Larry Elmore/ RTP/ USEPA/ US 10/ 26/ 2005 05: 36 PM To dunkins. robin@ epa. gov, Sally Shaver cc Eric Ginsburg/ RTP/ USEPA/ US@ EPA, Larry Wallace/ RTP/ USEPA/ US@ EPA Subject USDA/ DOI meeting with Bill Wehrum Robin & Sally: FYI  Lynn Scarlett and Mark Rey will be meeting with Bill Wehrum at 4: 15 pm on Thursday ( tomorrow). The purpose of the meeting is to generally discuss the Exceptional and Natural Events Rule that OAQPS is drafting. Eric Ginsburg is drafting the talking points and will distribute them for comment/ input either later today or early tomorrow am. Our 1 pager has to be in DC by noon tomorrow.

I'm not aware of any major issue that either of USDA/ DOI or us have regarding this rule. On a conception basis, we appear to be on the same page. We met with USDA/ DOI ( Jim Douglas, Pete Lahm, Dennis Haddow and Paul Schlobohm) this afternoon and they appeared to be pleased with how we have incorporated their comments.

Please don't hesitate to call me at home ( 919/ 362 9320) this evening if you have any questions.

Thanks!!! Larry Elmore, USEPA telephone: 919/ 541 5433 fax: 919/ 541 0072 e mail: elmore. larry@ epa. gov


[Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)]
[Notices]
[Pages 61617-61622]
[FR Doc No: 2017-27997]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82377; File Nos. SR-DTC-2017-004; SR-NSCC-2017-005; SR-
FICC-2017-008]

Self-Regulatory Organizations; The Depository Trust Company;
National Securities Clearing Corporation; Fixed Income Clearing
Corporation; Notice of Filing of Amendment No. 4, Notice of Filing
Amendment No. 5, Notice of Filing Amendment No. 6, and Order Granting
Accelerated Approval of Proposed Rule Changes, as Modified by Amendment
Nos. 1, 3 and 6, To Adopt the Clearing Agency Liquidity Risk Management
Framework

December 21, 2017.

I. Introduction

    On April 6, 2017, The Depository Trust Company (``DTC''), National
Securities Clearing Corporation (``NSCC''), and Fixed Income Clearing
Corporation (``FICC,'' each a ``Clearing Agency,'' and collectively,
the ``Clearing Agencies''), filed with the Securities and Exchange
Commission (``Commission'') proposed rule changes SR-DTC-2017-004, SR-
NSCC-2017-005, and SR-FICC-2017-008, respectively, pursuant to Section
19(b)(1) of the Securities Exchange Act of 1934 (``Act'') \1\ and Rule
19b-4 thereunder.\2\
---------------------------------------------------------------------------

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

    On April 13, 2017, the Clearing Agencies each filed Amendment No. 1
to their respective proposed rule changes. Amendment No. 1 made
technical corrections to each Exhibit 5 of the proposed rule change
filings. The proposed rule changes, as modified in each instance by
Amendment No. 1, were published for comment in the Federal Register on
April 25, 2017.\3\ On June 7, 2017, the Commission designated a longer
period for Commission Action on the proposed rule changes, as amended
in each instance by Amendment No. 1.\4\
---------------------------------------------------------------------------

    \3\ Securities Exchange Act Release No. 80489 (April 19, 2017),
82 FR 19120 (April 25, 2017) (SR-DTC-2017-004, SR-NSCC-2017-005, SR-
FICC-2017-008) (``Notice'').
    \4\ Securities Exchange Act Release No. 80877 (June 7, 2017), 82
FR 27094 (June 13, 2017) (SR-DTC-2017-004, SR-NSCC-2017-005, SR-
FICC-2017-008).
---------------------------------------------------------------------------

    On July 20, 2017, the Clearing Agencies each filed Amendment No. 2
to their respective proposed rule changes, as previously modified by
Amendment No. 1. On July 21, 2017, the Clearing Agencies each filed
Amendment No. 3 to their respective proposed rule changes to supersede
and replace Amendment No. 2 in its entirety, due to a technical defect
of Amendment No. 2. The proposed rule changes, as modified in each
instance by Amendment No. 3, were published for comment in the Federal
Register on July 28, 2017, and the Commission instituted proceedings
under Section 19(b)(2)(B) of the Act \5\ to determine whether to
approve or disapprove the proposed rule changes.\6\ On October 16,
2017, the Commission designated a longer period on the proceedings to
determine whether to approve or disapprove the proposed rule changes,
as modified by Amendment Nos. 1 and 3.\7\ The Commission did not
receive any comment letters on the proposed rule changes, as modified
by Amendment Nos. 1 and 3.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78s(b)(2)(B).
    \6\ Securities Exchange Act Release No. 81194 (July 24, 2017),
82 FR 35241 (July 28, 2017) (SR-DTC-2017-004, SR-NSCC-2017-005, SR-
FICC-2017-008) (``Order Instituting Proceedings'').
    \7\ Securities Exchange Act Release No. 81885 (October 20,
2017), 82 FR 48857 (October 20, 2017) (SR-DTC-2017-004, SR-NSCC-
2017-005, SR-FICC-2017-008).
---------------------------------------------------------------------------

    On December 15, 2017, the Clearing Agencies each filed Amendment
No. 4 to their respective proposed rule changes, as discussed below. On
the same day, the Clearing Agencies each filed Amendment No. 5 to their
respective proposed rule changes to supersede and replace Amendment No.
4 in its entirety, due to technical errors of Amendment No. 4. On
December 18, 2017, Clearing Agencies each filed Amendment No. 6 to
their respective proposed rule changes to supersede and replace
Amendment No. 5 in its entirety. The Commission is publishing this
notice to solicit comments on Amendment No. 6 from interested persons
and is approving on an accelerated basis the proposed rule changes, as
modified by Amendment Nos. 1, 3, and 6 (hereinafter, ``Amended Proposed
Rule Changes'').

