[Federal Register: January 23, 2008 (Volume 73, Number 15)]
[Notices]
[Page 3952-3953]
[DOCID:fr23ja08-37]

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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OECA-2007-0127; FRL-8518-5]

Agency Information Collection Activities; Submission to OMB for
Review and Approval; Comment Request; NESHAP for Primary Aluminum
Reduction Plants (Renewal); EPA ICR Number 1767.05, OMB Control Number
2060-0360

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act (44 U.S.C. 3501
et seq.), this document announces that an Information Collection
Request (ICR) has been forwarded to the Office of Management and Budget
(OMB) for review and approval. This is a request to renew an existing
approved collection. The ICR which is abstracted below describes the
nature of the collection and the estimated burden and cost.

DATES: Additional comments may be submitted on or before February 22,
2008.

ADDRESSES: Submit your comments, referencing docket ID number EPA-HQ-
OECA-2007-0127, to (1) EPA online using http://www.regulations.gov (our preferred method), or by e-mail to<EMAIL_ADDRESS>or by mail to:

EPA Docket Center (EPA/DC), Environmental Protection Agency,
Enforcement and Compliance Docket and Information Center, mail code
2201T, 1200 Pennsylvania Avenue, NW., Washington, DC 20460, and (2) OMB
at: Office of Information and Regulatory Affairs, Office of Management
and Budget (OMB), Attention: Desk Officer for EPA, 725 17th Street,
NW., Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Mar[iacute]a Malav[eacute], Compliance
Assessment and Media Programs Division (Mail Code 2223A), Office of
Compliance, Environmental Protection Agency, 1200 Pennsylvania Avenue,
NW., Washington, DC 20460; telephone number:<PHONE_NUMBER>; fax
number:<PHONE_NUMBER>; e-mail address<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: EPA has submitted the following ICR to OMB
for review and approval according to the procedures prescribed in 5 CFR
1320.12. On March 9, 2007 (72 FR 10735), EPA sought comments on this
ICR pursuant to 5 CFR 1320.8(d). EPA received no comments. Any
additional comments on this ICR should be submitted to EPA and OMB
within 30 days of this notice.
    EPA has established a public docket for this ICR under docket ID
number EPA-OECA-2007-0127, which is available for public viewing online
at http://www.regulations.gov, or in person viewing at the Enforcement

and Compliance Docket and Information Center in the EPA Docket Center
(EPA/DC), EPA West, Room 3334, 1301 Constitution Avenue, NW.,
Washington, DC. The EPA Docket Center Public Reading Room is open from
8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal
holidays. The telephone number for the Reading Room is<PHONE_NUMBER>,
and the telephone number for the Enforcement and Compliance Docket is
(202) 566-1752.
    Use EPA's electronic docket and comment system at http://www.regulations.gov
, to submit or view public comments, access the

index listing of the contents of the docket, and to access those
documents in the docket that are available electronically. Once in the
system, select ``docket search,'' then key in the docket ID number
identified above. Please note that EPA's policy is that public
comments, whether submitted electronically or in paper, will be made
available for public viewing at http://www.regulations.gov, as EPA

receives them and without change, unless the comment contains
copyrighted material, Confidential Business Information (CBI), or other
information whose public disclosure is restricted by statute. For
further information about the electronic docket, go to http://www.regulations.gov
.

    Title: NESHAP for Primary Aluminum Reduction Plants (Renewal)
    ICR Numbers: EPA ICR Number 1767.05, OMB Control Number 2060-0360
    ICR Status: This ICR is scheduled to expire on February 29, 2008.
Under OMB regulations, the Agency may continue to conduct or sponsor
the collection of information while this submission is pending at OMB.
An Agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a currently
valid OMB control number. The OMB control numbers for EPA's regulations
in title 40 of the CFR, after appearing in the Federal Register when
approved, are listed in 40 CFR part 9, and displayed either by
publication in the Federal Register or by other appropriate means, such
as on the related collection instrument or form, if applicable. The
display of OMB control numbers in certain EPA regulations is
consolidated in 40 CFR part 9.
    Abstract: The National Emission Standards for Hazardous Air
Pollutants (NESHAP), for the regulations published at 40 CFR part 63,
subpart LL, were proposed on September 26, 1996 and promulgated on
October 7, 1997. These standards apply to the owners or operators of
new or existing potlines, paste production plants, or anode bake
furnaces associated with primary aluminum production and located at a
major source, and for each new pitch storage tank associated with a
primary aluminum reduction plant that is a major source of hazardous
air pollutants (HAP) emissions.

