[Federal Register Volume 76, Number 211 (Tuesday, November 1, 2011)]
[Notices]
[Pages 67515-67517]
[FR Doc No: 2011-28208]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65635; File No. SR-CME-2011-15]

Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.;
Notice of Filing and Order Granting Accelerated Approval of Proposed
Rule Change To Amend Its Rules Relating to Interest Rate Swaps Clearing

October 26, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on October 19, 2011, the Chicago Mercantile Exchange Inc. (``CME'')
filed with the Securities and Exchange Commission (``Commission'') the
proposed rule change described in Items I and II

below, which items have been prepared primarily by CME. The Commission
is publishing this Notice and Order to solicit comments on the proposed
rule change from interested persons and to approve the proposed rule
change on an accelerated basis.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of Terms of Substance of
the Proposed Rule Change

    The text of the proposed rule change is below. Italicized text
indicates additions; [bracketed] text indicates deletions.
* * * * *

CHICAGO MERCANTILE EXCHANGE INC. RULEBOOK

Rule 100--Rule 8G06--No Change

* * * * *
Rule 8G07. IRS FINANCIAL SAFEGUARDS AND GUARANTY FUND DEPOSIT
    1. (i) The Clearing House shall establish a financial safeguards
package to support IRS clearing, and each IRS Clearing Member shall
make an IRS Guaranty Fund deposit with the Clearing House. An IRS
Clearing Member's deposit to the IRS Guaranty Fund and assessments
against it pursuant to these Rules may be used to cover losses incurred
by the Clearing House if a defaulted IRS Clearing Member's assets,
including amounts available pursuant to any guarantee from an Affiliate
of an IRS Clearing Member, available to the Clearing House are
insufficient to cover such loss, regardless of the cause of default.
The Clearing House shall calculate the requirements for the IRS
financial safeguards package, which shall be composed of:
    (a) A funded portion, determined by the Clearing House using stress
test methodology equal to the theoretical two largest IRS Clearing
Member losses produced by such stress test or such other methodology
determined by the IRS Risk Committee (such amount, plus any additional
funds required to be deposited by IRS Clearing Members as a result of
the minimum contribution requirement below, the ``IRS Guaranty Fund''),
and
    (b) an unfunded portion, determined by the Clearing House using
stress test methodology equal to the theoretical third and fourth
largest IRS Clearing Member losses produced by such stress test (and
assuming for purposes of the model that already-defaulted IRS Clearing
Members will fail to contribute) or such other methodology determined
by the IRS Risk Committee. Upon a default, after application of the IRS
Guaranty Fund, each IRS Clearing Member (excluding any insolvent or
defaulted IRS Clearing Member) shall be subject to assessment of its
previously-assigned proportionate share of such amount (collectively
the ``IRS Assessments'').
    (ii) Each IRS Clearing Member's minimum contribution to the IRS
Guaranty Fund shall be the greater of:
    (a) such IRS Clearing Member's proportionate share of the share of
the theoretical two largest IRS Clearing Member losses described in
paragraph (i) above, each clearing member's relative portion being
based on the 90-day trailing average of its aggregate performance bond
requirements and average gross notional open interest outstanding at
the Clearing House (or such other shorter time interval determined by
the IRS Risk Committee); or
    (b) (x) $50,000,000 for a non-Affiliated IRS Clearing Member or (y)
$25,000,000 for each Affiliated IRS Clearing Member, where one
Affiliated IRS Clearing Member provides its primary clearing services
for customers as a FCM with any proprietary business of such FCM only
incidental to providing such clearing service for customers and the
other Affiliated IRS Clearing Member only provides IRS clearing
services through its proprietary account for itself and its Affiliates.
An ``Affiliated IRS Clearing Member'' shall mean an IRS Clearing Member
with an Affiliate that is also an IRS Clearing Member.
* * * * *

Rule 8G07(2)--End--No Change

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

    In its filing with the Commission, CME included statements
concerning the purpose 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 III below. CME has prepared summaries, set forth in sections A, B,
and C below, of the most significant aspects of such statements.

