[Federal Register Volume 82, Number 117 (Tuesday, June 20, 2017)]
[Notices]
[Pages 28207-28215]
[FR Doc No: 2017-12891]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80941; File No. SR-OCC-2017-013]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Concerning the Adoption of a
New Stock Options and Futures Settlement Agreement Between The Options
Clearing Corporation and the National Securities Clearing Corporation

June 15, 2017.
    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 June 1, 2017, The Options Clearing Corporation (``OCC'') filed with
the Securities and Exchange Commission (``Commission'') the proposed
rule change as described in Items I, II and III below, which Items have
been prepared by OCC. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change by OCC is filed in connection with
proposed changes relating to a new Stock Options and Futures Settlement
Agreement (``New Accord'') between OCC and the National Securities
Clearing Corporation (``NSCC,'' collectively NSCC and OCC may be
referred to herein as the ``clearing agencies'') and amendments to
OCC's By-Laws and Rules to accommodate the proposed provisions of the
New Accord.
    The proposed changes to OCC's By-Laws and Rules and the proposed
New Accord were attached as Exhibits 5A-5C of the filing,
respectively.\3\ The proposed changes are described in detail in Item 3
below. All terms with initial capitalization not defined herein have
the same meaning as set forth in OCC's By-Laws and Rules.\4\
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    \3\ OCC has filed an advance notice with the Commission in
connection with the New Accord. See SR-OCC-2017-804. NSCC also has
filed proposed rule change and advance notice filings with the
Commission in connection with the New Accord. See NSCC filings SR-
NSCC-2017-007 and SR-NSCC-2017-803, respectively.
    \4\ OCC's By-Laws and Rules can be found on OCC's public Web
site: http://optionsclearing.com/about/publications/bylaws.jsp.
Other terms not defined herein or in the OCC By-Laws and Rules can
be found in the Rules & Procedures of NSCC (``NSCC Rules''),
available at http://www.dtcc.com/~/media/Files/Downloads/legal/
rules/nscc_rules.pdf, as the context implies.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

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

1. Purpose
Background
    OCC issues and clears U.S.-listed options and futures on a number
of underlying financial assets including common stocks, currencies and
stock indices. OCC's Rules, however, provide that delivery of, and
payment for, securities underlying certain physically settled stock
options and single stock futures cleared by OCC are effected through
the facilities of a correspondent clearing corporation (i.e., NSCC) and
are not settled through the facilities OCC. OCC and NSCC are parties to
a Third Amended and Restated Options Exercise Settlement Agreement,
dated February 16, 1995, as amended (``Existing Accord''),\5\ which
governs the delivery and receipt of stock in the settlement of put and
call options issued by OCC (``Stock Options'') that are eligible for
settlement through NSCC's Continuous Net Settlement (``CNS'')
Accounting Operation and are designated to settle on the third business
day following the date the related exercise or assignment was accepted
by NSCC (``Options E&A''). All OCC Clearing Members that intend to
engage in Stock Options transactions are required to also be Members of
NSCC or to have appointed or nominated an NSCC Member to act on its
behalf.\6\
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    \5\ The Existing Accord and the proposed changes thereunder were
previously approved by the Commission. See Securities Exchange Act
Release No. 37731 (September 26, 1996), 61 FR 51731 (October 3,
1996) (SR-OCC-96-04 and SR-NSCC-96-11) (Order Approving Proposed
Rule Change Related to an Amended and Restated Options Exercise
Settlement Agreement Between the Options Clearing Corporation and
the National Securities Clearing Corporation); Securities Exchange
Act Release No. 43837 (January 12, 2001), 66 FR 6726 (January 22,
2001) (SR-OCC-00-12) (Order Granting Accelerated Approval of a
Proposed Rule Change Relating to the Creation of a Program to
Relieve Strains on Clearing Members' Liquidity in Connection With
Exercise Settlements); and Securities Exchange Act Release No. 58988
(November 20, 2008), 73 FR 72098 (November 26, 2008) (SR-OCC-2008-18
and SR-NSCC-2008-09) (Notice of Filing and Order Granting
Accelerated Approval of Proposed Rule Changes Relating to Amendment
No. 2 to the Third Amended and Restated Options Exercise Settlement
Agreement).
    \6\ A firm that is both an OCC Clearing Member and an NSCC
Member, or is an OCC Clearing Member that has designated an NSCC
Member to act on its behalf is referred to herein as a ``Common
Member.''
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    OCC proposes to adopt a New Accord with NSCC, which would provide
for the settlement of certain Stock Options and delivery obligations
arising from certain matured physically-settled stock futures contracts
cleared by OCC (``Stock Futures''). Specifically, the New Accord would,
among other things: (1) Expand the category of securities that are
eligible for settlement and guaranty under the agreement to certain
securities (including stocks, exchange-traded funds and exchange-traded
notes) that (i) are required to be delivered in the exercise and
assignment of Stock Options and are eligible to be settled through
NSCC's Balance Order Accounting Operation (in addition to its CNS
Accounting Operation) or (ii) are delivery obligations arising from
Stock Futures that have reached maturity and are

eligible to be settled through NSCC's CNS Accounting Operation or
Balance Order Accounting Operation; (2) modify the time of the transfer
of responsibilities from OCC to NSCC and, specifically, when OCC's
guarantee obligations under OCC's By-Laws and Rules with respect to
such transactions (``OCC's Guaranty'') end and NSCC's obligations under
Addendum K of the NSCC Rules with respect to such transactions
(``NSCC's Guaranty'') begin (such transfer being the ``Guaranty
Substitution''); and (3) put additional arrangements into place
concerning the procedures, information sharing, and overall governance
processes under the agreement. Furthermore, OCC proposes to make
certain clarifying and conforming changes to the OCC By-Laws and Rules
as necessary to implement the New Accord.
    The primary purpose of the proposed changes is to (1) provide
consistent treatment across all expiries for products with ``regular
way'' \7\ settlement cycle specifications; (2) reduce the operational
complexities of the Existing Accord by eliminating the cross-guaranty
between OCC and NSCC and the bifurcated risk management of exercised
and assigned transactions between the two clearing agencies by
delineating a single point in time at which OCC's Guaranty ceases and
NSCC's Guaranty begins; (3) further solidify the roles and
responsibilities of OCC and NSCC in the event of a default of a Common
Member at either or both clearing agencies; and (4) improve procedures,
information sharing, and overall governance under the agreement.
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    \7\ Under the New Accord, ``regular way settlement'' shall have
a meaning agreed to by the clearing agencies. Generally, regular way
settlement is understood to be the financial services industry's
standard settlement cycle. Currently, regular way settlement of
Stock Options or Stock Futures transactions are those transactions
designated to settle on the third business day following the date
the related exercise, assignment or delivery obligation was accepted
by NSCC. NSCC has proposed to change the NSCC Rules with respect to
the meaning of regular way settlement in order to be consistent with
the anticipated industry-wide move to a shorter standard settlement
cycle of two business days after trade date. See Securities Exchange
Act Release No. 79734 (January 4, 2017), 82 FR 3030 (January 10,
2017) (SR-NSCC-2016-007). See also Securities Exchange Act Release
No. 78962 (September 28, 2016), 81 FR 69240 (October 5, 2016) (S7-
22-16) (Amendment to Securities Transaction Settlement Cycle).
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    The New Accord would become effective, and wholly replace the
Existing Accord, at a date specified in a service level agreement to be
entered into between NSCC and OCC.\8\
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    \8\ Such effective date would be a date following approval of
all required regulatory submissions to be filed by OCC and NSCC with
the appropriate regulatory authorities, including this proposed rule
change. See supra note 1.
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The Existing Accord
Key Terms of the Existing Accord
    Under the Existing Accord, the settlement of Options E&A generally
proceeds according to the following sequence of events. NSCC maintains
and delivers to OCC a list (``CNS Eligibility Master File'') that
enumerates all CNS Securities, which are defined in NSCC's Rule 1 and
generally include securities that have been designated by NSCC as
eligible for processing through NSCC's CNS Accounting Operation and
eligible for book entry delivery at NSCC's affiliate, The Depository
Trust Company (for purposes of this proposed rule change, such
securities are referred to as ``CNS Eligible Securities'').\9\ OCC, in
turn, uses this file to make a final determination of which securities
NSCC would not accept and therefore would need to be settled on a
broker-to-broker basis. OCC then sends to NSCC a transactions file,\10\
listing the specific securities that are to be delivered and received
in settlement of an Options E&A that have not previously been reported
to NSCC and for which settlement is to be made through NSCC (``OCC
Transactions File'').\11\ With respect to each Options E&A, the OCC
Transactions File includes the CUSIP number of the security to be
delivered, the identities of the delivering and receiving Common
Members, the quantity to be delivered, the total value of the quantity
to be delivered based on the exercise price of the option for which
such security is the underlying security, and the exercise settlement
date. After receiving the OCC Transactions File, NSCC then has until
11:00 a.m. Central Time on the following business day to reject any
transaction listed in the OCC Transactions File. NSCC can reject a
transaction if the security to be delivered has not been listed as a
CNS Eligible Security in the CNS Eligible Master File or if information
provided in the OCC Transactions File is incomplete. Otherwise, if NSCC
does not so notify OCC of its rejection of an Options E&A by the time
required under the Existing Accord, NSCC will become unconditionally
obligated to effect settlement of the Options E&A.
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    \9\ See supra note 2.
    \10\ Delivery of the OCC Transactions File with respect to an
Options E&A typically happens on the date of the option's exercise
or expiration, though this is not expressly stated in the Existing
Accord. In theory, however, an Options E&A could, due to an error or
delay, be reported later than the date of the option's exercise or
expiration.
    \11\ This process would be substantially the same under the New
Accord with the exception that the CNS Eligibility Master File and
OCC Transactions File would be renamed and would be expanded in
scope to include additional securities that would be eligible for
guaranty and settlement under the New Accord, as discussed in
further detail below.
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    Under the Existing Accord, even after NSCC's trade guarantee has
come into effect,\12\ OCC is not released from its guarantee with
respect to the Options E&A until certain deadlines \13\ have passed on
the first business day following the scheduled settlement date without
NSCC notifying OCC that the relevant Common Member has failed to meet
an obligation to NSCC or NSCC has ceased to act for such Common Member
pursuant to the NSCC Rules.\14\ As a result, there is a period of time
when NSCC's trade guarantee overlaps with OCC's guarantee and where
both clearing agencies are holding margin against the same Options E&A
position.
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    \12\ Pursuant to Addendum K of the NSCC Rules, NSCC guarantees
the completion of CNS transactions and balance order transactions
that have reached the point at which, for bi-lateral submissions by
Members, such trades have been validated and compared by NSCC, and
for locked-in submission, such trades have been validated by NSCC,
as described in the NSCC Rules. Transactions that are covered by the
Existing Accord, and that would be covered by the New Accord, are
expressly excluded from the timeframes described in Addendum K. See
supra note 2.
    \13\ The deadline is 6:00 a.m. Central Time for NSCC notifying
OCC of a Common Member failure and, if NSCC does not immediately
cease to act for such defaulting Common Member, 4:00 p.m. Central
Time for notifying OCC that it has ceased to act.
    \14\ See NSCC Rule 46 (Rule 46 (Restrictions on Access to
Services). See supra note 2.
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    In the event that NSCC or OCC ceases to act on behalf of or
suspends a Common Member, that Common Member becomes a ``defaulting
member.'' Once a Common Member becomes a defaulting member, the
Existing Accord provides that NSCC will make a payment to OCC equal to
the lesser of OCC's loss or the positive mark-to-market amount relating
to the defaulting member's Options E&A and that OCC will make a payment
to NSCC equal to the lesser of NSCC's loss or the negative mark-to-
market amount relating to the defaulting member's Options E&A to
compensate for potential losses incurred in connection with the
default. A clearing agency must request the transfer of any such
payments by the close of business on the tenth business day following
the day of default and, after a request is made, the other clearing
agency is required to make payment within five business days of the
request.
The New Accord
Overview
    As noted above, NSCC proposes to adopt a New Accord with OCC, which
would provide for the settlement of certain Stock Options and Stock
Futures