    In general, all NESHAP standards require initial notifications,
performance tests, and periodic reports. Owners or operators are also
required to maintain records of the occurrence and duration of any
startup, shutdown, or malfunction in the operation of an affected
facility, or any period during which the monitoring system is
inoperative. These notifications, reports, and records are essential in
determining compliance, and are required of all sources subject to
NESHAP.
    Any owner or operator subject to the provisions of this part shall
maintain a file of these measurements, and retain the file for at least
five years following the date of such measurements, maintenance
reports, and records. All reports are sent to the delegated state or
local authority. In the event that there is no such delegated
authority, the reports are sent directly to the United States
Environmental Protection Agency (EPA) regional office.
    Burden Statement: The annual public reporting and recordkeeping
burden for this collection of information is estimated to average 2,001
(rounded) hours per response. Burden means the total time, effort, or
financial resources expended by persons to generate, maintain, retain,
or disclose or provide information to or for a Federal agency. This
includes the time needed to review instructions; develop, acquire,
install, and utilize technology and systems for the purposes of
collecting, validating, and verifying information, processing and
maintaining information, and disclosing and providing information;
adjust the existing ways to comply with any previously applicable
instructions and requirements which have subsequently changed; train
personnel to be able to respond to a collection of information; search
data sources; complete and review the collection of information; and
transmit or otherwise disclose the information.
    Respondents/Affected Entities: Owners or operators of primary
aluminum reduction plants that are major sources of HAP emissions.
    Estimated Number of Respondents: 16.
    Frequency of Response: Initially, quarterly, semiannually, and on
occasion.
    Estimated Total Annual Hour Burden: 80,046 hours.
    Estimated Total Annual Costs: $7,221,357, which includes $0
annualized capital/startup costs, $91,348 annualized Operating and
Maintenance (O&M) costs, and $7,130,009 annualized labor costs.
    Changes in the Estimates: The decrease in burden to industry from
the most recently approved ICR is due to a decrease in the number of
existing primary aluminum reduction plants that are subject to NESHAP
subpart LL. The number of facilities in this renewal are less than in
the previous ICR due to a more accurate estimate of the number of
facilities and the closure of a number of facilities. The closures were
caused by economic factors such as the cost of energy. The reduction in
the number of respondents to this ICR also resulted in a decrease on
the average annual cost for capital/startup and operation and
maintenance costs to industry over the next three years of the ICR.

    Dated: January 15, 2008.
Sara Hisel-McCoy,
Director, Collection Strategies Division.
 [FR Doc. E8-1094 Filed 1-22-08; 8:45 am]

BILLING CODE 6560-50-P


[Federal Register Volume 83, Number 188 (Thursday, September 27, 2018)]
[Notices]
[Pages 48880-48884]
[FR Doc No: 2018-20997]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-84259; File No. SR-NSCC-2018-007]

Self-Regulatory Organizations; National Securities Clearing
Corporation; Notice of Filing and Immediate Effectiveness of a Proposed
Rule Change To Clarify the Rules That Describe the Buy-In Process

September 21, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on September 19, 2018, National Securities Clearing Corporation
(``NSCC'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I, II
and III below, which Items have been prepared by the clearing agency.
NSCC filed the proposed rule change pursuant to Section 19(b)(3)(A) of
the Act \3\ and Rule 19b-4(f)(4) thereunder.\4\ The Commission is
publishing this notice to solicit comments on the proposed rule change
from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A).
    \4\ 17 CFR 240.19b-4(f)(4).
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I. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    The proposed rule change consists of modifications to the Rules and
Procedures of NSCC (``Rules'') \5\ in order to enhance the rules and
procedures that describe the process by which a Member entitled to
receive securities from the Corporation, where such securities have
failed to deliver, may submit a notice of its intent to purchase, or
``buy-in,'' any or all of such securities and the processing of the
subsequent execution of that buy-in. The proposed changes would not
change how buy-ins are processed at NSCC, but would clarify and
simplify the rules that govern this processing, as described below.
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    \5\ Available at http://www.dtcc.com/legal/rules-and-procedures.
Capitalized terms used herein and not otherwise defined shall have
the meaning assigned to such terms in the Rules.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

