[Federal Register Volume 76, Number 131 (Friday, July 8, 2011)]
[Rules and Regulations]
[Pages 40223-40229]
[FR Doc No: 2011-17132]

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 230, 240 and 260

[Release Nos. 33-9232; 34-64800; 39-2476; File No. S7-02-09]
RIN 3235-AK26

Extension of Temporary Exemptions for Eligible Credit Default
Swaps To Facilitate Operation of Central Counterparties To Clear and
Settle Credit Default Swaps

AGENCY: Securities and Exchange Commission.

ACTION: Final temporary rules; extension.

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SUMMARY: We are extending the expiration dates in our temporary rules
that provide exemptions under the Securities Act of 1933, the
Securities Exchange Act of 1934, and the Trust Indenture Act of 1939
for certain credit default swaps in order to continue facilitating the
operation of one or more central counterparties for those credit
default swaps as we consider rules implementing the clearing provisions
of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

DATES: Effective Date: These amendments are effective July 8, 2011, and
the expiration dates in the temporary rules and amendments published
January 22, 2009 (74 FR 3967), extended in a release published on
September 17, 2009 (74 FR 47719), and further extended in a release
published on November 26, 2010 (75 FR 72660), are further extended from
July 16, 2011 to April 16, 2012. If the Commission adopts permanent
exemptions for security-based swaps

issued by certain clearing agencies before April 16, 2012, the
Commission will terminate the effectiveness of the temporary rules as
part of that rulemaking.

FOR FURTHER INFORMATION CONTACT: Andrew Schoeffler, Special Counsel,
Office of Capital Market Trends, Division of Corporation Finance, at
(202) 551-3860, U.S. Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549-3628.

SUPPLEMENTARY INFORMATION: We are adopting amendments to the following
rules: temporary Rule 239T and Rule 146 under the Securities Act of
1933 (``Securities Act''),\1\ temporary Rule 12a-10T and Rule 12h-1(h)T
under the Securities Exchange Act of 1934 (``Exchange Act''),\2\ and
temporary Rule 4d-11T under the Trust Indenture Act of 1939
(``TIA'').\3\
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    \1\ 15 U.S.C. 77a et. seq.
    \2\ 15 U.S.C. 78a et. seq.
    \3\ 15 U.S.C. 77aaa et. seq.
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I. Background

    In January 2009, we adopted interim final temporary Rule 239T and a
temporary amendment to Rule 146 under the Securities Act, interim final
temporary Rules 12a-10T and 12h-1(h)T under the Exchange Act, and
interim final temporary Rule 4d-11T under the TIA (collectively, the
``Temporary Rules''), and in September 2009, we extended the expiration
dates in these rules from September 25, 2009 to November 30, 2010 and
in November 2010, we further extended the expiration dates in these
rules to July 16, 2011.\4\ We adopted these rules in connection with
temporary exemptive orders \5\ we issued to clearing agencies acting as
central counterparties (``CCP''), which exempted the CCPs from the
requirement to register as clearing agencies under Section 17A of the
Exchange Act \6\ solely to perform the functions of a clearing agency
for certain credit default swap (``CDS'') transactions. The CCP
exemptive orders also exempted certain eligible contract participants
\7\ and others from certain Exchange Act requirements with respect to
certain CDS.\8\ Also at that time, we temporarily exempted any exchange
that effects transactions in certain CDS from the requirements under
Sections 5 and 6 of the Exchange Act \9\ to register as a national
securities exchange, and any broker or dealer that effects transactions
on an exchange in certain CDS from the requirements of Section 5 of the
Exchange Act.
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    \4\ See Temporary Exemptions for Eligible Credit Default Swaps
to Facilitate Operation of Central Counterparties to Clear and
Settle Credit Default Swaps, Release No. 33-8999 (Jan. 14, 2009), 74
FR 3967 (Jan. 22, 2009) (the ``Temporary CDS Exemptions Release'');
Extension of Temporary Exemptions for Eligible Credit Default Swaps
to Facilitate Operation of Central Counterparties to Clear and
Settle Credit Default Swaps, Release No. 33-9063 (Sep. 14, 2009), 74
FR 47719 (Sep. 17, 2009); and Extension of Temporary Exemptions for
Eligible Credit Default Swaps to Facilitate Operation of Central
Counterparties to Clear and Settle Credit Default Swaps, Release No.
33-9158 (Nov. 19, 2010), 75 FR 72660 (Nov. 26, 2010).
    \5\ See Order Granting Temporary Exemptions under the Securities
Exchange Act of 1934 in Connection with Request on Behalf of ICE
Clear Europe Limited Related to Central Clearing of Credit Default
Swaps, and Request for Comments, Release No. 34-60372 (Jul. 23,
2009), 74 FR 37748 (Jul. 29, 2009), Order Extending Temporary
Conditional Exemptions Under the Securities Exchange Act of 1934 in
Connection With Request on Behalf of ICE Clear Europe, Limited
Related to Central Clearing of Credit Default Swaps, and Request for
Comments, Release No. 34-61973 (Apr. 23, 2010), 75 FR 22656 (Apr.
29, 2010), and Order Extending Temporary Conditional Exemptions
under the Securities Exchange Act of 1934 in Connection with Request
on Behalf of ICE Clear Europe, Limited Related to Central Clearing
of Credit Default Swaps and Request for Comment, Release No. 34-
63389 (Nov. 29, 2010), 75 FR 75520 (Dec. 3, 2010); Order Granting
Temporary Exemptions under the Securities Exchange Act of 1934 in
Connection with Request on Behalf of Eurex Clearing AG Related to
Central Clearing of Credit Default Swaps, and Request for Comments,
Release No. 34-60373 (Jul. 23, 2009), 74 FR 37740 (Jul. 29, 2009),
Order Extending and Modifying Temporary Conditional Exemptions Under
the Securities Exchange Act of 1934 in Connection With Request on
Behalf of Eurex Clearing AG Related to Central Clearing of Credit
Default Swaps, and Request for Comment, Release No. 34-61975 (Apr.
23, 2010), 75 FR 22641 (Apr. 29, 2010), and Order Extending
Temporary Conditional Exemptions under the Securities Exchange Act
of 1934 in Connection with Request on Behalf of Eurex Clearing, AG
Related to Central Clearing of Credit Default Swaps and Request for
Comment, Release No. 34-63390 (Nov. 29, 2010), 75 FR 75518 (Dec. 3,
2010); Order Granting Temporary Exemptions Under the Securities
Exchange Act of 1934 in Connection With Request of Chicago
Mercantile Exchange Inc. and Citadel Investment Group, L.L.C.
Related to Central Clearing of Credit Default Swaps, and Request for
Comments, Release No. 34-59578 (Mar. 13, 2009), 74 FR 11781 (Mar.
19, 2009), Order Extending and Modifying Temporary Exemptions under
the Securities Exchange Act of 1934 in Connection with Request of
Chicago Mercantile Exchange Inc. Related to Central Clearing of
Credit Default Swaps, and Request for Comments, Release No. 34-61164
(Dec. 14, 2009), 74 FR 67258 (Dec. 18, 2009), Order Extending
Temporary Exemptions under the Securities Exchange Act of 1934 in
Connection with Request of Chicago Mercantile Exchange Inc. Related
to Central Clearing of Credit Default Swaps, and Request for
Comments, Release No. 34-61803 (Mar. 30, 2010), 75 FR 17181 (Apr. 5,
2010), and Order Extending Temporary Conditional Exemptions under
the Securities Exchange Act of 1934 in Connection with Request of
Chicago Mercantile Exchange Inc. Related to Central Clearing of
Credit Default Swaps and Request for Comment, Release No. 34-63388
(Nov. 29, 2010), 75 FR 75522 (Dec. 3, 2010); Order Granting
Temporary Exemptions Under the Securities Exchange Act of 1934 in
Connection With Request on Behalf of ICE US Trust LLC Related to
Central Clearing of Credit Default Swaps, and Request for Comments,
Release No. 34-59527 (Mar. 6, 2009), 74 FR 10791 (Mar. 12, 2009),
Order Extending and Modifying Temporary Exemptions under the
Securities Exchange Act of 1934 in Connection with Request from ICE
Trust U.S. LLC Related to Central Clearing of Credit Default Swaps,
and Request for Comments, Release No. 34-61119 (Dec. 4, 2009), 74 FR
65554 (Dec. 10, 2009); Order Extending Temporary Exemptions under
the Securities Exchange Act of 1934 in Connection with Request of
ICE Trust U.S. LLC Related to Central Clearing of Credit Default
Swaps, and Request for Comments, Release No. 34-61662 (Mar. 5,
2010), 75 FR 11589 (Mar. 11, 2010), and Order Extending and
Modifying Temporary Exemptions under the Securities Exchange Act of
1934 in Connection with Request of ICE Trust U.S. LLC Related to
Central Clearing of Credit Default Swaps and Request for Comment,
Release No. 34-63387 (Nov. 29, 2010), 75 FR 75502 (Dec. 3, 2010);
and Order Granting Temporary Exemptions Under the Securities
Exchange Act of 1934 in Connection with Request of LIFFE
Administration and Management and LCH.Clearnet Ltd. Related to
Central Clearing Of Credit Default Swaps, and Request for Comments,
Release No. 34-59164 (Dec. 24, 2008), 74 FR 139 (Jan. 2, 2009).
LIFFE A&M and LCH.Clearnet Ltd. allowed their order to lapse without
seeking renewal.
    \6\ 15 U.S.C. 78q-1.
    \7\ See 7 U.S.C. 1a(12).
    \8\ See generally the actions noted in footnote 5, supra.
    \9\ 15 U.S.C. 78e and 78f.
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    We adopted the Temporary Rules and the CCP exemptive orders to help
foster the prompt development of CCPs for CDS because we believed and
continue to believe that the existence of CCPs for CDS would be
important in helping to reduce counterparty risks inherent in the CDS
market. Today, CDS agreements generally are negotiated and entered into
bilaterally, but eligible trades may be submitted to the CCP for
novation, which results in the bilateral contract being extinguished
and replaced by two new contracts where the CCP is the buyer to the
original seller and the seller to the original buyer.\10\ The operation
of a well-regulated CCP can significantly reduce counterparty risks by
preventing the failure of a single-market participant from having a
disproportionate effect on the overall market, since bilateral
counterparty risk is eliminated as the creditworthiness of the original
counterparties is replaced by the creditworthiness of the CCP.
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    \10\ ``Novation'' is a ``process through which the original
obligation between a buyer and seller is discharged through the
substitution of the CCP as seller to buyer and buyer to seller,
creating two new contracts.'' Committee on Payment and Settlement
Systems, Technical Committee of the International Organization of
Securities Commissioners, Recommendations for Central Counterparties
(Nov. 2004) at 66.
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    At the time of the adoption of the Temporary Rules and the CCP
exemptive orders, the OTC market for CDS was a source of concern to us
and other financial regulators due to the systemic risk posed by CDS,
the possible inability of parties to meet their obligations as
counterparties under the CDS, and the potential resulting adverse
effects on other markets and the