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

    CME proposes to make certain rule changes that affect the minimum
guaranty fund requirements for Interest Rate Swap (``IRS'') Clearing
Members at CME. The text of current CME Rule 8G07 provides that the
minimum guaranty fund requirement for an IRS Clearing Member is
$50,000,000. The proposed rule changes would amend Rule 8G07 to provide
that, in instances where two separate IRS Clearing Members are
affiliated, the minimum IRS Guaranty Fund requirement for each firm
would be $25,000,000. This proposed change would be subject to the
condition that only one of the affiliated IRS Clearing Members provide
IRS clearing services only through the IRS proprietary account, and the
other affiliated IRS Clearing Member provides its primary clearing
services for customers as a FCM with any proprietary business of such
FCM only incidental to providing such clearing service for customers.
Each of the affiliated IRS Clearing Members would be required
independently to meet capital and other requirements of clearing
membership as set forth in the CME Rules.
    To accommodate the changes discussed above, CME would also make
corresponding changes to its Manual of Operations for CME Cleared
Interest Rate Swaps, including revisions to operational processing
times and processes, IRS Guaranty Fund calculations and IRS assessments
allocations and amendment to the default management auction process
requiring only IRS Clearing Members with open positions in a currency
to bid for a defaulted IRS Clearing Member's portfolio in such
currency.
    CME notes that it has also submitted the proposed rule changes that
are the subject of this filing to its primary regulator, the Commodity
Futures Trading Commission (``CFTC''). The text of the CME rule
proposed amendments is in Section I above, with additions italicized
and deletions in brackets.

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

    CME does not believe that the proposed rule change will have any
impact, or impose any burden, on competition.

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

    CME has not solicited, and does not intend to solicit, comments
regarding this proposed rule change. CME has not received any
unsolicited written comments from interested parties.

III. 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 may be submitted by using the
Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml), or send an email to<EMAIL_ADDRESS>Please include
File No. SR-CME-2011-15 on the subject line.
     Paper comments should be sent in triplicate to Elizabeth
M. Murphy, Secretary, Securities and Exchange Commission, 100 F Street
NE., Washington, DC 20549-1090.
    All submissions should refer to File Number SR-CME-2011-15. 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
a.m. and 3 p.m. Copies of such filing also will be available for
inspection and copying at the principal office of CME. 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-CME-2011-15 and should be
submitted on or before November 22, 2011.

IV. Commission's Findings and Order Granting Accelerated Approval of
Proposed Rule Change

    In its filing, CME requested that the Commission approve this
request on an accelerated basis, for good cause shown. CME has
articulated three reasons for granting this request on an accelerated
basis. One, the products covered by this filing, and CME's operations
as a derivatives clearing organization for such products, are regulated
by the CFTC under the CEA. Two, the proposed rule changes relate solely
to interest rate swap clearing and therefore relate solely to its swaps
clearing activities and do not significantly relate to CME's functions
as a clearing agency for security-based swaps. Three, not approving
this request on an accelerated basis will have a significant impact on
the swap clearing business of CME as a designated clearing
organization.
    Section 19(b) of the Act \3\ directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and the rules and regulations thereunder applicable to such
organization. The Commission finds that the proposed rule change is
consistent with the requirements of the Act, in particular the
requirements of Section 17A of the Act,\4\ and the rules and
regulations thereunder applicable to CME. Specifically, the Commission
finds that the proposed rule change is consistent with Section
17A(b)(3)(F) of the Act which requires, among other things, that the
rules of a clearing agency be designed to promote the prompt and
accurate clearance and settlement of derivative agreements, contracts,
and transactions because it should allow CME to enhance its services in
clearing interest rate swaps, thereby promoting the prompt and accurate
clearance and settlement of derivative agreements, contracts, and
transactions.\5\
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    \3\ 15 U.S.C. 78s(b).
    \4\ 15 U.S.C. 78q-1. In approving this proposed rule change, the
Commission has considered the proposed rule's impact on efficiency,
competition, and capital formation. 15 U.S.C. 78c(f).
    \5\ 15 U.S.C. 78q-1(b)(3)(F).
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    The Commission finds good cause for accelerating approval because:
(i) The proposed rule change does not significantly affect any
securities clearing operations of the clearing agency (whether in
existence or contemplated by its rules) or any related rights or
obligations of the clearing agency or persons using such service; (ii)
CME has indicated that not providing accelerated approval would have a
significant impact on the swap clearing business of CME as a designated
clearing organization; and (iii) the activity relating to the non-
security clearing operations of the clearing agency for which the
clearing agency is seeking approval is subject to regulation by another
regulator.

V. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) \6\ of the
Act, that the proposed rule change (SR-CME-2011-15) is approved on an
accelerated basis.
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    \6\ 15 U.S.C. 78s(b)(2).
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    For the Commission by the Division of Trading and Markets, pursuant
to delegated authority.\7\
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    \7\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-28208 Filed 10-31-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 83, Number 75 (Wednesday, April 18, 2018)]
[Notices]
[Pages 17175-17176]
[FR Doc No: 2018-08041]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2006-0971; FRL-9976-54-OAR]

Proposed Information Collection Request; Comment Request;
National Volatile Organic Compound Emission Standards for Aerosol
Coatings

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) is planning to
submit an information collection request (ICR), ``National Volatile
Organic Compound Emission Standards for Aerosol Coatings'' (EPA ICR No.
2289.04, OMB Control No. 2060-0617) to the Office of Management and
Budget (OMB) for review and approval in accordance with the Paperwork
Reduction Act (PRA). Before doing so, the EPA is soliciting public
comments on specific aspects of the proposed information collection as
described below. This is a proposed extension of the ICR, which is
currently approved through October 31, 2018. An Agency may not conduct
or sponsor and a person is not required to respond to a collection of
information unless it displays a currently valid OMB control number.

