[Federal Register Volume 84, Number 149 (Friday, August 2, 2019)]
[Notices]
[Page 37859]
[FR Doc No: 2019-16491]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 2727-092]

Notice of Availability of Final Environmental Assessment; Black
Bear Hydro Partners, LLC

    In accordance with the National Environmental Policy Act of 1969
and the Federal Energy Regulatory Commission's (Commission)
regulations, 18 CFR part 380, the Office of Energy Projects has
reviewed the application for the relicensing of the Ellsworth
Hydroelectric Project, located on the Union River in Hancock County,
Maine, and has prepared a Final Environmental Assessment (FEA) for the
project.
    The FEA contains staff's analysis of the potential environmental
impacts of the project and concludes that licensing the project, with
appropriate environmental protective measures, would not constitute a
major federal action that would significantly affect the quality of the
human environment.
    A copy of the FEA is available for review at the Commission in the
Public Reference Room or may be viewed on the Commission's website at
http://www.ferc.gov using the eLibrary link. Enter the docket number
excluding the last three digits in the docket number field to access
the document. For assistance, contact FERC Online Support at
<EMAIL_ADDRESS>(866) 208-3676 (toll free), or (202) 502-
8659 (TTY).
    You may also register online at http://www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    For further information, contact Dr. Nicholas Palso at (202) 502-
8854, or at<EMAIL_ADDRESS>
    Dated: July 29, 2019.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2019-16491 Filed 8-1-19; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 79, Number 19 (Wednesday, January 29, 2014)]
[Notices]
[Pages 4802-4803]
[FR Doc No: 2014-01695]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2010-0027]

Hours of Service of Drivers: RockTenn, Application for Renewal of
Exemption

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

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

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SUMMARY: RockTenn has requested a renewal of its exemption from certain
provisions of the hours-of-service (HOS) requirements for drivers of
property-carrying vehicles. RockTenn currently holds an exemption for
the period April 17, 2012, through April 16, 2014 for 11 shipping
department employees and occasional substitute commercial driver's
license (CDL) holders who transport paper mill products over a 275-foot
stretch of public road between its shipping and receiving locations.
RockTenn requested an exemption from the 14-hour rule and the
requirement for 10 consecutive hours off duty before the start of the
work day. The renewal of the exemption would allow these individuals
occasionally to drive after the 14th hour after coming on duty and
allow them to return to work following 8 consecutive hours off-duty.
FMCSA requests public comment on the RockTenn application for
exemption.

DATES: If granted, this exemption would be effective during the period
of April 17, 2014 through April 16, 2016. Comments must be received on
or before February 28, 2014.

ADDRESSES: You may submit comments identified by Federal Docket
Management System Number FMCSA-2010-0027 by any of the following
methods:
     Federal eRulemaking Portal: Go to www.regulations.gov. In
the ENTER KEYWORD OR ID box enter FMCSA-2010-0027 and click on the tab
labeled SEARCH. On the ensuing page, click on any tab labeled SUBMIT A
COMMENT on the extreme right of the page and a page should open that is
titled ``Submit a Comment.'' You may identify yourself under section 1,
ENTER INFORMATION, or you may skip section 1 and remain anonymous. You
enter your comments in section 2, TYPE COMMENT & UPLOAD FILE. When you
are ready to submit your comments, click on the tab labeled SUBMIT.
Your comment is then submitted to the docket; and you will receive a
tracking number.
     Fax: 1-202-493-2251.
     Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Ground
Floor, Room W12-140, Washington, DC 20590-0001.
     Hand Delivery: West Building, Ground Floor, Room W12-140,
1200 New Jersey Avenue SE., Washington, DC, between 9 a.m. and 5 p.m.
e.t., Monday through Friday, except Federal holidays.
    Instructions: All submissions must include the Agency name and
docket number. For detailed instructions on submitting comments and
additional information on the exemption process, see the Public
Participation heading below. Note that all comments received will be
posted without change to www.regulations.gov, including any personal
information provided. Please see the Privacy Act heading below.
    Docket: For access to the docket to read background documents or
comments received, go to www.regulations.gov at any time, and in the
ENTER KEYWORD OR ID box enter FMCSA-2010-0027 and click on the tab
labeled SEARCH.
    Privacy Act: Anyone is able to search the electronic form of all
comments received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review the
U.S. Department of Transportation's online privacy policy at
www.dot.gov/privacy or the complete Privacy Act Statement in the
Federal Register published on January 17, 2008 (73 FR 3316).
    Public Participation: The www.regulations.gov Web site is generally
available 24 hours each day, 365 days each year. You can obtain
electronic submission and retrieval help and guidelines under the
``help'' section of the www.regulations.gov Web site. If you want us to
notify you that we received your comments, please include a self-
addressed, stamped envelope or postcard or print the acknowledgement
page that appears after submitting comments online.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Yager, Chief, FMCSA Driver
and Carrier Operations Division; Office of Carrier, Driver and Vehicle
Safety Standards, Telephone:<PHONE_NUMBER>. Email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

RockTenn Application for Exemption

    The HOS rules in 49 CFR 395.3(a)(1) and (a)(2) prohibit a property-
carrying CMV driver from driving a CMV after the 14th hour after coming
on duty following 10 consecutive hours off duty. Under 49 U.S.C. 31315
and 31136(e), FMCSA may grant an exemption from the HOS requirements
for a maximum 2-year period if it finds such exemption would likely
achieve a level of safety that is equivalent to, or greater than, the
level that would be achieved absent such exemption. The procedures for
requesting an exemption (including renewals) are prescribed in 49 CFR
part 381.

    RockTenn (USDOT 153734) operates a paper mill located in
Chattanooga, Tennessee, its principal place of business. Its shipping
and receiving departments are on opposite sides of the paper mill,
requiring driver/employees to travel on a public road to shuttle
trailers as needed. These drivers utilize this public road--Compress
Street--an average of forty times per day to go from their shipping to
receiving department and to load their trailers in the shipping
department. These drivers do not transport any material farther than
the paper mill lots and/or Compress Street. The distance traveled on
Compress Street is approximately 275 feet in one direction, and one
tractor is used to perform this work. Because the material being
transported is received from or destined for other States, the local
travel is interstate in nature.
    The initial RockTenn exemption application for relief from the HOS
rule was submitted in 2009; a copy of the application is in the docket.
That application fully described the nature of shipping operations
encountered by CMV drivers employed by RockTenn.
    RockTenn's shipping department currently works 12-hour shifts for 4
days, and then allows employees 4 days off duty. The schedule is
subject to change. Usually there are two shipping department employees
on each shift. One employee drives a fork-lift truck loading trailers
with finished goods, and the other operates the tractor shuttling
trailers. These employees do not drive a CMV continuously during their
shift(s).
    At times, RockTenn may operate on three 8-hour shifts with
employees working a double (16-hour) shift when ``rotating back.''
According to RockTenn, the problem arises because of the double-shift,
and also on occasion when a shipping department driver does not report
for work as scheduled. On a Monday, for example, if an individual
worked the weekend, his or her shift would normally have to ``hurry
back'' within 8 hours. As a result of the mandatory 10 hours off-duty
requirement for drivers, without the exemption RockTenn would be
required to schedule these drivers' shifts to start later than other
employees. This would create at least 2 hours when the company cannot
load or transport trailers with finished goods due to the absence of
the drivers. Furthermore, as a result of the 14-hour driving windows,
they would ``work short'' without the exemption, creating on-time
delivery issues for other employees, who are allowed to work an entire
``double shift'' (16 hours) when necessary.
    RockTenn requested a limited exemption from 49 CFR part 395 for its
shipping department CMV drivers, as well as others with a valid CDL who
on occasion must substitute, allowing all such drivers to drive as late
as the 16th hour since coming on duty and return to work with a minimum
of at least 8 hours off duty. If exempt from the normal HOS
requirements, these employees could follow the same work schedule as
other RockTenn employees on their shift, and would be able to work for
the full 16 hours of a ``double shift.'' RockTenn could therefore
minimize the chances of delayed shipments that might occur if their
drivers were not allowed to work the same schedule as other employees.
    RockTenn acknowledged in its application that these drivers would
still be subject to all of the other FMCSRs, including possessing a
CDL, random drug testing, medical certification, and other driver-
qualification requirements.
    A copy of RockTenn's application for exemption renewal is available
for review in the docket for this notice.