transactions. The New Accord is primarily designed to, among other
things, expand the category of securities that are eligible for
settlement and guaranty under the agreement; simplify the time of the
transfer of responsibilities from OCC to NSCC (specifically, the
transfer of guarantee obligations); and put additional arrangements
into place concerning the procedures, information sharing, and overall
governance processes under the agreement. The material provisions of
the New Accord are described in detail below.
Key Elements of the New Accord
Expanded Scope of Eligible Securities
    Pursuant to the proposed New Accord, on each day that both OCC and
NSCC are open for accepting trades for clearing (``Activity Date''),
NSCC would deliver to OCC an ``Eligibility Master File,'' which would
identify the securities, including stocks, exchange-traded funds and
exchange-traded notes, that are (1) eligible to settle through NSCC's
CNS Accounting Operation (as is currently the case under the Existing
Accord) or NSCC's Balance Order Accounting Operation (which is a
feature of the New Accord) and (2) to be delivered in settlement of (i)
exercises and assignments of Stock Options (as is currently the case
under the Existing Accord) or (ii) delivery obligations arising from
maturing physically settled Stock Futures (which is a feature of the
New Accord) (all such securities collectively being ``Eligible
Securities''). OCC, in turn, would deliver to NSCC its file of E&A/
Delivery Transactions \15\ that list the Eligible Securities to be
delivered, or received, and for which settlement is proposed to be made
through NSCC on that Activity Date. Guaranty Substitution (discussed
further below) would not occur with respect to an E&A/Delivery
Transaction that is not submitted in the proper format or that involves
a security that is not identified as an Eligible Security on the then-
current Eligibility Master File. This process is similar to the current
process under the Existing Accord with the exception of the expanded
scope of Eligible Securities (and additional fields necessary to
accommodate such securities) that would be listed on the Eligibility
Master File and the E&A/Delivery Transactions file.
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    \15\ ``E&A/Delivery Transactions'' are transactions involving
the settlement of Stock Options and Stock Futures under the New
Accord. The delivery of E&A/Delivery Transactions to NSCC would
replace the delivery of the ``OCC Transactions File'' from the
Existing Accord. The actual information delivered by OCC to NSCC
would be the same as is currently provided on the OCC Transactions
File, but certain additional terms would be included to accommodate
the inclusion of Stock Futures, along with information regarding the
date that the instruction to NSCC was originally created and the
E&A/Delivery Transaction's designated settlement date.
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    Like the Existing Accord, the proposed New Accord would continue to
facilitate the processes by which Common Members deliver and receive
stock in the settlement of Stock Options that are eligible to settle
through NSCC's CNS Accounting Operation and are designated to settle
regular way. The New Accord would also expand the category of
securities eligible for settlement under the agreement. In particular,
the New Accord would facilitate the processes by which Common Members
deliver and receive stock in settlement of Stock Futures that are
eligible to settle through NSCC's CNS Accounting Operation and are
designated to settle regular way. It would also provide for the
settlement of both Stock Options and Stock Futures that are eligible to
settle through NSCC's Balance Order Accounting Operation on a regular
way basis. The primary purpose of expanding the category of securities
that are eligible for settlement and guaranty under the agreement is to
provide consistent treatment across all expiries for products with
regular way settlement cycle specifications and simplify the settlement
process for these additional securities transactions.
    The New Accord would not apply to Stock Options or Stock Futures
that are designated to settle on a shorter timeframe than the regular
way settlement timeframe. These Stock Options would continue to be
processed and settled as they would be today, outside of the New
Accord. The New Accord also would not apply to any Stock Options or
Stock Futures that are neither CNS Securities nor Balance Order
Securities.\16\ Transactions in these securities are, and would
continue to be, processed on a trade-for-trade basis away from NSCC's
facilities. Such transactions may utilize other NSCC services for which
they are eligible, but would not be subject to the New Accord.\17\
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    \16\ Balance Order Securities are defined in NSCC Rule 1, and
are generally securities, other than foreign securities, that are
eligible to be cleared at NSCC but are not eligible for processing
through the CNS Accounting Operation. See supra note 2.
    \17\ OCC will continue to guarantee settlement until settlement
actually occurs with respect to these Stock Options and Stock
Futures.
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Proposed Changes Related to Guaranty Substitution
    The New Accord would adopt a fundamentally different approach to
the delineation of the rights and responsibilities of OCC and NSCC with
respect to E&A/Delivery Transactions. The purpose of the proposed
changes related to the Guaranty Substitution, defined below, is to
reduce the operational complexities of the Existing Accord by
eliminating the cross-guaranty between OCC and NSCC and the bifurcated
risk management of exercised and assigned transactions between the two
clearing agencies and delineating a single point in time at which OCC's
Guaranty ceases and NSCC's Guaranty begins. Moreover, the proposed
changes would solidify the roles and responsibilities of OCC and NSCC
in the event of a default of a Common Member at either or both clearing
agencies.
    As described above, the Existing Accord provides that NSCC will
make a payment to OCC following the default of a Common Member in an
amount equal to the lesser of OCC's loss or the positive mark-to-market
amount relating to the Common Member's Options E&A, and provides that
OCC will make a payment to NSCC following the default of a Common
Member equal to the lesser of NSCC's loss or the negative mark-to-
market amount relating to the Common Member's Options E&A to compensate
for potential losses incurred in connection with the Common Member's
default. The proposed New Accord, in contrast, would focus on the
transfer of responsibilities from OCC to NSCC and, specifically, the
point at which OCC's Guaranty ends and NSCC's Guaranty begins (i.e.,
the Guaranty Substitution) with respect to E&A/Delivery Transactions.
By focusing on the timing of the Guaranty Substitution, rather than
payment from one clearing agency to the other, the New Accord would
simplify the agreement and the procedures for situations involving the
default of a Common Member. The New Accord additionally would minimize
``double-margining'' situations when a Common Member may simultaneously
owe margin to both NSCC and OCC with respect to the same E&A/Delivery
Transaction.
    After NSCC has received an E&A/Delivery Transaction, the Guaranty
Substitution would normally occur when NSCC has received all Required
Deposits to its Clearing Fund, calculated taking into account such E&A/
Delivery Transaction, of Common Members (``Guaranty Substitution
Time'').\18\ At the Guaranty Substitution Time, NSCC's Guaranty takes
effect, and OCC does not