II. Description of the Proposed Rule Changes as Previously Modified by
Amendment Nos. 1 and 3, and Notice of Filing Amendment No. 6

A. Proposed Rule Changes as Previously Modified by Amendment Nos. 1 and
3

    The Clearing Agencies propose to adopt the Clearing Agency
Liquidity Risk Management Framework (``Framework'') of the Clearing
Agencies. The Framework would outline the regulatory requirements that
would be applicable to each Clearing Agency with respect to liquidity
risk management, and would be owned and managed by the Liquidity
Product Risk Unit (``LPRU'') of DTCC.\8\
---------------------------------------------------------------------------

    \8\ The parent company of the Clearing Agencies is The
Depository Trust & Clearing Corporation (``DTCC''). DTCC operates on
a shared services model with respect to the Clearing Agencies. Most
corporate functions are established and managed on an enterprise-
wide basis pursuant to intercompany agreements under which it is
generally DTCC that provides a relevant service to a Clearing
Agency. Notice, 82 FR at 19121.
---------------------------------------------------------------------------

    The Framework would, generally, set forth the Clearing Agencies'
liquidity resources and liquidity risk management practices, to include
measurement and monitoring of their respective liquidity risks.\9\ More
specifically, the Framework would describe FICC and NSCC's liquidity
risk management strategy and objectives, which are to maintain
sufficient liquid resources to meet the potential amount of funding
required to settle outstanding transactions of a defaulting Member, or
affiliated family (``Affiliated Family'') of Members, in a timely
manner.\10\ For DTC, the Framework would describe how DTC's liquidity
management strategy and controls are designed to maintain sufficient
available liquid resources to complete system-wide settlement on each
business day with a high degree of confidence, notwithstanding the
failure to settle of a Participant or Affiliated Family of
Participants.\11\ The Framework would also state that DTC operates on a
fully collateralized basis.\12\
---------------------------------------------------------------------------

    \9\ Id.
    \10\ FICC and NSCC refer to their participants as ``Members,''
while DTC refers to its participants as ``Participants.'' These
terms are defined in the respective rules of each of the Clearing
Agencies. Notice, 82 FR at 19121.
    \11\ Id.
    \12\ Id.
---------------------------------------------------------------------------

    Although the Clearing Agencies would consider the Framework to be a
rule of each Clearing Agency, the proposed changes do not require any
changes to the Rules, By-laws and Organization Certificate of DTC
(``DTC Rules''), the FICC Government Securities Division (``GSD'')
Rulebook (``GSD Rules''), the FICC Mortgage-

Backed Securities Division (``MBSD'') Clearing Rules (``MBSD Rules''),
or the Rules & Procedures of NSCC (``NSCC Rules,'' and together with
the DTC Rules, GSD Rules, and MBSD Rules, ``Rules''), as the Framework
would be a standalone document.\13\
---------------------------------------------------------------------------

    \13\ Rules, available at http://www.dtcc.com/en/legal/rules-and-procedures.
---------------------------------------------------------------------------

1. Liquidity Resources
    The Framework would address how each of the Clearing Agencies meets
its requirement to hold qualifying liquid resources, as defined by Rule
17Ad-22(a)(14) under the Act,\14\ sufficient to meet its minimum
liquidity resource requirement in each relevant currency for which it
has payment obligations owed to its Members or Participants, as
applicable.\15\ The Framework would identify each of the qualifying
liquid resources available to each Clearing Agency. Such qualifying
liquid resources include, for example, (1) deposits to the Clearing
Agencies' respective Clearing Funds, or, for DTC, its Participants
Fund, made by Members or Participants pursuant to the respective rules;
\16\ (2) for DTC and NSCC, an annual committed credit facility; \17\
(3) for NSCC, its Members' Supplemental Liquidity Deposits; \18\ and
(4) for GSD and MBSD, a rule-based Capped Contingency Liquidity
Facility (``CCLF'') program.\19\ The Framework would also state that
the Clearing Agencies may have access to other available resources that
may not meet the definition of qualifying liquid resources.\20\
---------------------------------------------------------------------------

    \14\ 17 CFR 240.17Ad-22(a)(14).
    \15\ Notice, 82 FR at 19121.
    \16\ DTC Rule 4 (Participants Fund and Participants Investment),
GSD Rule 4 (Clearing Fund and Loss Allocation), MBSD Rule 4
(Clearing Fund and Loss Allocation), NSCC Rule 4 (Clearing Fund).
Rules, supra note 13.
    \17\ See Securities Exchange Act Release No. 77750 (April 29,
2016), 81 FR 27181 (May 5, 2016) (SR-DTC-2016-801, SR-NSCC-2016-
801). Notice, 82 FR at 19121.
    \18\ NSCC Rule 4A (Supplemental Liquidity Deposits). Rules,
supra note 13.
    \19\ MBSD Rule 17, Section 2a (Procedures for When the
Corporation Ceases to Act). Rules, supra note 13.
    \20\ Notice, 82 FR at 19121.
---------------------------------------------------------------------------

2. Liquidity Measurement and Monitoring
    The Framework would describe the manner in which FICC and NSCC
measure and monitor the sufficiency of their respective qualifying
liquid resources through daily liquidity studies that consider certain
risk scenarios. The scenarios are designed to measure the sufficiency
of their available qualifying liquid resources to meet the cash
settlement obligations of their respective largest Affiliated Family of
Members in a number of stressed conditions, including extreme but
plausible scenarios applied under severely adverse market conditions
that could coincide with the default of a Member.\21\ The Framework
would provide three types of scenarios: (1) Normal market scenarios, as
a baseline reference point to assess other stress assumptions; (2)
scenarios designed to meet the requirements set forth in Rule 17Ad-
22(e)(7)(i) under the Act; and (3) scenarios designed to meet the
requirements set forth in Rule 17Ad-22(e)(7)(vi) under the Act.\22\ The
Framework would describe the manner in which the scenarios are
developed and selected for testing.\23\ The Framework would also
describe how liquidity stress testing results are escalated to Clearing
Agency management on at least a monthly basis, and how these results
are used to evaluate the adequacy of the liquidity resources of FICC
and NSCC.\24\
---------------------------------------------------------------------------

    \21\ Notice, 82 FR at 19121 and 19123.
    \22\ Order Instituting Proceedings, 82 FR at 35242.
    \23\ Notice, 82 FR at 19121.
    \24\ Id.
---------------------------------------------------------------------------

    With respect to DTC's measurement of the sufficiency of its
liquidity resources, the Framework would set forth that the Collateral
Monitor and the Net Debit Cap \25\ limit DTC's liquidity exposure and,
thus, DTC's liquidity requirement in default scenarios.\26\ The
Framework would describe how the Collateral Monitor and the Net Debit
Cap enable DTC to regularly test the sufficiency of its liquid
resources on an intraday and end-of-day basis and adjust to stressed
circumstances during a settlement day to protect DTC and its
Participants against liquidity exposure under normal and stressed
market conditions.\27\
---------------------------------------------------------------------------

    \25\ ``Collateral Monitor'' and ``Net Debit Cap'' are defined in
DTC Rule 1, Section 1 (Definitions), and their calculations are
further provided for in the DTC Settlement Service Guide of the DTC
Rules. Rules, supra note 13.
    \26\ Notice, 82 FR at 19121.
    \27\ Id.
---------------------------------------------------------------------------

    The Framework would describe how the Clearing Agencies review the
limits of outstanding investments and collateral held (if applicable)
by each Clearing Agency's investment counterparties, and conduct formal
reviews of the reliability of their liquidity providers in extreme but
plausible market conditions.\28\ The Framework would further describe
how the Clearing Agencies undertake due diligence with respect to their
liquidity providers and conduct a credit analysis of each liquidity
provider, and how NSCC and DTC conduct operational testing with their
committed credit facility lenders at least annually.\29\
---------------------------------------------------------------------------

