective investors in the term debt are not expected
to be the same firms that currently provide any material amount of
default liquidity resources to NSCC either through the Commercial Paper
Program or the Line of Credit, nor as NSCC Members.
Anticipated Effect on and Management of Risk
    NSCC's consistent ability to timely complete settlement is a key
part of NSCC's role as a CCP and allows NSCC to mitigate counterparty
risk within the U.S. markets. In order to sufficiently perform this key
role in promoting market stability, it is critical that NSCC has access
to adequate liquidity resources to enable it to complete end-of-day
settlement, notwithstanding the default of a Member. NSCC believes that
the overall impact of the proposed Debt Issuance on risks presented by
NSCC would be to reduce the liquidity risks associated with NSCC's
operation as a CCP by providing it with an additional source of
liquidity to complete end-of-day settlement in the event of a Member
default. NSCC further believes that a reduction in its liquidity risk
would reduce systemic risk and would have a positive impact on the
safety and soundness of the clearing system.
    While the proposed Debt Issuance, like any liquidity resource,
would involve certain risks, most of these risks are standard in any
debt issuance. One risk associated with the proposed Debt Issuance
would be the risk that NSCC does not have sufficient funds to repay
issued term debt when the notes mature. NSCC believes that this risk is
extremely remote, as the proceeds of the Debt Issuance would be used
only in the event of a Member default, and NSCC would replenish that
cash, as it would replenish any of its liquidity resources that are
used to facilitate settlement in the event of a Member default, with
the proceeds of the close out of that defaulted Member's portfolio.
This notwithstanding, in the event that proceeds from the close out are
insufficient to fully repay a liquidity borrowing, then NSCC would look
to its loss waterfall to repay any outstanding liquidity
borrowings.\18\ NSCC would further mitigate this risk through the
timing of each debt issuance and by staggering the maturity dates of
the issued term debt in a way that would provide NSCC with time to
complete the close out of a defaulted Member's portfolio. A second risk
is that NSCC may be unable to issue new term debt as issued notes
mature due to, for example, stressed markets at the time the issued
debt matures. This risk is mitigated by the fact that NSCC maintains a
number of different default liquidity resources, described above, and
would not depend on the Debt Issuance as its sole source of liquidity.
---------------------------------------------------------------------------

    \18\ See Rule 4 (Clearing Fund) of the Rules, supra note 7.
---------------------------------------------------------------------------

    NSCC may face interest rate risk, which is the risk that the
borrowing interest rate on issued debt is higher than the interest rate
at which proceeds of issued debt would be invested. NSCC would mitigate
this risk by issuing term debt at different maturities and at both
fixed interest rates and floating interest rates. The interest rates
for the term debt issued at floating interest rates would generally
correlate with the rates on investments of those proceeds and would be
expected to result in a largely stable net spread between the borrowing
interest rate and the investment interest rate, mitigating this risk.
For the term debt issued at a flat interest rate, NSCC would consider
interest rate swaps as a method to mitigate interest rate risk,
depending on market environment at that time.
    NSCC could also face a related financial risk that the expense of a
Debt Issuance exceeds NSCC's income and negatively impacts NSCC's
financial health or its creditworthiness. NSCC would mitigate this risk
by evaluating the expected interest rate risk (discussed above) and
expense of a Debt Issuance prior to issuing any debt, and if the
financing costs for the issuance of term debt increase, such that it is
not financially advisable to issue additional term debt, then NSCC may
determine to use its alternative liquidity resources to meet its
liquidity needs during those market conditions.
    NSCC believes that the significant systemic risk mitigation
benefits of providing NSCC with additional, prefunded liquidity
resources outweigh these risks.
Consistency With Clearing Supervision Act
    NSCC believes that that proposal would be consistent with Title
VIII of the Clearing Supervision Act, specifically with the risk
management objectives and principles of Section 802(b)(1), and with
certain of the risk management standards adopted by the Commission
pursuant to Section 805(a)(2), for the reasons described below.\19\
---------------------------------------------------------------------------

    \19\ 12 U.S.C. 5464(a)(2) and (b)(1).

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

(i) Consistency With Section 805(b)(1) of the Clearing Supervision Act
    Although the Clearing Supervision Act does not specify a standard
of review for an advance notice, its stated purpose is instructive: To
mitigate systemic risk in the financial system and promote financial
stability by, among other things, promoting uniform risk management
standards for systemically important financial market utilities and
strengthening the liquidity of systemically important financial market
utilities.\20\
---------------------------------------------------------------------------

    \20\ 12 U.S.C. 5464(b)(1).
---------------------------------------------------------------------------