retain any settlement obligations with respect to such E&A/Delivery
Transactions. The Guaranty Substitution would not occur, however, with
respect to any E&A/Delivery Transaction if NSCC has rejected such E&A/
Delivery Transaction due to an improper submission, as described above,
or if, during the time after NSCC's receipt of the E&A/Delivery
Transaction but prior to the Guaranty Substitution Time, a Common
Member involved in the E&A/Delivery Transaction has defaulted on its
obligations to NSCC by failing to meet its Clearing Fund obligations,
or NSCC has otherwise ceased to act for such Common Member pursuant to
the NSCC Rules (in either case, such Common Member becomes a
``Defaulting NSCC Member'').
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    \18\ Procedure XV of the NSCC Rules provides that all Clearing
Fund requirements and other deposits must be made within one hour of
demand, unless NSCC determines otherwise. See supra note 2.
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    NSCC would be required to promptly notify OCC if a Common Member
becomes a Defaulting NSCC Member, as described above. Upon receiving
such a notice, OCC would not submit to NSCC any further E&A/Delivery
Transactions involving the Defaulting NSCC Member for settlement,
unless authorized representatives of both OCC and NSCC otherwise
consent. OCC would, however, deliver to NSCC a list of all E&A/Delivery
Transactions that have already been submitted to NSCC and that involve
the Defaulting NSCC Member (``Defaulted NSCC Member Transactions'').
The Guaranty Substitution ordinarily would not occur with respect to
any Defaulted NSCC Member Transactions, unless both clearing agencies
agree otherwise. As such, NSCC would have no obligation to guaranty
such Defaulted NSCC Member Transactions, and OCC would continue to be
responsible for effecting the settlement of such Defaulted NSCC Member
Transactions pursuant to OCC's By-Laws and Rules. Once NSCC has
confirmed the list of Defaulted NSCC Member Transactions, Guaranty
Substitution would occur for all E&A/Delivery Transactions for that
Activity Date that are not included on such list. NSCC would be
required to promptly notify OCC upon the occurrence of the Guaranty
Substitution Time on each Activity Date.
    If OCC suspends a Common Member after NSCC has received the E&A/
Delivery Transactions but before the Guaranty Substitution has
occurred, and that Common Member has not become a Defaulting NSCC
Member, the Guaranty Substitution would proceed at the Guaranty
Substitution Time. In such a scenario, OCC would continue to be
responsible for guaranteeing the settlement of the E&A/Delivery
Transactions in question until the Guaranty Substitution Time, at which
time the responsibility would transfer to NSCC. If, however, the
suspended Common Member also becomes a Defaulting NSCC Member after
NSCC has received the E&A/Delivery Transactions but before the Guaranty
Substitution has occurred, Guaranty Substitution would not occur, and
OCC would continue to be responsible for effecting the settlement of
such Defaulted NSCC Member Transactions pursuant to OCC's By-Laws and
Rules (unless both clearing agencies agree otherwise).
    Finally, the New Accord also would provide for the consistent
treatment of all exercise and assignment activity under the agreement.
Under the Existing Accord, ``standard'' \19\ option contracts become
guaranteed by NSCC when the Common Member meets its morning Clearing
Fund Required Deposit at NSCC while ``non-standard'' exercise and
assignment activity becomes guaranteed by NSCC at midnight of the day
after trade date (T+1). Under the New Accord, all exercise and
assignment activity for Eligible Securities would be guaranteed by NSCC
as of the Guaranty Substitution Time, under the circumstances described
above, further simplifying the framework for the settlement of such
contracts.
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    \19\ Option contracts with ``standard'' expirations expire on
the third Friday of the specified expiration month, while ``non-
standard'' contracts expire on other days of the expiration month.
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Other Terms of the New Accord
    The New Accord also would include a number of other provisions
intended to either generally maintain certain terms of the Existing
Accord or improve the procedures, information sharing, and overall
governance process under the new agreement. Many of these terms are
additions to or improvements upon the terms of the Existing Accord.
    Under the proposed New Accord, OCC and NSCC would agree to address
the specifics regarding the time, form and manner of various required
notifications and actions in a separate service level agreement which
the parties would be able to revisit as their operational needs evolve.
The service level agreement would also specify an effective date for
the New Accord, which, as mentioned above, would occur on a date
following approval and effectiveness of all required regulatory
submissions to be filed by OCC and NSCC with the appropriate regulatory
authorities. Similar to the Existing Accord, the proposed New Accord
would remain in effect (a) until it is terminated by the mutual written
agreement of OCC and NSCC, (b) until it is unilaterally terminated by
either clearing agency upon one year's written notice (as opposed to
six months under the Existing Accord), or (c) until it is terminated by
either NSCC or OCC upon the bankruptcy or insolvency of the other,
provided that the election to terminate is communicated to the other
party within three business days by written notice.
    Under the proposed New Accord, NSCC would agree to notify OCC if
NSCC ceases to act for a Common Member pursuant to the NSCC Rules no
later than the earlier of NSCC's provision of notice of such action to
the governmental authorities or notice to other NSCC Members.
Furthermore, if an NSCC Member for which NSCC has not yet ceased to act
fails to satisfy its Clearing Fund obligations to NSCC, NSCC would be
required to notify OCC promptly after discovery of the failure.
Likewise, OCC would be required to notify NSCC of the suspension of a
Common Member no later than the earlier of OCC's provision of notice to
the governmental authorities or other OCC Clearing Members.
    Under the Existing Accord, NSCC and OCC agree to share certain
reports and information regarding settlement activity and obligations
under the agreement. The New Accord would enhance this information
sharing between the clearing agencies. Specifically, NSCC and OCC would
agree to share certain information, including general risk management
due diligence regarding Common Members, lists of Common Members, and
information regarding the amounts of Common Members' margin and
settlement obligations at OCC or Clearing Fund Required Deposits at
NSCC. NSCC and OCC would also be required to provide the other clearing
agency with any other information that the other reasonably requests in
connection with the performance of its obligations under the New
Accord. All such information would be required to be kept confidential,
using the same care and discretion that each clearing agency uses for
the safekeeping of its own members' confidential information. NSCC and
OCC would each be required to act in good faith to resolve and notify
the other of any errors, discrepancies or delays in the information it
provides.
    The New Accord also would include new terms to provide that, to the
extent one party is unable to perform any obligation as a result of the
failure of the other party to perform its responsibilities on a timely
basis, the time for the non-failing party's performance would be
extended, its

performance would be reduced to the extent of any such impairment, and
it would not be liable for any failure to perform its obligations.
Further, NSCC and OCC would agree that neither party would be liable to
the other party in connection with its performance of its obligations
under the proposed New Accord to the extent it has acted, or omitted or
ceased to act, with the permission or at the direction of a
governmental authority. Moreover, the proposed New Accord would provide
that in no case would either clearing agency be liable to the other for
punitive, incidental or consequential damages. The purpose of these new
provisions is to provide clear and specific terms regarding each
clearing agency's liability for non-performance under the agreement.
    The proposed New Accord would also contain the usual and customary
representations and warranties for an agreement of this type, including
representations as to the parties' good standing, corporate power and
authority and operational capability, that the agreement complies with
laws and all government documents and does not violate any agreements,
and that all of the required regulatory notifications and filings would
be obtained prior to the New Accord's effective date. It would also
include representations that the proposed New Accord constitutes a
legal, valid and binding obligation on each of OCC and NSCC and is
enforceable against each, subject to standard exceptions. Furthermore,
the proposed New Accord would contain a force majeure provision, under
which NSCC and OCC would agree to notify the other no later than two
hours upon learning that a force majeure event has occurred and both
parties would be required to cooperate in good faith to mitigate the
effects of any resulting inability to perform or delay in performing.
Proposed Amendments to OCC's By-Laws and Rules
    Given the key differences between the Existing Accord and the New
Accord, as described above, OCC proposes certain changes to its By-Laws
and Rules in order to accommodate the terms of the New Accord. The
primary purpose of the proposed changes is to: (1) Reflect the expanded
scope of the New Accord, (2) reflect changes related to the new
Guaranty Substitution mechanics of the New Accord; and (3) make other
changes necessary to conform to the terms of the New Accord or to
otherwise provide additional clarity around the settlement and
margining \20\ treatment of: (i) Eligible Securities under the New
Accord, (ii) non-regular way securities settling through the facilities
of NSCC but outside of the New Accord, and (iii) those securities
settling outside of the New Accord and away from NSCC on a broker-to-
broker basis. These proposed changes are discussed in greater detail
below.
---------------------------------------------------------------------------

    \20\ OCC notes that, while it is proposing changes to its Rules
concerning margin requirements (e.g., which transactions would be
included as part of OCC's margin calculation at a given point in
time), OCC is not proposing any changes to its margin model (with
the exception that OCC would no longer collect and hold margin for
positions after NSCCs Guaranty has taken effect under the New
Accord).
---------------------------------------------------------------------------

Changes Related to the Expanded Scope of the New Accord
    First, OCC proposes to amend and replace the defined term ``CNS-
eligible'' \21\ in order to reflect the expanded definition of Eligible
Securities under the New Accord. The term ``CNS-eligible'' currently
describes the securities underlying the physically-settled stock
options that are eligible under the Existing Accord to be settled
through NSCC's CNS Accounting Operation. Under the New Accord, however,
the term Eligible Securities is more broadly defined to include
securities (both Stock Options and Stock Futures) eligible for
settlement via NSCC's CNS Accounting Operation and NSCC's Balance Order
Accounting Operation. Accordingly, OCC proposes to use ``CCC,'' for
``correspondent clearing corporation'' \22\ to describe the Eligible
Securities. Thus, the term ``CCC-eligible'' would replace ``CNS-
eligible'' throughout OCC's By-Laws and Rules.
---------------------------------------------------------------------------