DATES: Comments must be submitted on or before June 18, 2018.

ADDRESSES: Submit your comments, referencing Docket ID No. EPA-HQ-OAR-
2006-0971 online using www.regulations.gov (our preferred method), by
email to: [email protected], or by mail to: EPA Docket Center,
Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania
Ave. NW, Washington, DC 20460.
    The EPA's policy is that all comments received will be included in
the public docket without change including any personal information
provided, unless the comment includes profanity, threats, information
claimed to be Confidential Business Information (CBI), or other
information whose disclosure is restricted by statute.

FOR FURTHER INFORMATION CONTACT: Ms. Kaye Whitfield, Sector Policies
and Programs Division (Mail Code D243-02), Office of Air Quality
Planning and Standards, U.S. Environmental Protection Agency, Research
Triangle Park, North Carolina 27711; telephone number:<PHONE_NUMBER>;
fax number:<PHONE_NUMBER>; email address: [email protected].

SUPPLEMENTARY INFORMATION: Supporting documents which explain in detail
the information that the EPA will be collecting are available in the
public docket for this ICR. The docket can be viewed online at
www.regulations.gov or in person at the EPA Docket Center, EPA WJC West
Building, Room 3334, 1301 Constitution Ave. NW, Washington, DC. The
telephone number for the Docket Center is<PHONE_NUMBER>. For additional
information about the EPA's public docket, visit http://www.epa.gov/dockets.
    Pursuant to section 3506(c)(2)(A) of the PRA, the EPA is soliciting
comments and information to enable it to: (i) Evaluate whether the
proposed collection of information is necessary for the proper
performance of the functions of the Agency, including whether the
information will have practical utility; (ii) evaluate the accuracy of
the Agency's estimate of the burden of the proposed collection of
information, including the validity of the methodology and assumptions
used; (iii) enhance the quality, utility, and clarity of the
information to be collected; and (iv) minimize the burden of the
collection of information on those who are to respond, including
through the use of appropriate automated electronic, mechanical, or
other technological collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses. The
EPA will consider the comments received and amend the ICR as
appropriate. The final ICR package will then be submitted to OMB for
review and approval. At that time, the EPA will issue another Federal
Register notice to announce the submission of the ICR to OMB and the
opportunity to submit additional comments to OMB.
    Abstract: The EPA is required under section 183(e) of the Clean Air
Act (CAA) to regulate volatile organic compound (VOC) emissions from
the use of consumer and commercial products. Pursuant to CAA section
183(e)(3), the EPA published a list of consumer and commercial products
and a schedule for their regulation (60 FR 15264). Aerosol coatings are
included on the list, and the standards for such coatings are codified
at 40 CFR part 59, subpart E. The reports required under the standards
enable the EPA to identify coating formulations manufactured, imported,
or distributed in the United States, and to determine the product-
weighted reactivity. The ICR addresses the burden for activities
conducted in 3-year increments after promulgation of the national VOC
emission standards for aerosol coatings. Regulated entities read
instructions to determine how they are affected by the rule. They are
required to submit initial notifications when an aerosol coating is
manufactured and notification of changes in the initial report, to
report formulation data and exemptions claimed, and to maintain
records. In addition, regulated entities are required to submit
triennial reports that include formulation data and VOC usage.
    Form Numbers: None.
    Respondents/affected entities: Respondents to this information
collection are manufacturers,

distributors, and importers of aerosol coatings. These regulated
entities fall within the North American Industry Classification System
(NAICS) Code 32551, ``Paint and Coating Manufacturing'' and NAICS Code
325998, ``All Other Miscellaneous Chemical Production and Preparation
Manufacturing.''
    Respondent's obligation to respond: Mandatory under 40 CFR part 59,
subpart E.
    Estimated number of respondents: 65 (total).
    Frequency of response: Annual, triennial.
    Total estimated burden: 12,259 hours (per year). Burden is defined
at 5 CFR 1320.03(b).
    Total estimated cost: $855,113 (per year), includes no annualized
capital or operation and maintenance costs.
    Changes in Estimates: There is a decrease of 6 hours in the total
estimated respondent burden compared with the ICR currently approved by
OMB. This decrease is due to addressing calculation errors in the
previously approved ICR.

    Dated: April 11, 2018.
Penny Lassiter,
Acting Director, Sector Policies and Programs Division.
[FR Doc. 2018-08041 Filed 4-17-18; 8:45 am]
 BILLING CODE 6560-50-P