    NSCC believes the proposal is consistent with Section 805(b)(1) of
the Clearing Supervision Act because it would support the mitigation of
systemic risk in the financial system and promote financial stability
in the event of a Member default by strengthening NSCC's liquidity. The
proposed Debt Issuance is designed to reduce NSCC's liquidity risks by
providing it with an additional source of liquidity to complete end-of-
day settlement in the event of a Member default. By supplementing
NSCC's existing default liquidity resources with prefunded liquidity,
the proposal would contribute to NSCC's goal of assuring that NSCC has
adequate liquidity resources to meet its settlement obligations
notwithstanding the default of any of its Members.
    In its critical role as a CCP, NSCC itself between counterparties
to financial transactions, thereby reducing the risk faced by its
Members and contributing to global financial stability. NSCC's
liquidity risk management plays an integral part in NSCC's ability to
perform its role as a CCP. Therefore, a reduction of NSCC's liquidity
risk would be expected to also reduce systemic risk in the financial
system and would promote financial stability by having a positive
impact on the safety and soundness of the clearing system.
    As a result, NSCC believes the proposed Debt Issuance would be
consistent with the objectives and principles of Section 805(b)(1) of
the Clearing Supervision Act, which specify the promotion of robust
risk management, promotion of safety and soundness, reduction of
systemic risks and support of the stability of the broader financial
system by, among other things, strengthening the liquidity of
systemically important financial market utilities, such as NSCC.
(ii) Consistency With Rule 17Ad-22(e)(7)(i) and (ii) Under the Act
    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,
like NSCC, and financial institutions engaged in designated activities
for which the Commission is the supervisory agency or the appropriate
financial regulator.\21\ The Commission has accordingly adopted risk
management standards under Section 805(a)(2) of the Clearing
Supervision Act \22\ and Section 17A of the Act (``Covered Clearing
Agency Standards'').\23\ The Covered Clearing Agency Standards require
covered 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.\24\
---------------------------------------------------------------------------

    \21\ 12 U.S.C. 5464(a)(2).
    \22\ Id.
    \23\ 17 CFR 240.17Ad-22(e).
    \24\ Id.
---------------------------------------------------------------------------

    NSCC believes that the proposed Debt Issuance is consistent with
Rule 17Ad-22(e)(7)(i) and (ii) of the Covered Clearing Agency Standards
for the reasons described below.\25\
---------------------------------------------------------------------------

    \25\ 17 CFR 240.17Ad-22(e)(7)(i), (ii).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7)(i) under the Act requires that NSCC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to maintain sufficient liquid resources at the
minimum in all relevant currencies to effect same-day and, where
appropriate, intraday and multiday settlement of payment obligations
with a high degree of confidence under a wide range of foreseeable
stress scenarios that includes, but is not limited to, the default of
the participant family that would generate the largest aggregate
payment obligation for the covered clearing agency in extreme but
plausible market conditions.\26\ Rule 17Ad-22(e)(7)(ii) under the Act
requires that NSCC establish, implement, maintain and enforce written
policies and procedures reasonably designed to hold qualifying liquid
resources sufficient to meet the minimum liquidity resource requirement
under Rule 17Ad-22(e)(7)(i) in each relevant currency for which NSCC
has payment obligations owed to its Members.\27\
---------------------------------------------------------------------------

    \26\ 17 CFR 240.17Ad-22(e)(7)(i).
    \27\ 17 CFR 240.17Ad-22(e)(7)(ii). For purposes of this Rule,
``qualifying liquid resources'' are defined in Rule 17Ad-22(a)(14)
as including, in part, cash held either at the central bank of issue
or at creditworthy commercial banks. 17 CFR 240.17Ad-22(a)(14).
---------------------------------------------------------------------------

    As described above, the proposed Debt Issuance would provide NSCC
with an additional resource of prefunded default liquidity, which it
would use to complete end-of-day settlement in the event of the default
of a Member. The proceeds of the Debt Issuance would be cash held by
NSCC at either its cash deposit account at the FRBNY or at a
creditworthy commercial bank, pursuant to the Clearing Agency
Investment Policy.\28\ Therefore, the proceeds of the Debt Issuance
would be considered a qualifying liquid resource, as defined by Rule
17Ad-22(a)(14).\29\ As such, the proposed Debt Issuance would support
NSCC's ability to hold sufficient qualifying liquid resources to meet
its minimum liquidity resource requirement under Rule 17Ad-
22(e)(7)(i).\30\
---------------------------------------------------------------------------

    \28\ Supra note 12.
    \29\ 17 CFR 240.17Ad-22(a)(14).
    \30\ 17 CFR 240.17Ad-22(e)(7)(i).
---------------------------------------------------------------------------

    For these reasons, NSCC believes the proposal would support NSCC's
compliance with Rule 17Ad-22(e)(7)(i) and (ii) by providing it with an
additional qualifying liquid resource.\31\
---------------------------------------------------------------------------

    \31\ 17 CFR 240.17Ad-22(e)(7)(i), (ii).
---------------------------------------------------------------------------

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. The clearing agency 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 the clearing agency 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 the clearing agency in writing that it does not object to the
proposed change and authorizes the clearing agency to implement the
proposed change on an earlier date, subject to any conditions imposed
by the Commission.
    The clearing agency shall post notice on its website 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 Number SR-NSCC-2019-802 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-2019-802. 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 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 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
(http://dtcc.com/legal/sec-rule-filings.aspx). 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-NSCC-2019-802 and should be submitted on
or before January 29, 2020.

    By the Commission.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2020-00367 Filed 1-13-20; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 40 (Tuesday, March 1, 2022)]
[Notices]
[Pages 11493-11494]
[FR Doc No: 2022-04325]

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

SECURITIES AND EXCHANGE COMMISSION

Sunshine Act Meetings

TIME AND DATE:  2:00 p.m. on Thursday, March 3, 2022.

