[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Notices]
[Pages 12681-12682]
[FR Doc No: 2021-04465]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 4026-054]

Androscoggin Reservoir Company; Notice of Application Accepted
for Filing and Soliciting Comments, Motions To Intervene, and Protests

    Take notice that the following hydroelectric application has been
filed with the Commission and is available for public inspection:
    a. Type of Application: Non-Capacity Amendment of License.
    b. Project No.: 4026-054.
    c. Date Filed: December 31, 2020, and supplemented on February 11,
2021.
    d. Applicant: Androscoggin Reservoir Company.
    e. Name of Project: Aziscohos Hydroelectric Project.
    f. Location: The project is located on the Magalloway River in
Oxford County, Maine.
    g. Filed Pursuant to: Federal Power Act 16 U.S.C. 791a-825r.
    h. Applicant Contact: Mr. Randall Dorman, Licensing Manager,
Brookfield Renewable, 150 Main Street, Lewiston, ME 04240; telephone
(207) 755-5605 and email<EMAIL_ADDRESS>    i. FERC Contact: Linda Stewart,<PHONE_NUMBER>,
<EMAIL_ADDRESS>    j. Deadline for filing comments, motions to intervene, and protests
is 30 days from the issuance date of this notice by the Commission.
    The Commission strongly encourages electronic filing. Please file
comments, motions to intervene, and protests using the Commission's
eFiling system at http://www.ferc.gov/docs-filing/efiling.asp.
Commenters can submit brief comments up to 6,000 characters, without
prior registration, using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact
information at the end of your comments. For assistance, please contact
FERC Online Support at<EMAIL_ADDRESS>(866) 208-3676 (toll
free), or<PHONE_NUMBER> (TTY). In lieu of electronic filing, you may
submit a paper copy. Submissions sent via the U.S. Postal Service must
be addressed to: Kimberly D. Bose, Secretary, Federal Energy Regulatory
Commission, 888 First Street NE, Room 1A, Washington, DC 20426.
Submissions sent via any other carrier must be addressed to: Kimberly
D. Bose, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins
Avenue, Rockville, Maryland 20852. The first page of any filing should
include docket number P-4026-054. Comments emailed to Commission staff
are not considered part of the Commission record.
    The Commission's Rules of Practice and Procedure require all
intervenors filing documents with the Commission to serve a copy of
that document on each person whose name appears on the official service
list for the project. Further, if an intervenor files comments or
documents with the Commission relating to the merits of an issue that
may affect the responsibilities of a particular resource agency, it
must also serve a copy of the document on that resource agency.
    k. Description of Request: The Androscoggin Reservoir Company
(licensee) proposes to administratively remove from the project license
the existing 23.5-mile-long, 34.5-kilovolt transmission line. The
licensee specifies that the transmission line, which is owned by
Central Maine Power Company, should no longer be included in the
license as a primary line because the line does not solely transmit
power from the project to the interconnected grid, but also transmits
power from the grid to the customers of the utility. Further, the
licensee states that the point of interconnection of project power with
the transmission grid occurs at the existing substation located
adjacent to the powerhouse.
    l. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
internet through the Commission's Home Page (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. At this time,
the Commission has suspended

access to the Commission's Public Reference Room, due to the
proclamation declaring a National Emergency concerning the Novel
Coronavirus Disease (COVID-19), issued by the President on March 13,
2020. For assistance, contact FERC at<EMAIL_ADDRESS>or
call toll-free,<PHONE_NUMBER> or TYY,<PHONE_NUMBER>. Agencies may
obtain copies of the application directly from the applicant.
    m. Individuals desiring to be included on the Commission's mailing
list should so indicate by writing to the Secretary of the Commission.
    n. Comments, Protests, or Motions to Intervene: Anyone may submit
comments, a protest, or a motion to intervene in accordance with the
requirements of Rules of Practice and Procedure, 18 CFR 385.210, .211,
and .214. In determining the appropriate action to take, the Commission
will consider all protests or other comments filed, but only those who
file a motion to intervene in accordance with the Commission's Rules
may become a party to the proceeding. Any comments, protests, or
motions to intervene must be received on or before the specified
deadline date for the particular application.
    o. Filing and Service of Responsive Documents: Any filing must (1)
bear in all capital letters the title ``COMMENTS'', ``PROTEST'', or
``MOTION TO INTERVENE'' as applicable; (2) set forth in the heading the
name of the applicant and the project number of the application to
which the filing responds; (3) furnish the name, address, and telephone
number of the person commenting, protesting, or intervening; and (4)
otherwise comply with the requirements of 18 CFR 385.2001 through
385.2005. All comments, motions to intervene, or protests must set
forth their evidentiary basis. Any filing made by an intervenor must be
accompanied by proof of service on all persons listed in the service
list prepared by the Commission in this proceeding, in accordance with
18 CFR 385.2010.

    Dated: February 26, 2021.
Kimberly D. Bose,
Secretary.
[FR Doc. 2021-04465 Filed 3-3-21; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register Volume 84, Number 208 (Monday, October 28, 2019)]
[Notices]
[Pages 57720-57721]
[FR Doc No: 2019-23491]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 14985-001]

Cherokee Rivers Company, LLC; Notice of Intent To File License
Application, Filing of Pre-Application Document, and Approving Use of
The Traditional Licensing Process

    a. Type of Filing: Notice of Intent to File License Application and
Request to Use the Traditional Licensing Process.
    b. Project No.: 14985-001.
    c. Date Filed: August 22, 2019.
    d. Submitted By: Cherokee Rivers Company, LLC (Cherokee Rivers).
    e. Name of Project: Lower Coosawattee Hydroelectric Project.
    f. Location: Located at the U.S. Army Corps of Engineers' (Corps)
existing Carters Reregulation Dam, located on the Coosawattee River in
Murray County, Georgia. The project would occupy 1.35 acres of federal
land administered by the Corps.
    g. Filed Pursuant to: 18 CFR 5.3 of the Commission's regulations.
    h. Potential Applicant Contact: Robert Davis, 390 Timber Laurel
Lane, Lawrenceville, GA 30043; phone:<PHONE_NUMBER>.
    i. FERC Contact: Dustin Wilson at<PHONE_NUMBER>; or email at
<EMAIL_ADDRESS>    j. Cherokee Rivers filed its request to use the Traditional
Licensing Process on August 22, 2019. Cherokee Rivers provided public
notice of its request on August 14, 2019. In a letter dated October 18,
2019, the Director of the Division of Hydropower Licensing approved
Cherokee Rivers' request to use the Traditional Licensing Process.
    k. With this notice, we are initiating informal consultation with
the U.S. Fish and Wildlife Service and/or the National Marine Fisheries
Service under section 7 of the Endangered Species Act and the joint
agency regulations thereunder at 50 CFR, Part 402. We are also
initiating consultation with the Georgia State Historic Preservation
Officer, as required by section 106, National Historic Preservation
Act, and the implementing regulations of the Advisory Council on
Historic Preservation at 36 CFR 800.2.
    l. With this notice, we are designating Cherokee Rivers as the
Commission's non-federal representative for carrying out informal
consultation pursuant to section 7 of the Endangered Species Act; and
consultation pursuant to section 106 of the National Historic
Preservation Act.
    m. Cherokee Rivers filed a Pre-Application Document (PAD);
including a proposed process plan and schedule with the Commission,
pursuant to 18 CFR 5.6 of the Commission's regulations.
    n. A copy of the PAD is available for review at the Commission in
the Public Reference Room, or may be viewed on the Commission's website
(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). A copy is also available for inspection and

reproduction at the address in paragraph h.
    o. The licensee states its unequivocal intent to submit an
application for an original license for Project No. 14985.
    p. 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.

    Dated: October 18, 2019.
Kimberly D. Bose,
Secretary.
[FR Doc. 2019-23491 Filed 10-25-19; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Rules and Regulations]
[Pages 20553-20554]
[FR Doc No: 2011-8840]

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DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

44 CFR Part 65

[Docket ID FEMA-2011-0002; Internal Agency Docket No. FEMA-B-1180]

Changes in Flood Elevation Determinations

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Interim rule.

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SUMMARY: This interim rule lists communities where modification of the
Base (1% annual-chance) Flood Elevations (BFEs) is appropriate because
of new scientific or technical data. New flood insurance premium rates
will be calculated from the modified BFEs for new buildings and their
contents.

DATES: These modified BFEs are currently in effect on the dates listed
in the table below and revise the Flood Insurance Rate Maps (FIRMs) in
effect prior to this determination for the listed communities.
    From the date of the second publication of these changes in a
newspaper of local circulation, any person has ninety (90) days in
which to request through the community that the Deputy Federal
Insurance and Mitigation Administrator reconsider the changes. The
modified BFEs may be changed during the 90-day period.

ADDRESSES: The modified BFEs for each community are available for
inspection at the office of the Chief Executive Officer of each
community. The respective addresses are listed in the table below.