    \21\ See Article I, Section (C)(23) of OCC's By-Laws.
    \22\ Under Article I of OCC's By-Laws, the term ``correspondent
clearing corporation'' means the National Securities Clearing
Corporation or any successor thereto which, by agreement with the
Corporation, provides facilities for settlements in respect of
exercised option contracts or BOUNDs or in respect of delivery
obligations arising from physically-settled stock futures.
---------------------------------------------------------------------------

    Next, because the New Accord would include the settlement of Stock
Futures, OCC proposes to make several changes to its rules regarding
Stock Futures to accommodate this expansion. More specifically, OCC
proposes a conforming amendment to Rule 901 Interpretation and Policy
(.02) to clarify that, under the New Accord, OCC will, subject to its
discretion, cause the settlement of all matured Stock Futures to be
made through the facilities of NSCC to the extent that the underlying
securities are CCC-eligible as the term is currently proposed.
    OCC also proposes clarifying and conforming revisions to newly
renumbered Rule 901(e) (currently Rule 901(d)) to specify that
settlements made through the facilities of the correspondent clearing
corporation are governed by Rule 901 and to clarify that, under the New
Accord, specifications made in any Delivery Advice may be revoked up
until the point at which NSCC's Guaranty has taken effect (the
``obligation time'' as discussed below) and not the opening of business
on the delivery date.
Changes Related to Guaranty Substitution
    OCC also proposes a series of amendments to its Rules to accurately
reflect the process under which the Guaranty Substitution occurs under
the New Accord. First, OCC proposes to amend Rule 901(c) so that the
term ``obligation time''--the time that the correspondent clearing
corporation becomes unconditionally obligated, in accordance with its
rules, to effect settlement in respect thereof or to close out the
securities contract arising therefrom--is synonymous with the Guaranty
Substitution Time under the New Accord and (i.e., (i) settlement
obligations are reported to and are not rejected by NSCC; (ii) NSCC has
not notified OCC that it has ceased to act for the relevant Clearing
Member; and (iii) the Clearing Fund requirements of the relevant
Clearing Member are received by NSCC). Under the New Accord, if a
default occurs prior to the Guaranty Substitution Time, the Guaranty
Substitution will not occur for any E&A/Delivery Transactions involving
the Defaulting NSCC Member, and OCC will continue to guarantee
settlement for those Defaulted NSCC Member Transactions.
    Next, OCC proposes to amend language in newly renumbered Rule
901(i) (currently Rule 901(h)) regarding the timing of the end of a
Clearing Member's obligations to OCC with respect to securities to be
settled through NSCC. Under the Existing Accord and OCC's existing
Rules, a Clearing Member's obligations to OCC end only once settlement
is completed. Under the New Accord, however, a Clearing Member's
obligations to OCC will end when OCC's obligations with respect to
guaranteeing settlement of the security would end (i.e., the Guaranty
Substitution Time or ``obligation time''). OCC therefore proposes to
amend newly renumbered Rule 901(i) to specify that a Clearing Member's
obligations to OCC will be deemed completed and performed once the
``obligation time'' has occurred.

    As discussed above, the New Accord eliminates the provisions of the
Existing Accord whereby OCC and NSCC guaranteed each other the
performance of Common Members and made certain payments to the other
upon the default of a Common Member. As such, OCC proposes to delete
discussions of such guarantees and payments from newly renumbered Rule
901(i) and Rule 1107.
    OCC also proposes amendments to Rules 910 and 911, which set forth
procedures for handling failures to make or take delivery of securities
in settlement of exercised or assigned Stock Options and matured
physically-settled Stock Futures, to add language to both rules to
clarify that the failure procedures set forth therein would not apply
with respect to any delivery to be made through NSCC pursuant to Rule
901. Under the New Accord, once the Guaranty Substitution Time with
respect to a specific E&A/Delivery Transaction occurs, OCC's Guaranty
ends and NSCC's Guaranty begins, leaving OCC with no involvement with
or responsibility for the settlement of the securities underlying that
transaction. Therefore, if there is a failure to make or take delivery
with respect to that transaction after Guaranty Substitution has
occurred, the NSCC Rules will govern that failure. With respect to
deliveries made on a broker-to-broker basis under OCC Rules 903 through
912 (including those that may utilize NSCC's Obligation Warehouse
services), and which are not governed by Rule 901, Guaranty
Substitution does not occur and OCC's failure procedures would apply.
Changes to OCC's Margin Rules
    Under the New Accord, OCC will no longer collect margin on a
transaction once it is no longer guaranteeing settlement for that
transaction. As such, OCC proposes to add language to Rule 601(f) to
clarify that OCC's margin calculations will not include delivery
obligations arising from any Stock Options or Stock Futures that are
eligible for settlement through NSCC and for which OCC has no further
settlement obligations because either (i) Guaranty Substitution has
occurred for E&A/Delivery Transactions under the New Accord (as
described in revised Rule 901(c)) or (ii) NSCC has otherwise accepted
transactions for non-regular way settlement under the NSCC Rules (as
describe in newly proposed Rule 901(d)).\23\ By not including these
transactions as part of OCC's margin calculation, OCC is hoping to
alleviate instances of ``double-margining'' for Common Members that may
otherwise simultaneously owe margin to NSCC and OCC with respect to the
same position.
---------------------------------------------------------------------------

    \23\ Related revisions to Rule 901(c) and newly proposed Rule
901(d) are discussed in more detail below.
---------------------------------------------------------------------------

    OCC also proposes to delete Rule 608A in its entirety. The New
Accord seeks to eliminate the situation under the Existing Accord where
Common Members are effectively ``double-margined'' or required to
simultaneously post margin with OCC and NSCC with respect to the same
position. As the New Accord eliminates this double-margining scenario,
Rule 608A, which provides procedures pursuant to which a Clearing
Member could use the securities deposited as margin with OCC as
collateral to secure a loan to pay its margin obligations to NSCC, is
now unnecessary.
Other Clarifying Changes Not Related to the New Accord
    OCC also proposes to amend its Rules to make clarifying changes
that are not directly required by the New Accord but would provide
additional clarity in its Rules in light of other changes being made to
accommodate the New Accord. Specifically, OCC proposes to revise Rule
901 Interpretation and Policy (.02) to provide that transactions that
involve the delivery of non-CCC eligible securities made on a broker-
to-broker basis (and away from NSCC) may nevertheless involve the use
of certain services of NSCC (e.g., NSCC's Obligation Warehouse). For
such transactions, because they are not covered by the New Accord and
NSCC at no point guarantees settlement, OCC Rule 901 would not apply
and delivery is governed by the broker-to-broker settlement procedures
set forth in OCC Rules 903 through 912, as is the case currently today.
Additionally, while OCC's existing Rules do not prohibit broker-to-
broker settlements from being facilitated through the services of a
correspondent clearing corporation, they do not explicitly contemplate
the possibility. OCC also proposes to make clarifying amendments to
Rule 904(b) and 910A(a) to more clearly distinguish between settlements
effected through NSCC's CNS Accounting Operation or Balance Order
Accounting Operations in accordance with OCC Rule 901 and deliveries
effected on a broker-to-broker basis utilizing services of NSCC under
OCC Rules 903 through 912 and to clearly state which OCC Rules apply in
each context.
    Further, OCC proposes to add a new paragraph (d) to Rule 901 to
clarify that OCC still intends, at its discretion, to effect settlement
of Stock Options and Stock Futures that are scheduled to be settled on
the first business day after exercise or maturity through NSCC pursuant
to Rule 901 and the relevant provisions of the NSCC Rules, even though
such contracts are outside the scope of the New Accord. These contracts
would continue to be settled as they are currently today.
    OCC also proposes clarifying and conforming changes to the
introductory language of Chapter IX of the Rules. Specifically, OCC
proposes conforming changes to the Rule to reflect the replacement of
the defined term ``CNS-eligible'' with ``CCC-eligible'' as described
above. The proposed changes would also clarify that OCC's broker-to-
broker settlement rules are contained in Rules 903-912, as Rule 902
concerns Delivery Advices, which also may be applicable to settlements
made through the correspondent clearing corporation pursuant to Rule
901. In addition, the proposed changes to the introductory language of
Chapter IX of the Rules would provide additional clarity around OCC's
existing authority to alter a previous designation of a settlement
method at any time prior to the designated delivery date by specifying
that this authority would apply to both settlements to be made through
the facilities of the correspondent clearing corporation pursuant to
Rule 901 or settlements to be made on a broker-to-broker basis pursuant
to Rules 903 through 912. Finally, OCC proposes a number of conforming
changes to Rules 901 and 912 to reflect the renumbering of various Rule
provisions due to the proposed amendments described above.
2. Statutory Basis
    Section 17A(b)(3)(F) of the Act requires, in part, that the rules
of a clearing agency be designed to promote the prompt and accurate
clearance and settlement of securities transactions, to assure the
safeguarding of securities and funds which are in the custody or
control of the clearing agency or for which it is responsible, and to
foster cooperation and coordination with persons engaged in the
clearance and settlement of securities transactions.\24\ OCC believes
that the proposed rule change is consistent with the requirements of
Section 17A(b)(3)(F) of the Act \25\ and the rules thereunder
applicable to OCC for the reasons set forth below.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78q-1(b)(3)(F).
    \25\ Id.
---------------------------------------------------------------------------

