TO:	EPA Docket No. EPA-HQ-OAR-2006-0359

FROM:	Conrad Chin, EPA/SPPD

DATE:	October 12, 2007

SUBJECT:	Teleconference with Foundry Industry Representatives on October
12, 2007, regarding EPA’s National Vehicle Mercury Switch Recovery
Program

I.	Participants

Foundry Representatives:

Christian Richter

Jeff Hannapel

Jeet Radia

EPA Representatives

Conrad Chin

Rhonda Minnick

EPA Contractor

Jeff Coburn

II.	Summary of Discussion

Representatives of the iron and steel foundry industry conducted a
conference call with EPA to discuss concerns with the mercury switch
removal requirements of the proposed iron and steel foundries area
source rule (72 FR 52984).  Conrad Chin introduced Rhonda Minnick, who
is EPA’s implementation coordinator of the National Vehicle Mercury
Switch Recovery Program.  Mr. Chin explained that the purpose of this
meeting was to afford representatives of the iron and steel foundry
industry an opportunity to explain their concerns directly to Ms.
Minnick.

Industry representatives indicated that many of the suppliers of the
area source foundries are not currently part of the National Vehicle
Mercury Switch Recovery Program.  As such, the industry representatives
believe that many area source foundries will be required to implement
burdensome, site-specific mercury switch removal plans.  Whereas large
iron and steel production facilities (“mini-mills”) have enough
purchasing power to force large suppliers to join the National Vehicle
Mercury Switch Recovery Program, smaller independent suppliers that
service the smaller foundries may be more reluctant to sign-up for the
program.  The small area source foundries may purchase scrap from many
different suppliers, and these small foundries do not have the buying
power to force the small, independent suppliers to join the National
Program.  The industry representatives also noted that the mercury
switch requirements, as proposed, pertains to all auto scrap not just to
“auto shred.”  Some types of auto scrap, such as engine blocks or
brake rotors, do not contain mercury switches and these types of scrap
should not be subject to the mercury switch removal requirements,
according to the industry representatives.

According to the industry representatives, the scrap supply chain
includes the dismantlers (where mercury switch removal is most easily
carried out) and scrap processors (who may purchase from multiple
dismantlers and then shred the auto scrap for sale to foundries).
Foundries may purchase directly from the scrap processor or they may
contact a scrap broker (who is a middle man who arranges scrap delivery
to the foundry from various suppliers/scrap processors).  There are many
dismantlers signed-up on the National Vehicle Mercury Switch Recovery
Program, but very few, if any, scrap processors or scrap brokers.  As
foundries do not purchase from the dismantlers, it is difficult to know
if they are receiving scrap from participants in the program, according
to the industry representatives.

The foundry representatives suggested that the implementation of the
mercury switch provision for the area source foundries be delayed to
allow more time for the National Vehicle Mercury Switch Recovery Program
to penetrate down to the smaller scrap suppliers.  As proposed, the
mercury switch requirement for iron and steel foundries becomes
effective one year after promulgation of the final rule.  Industry
representatives suggested that 3 years be allowed for the implementation
of the mercury switch removal requirements for the area source
foundries.

III.	Action Items

Rhonda Minnick stated that she would relay the foundries’ concerns to
her superiors and discuss with her superiors the potential impacts of a
delayed implementation schedule for iron and steel foundries on the
National Vehicle Mercury Switch Recovery Program.

Industry representatives agreed to continue to collect information from
scrap suppliers regarding the number of auto shred scrap suppliers used
by the foundries and the fraction of those suppliers that are currently
participants in the National Vehicle Mercury Switch Recovery Program.

A follow-up meeting will be scheduled to discuss the results of the
previous action items.

Meeting Minutes Memorandum – October 12, 2007, Foundries
Teleconference on the National Vehicle Mercury Switch Recovery Program

  PAGE  2

Meeting Minutes Memorandum


[Federal Register Volume 86, Number 204 (Tuesday, October 26, 2021)]
[Notices]
[Pages 59208-59258]
[FR Doc No: 2021-22817]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93335]

Order Specifying the Manner and Format of Filing Unaudited
Financial and Operational Information by Security-Based Swap Dealers
and Major Security-Based Swap Participants That Are Not U.S. Persons
and Are Relying on Substituted Compliance Determinations With Respect
to Rule 18a-7

I. Introduction

    Currently, broker-dealers are required to file on a monthly or
quarterly basis the applicable part of Form X-17A-5 (``FOCUS
Report'').\1\ Broker-dealers use the FOCUS Report to submit unaudited
financial and operational information that is used by the Commission
and broker-dealer self-regulatory organizations to monitor and
supervise the firms. On September 19, 2019, the U.S. Securities and
Exchange Commission (``Commission'') adopted recordkeeping, reporting,
and notification requirements applicable to registered security-based
swap dealers and major security-based swap participants (collectively,
``SBS Entities'') and additional recordkeeping and reporting
requirements for broker-dealers to account for their security-based
swap activities.\2\ As part of this initiative, the Commission adopted
Exchange Act rule 18a-7 (``Rule 18a-7''), amended Part II of the FOCUS
Report, and adopted a new Part IIC of the FOCUS Report.\3\ Rule 18a-7
applies to SBS Entities that also are registered with the Commission as
OTC derivatives dealers (a special purpose broker-dealer that must
limit its business to dealing in over-the-counter derivatives) or that
do not have a broker-dealer registration.\4\ Under this rule, SBS
Entities that do not have a prudential regulator are required to file
Part II of the FOCUS Report on a monthly basis and SBS Entities that
have a prudential regulator are required to file Part IIC of the FOCUS
Report on a quarterly basis.\5\ Rule 18a-7 requires SBS Entities to
file Part II or Part IIC of the FOCUS Report with the Commission or its
designee.\6\ The Commission has designated the Financial Industry
Regulatory Association, Inc. (``FINRA'') as the organization with which
SBS Entities must file Part II or Part IIC of the FOCUS Report.\7\
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    \1\ See 17 CFR 240.17a-5(a).
    \2\ See Recordkeeping and Reporting Requirements for Security-
Based Swap Dealers, Major Security-Based Swap Participants, and
Broker-Dealers, Securities Exchange Act of 1934 (``Exchange Act'')
Release No. 87005 (Sept. 19, 2019), 84 FR 68550 (Dec. 16, 2019)
(``Recordkeeping and Reporting Adopting Release'').
    \3\ Id. at 68571-88. See also 17 CFR 240.18a-7. The amendments
to Part II included consolidating other FOCUS Report parts into Part
II. See Recordkeeping and Reporting Adopting Release, 84 FR at
68573-74 (discussing the consolidation of Parts IIB and IICSE into
Part II).
    \4\ SBS Entities that also are registered as broker-dealers
(other than OTC derivatives dealers) are subject to the FOCUS Report
filing requirements of Exchange Act rule 17a-5. 17 CFR 240.17a-5(a).
    \5\ See 17 CFR 240.18a-7(a)(1) and (2).
    \6\ See 17 CFR 240.18a-7(a).
    \7\ See Order Designating Financial Industry Regulatory
Authority, Inc., to Receive Form X-17A-5 (FOCUS Report) from Certain
Security-Based Swap Dealers and Major Security-Based Swap
Participants, Exchange Release No. 34-88866 (May 14, 2020).
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    Exchange Act rule 3a71-6 (``Rule 3a71-6'') conditionally provides
that SBS Entities that are not U.S. persons may satisfy certain
requirements under Exchange Act section 15F, including Rule 18a-7, by
complying with comparable regulatory requirements of the SBS Entity's
home jurisdiction.\8\ Pursuant to Rule 3a71-6, the Commission has
issued orders granting conditional substituted compliance with respect
to certain requirements applicable to SBS Entities subject to
regulation in France, Germany, and the United Kingdom (``substituted
compliance orders'').\9\ The substituted compliance orders permit
certain SBS Entities in those jurisdictions (``Covered Entities'') to
apply substituted compliance for specified Exchange Act requirements.
---------------------------------------------------------------------------

    \8\ See 17 CFR 240.3a71-6.
    \9\ See Order Granting Conditional Substituted Compliance in
Connection with Certain Requirements Applicable to Non-U.S.
Security-Based Swap Dealers and Major Security-Based Swap
Participants Subject to Regulation in the Federal Republic of
Germany, Exchange Act Release No. 90765 (Dec. 22, 2020), 85 FR 85686
(Dec. 29, 2020); Order Granting Conditional Substituted Compliance
in Connection with Certain Requirements Applicable to Non-U.S.
Security-Based Swap Dealers and Major Security-Based Swap
Participants Subject to Regulation in the French Republic, Exchange
Act Release No. 92484 (July 23, 2021), 86 FR 41612 (Aug. 2, 2021);
Order Granting Conditional Substituted Compliance in Connection with
Certain Requirements Applicable to Non-U.S. Security-Based Swap
Dealers and Major Security-Based Swap Participants Subject to
Regulation in the United Kingdom, Exchange Release No. 92529 (June
30, 2021), 86 FR 43318 (Aug. 6, 2021); Order Granting Conditional
Substituted Compliance in Connection With Certain Requirements
Applicable to Non-U.S. Security-Based Swap Dealers Subject to
Regulation in the Swiss Confederation, Exchange Act Release No.
93284 (Oct. 8, 2021).
---------------------------------------------------------------------------