FOR FURTHER INFORMATION CONTACT: Luis Rodriguez, Chief, Engineering
Management Branch, Federal Insurance and Mitigation Administration,
Federal Emergency Management Agency, 500 C Street SW., Washington, DC
20472,<PHONE_NUMBER>, or (e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: The modified BFEs are not listed for each
community in this interim rule. However, the address of the Chief
Executive Officer of the community where the modified BFE
determinations are available for inspection is provided.
    Any request for reconsideration must be based on knowledge of
changed conditions or new scientific or technical data.
    The modifications are made pursuant to section 201 of the Flood
Disaster Protection Act of 1973, 42 U.S.C. 4105, and are in accordance
with the National Flood Insurance Act of 1968, 42 U.S.C. 4001 et seq.,
and with 44 CFR part 65.
    For rating purposes, the currently effective community number is
shown and must be used for all new policies and renewals.
    The modified BFEs are the basis for the floodplain management
measures that the community is required either to adopt or to show
evidence of being already in effect in order to qualify or to remain
qualified for participation in the National Flood Insurance Program
(NFIP).
    These modified BFEs, together with the floodplain management
criteria required by 44 CFR 60.3, are the minimum that are required.
They should not be construed to mean that the community must change any
existing ordinances that are more stringent in their floodplain
management requirements. The community may at any time enact stricter
requirements of its own or pursuant to policies established by other
Federal, State, or regional entities. The changes in BFEs are in
accordance with 44 CFR 65.4.
    National Environmental Policy Act. This interim rule is
categorically excluded from the requirements of 44 CFR part 10,
Environmental Consideration. An environmental impact assessment has not
been prepared.
    Regulatory Flexibility Act. As flood elevation determinations are
not within the scope of the Regulatory Flexibility Act, 5 U.S.C. 601-
612, a regulatory flexibility analysis is not required.
    Regulatory Classification. This interim rule is not a significant
regulatory action under the criteria of section 3(f) of Executive Order
12866 of September 30, 1993, Regulatory Planning and Review, 58 FR
51735.
    Executive Order 13132, Federalism. This interim rule involves no
policies that have federalism implications under Executive Order 13132,
Federalism.
    Executive Order 12988, Civil Justice Reform. This interim rule
meets the applicable standards of Executive Order 12988.

List of Subjects in 44 CFR Part 65

    Flood insurance, Floodplains, Reporting and recordkeeping
requirements.

    Accordingly, 44 CFR part 65 is amended to read as follows:

PART 65--[AMENDED]

0
1. The authority citation for part 65 continues to read as follows:

    Authority:  42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR,
1979 Comp., p. 376.

Sec.  65.4  [Amended]

    The tables published under the authority of Sec.  65.4 are amended
as follows:

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                                                             Date and name of
         State and county           Location and case No.     newspaper where     Chief executive officer    Effective date of modification   Community
                                                           notice was published         of community                                             No.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Illinois:
    Kane..........................  Unincorporated areas   Aug. 19, 2010, Aug.   Ms. Karen McConnaughay     December 28, 2010..............       170896
                                     of Kane County (10-    26, 2010, The Fox     Chairman, Kane County
                                     05-2793P).             Valley Labor News.    Board, 719 South Batavia
                                                                                Avenue, Geneva, IL 60134.
    Kane..........................  Village of Hampshire   Aug. 19, 2010, Aug.   Mr. Jeffrey Magnussen,     December 28, 2010..............       170327
                                     (10-05-2793P).         26, 2010, The Fox     President, Village of
                                                            Valley Labor News.    Hampshire, 234 South
                                                                                State Street, P.O. Box
                                                                                457, Hampshire, IL 60140.
    Kane..........................  Village of Huntley     Aug. 23, 2010, Aug.   The Honorable Charles H.   December 28, 2010..............       170480
                                     (10-05-2793P).         30, 2010, The         Saas, Mayor, Village of
                                                            Northwest Herald.     Huntley, 10987 Main
                                                                                Street, Huntley, IL
                                                                                60142.
    Kane..........................  Village of Huntley     Aug. 16, 2010, Aug.   The Honorable Charles H.   December 21, 2010..............       170480
                                     (10-05-2799P).         23, 2010, The         Saas, Mayor, Village of
                                                            Northwest Herald.     Huntley, 10987 Main
                                                                                Street, Huntley, IL
                                                                                60142.

    Kane..........................  Unincorporated areas   Aug. 12, 2010, Aug.   Ms. Karen McConnaughay,    December 21, 2010..............       170896
                                     of Kane County (10-    19, 2010, The Fox     Chairman, Kane County
                                     05-2799P).             Valley Labor News.    Board, 719 South Batavia
                                                                                Avenue, Geneva, IL 60134.
    Kane..........................  Village of Gilberts    Aug. 16, 2010, Aug.   The Honorable Rick Zirk,   December 21, 2010..............       170326
                                     (10-05-2799P).         23, 2010, The Daily   President, Village of
                                                            Herald.               Gilberts, 87 Galligan
                                                                                Road, Gilberts, IL 60136.
    McHenry.......................  Unincorporated areas   Sept. 15, 2010,       Mr. Ken A. Koehler,        January 20, 2011...............       170732
                                     of McHenry County      Sept. 22, 2010, The   Chairman, McHenry County
                                     (10-05-3025P).         Woodstock             Board, 2200 North
                                                            Independent.          Seminary Avenue,
                                                                                Woodstock, IL 60098.
    McHenry.......................  City of Woodstock (10- Sept. 15, 2010,       The Honorable Dr. Brian    January 20, 2011...............       170488
                                     05-3025P).             Sept. 22, 2010, The   Sager, Mayor, City of
                                                            Woodstock             Woodstock, 811 Regina
                                                            Independent.          Court, Woodstock, IL
                                                                                60098.
Kansas:
    Johnson.......................  City of Leawood (10-   Aug. 25, 2010, Sept.  The Honorable Peggy J.     August 11, 2010................       200167
                                     07-0270P).             1, 2010, Sun          Dunn, Mayor, City of
                                                            Publications.         Leawood, 4800 Town
                                                                                Center Drive, Leawood,
                                                                                KS 66211.
    Johnson.......................  City of Overland Park  Aug. 25, 2010, Sept.  The Honorable Carl         August 11, 2010................       200174
                                     (10-07-0270P).         1, 2010, Sun          Gerlach, Mayor, City of
                                                            Publications.         Overland Park, 8500
                                                                                Santa Fe Drive, Overland
                                                                                Park, KS 66212.
Missouri:
    Phelps........................  City of Rolla (10-07-  Sept. 27, 2010,       The Honorable William S.   February 2, 2011...............       290285
                                     0800P).                October 4, 2010,      Jenks, III, Mayor, City
                                                            The Rolla Daily       of Rolla, 901 North Elm
                                                            News.                 Street, Rolla, MO 65401.
    Phelps........................  Unincorporated areas   Sept. 27, 2010,       The Honorable Randy        February 2, 2011...............       290284
                                     of Phelps County (10-  October 4, 2010,      Verkamp, Presiding
                                     07-0800P).             The Rolla Daily       Commissioner, Phelps
                                                            News.                 County, 200 North Main
                                                                                Street, Rolla, MO 65401.
New Hampshire: Hillsborough.......  City of Manchester     July 29, 2010, Aug.   The Honorable Ted Gatsas,  December 3, 2010...............       330169
                                     (10-01-1093P).         5, 2010, The Union    Mayor, City of
                                                            Leader Newspaper.     Manchester, One City
                                                                                Hall Plaza, Manchester,
                                                                                NH 03101.
Ohio:
    Greene........................  Unincorporated areas   Aug. 24, 2010, Aug.   The Honorable Rick         December 29, 2010..............       390193
                                     of Greene County (10-  31, 2010, The         Perales, Greene County
                                     05-2633P).             Greene County Daily.  Commissioner, 35 Greene
                                                                                Street, Xenia, OH 45385.
    Greene........................  City of Bellbrook (10- Aug. 24, 2010, Aug.   The Honorable Mary         December 29, 2010..............       390194
                                     05-2633P).             31, 2010, The         Graves, Mayor, City of
                                                            Greene County Daily.  Bellbrook, 15 East
                                                                                Franklin Street, 2nd
                                                                                Floor, Bellbrook, OH
                                                                                45305.
    Lorain........................  City of Elyria (09-05- Aug. 26, 2010, Sept.  The Honorable William M.   January 3, 2011................       390350
                                     6438P).                2, 2010, The          Grace, Mayor, City of
                                                            Chronicle-Telegram.   Elyria, 131 Court
                                                                                Street, Elyria, OH 44035.
    Delaware......................  Unincorporated areas   Sept. 15, 2010,       Mr. Tommy Thompson,        January 20, 2011...............       390146
                                     of Delaware County     Sept. 22, 2010,       Delaware County
                                     (10-05-4584P).         Westerville News      Commissioner, 101 North
                                                            and Public Opinions.  Sandusky Street,
                                                                                Delaware, OH 43015.
    Franklin......................  City of Westerville    Sept. 15, 2010,       The Honorable Kathy        January 20, 2011...............       390179
                                     (10-05-4584P).         Sept. 22, 2010, The   Cocuzzi, Mayor, City of
                                                            Columbus Dispatch.    Westerville, 21 South
                                                                                State Street,
                                                                                Westerville, OH 43081.
Wisconsin:
    Manitowoc.....................  Unincorporated areas   Sept. 13, 2010,       Mr. Bob Ziegelbauer,       January 18, 2011...............       550236
                                     of Manitowoc County    Sept. 20, 2010, The   Manitowoc County
                                     (10-05-2864P).         Herald-Times-         Executive, Courthouse,
                                                            Reporter.             1010 South 8th Street,
                                                                                Manitowoc, WI 54220.
    Dane..........................  City of Sun Prairie    Sept. 23, 2010,       The Honorable Joe Chase,   August 30, 2010................       550573
                                     (10-05-3124P).         Sept. 30, 2010, The   Mayor, City of Sun
                                                            Star.                 Prairie, 300 East Main
                                                                                Street, Sun Prairie, WI
                                                                                53590.
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(Catalog of Federal Domestic Assistance No. 97.022, ``Flood
Insurance.'')