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

1. Purpose
    NSCC is proposing to make certain revisions to Rule 10 (Failure to
Deliver on Security Balance Orders), Section 7 of Rule 11 (CNS System),
Section J of Procedure VII (CNS Accounting Operation), and Sections A
and B of Procedure X (Execution of Buy-Ins) of the Rules, which
describe the process by which a Member entitled to receive securities
(such quantity of securities is defined in the Rules as that Member's
``Long Position''), where such securities have failed to deliver, may
provide NSCC with notice of its intent to buy-in any or all of its Long
Position.\6\ These rules also describe the processing of the subsequent
execution of that buy-in.
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    \6\ Id.
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    First, the proposed changes would update and simplify the Rules by
removing statements that do not provide important information to
Members regarding the buy-in processing service, and NSCC believes this
proposed change would make the Rules clearer and more easily understood
by Members. For example, these proposed changes would remove
descriptions of processing that do not occur at NSCC, and descriptions
of rules that are not enforced by NSCC.
    Second, the proposed changes would revise, clarify and enhance the
transparency of these rules by, for example, (1) reorganizing the rules
governing buy-in processing such that they appear in fewer places in
the Rules, (2) revising certain statements and adding new descriptions
of buy-in processing to improve the transparency of these rules, and
(3) correcting and updating the uses of defined terms. NSCC believes
making these descriptions clearer would enhance Members' understanding
of their rights and obligations in connection with this service.
    Each of these proposed changes is described below.
(i) Overview of the Buy-In Process
    Under the Rules, a Member with a Long Position (referred to as the
``originator'') may submit to NSCC a notice of its intention to buy-in
any or all of its Long Position. Such notice is currently referred in
the Rules as ``Notice of Intention to Buy-In'' and a ``Buy-In Notice''
and must specify the quantity of securities, not exceeding the
originator's Long Position, it intends to buy-in (such quantity of
securities is referred to as the ``Buy-In Position''). As described in
Section J of Procedure VII of the Rules, Buy-In Notices may be either
(1) submitted directly to NSCC by the originator, and such Buy-In
Notices are referred to as an ``Original Buy-In Notice,'' or (2)
submitted directly to NSCC by the originator as a ``Buy-In
Retransmittal Notice'' after the originator has received notice that is
has failed to deliver securities away from NSCC. References to Buy-In
Notices include both Original Buy-In Notices and Buy-In Retransmittal
Notices.
    The day the Buy-In Notice is submitted to NSCC is referred to as N,
and N+1 and N+2 refer to the succeeding days. Original Buy-In Notices
expire on N+2 and Buy-In Retransmittal Notices expire on N+1. The Buy-
In Position is given high priority for allocation in NSCC's Continuous
Net Settlement (``CNS'') \7\ system through the completion of CNS
allocations in the day cycle on the day the buy-in expires.
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    \7\ CNS is an on-going accounting system which nets each day's
settling trades with the prior day's closing positions, producing
new Short or Long Positions per security issue for each Member. NSCC
is always the contra side for all positions. The positions are then
passed against the Member's Designated Depository positions and
available securities are allocated by book-entry. This allocation of
securities is accomplished through an evening cycle followed by a
day cycle. CNS and its operation are described in Rule 11 and
Procedure VII of the Rules. Supra note 5.
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    If, with respect to Original Buy-In Notices, a Buy-in Position
remains unfilled after the completion of the CNS allocation in the
evening cycle on N+1, or shortly after the receipt of a Buy-In
Retransmittal Notice, NSCC issues CNS Retransmittal Notices to those
Members with the oldest Short Positions in those securities in an
amount equal to the originator's Long Position. Such notices specify
the originator and the total quantity of securities requested in the
Buy-In Notice. If several Members have Short Positions with the same
age, all