financial system.\11\ In response, in January 2009, we took action to
help foster the prompt development of CCPs for CDS, including granting
conditional exemptions from certain provisions of the Federal
securities laws. Since the adoption of the Temporary Rules and the CCP
exemptive orders, several clearing agencies have been actively engaged
as CCPs in clearing CDS transactions in accordance with our exemptions.
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    \11\ In addition to the potential systemic risks that CDS pose
to financial stability, we were concerned about other potential
risks in this market, including operational risks, risks relating to
manipulation and fraud, and regulatory arbitrage risks.
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    We subsequently extended the expiration dates in the Temporary
Rules from September 30, 2009 to November 30, 2010 \12\ and then from
November 30, 2010 to July 16, 2011.\13\ The latter extension was
adopted to enable the CCPs to continue to clear eligible CDS in
accordance with the Temporary Rules and the CCP exemptive orders
pending implementation of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the ``Dodd-Frank Act'').\14\ Title VII of the
Dodd-Frank Act (``Title VII'') is intended to address regulatory gaps
in the existing regulatory structure for the over-the-counter (``OTC'')
derivatives markets by providing the Commission and the Commodity
Futures Trading Commission (``CFTC'') with the authority to regulate
OTC derivatives. The primary goals of Title VII, among others, are to
increase the transparency, efficiency and fairness of the OTC
derivatives markets, improve investor protection and to reduce the
potential for counterparty and systemic risk.\15\ To this end, Title
VII imposes a comprehensive regime for the regulation of ``swaps'' and
``security-based swaps'' (as those terms are defined in Title VII),
including the clearing, exchange trading, and reporting of transactions
in security-based swaps.\16\ Certain CDS are security-based swaps as
defined under Title VII.
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    \12\ See Extension of Temporary Exemptions for Eligible Credit
Default Swaps to Facilitate Operation of Central Counterparties to
Clear and Settle Credit Default Swaps, Release No. 33-9063 (Sep. 14,
2009), 74 FR 47719 (Sep. 17, 2009). In September 2009, we extended
the expiration dates in the Temporary Rules to November 30, 2010
because, among other reasons, a number of legislative initiatives
relating to the regulation of derivatives, including CDS, had been
introduced by members of Congress and recommended by the United
States Department of the Treasury (``Treasury''), and Congress had
not yet taken definitive action with respect to any of the
legislative initiatives or the Treasury proposals.
    \13\ See Extension of Temporary Exemptions for Eligible Credit
Default Swaps to Facilitate Operation of Central Counterparties to
Clear and Settle Credit Default Swaps, Release No. 33-9158 (Nov. 19,
2010), 75 FR 72660 (Nov. 26, 2010).
    \14\ The Dodd-Frank Wall Street Reform and Consumer Protection
Act, Public Law 111-203, 124 Stat. 1376 (2010).
    \15\ Id. at preamble.
    \16\ Section 761(a)(6) of the Dodd-Frank Act defines a
``security-based swap'' as any agreement, contract, or transaction
that is a swap based on a narrow-based security index, a single
security or loan, including any interest therein or on the value
thereof; or the occurrence, nonoccurrence, or extent of the
occurrence of an event relating to a single issuer of a security or
the issuers of securities in a narrow-based security index, provided
that such event directly affects the financial statements, financial
condition, or financial obligations of the issuer.
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    Title VII amends the Exchange Act to require, among other things,
that security-based swaps be cleared through a clearing agency that is
registered with the Commission or that is exempt from registration if
the security-based swap is of a type that the Commission determines is
required to be cleared, unless an exception from mandatory clearing
applies.\17\ Title VII also provides that a depository institution
registered with the CFTC that cleared swaps as a multilateral clearing
organization or a derivatives clearing organization registered with the
CFTC that cleared swaps pursuant to an exemption from registration as a
clearing agency prior to the date of enactment of the Dodd-Frank Act is
deemed registered as a clearing agency for the purposes of clearing
security-based swaps (the ``Deemed Registered Provision'').\18\ The
Deemed Registered Provision and the other general provisions of Title
VII become effective on July 16, 2011.\19\
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    \17\ See Public Law 111-203, Sec.  763(a) (adding Exchange Act
Section 3C(a)(1)).
    \18\ See Public Law 111-203, Sec.  763(b) (adding Exchange Act
Section 17A(l)). Section 763(b) of the Dodd-Frank Act provides that
certain security-based swap clearing agencies will be deemed
registered as clearing agencies for the purpose of clearing
security-based swaps. Currently, four security-based swap clearing
agencies have temporary conditional exemptions from clearing agency
registration under Section 17A solely to perform the functions of a
clearing agency for certain CDS, and three of these security-based
swap clearing agencies will be subject the Deemed Registered
Provision. While the Deemed Registered Provision eliminates the need
to extend our temporary exemptive orders relating to registration of
clearing agencies, it does not resolve other issues addressed by our
temporary exemptive orders relating to Sections 5 and 6 of the
Exchange Act.
    \19\ Public Law 111-203, Sec.  774 states ``[u]nless otherwise
provided, the provisions of this subtitle shall take effect on the
later of 360 days after the date of the enactment of this subtitle
or, to the extent a provision of this subtitle requires a
rulemaking, not less than 60 days after publication of the final
rule or regulation implementing such provision of this subtitle.''
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    The Dodd-Frank Act also directs us to adopt regulations regarding,
among other things clearing agencies for, and the clearing of,
security-based swaps, which include CDS. Under Title VII, all security-
based swaps, including certain types of CDS, are defined as securities
under the Securities Act and the Exchange Act. As part of our review of
the applications of the Securities Act, the Exchange Act and the TIA to
security-based swaps and the implications for the clearing and exchange
trading provisions of the Dodd-Frank Act and our rules implementing
them, we are evaluating the necessity and appropriateness of exemptions
from the registration requirements of the Securities Act and Exchange
Act and the indenture qualification provisions of the TIA for security-
based swaps that will be cleared by clearing agencies. To this end, we
have proposed exemptions under the Securities Act, the Exchange Act,
and the TIA for security-based swaps issued by certain clearing
agencies satisfying certain conditions.\20\ The Temporary Rules are an
interim measure pending final action on the proposed permanent
exemptions. However, the Temporary Rules are needed upon the effective
date of Title VII to continue facilitating the operation of the CCPs in
clearing eligible CDS as we consider rules implementing the clearing
provisions of Title VII, including any applicable permanent exemptions.
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    \20\ See Exemptions For Security-Based Swaps Issued By Certain
Clearing Agencies, Release No. 33-9222 (June 9, 2011), 76 FR 34920
(June 15, 2011). The permanent exemptions would exempt transactions
by clearing agencies in security-based swaps from all provisions of
the Securities Act, other than the Section 17(a) anti-fraud
provisions, as well as exempt these security-based swaps from
Exchange Act registration requirements and from the provisions of
the TIA, provided certain conditions are met.
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    The implementation of Title VII is a substantial undertaking and we
are working toward fulfilling its requirements in a thorough and
deliberative manner that includes significant public input and
coordination with other regulators. To date, we have adopted an interim
final rule regarding the reporting of outstanding security-based swaps
entered into prior to the date of enactment of the Dodd-Frank Act \21\
and proposed thirteen other rulemakings required by Title VII,
including the permanent exemptions noted above,\22\ rules regarding
standards for the operation and governance of clearing agencies,\23\
the obligations of security-