    Dated: March 7, 2011.
Sandra K. Knight,
Deputy Federal Insurance and Mitigation Administrator, Mitigation,
Department of Homeland Security, Federal Emergency Management Agency.
[FR Doc. 2011-8840 Filed 4-12-11; 8:45 am]
BILLING CODE 9110-12-P


[Federal Register Volume 84, Number 166 (Tuesday, August 27, 2019)]
[Notices]
[Pages 44944-44952]
[FR Doc No: 2019-18385]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-86725; File No. SR-OCC-2019-007]

Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Proposed Rule Change Concerning a Proposed Capital
Management Policy That Would Support The Options Clearing Corporation's
Function as a Systemically Important Financial Market Utility

August 21, 2019.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Exchange Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby
given that on August 9, 2019, the Options Clearing Corporation
(``OCC'') filed with the Securities and Exchange Commission
(``Commission'' or ``SEC) the proposed rule change as described in
Items I, II, and III below, which Items have been prepared primarily by
OCC. 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. Clearing Agency's Statement of the Terms of Substance of the
Proposed Rule Change

    This proposed rule change by OCC would adopt a Capital Management
Policy, which includes OCC's plan to replenish its capital in the event
it falls close to or below its target capital (as defined below,
``Replenishment Plan''). The Capital Management Policy is included in
confidential Exhibit 5a of the filing.\3\ In order to implement aspects
of the new Capital Management Policy, the proposed rule change would
also amend the following governing documents: OCC's Rules, which can be
found in Exhibit 5b, and OCC's schedule of fees, which can be found in
Exhibit 5c. Material proposed to be added to OCC's Rules and schedule
of fees, as currently in effect, is marked by underlining, and material
proposed to be deleted is marked with strikethrough text. All terms
with initial capitalization that are not otherwise defined herein have
the same meaning as set forth in the OCC By-Laws and Rules.\4\
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    \3\ The Commission notes that exhibits referenced herein are
included in the filing submitted by OCC to the Commission, but are
not included in this Notice.
    \4\ OCC's By-Laws and Rules can be found on OCC's public
website: http://optionsclearing.com/about/publications/bylaws.jsp.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Proposed Rule Change

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

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

1. Purpose
    OCC is proposing to adopt a new Capital Management Policy and to
make amendments to OCC's Rules and schedule of fees necessary to
implement the new Capital Management Policy. The main features of the
Capital Management Policy and the related changes are: (a) To determine
the amount of Equity sufficient for OCC to meet its regulatory
obligations and to serve market participants and the public interest
(as defined below, ``Target Capital Requirement''), (b) to monitor
Equity \5\ and liquid net assets funded by equity (``LNAFBE'') \6\
levels to help ensure adequate financial resources are available to
meet general business obligations; and (c) to manage Equity levels,
including by (i) adjusting OCC's fee schedule (as appropriate) and (ii)
establishing a plan for accessing additional capital should OCC's
Equity fall below certain thresholds (``Replenishment Plan'').
---------------------------------------------------------------------------

    \5\ The Capital Management Policy would define ``Equity'' as
shareholders' equity as shown on OCC's Statement of Financial
Condition.
    \6\ The Capital Management Policy would define ``LNAFBE'' as the
level of cash and cash equivalents, no greater than Equity, less any
approved adjustments (i.e., agency-related liabilities such as
Section 31 fees held by OCC).
---------------------------------------------------------------------------

    The Replenishment Plan would: (i) Provide that should OCC's Equity
fall below 110% of the Target Capital Requirement (as defined by the
Capital Management Policy, ``Early Warning''), Management would
recommend to the Board whether to implement a fee increase in an amount
the Board determines necessary and appropriate to raise additional
Equity; (ii) provide that should OCC's Equity fall below 90% of the
Target Capital Requirement or fall below the Target Capital Requirement
for a period of 90 consecutive days (as defined in the Capital
Management Policy, ``Trigger Event''), OCC would contribute the funds
held under The Options Clearing Corporation Executive Deferred
Compensation Plan Trust to the extent that such funds are (x) deposited
on or after January 1, 2020 in respect of its Executive Deferred
Compensation Plan (``EDCP'') and (y) in excess of amounts necessary to
pay for benefits accrued and vested under the EDCP at such time (such
funds are defined in Chapter 1 of the proposed changes to OCC's Rules
as the ``EDCP Unvested Balance''); and (iii) provide that should
contribution of the EDCP Unvested Balance fail to cure the Trigger
Event, or if a further Trigger Event occurs, OCC will charge an
Operational Loss Fee (as defined below) in equal shares to the Clearing
Members.
    OCC is also hereby proposing to create a layer of skin-in-the-game
resources in the event of default losses. Specifically, OCC is amending
Rule 1006 to state that: First, any current or retained earnings above
110% of the Target Capital Requirement will be used to offset default
losses after applying a defaulting Clearing Member's margin and
Clearing Fund contributions, and next, any remaining loss will be
charged pro rata to (a) non-defaulting Clearing Members' Clearing Fund
contributions, and (b) the aggregate value of the EDCP Unvested
Balance.
Proposed Changes
    OCC proposes to adopt a Capital Management Policy and make
conforming changes to OCC's Rules and schedule of fees necessary to
implement the Capital Management Policy, as described below, to
formalize its policy to identify, monitor, and manage OCC's capital
needs to promote compliance SEC Rule 17Ad-22(e)(15).\7\ In formulating
the Capital Management Policy, OCC also has considered the Commodity
Futures Trading Commission's (``CFTC'') regulatory

capital requirements for OCC as a DCO, as set forth in CFTC Rule
39.11(a)(2).\8\
---------------------------------------------------------------------------

    \7\ 17 CFR 240.17Ad-22(e)(15).
    \8\ 17 CFR 39.11(a)(2).
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Target Capital Requirement
    The proposed Capital Management Policy would explain how OCC would
annually determine the Target Capital Requirement. The proposed
amendment to Chapter 1 of OCC's Rules would define OCC's Target Capital
Requirement as the minimum level of Equity recommended by Management
and approved by the Board to ensure compliance with applicable
regulatory requirements and to keep such additional amount the Board
may approve for capital expenditures. Resources held to meet OCC's
Target Capital Requirement would be in addition to OCC's resources to
cover participant defaults. OCC considers the LNAFBE it holds, limited
to cash and cash equivalents, to be high quality and sufficiently
liquid to allow OCC to meet its current and projected operating
expenses under a range of scenarios, including in adverse market
conditions. The Capital Management Policy would also explain that, on
an annual basis, OCC's Chief Financial Officer (``CFO'') would
recommend a Target Capital Requirement for the coming year. Management
would review the CFO's report and, as appropriate, recommend the Target
Capital Requirement to the Compensation and Performance Committee
(``CPC''). The CPC would review, and as appropriate, recommend the
proposal to the Board of Directors, which would review, and as
appropriate, approve the Target Capital Requirement.
SEC Rule 17Ad-22(e)(15)
    OCC would set its Target Capital Requirement at a level sufficient
to maintain LNAFBE at least equal to the greatest of three amounts: (x)
Six-months' current operating expenses; (y) the amount determined by
the Board to be sufficient to ensure a recovery or orderly wind-down of
critical operations and services (the ``RWD Amount''); and (z) the
amount determined by the Board to be sufficient for OCC to continue
operations and services as a going concern if general business losses
materialize (the ``Potential Loss Amount'').
    The RWD Amount would be the amount recommended by Management on an
annual basis in accordance with OCC's Capital Management Procedure \9\
and, as appropriate, approved by the Board. OCC's Recovery and Orderly
Wind-Down Plan (``RWD Plan'') identifies critical services and the
length of time the Board has determined it would take to recover or
wind-down.\10\ Pursuant to the Capital Management Procedure, Management
would use the assumptions in the RWD Plan to determine the RWD Amount,
which is the cost to maintain those critical services over the
prescribed recovery or wind-down period, assuming costs remain at
historical levels. The calculation of the Potential Loss Amount would
be based on Management's annual determination, pursuant to the Capital
Management Procedure, of the amount of capital required to address
OCC's operational risks. OCC quantifies the amount of capital to be
held against OCC's operational risks by analyzing and aggregating
potential losses from individual operational risk scenarios,
aggregating the loss events, and conducting loss modeling at or above
the 99% confidence level.\11\
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    \9\ The Capital Management Procedure would be a cross-department
internal procedure that provides direction on how those departments
shall execute their responsibilities under the proposed Capital
Management Policy. OCC has included a draft of the Capital
Management Procedure OCC intends to implement if the Commission
approves the proposed Capital Management Policy in confidential
Exhibit 3a, for reference. The documents in Exhibit 3 are being
provided as supplemental information to the filing and would not
constitute part of OCC's rules, which have been provided in Exhibit
5.
    \10\ Securities Exchange Act Release No. 83918 (Aug. 23, 2018),
83 FR 44091 (Aug. 29, 2018) (SR-OCC-2017-021).
    \11\ Pursuant to the Capital Management Procedure, OCC's
Enterprise Risk Management department (``ERM'') would quantify the
Potential Loss Amount on an annual basis and provide that
information to OCC's Chief Financial Officer (``CFO'') as an input
to the CFO's recommendation to Management for the Target Capital
Requirement. OCC has included ERM's process and methodology for
quantifying the Potential Loss Amount from 2015 through present in
confidential Exhibit 3b.
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CFTC Rule 39.11(a)(2)
    The Capital Management Policy would also specify that when setting
the Target Capital Requirement the Board will consider OCC's projected
rolling twelve-months' operating expenses as required by CFTC Rule
39.11(a)(2).\12\ For the avoidance of doubt, the Board is not required
to set the Target Capital Requirement at the level of twelve-months'
operating expenses.\13\ Factors that OCC would consider when
considering twelve-months' operating expenses include, but are not
limited to: (i) OCC's obligations and responsibilities as a
systemically important financial utility (``SIFMU''), (ii) OCC's
obligations as a derivative clearing organization under CFTC Rule
39.11(a)(2), (iii) the types of financial resources the CFTC allows OCC
to count towards the twelve-month requirement, and (iv) any conditions
on the use of those resources the CFTC has imposed.
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    \12\ 17 CFR 39.11(a)(2).
    \13\ Financial resources available to meet CFTC Rule 39.11(a)(2)
are not limited to LNAFBE, and include OCC's own capital or any
other form of financial resources deemed acceptable by the CFTC. See
17 CFR 39.11(b)(2).
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Excess Equity for Capital Expenditures
    In addition, the Capital Management Policy would provide that OCC
may increase its Target Capital Requirement by an amount to be retained
for capital expenditures following a recommendation by Management and
Board approval. From time to time Management may identify necessary
capital investments in OCC's technology, facilities or other business
tangible or intangible assets to enhance its effectiveness, efficiency
or compliance posture. The Board would (a) determine if the capital
needs are necessary and appropriate and, if so, (b) determine whether
to increase the Target Capital Requirement or whether the amount can be
accumulated as an amount in excess of the Target Capital Requirement.
In case of the latter, capital in excess of 110% of the Target Capital
Requirement would be available as skin in the game.\14\ Factors the
Board would consider in making this determination include, but are not
limited to, the amount of funding required, how much Equity is proposed
to be retained, the potential impact of the investment on OCC's
operation, and the duration of time over which funds would be
accumulated.
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    \14\ See OCC Rule 1006(e), as proposed in the changes attached
[sic; the Commission notes that ``attached'' here means that the SRO
included the relevant document as a confidential exhibit to the
filing] as Exhibit 5b hereto.
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Monitoring Equity
    The proposed Capital Management Policy would describe how
Management reviews periodic analyses of LNAFBE, including projecting
future volume, expenses, cash flows, capital needs and other factors to
help ensure adequate financial resources are available to meet general
business obligations. Those other factors would include, but not be
limited to: (i) The level of existing prefunded corporate resources,
(ii) the ability to borrow under an existing OCC line of credit; (iii)
the ability to make a claim under certain insurance policies; (iv)
OCC's tax rates and liabilities; and (v) unfunded obligations. The
Capital Management Policy would further provide that Management would
review an analysis of Equity at least monthly to identify whether an
Early Warning or Trigger Event had occurred since the last review or
was likely to occur before