    In connection with the proposal to enhance the timing of the
Guaranty Substitution, the proposed New Accord, and related changes to
OCC's By-Laws

and Rules, would establish clear, transparent, and enforceable terms
for the settlement of OCC's cleared Stock Options and Stock Futures
through the facilities of NSCC. Specifically, the New Accord would
continue to provide a sound framework for the settlement of certain
Stock Options issued and cleared by OCC through the facilities of NSCC
and would extend this framework to a clearly defined scope of
additional Stock Options and Stock Futures transactions. In addition,
the proposed rule change would simplify the settlement process for
those Stock Options currently settled under the Existing Accord by
clarifying the timing and mechanisms by which OCC's guaranty ends and
NSCC's guaranty begins by focusing on the timing of the Guaranty
Substitution, as described in detail above. By clarifying and
simplifying the settlement process for these transactions, the New
Accord would operate to minimize the risk of interruptions to clearing
agency operations in the event of a Common Member default, and, in this
way, would promote the prompt and accurate clearance and settlement of
securities transactions.
    In addition, by eliminating any ambiguity regarding which clearing
agency is responsible for guaranteeing settlement at any given moment,
the proposal to enhance the timing of the Guaranty Substitution would
provide greater certainty that in the event of a Common Member default,
the default would be handled pursuant to the rules and procedures of
the clearing agency whose guarantee is then in effect and the system
for the clearance and settlement of Stock Options and Stock Futures
would continue with minimal interruption. This greater certainty would
strengthen OCC's and NSCC's ability to plan for and manage, and
therefore would mitigate, the risk presented by Common Member defaults.
It would also minimize the ``double margining'' issue that occurs under
the Existing Accord so that Common Members would no longer be required
to post margin at both clearing agencies to cover the same E&A/Delivery
Transactions, thereby reducing their potential exposures across
multiple clearing agencies for the same positions. In this way, the New
Accord is designed to safeguard the securities and funds which are in
the custody or control of OCC or for which it is responsible.
    The proposals to expand the category of securities eligible for
settlement and guarantee and to apply uniform treatment to standard and
non-standard options under the New Accord would provide consistent
treatment across all expiries for products with regular way settlement
cycle specifications, and would promote the prompt and accurate
clearance and settlement of these additional securities transactions.
    In connection with the proposal to enhance the information sharing
arrangement between NSCC and OCC, NSCC and OCC would agree to share
certain information, including general risk management due diligence
regarding Common Members, lists of Common Members, and information
regarding the amounts of Common Members' margin and settlement
obligations at OCC or Clearing Fund Required Deposits at NSCC. In this
way, the New Accord would foster cooperation and coordination between
OCC and NSCC in the settlement of securities transactions.
    Finally, other proposed changes to OCC's Rules would provide
additional clarity, transparency, and certainty around the settlement
and margining treatment of various securities transactions cleared by
OCC (including those settled under the New Accord, those otherwise
settled through the facilities of NSCC, and those that settle on a
broker-to-broker basis away from NSCC). By providing its Clearing
Members with this additional clarity, transparency, and certainty in
OCC's Rules, the proposed rule change would promote the prompt and
accurate clearance and settlement of securities transactions and the
safeguarding of securities and funds which are in the custody or
control of OCC or for which it is responsible.
    Therefore, for the reasons stated above, OCC believes that the
proposed rule change is consistent with the requirements of Section
17A(b)(3)(F) of the Act.\26\
---------------------------------------------------------------------------

    \26\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(1) under the Act requires that a covered clearing
agency establish, implement, maintain and enforce written policies and
procedures reasonably designed to provide for a well-founded, clear,
transparent, and enforceable legal basis for each aspect of its
activities in all relevant jurisdictions.\27\ The New Accord would
constitute a legal, valid and binding obligation on each of OCC and
NSCC, which is enforceable against each clearing agency. In connection
with the proposal to enhance the timing of the Guaranty Substitution,
the New Accord would establish clear, transparent, and enforceable
terms for the settlement of OCC's cleared Stock Options and Stock
Futures through the facilities of NSCC and would simplify the
settlement process for those Stock Options currently settled under the
Existing Accord. By clarifying the timing and mechanisms by which OCC's
Guaranty ends and NSCC's Guaranty begins by focusing on the timing of
the Guaranty Substitution, the new Accord, specifically the proposal to
enhance the timing of the Guaranty Substitution, would provide a clear,
transparent and enforceable legal basis for OCC's and NSCC's
obligations during the event of a Common Member default. As a result,
OCC believes that the proposal is consistent with the requirements of
Rule 17Ad-22(e)(1).\28\
---------------------------------------------------------------------------

    \27\ 17 CFR 240.17Ad-22(e)(1).
    \28\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(20) under the Act requires, in part, that a covered
clearing agency establish, implement, maintain and enforce written
policies and procedures reasonably designed to identify, monitor, and
manage risks related to any link the covered clearing agency
establishes with one or more other clearing agencies or financial
market utilities.\29\
---------------------------------------------------------------------------

    \29\ 17 CFR 240.17Ad-22(e)(20).
---------------------------------------------------------------------------

    OCC is proposing to adopt the New Accord in order to address the
risks it has identified related to its existing link with the NSCC
within the Existing Accord. Specifically, under the terms of the
Existing Accord, even after NSCC's guarantee has come into effect, OCC
is not released from its guarantee with respect to the Options E&A
until certain deadlines have passed on the first business day following
the scheduled settlement date without NSCC notifying OCC that the
relevant Common Member has failed to meet an obligation to NSCC and/or
NSCC has ceased to act for such firm. This current process results in a
period of time where NSCC's trade guarantee and OCC's guarantee both
apply to the same positions, and, therefore, both clearing agencies are
holding margin against the same Options E&A position. As a result, the
Existing Accord provides for a more complicated framework for the
settlement of certain Stock Options. These complications could give
rise to inconsistencies with regard to the development and application
of interdependent policies and procedures between OCC and NSCC, which
could lead to unanticipated disruptions in OCC's or NSCC's clearing
operations.
    In connection with the proposal to enhance the timing of the
Guaranty Substitution, the New Accord would provide for a clearer,
simpler framework for the settlement of certain Stock Options and Stock
Futures by pinpointing a specific moment in time, the Guaranty
Substitution Time, at

which guarantee obligations would transfer from OCC to NSCC. The New
Accord would eliminate any ambiguity regarding which clearing agency is
responsible for guaranteeing settlement at any given moment.
Establishing a precise Guaranty Substitution Time would also provide
greater certainty that in the event of a Common Member default, the
default would be handled pursuant to the rules and procedures of the
clearing agency whose guarantee is then in effect and the system for
the clearance and settlement of Stock Options and Stock Futures would
continue with minimal interruption. This greater certainty would
strengthen OCC's and NSCC's ability to plan for and manage, and
therefore would mitigate, the risk presented by Common Member defaults
to OCC and NSCC, other members, and the markets the clearing agencies
serve. Therefore, through the adoption of the proposal to enhance the
timing of the Guaranty Substitution, OCC would more effectively manage
its risks related to the operation of the New Accord.
    Moreover, in connection with the proposal to put additional
arrangements into place concerning the procedures, information sharing,
and overall governance processes under the New Accord, NSCC and OCC
would agree to share certain information, including general
surveillance information regarding their members, so that each clearing
agency would be able to effectively identify, monitor, and manage risks
that may be presented by certain Common Members. Accordingly, OCC
believes the proposed changes are reasonably designed to identify,
monitor, and manage risks related to the link established between OCC
and NSCC for the settlement of certain Stock Options and Stock Futures
in a manner consistent with Rule 17Ad-22(e)(20).\30\
---------------------------------------------------------------------------

    \30\ Id.
---------------------------------------------------------------------------

    Finally, Rule 17Ad-22(e)(21) under the Act requires that a covered
clearing agency establish, implement, maintain and enforce written
policies and procedures reasonably designed to, among other things, be
efficient and effective in meeting the requirements of its participants
and the markets it serves.\31\ As noted above, under the Existing
Accord, even after NSCC's guarantee has come into effect, OCC is not
released from its guarantee with respect to the Options E&A until
certain deadlines have passed on the first business day following the
scheduled settlement date without NSCC notifying OCC that the relevant
Common Member has failed to meet an obligation to NSCC and/or NSCC has
ceased to act for such firm. This results in a period of time where
NSCC's guarantee overlaps with OCC's guarantee and where both clearing
agencies are holding margin against the same Options E&A positions. In
connection with the proposal to enhance the timing of the Guaranty
Substitution, the New Accord would minimize this ``double margining''
issue by introducing a new Guaranty Substitution Time, which would
normally occur as soon as NSCC has received all Required Deposits to
the Clearing Fund from Common Members, which have been calculated
taking into account the relevant E&A/Delivery Transactions, rather than
require reimbursement payments from one clearing agency to the other.
As a result, Common Members would no longer be required to post margin
at both clearing agencies to cover the same E&A/Delivery Transactions.
OCC believes that, by simplifying the terms of the existing agreement
in this way, the New Accord is designed to be efficient and effective
in meeting the requirements of OCC's and NSCC's participants and the
markets they serve.
---------------------------------------------------------------------------

    \31\ 17 CFR 240.17Ad-22(e)(21).
---------------------------------------------------------------------------

    Additionally, the proposal to put additional arrangements into
place concerning the procedures, information sharing, and overall
governance processes under the New Accord would create new efficiencies
in the management of this important link between OCC and NSCC. The
proposal to enhance information sharing between OCC and NSCC would
allow the clearing agencies to more effectively identify, monitor, and
manage risks that may be presented by certain Common Members, and would
create new efficiencies in their general surveillance efforts with
respect to these firms.
    In these ways, OCC believes the proposed New Accord is consistent
with the requirements of Rule 17Ad-22(e)(21).\32\
---------------------------------------------------------------------------

    \32\ Id.
---------------------------------------------------------------------------

    The proposed rule change is not inconsistent with the existing
rules of OCC, including any other rules proposed to be amended.