such Members are issued CNS Retransmittal Notices, even if the total of
their Short Position exceeds the Buy-In Position.
    On the expiration of the Buy-In Notice, if the Buy-In Position is
still not satisfied, either in full or in part, the originator may
submit to NSCC a Buy-In Order, which notifies NSCC that the originator
intends to purchase the remaining securities (i.e., execute a buy-in
for the remaining securities). If a Member does not submit the Buy-In
Order by the time specified by NSCC, that Member's notice to NSCC of
its intent to submit a buy-in on a Buy-In Position (referred to as the
``Buy-In Intent'') is canceled. If a Member does submit the Buy-In
Order by that time, it may subsequently execute the buy-in and then
submit to NSCC a Buy-In Execution, notifying NSCC of the position and
price of the execution. NSCC would then allocate the quantity bought in
among the Members with Short Positions that have been identified on a
CNS Retransmittal Notice.
(ii) Rationale for the Proposed Changes
    In connection with a review of its Rules, NSCC identified
opportunities to improve and update the rules describing buy-in
processing in order to improve transparency to Members. For example,
NSCC identified opportunities to reorganize the Rules such that the
descriptions of buy-in processing occur in fewer places and the Rules
are less repetitive. NSCC also identified opportunities remove
statements that describe processing that occurs away from its
facilities, and does not provide Members with important information
regarding the processing of buy-ins at NSCC. Overall, NSCC believes
these proposed changes would simplify the Rules and, thereby, improve
Members' understanding of their rights and obligations, and NSCC's
rights and obligations, in connection with the processing of buy-ins.
(iii) Proposed Changes To Update and Simplify the Rules
    NSCC is proposing to update and simplify the Rules that describe
the processing of buy-ins by, for example, reorganizing the Rules and
removing repetitive descriptions, removing descriptions of processing
that occurs away from NSCC, and removing descriptions of discretionary
rules that does not enforce. NSCC believes that these proposed changes
would make the rules clearer and more easily understood by Members.
a. Proposed Change To Move All Processing Rules Into the Procedures
    NSCC is proposing to revise and simplify the Rules by moving all
processing rules out of Section 7 of Rule 11 of the Rules and into
Section J of Procedure VII of the Rules, and then revising these
statements to avoid repetition with statements that are already within
Section J of Procedure VII of the Rules. In connection with this
proposed change, NSCC would add to Section 7 of Rule 11 of the Rules a
cross-reference to the rules for buy-in processing set forth in
Procedure VII and the rules for execution of buy-ins set forth in
Procedure X of the Rules. NSCC believes that these proposed changes
would improve the transparency of the Rules by disclosing the
processing rules in fewer locations in the Rules, and would simplify
the Rules by removing repetitive statements.
b. Proposed Change To Remove Discretionary Fee for Unexecuted Buy-In
Notices
    NSCC is proposing to remove from the Rules a discretionary fee that
NSCC may charge if a Member submits a Buy-In Notice but does not later
execute that buy-in. Before adopting an automated process, the
processing of buy-ins by NSCC was largely manual.\8\ This fee was
intended to off-set the resources required to process a Buy-In Order
that was later not executed, and to encourage Members to submit a Buy-
In Order only when they intended to later execute that buy-in. NSCC has
not charged this fee since the automation of the processing of buy-ins,
over ten years ago. As such, NSCC is proposing to remove this
discretionary fee from Section 7(e) from Rule 11 of the Rules, in order
to reflect its practice of not charging this fee.
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    \8\ See Securities Exchange Act Release No. 53032 (December 28,
2005), 71 FR 1457 (January 9, 2006) (SR-DTC-2005-19), which approved
the proposal of NSCC's affiliate, The Depository Trust Company, to
adopt an internet-based facility for the processing of buy-ins
called SMART/Track for Buy-Ins.
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c. Proposed Change To Remove Discretion To Adjust Timing of Buy-In
Execution
    NSCC is proposing to revise a statement in Section J of Procedure
VII that a buy-in may be executed if the Buy-In Position has not been
satisfied by either a time specified in the Rules, or, due to market
events, such earlier time as established by NSCC upon five business
days' notice. NSCC has never exercised its discretion to adjust the
time when a buy-in may be executed as a result of market events.
Therefore, the proposed changes would remove this statement regarding
the possibility that such time would be modified.
d. Proposed Change To Remove Statements That Describe Internal
Processes
    NSCC is proposing to remove statements in Procedure X of the Rules
that describe the steps NSCC takes internally to reflect the execution
of a buy-in, but would retain the statement that such execution would
be reported to Members through an existing report on the business day
following the execution. NSCC believes that this proposed change would
simplify the Rules by removing the description of internal processing
that does not provide Members with important information regarding the
processing of buy-ins. NSCC believes that the proposed change would
continue to provide Members with information that is useful to them
regarding NSCC's obligation to report executions to Members. By
simplifying the Rules, NSCC believes that the proposed change would
make the Rules more transparent with respect to information that is
important to Members regarding buy-in processing.
e. Proposed Change To Remove Description of Buy-In Processing for
Balance Orders
    NSCC is proposing to remove Section B of Procedure X of the Rules,
which describes buy-in processing for transactions in Balance Order
Securities, and to revise Rule 10 to clarify that such processing
occurs away from NSCC and pursuant to the rules of the applicable
marketplace. Currently, Section B of Procedure X of the Rules describes
the rules that govern a buy-in for transactions in Balance Order
Securities. However, these rules apply to a process that occurs
entirely away from NSCC. The rules set forth in Section B of Procedure
X are intended to mirror Rule 11810 of the Financial Industry
Regulatory Authority (``FINRA''), which governs the processing of buy-
ins that are not otherwise subject to the rules of a registered
clearing agency.\9\
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    \9\ See FIRNA Rule 11810 (Buy-In Procedures and Requirements),
available at http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=9699.
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    NSCC is not involved in the processing of buy-ins for Balance Order
Securities, which are subject to either FIRNA Rule 11810, the rules of
a national securities exchange, or the rules of another registered
clearing agency, as applicable. Therefore, in order to avoid any
confusion regarding NSCC's involvement in this processing,