the next review. The Capital Management Policy would provide that the
Board of Directors is notified promptly if those triggers are breached.
To the extent OCC suffers a catastrophic or sizable loss intra-month,
and such loss amount is known or can reasonably be estimated,
Management would review a forecast of the impact on Equity and, should
that forecast demonstrate that Equity has fallen below the Early
Warning or Trigger Event, Management shall promptly notify the Board.
Managing Equity
    The Capital Management Policy would describe the actions OCC may
take to manage its current or future levels of Equity. As described
below, the primary forms of capital management actions would include:
(i) Changes to OCC's fees or other tools to change costs for market
participants; (ii) the Replenishment Plan; and (iii) use of current and
retained earnings greater than 100% of the Target Capital Requirement
to cover losses caused by the default of a Clearing Member.
Fee Schedule
    The Capital Management Policy would provide that clearing fees will
be based on the sum of OCC's annual budgeted/forecasted operating
expenses, a defined operating margin and OCC's capital needs, divided
by forecasted contract sides. On an annual basis, Management would
review the operating margin level considering historical volume
variance and other relevant factors, including but not limited to
variance in interest rates and OCC's operating expenses. Management
would recommend to the CPC, to which the Board has delegated authority
for review and approval of changes to OCC's fees pursuant to the CPC's
charter, whether changes to OCC's defined operating margin should be
made.
    The Capital Management Policy would provide that on a quarterly
basis, Management would review its fee schedule and, considering
factors including, but not limited to projected operating expenses,
projected volumes, anticipated cash flows, and capital needs, recommend
to the Board, or a Committee to which the Board delegated authority,
whether a fee increase, decrease or waiver should be made in accordance
with Article IX, Section 9 of OCC's By-Laws.\15\
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    \15\ OCC By-Law Art. IX, Sec.  9.
---------------------------------------------------------------------------

    The Capital Management Policy would provide that if OCC's Equity is
above, in the aggregate, 110% of the Target Capital Requirement and any
amount of excess Equity the Board approves for capital expenditures,
the Board of Directors, or a Committee the Board has delegated, may use
such tools as it considers appropriate to lower costs for Clearing
Members, providing the Board believes doing so would likely not lower
OCC's Equity below the Early Warning. Such tools would include lowering
fees, a fee holiday or a refund. The Capital Management Policy would
further provide that if OCC charges the Operational Loss Fee, as
described below, and its Equity thereafter returns to a level at which
the Board approves use of such tools, OCC would first employ tools to
lower the cost of Clearing Member participation in equal share up to
the amount of the Operational Loss Fee charged. This provision would
help ensure that in the event OCC must charge an Operational Loss Fee
to Clearing Members in equal shares, Clearing Members will recover the
amount charged in equal shares up to the amount charged.
Replenishment Plan
Early Warning
    The Capital Management Policy would provide that in the event OCC's
Equity breaches the Early Warning threshold, or 110% of the Target
Capital Requirement, Management would recommend to the Board whether to
implement a fee increase in an amount the Board determines necessary
and appropriate to raise additional Equity.\16\ The recommendation
whether to implement a fee increase would be informed by several
factors including, but not limited to, (i) the facts, circumstances and
root cause of a decrease in Equity below the Early Warning threshold;
(ii) the time it would take to implement a fee increase, inclusive of
securing Board and SEC approval as required for those actions; (iii)
the anticipated time a fee increase would take to accumulate the needed
revenue based on projected contract volume, operational expenses and
interest income over that time period; and (iv) the potential of a
Trigger Event.
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    \16\ Pursuant to the Capital Management Procedure, Management's
recommendation would be informed by the clearing fee amount
calculated pursuant to the Fee Schedule Calculation Procedure, which
provides direction to OCC's Finance department on how to calculate
the necessary fee level pursuant to the requirements of the Capital
Management Policy. OCC has included a draft of the Fee Schedule
Calculation Procedure it intends to implement if the Commission
approves the proposed Capital Management Policy in confidential
Exhibit 3c, for reference.
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    The Early Warning is intended to signal to OCC that its Equity is
``close to'' the Target Capital Requirement, as directed by Rule
17Ad22(e)(15)(iii). The Early Warning threshold is set at 110% because
based on an analysis of OCC's projected revenue and expenses,\17\ a 10%
premium of the Target Capital Requirement represents approximately two
months earnings based on current and projected data,\18\ which OCC
believes would provide sufficient time for Management and the Board to
respond. The Capital Management Policy would provide that to the extent
Management determines, during its annual review of the Capital
Management Policy, that there is a change in the estimated length of
time to accumulate approximately 10% of the Target Capital Requirement,
Management will consider whether to recommend changes to the Early
Warning and Trigger Event thresholds.
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    \17\ OCC has included the analysis in confidential Exhibit 3d.
    \18\ OCC defines earnings for purposes of this analysis as
Operating Income, or revenue less expenses before taxes. Earnings
does not include interest pass through earned on the cash deposits.
---------------------------------------------------------------------------

Trigger Event
    The Capital Management Policy would also define a Trigger Event to
be when OCC's Equity falls below 90% of the Target Capital Requirement
or remains below the Target Capital Requirement for ninety consecutive
calendar days. OCC is proposing the 90% threshold based on its analysis
showing that two-months' earnings represents approximately a 10%
premium of the Target Capital Requirement, discussed above. OCC
believes, based on that analysis, that Equity below the 90% threshold
would be a sign that corrective action more significant and with a more
immediate impact than increasing fees should be taken to increase OCC's
Equity Capital. OCC also set another Trigger Event at a threshold of
Equity above 90% but below the Target Capital Requirement for a period
of 90 consecutive days based on the time necessary for a clearing fee
change to have an impact and to exhaust remedies prior to charging the
Operational Loss Fee. This timeframe takes into account 30-day advance
notice to Clearing Members to implement the fee change, implementation
on the first of the month to accommodate changes to Clearing Members'
systems, and, as discussed above, the approximately two-month period
required to accumulate approximately 10% of the Target Capital
Requirement. Based on the above-referenced analysis, OCC believes that,
in the event a fee increase resulting from an Early Warning could not
increase OCC's Equity above the

Target Capital Requirement within 90 days, it would likewise indicate
that corrective action in the form of a fee increase would be
insufficient.
    If a Trigger Event occurs, OCC would first contribute the EDCP
Unvested Balance to cure the loss. OCC believes that contributing the
EDCP Unvested Balance to cover operational losses would align
Management's interests with OCC's interest in maintaining required
regulatory capital and operating OCC in a prudent manner. If
application of the EDCP Unvested Balance brings OCC's Equity to within
the Early Warning threshold (between 90% and 110% of the Target Capital
Requirement), OCC would act to raise fees, in accordance with the
Capital Management Policy's direction for OCC action in the event of an
Early Warning, as discussed above.
    If, however, OCC Equity remains below 90% of the Target Capital
Requirement after applying the EDCP Unvested Balance, or if a
subsequent Trigger Event occurs after applying all of the available
EDCP Unvested Balance, OCC would charge an ``Operational Loss Fee,'' up
to the maximum Operational Loss Fee identified in OCC's schedule of
fees as described below, in equal shares to each Clearing Member,
payable on five business days' notice, to raise additional capital. A
further Trigger Event based on Equity falling below the Target Capital
Requirement for a period of 90 consecutive calendar days would be
measured beginning on the date OCC applies the EDCP Unvested Balance.
OCC chose five business days to allow Clearing Members subject to the
fee to assess its impact on their liquidity and take appropriate
actions. OCC did not select a shorter period, such as the two-day
period in which Clearing Members must fund Clearing Fund
contributions,\19\ because that shorter period is necessary for
settlement obligations, which is not the case for the Operational Loss
Fee.
---------------------------------------------------------------------------