based swap data repositories,\24\ the registration and regulation of
security-based swap execution facilities,\25\ the confirmation of
security-based swap transactions,\26\ trade reporting, data elements,
and public dissemination of trade information for security-based
swaps,\27\ the exception to the mandatory clearing requirement for end
users,\28\ the mandatory clearing of security-based swaps,\29\
definitions and interpretive guidance for key terms in Title VII,\30\
and the mitigation of conflicts of interest involving security-based
swaps.\31\ We have also proposed anti-fraud and anti-manipulation rules
regarding security-based swaps.\32\ Title VII also calls for additional
rulemakings regarding the registration procedures and external business
conduct standards for security-based swap dealers and major security-
based swap participants.
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    \21\ See Reporting of Security-Based Swap Transaction Data,
Release No. 34-63094 (Oct. 13, 2010), 75 FR 64643 (Oct. 20, 2010).
    \22\ See footnote 20, supra.
    \23\ See Clearing Agency Standards for Operation and Governance,
Release No. 34-64017 (Mar. 3, 2011), 76 FR 14472 (Mar. 16, 2011).
    \24\ See Security-Based Swap Data Repository Registration,
Duties, and Core Principles, Release No. 34-63347 (Nov. 19, 2010),
75 FR 77306 (Dec. 10, 2010).
    \25\ See Registration and Regulation of Security-Based Swap
Execution Facilities, Release No. 34-63825 (Feb. 2, 2011), 76 FR
10948 (Feb. 28, 2011).
    \26\ See Trade Acknowledgment and Verification of Security-Based
Swap Transactions, Release No. 34-63727 (Jan. 14, 2011), 76 FR 3859
(Jan. 21, 2011).
    \27\ See Regulation SBSR--Reporting and Dissemination of
Security-Based Swap Information, Release No. 34-63346 (Nov. 19,
2010), 75 FR 75208 (Dec. 2, 2010).
    \28\ See End-User Exception to Mandatory Clearing of Security-
Based Swaps, Release No. 34-63556 (Dec. 15, 2010), 75 FR 79992 (Dec.
21, 2010).
    \29\ See Process for Submissions for Review of Security-Based
Swaps for Mandatory Clearing and Notice Filing Requirements for
Clearing Agencies; Technical Amendments to Rule 19b-4 and Form 19b-4
Applicable to All Self-Regulatory Organizations, Release No. 34-
63557 (Dec. 15, 2010), 75 FR 82490 (Dec. 30, 2010).
    \30\ See Further Definition of ``Swap Dealer,'' ``Security-Based
Swap Dealer,'' ``Major Swap Participant,'' ``Major Security-Based
Swap Participant'' and ``Eligible Contract Participant'', Release
No. 34-63452 (Dec. 7, 2010), 75 FR 80174 (Dec. 21, 2010); and
Further Definition of ``Swap,'' ``Security-Based Swap,'' and
``Security-Based Swap Agreement''; Mixed Swaps; Security-Based Swap
Agreement Recordkeeping, Release No. 33-9204 (Apr. 29, 2011), 76 FR
29818 (May 23, 2011), corrected in Release No. 33-9204A (June 1,
2011), 76 FR 32880 (June 7, 2011).
    \31\ See Ownership Limitations and Governance Requirements for
Security-Based Swap Clearing Agencies, Security-Based Swap Execution
Facilities, and National Securities Exchanges with Respect to
Security-Based Swaps under Regulation MC, Release No. 34-63107 (Oct.
14, 2010), 75 FR 65882 (Oct. 26, 2010).
    \32\ See Prohibition Against Fraud, Manipulation, and Deception
in Connection with Security-Based Swaps, Release No. 34-63236 (Nov.
3, 2010), 75 FR 68560 (Nov. 8, 2010).
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    At the time of adoption of the Temporary Rules in January 2009, we
requested comment on various aspects of the Temporary Rules. We
received a total of 15 letters, only two of which commented
specifically on the Temporary Rules.\33\ Although those two letters
generally supported allowing CCPs to clear and settle CDS transactions
in accordance with the terms of the Temporary Rules, neither of the
commenters specifically addressed the duration of the Temporary Rules
and temporary amendments.\34\ The other commenters raised issues not
directly related to this rulemaking. No comments have been submitted to
us regarding the Temporary Rules since that time.
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    \33\ The public comments we received are available for Web site
viewing and printing at the Commission's Public Reference Room at
100 F St., NE., Washington, DC 20549 in File No. S7-02-09. They are
also available online at http://www.sec.gov/comments/s7-02-09/s70209.shtml.
    \34\ See letters from the Yale Law School Capital Markets and
Financial Instruments Clinic (Mar. 23, 2009) and from IDX Capital
(Mar. 23, 2009).
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    Throughout the entire Title VII implementation process, we have
sought to engage in an open and transparent implementation process,
seeking input on the various rulemakings from interested parties even
before issuing formal rule proposals. We have enhanced our public
consultative process by expanding the opportunity for public comment
beyond what is required by law. For instance, we have made available to
the public a series of e-mail boxes to which interested parties can
send preliminary comments before rules are proposed and the official
comment periods begin.\35\ These e-mail boxes are on the Commission's
Web site, organized by topic. We also specifically solicited comment,
along with the CFTC, on the definitions contained in Title VII.\36\ In
addition, our staff has sought the views of affected parties. This
approach has resulted in meetings with a broad cross-section of
interested parties. To further this public outreach effort, our staff
has held joint public roundtables and hearings with the CFTC staff on
select key topics, including most recently discussing the schedule for
implementing final rules for swaps and security-based swaps under Title
VII.\37\
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    \35\ See Public Comments on SEC Regulatory Initiatives Under the
Dodd-Frank Act, available at http://www.sec.gov/spotlight/regreformcomments.shtml.
    \36\ See Definitions Contained in Title VII of Dodd-Frank Wall
Street Reform and Consumer Protection Act, Release No. 34-62717
(Aug. 13, 2010), 75 FR 51429 (Aug. 20, 2010) (advance joint notice
of proposed rulemaking regarding definitions).
    \37\ Roundtable on Clearing and Listing of Swaps and Security-
Based Swaps (Aug. 20, 2010); Roundtable on Swap and Security-Based
Swap Matters (Sep. 14-15, 2010); Roundtable to Discuss Issues
Related to Clearing of Credit Default Swaps (Oct. 22, 2010);
Roundtable to Discuss Issues Related to Capital and Margin for Swaps
and Security-Based Swaps (Dec. 10, 2010); and Roundtable on
Implementation Phasing for Final Rules for Swaps and Security-Based
Swaps Under Title VII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (May 2-3, 2011).
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    We are still in the process of proposing and adopting numerous
rulemakings relating to the implementation of Title VII, including the
provisions relating to the clearing of security-based swaps. While we
have taken significant steps to implement the rulemaking required by
Title VII, we do not expect to complete the rulemaking we are directed
to carry out under Title VII before July 16, 2011, the current
termination date for the Temporary Rules. Due to the uncertainty of the
timing regarding the adoption of final rules implementing the clearing
provisions of Title VII, including any applicable permanent exemptions,
we believe that it is important that the CCPs continue to be able to
clear eligible CDS without concern that the Temporary Rules are
unavailable. As such, we have determined that it is necessary and
appropriate to extend the expiration dates in the Temporary Rules to
April 16, 2012. If the Commission adopts permanent exemptions for
security-based swaps issued by certain clearing agencies before April
16, 2012, the Commission will terminate the effectiveness of the
temporary rules as part of that rulemaking.
    We are only extending the expiration dates in the Temporary Rules;
we are not making any other changes to the Temporary Rules. The
Temporary Rules were modeled on other exemptions we have provided in
the past to facilitate trading in certain securities.\38\ They are
limited in scope; in general, they facilitate the operation of the CCPs
in clearing eligible CDS.
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    \38\ See, e.g., Securities Act Section 3(a)(14) [15 U.S.C.
77c(a)(14)], Securities Act Rule 238 [17 CFR 230.238]; Exchange Act
Section 12(a) [15 U.S.C. 78l(a)], and Exchange Act Rules 12h-1(d)
and (e) [17 CFR 240.12h-1(d) and (e)] (providing similar exemptions
from provisions of the Federal securities laws for standardized
options and securities futures products).
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II. Amendment of Expiration Dates in the Temporary Rules