Terms of the Exemption

Period of the Exemption

    The requested exemption is proposed to be effective April 17, 2014,
through 11:59 p.m. on April 16, 2016, for drivers employed by RockTenn
operating CMVs on Compress Street in Chattanooga, Tennessee, between
the company's shipping and receiving departments.

Extent of the Exemption

    The exemption would be restricted to drivers employed by RockTenn
operating CMVs on the route specified above. This exemption would be
strictly limited to the provisions of 49 CFR 395.3(a)(1), referring to
a required minimum of 10 hours off duty before the start of a duty
period, and 395.3(a)(2), commonly referred to as the ``14-hour rule.''
When operationally necessary, drivers would be allowed up to a 16-hour
duty period and no fewer than 8 hours off duty prior to the duty
period.

Preemption

    During the period this exemption would be in effect, no State would
be allowed to enforce any law or regulation that conflicted with or was
inconsistent with this exemption with respect to a firm or person
operating under the exemption (49 U.S.C. 31315(d)).

Notification to FMCSA

    RockTenn would be required to notify FMCSA within 5 business days
of any accident (as defined in 49 CFR 390.5), involving any of the
motor carrier's CMVs operating under the terms of this exemption. The
notification would be required to include the following information:
    a. Date of the accident,
    b. City or town, and State, in which the accident occurred, or
closest to the accident scene,
    c. Driver's name and driver's license number,
    d. Vehicle number and state license number,
    e. Number of individuals suffering physical injury,
    f. Number of fatalities,
    g. The police-reported cause of the accident,
    h. Whether the driver was cited for violation of any traffic laws,
motor carrier safety regulations, and
    i. The total driving time and total on-duty time period prior to
the accident.

Reports filed under this provision would be emailed to<EMAIL_ADDRESS>
Termination

    The FMCSA does not believe the drivers covered by this exemption,
if granted, would experience any deterioration of their safety record.
However, should this occur, FMCSA would take all steps necessary to
protect the public interest, including revocation of the exemption. The
FMCSA would immediately revoke the exemption for failure to comply with
its terms and conditions.

    Issued on: January 10, 2014.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2014-01695 Filed 1-28-14; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 81, Number 107 (Friday, June 3, 2016)]
[Notices]
[Page 35789]
[FR Doc No: 2016-13175]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Internal Agency Docket No. FEMA-4268-DR; Docket ID FEMA-2016-0001]

Mississippi; Amendment No. 6 to Notice of a Major Disaster
Declaration

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice.

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SUMMARY: This notice amends the notice of a major disaster declaration
for the State of Mississippi (FEMA-4268-DR), dated March 25, 2016, and
related determinations.

DATES: Effective May 19, 2016.

FOR FURTHER INFORMATION CONTACT: Dean Webster, Office of Response and
Recovery, Federal Emergency Management Agency, 500 C Street SW.,
Washington, DC 20472,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The notice of a major disaster declaration
for the State of Mississippi is hereby amended to include the following
areas among those areas determined to have been adversely affected by
the event declared a major disaster by the President in his declaration
of March 25, 2016.

    Issaquena and Lawrence Counties for Public Assistance.

The following Catalog of Federal Domestic Assistance Numbers (CFDA)
are to be used for reporting and drawing funds: 97.030, Community
Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling;
97.033, Disaster Legal Services; 97.034, Disaster Unemployment
Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048,
Disaster Housing Assistance to Individuals and Households in
Presidentially Declared Disaster Areas; 97.049, Presidentially
Declared Disaster Assistance--Disaster Housing Operations for
Individuals and Households; 97.050, Presidentially Declared Disaster
Assistance to Individuals and Households--Other Needs; 97.036,
Disaster Grants--Public Assistance (Presidentially Declared
Disasters); 97.039, Hazard Mitigation Grant.

W. Craig Fugate,
Administrator, Federal Emergency Management Agency.
[FR Doc. 2016-13175 Filed 6-2-16; 8:45 am]
 BILLING CODE 9111-23-P


[Federal Register Volume 83, Number 36 (Thursday, February 22, 2018)]
[Notices]
[Pages 7824-7827]
[FR Doc No: 2018-03567]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82721; File No. SR-PEARL-2018-01]

Self-Regulatory Organizations; MIAX PEARL LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Rule
517A, Aggregate Risk Manager for EEMs (``ARM-E''), and Rule 517B,
Aggregate Risk Manager for Market Makers (``ARM-M'')

February 15, 2018.
    Pursuant to the provisions of 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 February 6, 2018, MIAX PEARL, LLC (``MIAX
PEARL'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange is filing a proposal to amend Exchange Rule 517A,
Aggregate Risk Manager for EEMs (``ARM-E''), and Rule 517B, Aggregate
Risk Manager for Market Makers (``ARM-M'').
    The text of the proposed rule change is available on the Exchange's
website at http://www.miaxoptions.com/rule-filings/pearl at MIAX
PEARL's principal office, and at the Commission's Public Reference
Room.