    \19\ See, e.g., OCC Rule 1006(h)(A).
---------------------------------------------------------------------------

    OCC would calculate the maximum aggregate Operational Loss Fee
based on the RWD Amount, which would ensure that OCC would have
sufficient capital to facilitate a recovery or an orderly wind-down in
the event of an operational loss. In order to account for OCC's tax
liability for retaining the Operational Loss Fee as earnings, OCC may
apply a tax gross-up to the RWD Amount (``Adjusted RWD Amount'')
depending on whether the operational loss that caused Equity to fall
below the Trigger Event threshold is tax deductible. The Capital
Management Policy would provide that, in the event less than the full
amount of the maximum Operational Loss Fee is needed to bring OCC's
Equity to 110% of the Target Capital Requirement, only that amount will
be charged. If OCC charges less than the maximum Operational Loss Fee,
any remaining amount up to the maximum Operational Loss Fee will remain
available for subsequent Trigger Events, provided that the sum of all
Operational Loss Fees that have not been refunded shall not exceed the
maximum Operational Loss Fee.
    In the event that OCC employs a refund to Clearing Members in equal
shares up to the amount of Operational Loss Fees previously charged,
the amount of the maximum Operational Loss Fee available for subsequent
Trigger Events would include the amount refunded. By allowing OCC to
charge up to the maximum Operational Loss Fee--less any amounts
previously charged and not refunded--should subsequent Trigger Events
arise, the proposed Capital Management Policy would help maintain the
continued ability of OCC to access replenishment capital should
multiple Trigger Events occur in quick succession before OCC could
implement a new or modified replenishment plan. In the unlikely event
that the sum of all Operational Loss Fees charged exhausts the maximum
Operational Loss Fee, the Board would need to convene to develop a new
replenishment plan, subject to regulatory approval.
    In formulating the Capital Management Policy OCC considered other
means of allocating the Operational Loss Fee among OCC's Clearing
Members, including allocating the cost to Clearing Members
proportionally based on measures such as contract volume or risk
profile, as evidenced by a Clearing Member's margin or clearing fund
contributions. As part of its analysis for determining the Potential
Loss Amount, OCC has identified individual operational risk scenarios
that could result in an operational loss, including such risks as
internal fraud, a cyber-attack on OCC's systems, employee lawsuits and
damage to its facilities. The operational risks OCC identified are
separate and distinct from the credit risk that Clearing Members
present to OCC, which OCC manages through margin and Clearing Fund
contributions and OCC's Default Management Procedures. OCC has not
observed any correlation between the annual quantification of these
risks and contract volume or Clearing Member credit risk. OCC has
included a comparison of its quantification of these risks to contract
volume and the amount of Clearing Fund deposits in confidential Exhibit
3e. OCC believes that charging the Operational Loss Fee in equal shares
is preferable because it equally mutualizes risk of operational loss
amongst the firms that use OCC's services. OCC believes that such
mutualization is preferable because all Clearing Members benefit from
equal access to the clearance and settlement services provided by OCC,
irrespective of how much they choose to use it. Such access provides
the benefit of credit and liquidity risk intermediation and associated
regulatory capital benefits.
    To implement the Operational Loss Fee, OCC is proposing an
amendment to its schedule of fees that would provide a formula for
calculating the maximum Operational Loss Fee OCC could charge, attached
[sic] to this rule filing as Exhibit 5c. The amendment to OCC's fee
schedule would express the Operational Loss Fee as a fraction, the
numerator of which would be the Adjusted RWD Amount less the aggregate
amount of Operational Loss Fees that OCC has previously charged that
are not refunded at the time of calculation, and the denominator of
which would be the number of Clearing Members at the time OCC charges
the Operational Loss Fee. OCC would also include in the schedule of
fees the conditions that would trigger the Operational Loss Fee to be
charged. OCC proposes to amend its schedule of fees now: (1) To
increase transparency about Clearing Members' maximum contingent
obligations under the Capital Management Policy in the unlikely event
OCC's Equity falls below the Trigger Event thresholds, (2) to promote
operational efficiency so that OCC can access replenishment capital
expeditiously if a Trigger Event occurs, and (3) to reduce the
likelihood that OCC would be required to file an advance notice or
proposed rule change prior to charging the Operational Loss Fee,
thereby accelerating the time frame in which OCC could access
replenishment capital if losses materialize that threaten OCC's ability
to continue operations and services as a going concern.
    To effectuate the Capital Management Policy, OCC also proposes to
amend OCC Rule 209 so that the Operational Loss Fee would be payable
within five business days. OCC Rule 209 currently provides that all
charges and fees owed by a Clearing Member to OCC shall be due and
payable within five business days following the end of each calendar
month. The proposed amendment would add an exception for payment of the
Operational Loss Fee, which would be due and payable within five
business days following OCC's notice to the

Clearing Member that OCC had charged the Operational Loss Fee. The
amendment to OCC Rule 209 would ensure that OCC can timely respond to
operational losses that threaten OCC's ability to continue operations
and services as a going concern. OCC would also amend Rule 101 to
define ``Operational Loss Fee'' to mean the fee that would be charged
to Clearing Members in equal shares, up to the maximum amount
identified in OCC's schedule of fees less the aggregate amount of all
such Operational Loss Fees previously charged and not yet refunded at
the time of calculation, if, after contributing the entire EDCP
Unvested Balance, Equity remains below the levels identified in OCC's
schedule of fees.
Use of Current and Retained Earnings for Default Losses
    The Capital Management Policy would provide that in the event of a
clearing member default, OCC would use Equity above 110% of the Target
Capital Requirement to offset any loss after applying the margin assets
and Clearing Fund contribution of the defaulting Clearing Member. In
addition, the Capital Management Policy would provide that OCC would
contribute the EDCP Unvested Balance on a pro rata basis with non-
defaulting Clearing Member contributions to the Clearing Fund to
satisfy any remaining balance after applying the margin assets and
Clearing Fund contribution of the defaulting Clearing Member and any
OCC Equity above 110% of the Target Capital Requirement.
    To implement this aspect of the Capital Management Policy, OCC
would also amend OCC Rule 1006 to adjust the default waterfall and the
allocation of Clearing Fund losses accordingly. Rule 1006(e), which
currently governs use of retained earnings to cover certain losses
prior to charging those losses to the Clearing Fund under Rule 1006(b)
(i.e., losses caused by Clearing Member defaults) and Rule 1006(c)
(i.e., losses caused by bank and clearing organization failures to
perform obligations to OCC not recoverable under Rule 1006(b)), would
be divided into subsections numbed Rule 1006(e)(i) through (e)(iii).
OCC would add Rule 1006(e)(i) to require OCC to charge a loss or
deficiency associated with a Clearing Member default to OCC's current
and retained earnings that are greater than 110% of its Target Capital
Requirement (which would be defined as above in Rule 101) prior to
charging the Clearing Fund and the EDCP Unvested Balance under Rule
1006(b), as discussed below. Rule 1006(e)(ii) would contain the current
text of the first two sentences of the current Rule 1006(e), updating
the cross-reference therein to limit the scope to the use of earnings
to cover losses caused by bank or clearing organization failures before
charging the Clearing Fund under Rule 1006(c). Thus, OCC would retain
the option, but not the obligation, to use current or retained earnings
to cover such bank or clearing organization losses, for which the Rules
currently provide. Rule 1006(e)(iii) would contain the last two
sentences of Rule 1006(e) currently in effect, which concern (1) the
meaning of ``current earnings'' and (2) provide for a Clearing Member's
continuing liability for any deficiencies in that member's Clearing
Fund contribution that OCC covers with OCC's current and retained
earnings. With respect to the latter, OCC would amend Rule 1006(e)(iii)
to remove reference to OCC's ``elect[ion]'' to charge the deficiency to
current or retained earnings so that such liability for Clearing Fund
contribution deficiencies remains if OCC is obligated to charge current
and retained earnings over 110% of the Target Capital Requirement under
proposed Rule 1006(e)(i).
    OCC also proposes to amend Rule 1006(b) to provide that OCC would
apply the EDCP Unvested Balance (which would be defined as above in
Rule 101) on a pro rata basis with the Clearing Fund contributions of
non-defaulting Clearing Members to satisfy any remaining balance after
applying the defaulting Clearing Member's margin and Clearing Fund
contribution and OCC's current and retained earnings greater than 110%
of its Target Capital Requirement. By amendment to Rule 1006(b)(iii),
the EDCP Unvested Balance's proportion of the loss would be calculated
by a fraction, the numerator of which would be EDCP Unvested Balance
and the denominator of which would be the sum of the EDCP Unvested
Balance and the balance of all non-defaulting Clearing Members'
Clearing Fund contributions.\20\ Pursuant to proposed amendments to
Rule 1006(b) and (e), such contribution of current and retained
earnings would be made after applying the defaulting Clearing Member's
margin and Clearing Fund contribution, but before charging that loss or
deficiency proportionately to the Clearing Fund.
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    \20\ Because Rule 1006 has separate provisions addressing use of
the Clearing Fund to cover losses arising from a Clearing Member
default (Rule 1006(b)) and losses arising from bank or clearing
organization failures (Rule 1006(c)), certain changes would be made
to the rules to limit the changes for purposes of effecting the
Capital Management Policy to the use of current and retained
earnings and the EDCP Unvested Balance in the event of a Clearing
Member default. Specifically, the proposed changes to OCC's rules
would eliminate Interpretations and Policies .01 and establishes the
respective allocation provisions in Rule 1006(b)(iii) and (c)(iii).
No substantive changes to Rule 1006(c) are intended.
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    In addition, a proposed amendment to Rule 1006(g), concerning,
among other things, the allocation of funds received under the Limited
Cross-Guaranty Agreement between OCC and certain other clearing
agencies in the event of the default of a common member, would provide
that any funds received under that agreement by OCC with respect to
losses incurred by OCC would be credited in accordance with Rule 1010.
Rule 1010 concerns recovery of losses charged to non-defaulting
Clearing Members and provides that any recovery of a loss charged
proportionately against the contributions of those Clearing Members
shall be paid to each Clearing Member charged in proportion to the
amounts charged. The amendment to Rule 1006(g) would establish that the
non-defaulting Clearing Members whose Clearing Fund contributions were
charged would recover proportional to the amount their contributions
were charged up to the amount their Clearing Fund contributions were
charged. The recovery proportional to the amount charged to the EDCP
Unvested Balance would be available for return to the EDCP.
Market Participant Outreach
    In developing the proposed plan for replenishment capital OCC also
sought input from market participants. On May 1, 2019, OCC Management
presented to the SIFMA options committee and the Securities Traders
Association on the following topics: (1) How OCC will set fees, (2) how
OCC determines its operating margin, (3) OCC's proposal to add a
working capital line of credit, (4) the triggers and thresholds for
action, and (5) the amount that a replenishment plan would need to
raise. A discussion ensued with participants from the SIFMA options
committee concerning how OCC would set the Target Capital Requirement.
    On May 28, 2019, OCC provided Clearing Members with a notice
concerning the details of the Capital Management Policy.\21\ OCC has
included a copy of the letter in Exhibit