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

    Section 17A(b)(3)(I) of the Act \33\ requires that the rules of a
clearing agency not impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act. OCC does not
believe the proposed rule change would have any impact or impose any
burden on competition. The primary purpose of the proposed rule change
is to adopt a clearer, simpler framework for the settlement of Stock
Options issued by OCC and settled through the facilities of NSCC
through the introduction of a new Guaranty Substitution Time. The
proposed New Accord would also extend this framework to both (1) Stock
Options contracts in securities that are eligible to be settled through
NSCC's Balance Order Accounting Operation and (2) certain delivery
obligations arising from matured physically-settled Stock Futures
contracts cleared by OCC that are eligible to be settled through NSCC's
CNS Accounting Operation or Balance Order Accounting Operation. The New
Accord would put additional arrangements into place concerning the
procedures, information sharing, and overall governance processes under
the agreement. OCC is also proposing to make certain clarifying and
conforming changes to the OCC Rules as necessary to implement the New
Accord or to otherwise provide more clarity in OCC's Rules. None of
these proposed rule changes, either individually or together, would
affect Common Members' access to OCC's services, nor would any of these
proposed changes disadvantage or favor any particular user in
relationship to another user. As such, OCC believes that the proposed
changes would not have any impact or impose any burden on competition.
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

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

    Written comments were not and are not intended to be solicited with
respect to the proposed rule change and none have been received. OCC
will notify the Commission of any written comments received by OCC.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the 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_ADDRESS>Please include
File Number SR-OCC-2017-013 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2017-013. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the 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
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of OCC and on OCC's
Web site at http://www.theocc.com/components/docs/legal/rules_and_bylaws/sr_occ_17_013.pdf.
    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-OCC-2017-013 and
should be submitted on or before July 11, 2017.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated Authority.\34\
---------------------------------------------------------------------------

    \34\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-12891 Filed 6-19-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 20 (Tuesday, January 31, 2012)]
[Proposed Rules]
[Pages 4708-4709]
[FR Doc No: 2012-2088]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Docket No. FAA-2011-1338; Airspace Docket No. 11-ANM-27]

Proposed Amendment of Class E Airspace; Tobe, CO

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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

SUMMARY: This action proposes to amend Class E airspace at Tobe, CO.
Decommissioning of the Tobe Tactical Air Navigation System (TACAN) has
made this action necessary for the safety and management of Instrument
Flight Rules (IFR) operations in the vicinity of the Tobe Very High
Frequency Omni-Directional Radio Range/Distance Measuring Equipment
(VOR/DME).

DATES: Comments must be received on or before March 16, 2012.

ADDRESSES: Send comments on this proposal to the U.S. Department of
Transportation, Docket Operations, M-30, West Building Ground Floor,
Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590;
telephone<PHONE_NUMBER>. You must identify FAA Docket No. FAA-2011-
1338; Airspace Docket No. 11-ANM-27, at the beginning of your comments.
You may also submit comments through the Internet at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Eldon Taylor, Federal Aviation
Administration, Operations Support Group, Western Service Center, 1601
Lind Avenue SW., Renton, WA 98057; telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Comments Invited

    Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments, as
they may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal. Comments are
specifically invited on the overall regulatory, aeronautical, economic,
environmental, and energy-related aspects of the proposal.
    Communications should identify both docket numbers (FAA Docket No.
FAA-2011-1338 and Airspace Docket No. 11-ANM-27) and be submitted in
triplicate to the Docket Management System (see ``ADDRESSES'' section
for address and phone number). You may also submit comments through the
Internet at http://www.regulations.gov.
    Commenters wishing the FAA to acknowledge receipt of their comments
on this action must submit with those comments a self-addressed stamped
postcard on which the following statement is made: ``Comments to FAA
Docket No. FAA-2011-1338 and Airspace Docket No. 11-ANM-27.'' The
postcard will be date/time stamped and returned to the commenter.
    All communications received on or before the specified closing date
for comments will be considered before taking action on the proposed
rule. The proposal contained in this action may be changed in light of
comments received. All comments submitted will be available for
examination in the public docket both before and after the closing date
for comments. A report summarizing each substantive public contact with
FAA personnel concerned with this rulemaking will be filed in the
docket.

Availability of NPRMs

    An electronic copy of this document may be downloaded through the
Internet at http://www.regulations.gov. Recently published rulemaking
documents can also be accessed through the FAA's Web page at http://www.faa.gov/airports_airtraffic/air_traffic/publications/airspace_amendments/.
    You may review the public docket containing the proposal, any
comments received, and any final disposition in person in the Dockets
Office (see the ADDRESSES section for the address and phone number)
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. An informal docket may also be examined during normal
business hours at the Northwest Mountain Regional Office of the Federal
Aviation Administration, Air Traffic Organization, Western Service
Center, Operations Support Group, 1601 Lind Avenue SW., Renton, WA
98057.
    Persons interested in being placed on a mailing list for future
NPRM's should contact the FAA's Office of Rulemaking,<PHONE_NUMBER>,
for a copy of Advisory Circular No. 11-2A, Notice of Proposed
Rulemaking Distribution System, which describes the application
procedure.

The Proposal

    The FAA is proposing an amendment to Title 14 Code of Federal
Regulations (14 CFR) Part 71 by amending Class E airspace extending
upward from 8,500 feet Mean Sea Level (MSL) in the vicinity of the Tobe
VOR/DME. Airspace reconfiguration is necessary due to the
decommissioning to the Tobe TACAN. This action would enhance the safety
and management of aircraft operations in the vicinity of the Tobe VOR/
DME, CO.
    Class E airspace designations are published in paragraph 6005, of
FAA Order 7400.9V, dated August 9, 2011, and effective September 15,
2011, which is incorporated by reference in 14 CFR 71.1. The Class E
airspace designation listed in this document will be published
subsequently in this Order.
    The FAA has determined this proposed regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
Therefore, this proposed regulation; (1) Is not a ``significant
regulatory action'' under Executive Order 12866; (2) is not a
``significant rule'' under DOT Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3) does not warrant preparation of a
regulatory evaluation as the anticipated impact is so minimal. Since
this is a routine matter that will only affect air traffic procedures
and air navigation, it is certified this proposed rule, when

promulgated, would not have a significant economic impact on a
substantial number of small entities under the criteria of the
Regulatory Flexibility Act.
    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the U.S. Code. Subtitle 1, Section 106, describes
the authority for the FAA Administrator. Subtitle VII, Aviation
Programs, describes in more detail the scope of the agency's authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the
FAA is charged with prescribing regulations to assign the use of the
airspace necessary to ensure the safety of aircraft and the efficient
use of airspace. This regulation is within the scope of that authority
as it would modify controlled airspace at Tobe, CO.

List of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

The Proposed Amendment

    Accordingly, pursuant to the authority delegated to me, the Federal
Aviation Administration proposes to amend 14 CFR part 71 as follows:

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

    1. The authority citation for 14 CFR part 71 continues to read as
follows:

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

Sec.  71.1  [Amended]

    2. The incorporation by reference in 14 CFR 71.1 of the Federal
Aviation Administration Order 7400.9V, Airspace Designations and
Reporting Points, dated August 9, 2011, and effective September 15,
2011 is amended as follows:

Paragraph 6005 Class E airspace areas extending upward from 700
feet or more above the surface of the earth.

* * * * *

ANM CO E5 Tobe, CO [Modified]

Tobe VOR/DME
    (Lat. 37[deg]15'31'' N., long. 103[deg]36'00'' W.)

    That airspace north of the Tobe VOR/DME extending upward from
8,500 feet MSL, bounded on the north by V-210, on the southeast by
V-263, and on the west by V-389.

    Issued in Seattle, Washington, on January 23, 2012.
Robert Henry,
Acting Manager, Operations Support Group, Western Service Center.
[FR Doc. 2012-2088 Filed 1-30-12; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 81, Number 99 (Monday, May 23, 2016)]
[Proposed Rules]
[Pages 32260-32261]
[FR Doc No: 2016-11966]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R01-OAR-2012-0289; FRL-9946-68-Region 1]

Air Plan Approval; New Hampshire; Ozone Maintenance Plan

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve a State Implementation Plan (SIP) revision submitted by the
State of New Hampshire that contains an ozone maintenance plan for New
Hampshire's former 1-hour ozone nonattainment areas. The Clean Air Act
requires that areas that are designated attainment for the 1997 8-hour
ozone standard, and also had been previously designated either
nonattainment or maintenance for the 1-hour ozone standard, develop a
plan showing how the state will maintain the ozone standard for the
area. The intended effect of this action is to propose approval of New
Hampshire's maintenance plan. This action is being taken in accordance
with the Clean Air Act.

