[Federal Register Volume 86, Number 124 (Thursday, July 1, 2021)]
[Notices]
[Pages 35086-35087]
[FR Doc No: 2021-14120]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OECA-2013-0348; FRL-10025-83-OMS]

Information Collection Request Submitted to OMB for Review and
Approval; Comment Request; NESHAP for Primary Aluminum Reduction Plants
(Renewal)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The Environmental Protection Agency (EPA) has submitted an

information collection request (ICR), NESHAP for Primary Aluminum
Reduction Plants (EPA ICR Number 1767.09, OMB Control Number 2060-
0360), to the Office of Management and Budget (OMB) for review and
approval in accordance with the Paperwork Reduction Act. This is a
proposed extension of the ICR, which is currently approved through
August 31, 2021. Public comments were previously requested, via the
Federal Register, on May 12, 2020 during a 60-day comment period. This
notice allows for an additional 30 days for public comments. A fuller
description of the ICR is given below, including its estimated burden
and cost to the public. An agency may neither conduct nor sponsor, and
a person is not required to respond to, a collection of information
unless it displays a currently valid OMB control number.

DATES: Additional comments may be submitted on or before August 2,
2021.

ADDRESSES: Submit your comments, referencing Docket ID Number EPA-HQ-
OECA-2013-0348, online using www.regulations.gov (our preferred
method), or by mail to: EPA Docket Center, Environmental Protection
Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC
20460. 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.
    Submit written comments and recommendations to OMB for the proposed
information collection within 30 days of publication of this notice to
www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under 30-day Review--Open for
Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Patrick Yellin, Monitoring,
Assistance, and Media Programs Division, Office of Compliance, Mail
Code 2227A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax number:
(202) 564-0050; email address<EMAIL_ADDRESS>
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, WJC West,
Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone
number for the Docket Center is<PHONE_NUMBER>. For additional
information about EPA's public docket, visit: http://www.epa.gov/dockets.
    Abstract: Owners and operators of affected facilities are required
to comply with reporting and record keeping requirements for the
General Provisions (40 CFR part 63, subpart A), as well as for the
applicable specific standards in 40 CFR part 63, subpart LL. This
includes submitting initial notifications, performance tests and
periodic reports and results, and maintaining records of the occurrence
and duration of any startup, shutdown, or malfunction in the operation
of an affected facility, or any period during which the monitoring
system is inoperative. These reports are used by EPA to determine
compliance with these standards.
    Form Numbers: None.
    Respondents/affected entities: Primary aluminum production located
at a major source.
    Respondent's obligation to respond: Mandatory (40 CFR part 63,
subpart LL).
    Estimated number of respondents: 8 (total).
    Frequency of response: Initially, annually, and semiannually.
    Total estimated burden: 52,300 hours (per year). Burden is defined
at 5 CFR 1320.3(b).
    Total estimated cost: $6,440,000 (per year), which includes
$310,000 in annualized capital/startup and/or operation & maintenance
costs.
    Changes in the estimates: There is a decrease in burden from the
most-recently approved ICR as currently identified in the OMB Inventory
of Approved Burdens. This increase is not due to any program changes.
The adjustment decrease in burden from the most-recently approved ICR
is due to a decrease in the number of sources. The currently approved
ICR assumed 11 respondents. Consultations with the Aluminum Association
conducted during the renewal of this ICR revealed that there are only
eight primary aluminum reduction plants currently subject to this
subpart. This decrease in the number of respondents has resulted in a
decrease in respondent labor hours. This ICR adjusts the capital cost
from the previously-approved ICR to reflect costs from the October 15,
2015 rule, which were annualized over a 15 year period; the previous
ICR assumed that all capital costs were completed within the first
three years of the 2015 final rule. This ICR also adjusts the operation
and maintenance (O&M) costs from the previous ICR from 1997 dollars to
2019 dollars using the CEPCI CE Index, and includes O&M costs for
annual monitoring from the 2015 final rule that were inadvertently
excluded from the previous ICR. Therefore, this ICR reflects a modest
increase in capital and O&M costs from the most-recently approved ICR.
This ICR also corrects the total number of responses to reflect the
submittal of performance test reports on a semiannual basis, which were
inadvertently excluded from the previous ICR. This ICR, by in large,
reflects the on-going burden and costs for existing facilities.
Activities for existing sources include annual and semiannual
performance tests, continuous monitoring of pollutants, and the
submission of semiannual reports.

Courtney Kerwin,
Director, Regulatory Support Division.
[FR Doc. 2021-14120 Filed 6-30-21; 8:45 am]
BILLING CODE 6560-50-P


Partial Approval and Partial Disapproval of Air Quality State Implementation Plans; Arizona;
           Nonattainment Plan for the Hayden SO2 Nonattainment Area
                                 Proposed Rule
                      (Docket No. EPA-R09-OAR-2020-0109)

Docket Index Table of Contents

A. U.S. EPA Guidance Documents, Policies, and Rulemakings
B. State Plans, Rules, Support Documents, Reports, and Correspondence
C. Additional Documents for Proposed Rulemaking
D. Notices of Proposed Rulemaking and Technical Support Document
E. Public Comments and Related Documents
F. Additional Documents Considered for Final Plan Action
G. Notices of Final Rulemaking, Plan Action

A. U.S. EPA Guidance Documents, Policies, and Rulemakings

 EPA, Applicability of Appendix W Modeling Guidance for the 1-hour SO2 National Ambient Air Quality Standard (August 23, 2010).

 EPA, Guidance for 1-Hour SO2 Nonattainment Area SIP Submissions (April 23, 2014).

 57 FR 13498, State Implementation Plans; General Preamble for the Implementation of Title I of the Clean Air Act Amendments of 1990 (April 16, 1992).

 58 FR 3768, Criteria and Procedures for Determining Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and Projects Funded or Approved Under Title 23 U.S.C or the Federal Transit Act (January 11, 1993).

 75 FR 35520, Primary National Ambient Air Quality Standard for Sulfur Dioxide; Final Rule (June 22, 2010).

 77 FR 66398, Partial Approval and Disapproval of Air Quality Implementation Plans; Arizona; Infrastructure Requirements for Ozone and Fine Particulate Matter (November 5, 2012).

 78 FR 47191, Air Quality Designations for the 2010 Sulfur Dioxide (SO2) Primary National Ambient Air Quality Standard (August 5, 2013).

 80 FR 67319, Revisions to Air Plan; Arizona; Stationary Sources; New Source Review (November 2, 2015).

 81 FR 14736, Findings of Failure to Submit State Implementation Plans Required for Attainment of the 2010 1-Hour Primary Sulfur Dioxide National Ambient Air Quality Standard (NAAQS) (March 18, 2016).

 82 FR 5182, Revisions to the Guidelines on Air Quality Models: Enhancements to the AERMOD Dispersion Modeling System and Incorporation of Approaches to Address Ozone and Fine Particulate Matter (January 17, 2017).

 83 FR 19631, Air Plan Approval; Arizona; Stationary Sources; New Source Review (May 4, 2018).

B. State Plans, Rules, Support Documents, Reports, and Correspondence

 Hayden SO2 Plan Submittal

      B-1a.	Arizona State Implementation Plan Revision: Hayden Sulfur Dioxide Nonattainment Area for the 2010 SO2 NAAQS (March 9, 2017).

      B-1b.	Appendix A  -  Inventory Preparation Plan for the Hayden Sulfur Dioxide Nonattainment Area (March 8, 2017).

      B-1c.	Appendix B  -  Emissions Inventory for the Hayden Sulfur Dioxide Nonattainment Area (March 8, 2017).

      B-1d.	Appendix C  -  Modeling Technical Support Document for the Hayden Sulfur Dioxide (SO2) Nonattainment Area (March 8, 2017).

      B-1e.	Appendix D  -  SIP Regulations  -  Draft Notice of Final Rulemaking  -  Published Notice of Proposed Rulemaking (March 8, 2017).

B-1f.	Appendix E  -  Public Process Documentation (March 8, 2017).

B-1g.	Hayden SO2 SIP Submittal Letter and Authorizing Statutes.

B-1h.	Emission_Inventory_TSD.xlsx.

B-1i.	Exceedance_Risk_Analysis_20170216.xlsm.

B-1j.	Forecast_Emissions_20160927.xlsx.

B-1k.	Limit_Analyzer_20170227.xlsm.

B-1l.	eSIPS Summary Report (March 9, 2017).

B-2.	Hayden Rule R18-2-B1302 Submittal

	B-2a.	Notices of Final Rulemaking for Pb and SO2 Rules (April 7, 2017).

	B-2b.	Appendix A  -  Public Process Documentation (April 6, 2017).

	B-2c.	Authorizing Statutes  -  Pb and SO2 Rules.