    \28\ Id.
    \29\ Notice, 82 FR at 19121 and 19123.
---------------------------------------------------------------------------

    The Framework would describe how the Clearing Agencies would
address foreseeable liquidity shortfalls that would not be covered by
their existing liquid resources.\30\ For example, DTC would address a
foreseeable, same-day liquidity shortfall through adjustments to the
Net Debit Cap reductions, as provided under the DTC Rules.\31\ In
addition, the Framework would describe how the Clearing Agencies'
existing qualifying liquid resources may be replenished in accordance
with the respective rules of the Clearing Agencies.\32\ For example,
the Framework would describe how the Clearing Agencies may use proceeds
that may be available from the liquidation of a defaulting
participant's portfolio (including the sale of collateral used to
secure a borrowing) to repay liquidity borrowings, thus replenishing
the relevant Clearing Agency's liquid resources.\33\
---------------------------------------------------------------------------

    \30\ Id.
    \31\ Notice, 82 FR at 19123.
    \32\ Notice, 82 FR at 19121 and 19123.
    \33\ Notice, 82 FR at 19123.
---------------------------------------------------------------------------

    The Framework would state that the Clearing Agencies' liquidity
risk models are subject to independent model validation on at least an
annual basis.\34\ The Framework would describe the manner in which the
liquidity risks of the Clearing Agencies are assessed and escalated
through liquidity risk management controls that include a statement of
risk tolerances that are specific to liquidity risk (``Liquidity Risk
Tolerance Statement''), and an operational risk profile of LPRU, which
contains consolidated risk and control data.\35\ Finally, the Framework
would state that the Liquidity Risk Tolerance Statement is reviewed by
management within the LPRU annually, and is escalated to the Risk
Committee of the Board of Executives of each Clearing Agency for review
and approval at least annually.\36\
---------------------------------------------------------------------------

    \34\ Id.
    \35\ Notice, 82 FR at 19121-19122.
    \36\ Notice, 82 FR at 19122.
---------------------------------------------------------------------------

B. Notice of Filing of Amendment No. 6

    Amendment No. 6, which supersedes and replaces Amendment Nos. 4 and
5, added additional detail and clarity to the proposal, as well as
making some technical corrections. Specifically, Amendment No. 6
clarifies that DTC's structural features, including the Collateral
Monitor, Net Debit Cap, and Participants Fund enable it to maintain
sufficient qualifying liquid resources by limiting the liquidity
requirements in

default scenarios. Similarly, in order to more accurately describe
DTC's current practices with respect to the Collateral Monitor and Net
Debit Cap, Amendment No. 6 deletes a description in the proposal
stating that the Collateral Monitor and the Net Debit Cap enable DTC to
regularly test the sufficiency of its liquid resources on an intraday
and end-of-day basis and adjust to stressed circumstances during a
settlement day to protect DTC and its Participants against liquidity
exposure under normal and stressed market conditions.
    Amendment No. 6 revises the Framework to (1) update the citation of
the proposed rule change filing regarding FICC GSD's CCLF program,
which was approved by the Commission on November 15, 2017, and (2)
state that FICC GSD's CCLF program will become a qualifying liquid
resource of FICC GSD on November 15, 2018.\37\
---------------------------------------------------------------------------

    \37\ MBSD Rule 17, Section 2a (Procedures for When the
Corporation Ceases to Act). Rules, supra note 13. See Securities
Exchange Act Release Nos. 82090 (November 15, 2017), 82 FR 55427
(November 21, 2017) (SR-FICC-2017-002); 81054 (June 29, 2017), 82 FR
31356 (July 6, 2017) (SR-FICC-2017-802).
---------------------------------------------------------------------------

    Amendment No. 6 also modifies and elaborates FICC and NSCC's
liquidity sufficiency testing that is performed daily with respect to
three types of scenarios: (1) Normal market scenarios, as a baseline
reference point to assess other stress assumptions, (2) scenarios
designed to meet the requirements set forth in Rule 17Ad-22(e)(7)(i)
\38\ under the Act (``Level 2 Scenarios''), and (3) scenarios designed
to meet the requirements set forth in Rule 17Ad-22(e)(7)(vi)(A) \39\
under the Act (``Level 3 Scenarios''). The Framework is further
modified by Amendment No. 6 to state that daily liquidity studies may
also be performed for informational and monitoring purposes using
stress scenarios that exceed the requirements of Rule 17Ad-
22(e)(7)(vi)(A) under the Act.\40\
---------------------------------------------------------------------------

    \38\ 17 CFR 240.17Ad-22(e)(7)(i).
    \39\ 17 CFR 240.17Ad-22(e)(7)(vi)(A).
    \40\ Id.
---------------------------------------------------------------------------

    Amendment No. 6 also modifies the Framework to describe the purpose
of the three types of stress scenario described above. Specifically,
Amendment No. 6 revised the Framework to state that Level 2 Scenarios
assume a wide range of foreseeable stress scenarios that include, but
are not limited to, the default of the Affiliated Family of Members
that would generate the largest aggregate payment obligation for the
FICC or NSCC in extreme but plausible market conditions. In this way,
the Framework would state that these daily liquidity studies are
designed to meet the requirements of Rule 17Ad-22(e)(7)(i) under the
Act.\41\ Meanwhile, Amendment No. 6 further revised the Framework to
state that Level 3 Scenarios assume certain standard and predetermined
parameters which are designed to be extreme but plausible and meet the
requirements set forth in Rule 17Ad-22(e)(7)(vi)(A) under the Act.\42\
---------------------------------------------------------------------------

    \41\ 17 CFR 240.17Ad-22(e)(7)(i).
    \42\ 17 CFR 240.17Ad-22(e)(7)(vi)(A).
---------------------------------------------------------------------------

    Amendment No. 6 also revises the Framework to provide the analysis
and escalation process for any liquidity shortfalls that are identified
through the daily studies utilizing the Level 2 and Level 3 Scenarios.
Amendment No. 6 modifies the Framework to describe how the liquidity
stress testing is regularly reviewed and analyzed, including an
evaluation of the appropriateness of existing scenarios, and would also
describe how these analyses are escalated on at least a monthly basis.
The Framework is further revised by Amendment No. 6 to state that
liquidity stress testing is comprehensively analyzed on a weekly basis,
and how the results of the analysis are escalated on a monthly basis
and used to evaluate the adequacy of the qualifying liquid resources of
FICC or NSCC. Amendment No. 6 also modifies the Framework to describe
the manner in which Level 2 and Level 3 scenarios are developed and
selected for testing.
    Furthermore, Amendment No. 6 revises the Framework to state that
the Clearing Agencies may have access to other available resources that
do not meet the definition of qualifying liquid resources. Amendment
No. 6 also revises the Framework to state that each of the Clearing
Agencies would annually test borrowing of their liquidity resources to
confirm providers are operationally able to perform their commitments
and are familiar with the drawdown process.