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

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

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

1. Purpose
    The Exchange proposes to amend Rule 517A, Aggregate Risk Manager
for EEMs (``ARM-E''), and Rule 517B, Aggregate Risk Manager for Market
Makers (``ARM-M''), to enhance the Aggregate Risk Manager (``ARM'')
protections available to Members \3\ on the Exchange. Specifically, the
Exchange proposes to adopt a single side protection (``SSP'') feature,
which is an additional, optional, and more granular feature of the ARM
protection that is currently offered by the Exchange. Accordingly, the
Exchange proposes to modify (i) Interpretations and Policies of Rule
517A, to adopt new subsection .02, EEM Single Side Protection; and (ii)
Interpretations and Policies .01, of Rule 517B, to adopt new subsection
(c), Market Maker Single Side Protection.
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    \3\ The term ``Member'' means an individual or organization that
is registered with the Exchange pursuant to Chapter II of the MIAX
PEARL Rules for purposes of trading on the Exchange as an
``Electronic Exchange Member'' or ``Market Maker.'' Members are
deemed ``members'' under the Exchange Act. See Exchange Rule 100.
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    The Exchange currently offers a number of risk protection
mechanisms to its Members. One important risk protection mechanism is
the ARM. The purpose of the ARM is to remove the Member from the
market, once certain pre-determined trading limit thresholds (set up in
advance by the Member) have been triggered, to limit the risk exposure
of the Member.
    The Exchange now proposes to further enhance the ARM to introduce
an SSP feature. The SSP feature, which is optional, will provide an
additional level of granularity to the ARM, as this protection will
apply only to quotes \4\ and orders on the same side (bid or offer) of
an individual option.\5\ Members who avail themselves of the SSP
feature will have even greater precision to tailor their risk tolerance
level.
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    \4\ The term ``quote'' or ``quotation'' means a bid or offer
entered by a Market Maker as a firm order that updates the Market
Maker's previous bid or offer, if any. When the term order is used
in these Rules and a bid or offer is entered by the Market Maker in
the option series to which such Market Maker is registered, such
order shall, as applicable, constitute a quote or quotation for
purposes of these Rules. See Exchange Rule 100.
    \5\ The term ``individual option'' means an option contract that
is either a put or a call, covering a specific underlying security
and having a specific exercise price and expiration date. See
Exchange Rule 100.
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    To implement the SSP feature for Electronic Exchange Members \6\
the Exchange proposes to adopt new subsection .02 to Interpretations
and Policies of Rule 517A, entitled EEM Single Side Protection.
Subsection .02 will provide that an EEM may determine to engage the EEM
Single Side Protection (``SSP'') feature for orders delivered via the
MEO Interface \7\ by MPID.\8\ If engaged, if the full remaining size of
an EEM's order, in an individual option, is exhausted by a trade, the
System \9\ will trigger the SSP. When triggered, the System will cancel
all open orders and block all new inbound orders delivered via the MEO
Interface, for that particular side of that individual option for that
MPID. The System will provide a notification message to the EEM that
the SSP has been triggered. The block will remain in effect until the
EEM notifies the Exchange (in a manner required by the

Exchange and communicated to Members by Regulatory Circular) \10\ to
reset the SSP (``SSP Reset''). The SSP feature is optionally available
and may be enabled for an EEM's MPID. Additionally, the Exchange notes
that Intermarket Sweep Orders \11\ are not eligible for EEM Single Side
Protection.
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    \6\ The term ``Electronic Exchange Member'' or ``EEM'' means the
holder of a Trading Permit who is a Member representing as agent
Public Customer Orders or Non-Customer Orders on the Exchange and
those non-Market Maker Members conducting proprietary trading.
Electronic Exchange Members are deemed ``members'' under the
Exchange Act. See Exchange Rule 100.
    \7\ The term ``MEO Interface'' means a binary order interface
used for submitting certain order types (as set forth in Rule 516)
to the MIAX PEARL System. See Exchange Rule 100.
    \8\ The term ``MPID'' means unique market participant
identifier. See Exchange Rule 100.
    \9\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
    \10\ The Exchange notes that the manner by which Members will be
required to notify the Exchange to remove the block will be similar
to that of MIAX Options. See MIAX Options Regulatory Circular 2018-
04, January 24, 2018.
    \11\ An Intermarket Sweep Order or ``ISO'', as defined in Rule
1400(h), is a limit order that is designated by a Member as an ISO
in the manner prescribed by the Exchange, and is executed within the
System by Members without respect to Protected Quotations of other
Eligible Exchanges as defined in Rule 1400(p) and (f). ISOs are
immediately executable within the System and shall not be eligible
for routing. See Exchange Rule 516(f).
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    To implement the SSP feature for Market Makers,\12\ the Exchange
proposes to adopt new subsection (c) to Interpretations and Policies
.01 of Rule 517B, entitled Market Maker Single Side Protection.
Subsection (c) will provide that a Market Maker may determine to engage
the Market Maker Single Side Protection (``SSP'') feature for orders
delivered via the MEO Interface by MPID. If engaged, if the full
remaining size of a Market Maker's order, in an individual option, is
exhausted by a trade, the System will trigger the SSP. When triggered,
the System will cancel all open orders and block all new inbound orders
delivered via the MEO Interface, for that particular side of that
individual option for that MPID. The System will provide a notification
message to the Market Maker that the SSP has been triggered. The block
will remain in effect until the Market Maker notifies the Exchange (in
a manner required by the Exchange and communicated to Members by
Regulatory Circular) \13\ to reset the SSP (``SSP Reset''). The SSP
feature is optionally available and may be enabled for a Market Maker's
MPID. Additionally, the Exchange notes that Intermarket Sweep Orders
are not eligible for Market Maker Single Side Protection.
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    \12\ The term ``Market Maker'' or ``MM'' means a Member
registered with the Exchange for the purpose of making markets in
option contracts traded on the Exchange and that is vested with the
rights and responsibilities specified in Chapter VI of the MIAX
PEARL Rules. See Exchange Rule 100.
    \13\ See supra note 10.
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    The Exchange notes that the proposed rule change is substantially
similar to a rule that is currently operative on the Exchange's
affiliate, MIAX Options Exchange (``MIAX Options'').\14\ MIAX Options
has two types of Members; \15\ MIAX Options Market Makers \16\ and MIAX
Options Electronic Exchange Members.\17\ The Aggregate Risk Manager
protections available on MIAX Options are available only to Market
Makers of the Exchange. Further, on MIAX Options, the only interface
connection that allows Market Makers of the Exchange to provide
quotations \18\ to the market is the MIAX Express Interface (``MEI'')
connection.\19\ Therefore, SSP on MIAX Options is limited to MIAX
Options Market Makers that send Standard quotes \20\ and select eQuotes
\21\ to the MIAX Options Exchange via an MEI connection.
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    \14\ See Securities Exchange Act Release No. 82394 (December 22,
2017), 82 FR 61638 (December 28, 2017) (SR-MIAX-2017-49). (The
Exchange notes that its proposal is based on the amendment to MIAX
Options Rule 612).
    \15\ The term MIAX Options ``Member'' means an individual or
organization approved to exercise the trading rights associate with
a Trading Permit. MIAX Options Members are deemed ``members'' under
the Exchange Act. See MIAX Options Exchange Rule 100.
    \16\ The term MIAX Options ``Market Makers'' refers to ``Lead
Market Makers'', ``Primary Lead Market Makers'' and ``Registered
Market Makers'' on MIAX Options Exchange collectively. See MIAX
Options Exchange Rule 100.
    \17\ The term MIAX Options ``Electronic Exchange Member'' means
the holder of a Trading Permit who is not a Market Maker. Electronic
Exchange Members are deemed ``members'' under the Exchange Act. See
MIAX Options Exchange Rule 100.
    \18\ The term ``quote'' or ``quotation'' means a bid or offer
entered by a Market Maker that is firm and may update the Market
Maker's previous quote, if any. The Rules of the Exchange provide
for the use of different types of quotes, including Standard quotes
and eQuotes, as more fully described in MIAX Options Exchange Rule
517. A Market Maker may, at times, choose to have multiple types of
quotes active in an individual option. See MIAX Options Exchange
Rule 100.
    \19\ The MIAX Express Interface is a connection to MIAX systems
that enables Market Makers to submit simple and complex electronic
quotes to MIAX. See MIAX Options Fee Schedule, Section 5)d)ii),
footnote 26.
    \20\ A Standard quote is a quote submitted by a Market Maker
that cancels and replaces the Market Maker's previous Standard
quote, if any. See MIAX Options Exchange Rule 517(a)(1).
    \21\ An eQuote is a quote with a specific time in force that
does not automatically cancel and replace a previous Standard quote
or eQuote. See MIAX Options Exchange Rule 517(a)(2).
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    Similarly, MIAX PEARL has two types of Members; Market Makers \22\
and Electronic Exchange Members.\23\ The MEO Interface on MIAX PEARL is
analogous to the MEI Interface on MIAX Options. However, on MIAX PEARL,
both Market Makers and EEMs may connect to the System using the MEO
Interface. Therefore, the Exchange is proposing to amend Exchange Rule
517A, Aggregate Risk Manager for EEMs (``ARM-E''), and also Exchange
Rule 517B, Aggregate Risk Manager for Market Makers (``ARM-M'').
---------------------------------------------------------------------------