      B-2d.	Governor's Regulatory Review Council Certificate of Approval of Final Rules (March 7, 2017).

      B-2e.	Letter dated April 6, 2017, from Timothy S. Franquist, Director, Air Quality Division, ADEQ, to Alexis Strauss, Acting Regional Administrator, EPA Region IX, Subject: "Submittal of the Final Rules for the State Implementation Plans for Hayden Sulfur Dioxide Nonattainment Area, Hayden Lead Nonattainment Area, and Miami Sulfur Dioxide Nonattainment Area (April 6, 2017).

      B-2f.	eSIPS Summary Report (April 6, 2017).

B-3. 	Email dated March 25, 2020, from Farah Mohammadesmaeili, ADEQ, to Rynda Kay, EPA, Subject: "Hayden SO2 SIP Modeling Correction Notes."

C. Additional Documents for Proposed Rulemaking

C-1. 	EPA Region 9 Completeness Checklist (July 12, 2017).

C-2. 	Letter dated July 17, 2017, from Elizabeth J. Adams, Acting Director, Air Division, EPA Region IX, to Timothy S. Franquist, Director, Air Quality Division, ADEQ.

C-3. 	Letter dated September 26, 2017, from Elizabeth J. Adams, Acting Director, Air Division, EPA Region IX, to Timothy S. Franquist, Director, Air Quality Division, ADEQ.

D. Notices of Proposed Rulemaking and Technical Support Document

 85 FR 31118, Partial Approval and Partial Disapproval of Air Quality Implementation Plans; Arizona; Nonattainment Plan for the Hayden SO2 Nonattainment Area (May 22, 2020).

 85 FR 31113, Limited Approval, Limited Disapproval of Arizona Air Plan Revisions, Hayden Area; Sulfur Dioxide Control Measures - Copper Smelters (May 22, 2020).

 "Technical Support Document for the EPA's Rulemaking for the Arizona State Implementation Plan; Arizona Administrative Code, Title 18, Chapter 2, Article 13, Part B  -  Hayden, Arizona, Planning Area, R18-2-B1302  -  Limits on SO2 Emissions from the Hayden Smelter," EPA Region IX, April 2020.

E. Public Comments and Related Documents

[Reserved]

F. Additional Documents Considered for Final Plan Action

[Reserved]

G. Notice of Final Rulemaking

[Reserved]


[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
[Notices]
[Pages 7983-7985]
[FR Doc No: 2020-02809]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2426-227]

California Department of Water Resources and Los Angeles
Department of Water and Power; Notice of Application Tendered for
Filing with the Commission and Establishing Procedural Schedule for
Relicensing and a Deadline for Submission of Final Amendments

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection.
    a. Type of Application: New Major License.
    b. Project No.: 2426-227.
    c. Date filed: January 30, 2020.
    d. Co-Applicants: California Department of Water Resources and Los
Angeles Department of Water and Power.
    e. Name of Project: South SWP Hydropower Project,
    f. Location: Along the West Branch of the California Aqueduct, and
along Piru Creek and Castaic Creek, tributaries to the Santa Clara
River, in Los Angeles County, California. The project currently
occupies 2,790 acres of federal land administered by the U.S.
Department of Agriculture, Forest Service, as part of the Angeles
National Forest and the Los Padres National Forest; and 17 acres of
federal land administered by the U.S. Department of Interior, Bureau of
Land Management.
    g. Filed Pursuant to: Federal Power Act 16 U.S.C. 791 (a)-825(r).
    h. Applicant Contacts: Gwen Knittweis, Chief, Hydropower License
Planning and Compliance Office, California Department of Water
Resources, P.O. Box 924836, Sacramento, California 94236-0001, (916)
557-4554, or<EMAIL_ADDRESS>and Simon Zewdu, Manager of
Strategic Initiatives, Power Planning and Development, Los Angeles
Department of Water and Power, 111 North Hope Street, Room 921, Los
Angeles, CA 90012,<PHONE_NUMBER>, or<EMAIL_ADDRESS>    i. FERC Contact: Kyle Olcott at<PHONE_NUMBER>; or email at
<EMAIL_ADDRESS>    j. This application is not ready for environmental analysis at this
time.
    k. The project consists of two developments: Warne Development and
Castaic Development. The average annual generation of the South SWP
Project from 2007 to 2017 was 304 gigawatt-hours (GWh) at the Warne
powerplant and 379 GWh at the Castaic powerplant.

Warne Development

    The major features of the Warne Development include: (1) Quail
Lake, (2) Lower Quail Canal, (3) Peace Valley pipeline intake
embankment, (4) Peace Valley pipeline, (5) Gorman bypass channel, (6)
the William E. Warne powerplant (Warne powerplant), (7) switchyard, (8)
the transmission line that interconnects Warne powerplant with the
Southern California Edison (SCE) Pastoria-Pardee transmission line, and
(9) appurtenant facilities.
    Quail Lake is a small regulating reservoir along the State Water
Project (SWP) that was created by constructing an embankment along a
sag pond formed by the San Andreas fault. The lake is located 5 miles
southwest of the bifurcation of the East and West branches of the SWP.
Quail Lake has a maximum storage capacity of 8,790 acre-feet and a
surface area of about 290 acres. The Quail Lake outlet into Lower Quail
canal is a double-box culvert structure that passes beneath State
Highway 138. Quail Lake and Lower Quail canal serve as a forebay to
Warne powerplant. The Lower Quail canal has an emergency outflow weir
that is described below, and a spillway is not required for Quail Lake.
    Water released from Quail Lake through the Quail Lake outlet flows
into the 2-mile-long Lower Quail canal. The concrete-lined canal serves
as a conveyance to the Peace Valley pipeline intake and is the forebay
for the Warne powerplant. Lower Quail canal has a bottom width of 24
feet, northern embankment height of approximately 50 feet, southern
embankment height of about 40 feet, and maximum flow capacity of 3,129
cubic feet per second (cfs). The Lower Quail canal storage capacity is
1,150 acre-feet. An ungated emergency overflow weir is located on the
north side of Lower Quail canal. If an unplanned release occurs, water
can be discharged over the ungated weir into a detention basin located
to the west and adjacent to the southernmost section of Lower Quail
Canal.
    The Peace Valley pipeline begins at the Peace Valley pipeline
intake embankment. The Peace Valley pipeline intake embankment is a
zoned earth and rockfill embankment at the downstream end of the Lower
Quail canal. The Peace Valley pipeline intake embankment is 50 feet
tall, with a crest length of 350 feet, and crest elevation of 3,330
feet.
    SWP water flowing from Quail Lake through Lower Quail canal is
routed into the Peace Valley pipeline to Warne powerplant and then to
Pyramid Lake. The Peace Valley pipeline, which has a 12-foot-diameter
and is completely underground, serves as the penstock to the Warne
powerplant. It extends about 5.5 miles from the Peace Valley pipeline
intake structure to the Warne powerplant. In the event of a Peace
Valley pipeline outage or scheduled SWP water releases exceeding the
pipeline's capacity, the water is routed through the Gorman bypass
channel directly into Pyramid Lake.
    The Gorman bypass channel flow capacity is 700 cfs and conveys SWP
water from Lower Quail canal to Pyramid Lake, bypassing the Peace
Valley pipeline and Warne powerplant, when necessary, with an alignment
generally paralleling that of the Peace Valley pipeline. The man-made
channel begins at the Peace Valley pipeline intake embankment and
crosses Interstate 5 about 0.7 mile downstream from the embankment.
Local drainage, if any, drains into the bypass channel near Interstate
5.
    The Warne powerplant, an above-ground, steel-reinforced, concrete
powerhouse, is located at the northern (upstream) end of Pyramid Lake,
at the terminus of the Peace Valley pipeline. The powerplant has two
37.5-MW Pelton-type generating units. Each turbine has a rated head of
650 feet, runner speed of 200 revolutions per minute (rpm), rated
output of 51,000 horsepower (hp), and a rated discharge of 782 cfs. The
total combined flow capacity for the powerplant is 1,564 cfs.
    The project includes a 3-mile-long, single-circuit, 220-kilovolt
(kV) transmission line that connects output from the project through
the Warne switchyard to SCE's Pardee-Pastoria transmission line. The
line is built on steel lattice towers along a 150-foot-wide right-of-
way. The Warne switchyard is located west and immediately adjacent to
the Warne powerplant and contains two generator step-up transformers.