III. Discussion and Commission Findings

    Section 19(b)(2)(C) of the Act directs the Commission to approve a
proposed rule change of a self-regulatory organization if it finds that
such proposed rule change is consistent with the requirements of the
Act and rules and regulations thereunder applicable to such
organization.\43\ After carefully considering the Amended Proposed Rule
Changes, the Commission finds that the Amended Proposed Rule Changes
are consistent with the requirements of the Act and the rules and
regulations thereunder applicable to the Clearing Agencies.
Specifically, the Commission finds that the Amended Proposed Rule
Changes are consistent with Section 17A(b)(3)(F) of the Act \44\ and
Rule 17Ad-22(e)(7) under the Act.\45\
---------------------------------------------------------------------------

    \43\ 15 U.S.C. 78s(b)(2)(C).
    \44\ 15 U.S.C. 78q-1(b)(3)(F).
    \45\ 17 CFR 240.17Ad-22(e)(7).
---------------------------------------------------------------------------

A. Consistency With Section 17A(b)(3)(F) of the Act

    Section 17A(b)(3)(F) of the Act 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, and to
assure the safeguarding of securities and funds which are in the
custody or control of the Clearing Agencies or for which they are
responsible.\46\ As described above, the Framework would set forth the
Clearing Agencies' liquidity risk management strategy and objectives,
which are to maintain sufficient liquid resources (1) in the case of
FICC and NSCC, to meet the potential amount of funding required to
settle outstanding transactions of a defaulting Member, or Affiliated
Family of Members, in a timely manner, or (2) in the case of DTC, to
complete system-wide settlement on each business day with a high degree
of confidence, notwithstanding the failure to settle of a Participant
or Affiliated Family of Participants.
---------------------------------------------------------------------------

    \46\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    The Framework would address how each Clearing Agency holds liquid
resources to effect the cash settlement obligations of their largest
Affiliated Family of Members or Participants. In order to do so, the
Framework would identify each of the liquid resources available to each
Clearing Agency. In addition, the Framework would describe how each
Clearing Agency measures and monitors the sufficiency of its liquid
resources to meet its obligation across a range of stress scenarios.
The Framework would provide how the Clearing Agencies conduct reviews
of the reliability of their liquidity providers, how the Clearing
Agencies would address foreseeable liquidity shortfalls, and how the
Clearing Agencies would replenish their liquid resources. The Framework
also would describe how liquidity risks to each Clearing Agency are
assessed and escalated through liquidity risk management controls.
    By providing for the maintenance and monitoring of each Clearing
Agency's liquidity resources, the Framework helps position the Clearing
Agencies to better withstand the liquidity risks that

arise in or are borne by them and to be better positioned to continue
their critical operations and services. In turn, such improved
positioning in these areas could help promote the prompt and accurate
clearance and settlement of securities transactions by the Clearing
Agencies and reduce the possibility of the Clearing Agencies' failure,
which could help mitigate the risk of financial loss contagion that
could be caused by such a failure. With such aims, the Framework could
help further assure the safeguarding of securities and funds which are
in the custody or control of the Clearing Agencies, or for which they
are responsible. Accordingly, the Commission finds that the Amended
Proposed Rule Changes are consistent with the requirements of Section
17A(b)(3)(F) of the Act.\47\
---------------------------------------------------------------------------

    \47\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

B. Consistency With Section 17Ad-22(e)(7)(i), (ii), (iv), (v), (vi),
(vii), (viii), and (ix)

    Rule 17Ad-22(e)(7) under the Act requires that each covered
clearing agency establish, implement, maintain and enforce written
policies and procedures reasonably designed to, among other things
effectively measure, monitor, and manage the liquidity risks that arise
in or are borne by the covered clearing agency, including measuring,
monitoring, and managing its settlement and funding flows on an ongoing
and timely basis, and its use of intraday liquidity.\48\ Specifically,
Rule 17Ad-22(e)(7)(i) under the Act requires each covered clearing
agency to maintain sufficient liquid resources at the minimum in all
relevant currencies to effect same-day and, where appropriate, intraday
and multiday settlement of payment obligations with a high degree of
confidence under a wide range of foreseeable stress scenarios that
includes, but is not limited to, the default of the participant family
that would generate the largest aggregate payment obligation for the
covered clearing agency in extreme but plausible market conditions.\49\
Meanwhile, Rule 17Ad-22(e)(7)(ii) under the Act requires each covered
clearing agency to hold qualifying liquid resources to meet the minimum
liquidity resource requirement under Rule 17Ad-22(e)(7)(i) in each
relevant currency for which the covered clearing agency has payment
obligations owed to clearing members.\50\
---------------------------------------------------------------------------

    \48\ 17 CFR 240.17Ad-22(e)(7).
    \49\ 17 CFR 240.17Ad-22(e)(7)(i).
    \50\ 17 CFR 240.17Ad-22(e)(7)(ii).
---------------------------------------------------------------------------

    The Framework would provide that FICC and NSCC maintain liquid
resources sufficient to meet the potential amount of funding required
to settle outstanding transactions of a defaulting Member or Affiliated
Family of Members in a timely manner. The Framework would further
provide that DTC maintain sufficient available liquidity resources to
complete system-wide settlement on each business day, with a high
degree of confidence and notwithstanding the failure to settle of the
Participant or Affiliated Family of Participants with the largest
settlement obligation. The Framework would also describe how FICC and
NSCC perform daily liquidity studies, which are designed to measure the
sufficiency of their available liquid resources to meet the cash
settlement obligations of their largest Affiliated Family of Members in
a number of stress conditions including extreme but plausible scenarios
applied under severely adverse market conditions that could coincide
with the default of a participant.
    Furthermore, the Framework would provide that the Clearing Agencies
hold qualifying liquid resources sufficient to meet their minimum
liquidity resource requirement and identify each of the qualifying
liquid resources available to each Clearing Agency, which include (1)
deposits to the Clearing Agencies' respective Clearing Funds, or, for
DTC, its Participants Fund, made by Members or Participants pursuant to
the respective rules; (2) for DTC and NSCC, an annual committed credit
facility; (3) for NSCC, its Members' Supplemental Liquidity Deposits;
and (4) for GSD and MBSD, their respective rule-based CCLF program. As
such, the Commission finds that the Framework is consistent with Rule
17Ad-22(e)(7)(i) and (ii).\51\
---------------------------------------------------------------------------