    \22\ See supra note 12.
    \23\ See supra note 6.
---------------------------------------------------------------------------

    On MIAX PEARL, the proposed rule provides that when the SSP is
triggered the System will cancel all open orders submitted via the MEO
interface and block all new inbound orders. Intermarket Sweep Orders
are not eligible for SSP and are not canceled or blocked when the SSP
is triggered. On MIAX Options, the rule text provides that when the SSP
is triggered the System \24\ will cancel all Standard quotes and block
all new inbound Standard quotes, IOC eQuotes,\25\ and FOK eQuotes \26\
for that particular side of that individual option for that MPID.\27\
The proposed rule will provide the same functionality currently offered
on MIAX Options,\28\ however due to technical differences between the
MIAX Options interface (MEI) and the MIAX PEARL interface (MEO), the
proposed rule text is not identical to that of MIAX Options.
---------------------------------------------------------------------------

    \24\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See MIAX Options
Exchange Rule 100.
    \25\ An immediate or cancel or ``IOC'' eQuote is an eQuote
submitted by a Market Maker that must be matched with another quote
or order for an execution in whole or in part upon receipt by the
System. Any portion of the IOC eQuote not executed will be
immediately canceled. See MIAX Options Exchange Rule 517(a)(2)(iv).
    \26\ A fill or kill or ``FOK'' eQuote is an eQuote submitted by
a Market Maker that must be matched with another quote or order for
an execution in its entirety at a single price upon receipt into the
System or will be immediately cancelled. See MIAX Options Exchange
Rule 517(a)(2)(v).
    \27\ MIAX Options has a separate Intermarket Sweep eQuote that
is not eligible for SSP and that is not canceled or blocked when the
SSP is triggered. See MIAX Options Exchange Rule 517(a)(2)(vi).
    \28\ See MIAX Options Exchange Rule 612, Aggregate Risk Manager
(ARM).
---------------------------------------------------------------------------

    To maintain consistency in the functionality between MIAX Options
and MIAX PEARL, and to promote the operation of a fair and orderly
market, the Exchange is excluding Intermarket Sweep Orders from the SSP
functionality on MIAX PEARL.\29\ MIAX PEARL and MIAX Options have a
number of common Members and where feasible the Exchange strives to
provide consistency between the markets so as to avoid confusion among
the Members.
---------------------------------------------------------------------------

    \29\ See supra note 27.
---------------------------------------------------------------------------

    The Exchange has analyzed its capacity and represents that it has
the necessary systems capacity to handle the potential additional
message traffic that may arise from the cancellation of open orders as
a result of SSP being triggered.
    The Exchange will announce the implementation date of the proposed
rule change by Regulatory Circular to be published no later than 60
days following the operative date of the proposed rule. The
implementation date

will be no later than 60 days following the issuance of the Regulatory
Circular.
2. Statutory Basis
    MIAX PEARL believes that its proposed rule change is consistent
with Section 6(b) of the Act \30\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \31\ in particular, in that it
is designed to prevent fraudulent and manipulative acts and practices,
to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \30\ 15 U.S.C. 78f(b).
    \31\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Exchange believes the proposed changes remove impediments to
and perfect the mechanisms of a free and open market and a national
market system and, in general, protect investors and the public
interest by providing Members with an additional risk management tool.
Members who are Market Makers have a heightened obligation on the
Exchange and are obligated to submit continuous two-sided quotations in
a certain number of series in their appointed classes for a certain
percentage of time in each trading session,\32\ rendering them
vulnerable to risk from market conditions. Additionally, EEMs may also
submit a large volume of orders that rest on the book also rendering
them vulnerable to risk from market conditions.
---------------------------------------------------------------------------

    \32\ See Exchange Rule 605.
---------------------------------------------------------------------------

    The ability of a Member to engage the SSP feature of ARM is a
valuable tool in assisting Members in risk management. Without adequate
risk management tools Members could reduce the size of their quotations
and orders which could undermine the quality of the markets available
to customers and other market participants. The proposed rule change
removes impediments to and is designed to perfect the mechanisms of a
free and open market by giving Members the ability to further refine
their risk protections from an option class level to a single side of
an individual option. Accordingly, the SSP feature is designed to
provide Members with greater control over their quotations and orders
in the market, thereby removing impediments to and helping to perfect
the mechanisms of a free and open market and a national market system
and, in general, protecting investors and the public interest. In
addition, providing Members with more tools for managing risk will
facilitate transactions in securities because, as noted above, Members
will have more confidence that protections are in place that reduce the
risks from market events. As a result, the new functionality has the
potential to promote just and equitable principles of trade.
    The Exchange believes the proposed changes remove impediments to
and perfect the mechanisms of a free and open market and a national
market system and, in general, protect investors and the public
interest, and promote a fair and orderly market by excluding
Intermarket Sweep Orders from the SSP functionality. Intermarket Sweep
Orders are used to prevent locked and crossed markets from occurring
\33\ and it is in the public interest for markets to remain uncrossed
to promote competition and price discovery.
---------------------------------------------------------------------------

    \33\ See supra note 11.
---------------------------------------------------------------------------

    The Exchange notes that the proposed rule change will not relieve
Exchange Market Makers of their continuous quoting obligations under
Exchange Rule 605 or any other obligation under the Rules of the
Exchange, or any obligations arising under Reg NMS Rule 602.\34\ Nor
will the proposed rule change prohibit the Exchange from taking
disciplinary action against a Market Maker for failing to meet their
continuous quoting obligation each trading day.
---------------------------------------------------------------------------

    \34\ 17 CFR 242.602.
---------------------------------------------------------------------------

    Additionally, the Exchange notes that a similar rule is currently
operative on the Exchange's affiliate, MIAX Options.\35\ MIAX PEARL and
MIAX Options have a number of common members and where feasible the
Exchange strives to offer similar functionality to reduce the potential
for confusion by its members that are also members of MIAX Options.
---------------------------------------------------------------------------

    \35\ See supra note 28.
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange believes that
the proposed rule change will foster competition by providing Members
with the ability to specifically customize their use of the Exchange's
risk management tools in order to compete for executions and order
flow.
    Additionally, the Exchange believes that the proposed rule change
should promote competition as it is designed to allow Members greater
flexibility and control of their risk exposure to protect them from
market conditions that may increase their risk exposure in the market.
The Exchange does not believe the proposed rule change will impose a
burden on intra-market competition as the optional risk protection
feature is equally available to all Members of the Exchange.
    For all the reasons stated, the Exchange does not believe that the
proposed rule change will impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act, and
believes the proposed change will enhance competition.