Castaic Development

    The major features of the Castaic Development include: (1) Pyramid
dam, (2) Pyramid Lake, (3) the Angeles tunnel and seven penstocks, (4)
the Castaic powerplant and switchyard, (5) the Elderberry forebay and
dam, (6) storm bypass channel and check dams, (7) the transmission
lines that interconnect Castaic switchyard with the Independent System
Operator power grid, and (8) appurtenant facilities. DWR owns and
operates the facilities above the surge chamber at the southeastern end
of the Angeles tunnel, and LADWP owns and operates the remainder of the
facilities, including the surge chamber.
    Pyramid dam, at the southern end of Pyramid Lake, is a 1,090-foot-
long, 400-foot-high zoned earth and rock fill dam. The crest of the dam
is 35 feet wide with an elevation of 2,606 feet. Water is typically
released from a low-level outlet to an 18-mile-long section of Piru
Creek (Pyramid reach), which extends from Pyramid dam to the NMWSE of
Lake Piru.
    Pyramid dam has two spillways, a gate-controlled spillway, and an
uncontrolled emergency spillway. The gated spillway is controlled by a
single radial gate that measures 40 feet wide by 31 feet tall and
consists of a concrete-lined chute terminating in a flip bucket. The
low-level outlet works use the stream bypass tunnel (diversion tunnel)
used during construction of the dam. This stream release facility is a
15-foot-diameter, concrete-lined tunnel about 1,350 feet long through
the right abutment of the dam and is used for downstream releases to
Pyramid reach. Seepage through the dam is also collected at the toe of
the dam, where it is gaged before being released into Pyramid reach.
The maximum safe, designed release from the low-level outlet of Pyramid
dam to Pyramid reach is 18,000 cfs.
    Pyramid Lake serves as regulated storage for the Castaic
powerplant. At a NMWSE of 2,578 feet, Pyramid Lake has a storage
capacity of 169,902 acre-feet and a usable storage capacity of 22,221
acre-feet. Pyramid Lake also serves as emergency storage for the SWP.
The lake has a normal maximum surface area of approximately 1,300
acres, a shoreline length of approximately 21 miles, and a maximum
depth of approximately 280 feet. Pyramid Lake receives natural inflow
into the west arm of the lake from Piru Creek, and a combination of
natural and SWP water inflows into the north arm of the lake from
Gorman bypass channel and Gorman Creek.
    Angeles tunnel, the principal outlet from Pyramid Lake, supplies
water to the Castaic powerplant in the generating mode and returns
water to the lake from Elderberry forebay when the powerplant is
operating in the pumping mode. Angeles tunnel is 7.2 miles long, has a
diameter of 30 feet, and has a maximum flow capacity of 18,400 cfs.
    The penstock assembly for the six units in the Castaic powerplant
consists of a double trifurcation immediately downstream of the south
portal of Angeles tunnel, a penstock shutoff valve on each branch of
the trifurcations, and six 2,200-foot-long steel penstocks ranging in
diameter from 9 feet to 13.5 feet serving the six powerhouse units
(Unit Nos. 1-6). Unit No. 7 powerplant is served by a 1,900-foot-long
steel penstock ranging in diameter from 7 feet to 9 feet branching from
a Y-connection between the tunnel portal and the main trifurcation.
Combined flow capacity for all seven penstocks is 17,840 cfs.
    The Castaic powerplant, an aboveground/underground, steel-
reinforced, concrete powerhouse, is located on the northern (upstream)
end of Elderberry forebay and is a pump-generating plant with the
ability to pump water back to Pyramid Lake using off-peak energy when
it is economical to do so. Elderberry forebay serves as an afterbay for
the Castaic powerplant while in generating mode and as a forebay while
in pumping mode. Pyramid Lake serves as the upper reservoir for the
powerplant.
    The powerplant has six Francis-type pump-turbine units each with a
rated head of 1,048 feet, a runner speed of 257 rpm, a rated output of
355,000 hp, and an estimated rated discharge of 3,500 cfs. It also has
one Pelton-type pump starting turbine unit with a rated head of 950
feet, a runner speed of 225 rpm, rated output of 69,000 hp, and an
approximate rated discharge of 752 cfs. These seven units have a
combined generating capacity of 1,275 MW with a plant hydraulic
capacity of 17,840 cfs.
    Elderberry forebay dam is a 1,990-foot-long, 200-foot-high zoned
earthfill dam. The crest of the dam is 25 feet wide with an elevation
of 1,550 feet. The outlet tower, located approximately 400 feet
upstream of Elderberry forebay dam, includes: One 5-foot-wide by 6-
foot-high main gate, six 8-foot-wide by 12-foot-high lower gates, two
8-foot-wide by 9-foot-high upper gates, twelve 13-foot-wide by 12-foot-
high storm gates, and one 5-foot-wide by 6-foot-high guard gate. The
outlet tower connects to a 21-foot-diameter conduit that runs under
Elderberry forebay dam and releases water into Castaic Lake (a non-
project facility).
    An overflow weir built into a natural topographic saddle located
approximately 300 feet east of the left abutment of the dam serves as
an uncontrolled emergency spillway. The crest elevation of the overflow
weir is 1,540 feet, with a capacity of at least 12,000 cfs. Elderberry
forebay dam, including this emergency spillway, is the most downstream
project facility.
    Elderberry forebay serves as an afterbay for the Castaic powerplant
when the plant is generating power, and as a forebay when the plant is
pumping water back to Pyramid Lake. The forebay also receives a small
amount of local inflow from Castaic Creek, which enters at the northern
end of the reservoir. The remaining inflow to Elderberry forebay is SWP
water from Pyramid Lake conveyed via the Angeles tunnel. At a NMWSE of
1,530 feet, Elderberry forebay has a storage capacity of 28,231 acre-
feet, a surface area of 500 acres, and a shoreline length of 7 miles.
    The Storm bypass channel is on Castaic Creek above Elderberry
forebay and includes a series of three check-dam basins with a total
area of approximately 21 acres, designed to capture sediment runoff
during high flow events to reduce the accumulation of sediment near the
powerplant and ensure the sustained efficiency of the Castaic
powerplant operation.
    The Castaic switchyard is a fenced switchyard located adjacent to
the powerhouse. An 11.4-mile-long, 230-kV transmission line delivers
energy from the Castaic switchyard to the Haskell Junction substation
and transmits energy to the Castaic powerplant when in the pump-back
operating mode.

Co-Licensees' Proposed Modifications

    In their Final License Application, the co-licensees propose to add
the following facilities to the project license: The existing Quail
Detention Embankment, segments of some existing roads necessary for
project operation and maintenance, and an existing streamflow gage
located on Piru Creek downstream of Pyramid Dam. Additionally, the co-
licensees propose to remove the Warne Transmission Line from the
project license.
    The co-licensees also propose to modify the project boundary to
reduce the amount of land from 6,928 acres to 4,563.8 acres. The
project, as proposed by the licensee, would reduce the amount of
federal land from 2,790 acres to 2,007 acres of federal lands: 1,336
acres administered by the U.S. Department of Agriculture, Forest
Service, as part of the Angeles National Forest; 665 acres administered
by the

U.S. Department of Agriculture, Forest Service, as part of the Los
Padres National Forest; and 6.5 acres administered by the U.S.
Department of the Interior, Bureau of Land Management.
    l. A copy of the application is available for review at the
Commission in the Public Reference Room or may be viewed on the
Commission's website at http://www.ferc.gov using the ``eLibrary''
link. Enter the docket number excluding the last three digits in the
docket number field to access the document. For assistance, contact
FERC Online Support. A copy is also available for inspection and
reproduction at the address in item h above.
    m. You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    n. Procedural schedule and final amendments: The application will
be processed according to the following preliminary schedule. Revisions
to the schedule will be made as appropriate.

------------------------------------------------------------------------
                 Milestone                           Target date
------------------------------------------------------------------------
Notice of Acceptance/Notice of Ready for     April 2020.
 Environmental Analysis.
Filing of recommendations, preliminary       June 2020.
 terms and conditions, and fishway
 prescriptions.
Commission issues Draft EIS................  December 2020.
Comments on Draft Environmental Impact       February 2021.
 Statement (EIS).
Modified terms and conditions..............  April 2021.
Commission issues Final EIS................  July 2021.
------------------------------------------------------------------------

    o. Final amendments to the application must be filed with the
Commission no later than 30 days from the issuance date of the notice
of ready for environmental analysis.

    Dated: February 6, 2020.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2020-02809 Filed 2-11-20; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 83, Number 123 (Tuesday, June 26, 2018)]
[Notices]
[Pages 29840-29841]
[FR Doc No: 2018-13614]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83474; File No. SR-FINRA-2018-025]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Implementation of FINRA Rule 4240
(Margin Requirements for Credit Default Swaps)

June 20, 2018.
    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 11, 2018, the Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I,
II, and III below, which Items have been prepared by FINRA. FINRA has
designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

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

    FINRA is proposing to extend to July 18, 2019 the implementation of
FINRA Rule 4240. FINRA Rule 4240 implements an interim pilot program
with respect to margin requirements for certain transactions in credit
default swaps that are security-based swaps.
    The text of the proposed rule change is available on FINRA's
website at http://www.finra.org, at the principal office of FINRA, and
at the Commission's Public Reference Room.