    \51\ 17 CFR 240.17Ad-22(e)(7)(i) and (ii).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7)(iv) under the Act requires that a covered
clearing agency undertake due diligence to confirm that it has a
reasonable basis to believe each of its liquidity providers, whether or
not such liquidity provider is a clearing member, has (A) sufficient
information to understand and manage the liquidity provider's liquidity
risks; and (B) the capacity to perform as required under its
commitments to provide liquidity to the covered clearing agency.\52\
Further, Rule 17Ad-22(e)(7)(v) under the Act requires that a covered
clearing agency maintain and test with each liquidity provider, to the
extent practicable, the covered clearing agency's procedures and
operational capacity for accessing each type of relevant liquid
resource under Rule 17Ad-22(e)(7)(i) at least annually.\53\
---------------------------------------------------------------------------

    \52\ 17 CFR 240.17Ad-22(e)(7)(iv).
    \53\ 17 CFR 240.17Ad-22(e)(7)(v).
---------------------------------------------------------------------------

    The Framework would describe how the Clearing Agencies undertake
due diligence with respect to their liquidity providers, and conduct
testing with those providers at least annually. The Framework would
describe how the Clearing Agencies review the limits of outstanding
investments and collateral held of each Clearing Agency's investment
counterparties, and conduct formal reviews of the reliability of their
liquidity providers in extreme but plausible market conditions to test
the liquidity providers' reliability. These reviews, as described in
the Framework, would also include a credit analysis of each liquidity
provider. Further, the Framework would describe annual operational
testing of the DTC and NSCC committed credit facility, which is
conducted to confirm the lenders are operationally able to perform
their commitments and are familiar with the drawdown process, and would
state that each of the Clearing Agencies would annually test borrowing
of their liquidity resources to confirm providers are operationally
able to perform their commitments and are familiar with the drawdown
process. The due diligence and testing required above are designed to
inform the Clearing Agencies to confirm that they have a reasonable
basis to believe each of the liquidity providers has sufficient
information to understand and manage the liquidity provider's liquidity
risk and the capacity to perform as required. In addition, the due
diligence and testing are designed to maintain and check the Clearing
Agencies' procedures and operational capacity for accessing their
respective liquid resources. Therefore, the Commission finds that the
Framework is consistent with Rules 17Ad-22(e)(7)(iv) and (v) under the
Act.\54\
---------------------------------------------------------------------------

    \54\ 17 CFR 240.17Ad-22(e)(7)(iv) and (v).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7)(vi) under the Act requires that a covered
clearing agency determine the amount and regularly test the sufficiency
of the liquid resources held for purposes of meeting the minimum liquid
resource requirement under Rule 17Ad-22(e)(7)(i) by, at a minimum: (A)
Conducting stress testing of its liquid resources at least once each
day using standard and predetermined parameters and assumptions; (B)
conducting a comprehensive analysis on at least a monthly basis of the
existing stress testing scenarios, models, and underlying parameters
and assumptions used in evaluating liquidity needs and resources, and
considering modifications to ensure they are appropriate for
determining the clearing agency's identified liquidity needs and

resources in light of current and evolving market conditions; (C)
conducting a comprehensive analysis of the scenarios, models, and
underlying parameters and assumptions used in evaluating liquidity
needs and resources more frequently than monthly when the products
cleared or markets served display high volatility or become less
liquid, when the size or concentration of positions held by the
clearing agency's participants increases significantly, or in other
appropriate circumstances described in such policies and procedures;
and (D) reporting the results of its analyses under Rule 17Ad-
22(e)(7)(vi)(B) and (C) to appropriate decision makers at the covered
clearing agency, including but not limited to, its risk management
committee or board of directors, and using these results to evaluate
the adequacy of and adjust its liquidity risk management methodology,
model parameters, and any other relevant aspects of its liquidity risk
management framework.\55\
---------------------------------------------------------------------------

    \55\ 17 CFR 240.17Ad-22(e)(7)(vi).
---------------------------------------------------------------------------

    As described above, the Framework would describe how FICC and NSCC
would use the three types of stress scenarios to test their daily
liquidity to ensure their liquidity resources are sufficient to meet
the obligations of their largest Affiliated Family of Members. For
example, under a Level 3 Scenario, FICC or NSCC could assume certain
standard and predetermined parameters that are designed to be extreme
but plausible. The Framework would also state that daily liquidity
studies may be performed for informational and monitoring purposes
using stress scenarios that exceed the requirements of Rule 17Ad-
22(e)(7)(vi)(A).\56\ Furthermore, the Framework would further describe
the analysis and escalation process for any liquidity shortfalls that
are identified through the daily studies utilizing the Level 2 and
Level 3 Scenarios. The Framework would also provide how liquidity
stress testing is comprehensively analyzed on a weekly basis, and how
these analyses are escalated on at least a monthly basis and used to
evaluate the adequacy of the qualifying liquid resources of FICC or
NSCC. Because the Framework is designed to stress test the sufficiency
of the liquid resources daily, conduct a comprehensive analysis of
liquidity stress testing on a weekly basis, and report the results of
such analysis to the management committee responsible for oversight of
risk management matters, the Commission finds that the Framework
concerning FICC and NSCC is consistent with Rule 17Ad-22(e)(7)(vi)
under the Act.\57\
---------------------------------------------------------------------------

    \56\ 17 CFR 240.17Ad-22(e)(7)(vi)(A).
    \57\ 17 CFR 240.17Ad-22(e)(7)(vi).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7)(vii) under the Act requires that a covered
clearing agency perform a model validation of its liquidity risk models
not less than annually or more frequently as may be contemplated by the
covered clearing agency's risk management framework established
pursuant to Rule 17Ad-22(e)(3).\58\ The Framework would describe how
the Clearing Agencies' liquidity risk models are subject to independent
model validations on at least an annual basis. As such, the Commission
finds that the Framework is consistent with Rule 17Ad-22(e)(7)(vii)
under the Act.\59\
---------------------------------------------------------------------------

    \58\ 17 CFR 240.17Ad-22(e)(7)(vii) and 17 CFR 240.17Ad-22(e)(3).
    \59\ 17 CFR 240.17Ad-22(e)(7)(vii).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7)(viii) under the Act requires that a covered
clearing agency address foreseeable liquidity shortfalls that would not
be covered by the covered clearing agency's liquid resources and seek
to avoid unwinding, revoking, or delaying the same-day settlement of
payment obligations.\60\ As described above, the Framework would
describe how each of the Clearing Agencies addresses foreseeable
liquidity shortfalls that would not be covered by their existing liquid
resources through, for example, modification to its existing liquid
resources. Therefore, the Commission finds that the Framework is
consistent with Rule 17Ad-22(e)(7)(viii) under the Act.\61\
---------------------------------------------------------------------------