and to avoid providing Members with rules that are available elsewhere
(i.e., FINRA Rule 11810), NSCC is proposing to remove Section B of
Procedure X of the Rules. The proposed change would also revise Rule 10
of the Rules to clarify that these buy-ins are subject to the rules of
the applicable marketplace, which, NSCC believes, will provide Members
with clarity regarding where to find the rules that govern these buy-
ins.
(iv) Proposed Changes To Revise, Clarify and Enhance the Rules
    NSCC is proposing to revise and clarify the Rules in order to
enhance the transparency of the descriptions of buy-in processing.
These changes would include reorganizing the Rules by including
subheadings and moving statements regarding the same steps in buy-in
processing so they appear together. The proposed changes would also
clarify and simplify statements to more clearly and directly describe
the rights and obligations of both Members and NSCC in buy-in
processing. Finally, the proposed changes would correct the use of
certain defined terms. NSCC believes these proposed changes would
improve the readability of the Rules, making them more transparent to
Members and, thereby, improving Members' understanding of the
processing of buy-ins.
a. Proposed Change To Reorganize Section J.1 of Procedure VII of the
Rules
    NSCC is proposing to re-organize Section J.1 of Procedure VII of
the Rules by moving the definitions of terms used within this Section
to the same location at the beginning of the Section, and then using
subheadings throughout the Section to more clearly identify the
different steps in buy-in processing. Such subheadings would appear in
chronological order and would include, ``Defined Terms,'' ``Buy-In
Intent,'' ``CNS Allocation Priority and CNS Retransmittal Notices,''
and ``Buy-In Execution.'' This proposed change would enhance the
transparency of the Rules by more clearly identifying for Members the
defined terms used in this Section, and the different steps of buy-in
processing.
b. Proposed Change to Descriptions of Processing Buy-Ins for Municipal
Securities
    NSCC is proposing to amend Section 7 of Rule 11 of the Rules to
move information related to the processing of buy-ins for positions in
municipal securities out of a footnote and into the body of this Rule.
The proposed change would make this statement clearer to Members and
would improve their understanding of the processing of these buy-ins.
In connection with this change, NSCC is proposing changes that would
clarify Section J of Procedure VII of the Rules by creating titles for
the two existing subheadings. These subtitles would clarify that
Section J.1 describes rules applicable to buy-ins for positions in
equity securities and corporate debt securities, and Section J.2
describes rules applicable to buy-ins for positions in municipal
securities.
    Also in connection with these changes, NSCC is proposing to revise
the title of the current Section A of Procedure X of the Rules to
clarify that the rules in this section are applicable only to the
processing of buy-ins for positions in equity securities and corporate
debt securities. NSCC is also proposing to remove from Section A of
Procedure X of the Rules the description of processing of buy-ins for
positions in municipal securities, as these descriptions are already
included in both Section 7 of Rule 11 and Section J.2 of Procedure VII
of the Rules. NSCC believes that these revisions would provide Members
with both enhanced transparency with respect to the processing buy-ins
for positions in municipal securities, and while still simplifying the
Rules by removing repetitive statements.
c. Proposed Change To Clarify the Method of Delivery of Notices
    NSCC is proposing to revise references in Section J of Procedure
VII of the Rules to the ``filing'' of notices with NSCC, with the
``submission'' of such notices to NSCC. This proposed change would not
alter the meaning of these statements, but would describe the method of
delivering these notices to NSCC in a way that conforms to similar
statements in other places in the Rules.
d. Proposed Change To Revise Cut-Off Times in Buy-In Processing
    NSCC is proposing to revise references to the time, on the
applicable date, after which (1) a buy-in may be executed if the Buy-In
Position has not been satisfied, as provided for in Section J.1 of
Procedure VII of the Rules, and (2) Members with the oldest Short
Positions on the expiration date of a Buy-In Intent would be first held
liable for the execution of that buy-in, as provided for in the current
Section A of Procedure X of the Rules. Currently, both of these cut-off
times are specified in the Rules as 3:00 p.m. on the applicable date.
NSCC is proposing to change this time to the conclusion of the CNS
allocation in the day cycle, which generally occurs around 3:00 p.m.
EST each business day. The current specified time of 3:00 p.m. was
intended to align with the conclusion of the CNS allocation in the day
cycle because a Buy-In Position may be satisfied, in whole or in part,
during this allocation process. Therefore, NSCC believes that the
proposed change would more clearly specify the event that was intended
as the cut-off time trigger in both of these circumstances, and would
avoid any unintended consequences of this cut-off time occurring prior
to the completion of this CNS allocation.
e. Proposed Change To Clarify Submission of Buy-In Order and Buy-In
Execution
    NSCC is proposing to add statements to clarify the distinction
between the Buy-In Order and the subsequent Buy-In Execution notices.
Currently, Procedure X does not clearly specify that an originator must
submit a Buy-In Order on the expiration date of a Buy-In Intent, prior
to submitting a Buy-In Execution later that same day. In order to more
clearly identify these two, separate notices, and the consequences of
failing to properly submit either on the expiration date of the Buy-In
Order, the proposed changes would (1) revise existing statements to
clarify that the Buy-In Order and the Buy-In Execution are two
separate, required notifications, (2) relocate the statement that an
originator that has not submitted a Buy-In Order may not later submit a
Buy-In Execution and is required to recommence the buy-in process by
submitting a new Buy-In Intent, and (3) add a parallel statement that
an originator that has submitted a Buy-In Order but does not later
execute that buy-in must recommence the buy-in process be submitting a
new Buy-In Intent. These proposed changes would more clearly identify
the notifications that are required to be submitted in connection with
the execution of a buy-in, and the consequences of failing to submit
either of these notifications. NSCC believes that this proposed change
would improve the transparency of the Rules regarding Member's
obligations in connection with this process.
f. Proposed Change To Clarify Rules Regarding Execution of a Buy-In
    NSCC is proposing to clarify in Procedure X the process by which
buy-ins are executed. This proposed change would make clearer that an
originator must provide NSCC with the details of the execution after
the execution is completed to allow NSCC to reflect the positions by
journal entry. This proposed change would also provide