DATES: Written comments must be received on or before June 22, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R01-
OAR-2012-0289 at http://www.regulations.gov, or via email to
<EMAIL_ADDRESS>For comments submitted at Regulations.gov, follow
the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed from Regulations.gov. For either
manner of submission, the EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. The EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e. on the web, cloud, or other file sharing
system). For additional submission methods, please contact the person
identified in the FOR FURTHER INFORMATION CONTACT section. For the full
EPA public comment policy, information about CBI or multimedia
submissions, and general guidance on making effective comments, please
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Anne Arnold, Air Quality Planning
Unit, U.S. Environmental Protection Agency, Suite 100, Mail Code OEP05-
02, Boston, MA 02109-3912, telephone number<PHONE_NUMBER>, fax number
(617) 918-0047, email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: In the Final Rules Section of this Federal

Register, EPA is approving the State's SIP submittal as a direct final
rule without prior proposal because the Agency views this as a
noncontroversial submittal and anticipates no adverse comments. A
detailed rationale for the approval is set forth in the direct final
rule. If no adverse comments are received in response to this action
rule, no further activity is contemplated. If EPA receives adverse
comments, the direct final rule will be withdrawn and all public
comments received will be addressed in a subsequent final rule based on
this proposed rule. EPA will not institute a second comment period. Any
parties interested in commenting on this action should do so at this
time. Please note that if EPA receives adverse comment on an amendment,
paragraph, or section of this rule and if that provision may be severed
from the remainder of the rule, EPA may adopt as final those provisions
of the rule that are not the subject of an adverse comment. For
additional information, see the direct final rule which is located in
the Rules Section of this Federal Register.

    Dated: May 4, 2016.
H. Curtis Spalding,
Regional Administrator, EPA New England.
[FR Doc. 2016-11966 Filed 5-20-16; 8:45 am]
BILLING CODE 6560-50-P


Steven Knott/ DC/ USEPA/ US 06/ 16/ 2006 11: 05 AM To William Jordan/ DC/ USEPA/ US@ EPA cc Angela Hofmann/ DC/ USEPA/ US@ EPA, Peterj Smith/ DC/ USEPA/ US@ EPA, Keith Matthews/ DC/ USEPA/ US@ EPA, John Carley/ DC/ USEPA/ US@ EPA, Nathanael Martin/ DC/ USEPA/ US@ EPA, Jim Jones/ DC/ USEPA/ US@ EPA, sheering@ isr. umich. edu bcc Subject Fw: Extension of SAP waiver for Nursing Women rule Bill,

Below I am forwarding the concurrence for the requested extensio n.

Thanks.

Steve  Forwarded by Steven Knott/ DC/ USEPA/ US on 06/ 16/ 2006 10: 50 AM  Steve Heeringa < sheering@ isr. umich. edu> 06/ 16/ 2006 10: 47 AM To Steven Knott/ DC/ USEPA/ US@ EPA cc Subject RE: Extension of SAP waiver for Nursing Women rule Dear Steve,

Based on my original, detailed review of the nursing women rule change on May 17 18,2006 I approve the request that the FIFRA SAP extend its May 18, 2006 waiver of scientific review and comment on the draft final rule to include waiver of FIFRA SAP scientific review and comment on the proposed rule.

This is a minor administrative/ legal modification and does not affect the substance of my May 17,18 review. I understand that the text of the proposed and final rules is identical, the substantive text of the proposed and final rules will be the same as that previously submitted to the FIFRA SAP in the form of the draft final rule. I do request that in the event that public comment on the rule leads EPA to change the content of the rule, EPA will afford the FIFRA SAP an opportunity to comment on any revisions.

Sincerely,

Steven G. Heeringa Chair, FIFRA Science Advisory Panel  Original Message From: Knott. Steven@ epamail. epa. gov [ mailto: Knott. Steven@ epamail. epa. gov]

Sent: Friday, June 16, 2006 10: 38 AM To: Steve Heeringa Subject: Fw: Extension of SAP waiver for Nursing Women rule Dr. Heeringa,

Below I am forwarding a request from the EPA Office of Pesticide Programs ( OPP) to extend the FIFRA SAP's May 18, 2006 waiver of scientific review and comment on EPA's draft final rule entitled " Protections for Subjects in Human Research: Nursing Women" to a proposed form of the rule. As explained in more detail in OPP's request, the EPA has decided to issue this rule following a slightly different procedure than envisioned at the time the draft final rule and original waiver request were submitted to the FIFRA SAP. Under the new procedure, both a proposed and final form of the rule will be published concurrently, allowing an opportunity for public comment. Issuance of this rule in proposed and final forms, concurrently, is a procedural matter that will not change the scope of the rule nor introduce new scientific issues that warrant review by the Panel. The request further explains that the text of the proposed and final rules is identical, the substantive text of the proposed and final rules will be the same as that previously submitted to the FIFRA SAP in the form of the draft final rule, and, in the event that public comment on the rule leads EPA to change the content of the rule, EPA will afford the FIFRA SAP an opportunity to comment on any revisions.

Therefore, I am requesting that the FIFRA SAP extend its May 18, 2006 waiver of scientific review and comment on the draft final rule to include waiver of FIFRA SAP scientific review and comment on the proposed rule.

Please let me know whether you concur with this request via reply e mail ( please reply with history) and I will forward your response to the Agency.

Sincerely,

Steve Knott Executive Secretary FIFRA Scientific Advisory Panel 202 564 0103 knott. steven@ epa. gov  Forwarded by Steven Knott/ DC/ USEPA/ US on 06/ 16/ 2006 09: 13 AM

William Jordan/ DC/ USEPA/ US To Steven Knott/ DC/ USEPA/ US@ EPA 06/ 16/ 2006 09: 06 cc AM Angela Hofmann/ DC/ USEPA/ US@ EPA, Peterj Smith/ DC/ USEPA/ US@ EPA, Keith Matthews/ DC/ USEPA/ US@ EPA, John Carley/ DC/ USEPA/ US@ EPA, Nathanael Martin/ DC/ USEPA/ US@ EPA, Jim Jones/ DC/ USEPA/ US@ EPA Subject Extension of SAP waiver for Nursing Women rule Dear Steve

As you recall, on May 18, 2006, the FIFRA SAP waived scientific review and comment on the EPA's draft final rule entitled " Protections for Subjects in Human Research: Nursing Women." In providing this waiver, the SAP concurred with the EPA's position that the draft final rule is very limited in scope and does not contain new scientific issues that warrant review by the Panel.

When EPA sent its draft final rule and waiver request to the FIFRA SAP, we intended to promulgate the final rule without first issuing a proposed rule for public comment The Agency thought that issuing a proposed rule would not be in the public interest because the time required for notice and comment procedures as typically conducted under the Administrative Procedures Act would delay implementing the additional protections for nursing women. Subsequent to receiving the FIFRA SAP's waiver, the EPA had decided that, in addition to issuing a final rule, it would be appropriate to offer the public an opportunity to comment. Thus, EPA will follow a slightly different procedure in which we concurrently publish the rule in both proposed and final forms. The rule text for both the proposal and final is identical. If there are no adverse public comments, the final rule will take effect after the end of the comment period. If, however, there are adverse comments, EPA will not make the final rule effective. Rather, EPA would consider the comments, modify the rule if appropriate, and release the final rule together with a document responding to comments. If EPA follows this latter course, the SAP would have an opportunity to comment on the final rule.

Since the substantive content of the proposed rule and final rule is identical, I am asking that the May 18, 2006 waiver of FIFRA SAP review of the draft final rule be extended to include waiver of FIFRA SAP review of the proposed rule. I make this request without resubmitting the text of the draft final rule or submitting the text of the proposed rule for the following reasons:

1) the substantive text of the concurrently issued proposed and final rules will be the same as that previously submitted to the FIFRA SAP in the form of the draft final rule; and 2) the issuance of this rule in proposed and final forms, concurrently, is a procedural matter that will not change the scope of the rule nor introduce new scientific issues that warrant review by the Panel; and 3) in the event that public comment on the rule leads EPA to change the content of the rule, EPA will afford the panel an opportunity to comment on any revisions.

Please let me know whether you concur with this request via reply e mail ( please reply with history).

Thanks,

Bill William L. Jordan Senior Policy Adviser Office of Pesticide Programs  Mail code 7501C U. S. Environmental Protection Agency 1200 Pennsylvania Avenue, NW Washington, DC 20460 ( 703) 305 1049 ( voice) ( 703) 308 4776 ( fax)


[Federal Register Volume 78, Number 188 (Friday, September 27, 2013)]
[Notices]
[Page 59664]
[FR Doc No: 2013-23570]

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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
corporate filings:
    Docket Numbers: EC13-150-000.
    Applicants: Noble Great Plains Windpark, LLC.
    Description: Application for Authorization for Disposition of
Jurisdictional Facilities and Requests for Waivers, Confidential
Treatment, and Expedited Consideration of Noble Great Plains Windpark,
LLC. On 9/19/13 submitted an Errata to September 18, 2013 Application
for Authorization for Disposition of Jurisdictional Facilities.
    Filed Date: 9/18/13; 9/19/13.
    Accession Number: 20130918-5079; 20130919-5081.
    Comments Due: 5 p.m. ET 10/9/13.
    Take notice that the Commission received the following exempt
wholesale generator filings:
    Docket Numbers: EG13-58-000.
    Applicants: NRG Delta LLC.
    Description: Notice of NRG Delta LLC for Self-Certification of
Exempt Wholesale Generator Status.
    Filed Date: 9/19/13.
    Accession Number: 20130919-5089.
    Comments Due: 5 p.m. ET 10/10/13.