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

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

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

1. Purpose
    On May 22, 2009, the Commission approved FINRA Rule 4240,\4\ which
implements an interim pilot program (the ``Interim Pilot Program'')
with respect to margin requirements for certain transactions in credit
default swaps (``CDS'').\5\ On June 14, 2017, FINRA filed a proposed
rule change for immediate effectiveness extending the implementation of
FINRA Rule 4240 to July 18, 2018.\6\
---------------------------------------------------------------------------

    \4\ See Securities Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Order Approving File No. SR-
FINRA-2009-012) (``Approval Order'').
    \5\ In March 2012, the SEC approved amendments to FINRA Rule
4240 that, among other things, limit at this time the rule's
application to credit default swaps that are security-based swaps.
See Securities Exchange Act Release No. 66527 (March 7, 2012), 77 FR
14850 (March 13, 2012) (Order Approving File No. SR-FINRA-2012-015).
    \6\ See Securities Exchange Act Release No. 81035 (June 27,
2017), 82 FR 30914 (July 3, 2017) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2017-019).
---------------------------------------------------------------------------

    As explained in the Approval Order, FINRA Rule 4240, coterminous
with certain Commission actions, was intended to address concerns
arising from systemic risk posed by CDS, including, among other things,
risks to the financial system arising from the lack of a central
clearing counterparty to clear and settle CDS.\7\ On July 21, 2010, the
Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-
Frank Act'') was signed into law.\8\ Title VII of the Dodd-Frank Act
established a comprehensive new regulatory framework for swaps and
security-based swaps,\9\ including certain CDS. The legislation was
intended, among other things, to enhance the authority of regulators to
implement new rules designed to reduce risk, increase transparency, and
promote market integrity with respect to such products.
---------------------------------------------------------------------------

    \7\ See Approval Order, 74 FR at 25588-89.
    \8\ See Dodd-Frank Wall Street Reform and Consumer Protection
Act, Public Law 111-203, 124 Stat. 1376 (2010).
    \9\ The terms ``swap'' and ``security-based swap'' are defined
in Sections 721 and 761 of the Dodd-Frank Act. The Commodity Futures
Trading Commission (``CFTC'') and the Commission jointly have
approved rules to further define these terms. See Securities
Exchange Act Release No. 67453 (July 18, 2012), 77 FR 48208 (August
13, 2012) (Joint Final Rule; Interpretations; Request for Comment on
an Interpretation: Further Definition of ``Swap,'' ``Security-Based
Swap,'' and ``Security-Based Swap Agreement''; Mixed Swaps;
Security-Based Swap Agreement Recordkeeping). See also Securities
Exchange Act Release No. 66868 (April 27, 2012), 77 FR 30596 (May
23, 2012) (Joint Final Rule; Joint Interim Final Rule;
Interpretations: Further Definition of ``Swap Dealer,'' ``Security-
Based Swap Dealer,'' ``Major Swap Participant,'' ``Major Security-
Based Swap Participant,'' and ``Eligible Contract Participant'').
---------------------------------------------------------------------------

    The Commission and the CFTC have proposed or adopted rules with
respect to swaps and security-based swaps pursuant to Title VII of the
Dodd-Frank Act.\10\ FINRA believes it is appropriate to extend the
Interim Pilot Program for a limited period, to July 18, 2019, in light
of the continuing development of the CDS business and ongoing
regulatory developments. FINRA is considering proposing additional
amendments to the Interim Pilot Program.
---------------------------------------------------------------------------

    \10\ See, e.g., Securities Exchange Act Release No. 79833
(January 18, 2017), 82 FR 8467 (January 25, 2017) (Order Extending
Certain Temporary Exemptions Under the Securities Exchange Act of
1934 in Connection With the Revision of the Definition of
``Security'' To Encompass Security-Based Swaps and Request for
Comment); Securities Exchange Act Release No. 67177 (June 11, 2012),
77 FR 35625 (June 14, 2012) (Notice of Statement of General Policy
with Request for Public Comment: Statement of General Policy on the
Sequencing of the Compliance Dates for Final Rules Applicable to
Security-Based Swaps Adopted Pursuant to the Securities Exchange Act
of 1934 and the Dodd-Frank Wall Street Reform and Consumer
Protection Act); Securities Exchange Act Release No. 68071 (October
18, 2012), 77 FR 70214 (November 23, 2012) (Proposed Rule: Capital,
Margin, and Segregation Requirements for Security-Based Swap Dealers
and Major Security-Based Swap Participants and Capital Requirements
for Broker-Dealers). See also Securities Exchange Act Release No.
71958 (April 17, 2014), 79 FR 25194 (May 2, 2014) (Proposed Rule:
Recordkeeping and Reporting Requirements for Security-Based Swap
Dealers, Major Security-Based Swap Participants, and Broker-Dealers;
Capital Rule for Certain Security-Based Swap Dealers).
---------------------------------------------------------------------------

    FINRA has filed the proposed rule change for immediate
effectiveness. FINRA is proposing that the implementation date of the
proposed rule change will be July 18, 2018. The proposed rule change
will expire on July 18, 2019.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\11\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change is
consistent with the Act because, in light of the continuing development
of the CDS business and ongoing regulatory developments, extending the
implementation of the margin requirements as set forth by FINRA Rule

4240 will help to stabilize the financial markets.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78o-3(b)(6).
---------------------------------------------------------------------------

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

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA believes that extending
the implementation of FINRA Rule 4240 for a limited period, to July 18,
2019, in light of the continuing development of the CDS business and
ongoing regulatory developments, helps to promote stability in the
financial markets and regulatory certainty for members.

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

    Written comments were neither solicited nor received.

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

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \12\ and Rule 19b-
4(f)(6) thereunder.\13\
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78s(b)(3)(A).
    \13\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-FINRA-2018-025 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-FINRA-2018-025. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
p.m. Copies of such filing also will be available for inspection and
copying at the principal office of FINRA. All comments received will be
posted without change. Persons submitting comments are cautioned that
we do not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
FINRA-2018-025 and should be submitted on or before July 17, 2018.

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

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

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-13614 Filed 6-25-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 77, Number 166 (Monday, August 27, 2012)]
[Notices]
[Pages 51837-51839]
[FR Doc No: 2012-20971]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67702; File No. SR-NYSEMKT-2012-43]

Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change Amending the NYSE Amex
Options LLC Limited Liability Company Agreement To Eliminate Certain
Restrictions Relating to the Qualification of Founding Firm Advisory
Committee Members

August 21, 2012.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (the ``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby
given that on August 17, 2012, NYSE MKT LLC (the ``Exchange'' or ``NYSE
MKT'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C.78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

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

    The Exchange proposes to amend the NYSE Amex Options LLC (``NYSE
Amex Options'') Limited Liability Company Agreement (``LLC Agreement'')
to eliminate certain restrictions relating to the qualification of
Founding Firm Advisory Committee Members. The text of the proposed rule
change is available on the Exchange's Web site at www.nyse.com, at the
principal office of the Exchange, on the Commission's Web site at
www.sec.gov, and at the Commission's Public Reference Room.

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

    In its filing with the Commission, the self-regulatory organization
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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to amend the LLC Agreement to eliminate
certain restrictions relating to the qualification of Founding Firm \4\
Advisory Committee (``Advisory Committee'') Members. The LLC Agreement
is the source of NYSE Amex Options' governance and operating authority
and, therefore, functions in a similar manner as articles of
incorporation and by-laws function

for a corporation.\5\ The Founding Firm Advisory Committee is comprised
of natural persons (each, an ``Advisory Committee Member'') who provide
advice to the Board.\6\ The Board considers such advice but is not
bound by it.\7\
---------------------------------------------------------------------------

    \4\ Founding Firm means each of the Initial Members (NYSE MKT,
Goldman, Sachs & Co., Citadel Securities LLC, Banc of America
Strategic Investments Corporation, Citigroup Financial Strategies,
Inc., Datek Online Management Corp., UBS Americas Inc., and Barclays
Electronic Commerce Holdings Inc.) other than NYSE MKT and any
permitted transferee(s) of such Initial Member, (ii) any required
transferee deemed to be a Founding Firm by the Board of NYSE Amex
Options, and (iii) any other Member (a person who is a signatory to
the LLC Agreement, other than NYSE Euronext, or who has been
admitted to NYSE Amex Options as a Member in accordance with the LLC
Agreement and has not ceased to be a Member in accordance with the
LLC Agreement or for any other reason), other than NYSE MKT, deemed
to be a Founding Firm by the Board of NYSE Amex Options. See LLC
Agreement, Section 1.1.
    \5\ See Securities Exchange Act Release No. 64144 (March 29,
2011), 76 FR 18591 (April 4, 2011) (SR-NYSEAmex-2011-18) (approving
the formation of a joint venture between the Exchange, its ultimate
parent NYSE Euronext, and seven other entities to operate an
electronic trading facility for options contracts).
    \6\ See LLC Agreement, Section 8.3(a).
    \7\ Id.
---------------------------------------------------------------------------