3f. OCC sent the same letter to the participant exchanges (including
the non-shareholder exchanges). Either calls or meetings were held with
non-shareholder exchanges to discuss the proposed Capital Management
Policy and allow them to raise questions or concerns. No such concerns
were expressed.
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    \21\ The letter references a ``one-time'' Operational Loss Fee,
consistent with the proposed Capital Management Policy as approved
by the Board at its May 13, 2019 meeting. As discussed below, the
Board approved a revision to the proposal at its July 17, 2019
meeting to allow OCC to retain the ability to charge the Operational
Loss Fee for subsequent Trigger Events up to the maximum Operational
Loss Fee, less any Operational Loss Fees previously charged and not
yet refunded.
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    OCC conducted calls open to all Clearing Members on May 31, 2019 to
discuss the proposal. The calls were attended by approximately 140
participants representing 40 organizations. No concerns with the
proposed Capital Management Policy were expressed. Discussion ensued
about the mechanics of the Operational Loss Fee, alternatives to equal
allocation of the Operational Loss Fee among Clearing Members that OCC
considered and the likelihood that OCC would need to charge the
Operational Loss Fee. Management has also met with individual Clearing
Members and other market participants to discuss the proposed Capital
Management Policy.
    After the Board meeting on July 17, 2019, OCC conducted a call with
the SIFMA options committee to discuss certain features of the Capital
Management Policy proposal approved at that meeting, including: (a) If
OCC charges the Operational Loss Fee and its Equity thereafter returns
to a level at which the Board approves use of tools to lower the cost
of participation for Clearing Members, OCC would first employ tools to
lower the Clearing Members' costs in equal share up to the amount of
the Operational Loss Fee charged; and (b) if OCC charges the
Operational Loss Fee, OCC would retain the ability to charge
Operational Loss Fees for subsequent Trigger Events up to the maximum
Operational Loss Fee, less any Operational Loss Fees previously charged
and not yet refunded.
    OCC has included a summary of the questions raised and Management's
responses during the above referenced calls and meetings in Exhibit 3g.
2. Statutory Basis
    OCC believes the proposed rule change is consistent with Section
17A of the Securities Exchange Act of 1934 (``Exchange Act'') and the
rules and regulations thereunder. In particular, OCC believes that the
Capital Management Policy is consistent with Section 17A(b)(3)(F) of
the Exchange Act \22\ and Rule 17Ad-22(e)(15) \23\ thereunder for the
reasons described below. In addition, OCC believes adding the
Operational Loss Fee to its schedule of fees is consistent with Section
17A(b)(3)(D) of the Exchange Act,\24\ and that the changes to OCC's
Rules to effectuate the use of current and retained earnings in excess
of 110% of the Target Capital Requirement and the EDCP Unvested Balance
to cover default losses is consistent with Rule 17Ad-22(e)(4).\25\
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    \22\ 15 U.S.C. 78q-1(b)(3)(F).
    \23\ 17 CFR 240.17Ad-22(e)(15).
    \24\ 15 U.S.C. 78q-1(b)(3)(D).
    \25\ 17 CFR 240.17Ad-22(e)(4).
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    Section 17A(b)(3)(F) of the Exchange Act requires, in part, that
the rules of OCC be designed to promote the prompt and accurate
clearance and settlement of securities transactions and, in general, to
protect investors and the public interest. The Capital Management
Policy is designed to ensure that OCC holds sufficient LNAFBE such that
it could continue to promptly and accurately clear and settle
securities transactions even if it suffered significant operational
losses. In other words, holding sufficient LNAFBE would help OCC to
absorb such operational losses and avoid a disruption that could
negatively impact OCC's prompt and accurate clearing and settlement of
transactions. By limiting the financial resources OCC counts toward its
LNAFBE to cash and cash equivalents, the Capital Management Policy
ensures those resources would be high quality and sufficiently liquid
to allow OCC to meet its current and projected operating expenses under
a range of scenarios, including in adverse market conditions. OCC would
protect the interests of investors and the general public by
establishing the Capital Management Policy, which is designed to ensure
that such losses would not result in a failure or disruption of a
SIFMU, as OCC is designated by the Financial Stability Oversight
Council (``FSOC'') pursuant to the Payment, Clearing and Settlement
Supervision Act.\26\ FSOC has concluded that a failure or disruption at
OCC would negatively affect significant dollar value and volume
transactions in the options and futures markets, impose material losses
on OCC counterparties and create liquidity and credit problems for
financial institutions and others that rely on the markets OCC serves,
and that such credit and liquidity problems would spread quickly and
broadly among financial institutions and other markets.\27\
Accordingly, FSOC determined that a failure or disruption at OCC could
threaten the stability of the U.S. financial system.\28\ Therefore, OCC
believes that the Capital Management Policy, which is reasonably
designed to ensure that OCC has sufficient LNAFBE to continue
operations in the event of an operational loss, is consistent with the
requirements of Section 17A(b)(3)(F) of the Exchange Act by protecting
investors and the public interest.\29\
---------------------------------------------------------------------------

    \26\ 12 U.S.C. 5463.
    \27\ FSOC Annual Report, Appendix A, at 187 (2012), available at
https://www.treasury.gov/initiatives/fsoc/Documents/2012%20Appendix%20A%20Designation%20of%20Systemically%20Important%20Market%20Utilities.pdf.
    \28\ Id.
    \29\ 15 U.S.C. 78q-1(b)(3)(F).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(15) under the Exchange Act requires OCC to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to identify, monitor and manage OCC's
general business risk and hold sufficient LNAFBE to cover potential
general business losses so that OCC can continue operations and
services as a going concern if those losses materialize.\30\ The
Capital Management Policy and amendments to OCC's Rules and Fee
Schedule are designed for consistency with the requirements of Rule
17Ad-22(e)(15) for the reasons described below.
---------------------------------------------------------------------------

    \30\ 17 CFR 240.17Ad-22(e)(15).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(15)(i) requires, in part, that OCC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to identify, monitor, and manage OCC's general
business risk, including by determining the amount of LNAFBE based upon
OCC's general business risk profile and the length of time required to
achieve recovery or orderly wind-down, as appropriate, of its critical
operations and services if such action is taken.\31\ Pursuant to the
Capital Management Policy, OCC would set its Target Capital Requirement
at a level sufficient to maintain LNAFBE at least equal to the greater
of (x) six months' of OCC's current operating expenses; (y) the amount
determined by the Board to be sufficient to ensure a recovery or
orderly wind-down of critical operations and services, plus any excess
Equity Management recommends, and the Board approves, to be retained
for capital expenditures; and (z) the amount determined by the Board to
be sufficient for OCC to continue operations and services as a going
concern if general business losses materialize. By providing that OCC
would set its Target Capital Requirement no less than the greatest of
these three amounts, OCC believes the Capital Management Policy is
consistent with Rule 17Ad-22(e)(15)(i).
---------------------------------------------------------------------------

    \31\ 17 CFR 240.17Ad-22(e)(15)(i).
---------------------------------------------------------------------------