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

    Written comments were neither solicited nor received.

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

    Because the proposed rule change does not (i) significantly affect
the protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative for 30
days from the date on which it was filed, or such shorter time as the
Commission may designate, it has become effective pursuant to Section
19(b)(3)(A) of the Act \36\ and Rule 19b-4(f)(6) thereunder.\37\
---------------------------------------------------------------------------

    \36\ 15 U.S.C. 78s(b)(3)(A).
    \37\ 17 CFR 240.19b-4(f)(6). As required under Rule 19b-
4(f)(6)(iii), the Exchange provided the Commission with written
notice of its intent to file the proposed rule change, along with a
brief description and the text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission.
---------------------------------------------------------------------------

    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act \38\ normally does not become operative for 30 days after the date
of its filing. However, Rule 19b-4(f)(6)(iii) \39\ permits the
Commission to designate a shorter time if such action is consistent
with the protection of investors and the public interest. The Exchange
has asked the Commission to waive the 30-day operative delay so that
the Exchange may immediately implement risk protections similar to
those found on MIAX Options. The Exchange states that MIAX PEARL and
MIAX Options have a number of common Members and

where feasible it intends to implement similar risk protections to
provide consistency between markets so as to avoid confusion among
Members. For this reason, the Commission believes that waiving the 30-
day operative delay is consistent with the protection of investors and
the public interest. Therefore, the Commission hereby waives the
operative delay and designates the proposed rule change operative upon
filing.\40\
---------------------------------------------------------------------------

    \38\ 17 CFR 240.19b-4(f)(6).
    \39\ 17 CFR 240.19b-4(f)(6)(iii).
    \40\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

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

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-PEARL-2018-01 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-PEARL-2018-01. 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 the Exchange. 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-PEARL-2018-01 and should be submitted on
or before March 15, 2018.

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

    \41\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-03567 Filed 2-21-18; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 88, Number 190 (Tuesday, October 3, 2023)]
[Rules and Regulations]
[Pages 67943-67945]
[FR Doc No: 2023-21802]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 97

[Docket No. 31510; Amdt. No. 4081]

Standard Instrument Approach Procedures, and Takeoff Minimums and
Obstacle Departure Procedures; Miscellaneous Amendments

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: This rule establishes, amends, suspends, or removes Standard
Instrument Approach Procedures (SIAPS) and associated Takeoff Minimums
and Obstacle Departure procedures (ODPs) for operations at certain
airports. These regulatory actions are needed because of the adoption
of new or revised criteria, or because of changes occurring in the
National Airspace System, such as the commissioning of new navigational

facilities, adding new obstacles, or changing air traffic requirements.
These changes are designed to provide safe and efficient use of the
navigable airspace and to promote safe flight operations under
instrument flight rules at the affected airports.

DATES: This rule is effective October 3, 2023. The compliance date for
each SIAP, associated Takeoff Minimums, and ODP is specified in the
amendatory provisions.
    The incorporation by reference of certain publications listed in
the regulations is approved by the Director of the Federal Register as
of October 3, 2023.

ADDRESSES: Availability of matters incorporated by reference in the
amendment is as follows:

For Examination

    1. U.S. Department of Transportation, Docket Ops-M30. 1200 New
Jersey Avenue SE, West Bldg., Ground Floor, Washington, DC 20590-0001.
    2. The FAA Air Traffic Organization Service Area in which the
affected airport is located;
    3. The office of Aeronautical Information Services, 6500 South
MacArthur Blvd., Oklahoma City, OK 73169 or,
    4. The National Archives and Records Administration (NARA). For
information on the availability of this material at NARA, email
[email protected] or go to: https://www.archives.gov/federal-register/cfr/ibr-locations.html.

Availability

    All SIAPs and Takeoff Minimums and ODPs are available online free
of charge. Visit the National Flight Data Center at nfdc.faa.gov to
register. Additionally, individual SIAP and Takeoff Minimums and ODP
copies may be obtained from the FAA Air Traffic Organization Service
Area in which the affected airport is located.

FOR FURTHER INFORMATION CONTACT: Thomas J. Nichols, Flight Procedures
and Airspace Group, Flight Technologies and Procedures Division, Flight
Standards Service, Federal Aviation Administration. Mailing Address:
FAA Mike Monroney Aeronautical Center, Flight Procedures and Airspace
Group, 6500 South MacArthur Blvd., STB Annex, Bldg. 26, Room 217,
Oklahoma City, OK 73099. Telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: This rule amends 14 CFR part 97 by
establishing, amending, suspending, or removes SIAPS, Takeoff Minimums
and/or ODPS. The complete regulatory description of each SIAP and its
associated Takeoff Minimums or ODP for an identified airport is listed
on FAA form documents which are incorporated by reference in this
amendment under 5 U.S.C. 552(a), 1 CFR part 51, and 14 CFR part 97.20.
The applicable FAA Forms 8260-3, 8260-4, 8260-5, 8260-15A, 8260-15B,
when required by an entry on 8260-15A, and 8260-15C.
    The large number of SIAPs, Takeoff Minimums and ODPs, their complex
nature, and the need for a special format make publication in the
Federal Register expensive and impractical. Further, airmen do not use
the regulatory text of the SIAPs, Takeoff Minimums or ODPs, but instead
refer to their graphic depiction on charts printed by publishers or
aeronautical materials. Thus, the advantages of incorporation by
reference are realized and publication of the complete description of
each SIAP, Takeoff Minimums and ODP listed on FAA form documents is
unnecessary. This amendment provides the affected CFR sections and
specifies the typed of SIAPS, Takeoff Minimums and ODPs with their
applicable effective dates. This amendment also identifies the airport
and its location, the procedure, and the amendment number.

Availability and Summary of Material Incorporated by Reference

    The material incorporated by reference is publicly available as
listed in the ADDRESSES section.
    The material incorporated by reference describes SIAPS, Takeoff
Minimums and/or ODPs as identified in the amendatory language for part
97 of this final rule.

The Rule

    This amendment to 14 CFR part 97 is effective upon publication of
each separate SIAP, Takeoff Minimums and ODP as amended in the
transmittal. Some SIAP and Takeoff Minimums and textual ODP amendments
may have been issued previously by the FAA in a Flight Data Center
(FDC) Notice to Airmen (NOTAM) as an emergency action of immediate
flights safety relating directly to published aeronautical charts.
    The circumstances that created the need for some SIAP and Takeoff
Minimums and ODP amendments may require making them effective in less
than 30 days. For the remaining SIAPs and Takeoff Minimums and ODPs, an
effective date at least 30 days after publication is provided.
    Further, the SIAPs and Takeoff Minimums and ODPs contained in this
amendment are based on the criteria contained in the U.S. Standard for
Terminal Instrument Procedures (TERPS). In developing these SIAPs and
Takeoff Minimums and ODPs, the TERPS criteria were applied to the
conditions existing or anticipated at the affected airports. Because of
the close and immediate relationship between these SIAPs, Takeoff
Minimums and ODPs, and safety in air commerce, I find that notice and
public procedure under 5 U.S.C. 553(b) are impracticable and contrary
to the public interest and, where applicable, under 5 U.S.C. 553(d),
good cause exists for making some SIAPs effective in less than 30 days.
    The FAA has determined that this regulation only involves an
established body of technical regulations for which frequent and
routine amendments are necessary to keep them operationally current.
It, therefore--(1) is not a ``significant regulatory action'' under
Executive Order 12866; (2) is not a ``significant rule'' under DOT
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979);
and (3) does not warrant preparation of a regulatory evaluation as the
anticipated impact is so minimal. For the same reason, the FAA
certifies that this amendment will not have a significant economic
impact on a substantial number of small entities under the criteria of
the Regulatory Flexibility Act.