PLACE:  The meeting will be held via remote means and/or at the
Commission's headquarters, 100 F Street NE, Washington, DC 20549.

STATUS:  This meeting will be closed to the public.

MATTERS TO BE CONSIDERED:  Commissioners, Counsel to the Commissioners,
the Secretary to the Commission, and recording secretaries will attend
the closed meeting. Certain staff members who have an interest in the
matters also may be present.
    In the event that the time, date, or location of this meeting
changes, an announcement of the change, along with the new time, date,
and/or place of the meeting will be posted on the Commission's website
at https://www.sec.gov.
    The General Counsel of the Commission, or his designee, has
certified that, in his opinion, one or more of the exemptions set forth
in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR
200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10),
permit consideration of the scheduled matters at the closed meeting.
    The subject matter of the closed meeting will consist of the
following topics:

    Institution and settlement of injunctive actions;
    Institution and settlement of administrative proceedings;
    Resolution of litigation claims; and
    Other matters relating to examinations and enforcement
proceedings.

    At times, changes in Commission priorities require alterations in
the scheduling of meeting agenda items that may consist of
adjudicatory,

examination, litigation, or regulatory matters.

CONTACT PERSON FOR MORE INFORMATION: For further information; please
contact Vanessa A. Countryman from the Office of the Secretary at (202)
551-5400.

(Authority: 5 U.S.C. 552b.)

     Dated: February 24, 2022.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2022-04325 Filed 2-25-22; 11:15 am]
BILLING CODE 8011-01-P


UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on July 5, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-21353

________________________________________________________________________
_________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Joint Application of   Delta Air Lines, Inc. (Delta), and Aerovias de
Mexico, S.A. de C.V. (Aeromexico) filed 5/27/05 for:

XX  Exemption for Delta for two years under 49 U.S.C. 40109 to provide
the following service:

Scheduled foreign air transportation of persons, property, and mail
between the terminal point San Diego, California, and the terminal point
Mexico City, Mexico, and to combine this exemption authority with all of
Delta’s existing certificate and exemption authority, consistent with
applicable international agreements.  Delta states that it will use the
authority by placing its “DL” code on flights operated by Aeromexico
in the market.

XX  Statement of authorization for Aeromexico for indefinite duration
under CFR Part 212 to:

Display Delta’s “DL” designator code on flights operated by
Aeromexico between the terminal point San Diego, California, and the
terminal point Mexico City, Mexico.

Applicant reps: Alexander Van der Bellen,<PHONE_NUMBER> (Delta)  DOT
Analyst: Linda Lundell<PHONE_NUMBER>

           William C. Evans<PHONE_NUMBER> (Aeromexico)

D I S P O S I T I O N

XX	Granted (subject to conditions, see below)

The above action, granting exemption authority to Delta, was effective
when taken: July 5, 2005, through July 5, 2007.

The above action, granting a statement of authorization to Aeromexico,
was effective when taken:

July 5, 2005, and will remain in effect indefinitely, subject to the
conditions below.

Action taken by:   Paul L. Gretch, Director

		      Office of International Aviation

XX  The authority granted is consistent with the aviation agreement
between the United States and Mexico.

												2

Conditions:  The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2, and is limited to code-share services only.
Consistent with our policy, the dormancy notice period will begin July
6, 2005, the applicants’ proposed startup date for these services.

The route integration authority granted is subject to the condition that
any service provided under this exemption shall be consistent with all
applicable agreements between the United States and the foreign
countries involved.  Furthermore, (a) nothing in award of the route
integration authority granted should be construed as conferring upon
Delta rights (including fifth-freedom intermediate and/or beyond rights)
to serve markets where U.S. carrier entry is limited unless Delta
notifies the Department of its intent to serve such a market and unless
and until the Department has completed any necessary carrier selection
procedures to determine which carrier(s) should be authorized to
exercise such rights; and (b) should there be a request by any carrier
to use the limited-entry route rights that are included in Delta’s
authority by virtue of the route integration exemption granted here, but
that are not then being used by Delta, the holding of such authority by
route integration will not be considered as providing any preference for
Delta in a competitive carrier selection proceeding to determine which
carrier(s) should be entitled to use the authority at issue.

The Statement of Authorization granted to Aeromexico is subject to the
following conditions:

(a) The statement of authorization will remain in effect only as long as
Delta and Aeromexico continue to hold the underlying authority to
operate the code-share services at issue, and the code-share agreement
providing for the code-share operations remains in effect.

(b) Delta and/or Aeromexico must promptly notify the Department (Office
of International Aviation) if the code-share agreement is no longer
effective or if the carriers decide to cease operating all or a portion
of the approved code-share services. (Such notice should be filed in
Docket OST-2005-21353.)