    Currently, Section 8.3(d) of the LLC Agreement provides that each
Founding Firm, prior to designating an individual to the Advisory
Committee, shall certify in writing to the Board that such individual
is not then a director (or an alternate director or observer to the
board or any committee of the board), officer, or employee of a
Specified Entity; \8\ in the event an individual designated to the
Advisory Committee becomes a member of the board of directors or
similar governing body of a Specified Entity, such individual shall
immediately cease to be an Advisory Committee Member.
---------------------------------------------------------------------------

    \8\ Specified Entity means, as of any date, (i) any U.S.
securities option exchange (or facility thereof) or U.S. alternative
trading system on which securities option contracts are executed
(other than NYSE Amex Options or any of its Affiliates) that lists
for trading any option contract that competes with a product or a
contract that is contemplated by the then-current business plan of
NYSE Amex Options to be listed for trading by the Exchange within
ninety (90) days of such date, (ii) any person that owns or controls
a U.S. securities option exchange or U.S. alternative trading system
described in clause (i), and (iii) any affiliate of a person
described in clause (i) or (ii) above; provided that, in the event
of a change in applicable law permitting the execution of
transactions in exchange-listed securities options otherwise than on
a national securities exchange or facility thereof (including, but
not limited to, internalization of orders for exchange-listed
securities options or the execution of such orders on an alternative
trading system), (x) a system operated by or on behalf of a Founding
Firm or its affiliates for purposes of the internalization or
crossing of: (i) Orders of customers of such Founding Firm or its
affiliates, (ii) orders of such Founding Firm or its affiliates or
(iii) orders routed from a retail broker-dealer or retail brokerage
unit, shall not be considered a Specified Entity and (y) in addition
to the matters covered in clause (x), NYSE Amex Options and the
Founding Firms will negotiate in good faith the terms of an
exception from the definition of Specified Entity for any
alternative trading system owned solely by an individual Founding
Firm or its affiliates that performs order crossing in a manner that
does not substantially compete with the Exchange in terms of market
share and other relevant factors. See LLC Agreement, Section 1.1.
---------------------------------------------------------------------------

    The Excange proposes to amend the LLC Agreement to remove the
restrictions that an individual who serves on the Advisory Committee
cannot then be or later become a director (or alternate director or
observer to the board or any committee of the board) of a Specified
Entity.\9\ The Exchange believes that the Advisory Committee should not
exclude individuals with certain affiliations with Specified Entities
because Advisory Committee Members have no formal authority over NYSE
Amex Options and only provide non-binding advice to the Board.
Moreover, the Board determines which matters are referred to the
Advisory Committee and may choose, if necessary and in light of the
affiliations of Advisory Committee Members, not to seek its advice on
sensitive competitive issues.\10\ As such, the Exchange believes that
proposed rule change would not create a significant conflict of
interest for Advisory Committee Members. In addition, the Exchange
believes that the current restrictions unnecessarily limit the pool of
qualified candidates, and the Exchange could benefit from the advice
and industry knowledge provided by Advisory Committee Members that are
affiliated with Specified Entities.
---------------------------------------------------------------------------

    \9\ The restriction would continue to apply to officers and
employees of Specified Entities.
    \10\ The Exchange does not propose to change the qualification
for directors and alternates of the Board of NYSE Amex Options,
which similarly restricts certain affiliations with Specified
Entities. See LLC Agreement, Section 8.1(h).
---------------------------------------------------------------------------

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (the
``Act''),\11\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\12\ in particular, in that it is designed to
prevent fraudulent and manipulative acts and practices, to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in regulating, clearing, settling,
processing information with respect to, and facilitating transactions
in securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general, to
protect investors and the public interest.
---------------------------------------------------------------------------

    \11\ 15 U.S.C. 78f(b).
    \12\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    Specifically, the Exchange believes the proposed rule change would
expand the pool of candidates eligible for membership on the Advisory
Committee and thereby increase the breadth of industry knowledge that
will be available to it without creating any conflicts of interest that
cannot be appropriately managed, which benefits the public interest.
The increased representation of different constituencies on the
Advisory Committee also would foster cooperation and coordination with
persons engaged in facilitating transactions in securities, contribute
to the identification of opportunities for innovation, and enhance
competition.

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

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

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \13\ and Rule 19b-4(f)(6) thereunder.\14\
Because the proposed rule change does not: (i) Significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \15\ and Rule 19b-
4(f)(6)(iii) thereunder.\16\
---------------------------------------------------------------------------

    \13\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \14\ 17 CFR 240.19b-4(f)(6).
    \15\ 15 U.S.C. 78s(b)(3)(A).
    \16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule

change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File No. SR-NYSEMKT-2012-43 on the subject line.

Paper Comments

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

All submissions should refer to File No. SR-NYSEMKT-2012-43. 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 the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File No. SR-NYSEMKT-2012-43 and should be
submitted on or before September 17, 2012.
---------------------------------------------------------------------------

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

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\17\
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-20971 Filed 8-24-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 82, Number 89 (Wednesday, May 10, 2017)]
[Notices]
[Pages 21850-21854]
[FR Doc No: 2017-09459]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80605; File Nos. SR-DTC-2017-802; SR-NSCC-2017-802]

Self-Regulatory Organizations; The Depository Trust Company;
National Securities Clearing Corporation; Notice of Filing of and No
Objection To Advance Notices, as Modified by Amendments No. 1, To Renew
the Credit Facility

May 5, 2017.
    Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act entitled the Payment,
Clearing, and Settlement Supervision Act of 2010 (``Clearing
Supervision Act'') \1\ and Rule 19b-4(n)(1)(i) under the Securities
Exchange Act of 1934 (``Act''),\2\ notice is hereby given that on April
4, 2017 The Depository Trust Company (``DTC'') and National Securities
Clearing Corporation (``NSCC,'' together with DTC, ``Clearing
Agencies'') filed with the Securities and Exchange Commission
(``Commission'') the advance notices SR-DTC-2017-802 and SR-NSCC-2017-
802. On May 1, 2017, the Clearing Agencies filed Amendments No. 1 to
the advance notices.\3\ The advance notices, as modified by Amendments
No. 1 (hereinafter, collectively ``Advance Notices''), are described in
Items I, II and III below, which Items have been prepared primarily by
the Clearing Agencies. The Commission is publishing this notice to
solicit comments on the Advance Notices from interested persons and
providing notice that the Commission does not object to the Advance
Notices.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 5465(e)(1).
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ In Amendments No. 1 to the advance notices, the Clearing
Agencies request Commission approval to (i) accept $14.075 billion
in aggregate commitments for this year's facility, and (ii) clarify
that for future renewals of the credit facility, the Clearing
Agencies may accept, not just seek, an aggregate commitment amount
within 15 percent of $14 billion, as discussed below.
---------------------------------------------------------------------------

I. Clearing Agencies' Statement of the Terms of Substance of the
Advance Notices

    These Advance Notices are filed by the Clearing Agencies in
connection with their proposals to (1) renew (``Renewal'') their 364-
day committed revolving credit facility (``Credit Facility''),
described below, and (2) make annual renewals of the Credit Facility on
substantially similar terms and conditions (``Future Renewals''), also
described below, as described in greater detail below.\4\
---------------------------------------------------------------------------

    \4\ Terms not defined herein are defined in the Terms not
defined herein are defined in the Rules, By-Laws and Organization
Certificate of DTC, available at http://www.dtcc.com/~/media/Files/
Downloads/legal/rules/dtc_rules.pdf; or Rules and Procedures of NSCC
(``Rules''), available at http://www.dtcc.com/~/media/Files/
Downloads/legal/rules/nscc_rules.pdf.
---------------------------------------------------------------------------

II. Clearing Agencies' Statement of the Purpose of, and Statutory Basis
for, the Advance Notices

    In their filings with the Commission, the Clearing Agencies
included statements concerning the purpose of and basis for the Advance
Notices and discussed any comments they received on the Advance
Notices. The text of these statements may be examined at the places
specified in Item IV below. The Clearing Agencies have prepared
summaries, set forth in sections A and B below, of the most significant
aspects of such statements.

(A) Clearing Agencies' Statement on Comments on the Advance Notices
Received From Members, Participants, or Others

    The Clearing Agencies have not solicited or received any written
comments relating to these proposals. The Clearing Agencies will notify
the Commission of any written comments received by the Clearing
Agencies.