    The substituted compliance orders permit a Covered Entity to
satisfy the requirements of Rule 18a-7 with respect to filing Part II
or Part IIC of the FOCUS Report by being subject to and complying with
specified requirements in the Covered Entity's home jurisdiction,
subject to additional conditions designed to help ensure comparability
of regulatory outcomes. In particular, the conditions for applying
substituted compliance with respect to Rule 18a-7 are that the Covered
Entity: (1) Is subject to and complies with the relevant comparable
requirements of the home jurisdiction; (2) files periodic unaudited
financial and operational information with the Commission or its
designee in the manner and format required by Commission rule or order
and presents the financial information in the filing in accordance with
generally accepted accounting principles (``GAAP'') that the Covered
Entity uses to prepare general purpose publicly available or available
to be issued financial statements in the home jurisdiction (``manner
and format condition''); (3) applies substituted compliance for the
capital requirements of Exchange Act rules 18a-1 through 18a-1d
(collectively, ``Rule 18a-1'') if the Covered Entity does not have a
prudential regulator; \10\ and (4) applies substituted compliance for
the record preservation requirements of Exchange Act rule 18a-
6(b)(1)(viii) (``Rule 18a-6(b)(1)(viii)'') if the Covered Entity does
not have a prudential regulator.\11\
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    \10\ See 17 CFR 240.18a-1 through 18a-1d.
    \11\ See 17 CFR 240.18a-6(b)(1)(viii). Rule 18a-6(b)(1)(viii)
requires SBS Entities without a prudential regulator to preserve
specified information in support of amounts included in the FOCUS
Report Part II prepared as of the audit date. Id.
---------------------------------------------------------------------------

    This order specifies how a Covered Entity must meet the manner and
format condition in a substituted compliance order.\12\ Finally, in
response to the Commission's proposed substituted compliance orders
with respect to Germany, France, and the United Kingdom, commenters
made suggestions about the manner and

format condition.\13\ The comments, and the Commission's response to
them, are discussed below.
---------------------------------------------------------------------------

    \12\ This order applies to the manner and format condition in
the existing substituted compliance orders and to any future orders
that include the manner and format condition. If necessary to
achieve comparable regulatory outcomes, the Commission may prescribe
additional conditions in a future substituted compliance order with
respect to a particular jurisdiction to tailor a Covered Entity's
reliance on the manner and format condition to the relevant laws in
the jurisdiction.
    \13\ The comments are available at: https://www.sec.gov/comments/s7-16-20/s71620.htm (Germany); https://www.sec.gov/comments/s7-22-20/s72220.htm (France); and https://www.sec.gov/comments/s7-04-21/s70421.htm (United Kingdom).
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II. Discussion

A. Manner of Filing

i. Use Part II or IIC of the FOCUS Report and the eFOCUS System
Administered by FINRA
    Most broker-dealers registered with the Commission currently file
the applicable part of the FOCUS Report with FINRA through the eFOCUS
system (``FINRA eFOCUS system''). As noted above, the Commission has
designated FINRA to receive Part II and Part IIC of the FOCUS Report
filed by SBS Entities pursuant to Rule 18a-7, including SBS Entities
that are not broker-dealer members of FINRA. FINRA will administer a
separate eFOCUS system to be used by SBS Entities that are not broker-
dealer members of FINRA to file the FOCUS Report Part II and Part IIC
(as applicable) (``SEC eFOCUS system''). Under this order, a Covered
Entity must file the financial and operational information in the
format discussed below with the Commission through the SEC eFOCUS
system administered by FINRA.\14\ The SEC eFOCUS system is modelled
closely on the FINRA eFOCUS system. Using the SEC eFOCUS system will
enable Covered Entities applying substituted compliance with respect to
Rule 18a-7 to file the FOCUS Report Part II and Part IIC (as
applicable) on the same platform and to use the same preexisting
templates, software, and procedures as SBS Entities that are not
members of FINRA. Further, the Commission staff will have access to the
SEC eFOCUS system and the FINRA eFOCUS system (collectively, the
``eFOCUS systems'') and information filed on those systems will be
provided to the Commission staff to maintain a separate database. The
staff will use its access to the eFOCUS systems and the database to
monitor the financial condition of firms and to perform cross-firm
analysis to identify trends and areas meriting further regulatory focus
as well as to perform economic analyses. Requiring Covered Entities to
use the SEC eFOCUS system to file the required financial and
operational information will facilitate integrating the information
with the financial and operational information of broker-dealers (some
of which will be registered as security-based swap dealers) and SBS
Entities that are not applying substituted compliance with respect to
Rule 18a-7. This will enhance the Commission's ability to monitor and
supervise these firms.
---------------------------------------------------------------------------

    \14\ See paragraph (a) of the ordering language below. Covered
Entities may file the FOCUS Reports Part II and Part IIC (as
applicable) pursuant to instructions on the Commission's website if
the SEC eFOCUS system is not ready to receive them by the required
first filing deadline and, thereafter, until the SEC eFOCUS system
is ready to receive the FOCUS Reports.
---------------------------------------------------------------------------

ii. Frequency and Timing of Filing
    Rule 18a-7 requires an SBS Entity that is not prudentially
regulated to file Part II of the FOCUS Report seventeen business days
after the month end and an SBS Entity that is prudentially regulated to
file Part IIC of the FOCUS Report thirty calendar days after the
quarter end.\15\ In response to proposed substituted compliance orders,
the Commission received comments requesting that Covered Entities be
permitted to file their financial and operational information with the
same frequency that they file financial reports in their home
jurisdictions (typically quarterly).\16\ A commenter further requested
that the deadline for filing the financial and operational information
with the Commission be extended to 14 calendar days after the filing in
their home jurisdiction is due, except the commenter requested 30
calendar days in the case of a filing that covers a period ending on
the firm's fiscal year end.\17\
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    \15\ See 17 CFR 240.18a-7(a)(1) and (2).
    \16\ See, e.g., Letter from Kyle Brandon, Managing Director,
Head of Derivative Policy, SIFMA (Dec. 8, 2020) (``SIFMA Letter re:
Proposed Order (Germany)'') at 8; Letter from Jan Ford, Head of
Compliance, Americas and Co-Head of SBS Council, Deutsche Bank, and
Gary Kane, Co-Head Institutional Client Group, Americas and Co-Head
of SBS Council, Deutsche Bank (Dec. 8, 2020) (``Deutsche Bank Letter
re: Proposed Order (Germany)'') at 2; Letter from Kyle Brandon,
Managing Director, Head of Derivative Policy, SIFMA (Jan. 25, 2021)
(``SIFMA Letter re: Proposed Order (France)'') at 16; Letter from
Kyle L. Brandon, Managing Director, Head of Derivatives Policy,
SIFMA (May 3, 2021) (``SIFMA Letter re: Proposed Order (UK)'') at
Appendix B.
    \17\ SIFMA Letter re: Proposed Order (UK) at Appendix B.
---------------------------------------------------------------------------

    The commenter's requests would substantially delay (in some cases
by multiple months) the reporting of financial and operational
information by Covered Entities. Consequently, for the reasons
discussed below, the Commission does not believe it would be
appropriate to permit the extended timeframes for reporting this
information requested by the commenter. The Commission--when amending
Rule 3a71-6 to make substituted compliance available for Rule 18a-7--
explained the importance of reporting.\18\ In particular, the reporting
requirements are integral to the ability of the Commission to
effectively examine and inspect regulated firms' compliance with
applicable securities laws.\19\ Further, the reports are used to
determine which firms are engaged in various securities-related
activities, and how economic events and government policies may affect
segments of the securities industry.\20\ In addition, the reports are
important for protecting customers against the risks involved in having
their securities held by a third party.\21\ Finally, the reporting
requirements promote transparency of the financial and operational
condition of firms registered with the Commission.\22\ In light of
these considerations, Rule 3a71-6 states, in pertinent part, that prior
to making a substituted compliance determination regarding SBS Entity
reporting requirements, the Commission intends to consider (in addition
to any conditions imposed) whether the foreign financial regulatory
system's required reports, the timeframes for reporting information,
the accounting standards governing the reports, and the required format
of the reports are comparable to applicable provisions arising under
the Exchange Act and its rules and regulations and would permit the
Commission to examine and inspect regulated firms' compliance with
applicable securities laws.\23\
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    \18\ See Recordkeeping and Reporting Adopting Release, 84 FR at
68598.
    \19\ Id.
    \20\ Id.
    \21\ Id.
    \22\ Id.
    \23\ See 17 CFR 240.3a71-6; Recordkeeping and Reporting Adopting
Release, 84 FR at 68598.
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    Rule 18a-7 requires SBS Entities without a prudential regulator to
file the FOCUS Report Part II on a monthly basis 17 business days after
the end of the month. As stated above, the commenter requests that
Covered Entities without a prudential regulator be permitted to file
the financial and operational information on a quarterly basis (if that
is the filing frequency in their home jurisdiction) and 14 or 30 days
after the deadlines for filing information in their home jurisdiction.
Permitting quarterly filing and tying the deadline to local
requirements would significantly delay the Commission's receipt of the
financial and operational information and result in the filing of
information that is multiple months old. Therefore, for the reasons
discussed above, the Commission does not believe it would be
appropriate to permit the timeframes requested by the commenter.