    The Capital Management Policy is also designed to identify, monitor
and manage OCC's general business risk,

consistent with Rule 17Ad-22(e)(15), by providing that OCC's Board
would review and approve the Target Capital Requirement annually. The
Capital Management Policy is also designed to monitor OCC's general
business risk by providing that OCC would perform an analysis of its
Equity on at least a monthly basis to ensure that OCC's Equity has not
fallen below the Early Warning or Trigger Event thresholds and is not
likely to fall below those thresholds prior to the next review. The
Capital Management Policy's requirement that Management report on the
firm's LNAFBE relative to the Early Warning and Trigger Event
thresholds at each regularly scheduled Board meeting is also designed
to identify, monitor, and manage OCC's general business risk. The
Capital Management Policy's requirement that the Board be promptly
notified in the event of an Early Warning or Trigger Event is also
reasonably designed to ensure that OCC can act quickly to ensure OCC's
compliance with the LNAFBE-holding requirements of Rule 17Ad-22(e)(15).
    Rule 17Ad-22(e)(15) further requires, in part, that OCC establish,
implement, maintain and enforce written policies and procedures
reasonably designed to hold sufficient LNAFBE to cover potential
general business losses so that OCC can continue operations and
services as a going concern if those losses materialize, including by
holding LNAFBE equal to the greater of either (x) six months of OCC's
current operating expenses, or (y) the amount determined by the Board
to be sufficient to ensure a recovery or orderly wind-down of critical
operations and services.\32\ As described above, the Capital Management
Policy would provide that OCC sets its Target Capital Requirement at a
level sufficient to maintain LNAFBE in an amount that is the greatest
of three amounts, which include six months' operating expenses, an
amount determined by the Board to be sufficient to ensure recovery or
orderly wind-down, and an amount determined by the Board to be
sufficient for OCC to continue operations and services as a going
concern if general business losses materialize. Therefore, the Capital
Management Policy is designed to ensure that OCC maintains, at a
minimum, LNAFBE equal to the greater of the two amounts required by
Rule 17Ad-22(e)(15)(ii). By also including an amount determined by the
Board to be sufficient to meet general business losses should they
materialize, the Capital Management Policy is designed to ensure OCC
maintains LNAFBE at an amount necessary to satisfy Rule 17Ad-
22(e)(15)'s broader requirement that OCC hold sufficient LNAFBE to
cover potential general business losses so that OCC can continue
operations and services as a going concern if those losses materialize.
---------------------------------------------------------------------------

    \32\ 17 CFR 240.17Ad-22(e)(15)(ii).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(15)(ii) further requires, in part, that LNAFBE held
by OCC pursuant to Rule 17Ad-22(e)(15)(ii) shall be (A) in addition to
resources held to cover participant defaults or other credit or
liquidity risks,\33\ and (B) of high quality and sufficiently liquid to
allow OCC to meet its current and projected operating expenses under a
range of scenarios, including in adverse market conditions.\34\ The
Capital Management Policy is designed to satisfy Rule 17Ad-
22(e)(15)(ii)(A) by providing that the resources held to meet OCC's
Target Capital Requirement are in addition to OCC's resources to cover
participant defaults and liquidity shortfalls. While the Capital
Management Policy and proposed changes to OCC's Rules provide for the
use of capital to cover credit losses in the event of a Clearing Member
default, the proposed changes limit the amount of current and retained
earnings available to cover such losses to the amount above 110% of the
Target Capital Requirement. The Capital Management Policy is also
designed to satisfy Rule 17Ad-22(e)(15)(ii)(B) by providing that the
resources held to meet OCC's Target Capital Requirement be high quality
and sufficiently liquid. As a result, OCC believes the Capital
Management Policy is designed to comply with Rule 17Ad-22(e)(15)(ii)(A)
and (B).
---------------------------------------------------------------------------

    \33\ 17 CFR 240.17Ad-22(e)(15)(ii)(A).
    \34\ 17 CFR 240.17Ad-22(e)(15)(ii)(B).
---------------------------------------------------------------------------

    Rule 17Ad-22(e)(15)(iii) requires that OCC establish, implement,
maintain and enforce written policies and procedures reasonably
designed to identify, monitor, and manage OCC's general business risk,
including by maintaining a viable plan, approved by the Board and
updated at least annually, for raising additional equity should its
equity fall close to or below the amount required under Rule 17Ad-
22(e)(15)(ii). The Capital Management Policy and amendments to OCC's
Rules and schedule of fees are reasonably designed to establish a
viable plan to raise additional capital in an amount up to the amount
the Board determines annually to be sufficient to ensure recovery or
orderly wind-down should OCC's Equity fall close to or below its Target
Capital Requirement. By setting the threshold triggers by reference to
the Target Capital Requirement, OCC's plan for replenishment capital is
designed to require OCC to act to raise capital should its LNAFBE fall
close to or below the amounts required under Rule 17Ad-22(e)(15)(ii).
In addition, by providing that the Target Capital Requirement must be
the greater of those amounts or the amount determined by the Board to
be sufficient to cover potential general business losses so that OCC
can continue operations and services as a going concern if those losses
materialize, the Capital Management Policy is also reasonably designed
to ensure that OCC has a viable plan to raise the capital necessary to
comply with Rule 17Ad-22(e)(15) as a whole. Furthermore, the Capital
Management Policy provides that Management shall on an annual basis
recommend the Board approve or, as appropriate, modify the
Replenishment Plan. The Board would review and, as appropriate, approve
Management's recommendation. Should OCC charge the full amount of the
Operational Loss Fee, Management would recommend a new or modified
replenishment plan, subject to regulatory approval. The Board would
review and, as appropriate, approve Management's recommendation.
    OCC's proposed addition of an Operational Loss Fee as part of its
Replenishment Plan is also reasonably designed to establish a viable
plan to raise additional capital. OCC's By-Laws and Rules serve as a
contract between OCC and its Clearing Members. Thus, OCC believes the
Operational Loss Fee is no less reliable than any other potential
replenishment plan that does not involve accumulating replenishment
capital in advance of any operational loss. Failure of a Clearing
Member to pay the Operational Loss Fee if charged will have the same
impact as failure to meet a margin call or clearing fund assessment,
and thus may have significant consequences. Any Clearing Member in
default of its obligations to OCC is subject to suspension and
liquidation of the defaulting member's positions, from which OCC may
collect all unpaid obligations to OCC.\35\ Should the assets of the
defaulting member be insufficient to cover its obligations, OCC may
recover the unpaid amount from the Clearing Fund.\36\
---------------------------------------------------------------------------

    \35\ OCC Rule 1108.
    \36\ OCC Rule 1006(a), clause (vi) (failure of any Clearing
Member to make any other required payment or render any other
required performance).
---------------------------------------------------------------------------

    While Rule 17Ad-22(e)(15)(iii) does not by its terms specify the
amount of additional equity a clearing agency's plan for replenishment
capital must be

designed to raise, the SEC's adopting release states that ``a viable
plan generally should enable the covered clearing agency to hold
sufficient liquid net assets to achieve recovery or orderly wind-
down.'' \37\ OCC believes that the Capital Management Policy and
Operational Loss Fee is consistent with the SEC's adopting release for
Rule 17Ad-22(e)(15)(iii) because OCC sets the maximum Operational Loss
Fee at an amount sufficient to raise, on a post-tax basis, the amount
determined annually by the Board to be sufficient to ensure recovery or
orderly wind-down pursuant to the Board's annual approval of the RWD
Plan.
---------------------------------------------------------------------------

    \37\ Standards for Covered Clearing Agencies, Exchange Act
Release No. 78961 (Sept. 28, 2016), 81 FR 70786, 70836 (Oct. 13,
2016).
---------------------------------------------------------------------------

    In its adopting release, the SEC also states that in developing its
policies and procedures, a covered clearing agency ``generally should
consider and account for circumstances that may require a certain
length of time before any plan can be implemented.'' \38\ In the case
of an Early Warning, a fee increase would require Board approval, which
could be obtained in a special meeting of the Board on an expedited
basis. OCC would file the fee increase with the SEC for immediate
effectiveness, thereby minimizing the amount of time needed to
implement the new fee. In the case of a Trigger Event, the Operational
Loss Fee added to the fee schedule would not require further Board
approval to implement, and would likely not require further regulatory
approval to implement because this proposed rule change would add the
fee to OCC's schedule of fees. By allowing OCC to charge up to the
maximum Operational Loss Fee, less any Operational Loss Fees previously
charged and not yet refunded, the Capital Management Policy would help
OCC maintain its ability to access replenishment capital during the
time it would take to implement a new or revised Replenishment Plan.
The Operational Loss Fee and amendment to Rule 209(a) further account
for the length of time to implement OCC's plan for replenishment
capital by requiring payment within five business days. Therefore, OCC
believes the proposed Capital Management Policy, Operational Loss Fee,
and amendments to OCC's Rules are consistent with the SEC's adopting
release for Rule 17Ad-22(e)(15)(iii).
---------------------------------------------------------------------------

    \38\ Id.
---------------------------------------------------------------------------