(B) Advance Notices Filed Pursuant to Section 806(e) of the Payment,
Clearing and Settlement Supervision Act

Description of the Proposals
    Renewal. As part of their liquidity risk management regime, the
Clearing Agencies maintain a 364-day committed revolving line of credit
with a syndicate of commercial lenders, which is renewed every year.
The terms and conditions of the current Renewal would be specified in
the Sixteenth Amended and Restated Revolving Credit Agreement, to be
dated as of May 9, 2017 (``Renewal Agreement''), among the Clearing
Agencies,\5\ the lenders party thereto, the administrative agent and
the collateral agent. Such terms and conditions are substantially the
same as the terms and conditions of the existing credit agreement,
dated as of May 10, 2016, as heretofore amended (``Existing
Agreement''),\6\ except that pricing \7\ and the amount of the
aggregate commitment for NSCC may change. The substantive terms of the
Renewal Agreement are set forth in the Summary of Indicative Principal
Terms and Conditions, dated March 30, 2017, which is not a public
document. The aggregate commitments being sought under the Renewal
would be for an amount up to $14 billion for NSCC and DTC together, of
which all but $1.9 billion commitment would be the

aggregate commitment to NSCC as borrower, as provided in the Existing
Agreement; however, the Clearing Agencies may, subject to obtaining all
proper internal approvals, accept aggregate commitments under the
Renewal up to $14.075 billion.
---------------------------------------------------------------------------

    \5\ The Renewal Agreement would provide for both DTC and NSCC as
borrowers, with an aggregate commitment of $1.9 billion for DTC and
the amount of any excess aggregate commitment for NSCC. The
borrowers are not jointly and severally liable and each lender has a
ratable commitment to each borrower. DTC and NSCC provide separate
collateral to secure their respective borrowings.
    \6\ See Securities Exchange Act Release No. 77750 (April 29,
2016), 81 FR 27181 (May 5, 2016) (SR-DTC-2017-801; SR-NSCC-2016-
801).
    \7\ ``Pricing'' of the Credit Facility refers to the charges and
fees owed by the borrowers to the agents and lenders thereto with
respect to the services performed by the agents, the commitment to
lend and the rate of interest applicable to any borrowing under the
Credit Facility, among other such matters.
---------------------------------------------------------------------------

    Future Renewals. The Clearing Agencies expect to continue to renew
the Credit Facility annually on substantially similar terms and
conditions as the Renewal. The terms and conditions of all Future
Renewals would be specified in subsequent credit agreements among the
Clearing Agencies, the lenders party thereto, the administrative agent
and the collateral agent.
    In connection with all Future Renewals, the Clearing Agencies would
not make changes to (a) the amount of aggregate commitment being sought
for or accepted by DTC, which would continue to be $1.9 billion; (b)
the financial institution acting as administrative agent; or (c) the
commitment period, which would continue to be for 364 days.
    However, in connection with all Future Renewals, the Clearing
Agencies may consider changes to (1) the amount of aggregate commitment
being sought for and accepted by NSCC, so long as such amounts do not
vary more than 15 percent either above or below the amount of aggregate
commitment being sought by NSCC under the Renewal being proposed by
this Advance Notice, which would be no less than $10.285 billion and no
more than $13.915 billion; \8\ (2) the syndicate, so long as all
lenders party to future Credit Facilities are subject to the same
credit review as those lenders party to the Renewal; (3) pricing and
collateral haircuts,\9\ so long as such terms are consistent with the
then current market practice; or (4) representations, warranties,
covenants, and terms of events of default,\10\ so long as any
modifications are immaterial to the Clearing Agencies as a borrower and
do not impair the Clearing Agencies' ability to borrow under the line
of credit. The Clearing Agencies would not consider such changes as
materially altering the terms and conditions of the Credit Facility.
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    \8\ NSCC believes that, given the average size of the
commitments for NSCC in past Credit Facilities, a difference of no
more than 15 percent, either above or below the aggregate NSCC
commitment of the Renewal would not be a material change.
    \9\ ``Collateral haircuts'' with respect to the collateral for
any borrowing under the Credit Facility refers to the schedule of
percentages of market value, by type of collateral, determining the
collateral value of that type of collateral, for purposes of
securing a borrowing under the Credit Facility.
    \10\ ``Events of default'' under the Credit Facility refers to
those events or conditions which trigger or constitute a default of
the borrowers under the agreement (e.g., a breach of terms or
conditions or a failure to perform an obligation).
---------------------------------------------------------------------------

    So long as the Clearing Agencies do not make changes to the terms
described in items (a), (b), and (c) above in any Future Renewal, and
so long as any Future Renewal adheres to the conditions described in
items (1) through (4) above, the Clearing Agencies would consider such
Future Renewal as being on substantially the same terms and conditions
as the Renewal and predecessor agreements such that it would not need
to be subject to the requirement to file an advance notice filing
pursuant to Section 806(e)(1) of the Clearing Supervision Act.\11\ In
the event that any annual renewal of the Credit Facility is not on
terms and conditions that are substantially similar to the Renewal, as
specified in the paragraphs above, such renewal would be subject to an
advance notice filing pursuant to Section 806(e)(1) of the Clearing
Supervision Act. If the Clearing Agencies determine to address future
renewals in such filing, it would include in that filing the proposed
conditions to the terms of any subsequent renewals.
---------------------------------------------------------------------------

    \11\ 12 U.S.C. 5465(e)(1).
---------------------------------------------------------------------------

Expected Effect on Risks to the Clearing Agencies, Their Participants
and the Market
    The Renewal and Future Renewals would continue to promote the
reduction of liquidity risk to the Clearing Agencies, DTC's
Participants, NSCC's Members (collectively, ``Members''), and the
securities market in general because they would help the Clearing
Agencies maintain sufficient liquidity resources to timely meet their
settlement obligations with a high degree of confidence. The Renewal
Agreement and its substantially similar predecessor agreements have
been in place since the introduction of same day funds settlement at
the Clearing Agencies, and the Clearing Agencies expect to continue to
renew the Credit Facility annually pursuant to Future Renewals.
Management of Identified Risks
    The Clearing Agencies require same day liquidity resources to cover
the failure-to-settle of their Member, or affiliated family of Members,
with the largest aggregate liquidity exposure. If a Member defaults on
its end-of-day net settlement obligation, the Clearing Agencies may
borrow under the Credit Facility to enable them, if necessary, to fund
settlement among non-defaulting Members, including settlement of
guaranteed trades due to settle. Any NSCC borrowing would be secured
principally by (i) securities deposited by NSCC Members in NSCC's
Clearing Fund \12\ (i.e., the Eligible Clearing Fund Securities, as
defined in NSCC's Rules, pledged by Members to NSCC in lieu of cash
Clearing Fund deposits) and (ii) securities cleared through NSCC's
Continuous Net Settlement System that were intended for delivery to the
defaulting Member upon payment of its net settlement obligation. In
addition to the Credit Facility and the Clearing Fund, NSCC has
diversified its liquidity resources by implementing a commercial paper
and extendible-term note facility.\13\ Any DTC borrowing would be
secured principally by (i) securities that were intended to be
delivered to the defaulting DTC Participant upon payment of its net
settlement obligation and (ii) securities previously designated by the
defaulting Participant as collateral.
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    \12\ NSCC's Clearing Fund (which operates as its default fund)
addresses potential exposure through a number of risk-based
component charges calculated and assessed daily and includes
additional liquidity deposits by certain NSCC Members pursuant to
NSCC's Supplemental Liquidity Deposits rule (NSCC's Rule 4(A)).
Supra, note 3.
    \13\ See Securities Exchange Act Release No. 75730 (August 19,
2015), 80 FR 51638 (August 25, 2015) (SR-NSCC-2015-802).
---------------------------------------------------------------------------

    As integral parts of NSCC's risk management structure, the Credit
Facility, the commercial paper and extendible-term note facility, and
the Clearing Fund, together, provide NSCC liquidity to complete end-of-
day net funds settlement.
    The Credit Facility is built into DTC's primary risk management
controls, the Net Debit Cap \14\ and Collateral Monitor,\15\ which
together require that

the end-of-day net funds settlement obligation of a DTC Participant
cannot exceed DTC's liquidity resources and is fully collateralized.
---------------------------------------------------------------------------