However, the Commission does believe it would be appropriate to permit
the filing deadline to be 35 calendar days after the month end. This
would align with the 35-day filing deadline for Covered Entities with a
prudential regulator (discussed below).
    Rule 18a-7 requires SBS Entities with a prudential regulator to
file the FOCUS Report Part IIC 30 calendar days after the end of the
quarter. The commenter requests that Covered Entities with a prudential
regulator be permitted to file the financial and operational
information 14 or 30 days after the deadlines for filing information in
their home jurisdiction. As discussed above, tying the deadline to
local requirements would significantly delay the Commission's receipt
of the financial and operational information and result in the filing
of information that is several months old. Therefore, for the reasons
discussed above, the Commission does not believe it would be
appropriate to permit the timeframes requested by the commenter.
However, the Commission believes it would be appropriate to permit the
filing deadline to be 35 days after the quarter end. The Commission
understands that the U.S. prudential regulators permit certain U.S.
banks to file their financial reports 35 days after the quarter end.
The Commission does not believe this modest increase in the number of
days Covered Entities have to file the FOCUS Report Part II or Part IIC
would implicate the concerns discussed above about receiving stale
information.
    Under the order, a Covered Entity without a prudential regulatory
must file the FOCUS Report Part II 35 calendar days after the end of
the month.\24\ A Covered Entity with a prudential regulator must file
the FOCUS Report Part IIC 35 calendar days after the end of the
quarter. \25\
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    \24\ See paragraph (a)(1) of the ordering language below.
    \25\ See paragraph (a)(2) of the ordering language below.
---------------------------------------------------------------------------

B. Format of Filing

i. Complete a Specified Set of Line Items on the FOCUS Report
    Part II and Part IIC of the FOCUS Report elicit financial and
operational information about the filer through sections consisting of
uniquely numbered line items. The information (e.g., a number or dollar
amount) is entered into the line items. Under Rule 18a-7, an SBS Entity
must use Part II or Part IIC of the FOCUS Report to submit required
financial and operational information by filling out all applicable
line items on the form. Commenters requested that Covered Entities be
allowed to file other reports instead of or in combination with
extracts from filings made with home country supervisors in lieu of
filing the information elicited in Part II or Part IIC of the FOCUS
Report.\26\
---------------------------------------------------------------------------

    \26\ See SIFMA Letter re: Proposed Order (Germany) at 8;
Deutsche Bank Letter re: Proposed Order (Germany) at 2; SIFMA Letter
re: Proposed Order (France) at 15.
---------------------------------------------------------------------------

    As discussed above, the Commission's ability to monitor and
supervise SBS Entities will be facilitated by having all firms file
periodic unaudited financial and operational information through the
eFOCUS systems. The eFOCUS systems are configured to receive
information formatted to Part II and Part IIC of the FOCUS Report and
the line items contained on the forms. Consequently, information
formatted to other types of report templates or free-form information
cannot be input into the systems. Moreover, having all firms enter
information in the uniquely numbered line items on Part II or Part IIC
of the FOCUS Report will facilitate cross firm comparisons. If firms
use different forms or report information without using the template of
a common form, the Commission staff would need to manually merge the
data, and even then, there would be omissions when the other form does
not have a parallel line item.
    However, the Commission sought comment in the proposed substituted
compliance orders for Germany, France, and the United Kingdom on
whether it would be appropriate initially for Covered Entities to
report information elicited by a limited subset of the applicable line
items on Part II and Part IIC of the FOCUS Report rather than all
applicable line items. Commenters supported this approach and a
commenter indicated the line items on the two forms that Covered
Entities could complete with information that they report pursuant to
other requirements.\27\ The Commission believes it would be appropriate
initially to limit the line items that Covered Entities complete on
Part II or Part IIC of the FOCUS Report (as applicable) to information
they draw from other reports or otherwise produce. This will allow them
to use existing systems and processes for calculating and producing the
information reported on the FOCUS Report Part II or Part IIC (as
applicable), while still producing information that will facilitate the
Commission's effective oversight of these entities. During this initial
period, the Commission will evaluate whether it would be appropriate to
require additional information to be reported by these filers in order
to achieve a comparable regulatory outcome to the FOCUS Report filing
requirements of Rule 18a-7. For these reasons, the order requires
Covered Entities to complete a limited set of applicable line items on
Part II or Part IIC of the FOCUS Report (as applicable).\28\
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    \27\ See, e.g., SIFMA Letter re: Proposed Order (UK) at Appendix
B.
    \28\ See paragraph (b) of the ordering language below. The
minimum required line items are highlighted on Part II of the FOCUS
Report attached as Appendix A (if not prudentially regulated) or
Part IIC of the FOCUS Report attached as Appendix B (if prudentially
regulated). An SBS Entity may report information elicited in other
line items on the applicable FOCUS Report if it chooses to do so.
Further, as is the case with SBS Entities, Covered Entities must
complete required line items if applicable. For example, under this
order, Covered Entities will need to complete line items linked to
Exchange rule 18a-4 (``Rule 18a-4''). 17 CFR 240.18a-4. However, the
Commission expects most, if not all, Covered Entities will operate
under an exemption to the segregation requirements of Rule 18a-4.
Almost all the line items linked to Rule 18a-4 apply if the Covered
Entity is not operating under the exemption. Therefore, a Covered
Entity operating under the exemption need not complete these line
items (there is a line item to indicate the firm is operating under
the exemption, which will need to be completed if applicable).
---------------------------------------------------------------------------

ii. Report Information On A Consolidated or Unconsolidated Basis
    A commenter requested that Covered Entities be permitted to present
the financial and operational information in the filings at the entity-
level of the Covered Entity on either a consolidated or unconsolidated
basis depending on the reporting basis the Covered Entity uses in its
home jurisdiction.\29\ The Commission believes it would be appropriate
for the purposes of this order to permit Covered Entities to present
the information in Part II or Part IIC of the FOCUS Report (as
applicable) at the entity level of the Covered Entity on the same basis
(consolidated or unconsolidated) that the Covered Entity presents
information in the financial reports it files in its home
jurisdiction.\30\ This will avoid Covered Entities having to prepare
two sets of financial statements: One for their home jurisdiction and
one for the purposes of this order, while still producing information
that will facilitate the Commission's effective oversight of these
entities.
---------------------------------------------------------------------------

    \29\ See SIFMA Letter re: Proposed Order (UK) at Appendix B.
    \30\ See paragraph (c) of the ordering language below.
---------------------------------------------------------------------------

iii. Covered Entities Without a Prudential Regulator Must Complete the
Regulatory Capital Section of Part IIC of the FOCUS Report
    The Commission has issued substituted compliance orders that

permit Covered Entities to apply substituted compliance with respect to
the capital requirements of Rule 18a-1 applicable to Covered Entities
without a prudential regulator subject to certain conditions. One of
the conditions is that the Covered Entity is subject to and complies
with specified capital requirements in the firm's home jurisdiction.
The capital requirements in the home jurisdictions addressed in the
substituted compliance orders are based on the international capital
standard for banks (``Basel capital standard'').\31\ Part IIC of the
FOCUS Report--because it is used by prudentially regulated SBS
Entities--includes a section to report the firm's capital computation
under the Basel capital standard. Conversely, Part II of the FOCUS
Report includes sections to report capital computations under Exchange
Act rule 15c3-1 \32\ and Rule 18a-1. It does not contain a section to
report a capital computation under the Basel capital standard.
Moreover, as discussed above, substituted compliance with Rule 18a-7 is
conditioned on a Covered Entity without a prudential regulator applying
substituted compliance with respect to Rule 18a-1.
---------------------------------------------------------------------------

    \31\ See, e.g., BCBS, The Basel Framework, available at: https://www.bis.org/basel_framework/.
    \32\ 17 CFR 240.15c3-1.
---------------------------------------------------------------------------

    For these reasons, the order provides that Covered Entities without
a prudential regulator must complete the Regulatory Capital section
from Part IIC of the FOCUS Report, rather than completing the
Computation of Net Capital and Computation of Minimum Regulatory
Capital Requirements sections from Part II of the FOCUS Report.\33\
Because Part II of the FOCUS Report does not include a section to
calculate capital under the Basel capital standard, the version of that
form attached to this order has been modified to include the capital
calculation section from Part IIC of the FOCUS Report.
---------------------------------------------------------------------------

    \33\ See paragraph (d) of the ordering language below.
Initially, Covered Entities without a prudential regulator will need
to file the FOCUS Report Part II and the FOCUS Report Part IIC (with
only the Regulatory Capital section completed in the FOCUS Report
Part IIC). Eventually, the SEC eFOCUS may be configured so that
Covered Entities using Part II of the FOCUS Report to meet the
manner and format condition will be able to report a capital
calculation under the Basel capital standard using the relevant
section from the FOCUS Report Part IIC without having to separately
file the FOCUS Report Part IIC.
---------------------------------------------------------------------------

iv. Report Basel Capital Standard Calculation Pursuant to Home Country
Requirements
    A commenter requested that the Commission permit a Covered Entity
to complete the capital line items in the filings, if the FOCUS Report
Part IIC is used as the filing form, in a manner consistent with its
home jurisdiction's capital standards and related reporting
requirements.\34\ The Commission believes this accommodation to local
reporting requirements would be appropriate for Covered Entities with a
prudential regulator and for Covered Entities without a prudential
regulator applying substituted compliance for the capital requirements
of Rule 18a-1. This will avoid these firms having to perform and
present two Basel capital calculations (one pursuant to local
requirements and one pursuant to U.S. requirements). Moreover, the
Basel capital standard is an international standard that has been
adopted in the U.S. and in jurisdictions where substituted compliance
is available for capital. Therefore, requirements for how firms
calculate capital pursuant to the Basel capital standard generally
should be similar. Consequently, even though the capital section of
Part IIC of the FOCUS Report requires SBS Entities to complete the
Regulatory Capital section using the instructions accompanying form
FFIEC 031 (``Call Report''), Covered Entities completing the capital
section of Part IIC of the FOCUS Report pursuant to this order may rely
on local requirements to present the information on this section of the
FOCUS Report.\35\
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    \34\ See SIFMA Letter re: Proposed Order (Germany) at 8; SIFMA
Letter re: Proposed Order (France) at 15.
    \35\ See paragraph (d) of the ordering language below.
---------------------------------------------------------------------------