    Take notice that the Commission received the following electric
rate filings:
    Docket Numbers: ER12-1195-001; ER10-2310-002; ER10-2314-002; ER10-
2311-002; ER10-2312-002; ER10-2313-002; ER10-2315-002; ER10-2316-002;
ER10-2318-002; ER10-2321-002.
    Applicants: Camden County Energy Recovery Associates, L.P., Covanta
Delaware Valley, L.P., Covanta Energy Marketing LLC, Covanta Essex
Company, Covanta Hempstead Company, Covanta Maine, LLC, Covanta
Niagara, L.P., Covanta Plymouth Renewable Energy Limited Partnership,
Covanta Power LLC, Covanta Union, Inc.
    Description: Notice of Change in Status of the Covanta MBR
Entities.
    Filed Date: 9/18/13.
    Accession Number: 20130918-5084.
    Comments Due: 5 p.m. ET 10/9/13.

    Docket Numbers: ER13-1819-001.
    Applicants: Southwest Power Pool, Inc.
    Description: Southwest Power Pool, Inc. submits 1534R3 Kansas
Municipal Energy Agency NITSA and NOA--Compliance Filing to be
effective 6/1/2013.
    Filed Date: 9/19/13.
    Accession Number: 20130919-5048.
    Comments Due: 5 p.m. ET 10/10/13.

    Docket Numbers: ER13-2400-000.
    Applicants: Southern California Edison Company.
    Description: Notices of Cancellation with SunEdison Utility
Solutions, LLC to be effective 3/13/2013.
    Filed Date: 9/19/13.
    Accession Number: 20130919-5001.
    Comments Due: 5 p.m. ET 10/10/13.

    Docket Numbers: ER13-2401-000.
    Applicants: ITC Midwest LLC.
    Description: Filing of Letter Agreement with AECI to be effective
11/18/2013.
    Filed Date: 9/19/13.
    Accession Number: 20130919-5021.
    Comments Due: 5 p.m. ET 10/10/13.

    Docket Numbers: ER13-2402-000.
    Applicants: PJM Interconnection, L.L.C.
    Description: Queue Position Y1-084; Original Service Agreement No.
3637 to be effective 8/20/2013.
    Filed Date: 9/19/13.
    Accession Number: 20130919-5038.
    Comments Due: 5 p.m. ET 10/10/13.

    Take notice that the Commission received the following open access
transmission tariff filings:
    Docket Numbers: OA13-8-000.
    Applicants: Genesis Solar, LLC.
    Description: Genesis Solar, LLC Petition for Waiver from Order Nos.
888, 889 and 890, and Request for Waiver of the 60-Day Rule.
    Filed Date: 9/18/13.
    Accession Number: 20130918-5094.
    Comments Due: 5 p.m. ET 10/9/13.

    Take notice that the Commission received the following qualifying
facility filings:
    Docket Numbers: QF13-540-000.
    Applicants: Tech Park Solar, LLC.
    Description: Refund Report of Tech Park Solar, LLC.
    Filed Date: 9/19/13.
    Accession Number: 20130919-5040.
    Comments Due: 5 p.m. ET 10/10/13.

    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: September 19, 2013.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-23570 Filed 9-26-13; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 85, Number 84 (Thursday, April 30, 2020)]
[Notices]
[Pages 24086-24087]
[FR Doc No: 2020-09171]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2014-0420]

Hours of Service of Drivers: Specialized Carriers & Rigging
Association (SC&RA); Application for Renewal of Exemption

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of application for renewal of exemption; request for
comments.

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SUMMARY: FMCSA announces that it has received an application from the
Specialized Carriers & Rigging Association (SC&RA) for a renewal of its
exemption from the minimum 30-minute rest break provision of the
Agency's hours-of-service (HOS) regulations. The exemption covers
drivers for all specialized carriers transporting loads that exceed
normal weight and dimensional limits--oversize/overweight (OS/OW)
loads--and require a permit issued by a government authority. SC&RA
currently holds an exemption for the period from June 18, 2015, through
June 17, 2020. FMCSA requests public comment on SC&RA's application for
a renewal of its exemption.

DATES: Comments must be received on or before June 1, 2020. The
requested exemption renewal would be effective from June 18, 2020
through June 18, 2025.

ADDRESSES: You may submit comments identified by Federal Docket
Management System Number FMCSA-2014-0420 by any of the following
methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow
the online instructions for submitting comments.
     Mail: Docket Operations, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor,
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: Bring comments to Docket
Operations, West Building, Ground Floor, Room W12-140, 1200 New Jersey
Avenue SE, between 9 a.m. and 5 p.m. E.T., Monday through Friday,
except Federal holidays. To be sure someone is there to help you,
please call<PHONE_NUMBER> or<PHONE_NUMBER> before visiting Docket
Operations.
     Fax: 1-202-493-2251.
    Each submission must include the Agency name and the docket number
for this notice. Note that DOT posts all comments received without
change to www.regulations.gov, including any personal information
included in a comment. Please see the Privacy Act heading below.
    Docket: For access to the docket to read background documents or
comments, go to www.regulations.gov at any time or visit Room W12-140
on the ground level of the West Building, 1200 New Jersey Avenue SE,
Washington, DC, between 9 a.m. and 5 p.m., ET, Monday through Friday,
except Federal holidays. To be sure someone is there to help you,
please call<PHONE_NUMBER> or<PHONE_NUMBER> before visiting Docket
Operations.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits
comments from the public to better inform its rulemaking process. DOT
posts these comments, without edit, including any personal information
the commenter provides, to www.regulations.gov, as

described in the system of records notice (DOT/ALL-14 FDMS), which can
be reviewed at www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: For information concerning this
notice, contact Ms. Pearlie Robinson, FMCSA Driver and Carrier
Operations Division; Office of Carrier, Driver and Vehicle Safety
Standards; Telephone:<PHONE_NUMBER>. Email<EMAIL_ADDRESS>If you have
questions on viewing or submitting material to the docket, contact
Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Public Participation and Request for Comments

    FMCSA encourages you to participate by submitting comments and
related materials.

Submitting Comments

    If you submit a comment, please include the docket number for this
notice (FMCSA-2014-0420), indicate the specific section of this
document to which the comment applies, and provide a reason for
suggestions or recommendations. You may submit your comments and
material online or by fax, mail, or hand delivery, but please use only
one of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so the Agency can contact you if it has questions
regarding your submission.
    To submit your comment online, go to www.regulations.gov and put
the docket number, ``FMCSA-2014-0420'' in the ``Keyword'' box, and
click ``Search.'' When the new screen appears, click on ``Comment
Now!'' button and type your comment into the text box in the following
screen. Choose whether you are submitting your comment as an individual
or on behalf of a third party and then submit. If you submit your
comments by mail or hand delivery, submit them in an unbound format, no
larger than 8\1/2\ by 11 inches, suitable for copying and electronic
filing. If you submit comments by mail and would like to know that they
reached the facility, please enclose a stamped, self-addressed postcard
or envelope.

II. Legal Basis

    FMCSA has authority under 49 U.S.C. 31136(e) and 31315 to grant
exemptions from certain Federal Motor Carrier Safety Regulations
(FMCSRs). FMCSA must publish a notice of each exemption request in the
Federal Register (49 CFR 381.315(a)). The Agency must provide the
public an opportunity to inspect the information relevant to the
application, including any safety analyses that have been conducted.
The Agency must also provide an opportunity for public comment on the
request.
    The Agency reviews safety analyses and public comments submitted,
and determines whether granting the exemption would likely achieve a
level of safety equivalent to, or greater than, the level that would be
achieved by the current regulation (49 CFR 381.305). The decision of
the Agency must be published in the Federal Register (49 CFR
381.315(b)) with the reasons for denying or granting the application
and, if granted, the name of the person or class of persons receiving
the exemption, and the regulatory provision from which the exemption is
granted. The notice must also specify the effective period and explain
the terms and conditions of the exemption. The exemption may be renewed
(49 CFR 381.300(b)).

III. Background

    The SC&RA, requested a renewal of its exemption from the mandatory
rest break requirement of 49 CFR 395.3(a)(3)(ii) on behalf of all
specialized carriers and drivers responsible for the transportation of
loads exceeding standard legal weight and dimensional limits--oversize/
overweight (OS/OW) loads--that require a permit issued by a government
authority. The exemption was first published on June 18, 2015 (80 FR
34957) with an expiration date of June 18, 2017.
    On November 14, 2016 (81 FR 79556), FMCSA announced the extension
of the SC&RA exemption notice that was published on June 18, 2015. The
Agency extended the expiration date of the exemption to June 17, 2020
in response to section 5206(b)(2)(A) of the ``Fixing America's Surface
Transportation Act'' (FAST Act). That section extends the expiration
date of all HOS exemptions in effect on the date of enactment to five
years from the date of issuance of the exemptions.
    SC&RA has requested a renewal of the exemption that would be
effective from June 18, 2020 through June 18, 2025. A copy of SC&RA's
request is in the docket referenced at the beginning of this notice.

IV. Request for Comments

    In accordance with 49 U.S.C. 31315(b)(6), FMCSA requests public
comment from all interested persons on SC&RA's request for a renewal of
its exemption from the 30-minute rest break rule. All comments received
before the close of business on the comment closing date indicated at
the beginning of this notice will be considered and will be available
for examination in the docket at the location listed under the
Addresses section of this notice. Comments received after the comment
closing date will be filed in the public docket and will be considered
to the extent practicable. In addition to late comments, FMCSA will
also continue to file, in the public docket, relevant information that
becomes available after the comment closing date. Interested persons
should continue to examine the public docket for new material.

Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2020-09171 Filed 4-29-20; 8:45 am]
BILLING CODE 4910-EX-P