(c) The code-sharing operations conducted under this authority must
comply with 14 CFR 257 and with any amendment to the Department’s
regulations concerning code-share arrangements that may be adopted.
Notwithstanding any provisions in the contract between the carriers, our
approval here is expressly conditioned upon the requirements that the
subject foreign air transportation be sold in the name of the carrier
holding out such service in computer reservation systems and elsewhere;
that the carrier selling such transportation (i.e., the carrier shown on
the ticket) accept responsibility for the entirety of the code-share
journey for all obligations established in its contract of carriage with
the passenger; and that the passenger liability of the operating carrier
be unaffected; and the operating carrier shall not permit the code of
its U.S. code-sharing partner to be carried on any flight that enters,
departs, or transits the airspace of any area for whose airspace the
Federal Aviation Administration has issued a flight prohibition.

(d) The authority granted here is specifically conditioned so that
neither Delta nor Aeromexico shall give any force or effect to any
contractual provisions between themselves that are contrary to these
conditions.

(e) We may amend, modify, or revoke the authority granted in this Notice
at any time without hearing at our discretion.

________________________________________________________________________
______

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp"
http://dms.dot.gov//reports/reports_aviation.asp

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544.
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

05/2004

   Aeromexico already holds the underlying exemption authority to
provide air transportation of persons, property, and mail in the Mexico
City-San Diego market (see Notice of Action Taken dated May 27, 2005, in
Docket OST-2005-21252).

 We expect this notification to be received within 10 days of such
non-effectiveness or of such decision.


[Federal Register Volume 82, Number 136 (Tuesday, July 18, 2017)]
[Notices]
[Page 32900]
[FR Doc No: 2017-14967]

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

SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736

Extension:
    Rule 203-3, Form ADV-H; SEC File No. 270-481, OMB Control No.
3235-0538

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget (``OMB'') for extension and approval.
    The title for the collection of information is ``Form ADV-H under
the Investment Advisers Act of 1940.'' Rule 203-3 (17 CFR 275.203-3)
under the Investment Advisers Act of 1940 (15 U.S.C. 80b) requires that
registered advisers requesting either a temporary or continuing
hardship exemption submit the request on Form ADV-H. Rule 204-4 (17 CFR
275.204-4) under the Investment Advisers Act of 1940 requires that
exempt reporting advisers requesting a temporary hardship exemption
submit the request on Form ADV-H. The purpose of this collection of
information is to permit advisers to obtain a hardship exemption to not
complete an electronic filing. The temporary hardship exemption that is
available to registered advisers under rule 203-3 and exempt reporting
advisers under rule 204-4 permits these advisers to make late filings
due to unforeseen computer or software problems. The continuing
hardship exemption available to registered advisers under rule 203-3
permits advisers to submit all required electronic filings on hard copy
for data entry by the operator of the IARD.
    The Commission has estimated that compliance with the requirement
to complete Form ADV-H imposes a total burden of approximately one hour
for an adviser. Based on our experience, we estimate that we will
receive two Form ADV-H filings annually from registered investment
advisers and one Form ADV-H filing annually from exempt reporting
advisers. Based on the 60 minute per respondent estimate, the
Commission estimates a total annual burden of 3 hours for this
collection of information.
    Rule 203-3, rule 204-4, and Form ADV-H do not require recordkeeping
or records retention. The collection of information requirements under
the rule and form are mandatory. The information collected pursuant to
the rule and Form ADV-H consists of filings with the Commission. These
filings are not kept confidential. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless it displays a currently valid control number.
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information collected; and (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
    Please direct your written comments to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email
to<EMAIL_ADDRESS>
    Dated: July 11, 2017.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2017-14967 Filed 7-17-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 82 (Monday, April 29, 2013)]
[Notices]
[Pages 25081-25082]
[FR Doc No: 2013-10050]

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

ENVIRONMENTAL PROTECTION AGENCY

[FRL-9806-1]

Reissuance of Final NPDES General Permits for Facilities/
Operations That Generate, Treat, and/or Use/Dispose of Sewage Sludge by
Means of Land Application, Landfill, and Surface Disposal in EPA Region
8

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of issuance of NPDES general permits.

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

SUMMARY: Region 8 of the EPA is hereby giving notice of its reissuance
of the National Pollutant Discharge Elimination System (NPDES) general
permits for facilities or operations that generate, treat, and/or use/
dispose of sewage sludge by means of land application, landfill, and
surface disposal in the States of CO, MT, ND, and WY and in Indian
country in the States of CO, MT, ND, SD, WY and UT (except for the
Goshute Indian Reservation and the Navajo Indian Reservation). The
effective date of the general permits is May 13, 2013.

DATES: The general permits become effective on May 13, 2013 and will
expire five years from that date. For appeal purposes, the 120 day time
period for appeal to the U.S. Federal Courts will begin May 13, 2013.

FOR FURTHER INFORMATION CONTACT: Additional information concerning the
final permits may be obtained from Bob Brobst, EPA Region 8, Wastewater
Unit (8P-W-WW), 1595 Wynkoop Street, Denver, CO 80202-1129, telephone
(303) 312-6129 or Email at<EMAIL_ADDRESS>The administrative
record is available by appointment for review and copying, fee for
copies may be required, at the EPA Region 8 offices during the hours of
10:00 a.m. to 4:00 p.m. Monday through Friday, Federal holidays
excluded. The final general permits, the fact sheet, and additional
information may be downloaded from the EPA Region 8 Web page at http://www.epa.gov/region08/water/biosolids/documents.html. Please allow one
week after date of this publication for items to be uploaded to the Web
page.