    OCC also believes the Operational Loss Fee is consistent with
Section 17A(b)(3)(D) of the Exchange Act, which requires that the rules
of a clearing agency provide for the equitable allocation of reasonable
dues, fees and other charges among its participants. OCC believes the
proposed Operational Loss Fee is reasonable because it is designed to
accumulate additional capital to ensure that OCC can continue to meet
its obligations as a SIFMU to Clearing Members and the general public.
OCC believes that the proposed Operational Loss Fee is reasonable also
because it is designed as a viable plan for replenishing OCC's LNAFBE
in the event OCC's Equity falls below certain thresholds that are
themselves designed to ensure that OCC act to raise additional capital
before OCC's Equity reaches the amounts required by Rule 17Ad-
22(e)(15)(ii). And as discussed above, by providing that the
Replenishment Amount be sufficient to ensure OCC has sufficient capital
to cover the amount the Board determines sufficient to ensure a
recovery or orderly wind-down, OCC believes the Operational Loss Fee is
consistent with Rule 17Ad-22(e)(15)(iii). OCC also believes that the
proposed Operational Loss Fee would result in an equitable allocation
of fees among its participants because it would equally mutualize risk
of operational loss amongst the firms that use OCC's services. The
Clearing Members' equal access to the clearance and settlement services
provided by OCC, which provide the benefit of credit and liquidity risk
intermediation and associated regulatory capital benefits, is of equal
benefit to all Clearing Members irrespective of how much they choose to
use it. In addition, the Capital Management Policy provides that if OCC
charges the Operational Loss Fee and its Equity thereafter returns to a
level at which the Board approves use of tools to lower the cost of
Clearing Member participation to return Equity in excess of 110% of its
Target Capital Requirement, such as a refund, OCC will employ such
tools to lower costs for Clearing Members in equal shares, up to the
amount of the Operational Loss Fee charged. Thus, Clearing Members will
share both the cost and recovery of the Operational Loss Fee equally.
As a result, OCC believes that the proposed Operational Loss Fee
provides for the equitable allocation of reasonable fees in accordance
with Section 17A(b)(3)(D) of the Exchange Act.\39\
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78q-1(b)(3)(D).
---------------------------------------------------------------------------

    OCC also believes the amendments to its Rules for use of current
and retained earnings and the EDCP Unvested Balance to cover default
losses are consistent with Rule 17Ad-22(e)(4), which provides, in part,
that OCC establish, implement, maintain and enforce written policies
and procedures reasonably designed to effectively identify, measure,
monitor and manage its credit exposures to participants and those
arising from its payment, clearing and settlement processes, including
by maintaining sufficient financial resources to cover its credit
exposure to each participant fully with a high degree of
confidence.\40\ By providing that OCC shall use current and retained
earnings in excess of 110% of its Target Capital Requirement, as well
as contributing the EDCP Unvested Balance on a pro rata basis with
Clearing Member's Clearing Fund contributions, OCC is providing for
additional financial resources available to cover losses in the event
of a Clearing Member default, and reducing the amount OCC would charge
the Clearing Fund contributions of non-defaulting Clearing Members.
Therefore, OCC believes the amendments to its Rules are consistent with
Rule 17Ad-22(e)(4).
---------------------------------------------------------------------------

    \40\ 17 CFR 240.17Ad-22(e)(4)(i).
---------------------------------------------------------------------------

B. Clearing Agency's Statement on Burden on Competition

    Section 17A(b)(3)(I) of the Exchange Act \41\ requires that the
rules of a clearing agency not impose any burden on competition not
necessary or appropriate in furtherance of the purposes of the Act. OCC
believes that the Capital Management Policy and amendments to OCC's
Rules and schedule of fees would not have any impact, or impose any
burden, on competition that is not necessary or appropriate in
furtherance of the purposes of the Exchange Act. As discussed above,
the Capital Management Policy describes how OCC would measure, monitor
and manage its capital needs to ensure appropriate financial resiliency
for a SIFMU and comply with applicable financial regulations, including
requirements about the amount of LNAFBE it must hold. The Capital
Management Policy is designed for OCC to maintain Equity at a level
necessary to meet the requirements of Rule 17Ad-22(e)(15) and serve its
Clearing Members and the public interest.
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78q-1(b)(3)(I).
---------------------------------------------------------------------------

    While the proposed Operational Loss Fee, in the unlikely event it
is charged, would have an effect on the amount of fees that Clearing
Members pay for OCC's services, the proposed rule change is designed to
allocate those fees on an equal basis to all Clearing Members. OCC's
Rules currently require Clearing Members to maintain net

capital of at least $2 million.\42\ Based on the most recent financial
information reported by Clearing Members, which OCC has included in
confidential Exhibit 3h, OCC believes that 98% of Clearing Members
could absorb the maximum amount of the Operational Loss Fee without
breaching their minimum net capital requirements or the SEC's ``early
warning'' threshold.\43\ OCC is comfortable with Clearing Members'
ability to pay the Operational Loss Fee because the amount of the
maximum Operational Loss Fee that would be charged per Clearing Member
is approximately the same as the contingent obligations under the OCC
clearing fund assessment requirements for a Clearing Member operating
at the minimum clearing fund deposit--$1 million. Consequently, OCC
does not believe the Operational Loss Fee obligation poses a
significant barrier to entry for smaller Clearing Members. By adding
the Operational Loss Fee to OCC's schedule of fees, the fee would be a
transparent obligation of membership based upon which Clearing Members
can independently assess their rights and obligations.
---------------------------------------------------------------------------

    \42\ OCC Rule 302.
    \43\ 17 CFR 240.15c3-1.
---------------------------------------------------------------------------

    In addition, the Capital Management Policy would help address the
relative impact that charging the Operational Loss Fee in equal shares
would have on smaller Clearing Members by providing that should OCC
charge the fee and thereafter return to a position where the Board may
approve tools to lower costs for Clearing Members, such as refunds, OCC
would employ such tools to lower costs for Clearing Members on an equal
basis, up to the amount of the Operational Loss Fee charged. Thus, all
Clearing Members shall share equally in the cost and recovery of the
Operational Loss Fee amounts charged.
    Moreover, any barrier to entry that the Operational Loss Fee may
impose is not unnecessary in furtherance of the Exchange Act, and the
rules the SEC has promulgated thereunder. Pursuant to those rules, OCC
must hold minimum LNAFBE and have a viable plan to replenish equity
should OCC's equity fall close to or below those minimums. It is
entirely appropriate that the Clearing Members that benefit equally
from OCC's services share the burden equally should OCC experience an
operational loss that threatens its ability to continue providing those
services and comply with its regulatory obligations.

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

    Written comments were not and are not intended to be solicited with
respect to the proposed rule change, and none have been received.

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

    Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
    (A) By order approve or disapprove the proposed rule change, or
    (B) institute proceedings to determine whether the proposed rule
change should be 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 Exchange Act. Comments may be submitted
by any of the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-OCC-2019-007 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-OCC-2019-007. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the proposed
rule change between the Commission and any person, other than those
that may be withheld from the public in accordance with the provisions
of 5 U.S.C. 552, will be available for website viewing and printing in
the Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at
https://www.theocc.com/about/publications/bylaws.jsp.
    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-OCC-2019-007 and
should be submitted on or before September 17, 2019.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
---------------------------------------------------------------------------

    \44\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-18385 Filed 8-26-19; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 87, Number 80 (Tuesday, April 26, 2022)]
[Notices]
[Page 24605]
[FR Doc No: 2022-08851]

=======================================================================
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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Safety Oversight and Certification Advisory Committee; Meeting

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of Safety Oversight and Certification Advisory Committee
(SOCAC) meeting.

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

SUMMARY: This notice announces a meeting of the SOCAC.

DATES: The meeting will be held on May 24, 2022, from 1:00 p.m. to 4:00
p.m. Eastern Time.
    Requests to attend the meeting must be received by May 10, 2022.
    Requests for accommodations to a disability must be received by May
10, 2022.
    Requests to submit written materials to be reviewed during the
meeting must be received no later than May 10, 2022.

ADDRESSES: The meeting will be held at FAA Headquarters, 800
Independence Avenue SW, Washington, DC 20591, as well as virtually. If
FAA is unable to hold the meeting in person due to circumstances
outside of its control, FAA will notify registrants on how to attend
the meeting virtually and post any updates on the FAA Committee
website. Members of the public who wish to observe the meeting must
RSVP by emailing [email protected]. Information on the committee
and copies of the meeting minutes will be available on the FAA
Committee website at https://www.faa.gov/regulations_policies/rulemaking/committees/documents/.

FOR FURTHER INFORMATION CONTACT: Natalie Mitchell-Funderburk, Federal
Aviation Administration, 800 Independence Avenue SW, Washington, DC
20591, telephone<PHONE_NUMBER>; email [email protected]. Any
committee related request should be sent to the person listed in this
section.

SUPPLEMENTARY INFORMATION:

I. Background

    The SOCAC was created under the Federal Advisory Committee Act
(FACA), in accordance with the FAA Reauthorization Act of 2018, Public
Law 115-254, to provide advice to the Secretary on policy-level issues
facing the aviation community that are related to FAA safety oversight
and certification programs and activities.

II. Agenda

    At the meeting, the agenda will cover the following topics:
 Ratification of the December 2021 Meeting Minutes
 FAA Updates
[rtarr8] FAA Update on Certification & Oversight Reform
[rtarr8] ODA Expert Panel
    Additional information will be posted on the committee's website
listed in the ADDRESSES section at least one week in advance of the
meeting.

III. Public Participation

    The meeting will be open to the public for virtual or in person
attendance on a first-come, first served basis, as space is limited.
Please confirm your attendance with the person listed in the FOR
FURTHER INFORMATION CONTACT section and provide the following
information: full legal name, country of citizenship, and name of your
industry association or applicable affiliation. When registration is
confirmed, FAA will email registrants to provide meeting access
information in a timely manner prior to the meeting. The U.S.
Department of Transportation is committed to providing equal access to
this meeting for all participants. If you need alternative formats or
services because of a disability, such as sign language,
interpretation, or other ancillary aids, please contact the person
listed in the FOR FURTHER INFORMATION CONTACT section.
    The FAA is not accepting oral presentations at this meeting due to
time constraints. Any member of the public may present a written
statement to the committee at any time by providing a copy to the
Designated Federal Officer via the email listed in the FOR FURTHER
INFORMATION CONTACT section.

    Issued in Washington, DC.
Timothy R. Adams,
Deputy Executive Director, Office of Rulemaking.
[FR Doc. 2022-08851 Filed 4-25-22; 8:45 am]
BILLING CODE 4910-13-P