Lists of Subjects in 14 CFR Part 97

    Air traffic control, Airports, Incorporation by reference,
Navigation (air).

    Issued in Washington, DC, on September 26, 2023.
Wade E.K. Terrell,
Manager, Flight Procedures & Airspace Group.

Adoption of the Amendment

    Accordingly, pursuant to the authority delegated to me, 14 CFR part
97 is amended by establishing, amending, suspending, or removing
Standard Instrument Approach Procedures and/or Takeoff Minimums and
Obstacle Departure Procedures effective at 0901 UTC on the dates
specified, as follows:

Part 97--Standard Instrument Approach Procedures

0
1. The authority citation for part 97 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40103, 40106, 40113, 40114,
40120, 44502, 44514, 44701, 44719, 44721-44722.

0
2. Part 97 is amended to read as follows:

Effective 2 November 2023

Cross Keys, NJ, 17N, RNAV (GPS) RWY 9, Orig
Cross Keys, NJ, 17N, VOR OR GPS RWY 9, Amdt 6B, CANCELED
Hamilton, OH, KHAO, ILS OR LOC RWY 29, Amdt 3
Hamilton, OH, KHAO, RNAV (GPS) RWY 29, Amdt 2
Corpus Christi, TX, KCRP, ILS OR LOC RWY 13, Amdt 28B
Corpus Christi, TX, KCRP, ILS OR LOC RWY 36, Amdt 14B
Corpus Christi, TX, KCRP, LOC RWY 31, Amdt 9A
Corpus Christi, TX, KCRP, RNAV (GPS) RWY 18, Amdt 2A
Corpus Christi, TX, KCRP, RNAV (GPS) X RWY 31, Orig-A
Corpus Christi, TX, KCRP, RNAV (GPS) Y RWY 13, Amdt 2B
Corpus Christi, TX, KCRP, RNAV (GPS) Y RWY 31, Amdt 4A
Corpus Christi, TX, KCRP, RNAV (GPS) Y RWY 36, Amdt 3A
Corpus Christi, TX, KCRP, VOR OR TACAN RWY 18, Amdt 29

[FR Doc. 2023-21802 Filed 10-2-23; 8:45 am]
BILLING CODE 4910-13-P


[Federal Register Volume 82, Number 44 (Wednesday, March 8, 2017)]
[Notices]
[Pages 13036-13039]
[FR Doc No: 2017-04498]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-80143; File No. SR-OCC-2017-801]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of No Objection To Advance Notice Filing Concerning the Options
Clearing Corporation's Margin Coverage During Times of Increased
Volatility

March 2, 2017.
    The Options Clearing Corporation (``OCC'') filed on January 4, 2017
with the Securities and Exchange Commission (``Commission'') advance
notice SR-OCC-2017-801 (``Advance Notice'') pursuant to Section
806(e)(1) of the Payment, Clearing, and Settlement Supervision Act of
2010 (``Payment, Clearing and Settlement Supervision Act'') \1\ and
Rule 19b-4(n)(1)(i) \2\ under the Securities Exchange Act of 1934
(``Exchange Act'') to modify its process for systematically monitoring
market conditions and performing adjustments to its margin coverage
when market volatility increases beyond historically observed levels.
The Advance Notice was published for comment in the Federal Register on
February 7, 2017.\3\ The Commission has not received any comments on
the Advance Notice to date. This publication serves as notice of no
objection to the Advance Notice.
---------------------------------------------------------------------------

    \1\ 12 U.S.C. 5465(e)(1). The Financial Stability Oversight
Council designated OCC a systemically important financial market
utility on July 18, 2012. See Financial Stability Oversight Council
2012 Annual Report, Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, OCC is
required to comply with the Payment, Clearing and Settlement
Supervision Act and file advance notices with the Commission.
    \2\ 17 CFR 240.19b-4(n)(1)(i).
    \3\ See Securities Exchange Act Release No. 79915 (February 1,
2017), 82 FR 9613 (February 7, 2017) (File No. SR-OCC-2017-801). OCC
also filed a proposed rule change with the Commission pursuant to
Section 19(b)(1) of the Exchange Act and Rule 19b-4 thereunder,
seeking approval of changes to its rules necessary to implement the
Advance Notice. 15 U.S.C. 78s(b)(1) and 17 CFR 240.19b-4,
respectively. This proposed rule change was published in the Federal
Register on January 25, 2017. Securities Exchange Act Release No.
79818 (January 18, 2017), 82 FR 8455 (January 25, 2017) (SR-OCC-
2017-001).
---------------------------------------------------------------------------

I. Background

    OCC protects itself against potential losses that could result from
the default of a clearing member by requiring margin to be posted in
connection with each member's positions. The amount of margin
calculated and collected from OCC's clearing members, along with
mutualized clearing-fund resources, is intended to make available to
OCC sufficient financial resources for the orderly transfer or
liquidation of a defaulting clearing member's positions. OCC's
proprietary risk management system, the System for Theoretical Analysis
and Numerical Simulations (``STANS''), calculates each clearing
member's margin requirement by utilizing Monte Carlo simulations to
forecast price movements related to the positions in each clearing
member's portfolio. The STANS margin requirement is intended to be
sufficient to collateralize the member's losses across its portfolio
over a two-day period, under normal market conditions.
    To determine margin requirements, STANS utilizes time-series data,
including pricing data on assets underlying the options contracts that
OCC clears, and performs calculations related to, among other things,
the volatilities of these underliers. The margin amount collected from
each clearing member also accounts for expected changes in the value of
collateral posted in connection with that member's portfolio.
    One of the primary risk drivers in the STANS methodology relates to
the volatility of individual equity securities, which is derived from
pricing data imported monthly into STANS. Between data feeds, the STANS
margin methodology relies on a process that adjusts the individual
volatility measures of equity-based option underliers (e.g., GE or IBM)
by a multiplier derived from the volatility of the Standard
&Poor's[supreg] 500 index (``SPX''). OCC refers to that multiplier as
the uniform scale factor. To account for intra-month changes in
volatility, the uniform scale factor adjusts individual volatilities of
applicable underliers by a factor tied to the relationship between the
short-term and long term volatility of the SPX. Specifically, the
uniform scale factor is used as a proxy to ``scale up'' volatilities of
equity-based option underliers \4\ when near-term volatility estimates
fall below a certain ratio relative to long-term average volatility,
based on the volatility of the SPX. OCC asserts that, by applying a
scale factor in this way, margin requirements better account for intra-
month volatility risks for individual equity-based option underliers
and thereby better ensure that clearing members maintain sufficient
margin assets in connection with option positions based upon those
underliers.
---------------------------------------------------------------------------