SUPPLEMENTARY INFORMATION: The NPDES permit numbers and the areas
covered by each general permit are listed below.

----------------------------------------------------------------------------------------------------------------
              State                            Permit No.                 Area covered by the general permit
----------------------------------------------------------------------------------------------------------------
Colorado.........................  COG650000                          State of Colorado except for Federal
                                                                       Facilities and Indian country.
                                   COG651000                          Indian country within the State of
                                                                       Colorado and the portions of the Ute
                                                                       Mountain Indian Reservation located in
                                                                       New Mexico and in Utah.
                                   COG652000                          Federal Facilities in the State of
                                                                       Colorado, except those located in Indian
                                                                       country, which are covered under permit
                                                                       COG51000.
Montana..........................  MTG650000                          State of Montana except for Indian
                                                                       country.
                                   MTG651000                          Indian country in the State of Montana.
North Dakota.....................  NDG650000                          State of North Dakota except for Indian
                                                                       country.
                                   NDG651000                          Indian country within the State of North
                                                                       Dakota (except for Indian country located
                                                                       within the former boundaries of the Lake
                                                                       Traverse Indian Reservation, which are
                                                                       covered under permit SDG651000) and that
                                                                       portion of the Standing Rock Indian
                                                                       Reservation located in South Dakota.
South Dakota.....................  SDG651000                          Indian country within the State of South
                                                                       Dakota (except for the Standing Rock
                                                                       Indian Reservation, which is covered
                                                                       under permit NDG651000), that portion of
                                                                       the Pine Ridge Indian Reservation located
                                                                       in Nebraska, and Indian country located
                                                                       in North Dakota within the former
                                                                       boundaries of the Lake Traverse Indian
                                                                       Reservation.

Utah.............................  UTG651000                          Indian country within the State of Utah
                                                                       except for the Goshute Indian
                                                                       Reservation, Navajo Indian Reservation,
                                                                       and Ute Mountain Indian Reservation
                                                                       (which is covered under permit
                                                                       COG651000).
Wyoming..........................  WYG650000                          State of Wyoming except for Indian
                                                                       country.
                                   WYG651000                          Indian country within the State of
                                                                       Wyoming.
----------------------------------------------------------------------------------------------------------------

    On February 19, 1993 (58 FR 9248), the EPA promulgated ``Standards
for the Use or Disposal of Sewage Sludge'' (40 CFR part 503) and made
revisions to the NPDES regulations to include the permitting of
facilities/operations that generate, treat, and/or use/dispose of
sewage sludge. The States of South Dakota and Utah currently are the
only States in Region 8 that have been authorized to administer the
biosolids (sludge) program. In 2007 EPA reissued general permits for
facilities or operations that generate, treat, and/or use/dispose of
sewage sludge by means of land application, landfill, and surface
disposal in the States of CO, MT, ND, and WY and in Indian country in
the States of CO, MT, ND, SD, WY and UT (except for the Goshute Indian
Reservation and the Navajo Indian Reservation). Those general permits
expired on October 19, 2012, but were administratively extended.
Proposed reissuance of the general permits was published in the Federal
Register on January 4, 2013 (78 FR 727). The public comment period
closed on February 19, 2013. Only one comment was received in response
to the public notice, a letter from the South Dakota Department of
Agriculture. That letter stated ``In response, we offer no comments
regarding the notice.'' Accordingly, the permits are being reissued
without any change from the public notice draft.
    The renewal permits are very similar to the previous permits. The
administrative burden for most of the regulated sources is expected to
be less under the general permits than with individual permits, and it
will be much quicker to obtain permit coverage with general permits
than with individual permits. Facilities or operations that incinerate
sewage sludge are not eligible for coverage under these general permits
and must apply for an individual permit. The deadlines for applying for
coverage under the general permits are given in the permits and the
Fact Sheet. Facilities/operations that had coverage under the previous
general permit and have submitted a timely request for coverage under
this renewal permit are covered automatically under the permits unless
the permit issuing authority requires the submittal of a new notice of
intent (NOI).

Other Legal Requirements

    Section 401(a)(1) Certification: Since these permits do not involve
discharges to waters of the United States, certification under Sec.
401(a)(1) of the Clean Water Act is not necessary for the issuance of
these permits and certification will not be requested.
    Economic Impact (Executive Order 12866): The EPA has determined
that the issuance of this general permit is not a ``significant
regulatory action'' under the terms of Executive Order 12866 (58 FR
51735 (October 4, 1993)) and is therefore not subject to formal OMB
review prior to proposal.
    Paperwork Reduction Act: The EPA has reviewed the requirements
imposed on regulated facilities in these proposed general permits under
the Paperwork Reduction Act of 1980, 44 U.S.C.-501 et seq. The
information collection requirements of these permits have already been
approved by the Office of Management and Budget in submissions made for
the NPDES permit program under the provisions of the Clean Water Act.
    Regulatory Flexibility Act (RFA), 5 U.S.C 601 et seq., as amended
by the Small Business regulatory Enforcement Fairness Act (SBREFA): The
RFA requires that the EPA prepare a regulatory flexibility analysis for
rules subject to the requirements of 5 U.S.C. 553(b) that have a
significant impact on a substantial number of small entities. The
permit proposed today, however, is not a ``rule'' subject to the
requirements of 5 U.S.C. 553(b) and is therefore not subject to the
RFA.
    Unfunded Mandates Reform Act: Section 201 of the Unfunded Mandates
Reform Act (UMRA), Public Law 104-4, generally requires Federal
agencies to assess the effects of their ``regulatory actions'' defined
to be the same as ``rules'' subject to the RFA) on tribal, state, local
governments and the private sector. The permit proposed today, however,
is not a ``rule'' subject to the RFA and is therefore not subject to
the requirements of the UMRA.