    \60\ 17 CFR 240.17Ad-22(e)(7)(viii).
    \61\ Id.
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(7)(ix) under the Act requires that a covered
clearing agency describe the covered clearing agency's process to
replenish any liquid resources that the clearing agency may employ
during a stress event.\62\ The Framework would describe how the
Clearing Agencies' existing liquid resources may be replenished in
accordance with the respective rules of the Clearing Agencies. For
example, the Framework would describe how the Clearing Agencies may use
proceeds that may be available from the liquidation of a defaulting
Member or Participant's portfolio (including the sale of collateral
used to secure a borrowing) to repay liquidity borrowings, thus
replenishing the relevant Clearing Agency's liquid resources.
Therefore, the Commission finds that the Framework is consistent with
Rule 17Ad-22(e)(7)(ix) under the Act.\63\
---------------------------------------------------------------------------

    \62\ 17 CFR 240.17Ad-22(e)(7)(ix).
    \63\ Id.
---------------------------------------------------------------------------

IV. Request for Written Comments

    The Commission requests that interested persons provide written
submissions of their views, data, and arguments concerning Amendment
No. 6 to File Number SR-DTC-2017-004, SR-NSCC-2017-005, or SR-FICC-
2017-008. In particular, the Commission invites the written views of
interested persons concerning whether Amendment No. 6 is consistent
with Section 17A(b)(3)(F) of the Act,\64\ Rule 17Ad-22(e)(7) under the
Act,\65\ or any other provision of the Act, rules, and regulations
thereunder. Comments may be submitted by any of the following methods:
---------------------------------------------------------------------------

    \64\ 15 U.S.C. 78q-1(b)(3)(F).
    \65\ 17 CFR 240.17Ad-22(e)(7).
---------------------------------------------------------------------------

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-DTC-2017-004, SR-NSCC-2017-005, or SR-FICC-2017-008 on
the subject line.

Paper Comments

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

All submissions should refer to File Number SR-DTC-2017-004, SR-NSCC-
2017-005, or SR-FICC-2017-008. One of these file numbers should be
included on the subject line if email is used. To help the Commission
process and review your comments more efficiently, please use only one
method. The Commission will post all comments on the Commission's
internet website (http://www.sec.gov/rules/sro.shtml). Copies of the
submission, all subsequent amendments, all written statements with
respect to Amendment No. 6 that are filed with the Commission, and all
written communications relating to Amendment No. 6 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 Clearing Agencies, 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-DTC-2017-004, SR-NSCC-2017-
005, or SR-FICC-2017-008 and should be submitted on or before January
18, 2018. If comments are received, any rebuttal comments should be
submitted on or before February 1, 2018.

V. Accelerated Approval of the Amended Proposed Rule Changes

    The Commission finds good cause, pursuant to Section 19(b)(2) of
the Act,\66\ to approve the Amended Proposed Rule Changes prior to the
30th day after the date of publication of Amendment No. 6 in the
Federal Register.
---------------------------------------------------------------------------

    \66\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

    As discussed more fully above, the Commission finds that the
Framework could help Clearing Agencies to withstand the liquidity risks
that arise in or are borne by the Clearing Agencies, and to continue
their critical operations and services, which helps to promote the
prompt and accurate clearance and settlement of securities
transactions, consistent with Section 17A(b)(3)(F) of the Act.\67\ By
maintaining liquidity resources and monitoring sufficiency of the
available liquidity resources, the Commission further finds that the
Framework is designed to help reduce the possibility of the Clearing
Agencies' failure, as well as mitigate the risk of financial loss
contagion caused by the Clearing Agencies' failure. Therefore, the
Framework could help further assure the safeguarding of securities and
funds which are in the custody or control of the Clearing Agencies, or
for which they are responsible, consistent with Section
17A(b)(3)(F).\68\
---------------------------------------------------------------------------

    \67\ 15 U.S.C. 78q-1(b)(3)(F).
    \68\ Id.
---------------------------------------------------------------------------

    More specifically regarding Amendment No. 6, the amendment
clarifies and modifies the Framework by (1) providing more accurate
descriptions of DTC's Collateral Monitor and Net Debit Cap, (2)
modifying and elaborating on FICC and NSCC's daily liquidity stress
testing to ensure that their respective liquidity resources are
sufficient to meet the cash settlement obligations of their respective
largest Affiliated Family of Members, and (3) providing the analysis
and escalation process for liquidity shortfalls that are identified
through the daily testing with respect to Level 2 and Level 3
Scenarios.
    By providing more accurate descriptions of DTC's liquidity risk
management tools, Amendment No. 6 would help ensure that the DTC Rules
are transparent and clear, which would help enable its Participants to
better identify and understand the risks they incur by participating in
DTC. In addition, by providing additional detail around FICC and NSCC's
daily liquidity sufficiency testing, as well as the analysis and
escalation process for liquidity shortfalls, Amendment No. 6 could help
mitigate the risk that FICC and NSCC would be unable to promptly meet
their settlement obligations due to insufficient liquidity. By doing
so, the Commission finds that Amendment No. 6 could help FICC and NSCC
to be in a better position to withstand their respective liquidity
risks, thereby promoting the prompt and accurate clearance and
settlement of securities, consistent with Section 17A(b)(3)(F) of the
Act.\69\
---------------------------------------------------------------------------

    \69\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Accordingly, the Commission finds good cause for approving the
Amended Proposed Rule Changes on an accelerated basis, pursuant to
Section 19(b)(2) of the Act.\70\
---------------------------------------------------------------------------

    \70\ 15 U.S.C. 78s(b)(2).
---------------------------------------------------------------------------

VI. Conclusion

    On the basis of the foregoing, the Commission finds that the
proposed rule changes, as modified by Amendment No. 1, 3, and 6 are
consistent with the requirements of the Act and in particular with the
requirements of Section 17A of the Act \71\ and the rules and
regulations thereunder.
---------------------------------------------------------------------------

    \71\ 15 U.S.C. 78q-1.
---------------------------------------------------------------------------

    It is therefore ordered, pursuant to Section 19(b)(2) of the Act,
that the proposed rule changes SR-DTC-2017-004, SR-NSCC-2017-005, or
SR-FICC-2017-008 as modified by Amendment Nos. 1, 3, and 6 be, and
hereby are, APPROVED on an accelerated basis.\72\
---------------------------------------------------------------------------

    \72\ In approving the Amended Proposed Rule Changes, the
Commission considered the proposals' impact on efficiency,
competition and capital formation. 15 U.S.C. 78c(f).
    \73\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\73\
    Eduardo Aleman,
Assistant Secretary.
[FR Doc. 2017-27997 Filed 12-27-17; 8:45 am]
 BILLING CODE 8011-01-P


regulated area includes a section of   2. The 4th
                                    the Mattaponi River approximately       Saturday and
                                    three-quarter mile long and bounded     Sunday in June.
                                    in width by each shoreline, bounded
                                    to the east by a line that runs
                                    parallel along longitude
                                    076[deg]52'43'' W, near the mouth of
                                    Mitchell Hill Creek, and bounded to
                                    the west by a line that runs parallel
                                    along longitude 076[deg]53'41'' W
                                    just north of Wakema, VA. The
                                    following locations are within the
                                    regulated area:
                                   Buffer zone: The navigable waters of
                                    Mattaponi River extending 200 yards
                                    outwards from east and west boundary
                                    lines described in this section.
                                   Spectator area: The regulated area
                                    cannot accommodate spectator vessels
                                    due to limitations posed by shallow
                                    water and insufficient waters to
                                    provide adequate separation between
                                    race course and other vessels.
                                    Spectators are encouraged to view the
                                    race from points along the adjacent
                                    shoreline.