Members with notice that NSCC is not responsible for verifying the
terms of the an executed buy-in that are reported to NSCC by an
originator, and that any disputes regarding such terms should be
addressed away from NSCC. Finally, this proposed change would remove a
note that states a Buy-In Order should contain instructions regarding
the execution of buy-ins. This information is not required by NSCC in a
Buy-In Order. NSCC believes that this proposed change would provide
Members with more transparency regarding their rights and obligations
with respect to the execution of buy-ins by more clearly describing the
process.
g. Proposed Change To Revise and Correct Defined Terms
    NSCC is proposing to revise and correct the defined terms used in
the rules that describe buy-in processing. This proposed change would
revise the use of the term ``Notice of Intention to Buy-In'' and ``Buy-
In Notice,'' which are currently used interchangeably, with a new
defined term, ``Buy-In Intent.'' This proposed change would ensure
consistent use of one defined term to refer to this notice, and would
use a new term that is both brief and descriptive of the purpose of
this notice. In connection with this proposed change, NSCC would also
replace references to the ``Buy-In Notice'' in Sections E.3 and E.4 of
Procedure VII with ``Buy-In Intent'' and ``Buy-In Intent notices,'' as
applicable.
    NSCC is also proposing to revise a reference to ``tender offer'' in
Section J of Procedure VII of the Rules, to refer more generally to
``voluntary reorganizations.'' The sentence where this term appears
states that, with respect to securities subject to voluntary
reorganizations, Members may not submit a Buy-In Intent after the
expiration of the event. Currently the sentence only refers to the
expiration date of the tender offer, but was intended to more generally
include any voluntary reorganization events. NSCC believes that the
proposed change would clarify the intended meaning of this sentence.
    Finally, NSCC is proposing to correct and update the uses of terms
that are defined elsewhere in the Rules. For example, the proposed
changes would use the capitalized, defined terms for Long Position and
Short Position, when appropriate. In connection with this change, the
proposed changes would also correct internal cross-references to refer
to ``Section,'' where the term ``paragraph'' is currently used, and to
refer to ``Procedure,'' where the term ``section'' is currently used,
for example. NSCC believes that this proposed change would improve
Members' ability to understand these Rules.
2. Statutory Basis
    NSCC believes that the proposed changes are consistent with the
Section 17A(b)(3)(F) of the Act, which requires, in part, that the
rules of a registered clearing agency be designed to promote the prompt
and accurate clearance and settlement of securities transactions, for
the reasons described below.\10\ As described above, the proposed rule
change is designed to increase transparency of the Rules by
simplifying, updating and revising the descriptions of the processing
of buy-ins. The buy-in process promotes the prompt and accurate
clearance and settlement of securities transactions by providing
Members with Long Positions with a process that facilitates the
purchase of securities when delivery of such securities previously
failed. NSCC believes that the proposed changes to enhance the
description of this process in the Rules and help Members to more
readily understand their rights and obligations in connection with the
use of this service would facilitate the functioning of the buy-in
process. As such, the proposed changes would promote the prompt and
accurate clearance and settlement of securities transactions,
consistent with Section 17A(b)(3)(F) of the Act.\11\
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    \10\ 15 U.S.C. 78q-1(b)(3)(F).
    \11\ Id.
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    Rule 17Ad-22(e)(23)(i) under the Act requires, in part, that NSCC
establish, implement, maintain and enforce written policies and
procedures reasonably designed to provide for publicly disclosing all
relevant rules and material procedures.\12\ As described above, the
proposed rule change would improve the transparency, clarity and
accuracy of the Rules such that these provisions of the Rules would
better disclose all relevant and material aspects of the buy-in
process. Therefore, NSCC believes the proposed rule changes are
consistent with Rule 17Ad-22(e)(23)(i).\13\
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    \12\ 17 CFR 240.17Ad-22(e)(23)(i).
    \13\ Id.
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(B) Clearing Agency's Statement on Burden on Competition