    Authority: Clean Water Act, 33 U.S.C. 1251 et seq.

    Dated: April 2, 2013.
Derrith R. Watchman-Moore,
Assistant Regional Administrator, Office of Partnerships and Regulatory
Assistance.
[FR Doc. 2013-10050 Filed 4-26-13; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 77, Number 206 (Wednesday, October 24, 2012)]
[Notices]
[Pages 64982-64983]
[FR Doc No: 2012-26140]

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

DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Notice of Commission Staff Attendance

    The Federal Energy Regulatory Commission hereby gives notice that
members of the Commission's staff may attend the following meetings
related to the transmission planning activities of the PJM
Interconnection, L.L.C. (PJM):

Midwest ISO-PJM Interregional Coordination Workshop

October 24, 2012, 8:00 a.m.-3:00 p.m., Local Time.

PJM Regional Transmission Planning Task Force/PJM Interconnection
Process Senior Task Force

November 16, 2012, 9:30 a.m.-3:00 p.m., Local Time;
December 17, 2012, 9:30 a.m.-3:00 p.m., Local Time.

    The above-referenced meetings will be held over conference call or
at:

The PJM Conference & Training Center, Norristown, PA.

     or

Midwest ISO, Carmel, IN.

    The above-referenced meetings are open to stakeholders.
    Further information may be found at www.pjm.com.
    The discussions at the meetings described above may address matters
at issue in the following proceedings:

Docket No. EL05-121, PJM Interconnection, L.L.C.
Docket No. EL07-56, Allegheny Electric Cooperative, Inc., et a., v PJM
Interconnection, L.L.C.
Docket No. EL07-58, Organization of PJM States, Inc., et al., v. PJM
Interconnection, L.L.C.
Docket No. EL08-14, Black Oak Energy LLC, et al., v. FERC
Docket No. EL10-52, Central Transmission, LLC v. PJM Interconnection,
L.L.C.
Docket No. EL12-45, PJM Interconnection, L.L.C.
Docket No. EL12-50, First Energy Solutions Corporation et al v. PJM
Interconnection, L.L.C.
Docket No. EL12-54, Viridity Energy, Inc. v. PJM Interconnection,
L.L.C.
Docket No. EL12-69, Primary Power LLC v. PJM Interconnection, L.L.C.
Docket No. EL12-8, DC Energy, L.L.C. and DC Energy Mid-Atlantic, L.L.C.
vs. PJM Interconnection, L.L.C.
Docket No. AD12-1 and ER11-4081, Midwest Independent Transmission
System Operator, Inc.
Docket No. AD12-16, Capacity Deliverability Across the Midwest
Independent Transmission System Operator, Inc./PJM Interconnection,
L.L.C. Seam
Docket No. EL13-10, North American Natural Resources, Inc. v. PJM
Interconnection, L.L.C. et. al.
Docket No. ER08-194-000, et al., Duquesne Light Company et al.
Docket No. ER09-1063, PJM Interconnection, L.L.C.
Docket No. ER09-1148, PPL Electric Utilities Corporation
Docket No. ER09-1256, Potomac-Appalachian Transmission Highline, L.L.C.
Docket Nos. ER09-1589 and EL10-6, FirstEnergy Service Company