    \4\ The uniform scale factor applies to the volatility measures
for single-name and index underliers. It does not apply to exchange-
traded funds, futures, or volatility-based underliers. For the
latter types of options, STANS uses a constant volatility measure
calculated from monthly data feeds.
---------------------------------------------------------------------------

II. Description of the Advance Notice

    OCC proposes a number of enhancements to its STANS margin
methodology to more accurately compute its clearing member margin
requirements. Specifically, OCC proposes the following: (1) )To change
the length of time-series data used to calculate the uniform scale
factor; (2) to introduce new equity index-based scale factors; (3) to
anchor individual risk factor volatilities to longer-term averages; and
(4) to implement daily data updates of risk factors in OCC's
statistical models used to value U.S. Treasury securities for
collateral and margin purposes. Each proposed change is discussed in
greater detail below.
    First, OCC proposes to change the time-series data period and
thereby the data set used to calculate the uniform scale factor. One
aspect of the uniform scale factor calculation relies on pricing
information, or time-series data, relating to the individual components
of the S&P 500 index dating back to 1946, which pre-dates the 1957
introduction of SPX. Because the time-series data pre-dates the SPX's
publication, OCC's current practice is to supplement the published SPX
data with additional pricing information that relies upon assumptions
about what theoretically

could have been the index's composition prior to 1957. OCC proposes to
discontinue that practice going forward, and instead rely on post-1957
information only. According to OCC, this change would improve the
quality of data used in the uniform scale factor calculation.
    Second, OCC proposes to introduce four new scale factors for
equity-based options. As noted above, the uniform scale factor is
derived from SPX pricing information and currently serves as OCC's sole
volatility proxy applicable to equity-based option underliers.
According to OCC, the new scale factors are based upon indices whose
volatility characteristics more closely correlate with the volatility
characteristics of the underliers to which they will be applied; thus
the new scale factors will serve as more appropriate volatility proxies
for those products. More specifically, OCC proposes to introduce new
scale factors based upon the following indices: (1) The Russell
2000[supreg] Index (12/29/1978); (2) the Dow Jones Industrial Average
Index (9/23/1997); (3) the NASDAQ-100 Index (2/4/1985); and (4) the S&P
100 Index (1/2/1976).\5\ Although the SPX-based uniform scale factor
will continue to serve as the default scale factor for most equity-
based products, the new scale factors will apply to a number of index
options and options on exchange-traded funds and exchange-traded notes
that more closely correlate to the indices used in the proposed scale
factor calculations.
---------------------------------------------------------------------------

    \5\ The dates in parentheticals are the dates from which OCC has
historical data on the specified index.
---------------------------------------------------------------------------

    Third, OCC proposes to anchor risk factor volatilities to longer-
term trends by applying either the uniform scale factor or the
applicable proposed new scale factor, to the greater of two volatility
estimates: (i) An observed, historical average; or (ii) a forecasted
volatility measure. This proposal would modify the current practice of
applying the uniform scale factor solely to the forecasted volatility
measure for applicable underliers. OCC states that in those cases where
observed, historical average volatilities exceed forecasted volatility
measures, OCC's revised methodology would better ensure that short-term
or temporary decreases in forecasted volatility do not result in
significant margin reductions, thereby improving risk management.
    Finally, OCC proposes to implement daily updates to risk factors
used to construct the U.S. Treasury yield curve and value U.S. Treasury
securities for collateral and margin purposes. According to OCC, daily
updates to the U.S. Treasury yield curve would better ensure that the
STANS margin calculations accurately reflect the current state of the
U.S. Treasury market, particularly during periods of heightened
volatility, which would lead to more accurate margin calculations.

III. Discussion and Commission Findings

    Although the Payment, Clearing and Settlement Supervision Act does
not specify a standard of review for an advance notice, the stated
purpose of the Payment, Clearing and Settlement Supervision Act is
instructive.\6\ The stated purpose of the Payment, Clearing and
Settlement Supervision Act is to mitigate systemic risk in the
financial system and promote financial stability by, among other
things, promoting uniform risk management standards for systemically
important financial market utilities and strengthening the liquidity of
systemically important financial market utilities.\7\
---------------------------------------------------------------------------

    \6\ See 12 U.S.C. 5461(b).
    \7\ Id.
---------------------------------------------------------------------------

    Section 805(a)(2) of the Payment, Clearing and Settlement
Supervision Act \8\ authorizes the Commission to prescribe risk
management standards for the payment, clearing, and settlement
activities of designated clearing entities and financial institutions
engaged in designated activities for which it is the supervisory agency
or the appropriate financial regulator. Section 805(b) of the Payment,
Clearing and Settlement Supervision Act \9\ states that the objectives
and principles for the risk management standards prescribed under
Section 805(a) shall be to:
---------------------------------------------------------------------------

    \8\ 12 U.S.C. 5464(a)(2).
    \9\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

     Promote robust risk management;
     promote safety and soundness;
     reduce systemic risks; and
     support the stability of the broader financial system.
    The Commission has adopted risk management standards under Section
805(a)(2) of the Payment, Clearing and Settlement Supervision Act
(``Clearing Agency Standards'') and the Exchange Act.\10\ The Clearing
Agency Standards became effective on January 2, 2013, and require
registered clearing agencies to establish, implement, maintain, and
enforce written policies and procedures that are reasonably designed to
meet certain minimum requirements for their operations and risk
management practices on an ongoing basis. As such, it is appropriate
for the Commission to review advance notices against these Clearing
Agency Standards, and the objectives and principles of these risk
management standards as described in Section 805(b) of the Payment,
Clearing and Settlement Supervision Act.\11\
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    \10\ 17 CFR 240.17Ad-22. See Securities Exchange Act Release No.
68080 (October 22, 2012), 77 FR 66220 (November 2, 2012) (S7-08-11).
    \11\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

    The Commission finds the proposed change is consistent with the
objectives and principles described in Section 805(b) of the Payment,
Clearing and Settlement Supervision Act, as described below.\12\
---------------------------------------------------------------------------

    \12\ Id.
---------------------------------------------------------------------------

Consistency With Section 805(b) of the Payment, Clearing and Settlement
Supervision Act

    The Commission finds that OCC's proposal is consistent with
promoting robust risk management, promoting safety and soundness,
reducing systemic risk, and supporting the stability of the broader
financial system, and is therefore consistent with the objectives and
principles described in Section 805(b) of the Payment, Clearing and
Settlement Supervision Act.\13\
---------------------------------------------------------------------------

    \13\ 12 U.S.C. 5464(b).
---------------------------------------------------------------------------