    In January 2009, we adopted the Temporary Rules on a temporary
basis until September 25, 2009. We subsequently extended the expiration
dates in the Temporary Rules to November 30, 2010 and we further
extended the expiration dates to July 16, 2011 to allow CCPs that were
clearing and settling CDS transactions in the U.S. and in Europe to
continue to clear and settle CDS transactions. Since the adoption of
the Temporary Rules and the issuance of the CCP exemptive orders,
several clearing agencies have

been actively engaged as CCPs in clearing CDS transactions in reliance
on our exemptions. We believe that the clearing of CDS transactions by
these clearing agencies has contributed and we anticipate it will
continue to contribute to increased transparency and the reduction of
systemic risk in the CDS market.
    Since the adoption of the Temporary Rules and issuance of the CCP
exemptive orders, ICE Trust U.S. LLC (``ICE Trust'') and ICE Clear
Europe, Ltd. (``ICE Clear Europe'') have been actively engaged as CCPs
in clearing CDS transactions in reliance on our exemptions. Most
cleared CDS transactions have cleared at ICE Trust or ICE Clear
Europe.\39\ However, Eurex Clearing AG and the Chicago Mercantile
Exchange Inc. are also authorized to operate as CCPs pursuant to the
CCP exemptive orders.\40\ We believe that the clearing of CDS
transactions by the CCPs subject to the CCP exemptive orders has
contributed and we anticipate will continue to contribute to increased
transparency and the reduction of systemic risk in the CDS market.
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    \39\ As of June 3, 2011, ICE Trust U.S. LLC has cleared 249,249
CDS transactions with a notional value of $11.1 trillion. As of June
3, 2011, ICE Clear Europe, Ltd. has cleared 272,612 CDS transactions
with a notional value of [euro]5.5 trillion. See https://www.theice.com/marketdata/reports/ReportCenter.shtml.
    \40\ See footnote 5, supra.
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    The extension of the Temporary Rules is designed to facilitate the
continued operation of CCPs for eligible CDS, which we believe is in
the public interest. Once we adopt final rules implementing the
clearing provisions of Title VII, including any applicable permanent
exemptions, the Temporary Rules affecting solely eligible CDS will no
longer be necessary. However, until such time, the Temporary Rules are
needed to continue facilitating the operation of the CCPs in clearing
eligible CDS without being required to comply with the registration
requirements of the Securities Act and Exchange Act and the indenture
qualification provisions of the TIA. Therefore, due to the limited time
the Temporary Rules will be needed, and our ongoing efforts to
implement the provisions of Title VII, we are extending the expiration
dates in the Temporary Rules to April 16, 2012. If the Commission
adopts permanent exemptions for security-based swaps issued by certain
clearing agencies before April 16, 2012, the Commission will terminate
the effectiveness of the temporary rules as part of that rulemaking.

III. Certain Administrative Law Matters

    Section 553(b) of the Administrative Procedure Act (``APA'') \41\
generally requires an agency to publish notice of a proposed rule
making in the Federal Register. This requirement does not apply,
however, if the agency ``for good cause finds (and incorporates the
finding and a brief statement of reasons therefore in the rules issued)
that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \42\ For the reasons
we discuss throughout this release, we believe that there is good cause
to extend the expiration dates in the Temporary Rules to April 16,
2012. If the Commission adopts permanent exemptions for security-based
swaps issued by certain clearing agencies before April 16, 2012, the
Commission will terminate the effectiveness of the temporary rules as
part of that rulemaking.
---------------------------------------------------------------------------

    \41\ 5 U.S.C. 553(b).
    \42\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    We sought comment on the Temporary Rules and as noted above, we
received little comment when they were originally promulgated. In
addition to the specific comments that we sought and received in
connection with the Temporary Rules in January 2009, we have sought
public input on implementing the provisions of Title VII, which
requires extensive public notice and comment rulemaking regarding
proposals that will supplant and subsume the exemptive rules we have
crafted as a temporary measure.\43\ Further, we have sought and will
continue to seek public comment in connection with proposed rulemakings
to implement the specific provisions of Title VII relating to the
treatment of security-based swaps under the Securities Act and the
Exchange Act, including any applicable permanent exemptions. Commenters
have full opportunity to provide their views on this new comprehensive
regulatory regime.
---------------------------------------------------------------------------

    \43\ See footnote 35, supra. None of these comments addressed
the Temporary Rules.
---------------------------------------------------------------------------

    Absent an extension, the Temporary Rules will expire on July 16,
2011. The Temporary Rules have been in place since January 2009, and
CCPs have relied on them in clearing eligible CDS. Extending the
expiration dates in the Temporary Rules will not affect the substantive
provisions of the Temporary Rules. Extending the expiration dates in
the Temporary Rules will allow CCPs to continue to clear eligible CDS
without compliance with the registration requirements of the Securities
Act and Exchange Act and indenture qualification provisions of the TIA
as we consider rules implementing the clearing provisions of Title VII,
including any applicable permanent exemptions. Therefore, we believe
there is good cause to extend the expiration dates in the Temporary
Rules and find that notice and solicitation of comment on the extension
to be impracticable, unnecessary, or contrary to the public
interest.\44\
---------------------------------------------------------------------------

    \44\ This finding also satisfies the requirements of 5 U.S.C.
808(2), allowing the rule amendments to become effective
notwithstanding the requirements of 5 U.S.C. 801 (if a Federal
agency finds that notice and public comment are ``impractical,
unnecessary or contrary to the public interest,'' a rule ``shall
take effect at such time as the Federal agency promulgating the rule
determines.'').
---------------------------------------------------------------------------

    The APA also generally requires that an agency publish an adopted
rule in the Federal Register 30 days before it becomes effective.\45\
However, this requirement does not apply if the agency finds good cause
not to delay the effective date.\46\ For reasons similar to those
explained above, the Commission finds good cause not to delay the
effective date.
---------------------------------------------------------------------------

    \45\ 5 U.S.C. 553(d).
    \46\ 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------

IV. Paperwork Reduction Act

    The Temporary Rules do not impose any new ``collections of
information'' within the meaning of the Paperwork Reduction Act of 1995
(``PRA''),\47\ nor do they create any new filing, reporting,
recordkeeping, or disclosure reporting requirements for a CCP that is
or will be issuing or clearing eligible CDS. Accordingly, we did not
submit the Temporary Rules to the Office of Management and Budget for
review in accordance with the PRA when we adopted them in January
2009.\48\ We requested comment on whether our conclusion that there are
no collections of information is correct, and we did not receive any
comment. The extension of the expiration dates in the Temporary Rules
does not change our analysis.
---------------------------------------------------------------------------

    \47\ 44 U.S.C. 3501 et seq.
    \48\ 44 U.S.C. 3507(d) and 5 CFR 1320.11.
---------------------------------------------------------------------------