Docket No. ER10-253 and EL10-14, Primary Power, L.L.C.
Docket No. ER10-549, PJM Interconnection, L.L.C.
Docket No. ER11-1844, Midwest Independent Transmission System Operator,
Inc.
Docket Nos. ER11-2814 and ER11-2815, PJM Interconnection, L.L.C. and
American Transmission Systems, Inc.
Docket No. ER11-2875 and EL11-20, PJM Interconnection, L.L.C.
Docket No. ER11-4106, PJM Interconnection, L.L.C.
Docket No. ER11-4628, PJM Interconnection, L.L.C.
Docket No. ER12-1173, PJM Interconnection, L.L.C., et. al.
Docket No. ER12-1178, PJM Interconnection, L.L.C.
Docket No. ER12-92, PJM Interconnection, L.L.C., et. al
Docket No. ER12-1204, PJM Interconnection, L.L.C.
Docket No. ER12-1761, PJM Interconnection, L.L.C.
Docket No. ER12-2080, GenOn Power Midwest, LP
Docket No. ER12-2260, New York Independent System Operator, Inc
Docket No. ER12-2262, PJM Interconnection, L.L.C.
Docket No. ER12-2274, Public Service Electric and Gas Company
Docket No. ER12-2391, PJM Interconnection, L.L.C.
Docket No. ER12-2399, PJM Interconnection, L.L.C.
Docket No. ER12-2417, PJM Interconnection, L.L.C.
Docket No. ER12-2440, PJM Interconnection, L.L.C.
Docket No. ER12-2442, PJM Interconnection, L.L.C.
Docket No. ER12-2469, PJM Interconnection, L.L.C.
Docket No. ER12-2486, PJM Interconnection, L.L.C.
Docket No. ER12-2518, PJM Interconnection, L.L.C.
Docket No. ER12-2527, PJM Interconnection, L.L.C.
Docket No. ER12-2550, PJM Interconnection, L.L.C.
Docket No. ER12-2574, PJM Interconnection, L.L.C.
Docket No. ER12-2594, PJM Interconnection, L.L.C.
Docket No. ER12-2599, PJM Interconnection, L.L.C.
Docket No. ER12-2604, PJM Interconnection, L.L.C.
Docket No. ER12-2606, PJM Interconnection, L.L.C.
Docket No. ER12-2610, PJM Interconnection, L.L.C.
Docket No. ER12-2616, PJM Interconnection, L.L.C.
Docket No. ER12-2624, PJM Interconnection, L.L.C.
Docket No. ER12-2661, PJM Interconnection, L.L.C.
Docket No. ER12-2663, PJM Interconnection, L.L.C.
Docket No. ER12-2664, PJM Interconnection, L.L.C.
Docket No. ER12-2671, PJM Interconnection, L.L.C.
Docket No. ER12-2688, PJM Interconnection, L.L.C.
Docket No. ER12-2815, PJM Interconnection, L.L.C.
Docket No. ER12-469, PJM Interconnection, L.L.C.
Docket No. ER12-513, PJM Interconnection, L.L.C.
Docket No. ER12-718, New York Independent System Operator, Inc.
Docket No. ER12-91, PJM Interconnection, L.L.C.
Docket No. ER12-92, PJM Interconnection, L.L.C.
Docket No. ER12-469, PJM Interconnection, L.L.C.,
Docket Nos. ER11-2183 and EL11-32, American Electric Power Service
Corporation
Docket No. ER12-2085, PJM Interconnection, L.L.C.
Docket No. ER12-2707, PJM Interconnection, L.L.C.
Docket No. ER12-2708, PJM Interconnection, L.L.C.
Docket No. ER13-27, PJM Interconnection, L.L.C.
Docket No. ER13-51, PJM Interconnection, L.L.C.
Docket No. ER13-52, PJM Interconnection, L.L.C.
Docket No. ER13-53, PJM Interconnection, L.L.C.
Docket No. ER13-66, PJM Interconnection, L.L.C.
Docket No. ER13-74, PJM Interconnection, L.L.C.
Docket No. ER13-90, Public Service Electric and Gas Company and PJM
Interconnection, L.L.C.
Docket No. ER13-116, PJM Interconnection, L.L.C.
Docket No. ER13-124, PJM Interconnection, L.L.C.
Docket No. ER13-126, PJM Interconnection, L.L.C.

    For more information, contact Jonathan Fernandez, Office of Energy
Market Regulation, Federal Energy Regulatory Commission at (202) 502-
6604 or<EMAIL_ADDRESS>
    Dated: October 17, 2012.
Kimberly D. Bose,
Secretary.
[FR Doc. 2012-26140 Filed 10-23-12; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Notices]
[Pages 25384-25385]
[FR Doc No: 2011-10859]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-64365; File No. SR-NASDAQ-2011-058]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC;
Notice of Filing and Immediate Effectiveness of Proposed Rule Change
Regarding Limitation of Liability

April 28, 2011.
    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 April 28, 2011, The NASDAQ Stock Market LLC (``NASDAQ''), filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I and II below, which Items
have been substantially prepared by NASDAQ. The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
---------------------------------------------------------------------------

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

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    NASDAQ is filing with the Securities and Exchange Commission
(``SEC'' or ``Commission'') a proposal for The NASDAQ Stock Market LLC
(``NASDAQ'' or ``Exchange'') to amend Rule 4626 (Limitation of
Liability) regarding expansion of the Exchange's limitation of
liability under specified circumstances.
    The Exchange requests that the Commission waive the 30-day
operative delay period contained in Exchange Act Rule 19b-
4(f)(6)(iii).\3\
---------------------------------------------------------------------------

    \3\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The text of the proposed rule change is available from NASDAQ's Web
site at http://nasdaq.cchwallstreet.com/Filings/, at NASDAQ's principal
office, 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, NASDAQ 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. NASDAQ 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 purpose of this proposed rule change is to amend Rule 4626
regarding expansion of the Exchange's limitation of liability rule
under specified circumstances.
    Rule 4626 currently states that except as provided for in
subsection (b) of the rule, Nasdaq and its affiliates shall not be
liable for any losses, damages, or other claims arising out of the
Nasdaq Market Center or its use. Subsection (b)(1) states that for the
aggregate of all claims made by all market participants related to the
use of the Nasdaq Market Center during a single calendar month,
Nasdaq's payments under Rule 4676 [sic] shall not exceed the larger of
$500,000, or the amount of the recovery obtained by Nasdaq under any
applicable insurance policy.\4\
---------------------------------------------------------------------------