v. Report GAAP Used In Memo Field to the FOCUS Report
    As discussed above, the manner and format condition in the
Commission's substituted compliance orders requires Covered Entities to
file periodic unaudited financial and operational information with the
Commission or its designee in the manner and format required by
Commission rule or order and present the financial information in the
filing in accordance with GAAP that the Covered Entity uses to prepare
general purpose publicly available or available to be issued financial
statements in the home jurisdiction. Under this order, the Covered
Entity must notify the Commission in a memorandum field accompanying
the FOCUS Report the GAAP it uses to present the financial information
in the filing.\36\ This will allow the Commission to better understand
the information presented in the FOCUS Report and how it may differ
from information reported by SBS Entities pursuant to U.S. GAAP.
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    \36\ See paragraph (e) of the ordering language below. In
particular, the Covered Entity will need to report this information
in the memorandum field for line item 12003 or 12004 (as applicable)
of the FOCUS Report Part II if not prudentially regulated or line
item 12758 or 12759 (as applicable) of the FOCUS Report Part IIC if
prudentially regulated. Covered Entities may include this GAAP
notice with the FOCUS Reports Part II and Part IIC (as applicable)
filed pursuant to instructions on the Commission's website if the
SEC eFOCUS system is not ready to receive them by the required first
filing deadline and, thereafter, until the SEC eFOCUS system is
ready to receive the FOCUS Reports.
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vii. Follow FOCUS Report Instructions Unless Inconsistent With This
Order
    Finally, the Covered Entity must follow the instructions for
completing the FOCUS Report Part II or Part IIC, as applicable, to the
extent the instructions are not inconsistent with the provisions of the
order.\37\ This includes presenting information in U.S. dollars (not in
local currencies).\38\ However, a prudentially regulated Covered Entity
filing the FOCUS Report Part IIC need not follow instructions referring
to line items on the Call Report to the extent the Covered Entity does
not report the required information in a Call Report pursuant to that
instruction.\39\
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    \37\ See paragraph (f) of the ordering language below.
    \38\ Covered Entities may convert local currencies at a ``top-
line'' level to U.S. dollars at the spot rate applicable on the ``as
of'' date of the reported amount.
    \39\ If the Covered Entity files a Call Report in the U.S. with
a prudential regulator pursuant to the instructions for the Call
Report, it should follow the instructions in the FOCUS Report Part
IIC to report information in that report to the extent the same
information is reported by the Covered Entity in the Call Report.
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III. Conclusion

    It is hereby ordered that a Covered Entity must meet the manner and
format condition in a Commission order granting conditional substituted
compliance with respect Exchange Act rule 18a-7 by:
    (a)(1) If not prudentially regulated, filing through the SEC eFOCUS
system a FOCUS Report Part II 35 calendar days after the end of each
month; or
    (2) If prudentially regulated, filing through the SEC eFOCUS system
the FOCUS Report Part IIC 35 calendar days after the end of each
quarter;
    (b)(1) If not prudentially regulated, entering the required
information on the line items (as applicable) highlighted on the FOCUS
Report Part II attached as Appendix A to this order on the FOCUS Report
Part II filed pursuant to paragraph (a)(1) above; or
    (2) If prudentially regulated, entering the required information on
the line items (as applicable) highlighted on the FOCUS Report Part IIC
attached as Appendix B to this order on the FOCUS

Report Part IIC filed pursuant to paragraph (a)(2) above;
    (c) Presenting the information in the FOCUS Report Part II or Part
IIC (as applicable) filed pursuant to paragraph (a) above at the entity
level of the Covered Entity on the same basis (consolidated or
unconsolidated) that the Covered Entity presents information in the
financial reports it files in its home jurisdiction;
    (d) Completing the Regulatory Capital section of the FOCUS Report
Part IIC and presenting the information in that section in accordance
with the reporting requirements of the Covered Entity's home
jurisdiction;
    (e) Identifying the generally accepted accounting principles being
used to present the information in the FOCUS Report Part II or Part IIC
(as applicable) filed pursuant to paragraph (a) above in the memo field
for line item 12003, 12004, 12758, or 12759 (as applicable) of the
report in the SEC eFOCUS system; and
    (f) Reporting the information in the FOCUS Report Part II or Part
IIC (as applicable) filed pursuant to paragraph (a) above in accordance
with the instructions for those reports; except that the Covered Entity
can report the information:
    (1) In a manner consistent with a condition of this order, if the
instruction conflicts with the condition; or
    (2) In a manner consistent with the requirements of its home
jurisdiction, if the instruction on the FOCUS Report Part IIC requires
information submitted on the Call Report and the Covered Entity does
not report the required information on a Call Report.

    By the Commission.

    Dated: October 14, 2021.
Eduardo A. Aleman,
Deputy Secretary.
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[FR Doc. 2021-22817 Filed 10-25-21; 8:45 am]
BILLING CODE 8011-01-C


[Federal Register Volume 79, Number 117 (Wednesday, June 18, 2014)]
[Notices]
[Pages 34805-34808]
[FR Doc No: 2014-14202]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-72382; File No. SR-NASDAQ-2014-041]

Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Order
Approving a Proposed Rule Change, as Modified by Amendment No. 1
Thereto, To List and Trade of Shares of the First Trust Enhanced Short
Maturity ETF of First Trust Exchange-Traded Fund IV

June 12, 2014.

I. Introduction

    On April 11, 2014, The NASDAQ Stock Market LLC (``Exchange'' or
``Nasdaq'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a
proposed rule change relating to the listing and trading of shares
(``Shares'') of the First Trust Enhanced Short Maturity ETF (``Fund'')
of First Trust Exchange-Traded Fund IV (``Trust''). On April 24, 2014,
the Exchange filed Amendment No. 1 to the proposed rule change.\3\ The
Commission published for comment in the Federal Register notice of the
proposed rule change, as modified by Amendment No. 1 thereto, on May 1,
2014.\4\ The Commission received no comments on the proposed rule
change. This order approves the proposed rule change, as modified by
Amendment No. 1 thereto.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ In Amendment No. 1, the Exchange: (1) Clarified that the
Fund (defined below) will limit its investments in asset-backed
securities and non-agency mortgage-backed securities (in the
aggregate) to 20% of its net assets; (2) modified its description of
how asset-backed or mortgage-backed securities will be priced in
certain circumstances; and (3) made certain grammatical corrections.
    \4\ See Securities Exchange Act Release No. 72030 (April 25,
2014), 79 FR 24765 (``Notice'').
---------------------------------------------------------------------------

II. Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares pursuant to Nasdaq
Rule 5735, which governs the listing and trading of Managed Fund
Shares.\5\ The Exchange deems the Shares to be equity securities,
rendering trading in the Shares subject to the Exchange's existing
rules governing the trading of equity securities.\6\
---------------------------------------------------------------------------

    \5\ Under Nasdaq's Rules, a Managed Fund Share is a security
that (a) represents an interest in a registered investment company
(``Investment Company'') organized as an open-end management
investment company or similar entity, that invests in a portfolio of
securities selected by the Investment Company's investment adviser
consistent with the Investment Company's investment objectives and
policies; (b) is issued in a specified aggregate minimum number in
return for a deposit of a specified portfolio of securities and/or a
cash amount with a value equal to the next determined net asset
value; and (c) when aggregated in the same specified minimum number,
may be redeemed at a holder's request, which holder will be paid a
specified portfolio of securities and/or cash with a value equal to
the next determined net asset value. See Nasdaq Rule 5735(c)(1).
    \6\ See Notice, supra note 4, 79 FR at 24770.
---------------------------------------------------------------------------

    The Shares will be offered by the Trust, which is organized as a
Massachusetts business trust and is registered with the Commission as
an investment company.\7\ First Trust Advisors L.P. is the investment
adviser (``Adviser'') to the Fund. First Trust Portfolios L.P. is the
principal underwriter and distributor of the Shares (``Distributor'').
The Bank of New York Mellon Corporation will act as the administrator,
accounting agent, custodian, and transfer agent to the Fund. The
Adviser is affiliated with the

Distributor, a broker-dealer. As required by Nasdaq Rule 5735(g),\8\
the Adviser has implemented a firewall with respect to its broker-
dealer affiliate regarding access to information concerning the
composition of or changes to the portfolio.\9\
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    \7\ The Trust is registered under the Investment Company Act of
1940 (``1940 Act''). See Post-Effective Amendment No. 66 to
Registration Statement on Form N-1A for the Trust, dated April 10,
2014 (File Nos. 333-174332 and 811-22559) (``Registration
Statement''). The Exchange represents that the Trust has obtained
certain exemptive relief under the 1940 Act. See Investment Company
Act Release No. 30029 (April 10, 2012) (File No. 812-13795)
(``Exemptive Order'').
    \8\ Nasdaq Rule 5735(g) also requires that Adviser personnel who
make decisions regarding the Fund's portfolio be subject to
procedures designed to prevent the use and dissemination of
material, non-public information regarding the Fund's portfolio.
    \9\ Additionally, the Exchange represents that, in the event (a)
the Adviser becomes newly affiliated with a broker-dealer, or (b)
any new adviser or sub-adviser becomes affiliated with a broker-
dealer, it will implement a fire wall with respect to such broker-
dealer regarding access to information concerning the composition of
or changes to the portfolio, and it will be subject to procedures
designed to prevent the use and dissemination of material, non-
public information regarding such portfolio.
---------------------------------------------------------------------------