V. Cost-Benefit Analysis

    In January 2009, we adopted the Temporary Rules, which exempt
eligible CDS that are or will be issued or cleared by a CCP and offered
and sold only to eligible contract participants from all provisions of
the Securities Act, other than the Section 17(a) anti-fraud provision,
as well as from the registration requirements under Section 12 of the
Exchange Act and from the provisions of the TIA. In September 2009, we
adopted amendments to such rules to extend their expiration date to
November 30, 2010. We subsequently

adopted amendments to such rules to further extend their expiration
date from November 30, 2010 to July 16, 2011. The Temporary Rules were
intended to facilitate the operation of one or more CCPs to act as a
clearing agency in the CDS market to reduce some of the risks in the
CDS market. Today, we are adopting amendments to the Temporary Rules to
further extend the expiration dates. Since the adoption of the
Temporary Rules and the issuance of the exemptive orders, ICE Trust and
ICE Clear Europe have been actively engaged as a CCP in clearing CDS
transactions in accordance with our exemptions.
    The Dodd-Frank Act was enacted on July 21, 2010. Among other
things, the Dodd-Frank Act amends the Exchange Act to require that
transactions in security-based swaps be cleared through a clearing
agency that is either registered with the Commission or exempt from
registration if the transactions are of a type that the Commission
determines must be cleared, unless an exemption from mandatory clearing
applies. As noted above, the Dodd-Frank Act directs us to regulate,
among other things, clearing agencies for, and the clearing of,
security-based swaps, which include certain CDS, and in separate
rulemakings we have and will propose rules to implement the clearing
provisions of the Dodd-Frank Act, among others. Extending the
expiration dates in the Temporary Rules will continue to facilitate the
operation of the CCPs in clearing eligible CDS as we consider rules
implementing the clearing provisions of Title VII, including any
applicable permanent exemptions.

A. Benefits

    Absent the exemptions provided by the Temporary Rules, a CCP may
have to file a registration statement covering the offer and sale of
eligible CDS that are security-based swaps, may have to satisfy the
applicable provisions of the TIA, and may have to register the class of
eligible CDS that are security-based swaps that it has issued or
cleared under the Exchange Act. The Temporary Rules and the CCP
exemptive orders have facilitated the operation of CCPs in the CDS
market. Since the adoption of the Temporary Rules, several clearing
agencies have been actively engaged as CCPs in clearing CDS
transactions in accordance with our exemptions. We believe that
extending the expiration dates in the Temporary Rules will continue to
facilitate the operation of CCPs \49\ and the use by eligible contract
participants of CDS CCPs. We believe that the operation of the CCPs in
accordance with our exemptions has increased transparency,\50\
increased available information about exposures to particular reference
entities or reference securities,\51\ and reduced risks to participants
in the market for CCP-cleared CDS.\52\ Not extending the expiration
dates in the Temporary Rules could cause significant disruptions in
this market. Therefore, we believe that extending the expiration dates
in the Temporary Rules provides important benefits to CDS market
participants.
---------------------------------------------------------------------------

    \49\ See Karen Brettell, Banks to submit 95 pct of eligible CDS
for clearing (Sep. 1, 2009), available at http://www.reuters.com/article/euRegulatoryNews/idUSN0150814420090901?pageNumber=1&virtualBrandChannel=10522.
    \50\ See Testimony of Mark Lenczowski, Managing Director and
Assistant General Counsel at JPMorgan Chase & Co., to the Senate
Agriculture Committee (Jun. 4, 2009) (In his testimony, Mr.
Lenczowski indicated, in the context of CDS clearing by ICE Trust,
that ``[c]learing is a highly transparent process * * * '').
    \51\ See footnote 35, supra. None of these comments addressed
the Temporary Rules.
    \52\ See Press Release, IntercontinentalExchange, ICE Clear
Europe Clears Euro 51 Billion in Third Week of European CDS
Processing; Announces New CDS Clearing Member (Aug. 17, 2009),
available at http://ir.theice.com/releasedetail.cfm?ReleaseID=403509. See also, Press Release, Eurex
Clearing AG, Eurex Credit Clear Clears First Single Name CDS
Worldwide (Aug. 28, 2009), available at http://www.eurexclearing.com/about/press/press_647_en.html.
---------------------------------------------------------------------------

B. Costs

    We recognize that a consequence of extending the exemptions will be
the unavailability of certain remedies under the Securities Act and the
Exchange Act and certain protections under the TIA. While an investor
will be able to pursue an antifraud action in connection with the
purchase and sale of eligible CDS under Exchange Act Section 10(b),\53\
it will not be able to pursue civil remedies under Sections 11 or 12 of
the Securities Act.\54\ We could still pursue an antifraud action in
the offer and sale of eligible CDS issued or cleared by a CCP.\55\ We
believe that the incremental costs from the extension of the expiration
dates in the Temporary Rules will be minimal because the amendments are
merely an extension of the expiration dates in the Temporary Rules and
such extension will not affect information and remedies available to
investors as a result of the Temporary Rules.
---------------------------------------------------------------------------

    \53\ 15 U.S.C. 78j(b).
    \54\ 15 U.S.C. 77k and 77l.
    \55\ See 15 U.S.C. 77q and 78j(b).
---------------------------------------------------------------------------

VI. Consideration of Impact on the Economy, Burden on Competition and
Promotion of Efficiency, Competition and Capital Formation

    Section 23(a)(2) of the Exchange Act \56\ requires us, when
adopting rules under the Exchange Act, to consider the impact that any
new rule would have on competition. Section 23(a)(2) prohibits us from
adopting any rule that would impose a burden on competition that is not
necessary or appropriate in furtherance of the purposes of the Exchange
Act. In addition, Section 2(b) \57\ of the Securities Act and Section
3(f) \58\ of the Exchange Act require us, when engaging in rulemaking
where we are required to consider or determine whether an action is
necessary or appropriate in the public interest, to also consider, in
addition to protection of investors, whether the action will promote
efficiency, competition, and capital formation.
---------------------------------------------------------------------------

    \56\ 15 U.S.C. 78w(a)(2).
    \57\ 15 U.S.C. 77b(b).
    \58\ 15 U.S.C. 78c(f).
---------------------------------------------------------------------------

    The Temporary Rules we are extending today exempt eligible CDS
issued or cleared by a CCP from all provisions of the Securities Act,
other than the Section 17(a) antifraud provision, as well as from the
registration requirements under Section 12 of the Exchange Act and the
provisions of the TIA. Because these exemptions are available to any
registered or deemed registered CCP offering and selling eligible CDS,
we do not believe that extending the exemptions imposes a burden on
competition. We also anticipate that extending the ability to settle
CDS through CCPs will continue to improve the transparency of the CDS
market and provide greater assurance to participants as to the capacity
of the eligible CDS counterparty to perform its obligations under the
eligible CDS. ICE Trust, for example, makes available on its Web site
information about open interests, or net exposure, volume and pricing
of CDS transactions. We believe that increased transparency in the CDS
market could help to minimize market disruption and thereby facilitate
the capital formation process.

VII. Regulatory Flexibility Act Certification

    The Commission hereby certifies pursuant to 5 U.S.C. 605(b) that
extending the Temporary Rules will not have a significant economic
impact on a substantial number of small entities. The Temporary Rules
exempt eligible CDS that are or will be issued or cleared by a CCP.
None of the entities that are

eligible to meet the requirements of these exemptions is a small
entity.

VIII. Statutory Authority and Text of the Rules and Amendments

    The amendments described in this release are being adopted under
the authority set forth in Sections 18, 19 and 28 of the Securities
Act; Sections 12(h), 23(a) and 36 of the Exchange Act; and Section
304(d) of the TIA.

List of Subjects in 17 CFR Parts 230, 240 and 260

    Reporting and recordkeeping requirements, Securities.

Text of the Rules and Amendments

    We are temporarily amending 17 CFR parts 230, 240, and 260 as
follows and the expiration dates in the temporary rules and amendments
published January 22, 2009 (74 FR 3967), extended in a release
published on September 17, 2009 (74 FR 47719), and further extended in
a release published on November 26, 2010 (75 FR 72660), are further
extended from July 16, 2011 to April 16, 2012.

PART 230--GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933

    1. The authority citation for part 230 continues to read, in part,
as follows:

    Authority: 15 U.S.C. 77b, 77c, 77d, 77f, 77g, 77h, 77j, 77r,
77s, 77z-3, 77sss, 78c, 78d, 78j, 78l, 78m, 78n, 78o, 78t, 78w,
78ll(d), 78mm, 80a-8, 80a-24, 80a-28, 80a-29, 80a-30, and 80a-37,
unless otherwise noted.
* * * * *

Sec. Sec.  230.146 and 230.239T  [Amended]

0
2. In Sec.  230.146(c)T, in the last sentence, remove the words ``July
16, 2011'' and add, in their place, the words ``April 16, 2012''.