Norfolk Harborfest...............  The navigable waters of the Elizabeth   1. The 1st        Norfolk Festevents,
                                    River and its branches from shoreline   consecutive       Ltd.
                                    to shoreline, bounded to the            Friday,
                                    northwest by a line drawn across the    Saturday, and
                                    Port Norfolk Reach section of the       Sunday in June;
                                    Elizabeth River between the north       or
                                    corner of the landing at Hospital      2. The 2nd
                                    Point, Portsmouth, VA, latitude         consecutive
                                    36[deg]50'51.6'' N, longitude           Friday,
                                    076[deg]18'07.9'' W, and the north      Saturday, and
                                    corner of the City of Norfolk Mooring   Sunday in June.
                                    Pier at the foot of Brooks Avenue
                                    located at latitude 36[deg]51'00.3''
                                    N, longitude 076[deg]17'51'' W;
                                    bounded on the southwest by a line
                                    drawn from the southern corner of the
                                    landing at Hospital Point,
                                    Portsmouth, VA, at latitude
                                    36[deg]50'50.9'' N, longitude
                                    076[deg]18'07.7'' W, to the northern
                                    end of the eastern most pier at the
                                    Tidewater Yacht Agency Marina,
                                    located at latitude 36[deg]50'33.6''
                                    N, longitude 076[deg]17'54.1'' W;
                                    bounded to the south by a line drawn
                                    across the Lower Reach of the
                                    Southern Branch of the Elizabeth
                                    River, between the Portsmouth
                                    Lightship Museum located at the foot
                                    of London Boulevard, in Portsmouth,
                                    VA at latitude 36[deg]50'13.2'' N,
                                    longitude 076[deg]17'44.8'' W, and
                                    the northwest corner of the Norfolk
                                    Shipbuilding & Drydock, Berkley
                                    Plant, Pier No. 1, located at
                                    latitude 36[deg]50'08.8'' N,
                                    longitude 076[deg]17'37.5'' W; and to
                                    the southeast by the Berkley Bridge
                                    which crosses the Eastern Branch of
                                    the Elizabeth River between Berkley
                                    at latitude 36[deg]50'21.5'' N,
                                    longitude 076[deg]17'14.5'' W, and
                                    Norfolk at latitude 36[deg]50'35'' N,
                                    longitude 076[deg]17'10'' W.
Pony Penning Swim................  The navigable waters of Assateague      1. The last       Chincoteague
                                    Channel from shoreline to shoreline,    Wednesday and     Volunteer Fire
                                    bounded to the east by a line drawn     following         Department.
                                    from latitude 37[deg]55'01'' N,         Friday in July;
                                    longitude 075[deg]22'40'' W, thence     or
                                    south to latitude 37[deg]54'50'' N,    2. The 1st
                                    longitude 075[deg]22'46'' W; and to     Wednesday and
                                    the southwest by a line drawn from      following
                                    latitude 37[deg]54'54'' N, longitude    Friday in
                                    075[deg]23'00'' W, thence east to       August.
                                    latitude 37[deg]54'49'' N, longitude
                                    075[deg]22'49'' W.
Poquoson Seafood Festival          Regulated area: The navigable waters    1. The last       City of Poquoson.
 Workboat Races.                    of the Back River, Poquoson, VA. The    Sunday in
                                    following locations are within the      September; or
                                    regulated area:                        2. The 1st
                                   Race area: The area is bounded on the    Sunday of
                                    north by a line drawn along latitude    October; or
                                    37[deg]06'30'' N, bounded on the       3. The 2nd
                                    south by a line drawn along latitude    Sunday of
                                    37[deg]06'15'' N, bounded on the east   October.
                                    by a line drawn along longitude
                                    076[deg]18'52'' W, and bounded on the
                                    west by a line drawn along longitude
                                    076[deg]19'30'' W.
                                   Buffer zone: The navigable waters of
                                    Back River extending 200 yards
                                    outwards from east and west boundary
                                    lines, and 100 yards outwards from
                                    the north and south boundary lines
                                    described in this section.
                                   Spectator area: Is located along the
                                    south boundary line of the buffer
                                    zone described in this section and
                                    continues to the south for 300 yards.
Something in the Water...........  Regulated Area: All navigable waters    The last Friday,  Redrock
                                    of the North Atlantic Ocean             Saturday, and     Entertainment
                                    immediately adjacent to Virginia        Sunday in         Services.
                                    Beach, VA bounded on the south side     April.
                                    by a line beginning on the shore line
                                    at latitude 36[deg]49'49.20'' N,
                                    longitude 75[deg]58'04.54'' W, thence
                                    easterly to latitude
                                    36[deg]49'49.27'' N, longitude
                                    75[deg]57'58.49'' W, just seaward of
                                    the Rudee Inlet break-wall, thence
                                    northerly to latitude
                                    36[deg]51'34.83'' N, longitude
                                    75[deg]58'28.82'' W, adjacent to
                                    Neptune's Park at 30th street, thence
                                    westerly to the shore line at
                                    latitude 36[deg]51'34.83'' N,
                                    longitude 75[deg]58'35'' W, and
                                    thence southerly along the shore line
                                    back to the beginning point.
                                   Buffer zone: The navigable waters of
                                    the North Atlantic Ocean extending
                                    200 yards towards the eastern
                                    boundary line described in this
                                    section.
                                   Spectator Area: Spectator craft are
                                    not permitted within the regulated
                                    area during the enforcement period.
                                    The regulated area is established to
                                    provide adequate separation between
                                    event participants on the beach and
                                    prohibit unauthorized waterside entry
                                    during the event.
Virginia Boat Club (VBC) Sprints   All navigable waters of the James       1. The 2nd        Virginia Boat Club
 Regatta on the James River.        River in the vicinity of Robious        Saturday or       Richmond, VA.
                                    Landing Park, Midlothian, VA. The       Sunday in June;
                                    regulated area includes a section of    or
                                    the James River approximately 1300     2. The 3rd
                                    yards long and bounded in width by      Saturday or
                                    each shoreline, bounded to the east     Sunday in June.
                                    by a line that runs parallel along
                                    longitude 077[deg]38'04'' W, and
                                    bounded to the west by a line that
                                    runs parallel along longitude
                                    077[deg]38'54'' W, north of Robious
                                    Landing Park.
----------------------------------------------------------------------------------------------------------------
\1\ As noted, the enforcement dates and times for each of the listed events in this table are subject to change.
  In the event of a change, or for enforcement periods listed that do not allow a specific date or dates to be
  determined, the Captain of the Port will provide notice to the public by publishing a Notice of Enforcement in
  the Federal Register, as well as, issuing a Broadcaster Notice to Mariner.