    First, the Commission finds that the proposed change to the SPX
time-series data period used in connection with the uniform scale
factor is consistent with promoting robust risk management. As
described above, OCC is changing the manner in which it calculates the
uniform scale factor by limiting SPX time-series data to only those
dates subsequent to the introduction of the SPX in 1957. According to
OCC, by relying on the published index, instead of assumptions about
the SPX's constituents prior to its publication, the proposed change
would improve the quality of data used in the uniform scale factor
calculation, which is critical to managing certain intra-month
volatility risks through OCC's risk management system, STANS. The
Commission finds that OCC's proposed reliance on published index data
throughout the time-series data period rather than assumptions to
calculate the uniform scale factor is an appropriate improvement to the
process for performing intra-month volatility adjustments in STANS. The
Commission therefore finds the proposed change is consistent with the
objective of promoting robust risk management.
    Second, the Commission finds that OCC's proposed change to
introduce four new scale factors for exchange-traded funds and other
equity-based option underliers that correlate more closely with the
indices used in the proposed scale factor calculations is consistent
with promoting robust risk

management. According to OCC, the proposed change would more accurately
approximate intra-month volatility risks in STANS calculations for
applicable equity-based options products and thereby more accurately
reflect the risks associated with such underliers in margin
calculations. Correspondingly, margin calculations should more closely
reflect potential losses in clearing members' portfolios containing
products to which the new scale factors would be applied, in
furtherance of promoting robust risk management.
    Third, the Commission finds that the proposed change to apply the
uniform scale factor and each proposed scale factor to the greater of
the historical and forecasted volatility measure for applicable
instruments is consistent with promoting robust risk management.
According to OCC, the proposed change to anchor volatilities in
observed, historical averages mitigates procyclical reductions in
margin requirements.\14\ In particular, the proposed methodology is
intended to protect against circumstances in which a decrease in the
forecasted volatilities of option underliers would result in
commensurate reductions in associated margin requirements, though such
forecasts may be inconsistent with historical average volatilities
based on longer-term, observed pricing behaviors. The Commission finds
that by mitigating procyclical decreases in margin requirements, OCC's
proposal is consistent with promoting robust risk management.
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    \14\ The term ``procyclicality'' as it relates to margin
requirements in this context is intended to describe positive
correlation between margin requirements associated with an options
portfolio and the volatilities of individual constituents Murphy et
al., Staff Working Paper No. 597: A comparative analysis of tools to
limit the procyclicality of initial margin requirements, Bank of
England (April 2016), http://www.bankofengland.co.uk/research/Documents/workingpapers/2016/swp597.pdf.
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    Lastly, the Commission finds that the proposed change to
incorporate daily updates into time-series data used to construct the
U.S. Treasury yield curve for collateral and margin purposes is
consistent with promoting robust risk management. According to OCC, the
proposed change is designed to better ensure that the STANS margin
calculations accurately reflect the value of U.S. Treasuries posted as
collateral, especially during periods of heightened volatility. This,
in turn, would better ensure that clearing members post sufficient
collateral in support of their options portfolios and remain within
OCC's risk tolerance. More accurate valuation of U.S. Treasuries for
collateral and margin purposes should improve OCC's ability to monitor
and manage its risks and therefore is consistent with promoting robust
risk management.
    For the reasons stated above, the Commission finds that OCC's
proposal promotes robust risk management through improvements to the
data, scale factors, and methodology used in STANS margin calculations.
The Commission also finds that the proposal thereby promotes the safety
and soundness of OCC and its members by better capturing volatility
risks in margin requirements, which, in turn, should serve to reduce
systemic risks and support the stability of the broader financial
system. Accordingly, the Commission finds that the proposal is
consistent with the stated objectives and principles of Section 805(b)
of the Payment, Clearing and Settlement Supervision Act.\15\
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    \15\ 12 U.S.C. 5464(b).
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Consistency With Rules 17Ad-22(b)(1) and (b)(2) Under the Exchange Act

    The Commission finds that OCC's proposal is consistent with the
Clearing Agency Standards, specifically Rules 17Ad-22(b)(1) and (b)(2)
under the Exchange Act.\16\ Rule 17Ad-22(b)(1) under the Exchange Act
requires OCC to establish, implement, maintain, and enforce written
policies and procedures reasonably designed to, among other things,
limit its exposures to potential losses from defaults by its
participants under normal market conditions so that the operations of
the clearing agency would not be disrupted and non-defaulting
participants would not be exposed to losses that they cannot anticipate
or control.\17\ Rule 17Ad-22(b)(2) under the Exchange Act requires OCC
to establish, implement, maintain, and enforce written policies and
procedures reasonably designed to, among other things, use margin
requirements to limit its credit exposures to participants under normal
market conditions and use risk-based models and parameters to set such
margin requirements.\18\
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    \16\ 17 CFR 240.17Ad-22(b)(1) and (b)(2). For purposes of these
provisions, OCC is a registered clearing agency that performs
central counterparty services.
    \17\ 17 CFR 240.17Ad-22(b)(1).
    \18\ 17 CFR 240.17Ad-22(b)(2).
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    The Commission finds that OCC's proposal is consistent with Rules
17Ad-22(b)(1) and (b)(2) under the Exchange Act. The proposal would
better enable OCC to limit its potential losses from clearing-member
defaults under normal market conditions by improving the data, scale
factors, and methodology used to derive certain volatility and other
estimates for purposes of margin calculations. By improving these
estimates, the STANS margin requirements would better ensure that OCC's
members post sufficient collateral in connection with their options
positions, thereby protecting OCC against the potential losses from a
clearing-member default. Furthermore, by limiting OCC's exposure to
such losses, the proposal better ensures that OCC would continue
operations without disruption and that non-defaulting clearing members
would not be exposed to losses they cannot anticipate or control.
    The proposal also would improve the risk-based models and
parameters that OCC uses to set margin requirements and limit its
credit exposures to clearing members under normal market conditions.
STANS, as discussed above, is a risk-based, forecasting tool that OCC
currently uses to calculate margin requirements that would be
sufficient to collateralize each clearing member's losses over a two-
day period under normal market conditions. The proposal incrementally
enhances STANS by improving the data, scale factors, and methodology
used to derive certain volatility and other estimates relevant to risk-
based margin calculations. The proposal would improve the quality of
data used to estimate risk drivers in the STANS margin calculations,
for example, by relying solely on published index data throughout the
uniform scale factor time-series data period. In addition, the four new
scale factors would more accurately reflect intra-month volatility
risks associated with applicable option underliers in the STANS margin
calculations. The proposal also would better ensure that the STANS
margin requirements remain anchored to historical average volatilities,
and would thereby mitigate pro-cyclical reductions in margin
requirements, by applying the uniform scale factor and each proposed
scale factor to the greater of an observed, historical average and a
forecasted volatility measure. Finally, incorporating daily updates
into time-series data used to construct the U.S. Treasury yield curve
would improve valuation of U.S. Treasury collateral and thereby the
accuracy of STANS margin calculations, because margin requirements
account for expected changes in the value of posted U.S. Treasury
collateral.
    For the reasons stated above, the Commission finds that OCC's
proposal is consistent with the Clearing Agency Standards, specifically
Rules 17Ad-22(b)(1) and (b)(2) under the Exchange Act.

IV. Conclusion

    It is therefore noticed, pursuant to Section 806(e)(1)(G) of the
Payment, Clearing and Settlement Supervision Act,\19\ that the
Commission DOES NOT OBJECT to Advance Notice (SR-OCC-2017-801) and that
OCC is AUTHORIZED to implement the proposed change.
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    \19\ 12 U.S.C. 5465(e)(1)(G).

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-04498 Filed 3-7-17; 8:45 am]
BILLING CODE 8011-01-P