First Trust Enhanced Short Maturity ETF 10
---------------------------------------------------------------------------

    \10\ Additional information regarding the Trust, the Fund, and
the Shares, including investment strategies, risks, creation and
redemption procedures, fees, Fund holdings disclosure policies,
distributions and taxes, among other things, is included in the
Notice and Registration Statements, as applicable. See Notice and
Registration Statement, supra notes 4 and 7, respectively.
---------------------------------------------------------------------------

    The investment objective of the Fund will be to seek current
income, consistent with preservation of capital and daily liquidity.
Under normal market conditions,\11\ the Fund will seek to achieve its
investment objective by investing in a portfolio of U.S. dollar-
denominated fixed- and variable-rate \12\ instruments (collectively,
``Fixed Income Securities'') issued by U.S. and non-U.S. public- and
private-sector entities. The Fund will hold Fixed Income Securities of
at least 13 non-affiliated issuers.
---------------------------------------------------------------------------

    \11\ According to the Exchange, the term ``under normal market
conditions includes, but is not limited to, the absence of adverse
market, economic, political or other conditions, including extreme
volatility or trading halts in the fixed income markets or the
financial markets generally; operational issues causing
dissemination of inaccurate market information; or force majeure
type events such as systems failure, natural or man-made disaster,
act of God, armed conflict, act of terrorism, riot or labor
disruption or any similar intervening circumstance. For temporary
defensive purposes, during the initial invest-up period and during
periods of high cash inflows or outflows, the Fund may depart from
its principal investment strategies; for example, it may hold a
higher than normal proportion of its assets in cash. During such
periods, the Fund may not be able to achieve its investment
objective. The Fund may adopt a defensive strategy when the Adviser
believes securities in which the Fund normally invests have elevated
risks due to political or economic factors and in other
extraordinary circumstances.
    \12\ For these purposes, the term ``variable-rate'' also
includes similar terms such as ``floating-rate'' and ``adjustable-
rate.''
---------------------------------------------------------------------------

Principal Investments

    The Fund intends to achieve its investment objective by investing,
under normal market conditions, at least 80% of its net assets in a
portfolio of U.S. dollar-denominated Fixed Income Securities issued by
U.S. and non-U.S. public- and private-sector entities. At least 80% of
the Fund's net assets will be invested in Fixed Income Securities that
are, at the time of purchase, investment grade. Fixed Income Securities
will include the following types of fixed- and variable-rate debt
securities: corporate \13\ and government bonds and notes; agency
securities; instruments of non-U.S. issuers in developed markets;
privately-issued securities; \14\ asset-backed securities; \15\
mortgage-backed securities; \16\ municipal bonds; money market
securities; and investment companies \17\ (including investment
companies advised by the Adviser) that invest primarily in the
foregoing types of Fixed Income Securities. The Fund will limit its
investments in asset-backed securities and non-agency mortgage-backed
securities (in the aggregate) to 20% of its net assets.\18\
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    \13\ While the Fund is permitted to invest without restriction
in corporate bonds, the Adviser expects that, under normal market
conditions, generally, with respect to at least 75% of the Fund's
portfolio, a corporate bond will have, at the time of original
issuance, $100 million or more par amount outstanding to be
considered as an eligible investment.
    \14\ ``Privately-issued securities'' for these purposes
generally includes Rule 144A securities and, in this context, may
include both mortgage-backed and non-mortgage Rule 144A securities.
    \15\ Asset-backed securities are Fixed Income Securities that
are backed by a pool of assets. The Fund currently intends to invest
in asset-backed securities that are consumer asset-backed
securities.
    \16\ Mortgage-backed securities are Fixed Income Securities that
are backed by a pool of mortgage loans. There are a wide variety of
mortgage-backed securities involving commercial or residential,
fixed-rate or adjustable-rate mortgages and mortgages issued by
banks or government agencies.
    \17\ Currently, the Fund anticipates investing only in
registered open-end investment companies that are listed and traded
in the U.S. on registered exchanges (i.e., other exchange traded
funds).
    \18\ See Amendment No. 1, supra note3. There is no limit
applicable to agency mortgage-backed securities.
---------------------------------------------------------------------------

    Under normal market conditions, the Fund's duration \19\ is
expected to be below one year and the maturity \20\ of the Fund's
portfolio is expected to be below three years.
---------------------------------------------------------------------------

    \19\ Duration is a measure of the expected price volatility of a
debt instrument as a result of changes in market rates of interest,
based on, among other factors, the weighted average timing of the
instrument's expected principal and interest payments. Duration
differs from maturity in that it considers a security's yield,
coupon payments, principal payments, call features and coupon
adjustments in addition to the amount of time until the security
finally matures.
    \20\ Maturity is measured relative to the type of security. For
Fixed Income Securities (exclusive of asset-backed securities and
mortgage-backed securities), maturity shall be calculated using
dollar-weighted average maturity, which is calculated by taking the
average length of time to maturity. For asset-backed securities and
mortgage-backed securities, maturity shall be calculated using
weighted average life, which is the estimated time to principal
paydown for each underlying instrument held by the Fund, weighted
according to the relative holdings per instrument.
---------------------------------------------------------------------------

Other Investments

    Under normal market conditions, the Fund will invest primarily in
the Fixed Income Securities described above to meet its investment
objective. In addition, the Fund may invest up to 20% of its net assets
in floating rate loans. The floating rate loans in which the Fund will
invest will represent amounts borrowed by companies or other entities
from banks and other lenders and a significant portion of such floating
rate loans may be rated below investment grade or unrated. Floating
rate loans held by the Fund may be senior or subordinate obligations of
the borrower and may or may not be secured by collateral.

Investment Restrictions

    The Fund will not invest 25% or more of the value of its total
assets in securities of issuers in any one industry. This restriction
does not apply to (a) obligations issued or guaranteed by the U.S.
government, its agencies or instrumentalities or (b) securities of
other investment companies.
    The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including Rule 144A securities deemed illiquid by the Adviser. The Fund
will monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and will consider taking appropriate
steps in order to maintain adequate liquidity if, through a change in
values, net assets, or other circumstances, more than 15% of the Fund's
net assets are held in illiquid assets. Illiquid assets include
securities subject to contractual or other restrictions on resale and
other instruments that lack readily available markets as determined in
accordance with Commission staff guidance.\21\
---------------------------------------------------------------------------

    \21\ See Notice, supra note 4, 79 FR at 24768, n.26.
---------------------------------------------------------------------------

    The Fund will not invest in non-U.S. equity securities.

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the proposed rule
change, as modified by Amendment No. 1 thereto, is consistent with the
requirements of Section 6 of the Act \22\ and the rules and

regulations thereunder applicable to a national securities
exchange.\23\ In particular, the Commission finds that the proposal is
consistent with Section 6(b)(5) of the Act,\24\ which requires, among
other things, that the Exchange's rules be designed to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system, and,
in general, to protect investors and the public interest. The
Commission notes that the Fund and the Shares will be listed and traded
on the Exchange pursuant to the initial and continued listing criteria
in Nasdaq's Rule 5735.
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    \22\ 15 U.S.C. 78f.
    \23\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \24\ 17 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission finds that the proposal to list and trade the Shares
on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of the
Act,\25\ which sets forth Congress' finding that it is in the public
interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Information regarding
market price and trading volume of the Shares will be continually
available on a real-time basis throughout the day on brokers' computer
screens and other electronic services. Quotation and last-sale
information for the Shares will be available via Nasdaq proprietary
quote and trade services, as well as in accordance with the Unlisted
Trading Privileges and the Consolidated Tape Association plans for the
Shares. Intraday executable price quotations on Fixed Income Securities
and other assets not traded on an exchange will be available from major
broker-dealer firms or market data vendors, as well as from automated
quotation systems, published or other public sources, or online
information services. For exchange-listed assets, intraday pricing
information will be available directly from the applicable listing
exchange. Intraday price information will also be available through
subscription services, such as Bloomberg, Markit, and Thomson Reuters,
which can be accessed by authorized participants and other investors.
---------------------------------------------------------------------------

    \25\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    The Commission believes that the proposal to list and trade the
Shares is reasonably designed to promote fair disclosure of information
that may be necessary to price the Shares appropriately and to prevent
trading when a reasonable degree of transparency cannot be assured. The
NAV of the Shares generally will be calculated once daily Monday
through Friday as of the close of regular trading on the New York Stock
Exchange, generally 4:00 p.m., Eastern time. On each business day,
before commencement of trading in Shares in the Regular Market Session
\26\ on the Exchange, the Fund will disclose on its Web site the
identities and quantities of the portfolio of securities and other
assets (``Disclosed Portfolio'' as defined in Nasdaq Rule 5735(c)(2))
held by the Fund that will form the basis for the Fund's calculation of
NAV at the end of the business day.\27\ The Exchange will obtain a
representation from the issuer of the Shares that the NAV per Share
will be calculated daily and that the NAV and the Disclosed Portfolio
will be made available to all market participants at the same time.\28\
Moreover, the Intraday Indicative Value, available on the NASDAQ OMX
Information LLC proprietary index data service, will be widely
disseminated by one or more major market data vendors and broadly
displayed at least every 15 seconds during the Regular Market
Session.\29\ Trading in Shares will be halted if the circuit breaker
parameters in Nasdaq Rule 4120(a)(11) have been reached or because of
market conditions or for reasons that, in the view of the Exchange,
make trading in the Shares inadvisable, and trading in the Shares will
be subject to Nasdaq Rule 5735(d)(2)(D), which sets forth circumstances
under which trading in the Shares may be halted. The Exchange states
that it has a general policy prohibiting the distribution of material,
non-public information by its employees. Further, the Commission notes
that the Reporting Authority that provides the Disclosed Portfolio must
implement and maintain, or be subject to, procedures designed to
prevent the use and dissemination of material, non-public information
regarding the actual components of the portfolio.\30\ The Adviser is
affiliated with a broker-dealer and has implemented a firewall with
respect to that broker-dealer regarding access to information
concerning the composition and/or changes to the Fund's portfolio.\31\
---------------------------------------------------------------------------