0
3. In Sec.  230.239T(e), remove the words ``July 16, 2011'' and add, in
their place, the words ``April 16, 2012''.

PART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF
1934

0
4. The authority citation for part 240 continues to read, in part, as
follows:

    Authority: 15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77z-3,
77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i,
78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n, 78o, 78o-4, 78p, 78q, 78s,
78u-5, 78w, 78x, 78ll, 78mm, 80a-20, 80a-23, 80a-29, 80a-37, 80b-3,
80b-4, 80b-11, and 7201 et seq.; and 18 U.S.C. 1350; and 12 U.S.C.
5221(e)(3) unless otherwise noted.
* * * * *

Sec. Sec.  240.12a-10T and 240.12h-1  [Amended]

0
5. In Sec.  240.12a-10T(b), remove the words ``July 16, 2011'' and add,
in their place, the words ``April 16, 2012''.

0
6. In Sec.  240.12h-1(h)T, in the last sentence, remove the words
``July 16, 2011'' and add, in their place, the words ``April 16,
2012''.

PART 260--GENERAL RULES AND REGULATIONS, TRUST INDENTURE ACT OF
1939

0
7. The authority citation for part 260 continues to read as follows:

    Authority: 15 U.S.C. 77eee, 77ggg, 77nnn, 77sss, 78ll(d), 80b-3,
80b-4, and 80b-11.
* * * * *

Sec.  260.4d-11T  [Amended]

0
8. In Sec.  260.4d-11T, in the last sentence, remove the words ``July
16, 2011'' and add, in their place, the words ``April 16, 2012''.

    By the Commission.

    Dated: July 1, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-17132 Filed 7-7-11; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 81, Number 44 (Monday, March 7, 2016)]
[Notices]
[Page 11780]
[FR Doc No: 2016-04950]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings #2

    Take notice that the Commission received the following electric
corporate filings:

    Docket Numbers: EC16-78-000.
    Applicants: Tonopah Solar Energy, LLC.
    Description: Application for Authorization Under Section 203 of the
Federal Power Act and Request for Waivers and Expedited Action of
Tonopah Solar Energy, LLC.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5041.
    Comments Due: 5 p.m. ET 3/16/16.

    Docket Numbers: EC16-79-000.
    Applicants: RE Astoria 2 LLC.
    Description: Application for Authorization Under Section 203 of the
Federal Power Act and Request for Expedited Consideration, Confidential
Treatment and Waivers of RE Astoria 2 LLC.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5064.
    Comments Due: 5 p.m. ET 3/16/16.

    Take notice that the Commission received the following electric
rate filings:

    Docket Numbers: ER16-993-000.
    Applicants: Pacific Gas and Electric Company.
    Description: Sec.  205(d) Rate Filing: Amendment to Western Area
Power Administration WDT SA 17 to be effective 4/1/2016.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5001.
    Comments Due: 5 p.m. ET 3/16/16.

    Docket Numbers: ER16-994-000.
    Applicants: Pacific Gas and Electric Company.
    Description: Sec.  205(d) Rate Filing: Amendment to the Western
Area Power Administration IA (SA 59) to be effective 4/1/2016.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5002.
    Comments Due: 5 p.m. ET 3/16/16.

    Docket Numbers: ER16-995-000.
    Applicants: Pacific Gas and Electric Company.
    Description: Sec.  205(d) Rate Filing: Amendment No. 1 to the
Western Area Power Administration O'Neill GIA (SA 314) to be effective
4/1/2016.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5003.
    Comments Due: 5 p.m. ET 3/16/16.

    Docket Numbers: ER16-997-000.
    Applicants: Public Service Company of New Mexico.
    Description: Initial rate filing: Transmission Service Agreement
between PNM and Iberdrola Renewables, LLC to be effective 2/1/2016.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5032.
    Comments Due: 5 p.m. ET 3/16/16.

    Docket Numbers: ER16-998-000.
    Applicants: South Carolina Electric & Gas Company.
    Description: Limited-Scope Section 205 Filing Concerning
Depreciation Rates of South Carolina Electric & Gas Company.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5110.
    Comments Due: 5 p.m. ET 3/16/16.

    Docket Numbers: ER16-999-000.
    Applicants: Greenleaf Energy Unit 1 LLC.
    Description: Baseline eTariff Filing: Greenleaf Energy Unit 1 LLC
FERC Market-Based Rate Tariff to be effective 2/24/2016.
    Filed Date: 2/24/16.
    Accession Number: 20160224-5136.
    Comments Due: 5 p.m. ET 3/16/16.

    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5:00
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    eFiling is encouraged. More detailed information relating to filing
requirements, interventions, protests, service, and qualifying
facilities filings can be found at: http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other information, call<PHONE_NUMBER>
(toll free). For TTY, call<PHONE_NUMBER>.

    Dated: February 24, 2016.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2016-04950 Filed 3-4-16; 8:45 am]
 BILLING CODE 6717-01-P


[Federal Register Volume 76, Number 197 (Wednesday, October 12, 2011)]
[Notices]
[Pages 63293-63294]
[FR Doc No: 2011-26284]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

Combined Notice of Filings

    Take notice that the Commission has received the following Natural
Gas Pipeline Rate and Refund Report filings:

Filings Instituting Proceedings

    Docket Numbers: RP12-1-000.
    Applicants: Crossroads Pipeline Company.
    Description: Crossroads Pipeline Company submits tariff filing per
154.204: Service Agreements--Non-Conforming Clean Up to be effective
11/3/2011.
    Filed Date: 10/03/2011.
    Accession Number: 20111003-5125.
    Comment Date: 5 p.m. Eastern Time on Monday, October 17, 2011.

    Docket Numbers: RP12-2-000.
    Applicants: Central Kentucky Transmission Company.
    Description: Central Kentucky Transmission Company submits tariff
filing per 154.204: Service Agreements--Non-Conforming Clean Up to be
effective 11/3/2011.
    Filed Date: 10/03/2011.
    Accession Number: 20111003-5153.
    Comment Date: 5 p.m. Eastern Time on Monday, October 17, 2011.

    Docket Numbers: RP12-4-000.
    Applicants: Energy West Development, Inc.
    Description: Energy West Development, Inc. submits tariff filing
per 154.402: EWD ACA Amendment Filing to be effective 10/3/2011.
    Filed Date: 10/03/2011.
    Accession Number: 20111003-5226.
    Comment Date: 5 p.m. Eastern Time on Monday, October 17, 2011.

    Docket Numbers: RP12-5-000.
    Applicants: Hardy Storage Company, LLC.
    Description: Hardy Storage Company, LLC submits tariff filing per
154.204: Service Agreements--Non-Conforming Clean Up to be effective
11/3/2011.
    Filed Date: 10/03/2011.
    Accession Number: 20111003-5233.
    Comment Date: 5 p.m. Eastern Time on Monday, October 17, 2011.

    Docket Numbers: RP12-6-000.
    Applicants: Gulf South Pipeline Company, LP.
    Description: Gulf South Pipeline Company, LP submits tariff filing
per 154.204: Sequent 39121 Negotiated Rate Agreement to be effective
10/4/2011.
    Filed Date: 10/04/2011.
    Accession Number: 20111004-5010.
    Comment Date: 5 p.m. Eastern Time on Monday, October 17, 2011.

    Any person desiring to intervene or protest in any of the above
proceedings must file in accordance with Rules 211 and 214 of the
Commission's Regulations (18 CFR 385.211 and 385.214) on or before 5
p.m. Eastern time on the specified comment date. Protests may be
considered, but intervention is necessary to become a party to the
proceeding.
    The filings are accessible in the Commission's eLibrary system by
clicking on the links or querying the docket number.
    eFiling is encouraged. More detailed information relating to filing

requirements, interventions, protests, and service can be found at:
http://www.ferc.gov/docs-filing/efiling/filing-req.pdf. For other
information, call<PHONE_NUMBER> (toll free). For TTY, call (202) 502-
8659.