    \14\ The Net Debit Cap risk control is designed so that DTC may
complete settlement among non-defaulting DTC Participants, even if
the Participant or affiliated family of Participants with the
largest settlement obligation that day fails to settle. Before
completing a transaction in which a Participant is the receiver, DTC
calculates the effect the transaction would have on such
Participant's Settlement Account, and determines whether any
resulting Net Debit Balance would exceed the Participant's Net Debit
Cap. Any transaction that would cause the Net Debit Balance to
exceed the Net Debit Cap is placed on a pending (recycling) queue
until the Net Debit Cap will not be exceeded by processing the
transaction.
    \15\ DTC tracks Collateral in a DTC Participant's account
through the Collateral Monitor. At all times, the Collateral Monitor
reflects the amount by which the Collateral Value in the account
exceeds the Net Debit Balance in the account. When processing a
transaction, DTC verifies that the Collateral Monitor of each of the
deliverer and receiver will not become negative when the transaction
is processed. If the transaction would cause either party's
Settlement Account to have insufficient collateral to support its
net settlement obligation, the transaction will recycle until the
deficient account has sufficient Collateral to proceed or until the
applicable cutoff time occurs.
---------------------------------------------------------------------------

    The Credit Facility is a cornerstone of the Clearing Agencies' risk
management and both the Renewal and Future Renewals are critical to the
Clearing Agencies' risk management infrastructure. Because the Renewal
would preserve substantially similar terms and conditions to the
Existing Agreement, and Future Renewals would preserve substantially
similar terms and conditions to the Renewal Agreement, the Clearing
Agencies believe that the Renewal and Future Renewals would not
otherwise affect or alter the management of risk at the Clearing
Agencies.
Consistency With the Clearing Supervision Act
    The Clearing Agencies believe the Renewal and Future Renewals are
consistent with Section 805(b) of the Clearing Supervision Act.\16\ The
objectives and principles of Section 805(b) of the Clearing Supervision
Act are the promotion of robust risk management, promotion of safety
and soundness, reduction of systemic risks, and support of the
stability of the broader financial system.\17\ The Clearing Agencies
believe that the Renewal and Future Renewals would promote these
objectives and principles because they would provide the Clearing
Agencies with a continuing source of committed liquidity to meet its
settlement obligations and thus mitigate the Clearing Agencies'
liquidity risk. Therefore, the Clearing Agencies believe the Renewal
and Future Renewals are consistent with Section 805(b) of the Clearing
Supervision Act.\18\
---------------------------------------------------------------------------

    \16\ 12 U.S.C. 5464(b).
    \17\ Id.
    \18\ Id.
---------------------------------------------------------------------------

    The Clearing Agencies believe the Renewal and Future Renewals are
also consistent with Rule 17Ad-22(b)(3),\19\ Rule 17Ad-22(d)(11),\20\
and Rule 17Ad-22(e)(7) under the Act.\21\
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    \19\ 17 CFR 240.17Ad-22(b)(3).
    \20\ 17 CFR 240.17Ad-22(d)(11).
    \21\ 17 CFR 240.17Ad-22(e)(7). The Commission adopted amendments
to Rule 17Ad-22, including the addition of new section 17Ad-22(e),
on September 28, 2016. See Securities Exchange Act Release No. 78961
(September 28, 2016), 81 FR 70786 (October 13, 2016) (S7-03-14).
NSCC and DTC are ``covered clearing agencies'' as defined by new
Rule 17Ad-22(a)(5) and must comply with new subsection (e) of Rule
17Ad-22 by April 11, 2017.
---------------------------------------------------------------------------

    Rule 17Ad-22(b)(3) requires, in part, that central counterparties,
like NSCC, to ``establish, implement, maintain and enforce written
policies and procedures reasonably designed to . . . [m]aintain
sufficient financial resources to withstand, at a minimum, a default by
the participant family to which it has the largest exposure in extreme
but plausible market conditions . . . .'' \22\ NSCC believes that the
Renewal and Future Renewals are consistent with Rule 17Ad-22(b)(3)
because they would help NSCC maintain sufficient financial resources to
withstand, at a minimum, a default by a NSCC Member to which NSCC has
the largest exposure.\23\
---------------------------------------------------------------------------

    \22\ 17 CFR 240.17Ad-22(b)(3).
    \23\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(d)(11) \24\ requires that the Clearing Agencies,
``establish, implement, maintain and enforce written policies and
procedures reasonably designed to, as applicable . . . establish
default procedures that ensure that the clearing agency can take timely
action to contain losses and liquidity pressures and to continue
meeting its obligations in the event of a participant default.'' The
Clearing Agencies believe the Renewal and Future Renewals are
consistent with Rule 17Ad-22(d)(11) \25\ because they would provide the
Clearing Agencies with a readily available liquidity resource that
would enable the Clearing Agencies to continue to meet its obligations
in a timely fashion, in the event of a Member default, thereby helping
to contain losses and liquidity pressures from that default.
---------------------------------------------------------------------------

    \24\ 17 CFR 240.17Ad-22(d)(11).
    \25\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7), which was recently adopted by the Commission,
will require, in part, that the Clearing Agencies ``effectively
measure, monitor, and manage the liquidity risk that arises in or is
borne by [it], including measuring, monitoring, and managing its
settlement and funding flows on an ongoing and timely basis, and its
use of intraday liquidity by . . . [m]aintaining sufficient liquid
resources at the minimum in all relevant currencies to effect same-day
. . . settlement of payment obligations with a high degree of
confidence under a wide range of foreseeable stress scenarios that
includes, but is not limited to, the default of the participant family
that would generate the largest aggregate payment of obligation for
[each Clearing Agency] in extreme but plausible conditions.'' \26\ The
Renewal and Future Renewals would provide NSCC with an additional
liquidity resource that, together with its other sources of liquidity,
including the Clearing Fund and the commercial paper and extendible-
term note facility, can be used to complete end of day money settlement
in the event a failure of a Member, including the failure of the
participant family that would generate the largest aggregate payment of
obligation for NSCC in extreme but plausible conditions. The Renewal
and Future Renewals would provide DTC with an additional liquidity
resource to enable it to complete system-wide settlement
notwithstanding the failure-to-settle of a Participant or affiliated
family of Participants with the largest net settlement obligation. In
this way, the Renewal and Future Renewals are consistent with Rule
17Ad-22(e)(7).\27\
---------------------------------------------------------------------------

    \26\ 17 CFR 240.17Ad-22(e)(7).
    \27\ Id.
---------------------------------------------------------------------------

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

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

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the Advance
Notices are consistent with the Clearing Supervision Act. Comments may
be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-DTC-2017-802 or SR-NSCC-2017-802 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2017-802 or SR-NSCC-
2017-802. One of these file numbers should be included on the subject
line if email is used. To help the Commission process and review your
comments more efficiently, please use only one method. The Commission
will post all comments on the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent
amendments, all written statements with respect to the Advance Notices
that are filed with the Commission, and all written communications
relating to the Advance Notices between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE., Washington, DC 20549 on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filings also will be
available for inspection and copying at the principal office of the
Clearing Agencies and on DTCC's Web site (http://dtcc.com/legal/sec-rule-filings.aspx). All comments received will be posted without
change; the Commission does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly. All submissions should refer to File Number
SR-DTC-2017-802 or SR-NSCC-2017-802 and should be submitted on or
before May 31, 2017.

V. Commission Findings and Notice of No Objection

    Although the Clearing Supervision Act does not specify a standard
of review for an advance notice, its stated purpose is instructive: To
mitigate systemic risk in the financial system and promote financial
stability by, among other things, promoting uniform risk management
standards for systemically important financial market utilities and
strengthening the liquidity of systemically important financial market
utilities.\28\ Section 805(a)(2) of the Clearing Supervision Act \29\
authorizes the Commission to prescribe risk management standards for
the payment, clearing, and settlement activities of designated clearing
entities and financial institutions engaged in designated activities
for which it is the supervisory agency or the appropriate financial
regulator. Section 805(b) of the Clearing Supervision Act \30\ states
that the objectives and principles for the risk management standards
prescribed under Section 805(a) shall be to:
---------------------------------------------------------------------------

    \28\ 12 U.S.C. 5461(b).
    \29\ 12 U.S.C. 5464(a)(2).
    \30\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

     Promote robust risk management;
     promote safety and soundness;
     reduce systemic risks; and
     support the stability of the broader financial system.\31\
---------------------------------------------------------------------------

    \31\ Id.
---------------------------------------------------------------------------

    The Commission has adopted risk management standards under Section
805(a)(2) of the Act \32\ and Section 17A of the Act (``Rule 17Ad-
22'').\33\ The Rule 17Ad-22 requires registered clearing agencies to
establish, implement, maintain, and enforce written policies and
procedures that are reasonably designed to meet certain minimum
requirements for their operations and risk management practices on an
ongoing basis.\34\ Therefore, it is appropriate for the Commission to
review changes proposed in advance notices against Rule 17Ad-22 and the
objectives and principles of these risk management standards as
described in Section 805(b) of the Clearing Supervision Act.\35\ The
Commission believes the proposal in the Advance Notices is consistent
with the objectives and principles described in Section 805(b) of the
Act,\36\ and in Rule17Ad-22, in particular, Rule 17Ad-22(e)(7) under
the Act.\37\
---------------------------------------------------------------------------