    \4\ Rule 4676 [sic] was amended in 2009 to the current version.
See Securities Exchange Act Release No. 60794 (October 6, 2009), 74
FR 52522 (October 13, 2009) (SR-NASDAQ-2009-084) (notice of filing
and immediate effectiveness). The Commission notes that the
references to ``Rule 4676'' herein are typographical errors and the
correct rule number is 4626.
---------------------------------------------------------------------------

    The Exchange now proposes to add a new section to expand the
maximum amount of payments that the Exchange may make during a calendar
month pursuant to Rule 4626 in enumerated circumstances added in new
subsection (b)(2).
    First, the (b)(2) claims have to be related to a systems
malfunction or error of the Nasdaq Market Center concerning one the
following functions that are system enforced by the Nasdaq trading
system on behalf of the claimant: locked/crossed markets, trade through
protection, market maker quoting, order protection, or firm quote
compliance.\5\ And second, Nasdaq has to determine in its sole
discretion that such systems malfunction or error was caused
exclusively by Nasdaq's trading system and that no outside factors
contributed to the malfunction or error. That is, the trading system
issue would have to be caused exclusively by the Exchange to trigger
subsection (b)(2).\6\
---------------------------------------------------------------------------

    \5\ Rule 610 and 611 of Regulation NMS and Exchange Rule 4613.
Notwithstanding this provision, the Exchange notes that market
participants are not absolved of their compliance obligations under
the Exchange rules or the Act.
    \6\ Claims under subsection (b)(2) would remain subject to the
other limitations for recovery contained in Rule 4672 [sic],
including the limitations on covered losses contained in the
introductory language of subsection (b).
---------------------------------------------------------------------------

    For example, if the needed market data provided to the Exchange to
properly perform a locked/crossed markets analysis was incorrect and
therefore caused the Exchange's relevant trading system functionality
to quote or execute improperly, the requirements of subsection (b)(2)
would not be met because any resulting issue was not caused exclusively
by the Exchange. A similar result would occur should any other third
party or non-Exchange specific input to the Exchange's trading systems
likewise cause incorrect processing by the Exchange.
    Nasdaq's payments under subsection (b)(2) for all claims made by
all market participants during a single calendar month, shall not
exceed the larger of $3,000,000, or the amount of the recovery obtained
by Nasdaq under any applicable insurance policy, subject to the overall
cap on payments under Rule 4626 discussed below.
    Finally, the Exchange proposes to add new subsection (b)(3) stating
that Nasdaq's total payment during a single calendar month pursuant to
Rule 4626 (including both subsections (b)(1) and (b)(2)) shall not
exceed $3,000,000.\7\
---------------------------------------------------------------------------

    \7\ The Exchange proposes to add the word ``payment'' in
subsection (b)(1) for consistency with proposed new subsections
(b)(2) and (b)(3).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that its proposal is consistent with Section
6(b) of the Act \8\ in general, and furthers the objectives of Section
6(b)(5) of the Act \9\ in particular, in that it is designed to promote
just and equitable principles of trade, 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.
---------------------------------------------------------------------------

    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes that its proposal to expand Rule 4626
(Limitation of Liability) under specified circumstances will promote
fairness in the market place in situations where the firm's claim
results from a problem in a compliance function performed by the
Exchange's trading system that is solely the fault of the Exchange.\10\
---------------------------------------------------------------------------

    \10\ This would include events like the one on Monday, April 25,
2011 involving a quoting problem with the Exchange's automated
quotation refresh system (AQR). Because the claim for redress for
trades impacted by this AQR problem does not arise until settlement,
claims timely filed from this event will be eligible for review
pursuant to proposed Rule 4626(b)(2).
---------------------------------------------------------------------------

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

    NASDAQ does not believe that the proposed rule change will result
in any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6)(iii) thereunder.\12\ The Exchange has asked the Commission to
waive the 30-day operative delay so that the proposal may become
operative immediately upon filing. The Commission believes that waiving
the 30-day operative delay is consistent with the protection of
investors and the public interest because such waiver will allow the
Exchange to immediately expand Rule 4626 to help promote fairness in
the marketplace in specified circumstances where claims result from
systems malfunctions or errors that are solely the fault of the
Exchange.\13\ Accordingly, the Commission waives the 30-day operative
delay requirement and designates the proposed rule change as operative
upon filing with the Commission.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-
4(f)(6)(iii) requires that a self-regulatory organization submit to
the Commission written notice of its intent to file the proposed
rule change, along with a brief description and text of the proposed
rule change, at least five business days prior to the filing of the
proposed rule change, or such shorter time as designated by the
Commission. The Exchange has requested that the Commission waive the
five business day notice requirement. The Commission waives the five
day notice requirement.
    \13\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    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.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-NASDAQ-2011-058 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NASDAQ-2011-058. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for 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 a.m. and 3 p.m. Copies of such filing also will be
available for inspection and copying at the principal office of the
Exchange. 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
publicly available. All submissions should refer to File Number SR-
NASDAQ-2011-058 and should be submitted on or before May 25, 2011.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\14\
---------------------------------------------------------------------------

    \14\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-10859 Filed 5-3-11; 8:45 am]
BILLING CODE 8011-01-P