    Dated: October 4, 2011.
Nathaniel J. Davis, Sr.
Deputy Secretary.
[FR Doc. 2011-26284 Filed 10-11-11; 8:45 am]
BILLING CODE 6717-01-P


[Federal Register: June 8, 2010 (Volume 75, Number 109)]
[Proposed Rules]
[Page 32351-32353]
[DOCID:fr08jn10-36]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 117

[Docket No. USCG-2010-0234]
RIN 1625-AA09

Drawbridge Operation Regulation; Taunton River, Fall River and
Somerset, MA

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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

SUMMARY: The Coast Guard proposes to change the drawbridge operation
regulations for the Brightman Street (Rt-6) Bridge at mile 1.8, between
Fall River and Somerset, Massachusetts, to help relieve the bridge
owner from the burden of crewing the bridge during time periods when
the bridge receives few requests to open. In addition, we are removing
some obsolete language from the regulations, the operating regulations
for the Bristol County Bridge at mile 10.3, because that bridge has
subsequently been replaced with a fixed span highway bridge.

DATES: Comments and related material must be received by the Coast
Guard on or before July 8, 2010.

ADDRESSES: You may submit comments identified by docket number USCG-
2010-0234 using any one of the following methods:
    (1) Federal Rulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC, 20590-0001.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is<PHONE_NUMBER>.
    To avoid duplication, please use only one of these methods. See the
``Public Participation and Request for Comments'' portion of the
SUPPLEMENTARY INFORMATION section below for instructions on submitting
comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or e-mail Mr. John W. McDonald, Project Officer, First Coast
Guard District Bridge Branch, at<PHONE_NUMBER>, e-mail
<EMAIL_ADDRESS>If you have questions on viewing or
submitting material to the docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted,
without change to http://www.regulations.gov and will include any
personal information you have provided.

Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2010-0234), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online (http://www.regulations.gov), or by fax, mail or hand delivery,
but please use only one of these means. If you submit a comment online
via http://www.regulations.gov, it will be considered received by the
Coast Guard when you successfully transmit the comment. If you fax,
hand deliver, or mail your comment, it will be considered as having
been received by the Coast Guard when it is received at the Docket
Management Facility. We recommend that you include your name and a
mailing address, an e-mail address, or a phone number in the body of
your document so that we can contact you if we have questions regarding
your submission.
    To submit your comment online, go to http://www.regulations.gov,
click on the ``submit a comment'' box, which will then become
highlighted in blue. In the ``Document Type'' drop down menu select
``Proposed Rules'' and insert ``USCG-2010-0234'' in the ``Keyword''
box. Click ``Search'' then click on the balloon shape in the
``Actions'' column. If you submit your comments by mail or hand
delivery, submit them in an unbound format, no larger than 8\1/2\; by
11 inches, suitable for copying and electronic filing. If you submit
them by mail and would like to know that they reached the Facility,
please enclose a stamped, self-addressed postcard or envelope. We will
consider all comments and material received during the comment period
and may change the rule based on your comments.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
click on the ``read comments'' box, which will then become highlighted
in blue. In the ``Keyword'' box insert ``USCG-2010-0234'' and click
``Search.'' Click the ``Open Docket Folder'' in the ``Actions'' column.
You may also visit either the Docket Management Facility in Room W12-
140 on the ground floor of the Department of Transportation West
Building, 1200 New Jersey Avenue SE., Washington, DC, 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays. We
have an agreement with the Department of Transportation to use the
Docket Management Facility.

Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one using one of the four methods specified under
ADDRESSES. Please explain why one would be beneficial. If we determine
that one would aid this rulemaking, we will hold one at a time and
place announced by a later notice in the Federal Register.

Background and Purpose

    The Brightman Street (Rt-6) Bridge at mile 1.8, across the Taunton
River between Fall River and Somerset, Massachusetts, has a vertical
clearance in the closed position of 27 feet at mean high water and 31
feet at mean low water. The drawbridge operation regulations are listed
at 33 CFR 117.619.
    The bridge is required under the existing regulations to open on
signal as follows:
    At all times from April 1 through May 31 and from September 1
through November 1.

    From June 1 through August 31, the draw need not open for pleasure
craft from 7 a.m. to 9:30 a.m. and 4 p.m. through 6:30 p.m., Monday
through Friday, except holidays. The draw is required to open on signal
for commercial vessels at any time during the June 1 through August 31,
time period.
    From November 1 through March 31, the bridge is required to open on
signal 6 a.m. through 6 p.m. and from 6 p.m. through 6 a.m. the bridge
shall open after a one-hour advance notice is given.
    The owner of the bridge, Massachusetts Department of
Transportation, has been crewing the bridge in excess of the time
required in the existing regulations during the winter months, November
1 through March 31. They have been crewing the bridge from 5 a.m.
through 9 p.m. with a one-hour advance notice required from 9 p.m.
through 5 a.m. This allows the bridge owner to crew the bridge in two
eight hour shifts rather than one eight hour shift plus four hours of
overtime.
    The bridge owner has subsequently requested a change to the
regulations to allow them to crew the bridge year round from 5 a.m.
through 9 p.m., daily, with a one-hour advance notice from 9 p.m.
through 5 a.m.
    The bridge owner provided bridge logs which indicated few requests
to open the draw after 9 p.m. In addition, the NRG power plant (Montop
Electric) which formerly operated upstream from the bridge has closed
permanently which will eliminate most, if not all, commercial vessel
transits.
    The bridge opening logs for the past three years, 2007, 2008, and
2009, indicated few requests to open the bridge after 9 p.m. year round
for vessel traffic.
    There were 11 requests to open the bridge after 9 p.m. in 2009, 9
requests to open after 9 p.m. in 2008, and 14 requests to open after 9
p.m. in 2007.
    Under this proposed rule the bridge would open on signal year round
from 5 a.m. to 9 p.m. and between 9 p.m. and 5 a.m., after a one-hour
advance notice is given by calling the number posted at the bridge.
    Coast Guard believes this proposed rule is reasonable, and if
implemented, should continue to meet the present and future needs of
navigation.

Discussion of Proposed Rule

    The Coast Guard proposes to amend the drawbridge operation
regulations for the Brightman Street (Rt-6) Bridge by revising 33 CFR
117.619, which lists the operation of the Brightman Street Bridge.
    This proposed rule would change the regulations to allow the bridge
to open on signal from 5 a.m. through 9 p.m., and after a one-hour
advance notice is given from 9 p.m. through 5 a.m. year round.
    It is anticipated that commercial vessel traffic will be
infrequent, if not, non-existent, due to the permanent closing of the
NRG power plant (Montop Electric) formerly located upstream from the
bridge. Several coal deliveries were made to the power plant each month
while it was in operation; however, the power plant has subsequently
ceased operation.
    In addition, we are removing the language formerly located in
paragraph (c) from the proposed regulation because the bridge it
references, the Bristol County Bridge at mile 10.3, across the Taunton
River has been removed and replaced with a fixed highway bridge; thus,
the drawbridge operation regulations are no longer necessary.

Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This proposed rule is not a ``significant regulatory action'' under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
and does not require an assessment of potential costs and benefits
under section 6(a)(3) of that Order. The Office of Management and
Budget has not reviewed it under that Order. This conclusion is based
upon the fact that this proposal expands the time period the bridge is
crewed in the winter months and extends the winter schedule to year
round based on historic infrequent use between 9 p.m. and 5 a.m.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. This action will not have a significant
economic impact on a substantial number of small entities for the
following reasons. The vessel operators that normally frequent this
waterway will still be able to obtain bridge openings after 9 p.m. by
simply providing a one-hour advance notice by calling the number posted
at the bridge.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment (see
ADDRESSES) explaining why you think it qualifies and how and to what
degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking. If the
rule would affect your small business, organization, or governmental
jurisdiction and you have questions concerning its provisions or
options for compliance, please contact Mr. John W. McDonald, Project
Officer, First Coast Guard District Bridge branch by telephone at 617-
223-8364 or by e-mail<EMAIL_ADDRESS>The Coast Guard will
not retaliate against small entities that question or complain about
this proposed rule or any policy or action of the Coast Guard.

Collection of Information

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520.).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this proposed rule
under that Order and have determined that it does not have implications
for federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of

$100,000,000 (adjusted for inflation) or more in any one year. Though
this proposed rule will not result in such an expenditure, we do
discuss the effects of this rule elsewhere in this preamble.

Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01, and Commandant Instruction
M16475.lD which guides the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have
made a preliminary determination that this action is one of a category
of actions which do not individually or cumulatively have a significant
effect on the human environment because it simply promulgates the
operating regulations or procedures for drawbridges. We seek any
comments or information that may lead to the discovery of a significant
environmental impact from this proposed rule.