    \32\ 12 U.S.C. 5464(a)(2).
    \33\ See 17 CFR 240.17Ad-22.
    \34\ Id.
    \35\ 12 U.S.C. 5464(b).
    \36\ Id.
    \37\ 17 CFR 240.17Ad-22(e)(7).
---------------------------------------------------------------------------

A. Consistency With Section 805(b) of the Clearing Supervision Act

    As discussed below, the Commission believes that the changes
proposed in the Advance Notice are consistent with Section 805(b) of
the Clearing Supervision Act because they (i) promote robust risk
management; (ii) are consistent with promoting safety and soundness;
and (iii) are consistent with reducing systemic risks and promoting the
stability of the broader financial system.
    The Commission believes that the changes proposed in the Advance
Notices are consistent with promoting robust risk management, in
particular management of liquidity risk presented to the Clearing
Agencies. Renewing and maintaining the currently proposed credit
facility in the manner proposed by the Clearing Agencies would
diversify the liquidity resources that the Clearing Agencies may use to
resolve a Member default. Additionally, allowing the Clearing Agencies
annually to renew the credit facility under certain specified
circumstances without an additional advance notice, subject to the
specific conditions described above (the ``Evergreen'' provisions),
would provide the Clearing Agencies and market participants with
greater certainty regarding a continuing source of committed liquidity
to meet its settlement obligations and thus mitigate the Clearing
Agencies' liquidity risk. Further, because the Evergreen provisions
would ensure that any such annual renewals would be substantially
similar to the currently proposed credit facility, the Commission
believes that any such renewals would promote robust risk management by
diversifying the liquidity resources that the Clearing Agencies may use
to resolve a Member default in the same manner as the currently
proposed credit facility. As such, the Commission believes that the
proposal would promote robust risk management practices at the Clearing
Agencies, consistent with Section 805(b) of the Clearing Supervision
Act.\38\
---------------------------------------------------------------------------

    \38\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

    The Commission also believes that the changes proposed in the
Advance Notices are consistent with promoting safety and soundness. As
described above, the currently proposed credit facility would provide
the Clearing Agencies with an additional liquidity resource in the
event of a Member default. This liquidity would promote safety and
soundness for Members because it would provide the Clearing Agencies
with a readily available liquidity resource that would enable them to
continue to meet their respective obligations in a timely fashion in
the event of a Member default, thereby helping to contain losses and
liquidity pressures from that default. Because the Evergreen provisions
would ensure that any annual renewals implemented without filing an
advance notice would be substantially similar to the currently proposed
credit facility, any such annual renewals would promote safety

and soundness for the same reasons. As such, the Commission believes it
is consistent with promoting safety and soundness as contemplated in
Section 805(b) of the Clearing Supervision Act.\39\
---------------------------------------------------------------------------

    \39\ Id.
---------------------------------------------------------------------------

    In addition, the Commission believes that the proposal contained in
the Advance Notices is consistent with reducing systemic risks and
promoting the stability of the broader financial system. As mentioned
above, allowing the Clearing Agencies to enter into the currently
proposed credit facility would enable the Clearing Agencies, each of
which has been designated a systemically important financial market
utility,\40\ to maintain an additional liquidity resource that the
Clearing Agencies may access to help manage a Member default. In
addition, because the Evergreen provisions would ensure that any annual
renewals entered into without filing an advance notice would be on
substantially similar terms to the currently proposed credit facility,
such future renewals also would enable the Clearing Agencies to
maintain an additional liquidity resource that the Clearing Agencies
may access to help manage a Member default. Moreover, allowing the
annual renewal of the credit facility under the proposed Evergreen
provisions without filing an additional advance notice would reduce the
risk of gaps in availability of this liquidity resource. Further,
allowing renewal without an advance notice in these specific
circumstances would also provide heightened certainty and stability for
the Clearing Agencies and market participants regarding the
availability of this liquidity risk management resource on an ongoing
basis. Accordingly, the Commission believes that the proposal would
help to reduce the systemic risk of the Clearing Agencies, which in
turn would help to support the stability of the broader financial
system, consistent with Section 805(b) of the Clearing Supervision Act
\41\
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    \40\ The Financial Stability Oversight Council designated NSCC a
systemically important financial market utility on July 18, 2012.
See Financial Stability Oversight Council 2012 Annual Report,
Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf.
    \41\ Id.
---------------------------------------------------------------------------

B. Consistency With Rule 17Ad-22(e)(7)

    The Commission believes that the changes proposed by the Advance
Notices are consistent with the requirements of Rules 17Ad-22(e)(7)
under the Act.\42\ Rule 17Ad-22(e)(7) requires the Clearing Agencies to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to effectively measure, monitor, and
manage liquidity risk that arises in or is borne by the Clearing
Agencies, including measuring, monitoring, and managing its settlement
and funding flows on an ongoing and timely basis, and its use of
intraday liquidity, as specified in the rule.\43\
---------------------------------------------------------------------------

    \42\ 17 CFR 240.17Ad-22(e)(7).
    \43\ Id.
---------------------------------------------------------------------------

    In particular, Rule 17Ad-22(e)(7)(i) under the Act \44\ requires
that registered clearing agencies to establish, implement, maintain and
enforce written policies and procedures reasonably designed to
``effectively measure, monitor, and manage the liquidity risk that
arises in or is borne by [it], including measuring, monitoring, and
managing its settlement and funding flows on an ongoing and timely
basis, and its use of intraday liquidity by . . . [m]aintaining
sufficient liquid resources at the minimum in all relevant currencies
to effect same-day . . . settlement of payment obligations with a high
degree of confidence under a wide range of foreseeable stress scenarios
that includes, but is not limited to, the default of the participant
family that would generate the largest aggregate payment of obligation
for [each Clearing Agency] in extreme but plausible conditions.''
---------------------------------------------------------------------------

    \44\ 17 CFR 240.17Ad-22(e)(7)(i).
---------------------------------------------------------------------------

    As described above, the currently proposed credit facility would
provide the Clearing Agencies with a readily available liquidity
resource that would enable them to continue to meet their respective
obligations in a timely fashion in the event of a Member default,
thereby helping to contain losses and liquidity pressures from that
default. Additionally, because the Evergreen provisions would ensure
that any annual renewals would be substantially similar to the
currently proposed credit facility, such renewals also would provide
the Clearing Agencies with a readily available liquidity resource that
would enable them to continue to meet their respective obligations in a
timely fashion in the event of a Member default, thereby helping to
contain losses and liquidity pressures from that default. Moreover,
allowing the Clearing Agencies annually to renew the credit facility
pursuant to the proposed Evergreen provisions without filing an
additional advance notice would reduce the risk of gaps in liquidity
coverage and better allow the Clearing Agencies to continually maintain
sufficient liquidity resources. Therefore, the Commission believes that
the proposal is consistent with Rule 17Ad-22(e)(7)(i).
    Rule 17Ad-22(e)(7)(ii) under the Act requires the Clearing Agencies
to establish, implement, maintain and enforce written policies and
procedures reasonably designed to hold qualifying liquid resources
sufficient to satisfy payment obligations owed to clearing members.\45\
Rule 17Ad-22(a)(14) of the Act defines ``qualifying liquid resources''
to include, among other things, lines of credit without material
adverse change provisions, that are readily available and convertible
into cash.\46\ As described above, the currently proposed credit
facility would permit the Clearing Agencies to enter into a single
credit facility designed to help ensure that the Clearing Agencies have
sufficient, readily-available qualifying liquid resources to meet the
cash settlement obligations of their largest family of affiliated
members. Similarly, because the Evergreen provisions would ensure that
any annual renewals would be substantially similar to the currently
proposed credit facility, such renewals also would permit the Clearing
Agencies to enter into a single credit facility designed to help ensure
that the Clearing Agencies have sufficient, readily-available
qualifying liquid resources to meet the cash settlement obligations of
their largest family of affiliated members. Therefore, the Commission
believes that the proposal is consistent with Rule 17Ad-22(e)(7)(ii).
---------------------------------------------------------------------------

    \45\ 17 CFR 240.17Ad-22(e)(7)(ii).
    \46\ 17 CFR 240.17Ad-22(a)(14).
---------------------------------------------------------------------------

VI. Conclusion

    It is therefore noticed, pursuant to Section 806(e)(1)(I) of the
Clearing Supervision Act,\47\ that the Commission does not object to
the Advance Notices SR-DTC-2017-802 and SR-NSCC-2017-802 and that DTC
and NSCC be and hereby are authorized to implement the change as of the
date of this notice.
---------------------------------------------------------------------------

    \47\ 12 U.S.C. 5465(e)(1)(I).

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-09459 Filed 5-9-17; 8:45 am]
BILLING CODE 8011-01-P