    \26\ See Nasdaq Rule 4120(b)(4) (describing the three trading
sessions on the Exchange: (1) Pre-Market Session from 4 a.m. to 9:30
a.m., Eastern time; (2) Regular Market Session from 9:30 a.m. to 4
p.m. or 4:15 p.m., Eastern time; and (3) Post-Market Session from 4
p.m. or 4:15 p.m. to 8 p.m., Eastern time).
    \27\ Under accounting procedures to be followed by the Fund,
trades made on the prior business day (``T'') will be booked and
reflected in NAV on the current business day (``T+1''). Accordingly,
the Fund will be able to disclose at the beginning of the business
day the portfolio that will form the basis for the NAV calculation
at the end of the business day.
    \28\ See Notice, supra note 4, 79 FR at 24770.
    \29\ See id.
    \30\ See Nasdaq Rule 5735(d)(2)(B)(ii).
    \31\ See note 9, supra and accompanying text.
---------------------------------------------------------------------------

    Further, regarding trading in the Shares and the exchange-traded
securities held by the Fund, the Commission notes that the Financial
Industry Regulatory Authority (``FINRA'') will communicate as needed on
behalf of the Exchange \32\ with other markets and other entities that
are members of the Intermarket Surveillance Group (``ISG''),\33\ and
FINRA may obtain trading information regarding trading in the Shares
and the exchange-traded securities held by the Fund from such markets
and other entities that are members of the ISG, which includes
securities and futures exchanges, or from markets which the Exchange
has in place a comprehensive surveillance sharing agreement.\34\
Moreover, the Exchange states that FINRA will be able to access on its
behalf, as needed, trade information for certain Fixed Income
Securities held by the Fund reported to FINRA's Trade Reporting and
Compliance Engine.\35\ The Exchange states that trading in the Shares
will be subject to the existing trading surveillances, administered by
FINRA on behalf of the Exchange, which are designed to detect
violations of Exchange rules and applicable federal securities laws,
and represents that these procedures are adequate to properly monitor
Exchange trading of the Shares in all trading sessions and to deter and
detect violations of Exchange rules and applicable federal securities
laws.\36\
---------------------------------------------------------------------------

    \32\ The Exchange states that, while FINRA surveils trading on
the Exchange pursuant to a regulatory services agreement, the
Exchange is responsible for FINRA's performance under this
regulatory services agreement. See Notice, supra note 4, 79 FR at
24771, n.34.
    \33\ For a list of the current members of ISG, see
www.isgportal.org. The Exchange states that not all components of
the Disclosed Portfolio may trade on markets that are members of ISG
or with which the Exchange has in place a comprehensive surveillance
sharing agreement. See id. at 24771, n.35.
    \34\ See id. at 24771.
    \35\ See id.
    \36\ See id. at 24770-71.
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    In support of this proposal, the Exchange has made representations,
including:
    (1) The Shares will conform to the initial and continued listing
criteria under Nasdaq Rule 5735.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.

    (3) The Exchange represents that trading in the Shares will be
subject to the existing trading surveillances, administered by FINRA on
behalf of the Exchange, which are designed to detect violations of
Exchange rules and applicable federal securities laws and that these
procedures are adequate to properly monitor Exchange trading of the
Shares in all trading sessions and to deter and detect violations of
Exchange rules and applicable federal securities laws.
    (4) Prior to the commencement of trading, the Exchange will inform
its members in an Information Circular of the special characteristics
and risks associated with trading the Shares. Specifically, the
Information Circular will discuss the following: (a) The procedures for
purchases and redemptions of Shares in Creation Units (and that Shares
are not individually redeemable); (b) Nasdaq Rule 2310, which imposes
suitability obligations on Nasdaq members with respect to recommending
transactions in the Shares to customers; (c) how information regarding
the Intraday Indicative Value is disseminated; (d) the risks involved
in trading the Shares during the Pre-Market and Post-Market Sessions
when an updated Intraday Indicative Value will not be calculated or
publicly disseminated; (e) the requirement that members deliver a
prospectus to investors purchasing newly issued Shares prior to or
concurrently with the confirmation of a transaction; and (f) trading
information.\37\
---------------------------------------------------------------------------

    \37\ See id. at 24771.
---------------------------------------------------------------------------

    (5) For initial and continued listing, the Fund will be in
compliance with Rule 10A-3 under the Act.\38\
---------------------------------------------------------------------------

    \38\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (6) While the Fund is permitted to invest without restriction in
corporate bonds, the Adviser expects that, under normal market
conditions, generally, with respect to at least 75% of the Fund's
portfolio, a corporate bond will have, at the time of original
issuance, $100 million or more par amount outstanding to be considered
as an eligible investment.
    (7) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment),
including Rule 144A securities deemed illiquid by the Adviser.
    (8) The Fund will limit its investments in asset-backed securities
and non-agency mortgage-backed securities (in the aggregate) to 20% of
its net assets.
    (9) The Fund will not invest in non-U.S. equity securities.
    (10) A minimum of 100,000 Shares will be outstanding at the
commencement of trading.

This approval order is based on all of the Exchange's representations,
including those set forth in the Notice.

IV. Conclusion

    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \39\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\40\ that the proposed rule change (SR-NASDAQ-2014-041), as
modified by Amendment No. 1, be, and it hereby is, approved.
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    \40\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\41\
---------------------------------------------------------------------------

    \41\ 17 CFR 200.30-3(a)(12).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-14202 Filed 6-17-14; 8:45 am]
BILLING CODE 8011-01-P


ast Baton Rouge 7806 Entergy Gulf States Inc 1391 Louisiana 1 22 2A LA East Baton Rouge 7806 Entergy Gulf States Inc 1391 Louisiana 1 22 4A LA East Baton Rouge 7127 Georgia Pacific Corp 10612 Georgia Pacific Port Hudson 322122 GEN1 LA East Baton Rouge 6564 Formosa Plastics Corp 54518 Formosa Plastics 325211 GT1 LA East Baton Rouge 6564 Formosa Plastics Corp 54518 Formosa Plastics 325211 GT2 LA East Baton Rouge 6564 Formosa Plastics Corp 54518 Formosa Plastics 325211 ST2 LA East Baton Rouge 6564 Formosa Plastics Corp 54518 Formosa Plastics 325211 GT3 LA East Baton Rouge 6564 Formosa Plastics Corp 54518 Formosa Plastics 325211 ST1 LA East Baton Rouge 7806 Entergy Gulf States Inc 1392 Louisiana 2 22 11 LA East Baton Rouge 7806 Entergy Gulf States Inc 1392 Louisiana 2 22 12 LA East Baton Rouge 7806 Entergy Gulf States Inc 1392 Louisiana 2 22 10 LA Evangeline 3737 Cleco Evangeline LLC 1396 Evangeline Power Station 22 U6CT LA Evangeline 3737 Cleco Evangeline LLC 1396 Evangeline Power Station 22 U7CT LA Evangeline 3737 Cleco Evangeline LLC 1396 Evangeline Power Station 22 7 LA Evangeline 3737 Cleco Evangeline LLC 1396 Evangeline Power Station 22 6 LA Evangeline 3737 Cleco Evangeline LLC 1396 Evangeline Power Station 22 U72 LA Iberia 9681 Jeanerette Sugar Co Inc 10736 Jeanerette Sugar 311 1 LA Iberia 6529 Exxon Mobil Production Co 50726 ExxonMobil Blue Water Gas Plant 211 4 LA Iberia 6529 Exxon Mobil Production Co 50726 ExxonMobil Blue Water Gas Plant 211 3 LA Iberia 6529 Exxon Mobil Production Co 50726 ExxonMobil Blue Water Gas Plant 211 2 LA Iberia 6529 Exxon Mobil Production Co 50726 ExxonMobil Blue Water Gas Plant 211 5 LA Iberia 6529 Exxon Mobil Production Co 50726 ExxonMobil Blue Water Gas Plant 211 1 LA Iberia 11415 M A Patout & Sons Ltd 51008 M A Patout Son Ltd 311 1000 LA Iberia 11415 M A Patout & Sons Ltd 51008 M A Patout Son Ltd 311 2000 LA Iberville 15237 PCS Nitrogen LP 50341 PCS Nitrogen Fertilizer LP 325 GEN1 LA Iberville 7806 Entergy Gulf States Inc 1394 Willow Glen 22 4 LA Iberville 7806 Entergy Gulf States Inc 1394 Willow Glen 22 5 LA Iberville 7806 Entergy Gulf States Inc 1394 Willow Glen 22 2 LA Iberville 7806 Entergy Gulf States Inc 1394 Willow Glen 22 1 LA Iberville 7806 Entergy Gulf States Inc 1394 Willow Glen 22 3 LA Iberville 15137 Plaquemine City of 1455 Plaquemine 22 2 Page 185 Web_ existingunits_ SS LA Iberville 15137 Plaquemine City of 1455 Plaquemine 22 1 LA Iberville 3131 Carville Energy LLC 55404 Carville Energy LLC 22 CTG2 LA Iberville 3131 Carville Energy LLC 55404 Carville Energy LLC 22 STG LA Iberville 3131 Carville Energy LLC 55404 Carville Energy LLC 22 CTG1 LA Iberville 7191 Georgia Gulf Corp 55051 Georgia Gulf Plaquemine 325188 X773 LA Iberville 7191 Georgia Gulf Corp 55051 Georgia Gulf Plaquemine 325188 X775 LA Iberville 7191 Georgia Gulf Corp 55051 Georgia Gulf Plaquemine 325188 X774 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN3 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN5 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN1 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN2 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN4 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN6 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN7 LA Iberville 5347 Dow Chemical Co 52006 LaO Energy Systems 325 GEN8 LA Jackson 18155 Stone Container Corp 50810 Stone Container Hodge 322122 NO 9 LA Jackson 18155 Stone Container Corp 50810 Stone Container Hodge 322122 NO 7 LA Jackson 18155 Stone Container Corp 50810 Stone Container Hodge 322122 NO 6 LA Jackson 18155 Stone Container Corp 50810 Stone Container Hodge 322122 NO 8 LA Jackson 18155 Stone Container Corp 50810 Stone Container Hodge 322122 NO 4 LA Jefferson 6529 Exxon Mobil Production Co 54927 ExxonMobil Grand Isle Gas 211 2 LA Jefferson 6529 Exxon Mobil Production Co 54927 ExxonMobil Grand Isle Gas 211 1 LA Jefferson 6529 Exxon Mobil Production Co 54927 ExxonMobil Grand Isle Gas 211 3 LA Jefferson 11241 Entergy Louisiana Inc 1403 Nine Mile Point 22 6( 4)