    (4) Coast Guard Sector North Carolina--COTP Zone.

                                           Table 4 to Paragraph (i)(4)
----------------------------------------------------------------------------------------------------------------
                                                                            Enforcement \1\
              Event                            Regulated area                  period(s)           Sponsor
----------------------------------------------------------------------------------------------------------------
The Crossing.....................  All navigable waters of Lake Gaston,    The 2nd Saturday  Organization to
                                    from shoreline to shoreline, directly   in August.        Support the Arts,
                                    under the length of Eaton Ferry                           Infrastructure,
                                    Bridge (NC State Route 903),                              and Learning on
                                    commencing at the southern bridge                         Lake Gaston, AKA
                                    entrance at latitude 36[deg]30'38''                       O'SAIL.
                                    N, longitude 077[deg]57'53'' W, and
                                    extending to the northern bridge
                                    entrance at latitude 36[deg]31'19''
                                    N, longitude 077[deg]57'33'' W, and
                                    bounded to the west by a line drawn
                                    parallel and 100 yards from and the
                                    western side of Eaton Ferry Bridge
                                    near Littleton, NC.

PPD Ironman North Carolina.......  All navigable waters of Masonboro       1. The 3rd        Ironman,
                                    Inlet, shoreline to shoreline           Friday or         Wilmington, NC.
                                    starting at location latitude           Saturday in
                                    34[deg]11'13'' N, longitude             October; or
                                    077[deg]48'53'' W, thence north along  2. The 4th
                                    Banks Channel to latitude               Friday or
                                    34[deg]12'14'' N, longitude             Saturday in
                                    077[deg]48'04'' W, thence west to       October; or
                                    Motts channel, terminating at Sea      3. The last
                                    Path Marina at latitude                 Friday or
                                    34[deg]12'44'' N, longitude             Saturday in
                                    077[deg]48'25'' W, Wrightsville         October.
                                    Beach, NC.
Roanoke River Races..............  All navigable waters of the Roanoke     1. The 1st        Virginia Outlaw
                                    River in Plymouth, NC, from             Saturday and      Drag Boat
                                    approximate positions: Latitude         Sunday in         Association
                                    35[deg]52'25'' N, longitude             August; or        (VODBA).
                                    076[deg]44'33'' W, then northwest to   2. The 2nd
                                    latitude 35[deg]52'29'' N, longitude    Saturday and
                                    076[deg]44'37'' W, then southwest       Sunday in
                                    along the shoreline to latitude         August; or
                                    35[deg]52'00'' N, longitude            3. The 3rd
                                    076[deg]45'31'' W, then south to        Saturday and
                                    latitude 35[deg]51'56'' N, longitude    Sunday in
                                    076[deg]45'30'' W, then northeast       August; or
                                    along the shoreline to the point of    4. The 4th
                                    origin, a length of approximately one   Saturday and
                                    mile.                                   Sunday in
                                                                            August;
                                                                           And
                                                                           1. The 2nd
                                                                            Saturday and
                                                                            Sunday in
                                                                            October; or
                                                                           2. The 3rd
                                                                            Saturday and
                                                                            Sunday in
                                                                            October; or
                                                                           3. The 4th
                                                                            Saturday and
                                                                            Sunday in
                                                                            October; or
                                                                           4. The last
                                                                            Saturday and
                                                                            Sunday in
                                                                            October.
Swim the Loop and Motts Channel    All navigable waters surrounding        1. The 4th        Without Limits
 Sprint.                            Harbor Island, NC including             Saturday or       Coaching, Inc.
                                    Intracoastal waterway, Lees Cut,        Sunday in
                                    Banks Channel and Motts Channel.        September; or
                                    Enforcement area extends               2. The last
                                    approximately 100 yards from the        Saturday or
                                    shoreline of Harbor Island and is       Sunday in
                                    bounded by a line connecting the        September.
                                    following points; latitude
                                    34[deg]12'55'' N, longitude
                                    077[deg]48'59'' W, thence northeast
                                    to latitude 34[deg]13'16'' N,
                                    longitude 077[deg]48'39'' W, thence
                                    southeast to latitude 34[deg]13'06''
                                    N, longitude 077[deg]48'18'' W,
                                    thence east to latitude
                                    34[deg]13'12'' N, longitude
                                    077[deg]47'41'' W, thence southeast
                                    to latitude 34[deg]13'06'' N,
                                    longitude 077[deg]47'33'' W, thence
                                    south to latitude 34[deg]12'31'' N,
                                    longitude 077[deg]47'47'' W, thence
                                    southwest to latitude 34[deg]12'11''
                                    N, longitude 077[deg]48'01'' W,
                                    thence northwest to latitude
                                    34[deg]12'29'' N, longitude
                                    077[deg]48'29'' W, thence north to
                                    latitude 34[deg]12'44'' N, longitude
                                    077[deg]48'32'' W, thence northwest
                                    to point of origin.
Wilmington YMCA Triathlon........  All navigable waters of Motts Channel,  1. The 3rd, 4th,  Wilmington, NC,
                                    from shoreline to shoreline and         or last           YMCA.
                                    between Wrightsville Channel Day        Saturday in
                                    beacon 14 (LLNR 30220), located at      September; or
                                    latitude 34[deg]12'17.8'' N,           2. The last
                                    longitude 077[deg]48'09.1'' W, thence   Saturday in
                                    westward to Wrightsville Channel Day    October; or
                                    beacon 25 (LLNR 30255), located at     3. The 1st or
                                    latitude 34[deg]12'52.1'' N,            2nd Saturday in
                                    longitude 077[deg]48'53.5'' W.          November.
----------------------------------------------------------------------------------------------------------------
\1\ As noted, the enforcement dates and times for each of the listed events in this table are subject to change.
  In the event of a change, or for enforcement periods listed that do not allow a specific date or dates to be
  determined, the Captain of the Port will provide notice to the public by publishing a Notice of Enforcement in
  the Federal Register, as well as, issuing a Broadcaster Notice to Mariner.

    Dated: October 26, 2021.
Laura M. Dickey,
Rear Admiral, U.S. Coast Guard, Commander, Fifth Coast Guard District.
[FR Doc. 2021-24066 Filed 11-5-21; 8:45 am]
BILLING CODE 9110-04-P