List of Subjects in 33 CFR Part 117

    Bridges.
    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 117 as follows:

PART 117--DRAWBRIDGE OPERATION REGULATIONS

    1. The authority citation for part 117 continues to read as
follows:

    Authority:  33 U.S.C. 499; 33 CFR 1.05-1; Department of Homeland
Security Delegation No. 0170.1.
    2. Section 117.619 is revised to read as follows:

Sec.  117.619  Taunton River.

    (a) The Brightman Street (Route-6) Bridge at mile 1.8, between Fall
River and Somerset, shall operate as follows:
    (b) The draw shall open on signal between 5 a.m. and 9 p.m., daily.
From 9 p.m. through 5 a.m. the draw shall open on signal after at least
a one-hour advance notice is given by calling the number posted at the
bridge.
    (c) From June 1 through August 31, the draw need not open for the
passage of pleasure craft from 7 a.m. to 9:30 a.m. and from 4 p.m. to
6:30 p.m., Monday through Friday, except holidays. The draw shall open
for commercial vessels at all times.
    (d) From 6 p.m. on December 24 to midnight on December 25, and from
6 p.m. on December 31 to midnight on January 1, the draw shall open on
signal if at least a two-hour advance notice is given by calling the
number posted at the bridge.
    The owner of the bridge shall provide and keep in good legible
condition clearance gauges located on both upstream and downstream
sides of the draw with figures not less than twelve inches in height,
designed, installed and maintained according to the provisions of
section 118.160 of this chapter.

    Dated: May 25, 2010.
Joseph A. Servidio,
Captain, U.S. Coast Guard, Acting Commander, First Coast Guard
District.
[FR Doc. 2010-13643 Filed 6-7-10; 8:45 am]
BILLING CODE 9110-04-P


[Federal Register Volume 76, Number 237 (Friday, December 9, 2011)]
[Notices]
[Pages 77044-77046]
[FR Doc No: 2011-31605]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-65894; File No. SR-NYSEArca-2011-89]

Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change Specifying in Its
Rules an Existing Policy Related to the Application of NYSE Arca
Options Rule 6.47A

 December 5, 2011.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 23, 2011, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    The Exchange proposes to specify in its rules an existing policy
related to the application of NYSE Arca Options Rule 6.47A. The text of
the proposed rule change is available at the Exchange, at http://www.nyse.com, at the Commission's Public Reference Room, and at http://www.sec.gov.

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

    In its filing with the Commission, the self-regulatory organization
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 those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.

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

1. Purpose
    The Exchange proposes to specify in its rules an existing policy
related to the application of NYSE Arca Options Rule 6.47A.
    NYSE Arca Options Rule 6.47A provides, in part, that Users \5\ may
not execute as principal orders they represent as agent unless agency
orders are first exposed on the Exchange for at least one second. This
requirement gives other market participants an opportunity to
participate in the execution of orders before the entering User
executes them. The Exchange recognizes, however, that because the
Exchange does not identify the User that entered an order to the NYSE
Arca system, orders from the same OTP Holder or OTP Firm may
inadvertently execute against each other as a result of being entered
by different persons and/or systems at the same OTP Holder or OTP Firm.
Therefore, when enforcing NYSE Arca Options Rule 6.47A, the Exchange
does not consider the inadvertent interaction of orders from the same
OTP Holder or OTP Firm within one second to be a violation of the
exposure requirement.
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    \5\ The term ``User'' means any OTP Holder, OTP Firm or
Sponsored Participant that is authorized to obtain access to the
NYSE Arca system pursuant to NYSE Arca Options Rule 6.2A. See NYSE
Arca Options 6.1A(a)(19).
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    When investigating potential violations of NYSE Arca Options Rule
6.47A, the Exchange takes into consideration whether orders that
executed against each other within one second in the NYSE Arca system
were entered by persons, business units and/or systems at the same OTP
Holder or OTP Firm that did not have knowledge

of the order in the NYSE Arca system.\6\ Commonly, OTP Holders and OTP
Firms are able to demonstrate that orders were entered by individuals
or systems that did not have the ability to know of the preexisting
order in the NYSE Arca system due to information barriers in place at
the time the orders were entered.
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    \6\ The Financial Industry Regulatory Authority, Inc.
(``FINRA''), on behalf of the Exchange and pursuant to a Regulatory
Services Agreement (``RSA''), conducts routine surveillance to
identify instances when an order in the NYSE Arca system is executed
against an order entered by the same OTP Holder or OTP Firm within
one second.
---------------------------------------------------------------------------

    The Exchange proposes to codify this policy in Commentary .05 to
NYSE Arca Options Rule 6.47A. Proposed Commentary .05 would specify
that OTP Holders and OTP Firms may demonstrate that orders were entered
without knowledge of a preexisting order in the NYSE Arca system
represented by the same OTP Holder or OTP Firm by providing evidence
that effective information barriers between the persons, business units
and/or systems entering the orders on the Exchange were in existence at
the time the orders were entered. Commentary .05 would require that
such information barriers be fully documented and provided to the
Exchange upon request.\7\
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    \7\ Information barrier documentation is reviewed by FINRA on
the Exchange's behalf to evaluate whether an OTP Holder or OTP Firm
has implemented processes that are reasonably designed to prevent
the flow of pre-trade order information given the particular
structure of the OTP Holder or OTP Firm. Additionally, information
barriers are reviewed as part of the Exchange's examination program,
which is also administered by FINRA pursuant to the RSA.
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2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (the
``Act''),\8\ in general, and furthers the objectives of Section 6(b)(5)
of the Act,\9\ in particular, because it is designed to prevent
fraudulent and manipulative acts and practices, to promote just and
equitable principles of trade, to remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, to protect investors and the public interest. In
particular, the Exchange believes that codifying the Exchange's policy
that appropriate information barriers may be used to demonstrate that
the execution of two orders within one second was inadvertent because
the orders were entered without knowledge of each other, would clarify
the intent and application of NYSE Arca Options Rule 6.47A for OTP
Holders and OTP Firms.
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    \8\ 15 U.S.C. 78f(b).
    \9\ 15 U.S.C. 78f(b)(5).
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    The Exchange also believes that the proposed rule change is
consistent with Section 6(b)(7) of the Act,\10\ which requires the
rules of an exchange to provide a fair procedure for the disciplining
of members and persons associated with members. In particular, by
specifying that the information barriers must be fully documented for
the purpose of demonstrating that orders were entered without knowledge
that there was a pre-existing unexecuted agency or proprietary order on
the Exchange, OTP Holders and OTP Firms would be better prepared to
properly respond to requests for information by the Exchange in the
course of a regulatory investigation. Moreover, while OTP Holders and
OTP Firms are generally required to provide information to the Exchange
as requested, specifying that OTP Holders and OTP Firms must provide
written documentation regarding information barriers within the context
of NYSE Arca Options Rule 6.47A would require that all OTP Holders and
OTP Firms adhere to the same standard for demonstrating compliance with
NYSE Arca Options Rule 6.47A.
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    \10\ 15 U.S.C. 78f(b)(7).
---------------------------------------------------------------------------

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

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.

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

    No written comments were solicited or received with respect to the
proposed rule change.

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

    Because the foregoing proposed rule change does not significantly
affect the protection of investors or the public interest, does not
impose any significant burden on competition, and, by its terms, does
not become operative for 30 days from the date on which it was filed,
or such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \11\ and Rule 19b-
4(f)(6) thereunder.\12\
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    \11\ 15 U.S.C. 78s(b)(3)(A).
    \12\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires the Exchange to give the Commission written notice of the
Exchange's intent to file the proposed rule change, along with a
brief description and text of the proposed rule change, at least
five business days prior to the date of filing of the proposed rule
change, or such shorter time as designated by the Commission. The
Exchange has satisfied this requirement.
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.

IV. Solicitation of Comments

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

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-NYSEArca-2011-89 on the subject line.

Paper Comments

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

All submissions should refer to File Number SR-NYSEArca-2011-89. 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 Web site (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 Web site 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
a.m. and 3 p.m. Copies of the filing also will be available for
inspection and

copying at the principal office of the Exchange. All comments received
will be posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-NYSEArca-2011-89 and should be submitted
on or before December 30, 2011.
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    \13\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-31605 Filed 12-8-11; 8:45 am]
BILLING CODE 8011-01-P