[Federal Register Volume 85, Number 134 (Monday, July 13, 2020)]
[Rules and Regulations]
[Pages 41925-41928]
[FR Doc No: 2020-13452]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R03-OAR-2019-0577; FRL-10010-63-Region 3]

Air Plan Approval; West Virginia; Redesignation and Maintenance
Plan for the West Virginia Portion of the Steubenville Sulfur Dioxide
Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is approving the
request from the State of West Virginia to redesignate to attainment
its respective portion of the Steubenville, Ohio-West Virginia multi-
state sulfur dioxide (SO2) nonattainment area (referred to
as the ``Steubenville Nonattainment Area'' or the ``Area'') for the
2010 1-hour SO2 primary national ambient air quality
standard (NAAQS) (also referred to as the ``2010 SO2
NAAQS''). EPA is also approving, as a revision to the West Virginia
state implementation plan (SIP), West Virginia's maintenance plan for
its portion of the Steubenville Nonattainment Area. Emissions of
SO2 in the Area have been reduced, and monitored ambient
SO2 readings in the nonattainment area are currently well
below the 2010 SO2 NAAQS.

DATES: This final rule is effective on August 12, 2020.

ADDRESSES: EPA has established a docket for this action under Docket ID
Number EPA-R03-OAR-2019-0577. All documents in the docket are listed on
the https://www.regulations.gov website. Although listed in the index,
some information is not publicly available, e.g., confidential business
information (CBI) or other information whose disclosure is restricted
by statute. Certain other material, such as copyrighted material, is
not placed on the internet and will be publicly available only in hard
copy form. Publicly available docket materials are available through
https://www.regulations.gov, or please contact the person identified in
the For Further Information Contact section for additional availability
information.

FOR FURTHER INFORMATION CONTACT: Sara Calcinore, Planning &
Implementation Branch (3AD30), Air & Radiation Division, U.S.
Environmental Protection Agency, Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103. The telephone number is (215) 814-
2043. Ms. Calcinore can also be reached via

electronic mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Background

    The Steubenville Nonattainment Area is comprised of a portion of
Jefferson County, Ohio and a portion of Brooke County, West
Virginia.\1\ On October 22, 2019 (84 FR 56385), EPA approved the
attainment plans for the Steubenville Nonattainment Area as well as new
emissions limits for the primary SO2 sources in the Area.
These sources include: (1) The American Electric Power (AEP) Cardinal
Power Plant (referred to as ``Cardinal Power Plant'') located in
Brilliant, Ohio; (2) the JSW Steel USA Ohio facility (JSW Steel) in
Mingo Junction, Ohio; (3) the Mingo Junction Energy Center, also in
Mingo Junction, Ohio; and (4) Mountain State Carbon (MSC) in
Follansbee, West Virginia.\2\ EPA redesignated the Ohio portion of the
Steubenville Nonattainment Area to attainment on November 29, 2019 (84
FR 65683).
---------------------------------------------------------------------------

    \1\ The Ohio portion of the nonattainment area included Cross
Creek Township, Steubenville Township, Warren Township, Wells
Township, and Steubenville City in Jefferson County. 40 CFR 81.336.
The West Virginia portion of the nonattainment area is the Cross
Creek Tax District in Brooke County. 40 CFR 81.349.
    \2\ The attainment plan for the Steubenville Nonattainment Area
included dispersion modeling demonstrating that the Steubenville
Nonattainment Area had attained the 2010 SO2 NAAQS based
on the allowable emissions from Cardinal Power Plant, JSW Steel,
Mingo Junction Energy Center, and MSC. The emissions limits for
Cardinal Power Plant, JSW Steel, and Mingo Junction Energy Center
are approved into the Ohio SIP under Chapter 3745-18. See 40 CFR
52.1870(c). The emissions limits for MSC are included in a consent
order dated September 29, 2017 (Consent Order Number CO-SIP-C-2017-
9), which is approved into the West Virginia SIP. 84 FR 56385
(October 22, 2019); 40 CFR 52.2520(d). The emissions limits for all
four facilities are permanent and Federally enforceable.
---------------------------------------------------------------------------

    On August 22, 2019, West Virginia submitted a request to
redesignate the West Virginia portion of the Steubenville Nonattainment
Area. On March 20, 2020 (85 FR 16038), EPA published a notice of
proposed rulemaking (NPRM) for the State of West Virginia. In the NPRM,
EPA proposed approval of West Virginia's request to redesignate to
attainment its portion of the Steubenville Nonattainment Area as well
as West Virginia's corresponding maintenance plan for the Area.

II. Summary of SIP Revision and EPA Analysis

    EPA reviewed West Virginia's redesignation request and found that
West Virginia's portion of the Steubenville Nonattainment Area
satisfies the Clean Air Act (CAA) section 107(d)(3)(E) requirements for
redesignation. EPA also found that West Virginia's maintenance plan for
the Area satisfies the requirements of CAA section 175A. EPA's
rationale for this action can be found in the March 20, 2020 NPRM.
    EPA received one adverse comment on the proposal. As discussed in
section III in this final rule's preamble, EPA concludes that West
Virginia has satisfied the relevant requirements of CAA section
107(d)(3)(E) for the redesignation of its portion of the Steubenville
Nonattainment Area. Therefore, EPA is redesignating West Virginia's
portion of the Steubenville Nonattainment Area to attainment for the
2010 SO2 NAAQS and is approving, as a revision to the West
Virginia SIP, the corresponding maintenance plan for the Area.

III. Public Comments and EPA Response

    EPA received one comment on the March 20, 2020 NPRM. The comment
and EPA's response are discussed below. The comment is included in the
docket for this action, available online at www.regulations.gov, Docket
ID: EPA-R03-OAR-2019-0577.
    Comment: On April 20, 2020, EPA received an anonymous comment on
the NPRM. The commenter questioned how West Virginia can confirm the
current compliance of the modeled facilities (i.e., Cardinal Power
Plant, JSW Steel, Mingo Junction Energy Center, and MSC) in the
Steubenville Nonattainment Area when three of the four facilities are
not within West Virginia's jurisdiction. The commenter requests that
EPA independently determine whether all four facilities are currently
in compliance with their modeled limits.
    EPA Response: States generally have the best information on the
compliance status of sources within their jurisdiction. Therefore, EPA
is primarily relying on Ohio to provide information on the compliance
status of the Ohio sources and West Virginia to provide information on
the compliance status of the West Virginia source. Ohio Environmental
Protection Agency (OEPA)'s request for redesignation confirmed that the
modeled facilities located in its portion of the Area (i.e., Cardinal
Power Plant, JSW Steel, and Mingo Junction Energy Center) are in full
compliance with their emission limits.\3\ EPA accepted and concurred
with this statement regarding compliance by Ohio sources explicitly in
its September 20, 2019 NPRM proposing approval of Ohio's redesignation
request and implicitly in its November 29, 2019 final rulemaking notice
(FRN). See 84 FR 49492 and 84 FR 65683.
---------------------------------------------------------------------------

    \3\ See also Appendix D of West Virginia's August 22, 2019
submittal included in the docket for this rulemaking action,
available online at https://www.regulations.gov, Docket ID: EPA-R03-
OAR-2019-0577.
---------------------------------------------------------------------------

    West Virginia has provided adequate assurance that MSC, the only
primary SO2 source within West Virginia's portion of the
Steubenville Nonattainment Area, is in compliance with its emissions
limits as well as other conditions of the September 29, 2017 consent
order (Consent Order Number CO-SIP-C-2017-9).\4\ Appendix C of West
Virginia's August 22, 2019 submittal includes documentation of MSC's
compliance with the consent order, including an August 9, 2016 letter
from MSC confirming the disconnection of the coke oven gas (COG)
pipeline to Mingo Junction Energy Center and a February 1, 2017 letter
verifying that the data acquisition and monitoring system required by
the consent order is operational.\5\ In the February 1, 2017 letter,
MSC also commits to submitting the quarterly reports required by the
consent order. EPA has reviewed the quarterly reports submitted by MSC
to the WVDEP from October 1, 2017 to March 31, 2020,\6\ and finds that
MSC is complying with the emissions limits, in accordance with the SIP-
approved consent order, that were used in the modeling demonstration
for the Steubenville Nonattainment Area.\7\
---------------------------------------------------------------------------