    NSCC does not believe that the proposed rule changes would have any
impact, or impose any burden, on competition. The proposed rule changes
are designed to improve Members' understanding of their rights and
obligations with respect to the use of the buy-in processing service.
These proposed changes would be applicable to all Members that utilize
this service, and would not alter Members' rights or obligations.
Therefore, NSCC does not believe that the proposed rule changes would
have any impact on competition.

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

    NSCC has not solicited or received any written comments relating to
this proposal. NSCC will notify the Commission of any written comments
that it receives.

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

    The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \14\ and paragraph (f) of Rule 19b-4
thereunder.\15\ At any time within 60 days of the filing of the
proposed rule change, the Commission summarily may temporarily suspend
such rule change if it appears to the Commission that such action is
necessary or appropriate in the public interest, for the protection of
investors, or otherwise in furtherance of the purposes of the Act.
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-NSCC-2018-007 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NSCC-2018-007. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent

amendments, all written statements with respect to the proposed rule
change that are filed with the Commission, and all written
communications relating to the proposed rule change between the
Commission and any person, other than those that may be withheld from
the public in accordance with the provisions of 5 U.S.C. 552, will be
available for website viewing and printing in the Commission's Public
Reference Room, 100 F Street NE, Washington, DC 20549 on official
business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of
the filing also will be available for inspection and copying at the
principal office of NSCC and on DTCC's website (http://dtcc.com/legal/sec-rule-filings.aspx). All comments received will be posted without
change. Persons submitting comments are cautioned that we do not redact
or edit personal identifying information from comment submissions. You
should submit only information that you wish to make available
publicly. All submissions should refer to File Number SR-NSCC-2018-007
and should be submitted on or before October 18, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\16\
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    \16\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-20997 Filed 9-26-18; 8:45 am]
BILLING CODE 8011-01-P