    \4\ As stated previously, the emissions limits in the September
29, 2017 consent order were used for the modeling included in the
attainment demonstration for the Steubenville Nonattainment Area.
The consent order is approved in the West Virginia SIP and is
permanent and Federally enforceable.
    \5\ The September 29, 2017 consent order (Consent Order Number
CO-SIP-C-2017-9) supersedes and replaces a previous consent order
(Consent Order Number CO-SIP-2015-14). Consent Order Number CO-SIP-
2015-14 required MSC to physically disconnect the COG pipeline
leading to Mingo Junction Energy Center by January 1, 2017. It also
required MSC to install, operate, and maintain a continuous
monitoring system (CMS) and submit quarterly reports to the West
Virginia Department of Environmental Protection (WVDEP) beginning
with the January 1 through March 31, 2017 quarter. MSC submitted the
August 9, 2016 and February 1, 2017 letters to WVDEP in order to
demonstrate compliance with these requirements of Consent Order
Number CO-SIP-2015-14. These requirements are also included in the
September 29, 2017 consent order that replaced Consent Order Number
CO-SIP-2015-14 and was approved into the West Virginia SIP. 84 FR
56385 (October 22, 2019); 40 CFR 52.2520(d).
    \6\ Consent Order Number CO-SIP-C-2017-9 was effective September
29, 2017. Therefore, the applicable period for determining
compliance with the emissions limits contained in the September 29,
2017 consent order is October 1, 2017 to March 31, 2020, which is
the most recent completed quarter.
    \7\ The quarterly reports are included in the docket for this
rulemaking, available online at https://www.regulations.gov, Docket
ID: EPA-R03-OAR-2019-0577.

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

    As mentioned previously, the emissions limits on Cardinal Power
Plant, JSW Steel, Mingo Junction Energy Center, and MSC are all
permanent and federally enforceable. These four sources are all subject
to monitoring, testing, recordkeeping, and reporting requirements to
assure compliance with the SO2 emissions limits. WVDEP and
OEPA have comprehensive programs to identify sources of violations of
the SO2 NAAQS and approved compliance and enforcement
programs to address violations. WVDEP has committed to continuing the
enforcement of all rules related to SO2 emissions in the
Steubenville Nonattainment Area and has verified that it has the legal
authority and necessary resources to actively enforce any violations of
its rules or permit provisions.
    EPA finds that MSC is complying with the emissions limits set forth
in the September 29, 2017 consent order. EPA also continues to believe
that the sources in the Ohio portion of the area are complying with
limits in the approved attainment plan, which West Virginia and EPA
rely upon in concluding that West Virginia's portion of the area is
attaining the standard. EPA continues to find that West Virginia's
August 22, 2019 submittal satisfies the CAA section 107(d)(3)(E)
requirements for the redesignation of the West Virginia portion of the
Steubenville Nonattainment Area. Therefore, EPA is finalizing the
redesignation of the West Virginia portion of the Steubenville
Nonattainment Area for the 2010 SO2 NAAQS.

IV. Final Action

    EPA is approving the redesignation of the West Virginia portion of
the Steubenville Nonattainment Area (i.e., Cross Creek Tax District in
Brooke County) from nonattainment to attainment of the 2010
SO2 NAAQS. EPA is also approving, as a revision to the West
Virginia SIP, West Virginia's maintenance plan for the Steubenville
Nonattainment Area. EPA has found that the maintenance plan
demonstrates maintenance of the SO2 NAAQS through 2030 in
the Steubenville Nonattainment Area and satisfies the requirements of
CAA section 175A.

V. Statutory and Executive Order Reviews

A. General Requirements

    Under the CAA, redesignation of an area to attainment and the
accompanying approval of the maintenance plan under CAA section
107(d)(3)(E) are actions that affect the status of a geographical area
and do not impose any additional regulatory requirements on sources
beyond those required by state law. A redesignation to attainment does
not in and of itself impose any new requirements, but rather results in
the application of requirements contained in the CAA for areas that
have been redesignated to attainment. Moreover, the Administrator is
required to approve a SIP submission that complies with the provisions
of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40
CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to
approve state choices, provided they meet the criteria of the CAA.
Accordingly, this action merely approves state law as meeting federal
requirements and does not impose additional requirements beyond those
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866.
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land as
defined in 18 U.S.C. 1151 or in any other area where EPA or an Indian
tribe has demonstrated that a tribe has jurisdiction. In those areas of
Indian country, the rule does not have tribal implications and will not
impose substantial direct costs on tribal governments or preempt tribal
law as specified by Executive Order 13175 (65 FR 67249, November 9,
2000).

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).

C. Petitions for Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by September 11, 2020. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action approving the redesignation of the Steubenville
Nonattainment Area and associated maintenance plan may not be
challenged later in proceedings to enforce its requirements. (See
section 307(b)(2).)

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
dioxide, Ozone, Particulate matter,

Reporting and recordkeeping requirements, Sulfur oxides, Volatile
organic compounds.

40 CFR Part 81

    Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: June 16, 2020.
Cosmo Servidio,
Regional Administrator, Region III.

    For the reasons stated in the preamble, EPA amends 40 CFR parts 52
and 81 as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart XX--West Virginia

0
2. In Sec.  52.2520, amend paragraph (e) by adding in the table an
entry for ``2010 Sulfur Dioxide Maintenance Plan'' at the end of the
table to read as follows:

Sec.  52.2520   Identification of plan.

* * * * *
    (e) * * *

----------------------------------------------------------------------------------------------------------------
   Name of non-regulatory SIP     Applicable geographic        State                              Additional
            revision                       area           submittal date   EPA approval date      explanation
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
2010 Sulfur Dioxide Maintenance  Steubenville Area              08/22/19  7/10/2020, [insert  Docket No. 2019-
 Plan.                            (Cross Creek Tax                         Federal Register    0577.
                                  District, Brooke                         citation].
                                  County).
----------------------------------------------------------------------------------------------------------------

0
3. Section 52.2525 is amended by adding paragraph (d) to read as
follows:

Sec.  52.2525   Control strategy: Sulfur dioxide.

* * * * *
    (d) EPA approves the maintenance plan for Cross Creek Tax District,
Brooke County, West Virginia, submitted by the Department of
Environmental Protection on August 22, 2019.

PART 81--DESIGNATION OF AREAS FOR AIR QUALITY PLANNING PURPOSES

0
4. The authority citation for part 81 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart C--Section 107 Attainment Status Designations

0
5. In Sec.  81.349 amend the table ``West Virginia--2010 Sulfur Dioxide
NAAQS [Primary]'' by revising the entry for ``Steubenville, OH-WV'' to
read as follows:

Sec.  81.349   West Virginia.

* * * * *

                West Virginia--2010 Sulfur Dioxide NAAQS
                                [Primary]
------------------------------------------------------------------------
                                                Designation
       Designated area 1 3       ---------------------------------------
                                     Date \2\              Type
------------------------------------------------------------------------
Steubenville, OH-WV.............       8/12/2020
    Brooke County (part)........       8/12/2020  Attainment.
        Area bounded by the            8/12/2020
         Cross Creek Tax
         District.

                              * * * * * * *
------------------------------------------------------------------------
\1\ Includes any Indian country in each county or area, unless otherwise
  specified. EPA is not determining the boundaries of any area of Indian
  country in this table, including any area of Indian country located in
  the larger designation area. The inclusion of any Indian country in
  the designation area is not a determination that the state has
  regulatory authority under the Clean Air Act for such Indian country.
\2\ This date is April 9, 2018, unless otherwise noted.
\3\ Mineral County will be designated by December 31, 2020.

* * * * *
[FR Doc. 2020-13452 Filed 7-10-20; 8:45 am]
BILLING CODE 6560-50-P


[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Notices]
[Pages 31801-31802]
[FR Doc No: 2018-14657]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

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

Extension:
    Rule 239; SEC File No. 270-638, OMB Control No. 3235-0687.

    Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission

(``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
    Rule 239 (17 CFR 230.239) provides exemptions under the Securities
Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.) and the Trust Indenture Act of 1939
(U.S.C. 77aaa et seq.) for security-based swaps issued by certain
clearing agencies satisfying certain conditions. The purpose of the
information required by Rule 239 is to make certain information about
security-based swaps that may be cleared by the registered or the
exempt clearing agencies available to eligible contract participants
and other market participants. We estimate that each registered or
exempt clearing agency issuing security-based swaps in its function as
a central counterparty will spend approximately 2 hours each time it
provides or update the information in its agreements relating to
security-based swaps or on its website. We estimate that each
registered or exempt clearing agency will provide or update the
information approximately 20 times per year. In addition, we estimate
that 75% of the 2 hours per response (1.5 hours) is prepared internally
by the clearing agency for a total annual reporting burden of 180 hours
(1.5 hours per response x 20 times x 6 respondents).
    Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden imposed by the collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
    An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid control number.
    Please direct your written comment to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington, DC 20549 or send an email to:
[email protected].

    Dated: July 3, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-14657 Filed 7-6-18; 8:45 am]
BILLING CODE 8011-01-P